Singapore’s non-oil domestic exports (NODX) saw a slight year-on-year decrease of 0.1% in February 2024, surprising economists who had anticipated a 4.7% growth. This decline followed a 16.7% expansion in January, with non-electronic exports being the primary drag despite positive growth in the electronics sector.

February’s marginal dip was attributed partly to base effects from the Chinese New Year, which fell in different months over the past two years. However, economists pointed out that NODX remained relatively healthy, with a combined 8.4% year-on-year increase for January and February. Maybank economists noted the “ongoing recovery” of the export sector, especially in electronics, which grew by 5.2%, its second consecutive monthly gain following a prolonged decline.

Key contributors to the electronics sector’s expansion included integrated circuits, PCs, and IC parts. On the other hand, non-electronics fell by 1.5%, reversing January’s gains, with significant drops in food preparations, specialty chemicals, and electrical circuit apparatus.

NODX to major markets like Hong Kong, the US, and Indonesia saw notable growth, while exports to Japan, Malaysia, and China fell. Overall, Singapore’s total trade grew by 3.5% in February, although the seasonally adjusted monthly figures showed a 4.8% decrease in NODX. Despite the unexpected drop in February, economists expect a gradual recovery in the electronics sector in 2024, though challenges remain due to global uncertainties and potential geopolitical disruptions.