Singapore’s export industry is facing a difficult time due to declining electronic and pharma exports and recorded a downturn of 5.7% in September 2008.
The non-oil domestic exports from Singapore recorded a decline of 5.7% in September 2008, in comparison to September 2007 because of reduced exports of both electronic and non-electronic goods, as reported by channelnewsasia.
According to the Ministry of Trade and Industry International Enterprise Singapore, the overall exports declined by 0.8% in September 2008 from August 2008.
The export of electronic products, such as chips, disk drives and telecommunication equipments came down by 11% in September 2008. Export of non-electronic products too decreased by 1.9%, with pharmaceutical products export topping the list.
The primary factor that has triggered this decline is the downfall in the exports of electronic products due to the ongoing global economic crisis. Although non-oil domestic exports to China, Indonesia, Hong Kong and South Korea rose, but there has been a constant decrease in the exports to the US, which serves as the biggest export market for Singapore.
Moreover, Singapore’s non-oil domestic exports – that comprise of products either wholly produced in Singapore or have been further processed in the country – also added to the slump in exports. These products include mobile phones, medical instruments and active components for a few best-selling drugs.
Pharma sector is the most significant sector that influences the economy of Singapore strongly but at present, it is experiencing a low phase, following a considerable double-digit rise in 2007. The industry is declining annually.
Furthermore, the figures suggest that the number of shipments of pharma products has reduced considerably over the period, due to the global economic crisis.
The trend of global slump is likely to head into 2009 too as the recent phase of economic chaos is going to put further pressure on the world economy. And Singapore, being a small economy depending on trade, will certainly feel this pressure.
According to the Research Analyst at RNCOS, “Exports from Singapore suffered a downfall in September as a consequence of global economic volatility and 2009 is also expected to witness a further decline. Moreover, after having two successive quarters of slowdown, Singapore’s economy is supposed to be in a state of technical recession.”
