Singapore’s exports are likely to remain anaemic for some months as the export recovery has probably peaked and inventory restocking was mostly completed in 2010, Standard Chartered Bank economist Alvin Liew says in a note after government data show Singapore’s December export growth slows to 9.4% on year, compared with November’s 9.9% rise.

The result is below the 10.5% forecast in a Dow Jones poll of 10 economists, due to a decline in electronics, computer hardware and pharmaceuticals shipments. Liew expects the electronics “contraction could get worse in the coming months as the base effect turns unfavourable, on top of weaker external demand and the drying-up of support from inventory rebuilding.” 

 

The electronics sector’s December exports fell 1.1% on-year, compared with November’s 10.8% rise. Liew adds, the highly volatile pharmaceuticals exports will remain the “wild card,” after the sector contracts for a second straight month, falling 2.8% on year after declining 34.2% in November, the data show.