Singapore's Export Slump Eases in May

The slump in Singapore’s non-oil exports eased in May, suggesting the most important sector of the city-state’s economy is stabilizing.

Exports fell 12 percent in May from the same month of 2008 to 10.9 billion Singapore dollars ($7.5 billion) following a 19 percent drop in April, according to Trade and Industry Ministry figures released Wednesday. Compared to April, exports rose a seasonally adjusted 5.6 percent.

“The picture is getting more positive, but we’re not seeing a sharp recovery,” said Irvin Seah, an economist with DBS bank in Singapore.

“The Singapore economy took a very harsh battering, and it will take time to heal,” he said.

The island’s economy has contracted each of the last four quarters and the government expects the economy to shrink as much as 9 percent this year.

Seah said he expects the economy to grow 3 percent in the second quarter from the previous quarter while contracting 8 percent from a year earlier.

Non-oil exports, which have fallen 13 straight months, were equal to about 60 percent of gross domestic product last year.

Electronic products — which account for 36 percent of non-oil exports — fell 21 percent, petrochemicals dropped 37 percent while pharmaceuticals jumped 40 percent, the ministry said.

“We’re still seeing pockets of weakness, for example, in electronic sales,” Seah said “That’s because of global consumer demand, which remains quite sluggish.”

Oil exports, which account for 28 percent of total exports, fell 46 percent in May as prices plunged from a year ago.

Non-oil exports to Europe fell 10 percent, dropped 35 percent to the U.S. and slid 18 percent to China.

Non-oil imports fell 20 percent in May from the same month a year earlier after dropping 27 percent in April, the ministry said.

6/17/2009 5:06 AM ALEX KENNEDY Associated Press Writer SINGAPORE