S’PORE EXPORTS SURGE IN MAY
However, analysts say fastest pace in 7 months is not likely to be sustained, citing the volatile pharma sector
SINGAPORE’S exports grew at their fastest pace in seven months last month, boosted by an extended surge in pharmaceutical shipments, though a heated SinoUnited States trade dispute is clouding the outlook for the trade-dependent city state.
Non-oil domestic exports rose 15.5 per cent year-on-year last month, data from International Enterprise Singapore showed yesterday, accelerating from the 11.8 per cent jump in April and blowing past the 4.7 per cent increase predicted by economists.
“This bodes well for the second quarter (exports) given that the first quarter was quite disappointing,” said Selena Ling, OCBC Bank’s head of treasury research and strategy.
However, the sharp export growth has been supported by the volatile pharmaceuticals sector and analysts don’t expect the uptick to be sustained.
“The pharma sector typically has these cycles which are quite volatile and may last only for the next couple of months.”
Last month, exports of pharmaceuticals rose 32.1 per cent on-year, slowing slightly from a 43.7 per cent rise in April.
The electronics sector, the lynch-pin of Singapore’s betterthan-expected economic growth last year, saw its sixth consecutive month of decline last month, contracting at 7.8 per cent.
A global exports boom benefited Singapore and other tradedependent Asian economies last year, particularly for makers of electronics products and components such as semiconductors, though analysts say the sector’s growth is past its peak.
On a seasonally adjusted month-on-month basis, exports expanded 10.3 per cent last month after growing 6.5 per cent in April and compared to forecast of a 1.0 per cent expansion.
Singapore in April tightened its monetary policy for the first time in six years and upgraded its first quarter gross domestic product growth last month.
There are concerns the simmering trade tensions between the US and China could drag on shipments and overall economic growth in the city state.