Singapore to benefit from synchronized growth from advanced economies

Guess who wins from exports of manufactured goods.

In a research note, CIMB analyst Jason Todd said that the world’s major economies appear to have entered a synchronised, but in all likelihood modest, growth upswing. Expect this to drive further outperformance by Asian cyclicals, which still have significant cushion for growth disappointment but little upside for growth surprise built into valuations, he added.

CIMB have identified manufactured goods that will benefit from a synchronised pick- up in growth from the advanced economies.

Singapore's electronic goods and chemicals to largely benefit.

Here's from CIMB

 In electronic goods, Singapore, Taiwan, Malaysia, the Philippines and Thailand will all benefit from a pick-up in demand in the advanced economies. However, they will also be competing against Chinese producers in these m
arkets. China is a large exporter of computer software, electronic parts and household entertainment equipment. However, growing household wealth also means that the market for these products is becoming larger

 In autos, Thailand (US$24bn) and India (US$10bn) will benefit from stronger growth in the advanced economies but they will also benefit from increasing import penetration into China.
 In chemicals, both Thailand and India are significant exporters along with Singapore and these countries will benefit from stronger growth in the advanced economies. China is also a significant exporter of chemicals and
this could add to competition in the markets of the advanced economies.
 In clothing and textiles, Indonesia and Vietnam are significant exporters and they will benefit from stronger growth in the US, Germany and Japan.
 In steel, India, South Korea and Taiwan are the largest regional exporters but in the US and German markets they compete with China. More positively, China is also a significant importer of iron and steel and its growth prospects may impact Indian, South Korean and Taiwanese exports.