The decline in electronics is seen as one of the culprits.
Despite a 6% expansion in June, the exports industry showed signs of decline this month.
Moody’s Analytics points to the global semiconductor shortage as one of the main factors for this decline. There is demand, but still supply is yet to grow as well. It is because of this that electronics face a decline.
Additional disruptions include the rise of COVID-19 cases in Asia. Lockdowns and tighter travel mean the closing of factories and delayed shipments. China’s zero-tolerance approach towards new infections also increases the number of movement controls that are done in response to the pandemic.
Non-oil domestic exports also faced a lower growth at 12.7% year-on-year, compared to 19 June.
However, Singapore continues to show improvement in Purchasing Managers' Index data with a slight uptick from 50.8% in June to 51 in July. This is the strongest reading since 2018, but in spite of this, supplier delivery times legenthend from June to July, with electronics following suit.