Singapore’s electronics exports soar amid China’s anti-tariff chips strategy

As exports reach their highest level in years, economists note market talk of China ‘front-loading chips’ in anticipation of US tariffs

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Vessels are seen docked at a container port terminal in Singapore. Photo: AFP

Published: 1:01pm, 17 Sep 2024Updated: 3:37pm, 25 Sep 2024

Singapore’s electronics shipments gained the most since 2010, fuelled by overseas sales of integrated circuits and disk media products, as the global tech boom is proving a boon to the city state.

Electronics exports rose 35.1 per cent in August from a year earlier, following a revised increase of 16.8 per cent the previous month, according to data released by Enterprise Singapore on Tuesday. That was the fastest growth since June 2010.

There is market talk that China is front-loading chips in anticipation of potential trade tariffs from the US

Selena Ling, Oversea-Chinese Banking Corp chief economist

The robust performance of electronics is providing the momentum for Singapore to meet, if not surpass, its gross domestic product forecast of growing at the upper half of its 1 to 3 per cent projected band.

The city state is home to some of the largest chip manufacturing plants in Southeast Asia.

Singapore and the broader Southeast Asia region are benefiting as companies diversify their tech supply chains beyond mainland China and Taiwan to reduce risks related to tensions between Beijing and Washington.

“Many uncertainties remain” about the impact of US trade tariffs directed at China, economists say. Photo: Reuters

“There is market talk that China is front-loading chips in anticipation of potential trade tariffs from the US that are targeted at China,” Selena Ling, chief economist at Oversea-Chinese Banking Corp Lt, wrote in a note.