Aggressive Malaysia threatens Singapore’s petroleum export dominance

Its contribution to total export growth will drop to 22%.

Singapore will face increasing competition from Malaysia as a source of refined petroleum products, according to a report released today by HSBC.

After contributing around 40% to total export growth in 2015-2020, HSBC expects that petroleum’s contribution to export growth will ease to around 22% between 2021-2030.

Meanwhile, industrial machinery is expected to remain as Singapore’s top export for the foreseeable future, contributing around 30% of the projected growth in total merchandise exports in the long term.

 as Singapore is expected to face increasing competition from Malaysia as a source of refined petroleum products. Singapore's position as key exporter of refined oil products means that the sector composition of imports closely mirrors that of exports. Consequently, petroleum products are expected to remain a major driver of import growth in the coming years
Industrial machinery is expected to remain as Singapore’s top export for the foreseeable future, contributing around 30% of the projected growth in total merchandise exports in the long term.
The government’s drive to incentivise firms to investment in labour saving technology and a 40% projected increase in infrastructure spending over the next five years will increase Singapore’s demand for industrial machinery and transport equipment, HSBC said.
“Indeed, by contributing more than 25% per year to total export growth between now and 2030, industrial machinery will not only be the fastest source of import growth but also be Singapore’s top merchandise import, replacing petroleum products by 2030,” said the report.