Singapore Dec petrochemical exports fall 14%; NODX down 1.5%

SINGAPORE (ICIS)–Singapore’s petrochemical exports in December fell by 14% year on year to Singapore dollar (S$) 1.09bn, weighing on overall non-oil domestic (NODX) abroad, official data showed on Wednesday.

The country’s overall non-oil domestic (NODX) for the month fell by 1.5% year on year to S$14bn, reversing the 1.0% increase in the preceding month, Enterprise Singapore data showed.

Non-electronic NODX (NODX), which includes pharmaceuticals and petrochemicals, rose by 1.4% year on year to S$11.2bn in December.

Overall NODX to six out of Singapore’s top 10 markets declined in December, with shipments to Taiwan and the South Korea recording the steepest year-on-year falls of 33.2% and 28.2%, respectively.

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

Its trade-reliant economy grew by 2.8% year on year in the fourth quarter, faster than the 1.0% growth in the previous quarter, official preliminary estimates showed earlier this month.

For the whole of 2023, the economy grew by 1.2% year on year, moderating from the 3.6% growth in 2022, the Ministry of Trade and Industry said in a statement on 2 January.

The improvement in Q4 GDP was mainly led by a robust 3.2% year on year expansion in manufacturing following four consecutive quarters of contraction.

In 2024, the ministry projects an upward trend in Singapore’s overall manufacturing and trade, particularly due to a global rebound in electronics demand.

However, the MTI cautions about substantial risks that could impact these growth projections, including continued high interest rates in major economies and potential intensifications in international conflicts, specifically the ongoing Israel-Hamas situation and the conflict in Ukraine.

“The progress of recovery in externally oriented sectors such as manufacturing, wholesale trade, transportation & storage, finance & insurance could remain choppy in H1 2024 given the soft external demand stemming from an elevated interest rate environment and we anticipate a more meaningful recovery only in H2 2024,” UOB Global Economics & Markets Research said in a note.

Thumbnail photo shows a Singapore port (Source: Wallace Woon/EPA/Shutterstock)

Focus article by Nurluqman Suratman