S'pore May exports suffer unexpected 2 digit fall

Expert said a pickup in exports won't be imminent...

Singapore's May non-oil exports unexpectedly fell 9.8% after seasonal adjustments from April, the sharpest fall since January 2006, providing new evidence that a global slowdown may be weighing on Asian exports. May's fall amid weaker annual electronics and drugs shipments compared with market expectations for a 1.1% rise, and followed a 1.6% gain in April when shipments unexpectedly rose. Non-oil exports in May fell 10.5% from a year earlier to $12.4 billion.

Manufacturers across Asia face easing demand amid slowing growth in the US, the region's largest overseas market. Singapore's trade promotion agency last month lowered its forecast for export growth this year to a range of 2% to 4%, from an earlier estimate of 4% to 6%.

The Singapore economy is heavily dependent on trade, and non-oil domestic exports were worth about 70% of its gross domestic product last year. Economists had expected monthly exports in May to rise slightly as higher petrochemical and drug shipments offset persistent weakness in electronic goods.May's electronics shipments fell 8.5% from a year ago while drugs exports dropped 48.5% in the same period. Petrochemicals slipped 2.6% too.