Singapore’s exports to Hong Kong plunged 29.2% in July

It’s the 10th straight month of decline.

Recently-released trade statistics brought no good news for domestic exporters, as non-oil domestic exports (NODX) contracted 3.3% in July. Alarmingly, shipments to Hong Kong continued its steep decline for the 10th consecutive month in July, plunging 29.2% year on year. 

This follow’s June’s equally dismal performance, which saw a year-on-year decline of 28.3%. According to a report by Maybank Kim Eng, this was primarily due to lower exports of non-electronic items, which slid 32.7% yoy in July after a 40.5% contraction in June.

Other countries that reported weaker NODX shipments were Indonesia, which declined by 12.6% yoy in July, along with Japan with a 10.1% contraction. The report also noted that the softer figures to Muslim majority Indonesia and Malaysia coincided with the fasting month of Ramadan which may have been a contributory factor.

“All said, the disappointing decline in exports –notably NODX – underscores the structural challenges affecting exporters, namely demographic and labour market dynamics (ageing population; stricter rules on hiring foreign workers); as well as rising business and labour costs amid slowing productivity that is adversely affecting competitiveness amid the continued policy of gradual SGD appreciation,” the report concluded.