NODX Extends Decline But Re-exports Pick Up

Economic Research	19 June 2017
Singapore
Economic Update
NODX Extends Decline But Re-exports Pick Up Singapore’s non-oil domestic exports (NODX) fell 1.2% YoY in May, led by a sharp contraction in civil engineering equipment parts and non-monetary gold. Meanwhile, semiconductor demand strengthened and pharmaceutical exports shrank at a softer pace, cushioning some of the drop. We maintain our forecast for NODX to climb 3.9% in 2017, rebounding from a 2.8% fall the month before. Machinery exports will likely recover in the coming months on increased global capex but the growth is expected to be more moderate in 2H17. Similarly, demand for semiconductors is projected to remain positive ahead of the new iPhone launch in 4Q17 but overall growth is expected to be slower in 2H17 after the strong pick-up in 1H17. Economist:  Ng Kee Chou | +603 92802179