S'pore GDP growth remains strong in Q3, up 9.4% year-on-year

Oct 10, 2007 - The Singapore economy continued to register strong growth in the third quarter of 2007.

Advance estimates showed that real gross domestic product (GDP) rose by 9.4 per cent on a year-on-year basis, up from 8.7 per cent in the previous quarter.

The data indicated that the economy is well on track to meet the government's forecast of seven to eight per cent growth for the year.

On a quarter-on-quarter annualised basis, real GDP growth decelerated to 6.4 per cent from 14.4 per cent in the second quarter.

The advance estimate, based largely on data from July and August, gives an early indication of the economy's performance in the third quarter.

Singapore Manufacturing Posts Robust Growth In August

Sep 26, 2007 - Singapore's manufacturing output grew 13.8% on an annual basis in August, the Economic Development Board, EDB, said Wednesday. Economists were looking for a growth of 15%. Factory output growth in August was slower than the 22.1% jump in manufacturing output in the previous month. Manufacturing growth in July was initially estimated at 21.6%.

Manufacturing output slumped a seasonally adjusted 13.7% month-on-month in August, after soaring 25.5% in the preceding month. Manufacturing output climbed 9.3% annually in the first eight months of the year. The three-month moving average index for manufacturing output expanded 8.7%.

The bio-medical cluster output soared 49.4% in annual terms in August. Production in the pharmaceutical segment surged 52.6%, buoyed by production of higher value added pharmaceutical ingredients. Medical technology output climbed 28.6% led by export demand. Pharmaceutical exports jumped an astonishing 105.8% in August.

The transport engineering cluster production gained 19.5% on an annual basis in August. Output of local shipyards shot up 36.6%, pushed by completion of prior contracts for shipbuilding, ship repairing and production of oilrigs. The land transport segment expanded 25.7%. In contrast, the aerospace segment declined 5.2%, due to base year effects, the EDB said.

The chemicals cluster production advanced 6.4% year-on-year in August, buoyed by the 27.7% annual surge in production of petrochemicals, mainly due to base year effects, the EDB noted. Production of petroleum products gained 1.5%.

The electronics cluster grew 5.6% annually in August. Production of semiconductors increased 8.6%, while the data storage segment advanced 5% reversing the prior month's decline in output. The infocomms and consumer electronics segment expanded 7.6% propelled by higher production of mobile products and PCs.

The precision engineering cluster eased an annual 4% in August, pulled down by the 7.4% decline in precision modules and components. This was partially offset by the 1.3% growth in machinery and systems sector.

Output of the general manufacturing industries expanded at an annual rate of 7.8% in August. Production of food, beverages and tobacco products jumped 9%, while output of printed products rose 4.8%.

Singapore Annual CPI Growth Accelerates In August

Sep 24, 2007 - Singapore's consumer prices rose in August at the fastest pace in more than 12 years, suggesting the central bank will maintain a policy of allowing its currency to appreciate to damp inflation.

The consumer price index increased 2.9 percent from a year earlier, after gaining 2.6 percent in July, the Department of Statistics said today. That was the quickest pace since December 1994 and exceeded the 2.8 percent expected by economists. Prices rose 0.3 percent from July.

The central bank last month raised its forecast for inflation this year after prices gained the most in more than a decade in July following an increase in the goods and services tax, or GST. The Monetary Authority of Singapore, which has sought a 'gradual and modest' strengthening in the currency since April 2004, will review its policy next month.

"Inflation pressures have increased with oil prices reaching record levels and the higher GST rate," said Vishnu Varathan, an economist at Forecast Singapore. "I don't see the MAS stepping away from its policy for an appreciation in the Singapore dollar anytime soon."

The currency has gained 1.9 percent this year. It rose 0.2 percent to S$1.5047 against the U.S. dollar as of 1:02 p.m. local time from S$1.5071 on Sept. 21.

The central bank expects inflation in 2007 to be between 1 percent and 2 percent, it said on Aug. 27, up from a previous range of 0.5 percent to 1.5 percent. Consumer prices may rise as much as 2 percent next year.

Sales Tax

The government raised the goods and services tax by 2 percentage points to 7 percent on July 1 to make up for a revenue shortfall after corporate tax rates were reduced. The tax increase will add between 0.4 percent and 0.6 percent to consumer prices this year and next, the central bank has said.

Food prices, which make up 23 percent of the index, rose 3.3 percent in August from a year ago, following July's 2.9 percent increase. From July, food prices gained 0.4 percent.

Transport and communication costs, the second-biggest component at 22 percent of the index, climbed 3.4 percent in August from a year earlier. From July, transport and communication prices rose 0.5 percent.

Transport costs are likely to gain further in coming months. Fares for bus journeys will be raised from October, while oil prices above $80 a barrel will increase fuel costs for automobile owners.

Housing, Power

Housing costs, the third-largest component of the consumer price index, climbed 1.1 percent from a year ago, after a 0.7 percent gain in July, today's report showed. From a month ago, housing prices rose 0.2 percent amid higher rental costs.

Singapore Power, the island's biggest power company, raised electricity tariffs for the July to September quarter by an average 8.8 percent, citing higher oil prices. It reviews rates every three months.

Recreation costs, which include holiday travel, gained 4.4 percent in August from a year ago and rose 0.3 percent from the previous month. Prices of clothing and footwear gained 0.8 percent from a year earlier and increased 1.5 percent from July.

Singapore's non-oil exports up 10.9% in August on-year

Sep 17, 2007 - Singapore's key exports rose 10.9 percent in August on-year, boosted by increased shipments of pharmaceuticals which tempered a sustained decline in electronics, the government said on Monday.

The increase in non-oil domestic exports (NODX) for the fourth straight month was in the upper range of analysts' forecasts and double the 5.4 percent growth registered in July, the trade promotion body, International Enterprise Singapore, said.

NODX for August totalled S$15.16 billion (US$10.04 billion), IE Singapore said.

Exports of pharmaceuticals surged 105.8 percent from the same period last year to S$2.07 billion, it said.

This offset a 1.3 percent decrease in electronics exports to S$6.43 billion.

IE Singapore said it was the seventh consecutive month of decline for electronics, which is dependent on global demand.

Except for consumer electronics exports which climbed 35.6 percent, four other key electronics products posted declines, led by telecommunications equipment which fell 39.2 percent.

Shipments of disc drives dropped 26.3 percent, integrated circuits were down 5.2 percent and computer parts contracted 6.5 percent, IE Singapore said.

On a month-on-month seasonally adjusted basis, NODX expanded 2.1 percent, faster than the 0.5 percent rise in July, it said.

Total trade was up 0.7 percent to S$72.43 billion, but this was slower than the 6.2 percent expansion in July, the agency said.

Exports totalled S$38.87 billion, up 2.6 percent, while imports shrank 1.4 percent to S$33.56 billion.

NODX is a closely watched measure of the health of Singapore's trade-reliant economy, which is tipped by the government to grow between 7.0 and 8.0 percent this year after expanding 7.9 percent in 2006.

July retail sales index down 14.7% from June

Sep 14, 2007 - After reporting strong growth in June, overall retail sales fell by 14.7 per cent to S$2,574.1 million in July, reflecting weaker motor vehicle sales, according to the Department of Statistics.

Excluding motor vehicles, the July index declined by 8.2 per cent.

The fall in motor vehicle sales and sales of other large items followed strong growth in the previous month boosted by pre-GST increase spending and the Great Singapore Sale.

Economists had predicted a 3.6% rise in sales from a year earlier based on the thriving economy and consumer confidence.

The July index dropped 1.7% from a year ago, compared to a 9% gain in June.

Sales of motor vehicles, jewellery, furniture and other goods in July declined by 14.2 per cent to 27.8 per cent.

After seasonal adjustment, retail sales fell by 14.6 per cent in July year-on-year

Singapore July CPI up 2.6 pct yr-on-yr on consumer tax hike

Aug 23, 2007 - Singapore's consumer price index rose 2.6 percent from a year earlier in July after the government raised the tax on goods and services to seven percent from five percent effective July 1, the Department of Statistics said Thursday.

Compared to June, CPI was up 2.1 percent, it said.

Consumer prices rose due to higher costs of healthcare services, recreation, food,

transportation and communications, the statistics agency said. The cost of housing also edged higher, reflecting rising rents, electricity tariffs and maintenance costs, it said.

In the seven months to July, CPI was up one percent compared to the year-ago level, in line with government estimates.

Singapore's Q2 GDP growth at 8.6% year-on-year, 14% quarter-on-quarter

Aug 10, 2007 - The economy has picked up pace in the second quarter, with GDP expanding by 8.6 per cent year-on-year following 6.4 per cent in the previous quarter, according to data released by the Ministry of Trade and Industry on Friday.

Growth on a seasonally-adjusted quarter-on-quarter annualised basis increased to 14 per cent from 8.8 per cent in the first quarter.

Overall, the Singapore economy grew by 7.6 per cent in the first half of 2007.

Riding on the momentum of the second quarter and supported by a favourable external environment and broad-based growth across the major sectors, the economy is expected to grow by 7.0-8.0 per cent in 2007.

The previous full-year growth target was 5.0-7.0 per cent.

The improved outlook for 2007 reflects higher growth in financial and business services, manufacturing, and construction.

The driving factors underpinning the higher growth forecast are broad-based: strong global demand in the biomedical, aerospace and marine industries, robust regional demand for financial services, and a buoyant domestic property market.

Data for the second quarter showed growth being more broad-based, with the financial services and construction sectors registering double-digit growth, and the manufacturing sector remaining healthy despite a slowdown in electronics.

Financial services expanded by 17 per cent in the second quarter, up from 14 per cent growth in the first quarter, while the construction sector grew by 18 per cent, the strongest growth in almost 10 years.

Growth in the manufacturing sector picked up pace to 8.3 per cent, with strong growth in biomedical manufacturing and transport engineering more than making up for the slack in electronics.

The Ministry of Trade and Industry also raised the full-year GDP growth forecast for 2007 from 5.0-7.0 per cent to 7.0-8.0 per cent, due to a healthy external environment, and continued growth in the composite leading index and strong business expectations. Both manufacturing and services firms expect better business conditions in the coming half of the year.