Singapore’s electronics shipments surge to their highest level since 2010, propelled by robust sales of integrated circuits and disk media products abroad, amid a global tech boom—proving a boon for the nation.
According to data released by Enterprise Singapore, electronic exports soared 35.1% year-on-year in August, following a 16.8% increase in the previous month. This marks the fastest growth since June 2010, as reported by Free Malaysia Today.
The robust performance of electronic products is driving Singapore toward, if not surpassing, the forecasted gross domestic product growth in the upper half of the predicted 1%-3% range.
Singapore’s electronics exports have just experienced their strongest growth since mid-2010.
The nation hosts some of the largest chip factories in Southeast Asia. Singapore and, more broadly, the Southeast Asian region are benefiting as companies diversify their tech supply chains beyond mainland China and Taiwan, mitigating risks associated with tensions between Beijing and Washington.
Selena Ling, chief economist at Oversea-Chinese Banking Corp, noted that “there is market information that China is front-loading chip purchases in preparation for potential trade tariffs from the US aimed at China,” according to Bloomberg. “There is still much uncertainty due to the US-China standoff.”
Global tech firms have announced billions of dollars in new investments in the region this year, spurred by the demand for novel services such as generative artificial intelligence.
”Ensuring Singapore Remains an Attractive Investment Destination”
However, being trade-dependent, Singapore has reasons to be cautious. The country’s non-oil domestic exports rose 10.7%, lower than the 15% forecast in a Bloomberg News survey.
Compared to the previous month, overseas sales fell 4.7%, reversing a 12.2% growth in July.
In a statement posted on the website of the Ministry of Trade and Industry, Deputy Prime Minister and Minister Gan Kim Yong shared that the Economic Development Board (EDB) attracted S$1.7 billion (US$772 million) in Fixed Asset Investment (FAI) commitments in the first quarter of 2024.
Unless there are unforeseen circumstances, EDB expects to achieve mid- to long-term investment commitments of S$8-10 billion (up to US$7.7 billion) in FAI this year.
Singapore expects to attract up to US$7.7 billion in foreign capital this year.
“The global business and investment environment has become more challenging due to ongoing geopolitical tensions, heightened competition for investments, and macroeconomic uncertainties. Hence, we must continuously enhance our value proposition and investment toolkit to attract high-quality and high-value investments,” noted the Minister for Trade and Industry.
At the same time, Minister Gan Kim Yong affirmed, “To maintain Singapore’s competitive advantage as a knowledge-based and innovation-driven economy, we are doubling down on our strengths.”
The country is heavily investing in research and development and talent development. Additionally, it is building and strengthening new economic growth engines in areas such as artificial intelligence, the green economy, and precision medicine.
“These moves are part of our continuous and concerted efforts to ensure Singapore remains an attractive investment destination, generating good jobs for Singaporeans,” the Singapore government member stated.
In Seven Months, Vietnam’s Electronics Exports Reached Nearly US$40 Billion
For Vietnam, in July 2024 alone, the export value of computers, electronic products, and components reached US$5.9 billion, up 18.4% from the previous month.
The export value of this group of goods in the first seven months of 2024 reached US$39.59 billion, accounting for 17% of the country’s total export value and an increase of 29.1% (equivalent to an increase of US$8.93 billion) over the same period last year.
The export value of computers, electronic products, and components in the first seven months of 2024 reached US$39.59 billion, accounting for 17% of the total export value and a 29.1% increase (equivalent to US$8.93 billion) over the same period last year.
Exports of computers, electronic products, and components in the first seven months of 2024 went mainly to markets such as the United States, with US$13.19 billion, up 50.8%; China, with US$6.85 billion, down 9.2%; EU (27 countries), with US$5.45 billion, up 59.4%; Hong Kong, with US$4.51 billion, up 70.8%; and South Korea, with US$2.99 billion, up 15.8% over the same period last year.
