NODX decline narrows to 9.6% in Q3

It is projected to further slide between 10% to 9.5%.

The continuous decline in NODX has narrowed to 9.6% YoY in Q3, following the 14.7% dip in Q2, according to data from Enterprise Singapore. This was blamed on decreased shipments of both electronic and non-electronic products.

Also read: NODX decline widens to 12.3% in October

Domestic exports of electronic products contracted 25% YoY in Q3 as ICs, PCs and disk media products slid by 29%, 32.8% and 16.8%, respectively. Non-electronic products’ domestic exports also declined by 3.9% YoY over the same period, dragged down by pharmaceuticals (-27.7% YoY), petrochemicals (-13.9% YoY) and primary chemicals (-27.6% YoY).

NODX to all top markets, except China, also dropped over the same period. Japan led with a -32.6% contraction, followed by Hong Kong (-22.9%) and Malaysia (-18.4%).

Meanwhile, total merchandise trade also fell 6.7% YoY, a broader figure compared to the 2.2% slip in the previous quarter. Oil trade contracted by 19% in Q3 amidst lower oil prices than a year ago, following the 7.6% decline in Q2. Non-oil trade also decreased by 3.5% in Q3 from the previous quarter’s 0.7% decline. On a QoQ basis, total merchandise trade dipped 2.2%.

With exports unlikely to recover by the end of the year, Enterprise Singapore has adjusted its forecasts for year-end the total merchandise trade between -4.5% to -4%, and NODX to between -10% and -9.5%, respectively. For 2020, growth projections fall between 0% to 2% for both.

Furthermore, non-oil exports (NOX), including both NODX and NORX, slid 4.5% YoY in the same quarter, following the preceding quarter’s 4.3% decrease. Non-oil re-exports (NORX) have reversed its six consecutive quarters of growth to 1.3% YoY decline, attributed to the lower shipment of both electronic and non-electronic re-exports.

Oil domestic exports’ further worsened as it contracted by 19.7% YoY in Q3 from the 2.9% slip in the previous quarter.