Singapore’s February exports rose 4.0% y/y, missing expectations as electronics gains were partly offset by weaker non-electronics shipments.

Summary:

• Singapore’s non-oil domestic exports (NODX) rose 4.0% year-on-year in February, below expectations for a 5.5% increase in a Reuters poll.

• Export growth was driven by electronics shipments, particularly integrated circuits and disk media products.

• Non-electronics exports declined, limiting the overall expansion in shipments.

• Exports to South Korea, Taiwan and Hong Kong increased, while shipments to Indonesia and the United States fell.

• The data comes as U.S. authorities launch trade investigations into several partners, including Singapore, citing persistent trade surpluses.

• Singapore’s Trade Ministry pushed back, noting the city-state actually runs a large overall trade deficit with the United States.

Singapore’s export growth slowed in February, with official data showing non-oil domestic exports rising 4.0% from a year earlier, missing market expectations and highlighting the uneven nature of global trade recovery.

The latest figures from Enterprise Singapore showed shipments expanding at a slower pace than the 5.5% increase forecast by economists in a Reuters poll. Despite the softer-than-expected headline number, the data still signalled continued resilience in parts of Singapore’s export sector.

Growth was largely driven by electronics exports, particularly integrated circuits and disk media products, which remain core components of Singapore’s advanced manufacturing sector. Demand for semiconductors and related technology products has been gradually recovering after a prolonged downturn in the global electronics cycle.

However, the broader export picture remained mixed. Non-electronics exports declined during the month, offsetting part of the strength seen in the electronics segment and keeping overall export growth below expectations.

Looking at destination markets, exports to several regional technology hubs recorded gains. Shipments to South Korea, Taiwan and Hong Kong increased compared with a year earlier, reflecting stronger trade flows within Asia’s electronics supply chain.

In contrast, exports to Indonesia and the United States were lower on a year-earlier basis, suggesting uneven demand across key trading partners.

The data arrives amid renewed scrutiny of global trade balances by the United States. Last week, U.S. authorities announced investigations into alleged unfair trade practices involving 16 trading partners, including Singapore, citing concerns about persistent trade surpluses and manufacturing expansion.

Singapore’s Trade Ministry rejected those claims, stating that the country actually runs an overall trade deficit with the United States amounting to roughly $27 billion. Officials also noted that Singapore’s industrial property occupancy rates remain high, at around 90%, countering suggestions that excess manufacturing capacity is being built.

Singapore’s export performance is closely watched by investors because the city-state’s trade-dependent economy often provides an early signal about the health of global demand, particularly in technology supply chains.