Singapore's Non-Oil Domestic Exports Growth Beats Expectations -- Update

Singapore's non-oil domestic exports (NODX) growth has exceeded expectations in recent months, driven by robust demand and a diversified economy. The city-state's NODX grew by around 1.0% in 2024, following a modest expansion of around 1.0% in 2023. This growth rate is modest compared to the previous year's expansion of around 1.0%. While the external environment is generally supportive of growth, uncertainties in the global economy such as a more challenging and competitive trade environment could weigh on global trade and growth, which might have contributed to the modest growth in NODX.



The primary factors driving Singapore's NODX growth in 2025 are:

1. Global Electronics Demand: The upswing in global electronics demand is expected to fuel steady growth in key Southeast Asian economies, including Singapore. This increased demand for electronics will likely boost NODX growth in Singapore, as the country is a significant player in the global electronics industry.
2. Robust External Demand: Singapore's manufacturing products and general services are in high demand in Asia and the Asia-Pacific region. This resilient external demand is a key driver for NODX growth. The local business sector, particularly the construction industry, is expected to contribute to this growth, thanks to expanding projects in the public and private sectors.
3. Investment Climate: Successive Singaporean governments have shown commitment to fiscal policies that support investment initiatives and public spending, driving economic growth. The Island enhances business efficiency with public infrastructure, business-friendly regulatory frameworks, intellectual property protection, and efficient customs processes. This favorable investment climate attracts foreign direct investment (FDI), which in turn boosts NODX growth.
4. Diversified Economy and Skilled Workforce: Singapore has established industries and emerging fields like agritech, medtech, sustainability, and clean energy that contribute to economic diversification. The nation's foreign talents, making up about 36 percent of its workforce, and local talents skilled in various industries, also support NODX growth by driving innovation and productivity.

These factors, combined with the supportive external environment, are expected to contribute to Singapore's NODX growth of 1.0-3.0% in 2025, following a modest expansion of around 1.0% in 2024.



In conclusion, Singapore's NODX growth has beaten expectations in recent months, driven by robust demand and a diversified economy. The city-state's NODX growth is expected to continue in 2025, supported by global electronics demand, robust external demand, a favorable investment climate, and a skilled workforce. Despite uncertainties in the global economy, Singapore's NODX growth is poised to remain resilient, contributing to the country's overall economic growth.