Singapore - Singapore's NODX jumps 30.5% in February

SINGAPORE: Singapore's non-oil domestic exports (NODX) jumped 30.5 per cent year-on-year in February, compared to a 2.4 per cent decline in January.

NODX totalled S$16.7 billion, up from January's S$14.2 billion.

On a month-on-month seasonally adjusted basis, NODX grew 6.2 per cent last month, following January's marginal expansion of 0.5 per cent.

Trade promotion agency IE Singapore attributed the better-than-expected performance to an expansion in both electronics and non-electronics exports.

It said NODX to all the top 10 NODX markets increased in February, with the top three contributors to the expansion being the US, Hong Kong and Thailand.

NODX to the US grew 48 per cent in February, compared to a 5.4 percent decline the previous month. Shipments to Hong Kong rose 57 per cent, in contrast with January's 1.7 per cent decline, while NODX to Thailand surged 73 per cent last month, following a 26 per cent increase in January.

Shipments to the European Union, its biggest export destination, rose 11.9 per cent on-year in February, compared with a 14.5 per cent drop a month ago.

IE Singapore said NODX to emerging markets increased 29 per cent in February, driven largely by exports to Latin America.

Total trade increased 26 per cent in February, following a 1.6 per cent rise the previous month.

Total exports grew 25 per cent last month, compared to a 4.2 per cent contraction in January, while total imports increased 27 per cent in February, following an 8.4 per cent growth the preceding month.

Electronics exports grew 23.3 per cent on-year in February, after falling 10.9 per cent in January. February's expansion was due to higher shipments of ICs, PC parts and telecommunications equipment. 

Exports of semiconductors increased 20.2 per cent last month, following a 5.9 per cent growth in January, and those of disk drives jumped 38.7 per cent, after dropping 9.0 per cent the previous month.

Meanwhile, non-electronic exports climbed 34 per cent in February, after rising 2.8 per cent the preceding month. 

IE Singapore said the growth was led by gains in exports of structures of ships and boats, pharmaceuticals and specialised machinery.

Exports of structures of ships and boats surged 116 per cent, while specialised machinery rose 40 per cent.

Pharmaceuticals exports increased 44.5 per cent, following a 20.2 per cent rise a month ago.

Chemicals exports rose 21.4 per cent in February, after a 2.1 per cent increase a month ago, while exports of petrochemicals fell 5.0 per cent, after falling 23.2 per cent in January.

The latest exports data surprised many analysts on the upside.

However, experts said it is too soon to celebrate as external headwinds from Europe and rising oil prices still pose risks to sustained growth. 

Alvin Liew, senior economist at UOB, said: "There could be some bottoming out based on the poor electronic cycle that we have seen. In the last 12 months, US data also looks better than expected. That could be one of the key support coming in for the next few months."

But some experts are not surprised by this rebound and they do not expect a repeat performance in March. 

Song Seng Wun, economist at CIMB Research, said: "We had expected, after a contraction in January, a rebound in February mainly because of the base effect. The shift in the Chinese New Year festivities this year to January versus February of last year has played havoc in terms of working days and factories being closed. We probably will see March NODX pulling back very sharply typically after a very sharp spike in (February) exports. So headline we see a very strong 30 percent jump in February NODX (but) March NODX could in fact be flat, or single digit or a mild contraction on a year-on-year basis" 

- CNA/al/ch 



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