Market AnalysisJul 17, 20262 Min

Singapore’s non-oil exports jump 20.7% in June: What do these numbers mean for the economy?

Singapore on Friday announced that its non-oil domestic exports rose 20.7% year-on-year in June.

Though a significant growth number, it slowed sharply from a 20-year high of 38.4% annual increase seen in the previous month of May.

Markets were also disappointed as the June export growth number missed the forecast of 28-30% growth as was pegged by analysts.

However, the bright spot was Singapore’s merchandise trade surplus widening to its highest level in over a year in June.

According to data released by Statistics Singapore and Enterprise Singapore on Friday, the merchandise trade surplus widened to SG$13.8 billion in June, its highest level since April 2025. In May, trade surplus stood at a lower SG$5.57 billion despite stronger export growth..

Electronics exports

Keeping up with the trend of 2026, Singapore’s export engine was mainly fuelled by the AI and electronics space in June as well.

Enterprise Singapore said robust demand for integrated circuits, disk media products, and personal computers, supported by continued investment in artificial intelligence (AI) aided exports.

Shipments rose to all of Singapore’s top 10 markets, led by Taiwan, the US and South Korea. In fact, electronics exports to Taiwan surged by a whopping 278.2% year-on-year in June, while those to the US jumped 228.9%.

For the first half of calendar year 2026, Singapore’s non-oil domestic exports expanded 18.6%.

However, this also highlights the widening gap between the oil and non-oil export segments of Singapore’s trade base.

Even as electronics exports continued to surge, non-electronics exports entered the negative territory in June with a 2.9% year-on-year drop compared with May’s 17.7% growth.

Data showed that non-monetary gold led the decline, falling 49%, while food preparations fell 38.6% and petrochemicals slipped 27.9%.

Experts fear that concentration of export growth in the electronics segment makes Singapore’s trade recovery look narrow, lacking broad-based external demand strength.

Will export growth support GDP?

June’s export numbers bring Singapore’s economic growth figures back into the spotlight. Preliminary numbers released earlier in the week showed that the country’s economy grew 5.7% year-on-year in the second quarter.

The latest trade figures reinforce expectations that Singapore’s economy could exceed the government’s growth forecast of 2-4% for 2026.

Analysts believe that growth in electronic exports is expected to support Singapore’s manufacturing sector and offset the slowdown seen in other industries amid geopolitical uncertainties.