Singapore: Merchandise trade surplus decreases in December
Latest reading: In December, the trade balance was USD +1.7 billion, following a USD +5.9 billion reading in the prior month. Over the last 12 months, the trade balance summed to USD +62.3 billion.
Non-oil domestic exports (NODX) rose 6.1% in year-on-year terms in December, down from a 11.5% expansion in the previous month. December’s reading was below market expectations.
The year-on-year deceleration was driven by softer growth in non-electronic shipments. That said, electronic products exports surged on the back of booming AI demand. Across key export markets, NODX continued to post double-digit year-on-year growth to Taiwan and South Korea, while shipments to the U.S., Japan and the euro area contracted.
In seasonally adjusted month-on-month terms, NODX dropped -9.3% in December, following November’s 7.1% rise.
Panelist insight: Commenting on the outlook, EIU analysts stated:
“We expect electronics exports to continue to outperform in the first half of 2026, supported by the persistence of robust AI-related demand. Rising memory chip prices, reflecting supply constraints, will benefit Singapore’s semiconductor industry, given the city state’s role as a critical node in the global chip value chain. Further tailwinds will come from government investment in AI-focused research and development and manufacturing.”