Singapore's June non-oil exports rise 20.7% as AI demand stays robust

Electronic NODX surged by 105.1 per cent in June.

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SINGAPORE: Singapore’s non-oil domestic exports (NODX) rose by 20.7 per cent in June from a year earlier as AI-related demand remained robust, Enterprise Singapore (EnterpriseSG) said on Friday (Jul 17). 

The growth moderated from the 38.4 per cent expansion in May. 

Electronics exports led the expansion, with electronic NODX surging by 105.1 per cent in June, following a 94.8 per cent increase in May. 

The surge was largely fuelled by “robust AI-related demand” and driven mainly by integrated circuits, disk media products and PCs, said EnterpriseSG.

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Exports of integrated circuits rose by 115.4 per cent year on year, while shipments of disk media products and PCs increased by 170.9 per cent and 95.8 per cent respectively. 

Ms Selena Ling, chief economist and head of OCBC Group Research, said global AI-related demand continued to support electronics exports, describing June's growth as the strongest since 1998. 

Non-electronic exports dipped by 2.9 per cent in June, following May’s 17.7 per cent increase. 

Falls in exports of non-monetary gold, petrochemicals and food preparations led the decrease. 

Ms Ling attributed the dip mainly to broad-based weaknesses in the sectors.

"This meant that the resilient June NODX was single-handedly powered by electronics exports due to the AI boom," she added. 

Non-oil re-exports rose by 60.3 per cent in June, extending May’s 33.5 per cent increase. The growth was also primarily driven by electronics. 

Total merchandise trade grew by 49.3 per cent in June, extending the 39.6 per cent rise in May. Total exports rose 48.9 per cent while imports grew 49.8 per cent.

Among key markets, NODX to Taiwan, the United States and South Korea rose in June.

Ms Ling noted that June's NODX for all top 10 markets rose, led by Taiwan which expanded at a triple-digit pace for the second straight month. 

"Even NDOX to Indonesia also recovered from a streak of contractions to eke out a 2.7 per cent expansion in June, suggesting some tentative stabilisation in import demand since it is concentrated in the non-electronics NODX," she said.

Total trade stood at S$158.1 billion (US$122.5 billion) in June, comprising S$85.5 billion in exports and S$72.6 billion in imports. 

Ms Ling said OCBC saw upside rise to Singapore's full-year 2026 NODX growth forecast of 6 per cent given its stellar performance in the first half of the year. 

"The global AI-investment momentum still appears to have some legs to run in the near-term notwithstanding the stock market jitters and gyrations," she said.

The NODX picture appears bright even if growth moderates in the second half of the year, she added.

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