Singapore beats export expectations with 13pc rise annually in June, driven by electronics and gold
The rise compared with a Reuters poll forecast for annual growth of 5.0 per cent, and followed a revised 3.9 per cent fall in May.
Details of the month-on-month seasonally adjusted change in exports were not included in Enterprise Singapore's statement.
Exports of electronic products such as integrated circuits and computers grew an annual 53.8 per cent and 17.5 per cent respectively, while non-electronic products such as non-monetary gold and specialised machinery grew by 211.9 per cent and 31.4 per cent respectively.
Exports to Hong Kong, Taiwan and South Korea increased in annual terms in June, while shipments to Japan, Indonesia and the US decreased.
DBS senior economist Chua Han Teng said that although Singapore's goods exports were resilient in the first half of the year, front-loading of shipments will be followed by a deceleration in trade and manufacturing production in the latter half of the year.
For the first six months of 2025, non-oil domestic exports rose 5.2 per cent year-on-year.
'The city-state's external demand will likely face downward pressures, due to still-high global trade frictions and continued uncertainty surrounding US tariffs, such as the potential imposition of US sectoral tariffs on semiconductors and pharmaceutical goods,' he said.
US President Donald Trump has notified some countries that tariffs of about 20 per cent to 50 per cent that will kick in from August 1, warning that any reprisals would draw a like-for-like response.
South-east Asian neighbours Vietnam and Indonesia have both struck deals with Washington for tariffs below the levels Trump had initially threatened.
Trade-dependent Singapore has not yet received a letter from the Trump administration this round, and its exports are still subject to the 10 per cent baseline tariff announced in April.
Singapore's economy grew a faster-than-expected 4.3 per cent in the second quarter from a year earlier, preliminary data showed, despite a dimming outlook due to global economic uncertainty.
Trade Minister Gan Kim Yong has warned that the implementation of US tariffs and a diminishing front-loading effect would weigh on growth over the next six to 12 months.
Gan will visit the United States later this month to discuss tariff concessions for pharmaceutical exports as part of efforts to limit the economic impact of the trade war on Singapore. — Reuters
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Sun
38 minutes ago
- The Sun
UMS Integration moving up supply chain, expanding Penang operations
KUALA LUMPUR: UMS Integration Ltd is ramping up its push into the artificial intelligence (AI) and high‑performance computing supply chain, eyeing higher‑value precision components and expanding its Penang facilities as part of a five‑year growth roadmap following its landmark secondary listing on Bursa Malaysia today. CEO Luong Andy said the Singapore‑headquartered precision engineering specialist, which already counts two major semiconductor clients among its key customers, sees 'tremendous opportunities' in advanced packaging solutions critical for AI chips, a segment driving global capital expenditure in semiconductors. 'We are moving up the semiconductor value chain and see many opportunities, especially in AI and high‑performance computing, where we have the know‑how and capability to produce the precision components needed,' Luong told reporters after the listing ceremony. The company's shares opened at RM5.15, 3% above the reference price of RM5, and traded as high as RM5.39 in early deals, valuing UMS Integration at about RM3.7 billion. The counter, categorised under the Industrial Products and Services sector on Bursa Malaysia, closed at RM5.50 a share. Executive director Stanley Loh Meng Chong said UMS Integration is doubling down on Penang, where it operates its largest production plant, to support growing orders for advanced semiconductor equipment. The company recently acquired additional land in Penang and plans to begin construction next year, adding about 200,000 sq ft to reach 1 million sq ft in total manufacturing space within the next two to three years. 'Penang remains central to our volume manufacturing strategy. This expansion will support key customers' ramp‑up in operations, especially for advanced node manufacturing and packaging linked to AI chips,' Loh said, adding that Malaysia's accessibility and talent pool make it a preferred base for scaling production. UMS Integration's secondary listing on Bursa Malaysia was undertaken by way of introduction, meaning no new funds were raised. The company retains its primary listing on the Singapore Exchange, where it last traded at S$1.52. Luong said the dual‑listing strategy is aimed at enhancing liquidity and providing 'flexibility to tap different equity markets' for future fundraising if needed. 'This listing broadens our investor base and positions us better to access capital when opportunities arise,' he noted. For the first quarter ended March 31, 2025, UMS Integration posted S$57.7 million in revenue, up 7% year‑on‑year, with net profit edging up to S$10.1 million. The semiconductor segment contributed 84% of revenue, followed by aerospace at 11%. The group remains in a net cash position of S$81.4 million and continues its policy of quarterly dividends, paying S$0.01 per share in July. UMS Integration has historically been reliant on one major customer but is now balancing its portfolio with a second key client of comparable size. Loh said this diversification, coupled with demand from AI‑driven chipmakers, is expected to underpin growth in 2025 and beyond. 'We believe this year will be better than last, and the years to come will also benefit from the trend of higher equipment spending,' he said. While research and development remains anchored in Singapore, Loh said Malaysia will continue to absorb most of the group's manufacturing investments, with Penang serving as its volume hub for global customers. Deputy Finance Minister Lim Hui Ying, who officiated at the ceremony, hailed the cross‑border listing as a milestone for Malaysia's capital market and a signal of growing economic integration between Malaysia and Singapore. She said UMS Integration's move underscored confidence in the robustness of Bursa Malaysia's infrastructure, investor depth and governance standards, while aligning with the government's ambitions to position the country as a hub for regional and international listings. Lim highlighted Penang's pivotal role in UMS Integration's growth story, noting how the company's expansion has paralleled the state's rise as a global semiconductor and advanced manufacturing hub. 'UMS Integration's continued investment has not only enhanced Penang's manufacturing ecosystem but also created high‑value jobs and opportunities, aligned with the Penang 2030 vision to attract quality, future‑forward investment,' she said. She added that Malaysia's regulatory ecosystem is evolving to support innovation, digitalisation and sustainable finance, and expressed hope that UMS Integration's secondary listing would inspire other regional players with Malaysian ties to consider a presence on Bursa Malaysia. 'This milestone reflects our broader aspiration to connect Asean businesses with global investors, while driving high‑tech and capital‑intensive sectors critical to the region's growth,' Lim said.
Borneo Post
2 hours ago
- Borneo Post
Tengku Zafrul: Semiconductor and pharma exports to US remain duty-free despite broader tariff deal
Tengku Zafrul said Malaysia will have 6,911 lines with zero tariffs following protracted negotiations with their American counterparts. – Bernama photo KUALA LUMPUR (Aug 1): Minister of Investment, Trade, and Industry (Miti) Datuk Seri Tengku Zafrul Abdul Aziz today clarified that the semiconductor and pharmaceutical industries are not affected by recent tariff negotiations, and that imports to the United States remain at zero tariff. He also reiterated that the tariff rate has dropped from 25 per cent to 19 per cent. Tengku Zafrul said Malaysia will have 6,911 lines with zero tariffs following protracted negotiations with their American counterparts. He said this amounted to 61 per cent of the total 11,260 tariff lines requested by the United States. A tariff line refers to an item listed in a country's tariff schedule, which is used to classify merchandise goods for the purpose of applying tariffs. The agreement follows extensive negotiations involving multiple ministries, agencies and stakeholders while ensuring Malaysia's national policies and strategic interests are not compromised. 'This is a systematic and methodical approach to determine our final offer to the United States and we've made a comprehensive offer that covers 98 per cent of all tariff lines but have only agreed to liberalise 61 per cent,' Tengku Zafrul said at a press conference at Miti headquarters today. Tengku Zafrul also addressed the issue of non-tariff barriers stating that the government is committed to reforming bureaucratic processes that have historically been seen as impediments to trade and investments. 'We acknowledge that some non-tariff barriers arise from inefficiencies in the system and we see this as an opportunity to improve our processes. However, these reforms will not come at the expense of Malaysia's regulatory standards,' he said. Despite the concessions, Tengku Zafrul also said Malaysia drew the line on key sectors. He said the government refused US requests to abolish excise duties on vehicles, tobacco and alcohol and declined to eliminate import permit requirements or relax foreign equity caps in strategic sectors. 'We are not compromising our economic sovereignty or national security. Excise duties, import licenses and equity restriction remain in place where necessary,' he said. Tengku Zafrul said that negotiations are always ongoing and are part of a broader strategy to strengthen Malaysia's trade position while safeguarding domestic industries. – Malay Mail
Malay Mail
2 hours ago
- Malay Mail
Malaysia reaffirms US$19b purchase of 26 Boeing jets as part of US trade ties, says Zafrul
KUALA LUMPUR, Aug 1 —Malaysia has reaffirmed its commitment to purchase a total of 26 Boeing aircraft in two phases, a deal estimated to be worth close to US$19 billion, said Minister of Investment, Trade and Industry Tengku Datuk Seri Tengku Zafrul Abdul Aziz. The purchase is part of ongoing commercial agreements with the United States and was highlighted during Malaysia's recent trade negotiations. 'We made some commercial commitments, which have already been announced, but we reinforced them. One is the Boeing aircraft purchase,' Zafrul said at a press conference at Miti headquarters today. He explained that the first phase involves 13 aircraft, valued at US$9.5 billion, with a second phase involving an additional 13 aircraft of similar value. 'We also committed to an additional 13 Boeing aircraft for the second phase — also valued around that. So those are some of the examples of our commercial commitments,' he added. The purchase signals Malaysia's continued support of bilateral trade ties and aerospace cooperation with the United States, amid broader negotiations on tariffs and market access. Zafrul did not specify which airlines or agencies were involved in the Boeing deals, but reiterated that such commercial undertakings are aimed at mutual benefit, creating downstream opportunities for Malaysia's aviation and maintenance, repair and overhaul (MRO) sectors.
