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Business Times
23-05-2025
- Business
- Business Times
Singapore inks carbon credit transfer deal with Paraguay
[SINGAPORE] Singapore has inked a carbon credit transfer agreement with Paraguay, the seventh country to sign such an agreement with the Republic, after Papua New Guinea, Ghana, Bhutan, Peru, Chile and Rwanda. The partnership sets out a framework for the generation and international transfer of carbon credits between Singapore and the South American nation, said the Ministry of Trade and Industry (MTI) in a press release on Friday (May 23). The agreement is aligned with Article 6 of the Paris Agreement, which governs rules on the bilateral and international transfer of carbon credits. Under Article 6, Paraguay will have to increase its reported emissions by the amount of carbon credits it has transferred to Singapore, to avoid double counting. One carbon credit represents a reduction, avoidance or removal of one tonne of carbon dioxide equivalent. Project developers can utilise this framework to develop high-quality carbon credit projects that are aligned with Article 6, said MTI. It added that information on the process for authorisation of these carbon credits projects and eligible carbon crediting methodologies will be published in time. MTI said that this collaboration will advance both countries' climate ambitions by directing financing that could support climate mitigation efforts in Paraguay. A NEWSLETTER FOR YOU Friday, 12.30 pm ESG Insights An exclusive weekly report on the latest environmental, social and governance issues. Sign Up Sign Up The carbon mitigation projects authorised under the agreement will promote sustainable development and deliver tangible benefits to local communities, such as creation of jobs and reduction of environmental pollution, the press release indicated. Singapore has been accelerating its pace in securing these carbon credits deals over the last two months. After the first agreement was signed with Papua New Guinea in December 2023 at the United Nations climate change conference in Dubai, the deal with Ghana came about six months later. The one with Bhutan was finalised about nine months after that, in February this year. The agreements with Peru, Chile, Rwanda and Paraguay all took place in the span of the last two months. The agreement with Paraguay was signed by Singapore's Minister for Sustainability and the Environment and Minister-in-Charge of Trade Relations, Grace Fu, as well Paraguay's Minister of Environment and Sustainable Development, Rolando de Barros Barreto. Fu said that both countries are committed to fostering sustainable development and economic cooperation, and this agreement marks a milestone in Singapore and Paraguay's partnership. 'I look forward to seeing companies leverage this agreement to develop tangible projects that drive real emissions reductions,' she added.
Yahoo
23-05-2025
- Business
- Yahoo
Singapore maintains previously lowered full-year GDP forecast at 0 - 2% on 'significant uncertainty' ahead
Singapore's economy grew by 3.9% in the first quarter, with support from front-loading activities ahead of US tariffs. Singapore's official GDP forecast for this year has been kept at between 0 to 2%, as concerns over the trade war persist despite some tentative agreements reached. The government downgraded the full-year forecast last month from the previous 1-3% growth range after the global trade war was ignited by the US. Since then, US has reached agreements of sorts with the likes of UK and China, notes the Ministry of Trade and Industry. "Given the steps taken by major economies to de-escalate global trade tensions, MTI's assessment is that Singapore's external demand outlook for the rest of the year has improved slightly compared to April," says MTI. "Notwithstanding the positive developments in recent weeks, the global economic outlook remains clouded by significant uncertainty, with the risks tilted to the downside," says MTI. For one, there might be a larger-than-expected pullback in economic activity as businesses and households adopt a 'wait-and-see' approach before deciding what and when to spend. Also, a re-escalation of tariff actions could lead to a full-blown global trade war, with the inevitable sharper global economic slowdown to follow. Thirdly, disruptions to the global disinflation process and recession risks in both advanced and emerging markets could lead to destabilising capital flows that could trigger latent vulnerabilities in banking and financial systems, warns MTI. As such, Singapore's economy, especially the export-oriented manufacturing sector, could be "adversely affected" and overall growth is expected to slow. The finance & insurance sector could be weighed down too by episodes of weaker trading activity while the consumer-facing sectors will remain "lacklustre" with the expected weakening of domestic labour market conditions. Front-loading For the first three months of the year, Singapore's economy grew by 3.9% y-o-y, moderating from a 5% growth in 1Q 2024. The growth, according to the Ministry of Trade and Industry, was largely driven by wholesale trade, manufacturing and the finance and insurance sectors. "In particular, growth in the manufacturing and wholesale trade sectors were likely to have been partly supported by front-loading activities ahead of anticipated US tariff hikes," cautions MTI. On the other hand, the accommodation and food & beverage services sectors contracted, weighed down by the weak performance of the higher value-added hotel segments. On a seasonally adjusted q-o-q basis, the economy contracted slightly by 0.6%, reversing from the expansion of 0.5% eked out in 4Q 2024. In its separate announcement Enterprise Singapore says that led by the electronics sector, Singapore's non-oil domestic export for 1Q 2025 was up 3.3%, extending the 2.4% growth in 4Q 2024 The full-year figure is expected to grow by 1 - 3%, with the lower bound of the forecast building in a weaker 2H 2025 outlook amidst an evolving tariff situation. "Notwithstanding the recent US-China trade tension de-escalation, downside risks could intensify following the expiration of the 90-day reciprocal tariff reprieve," warns Enterprise Singapore. 4% China-US trade soars as exporters race to hit trade truce window GM stops small number of car exports to China due to tariffs Read more stories about where the money flows, and analysis of the biggest market stories from Singapore and around the World Get in-depth insights from our expert contributors, and dive into financial and economic trends Follow the market issue situation with our daily updates Or want more Lifestyle and Passion stories? Click here
CNA
23-05-2025
- Business
- CNA
Singapore's core inflation rises to 0.7% in April, first increase after six months
SINGAPORE: Singapore's core inflation rose in April, marking the first year-on-year increase after six months. Core inflation, which excludes private transport and accommodation, came in at 0.7 per cent in April. This is above the March reading of 0.5 per cent, which was a four-year low, and the median forecast of 0.5 per cent in a Reuters poll of economists. The April increase was driven by higher inflation in services and food, which more than offset lower retail and other goods inflation, said the Monetary Authority of Singapore (MAS) and the Ministry of Trade and Industry (MTI) on Friday (May 23). On a month-on-month basis, core inflation rose by 0.5 per cent. Overall inflation remained at 0.9 per cent in April as the rise in core inflation was offset by lower accommodation and private transport inflation, said MAS and MTI. They added that Singapore's imported inflation is expected to remain "moderate", noting that amid slowing global demand and ample supply conditions, global crude oil prices are projected to be lower compared to 2024. "Food commodity price increases should also stay contained," said MAS and MTI. "Although the trade conflicts could be inflationary for some economies, their impact on Singapore's import prices is likely to be more than offset by the disinflationary drags exerted by weaker global demand." Both core inflation and overall inflation are projected to average 0.5 per cent to 1.5 per cent in 2025. SECTORS Services inflation rose from 0.6 per cent in March to 1.1 per cent in April because of a larger increase in health insurance costs and a smaller decline in airfares. Food inflation increased slightly, edging up from 1.3 per cent in March to 1.4 per cent in April as prices of non-cooked food rose faster. Retail and other goods inflation fell 1.2 per cent after dropping 0.5 per cent in March. A decline in clothing and footwear prices and a sharper drop in the cost of medicines and health products offset an increase in water prices. Electricity and gas inflation remained at 3.5 per cent. Private transport inflation eased from 2.1 per cent in the previous month to 1.3 per cent in April, due to a smaller increase in car prices and a larger decline in petrol prices. Accommodation inflation also fell, moderating from 1.4 per cent in March to 1.1 per cent in April. This was caused by smaller increases in housing rents, as well as housing maintenance and repair costs. OUTLOOK While the rise in the annual core inflation rate was the first since September last year, when it had ticked up to 2.8 per cent, it was the fourth consecutive month where the reading was below 1 per cent. MAS and MTI said that on the domestic front, unit labour costs are projected to rise gradually as nominal wage growth continues to ease, even as productivity increases. Enhanced government subsidies for essential services such as public healthcare, preschool education and public transport will continue to dampen services inflation, they added.
AsiaOne
22-05-2025
- Business
- AsiaOne
Daily roundup: New FairPrice Finest outlet featuring food hall opens in Sembawang — and other top stories today, Singapore News
Stay in the know with a recap of our top stories today. 1. Supermarket meets kopitiam: New FairPrice Finest outlet featuring food hall opens in Sembawang Heading out for a grocery run could mean a whole different experience for Sembawang residents from now on. With the official opening of the FairPrice Finest outlet at Sembawang Shopping Centre on Thursday (May 22)... » READ MORE 2. Singapore keeps 2025 growth forecast at 0-2%, sees slight boost from US-China truce The Ministry of Trade and Industry (MTI) has maintained Singapore's economic growth forecast for the year at a range of zero to two per cent, amid encouraging signs of de-escalation in global trade tensions... » READ MORE 3. 'Mixed emotions': Ministers Chan Chun Sing, Desmond Lee and Chee Hong Tat reflect on their Cabinet movements Following Prime Minister Lawrence Wong's reshuffling of the Cabinet on Wednesday (May 21), Ministers Chan Chun Sing, Desmond Lee and Chee Hong Tat have expressed their thoughts regarding their movements... » READ MORE 4. ICA reviewing PR status of Ian Fang, Lev Panfilov following convictions for sexual offences The Immigration and Checkpoints Authority (ICA) is reviewing the permanent resident (PR) statuses of actors Ian Fang and Lev Panfilov following their convictions for sexual offences... » READ MORE editor@
Business Times
22-05-2025
- Business
- Business Times
Economists split over risk of technical recession, after revised Singapore Q1 growth beats market expectations
[SINGAPORE] Private-sector economists remain split over the risk of Singapore entering a technical recession, with some raising their full-year forecasts after Q1 growth came in better than expected. Singapore's gross domestic product grew 3.9 per cent year on year in Q1, revised up marginally from the advance estimate of 3.8 per cent, Ministry of Trade and Industry (MTI) figures indicated on Thursday (May 22). Though it was a slowdown from the previous quarter's 5 per cent growth, it surpassed economists' expectations of 3.6 per cent. MTI maintained its forecast range of 0 to 2 per cent. Most economists also kept theirs, but two banks – Maybank and UOB – upgraded their forecasts. On a quarter-on-quarter seasonally adjusted basis, the economy shrank 0.6 per cent, reversing from Q4's 0.5 per cent growth. Though less than the 0.8 per cent contraction in the advance figures, this still paves the way for a technical recession, which MTI permanent secretary Dr Beh Swan Gin acknowledged as 'a possibility' at Thursday's briefing. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Staying cautious In maintaining its forecast, MTI said Singapore's external demand outlook for the rest of the year has 'improved slightly' with a de-escalation of US-China trade tariffs – but the global outlook remains clouded by uncertainty, with risks tilted to the downside. Dr Beh said: 'Given the heightened uncertainty, MTI will continue to monitor developments closely, and make adjustments to the forecast as necessary in the coming quarters.' Most economists similarly remained cautious amid uncertainty. RHB analysts Barnabas Gan and Laalitha Raveenthar maintained their 2025 growth forecast at 2 per cent. For them, ongoing US-China trade talks limit the downside risk of growth being in the lower 0.5 to 1 per cent range. Still, they warned: 'Although recent advances in US-China negotiations provide encouraging signals of easing tensions, we urge continued vigilance and caution against premature optimism.' They expect Singapore to enter a technical recession in Q2 with a contraction of 2.4 per cent on a quarter-on-quarter seasonally adjusted basis. OCBC chief economist Selena Ling similarly kept her growth forecast at 1.6 per cent and expects a technical recession in Q2 on a quarterly contraction of 0.3 per cent, with year on year growth slowing further to 2.5 per cent. Despite positive developments such as the 90-day pause on reciprocal tariffs, an initial US-UK trade deal and the 90-day US-China tariff truce, 'some damage to business and consumer confidence has already been done', she said. DBS senior economist Chua Han Teng maintained his 2 per cent forecast for full-year growth, but sees a chance of avoiding a technical recession. With exports being front-loaded during the 90-day reciprocal tariff pause, the boost to Singapore's trade-related sectors 'could be sufficient' to avoid a technical recession in Q2, he said. However, such front-loading 'will eventually be followed by a payback through decelerating trade and production' in the second half of the year. Optimistic for now MTI noted that Q1 growth was largely driven by Singapore's wholesale trade, manufacturing as well as finance and insurance sectors – with the first two likely to have been partly supported by front-loading. Exporters could continue to adopt front-loading as a hedging strategy, allowing for 'bouts of resilience' in Singapore's growth momentum, said UOB associate economist Jester Koh. He raised his full-year forecast to 1.7 per cent, from 1.5 per cent before. But in turn, he lowered his 2026 growth forecast to 1.4 per cent, from 1.6 per cent before. This is as payback effects could result in an 'even more protracted downturn in trade and manufacturing activity' late in the second half of 2025, and into the first half of 2026. Maybank economists Chua Hak Bin and Brian Lee upgraded their full-year forecast to 2.4 per cent – above MTI's forecast range – from 2.1 per cent previously. They expect a growth slowdown in the second half, as opposed to a recession or sharp downturn. This is as front-loading continues into Q3, while the tariff shocks are also cushioned by a construction boom, falling interest rates and fiscal support. Safe-haven flows will also support Singapore's financial and real estate activities. Sectoral outlook For the rest of the year, MTI expects the growth of outward-oriented sectors to slow, particularly as US tariff measures hurt manufacturing. The manufacturing slowdown, alongside weaker global trade, will weigh on trade-related services sectors such as wholesale trade; transportation and storage; and finance and insurance. Worsening business expectations will likely cause companies to cut back on discretionary spending, dampening the growth of the information and communications as well as professional services sectors. Finally, growth in consumer-facing sectors such as retail trade as well as food and beverage services is likely to remain lacklustre, as locals continue to spend abroad and domestic labour market conditions weaken. This follows a Q1 in which the outward-oriented sectors generally had year-on-year growth but quarterly contraction. Manufacturing growth slowed to 4 per cent, from 7.4 per cent before. Growth was mainly driven by the electronics, precision engineering and transport engineering clusters. But on a quarterly basis, the sector shrank 5.8 per cent, weakening from flat growth before. Construction grew 5.5 per cent, up from 4.4 per cent before. But sequentially, it contracted 1.4 per cent, reversing Q4's 0.3 per cent expansion. The wholesale trade sector grew 4.2 per cent year on year, slowing from 6.7 per cent. But it shrank 0.4 per cent quarter on quarter, reversing from Q4's 0.9 per cent growth. For domestic-oriented services, retail trade grew by a marginal 0.1 per cent, accommodation shrank 0.9 per cent, and food and beverage services shrank 0.2 per cent. In contrast, growth accelerated for several services sectors: to 5.2 per cent for transportation and storage; to 7.1 per cent for real estate; to 1.4 per cent for professional services; to 4.4 per cent for information and communications; and to 2.8 per cent for administrative and support services. Other services industries grew 1.1 per cent, slowing from 3.1 per cent the previous quarter.
