Singapore’s non-oil domestic exports (NODX) experienced a 6.7% year-on-year increase in January and February 2026, according to a report by UOB Global Economics and Markets Research. This growth, though moderated from the 12.7% expansion in the fourth quarter of 2025, was primarily propelled by strong demand in the electronics sector, which saw a 49.7% rise due to artificial intelligence (AI) advancements.
The report highlights that whilst electronics exports surged, non-electronics exports faced a decline of 4.9% year-on-year. Notably, exports to semiconductor hubs such as South Korea and Taiwan remained robust, with increases of 39.8% and 32.1% respectively. In contrast, exports to the US continued to struggle, contracting by 45.1% year-on-year, largely due to ongoing US tariffs on non-electronics goods.
The US tariffs, part of a broader Section 301 investigation, pose a continued risk to Singapore’s export landscape. The Trump administration’s recent imposition of a 10% tariff, with potential increases to 15%, further complicates the outlook for non-electronics exports to the US.
Additionally, geopolitical tensions in the Middle East have introduced uncertainties, particularly with rising energy prices and supply shortages in critical materials like naphtha and helium gas. These factors could impact downstream production and, consequently, Singapore’s export growth.
As Singapore navigates these challenges, the sustained demand for AI-related electronics offers a silver lining, potentially cushioning the impact of global economic uncertainties on its export sector.
