18 AUG 2017: Economy and SME Financing News
Following IE Singapore’s ‘Review of 2Q 2017 Trade Performance’ data released on 11 Aug, the latest media release on 17 Aug showed that Singapore’s non-oil domestic exports (NODX) expanded 8.5% yoy in July, propelled by a sustained strength in the exports of electronic products. The NODX growth for July was less than a revised 8.8% yoy growth for June. The domestic exports of electronic products comprised of 28.8% of NODX in 1H 2017, and it grew 16.3% yoy in July, which was marginally more than triple the previous month’s yoy growth rate of 5.4%. This was the ninth consecutive month of growth for the electronics NODX. The key drivers for the electronic products growth were integrated chips, PC parts and disk media products which grew by 31.0%, 9.9% and 5.9% respectively. Correspondingly, the domestic exports of non-electronic products comprised of 71.2% of NODX in 1H 2017, and it grew 5.2% on a yoy basis in July 2017, about halving its yoy growth rate of 10.1% of the previous month. The key drivers for the non-electronic products were specialised machinery, petrochemicals and non-electric engines & motors, which grew by 82.1%, 38.3% and 35.3% respectively. As the decrease in non-electronic NODX dominated the increase in electronic NODX, this meant that on a month-to-month seasonally adjusted basis, NODX fell 2.5% in July, which followed the previous month’s 2.2% fall. In actual value terms, NODX was S$14.2 billion in July vs S$14.6 billion in June. NODX to most of Singapore’s top 10 markets grew in July, except for the US and the European Union. The key drivers to the NODX growth were China (+20.9%), Thailand (+55.3%) and South Korea (+45.3%). The general consensus from economists reported in the media seemed to be mixed on the strength of the growth outlook for Singapore for the rest of 2017. The positives were the continuing robustness of the electronic and semiconductor shipments and a generally rosy external demand environment while the negatives were an expected end to the current electronics cycle, slowdown in China and patchy growth in the non-electronics exports which still accounts for the majority of NODX.
The relevant report can be found at the website of the International Enterprise (IE) Singapore
The NODX numbers for July indicated that our trade performance has been growing. Are these better times for your SME? Is your SME enjoying the uplift and preparing for more orders for the rest of the year? Certainly, we hope that is the case for you. Or maybe you are experiencing cash flow issues and now looking into the available financing options, e.g. working capital loan or invoice financing/factoring. Do let us know and we will be most happy to talk about what works for your SME.
At IFS Capital Limited, we understand that all businesses are different in their needs and characteristics. That is why we are happy to explore financing options that meet the unique needs of your SME.
Why not drop us a note by clicking this form here and we can discuss this in further detail with you.
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