Singapore reported an 11.3% drop in non-oil domestic exports
Singapore’s economy is facing significant challenges in 2025, particularly in its export sector, as non-oil domestic exports dropped sharply by 11.3% in August year-over-year, much weaker than expected. This decline reflects the broader headwinds from ongoing global trade tensions, especially the impact of US tariffs that have dampened demand for Singapore’s key electronic and non-electronic products in important markets like the United States. These disruptions come amid an already cautious global economic environment marked by geopolitical uncertainties and supply chain issues. Despite Singapore’s strategic advantages as a trade hub and early-year resilience, economists predict moderated growth for the remainder of 2025, highlighting the need for agile policy measures to navigate external risks and sustain economic stability.
Singapore’s non-oil domestic exports (NODX), a key indicator of the city-state’s trade performance outside the oil sector, fell by 11.3%
year-on-year in August 2025, marking a sharper decline than market expectations and the revised 4.7% contraction recorded in July. This
drop was driven by reductions in both electronic and non-electronic product shipments. Electronics exports declined by 6.5%, with
significant decreases in disk media products, integrated circuits, and personal computer parts. Non-electronic exports shrank by 13%,
heavily impacted by falls in specialized machinery, food preparations, and petrochemicals.
The decline occurred amidst persistent challenges linked to U.S. tariffs, which continue to disrupt key trade flows. Exports to the
U.S. plunged 28.8% year-on-year in August after a steep 42.8% drop in July, despite Singapore’s free-trade agreement with the U.S. and
a trade deficit position. The tariffs have increased costs and lowered demand for Singaporean goods entering the American market. While
exports to countries such as Indonesia, China, and the U.S. declined, Singapore saw export growth to the European Union, Taiwan, and South
Korea.
Despite a stronger than expected economic performance in the first half of 2025, supported by front-loaded export and production activities,
officials have cautioned that growth will likely moderate in the latter half of the year. Enterprise Singapore projects that non-oil export
growth for 2025 will range between 1% and 3%, but expects headwinds caused by tariff barriers and global economic uncertainties to persist
in the coming months. Trade Minister Gan Kim Yong highlighted that tariffs impacting Singapore’s trading partners could indirectly slow
demand and exports from Singapore as well.
This setback reflects the broader challenges facing the global trade environment as protectionist measures and geopolitical tensions
continue to weigh on export-dependent economies like Singapore.
Singapore’s non-oil domestic exports (NODX), a key indicator of the city-state’s trade performance outside the oil sector, fell by 11.3%
year-on-year in August 2025, marking a sharper decline than market expectations and the revised 4.7% contraction recorded in July. This
drop was driven by reductions in both electronic and non-electronic product shipments. Electronics exports declined by 6.5%, with
significant decreases in disk media products, integrated circuits, and personal computer parts. Non-electronic exports shrank by 13%,
heavily impacted by falls in specialized machinery, food preparations, and petrochemicals.
The decline occurred amidst persistent challenges linked to U.S. tariffs, which continue to disrupt key trade flows. Exports to the
U.S. plunged 28.8% year-on-year in August after a steep 42.8% drop in July, despite Singapore’s free-trade agreement with the U.S. and
a trade deficit position. The tariffs have increased costs and lowered demand for Singaporean goods entering the American market. While
exports to countries such as Indonesia, China, and the U.S. declined, Singapore saw export growth to the European Union, Taiwan, and South
Korea.
Despite a stronger than expected economic performance in the first half of 2025, supported by front-loaded export and production activities,
officials have cautioned that growth will likely moderate in the latter half of the year. Enterprise Singapore projects that non-oil export
growth for 2025 will range between 1% and 3%, but expects headwinds caused by tariff barriers and global economic uncertainties to persist
in the coming months. Trade Minister Gan Kim Yong highlighted that tariffs impacting Singapore’s trading partners could indirectly slow
demand and exports from Singapore as well.
This setback reflects the broader challenges facing the global trade environment as protectionist measures and geopolitical tensions
continue to weigh on export-dependent economies like Singapore.