Dip in exports eases to 0.1% - mildest fall in 20 months

Electronics exports post 21.9% growth as Al-related tech demand drives recovery

- Chor Khieng Yuit

The slump in Singapore's key exports may have ended, economists said, after data for May came in better than expected, with the recovery being driven by tech demand related to artificial intelligence (AI).

Non-oil domestic exports (Nodx) dipped 0.1 per cent year on year in May after shrinking a revised 9.6 per cent in April.

While this marked the fourth straight month of contraction, it was the mildest decline in 20 months, trade agency Enterprise Singapore (EnterpriseSG) noted on June 18. It also beat the 1.1 per cent drop forecast by economists in a Bloomberg poll.

Electronics exports posted the first double-digit growth in 22 months. They grew 21.9 per cent year on year in May, extending the 3.3 per cent increase in April.

The growth in electronics Nodx was driven by integrated circuits (ICs), also referred to as chips or semiconductors.

Year on year, shipments of ICS which make up about half of electronics exports - grew 35.8 per cent to $1.9 billion.

Exports of disk media products jumped 92 per cent from a year ago to $571.5 million, while personal computers (PCs) grew 27.2 per cent to $286.9 million.

The ongoing recovery in the global tech cycle will have positive spillovers on Singapore's electronics shipments, said DBS Bank economist Chua Han Teng.

Global tech demand is picking up, driven by the need to replace smartphones and PCs, as well as the growing use of AI applications, he added.