Northeast Asia is the bottleneck to Singapore’s NODX, say analysts

NODX to China plunged by 8.7%.

The city-state has hit a barricade in its non-oil domestic exports in the form of Northeast Asia, headlined by plummeting exports in China. This was due to falling shipments of pumps, specialised machinery, and disk media products.

According to analysts from Maybank Kim Eng, Singapore experienced lower shipments to eight out of twelve major NODX destinations.

“The other two countries which pulled down headline numbers were Taiwan where exports fell by -16.2% YoY (Sep 2015: -5.2% YoY) on account of electronic related ICs (-37.8% YoY) and parts of ICS (-71.85 YoY) followed by South Korea (Oct 2015: -18.6% YoY; Sep 2015: -10.4% YoY),” Maybank Kim Eng said.

Meanwhile, Maybank Kim Eng warns that while global manufacturing indicators modestly improve, outlook still remains bleak.

“Global manufacturing indicators modestly improve but outlook remains gloomy Global manufacturing PMI for Oct 2015 reported a slight uptick to 51.4 from 50.7 in Sep 2015 driven by improvements in major developed countries to counter the weakness in the large emerging markets and Asian economies,” Maybank Kim Eng said.