Singapore exports to boom as Asian economies soar: HSBC

Asian countries will be the largest trade partners.

Singapore's flagging exports will find a firmer footing on back of the expected recovery in Asian economies and the completion of a number of trade agreements,

According to HSBC's Trade Forecast report, Singapore’s exports for 2015-2020 are forecasted to grow by 3.9% per year globally and 5% per annum within Asia, excluding Japan.

The forecast is significantly higher than Singapore’s recent export growth of 1.1% over 2013 and 2014.

HSBC Trade Forecast expects that Singapore’s export rebound over the next five years will be
propelled by the economic and trade rejuvenation of emerging markets within Asia and specifically Singapore’s key business corridors - China, Malaysia and Indonesia.

The report highlights that China replaced Malaysia as Singapore’s top destination for exports in 2014 and that Vietnam will emerge as a top five export partner for Singapore over the next 15 years, replacing the US.

“While a short term trade boost is expected from the increasingly robust US economy, and cyclical upturns in Europe and Japan, the demographic trends in Asian emerging markets are
likely to be the trade kicker from 2017 onwards – and Singapore is set to benefit,” said Joe Arena, HSBC Singapore’s Head of Global Trade and Receivables Finance.