S'pore's key exports recover in February but economists warn of tariff risks ahead

Singapore's key exports recovered in February after a Chinese New Year (CNY)-related contraction in January, but economists warned that trade could start to feel the pain of US tariffs and their economic fallout towards the second half of 2025.

- Timothy Goh

Non-oil domestic exports (Nodx) rose 7.6 per cent year on year in February, reversing a 2.1 per cent drop in the previous month, according to figures released by trade agency Enterprise Singapore (EnterpriseSG) on March 17.

The increase was less than the 8.3 per cent expansion forecast by economists in a Reuters poll.

To smoothen out the impact from CNY falling on different months, the agency noted that Nodx grew 2.3 per cent in aggregate over January and February.

On a seasonally adjusted monthly basis, Nodx increased 4.5 per cent in February, after a revised 3.3 per cent decrease in January.

Key electronics shipments rose by 6.9 per cent year on year in February, building on the 9.5 per cent rise in January. Growth was underpinned by disc media products, integrated circuits and personal computers.

DBS Bank senior economist Chua Han Teng said that global trade uncertainty could eventually hurt trade-dependent economies like Singapore, but demand for the Republic's manufactured goods, including electronics, is expected to remain positive for the near-term.

"This is supported by a global tech upcycle and a continued expansion of new export orders in the purchasing managers' index (PMI) for February," he added.