Singapore Apr chemicals output rises 3.1%; overall manufacturing down 1.6%

SINGAPORE (ICIS)–Singapore’s April chemicals output rose by 3.1% year on year, supported by strong growth in the petroleum segment, official data showed on Friday.

April output from the petroleum segment within the chemicals cluster rose by 9.3%, the Economic Development Board (EDB) said in a statement.

Specialties and petrochemicals output within the overall chemicals cluster posted a 1.2% and a 0.8% year-on-year growth in April, respectively, with the former recording higher production of mineral oil and food additives.

In the first four months of the year, output of the chemicals cluster increased by 5.6% year on year.

Singapore’s overall manufacturing output in April fell by 1.6% year on year, but was up 7.1% on a month-on-month seasonally adjusted basis.

Singapore is a major manufacturer and exporter of petrochemicals in southeast Asia. Its petrochemicals hub Jurong Island houses more than 100 global chemical firms, including energy majors ExxonMobil and Shell.

The country’s petrochemical shipments abroad rose by 26.5% year on year in April, reversing the 3.6% decline in the previous month.

Overall exports of chemicals and chemical products in April fell by 34.5% year on year, extending the 37% contraction in March.

The country’s overall non-oil domestic exports (NODX) fell by 9.3% year on year in April, extending the 20.8% decline in the preceding month.

GDP GROWTH FORECAST UNCHANGED
Singapore maintained its gross domestic product (GDP) growth forecast for the year at a range of 1 to 3% as its economy grew by 2.7% year-on-year in the first quarter of 2024, the Ministry of Trade and Industry said on 23 May.

The first quarter growth was in line with the ministry’s advance estimates and faster than the 2.2% growth recorded in the last quarter of 2023.

The first quarter was also the quickest pace in 18 months since the economy grew 4.1% on a year-on-year basis in the third quarter of 2022.

“Base effects continue to remain favorable in Q2 while growth momentum could strengthen in H2 2024 driven by the anticipated recovery in externally oriented sectors as financial conditions gradually ease should central banks in the advanced economies commence their rate cut cycles,” said Jester Koh, an associate economist at Singapore-based UOB Global Economics & Markets Research.

Meanwhile, China’s recovery, bolstered by measures promoting equipment renewals, consumer goods trade-ins, and property market stabilization, should have positive spillover effects on Singapore and the broader region, Koh said.

“We maintain our 2024 GDP growth forecast at 2.9%, which sits at the upper
end of MTI’s unchanged forecast range of 1.0-3.0%,” he added.

Focus article by Nurluqman Suratman