The Singaporean government has predicted growth in the export industry due to strong performance by the semiconductor industry and rising domestic export.
The Singaporean government announced that the country’s exports may grow in the current year because of recovery in the telecom sales. However, the industry analysts believe that the government is very optimistic despite low 2007 and fears of US recession, as reported by The Financial Express.
According to the government of Singapore, the export to the US will grow around 1.5 to 2% this year and the same trend is likely to continue in the entire Asian region as well, thus raising exports from the lion country also (as Singapore exports a big part to the US).
The major reason for an upbeat forecast by the government is the impressive growth in the semiconductor industry of Singapore. Exports of Singapore’s semiconductor industry, during October to December 2007, chipped in 3.2% (annualized) to the economy of the country. The government also predicted that the export of semiconductor industry will increase due to rising global demand as the use of mobiles and computers is rising rapidly all over the world.
More and more investors from around the world are investing in the semiconductor industry of Singapore because of easy business and regulatory conditions. Rising investment in the industry is increasing the production, which is eventually increasing the export from the country.
Moreover, the initiatives taken by representatives of Singapore Fruits and Vegetables Importers and Exporters Association are too boosting the growth in the export sector. Singapore Fruits and Vegetables Importers and Exporters Association visited Murraylands in South Australia to establish new ties with the potential exporters of the region.
Along with the international exports, the domestic export is also rising in the country due to improvement in the transport industry of Singapore. On the part of government, custom duties have been cut down to extend benefits to both the exporting companies and manufacturing companies.
A Senior Research Analyst at RNCOS says, “Rising demand for Singapore’s electronic products is likely to boost the country’s export this year. Improving ties with other countries and better business infrastructure are contributing to the growth in the export sector. And this is an ideal time to invest in the country because the business is booming in the country.”
