Surprise 3.5% drop in Singapore exports in May as shipments to US plunge

Front-loading of orders that propped up exports in April has cooled, say analysts

- Sue-Ann Tan

Singapore's trade outlook has darkened with key exports suffering a surprise drop in May, led by a 20.6 per cent plunge in shipments to the United States.

Analysts said this suggests that the front-loading of orders that propped up exports in April has cooled, and the trade outlook remains rife with tariff uncertainty.

Total non-oil domestic exports (Nodx) slid 3.5 per cent year on year, reversing a 12.4 per cent rise in April, data from Enterprise Singapore (EnterpriseSG) on June 17 showed.

While electronics exports grew in May, non-electronics shipments declined.

Analysts polled by Reuters had forecast May key exports to rise by 8 per cent. Expectations were that the front-loading of export orders would continue while a 90-day tariff truce with the Trump administration lasted.

RHB group chief economist Barnabas Gan said: "Despite the 90-day tariff pause, a further slowdown is expected in the coming months as global demand eases and (because of) weakening consumer spending ahead of heavier US tariffs taking effect in the second half of 2025."

He added that the ongoing uncertainty may continue to pressure Singapore's trade performance in the months ahead, particularly once the tariff pause expires on July 8.

"In addition, slowing growth in major economies and intensifying trade frictions also present significant downside risks to the city-state's trade and economic outlook, reinforcing a more cautious stance on the manufacturing sector," he said, forecasting Nodx to remain flat in 2025.