<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0><TBODY><TR>S'pore exports fall for 5th straight month
</TR><!-- headline one : end --><TR>Sept drop not as steep as expected; analysts say weaker US, EU demand will drive down figures </TR><!-- Author --><TR><TD class="padlrt8 georgia11 darkgrey bold" colSpan=2>By Robin Chan
</TD></TR><!-- show image if available --><TR vAlign=bottom><TD width=330>
</TD><TD width=10>
</TD><TD vAlign=bottom>
Last month's decline in exports was driven by falling shipments in the once-vital electronics sector. -- PHOTOS: TOKYO SENPAKU KAISHA
</TD></TR></TBODY></TABLE>
<!-- START OF : div id="storytext"--><!-- more than 4 paragraphs -->
SINGAPORE'S exports have continued a dismal run by declining for a fifth straight month in September - although the slide was not as steep as expected.
<TABLE width=200 align=left valign="top"><TBODY><TR><TD class=padr8><!-- Vodcast --><!-- Background Story -->RELATED LINKS
<!-- Audio --><!-- Video --><!-- PDF -->
CONTINUED DECLINE
DROP IN EXPORTS
<!-- Photo Gallery -->
</TD></TR></TBODY></TABLE>Non-oil domestic exports fell 5.7 per cent last month from the same period last year, as shipments to the key markets of the United States and the European Union (EU) continued to weaken.
With the financial crisis spilling over to the real economy, analysts expect slowing global demand to continue to drive down Singapore's exports for the year.
Still, there were some positive signs amid the gloom. Exports fell less sharply than August's 13.9 per cent, and the result was markedly better than the 9.7 per cent decline economists had expected.
This was due in part to a slight rebound in pharmaceuticals and a solid recovery in exports to China.
Analysts, however, said the broader trend demonstrated an underlying weakness in exports with a continued broad-based contraction in exports across both Singapore's export markets and specific types of export products.
Singapore entered a technical recession last quarter, dragged down by slowing exports, after advanced economic output estimates released by the Government last week showed that the economy had shrunk for a second straight quarter in the three months ended Sept 30.
Last month's decline in exports was driven again by falling shipments in the once-vital electronics sector. They slid by 10.7 per cent in the 17th consecutive month of decline, according to the latest report from trade promotion board IE Singapore.
The weakness in electronics exports was largely due to lower sales of consumer electronics, telecommunications equipment and disk drives, IE said.
Non-electronic exports also fell 1.9 per cent, less than August's 9.7 per cent decline, because of reduced demand for pharmaceuticals, disk media products and machinery.
Analysts have been watching closely the health of shipments to the key EU and US markets. Last month, both declined 24 per cent following a 27 per cent and 30 per cent decline in August respectively, because of lower demand for both electronics and non-electronic exports.
CIMB-GK economist Song Seng Wun said US and EU demand will take a big hit in the coming months as the financial crisis tightens its grip, placing more downward pressure on export numbers.
The US and EU countries are facing a severe economic recession as policymakers have now turned their attention to addressing slowing growth after a coordinated rescue of the financial system.
Singapore's export figures may therefore end up worse than the Government's estimated contraction of 2 to 4 per cent this year - and could slide 4.5 to 5 per cent, Mr Song said.
Export figures to China did improve, as expected by economists. Mr Leong Wai Ho of Barclays Capital said this was helped by a backlog of shipments that finally went through due to the reopening of factories that had been shut for the Beijing Olympics.
Exports to China gained 11 per cent last month, reversing a 14 per cent fall in August. Electronics exports to the mainland grew 23 per cent after a 10 per cent contraction in August.
Shipments to Hong Kong and South Korea also recovered by expanding 2.8 per cent and 8.3 per cent respectively, reversing declines in August.
But Citigroup's Mr Kit Wei Zheng said in a report that 'despite the better performance in exports to some Asian markets, we doubt that this will be sustained'.
The trade-sensitive Republic eased its monetary policy last week to combat slowing growth. The shift to a neutral policy will help to keep export prices from appreciating, therefore making domestic exports more competitive.
However Mr Kit said this would provide only limited relief for exporters, given that import prices will be higher. [email protected]
</TR><!-- headline one : end --><TR>Sept drop not as steep as expected; analysts say weaker US, EU demand will drive down figures </TR><!-- Author --><TR><TD class="padlrt8 georgia11 darkgrey bold" colSpan=2>By Robin Chan
</TD></TR><!-- show image if available --><TR vAlign=bottom><TD width=330>
</TD><TD width=10>
Last month's decline in exports was driven by falling shipments in the once-vital electronics sector. -- PHOTOS: TOKYO SENPAKU KAISHA
</TD></TR></TBODY></TABLE>
<!-- START OF : div id="storytext"--><!-- more than 4 paragraphs -->
SINGAPORE'S exports have continued a dismal run by declining for a fifth straight month in September - although the slide was not as steep as expected.
<TABLE width=200 align=left valign="top"><TBODY><TR><TD class=padr8><!-- Vodcast --><!-- Background Story -->RELATED LINKS
<!-- Audio --><!-- Video --><!-- PDF -->
<!-- Photo Gallery -->
</TD></TR></TBODY></TABLE>Non-oil domestic exports fell 5.7 per cent last month from the same period last year, as shipments to the key markets of the United States and the European Union (EU) continued to weaken.
With the financial crisis spilling over to the real economy, analysts expect slowing global demand to continue to drive down Singapore's exports for the year.
Still, there were some positive signs amid the gloom. Exports fell less sharply than August's 13.9 per cent, and the result was markedly better than the 9.7 per cent decline economists had expected.
This was due in part to a slight rebound in pharmaceuticals and a solid recovery in exports to China.
Analysts, however, said the broader trend demonstrated an underlying weakness in exports with a continued broad-based contraction in exports across both Singapore's export markets and specific types of export products.
Singapore entered a technical recession last quarter, dragged down by slowing exports, after advanced economic output estimates released by the Government last week showed that the economy had shrunk for a second straight quarter in the three months ended Sept 30.
Last month's decline in exports was driven again by falling shipments in the once-vital electronics sector. They slid by 10.7 per cent in the 17th consecutive month of decline, according to the latest report from trade promotion board IE Singapore.
The weakness in electronics exports was largely due to lower sales of consumer electronics, telecommunications equipment and disk drives, IE said.
Non-electronic exports also fell 1.9 per cent, less than August's 9.7 per cent decline, because of reduced demand for pharmaceuticals, disk media products and machinery.
Analysts have been watching closely the health of shipments to the key EU and US markets. Last month, both declined 24 per cent following a 27 per cent and 30 per cent decline in August respectively, because of lower demand for both electronics and non-electronic exports.
CIMB-GK economist Song Seng Wun said US and EU demand will take a big hit in the coming months as the financial crisis tightens its grip, placing more downward pressure on export numbers.
The US and EU countries are facing a severe economic recession as policymakers have now turned their attention to addressing slowing growth after a coordinated rescue of the financial system.
Singapore's export figures may therefore end up worse than the Government's estimated contraction of 2 to 4 per cent this year - and could slide 4.5 to 5 per cent, Mr Song said.
Export figures to China did improve, as expected by economists. Mr Leong Wai Ho of Barclays Capital said this was helped by a backlog of shipments that finally went through due to the reopening of factories that had been shut for the Beijing Olympics.
Exports to China gained 11 per cent last month, reversing a 14 per cent fall in August. Electronics exports to the mainland grew 23 per cent after a 10 per cent contraction in August.
Shipments to Hong Kong and South Korea also recovered by expanding 2.8 per cent and 8.3 per cent respectively, reversing declines in August.
But Citigroup's Mr Kit Wei Zheng said in a report that 'despite the better performance in exports to some Asian markets, we doubt that this will be sustained'.
The trade-sensitive Republic eased its monetary policy last week to combat slowing growth. The shift to a neutral policy will help to keep export prices from appreciating, therefore making domestic exports more competitive.
However Mr Kit said this would provide only limited relief for exporters, given that import prices will be higher. [email protected]
