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Recent Economic Developments in Singapore

1 Sep 2010

2009 2010
Q3 Q4 Full Year Q1 Q2
Real Sector
Real GDP Growth, y-o-y % 1.8 3.8 -1.3 16.9 18.8
Real GDP Growth, q-o-q SAAR % 11.1 -1.0 - 45.7 24.0
Index of Industrial Production, y-o-y % 7.5 2.4 -4.2 38.1 46.2
Non-oil Domestic Exports, y-o-y % -7.8 8.2 -10.6 23.1 27.6
Labour Market and Prices
Unemployment Rate, SA, % (Average) 3.3 2.3 3.0 2.2 2.3
CPI Inflation, y-o-y % -0.3 -0.8 0.6 0.9 3.1
Wage Growth, y-o-y % -3.0 -1.6 -2.6 3.7 5.8

Highlights:

The Singapore economy continued on a robust expansion path

Domestic economic activity expanded by 24.0% q-o-q SAAR in Q2 2010, following a
record surge in the previous quarter. Growth was driven by the trade-related sectors,
particularly manufacturing, on the back of strong biomedical and electronics output.
Meanwhile, the services sector posted broad-based growth, led by tourism-related
activities.

Global growth will slow for the rest of this year

The G3 economies turned in a mixed performance in Q2 2010, while Asian
economies posted strong growth rates. Nonetheless, forward looking indicators, such
as Purchasing Managers’ Indices, point to a slowdown in the pace of global economic
activity in the second half of the year.

Singapore’s GDP growth is forecast to come in between 13% and 15% in 2010
After a strong and sustained recovery in Q2 2010 during which GDP surged by 24%
from its trough, the Singapore economy is expected to slow in the coming quarters,
alongside tepid growth in the G3 economies and some easing in Asian growth.

Headline CPI inflation is expected to average between 2.5% and 3.5% in 2010
Private road transport costs and global oil prices will remain the major contributors to
year-on-year CPI inflation for the rest of 2010. Other domestic sources of inflation
could also pick up as business costs increase.

____________________________
Note: Labour market statistics are obtained from the Ministry of Manpower, while trade and index of industrial production (IIP) data are
provided by IE Singapore and the EDB respectively. All other data in this document are obtained from the Building and Construction
Authority, Department of Statistics, Ministry of Trade and Industry, unless otherwise stated.
A. Macroeconomic Overview

G3 economies: A general slowdown in activity

The G3 economies turned in a mixed performance in Q2 2010. GDP growth was

weaker than expected in the US and Japan, although it unexpectedly strengthened
in the Eurozone.

In the US, GDP growth slowed to 1.6% q-o-q SAAR in Q2 2010, from 3.7% in the
preceding quarter. Continued expansion in personal consumption expenditure
(2.0% q-o-q SAAR) and more encouragingly, gross private domestic investment
including inventory accumulation (25% q-o-q SAAR), contributed to Q2 growth.
However, growth was weighed down by an acceleration in imports relative to
exports, which subtracted 3.4%-points from overall GDP growth.

In Japan, GDP growth decelerated Growth softened in the US and Japan but came
in better than expected in the Eurozone
sharply to 0.4% q-o-q SAAR in the
10 Real GDP Growth
second quarter of this year, from 4.4% US
in Q1. The lacklustre growth was due 5 Eurozone
QOQ SAAR % Growth

to stagnant private consumption 0

spending, while corporate capital Japan

-5
spending grew by a mere 1.9%, the
-10
slowest in the three quarters. Export
growth also slowed down this quarter. -15
2000 2002 2004 2006 2008 2010
Q2

Source: Datastream

The Eurozone economies surprised on the upside in Q2, with GDP growth rising to
3.9% q-o-q SAAR, up from 0.8% in Q1, boosted significantly by a robust 9%
expansion of the German economy. The Eurozone expansion, however, remained
uneven, with some peripheral economies, such as Greece, contracting markedly
(-5.8%).

Meanwhile, headline CPI inflation for the G3 economies came in at 1.3% y-o-y in
Q2, unchanged from the previous quarter. Core inflation – which excludes food
and energy – continued to slow in the US and Eurozone, and contracted in Japan,
generally reflecting the negative output gaps in these economies.

2
Regional economies: Mild deceleration in Q2

Asia ex-Japan 1 enjoyed brisk rates of growth at the start of this year as the region
benefited from the upswing in the global economy and inventory re-stocking.
Exports rose strongly in H1 on a year ago basis, although recent data suggests a
mild moderation going into the second half of the year. Domestic demand
conditions generally remained firm across Asia ex-Japan over the past few
quarters.

In China, GDP growth eased to 10.3% y-o-y in Q2 2010, following robust expansion
of 11.9% in the preceding quarter. Expansion in fixed asset investment
decelerated from 26.4% in Q1 to 25.2% in Q2 as government tightening measures,
especially in the property sector, began to take effect. In other parts of the
economy, retail sales continued to grow strongly and exports remained firm, rising
by 38.0% y-o-y in July, albeit off the recent high of 48.5% in May. Nonetheless,
with growth of imports slowing at a faster rate, the trade surplus has risen to an 18-
month high of US$28.7 billion in July.

Signs of a slowdown are also evident in many of the NIEs and ASEAN economies.
Growth in South Korea, for instance, moderated to 7.2% y-o-y in Q2, down from
8.1% in Q1. Similarly, Malaysia’s growth also came in slightly lower at 8.9% in Q2.
The moderation was fairly broad-based as private consumption, investment and
exports slowed. The Indonesian economy, however, accelerated slightly to 6.2% in
Q2, benefiting from a pick-up in investment spending.

Meanwhile, headline CPI inflation in Asia ex-Japan rose marginally to 4.4% y-o-y in
Q2 2010, compared to 4.2% in Q1. This largely reflected higher oil and food prices
and a narrowing of the output gap brought about by a further strengthening in
domestic economic activity.

1
Asia here comprises China, Hong Kong, India, Indonesia, Korea, Malaysia, the Philippines, Singapore, Taiwan and
Thailand.

3
Singapore economy: Growth continued at a robust pace

The Singapore economy expanded by 24.0% q-o-q SAAR in Q2 2010, moderating

from the record growth rate of 45.7% in Q1. For the second consecutive quarter,
GDP growth was led by the manufacturing sector, on the back of escalating
biomedical and electronics output. Meanwhile, the services sector continued to
show broad-based growth, with tourism-related industries performing particularly
well. In addition, the construction sector registered its ninth quarter of expansion,
supported by public sector projects.

Singapore’s growth moderated to 24.0% q-o-q

SAAR in Q2.
50 Real GDP
40 For the second consecutive
30 quarter, GDP growth was led
YOY
Per Cent

20
SAAR Growth by the manufacturing sector,
10

0
while the services sector
-10 continued to show broad-based
-20
2000 2002 2004 2006 2008 2010
growth.
Q2

i) Manufacturing Sector

Manufacturing activity rose by 60.1%

The manufacturing sector continued to expand
q-o-q SAAR in Q2 2010, extending the in Q2.
199.1% surge in Q1. 250
Index (Q1 2000=100), SA

The Index of Industrial Production 200

IIP Non-electronics
expanded by 91.2% q-o-q SAAR in Q2,
150
Total IIP
after record growth of 159.1% in Q1.
The second quarter expansion was led 100
IIP Electronics
by electronics production, which rose
50
by 32%, and stronger pharmaceuticals 2000 2002 2004 2006 2008 2010
Q2
output, arising from the increased
production of higher value active
pharmaceutical ingredients.

4
ii) Construction Sector

Activity in the construction sector Growth in civil engineering works led

construction activity in Q2.
accelerated in Q2, expanding by
300
29.2% q-o-q SAAR after growing by
250

Index (Q1 2000=100), SA

Non-residential
0.5% the quarter before. While Certified Payments
200
residential construction declined from Civil Engineering
Certified Payments
150
its Q1 peak, this was offset by strong
100
growth in civil engineering works, Residential
Certified
comprising mostly public infrastructure 50
Payments
projects, including the MRT Downtown 0
2000 2002 2004 2006 2008 2010
Line and Marina Coastal Expressway. Q2

Source: EPG, MAS estimates

Meanwhile, non-residential
construction picked up after three
quarters of decline, boosted by a spike
in public sector works.

iii) Services Sector

The services sector posted broad-based growth of 10.4% q-o-q SAAR in Q2, albeit
at a slower pace than the 17.6% growth in Q1. Growth in trade flows was firm,
benefiting trade-related services, such as transport and storage, which returned to
expansion after contracting in Q1. While the wholesale and retail trade sector
slowed considerably in Q2, this was mainly because of a 77.6% q-o-q SAAR plunge
in vehicle sales which had hurt overall retail volumes. Meanwhile, buoyed by new
activities in the tourism cluster, the “other services” segment surged in Q2, and the
hotels and restaurants sector maintained robust growth.

The financial sector strengthened further in Q2, registering 9.7% q-o-q SAAR
growth, up from 7.2% in Q1. The financial intermediation cluster picked up,
supported by gains in the ACU market. Domestic non-bank lending rose as well,
underpinned by resilient consumer loans and a continued recovery in business
loans. Meanwhile, some of the sentiment-sensitive industries also saw an uptick in
Q2. The performance of the forex market and the fund management industry
improved, buoyed by fresh fund inflows. In comparison, domestic stockmarket
turnover volumes fell 4.8%, weighed down by renewed uncertainty over global
recovery prospects.

5
B. Labour Market

Net job creation was lower in Q2 2010

Total employment grew by 26,500 in Q2, lower than the 36,500 increase in Q1,
partly due to the 2,400 job cuts in the manufacturing sector. In comparison, the
services sector added 27,400 workers in Q2, a level comparable to previous
quarters. Employment in the construction sector also expanded, by 1,800, after
declining by 400 in the previous quarter.

Following the rapid declines seen in the latter part of 2009, Singapore’s seasonally-
adjusted unemployment rates have broadly stabilised at 2.3% and 3.3% for the
overall labour force and resident labour force in June 2010 respectively.
Meanwhile, wages rose by 5.8% y-o-y in Q2 2010, higher than the 3.7% increase in
the previous quarter.

Recent surveys indicate that job The unemployment rate stabilised in June 2010.

creation is likely to hold steady in Q3 80

70
5.2
Changes in Employment ('000)

4.8
2010. According to EDB’s Business 60
50
4.4
4.0

Per Cent, SA
Expectations Surveys, the employment 40
30 3.6

outlook for the manufacturing sector in 20

10
3.2
2.8
Q3 is largely unchanged from the 0
-10
2.4
2.0
previous quarter, although the marine -20
-30 1.6
2000 2002 2004 2006 2008 2010 Q2
& offshore engineering segment is Goods Industry (LHS) Unemployment Rate (RHS)

likely to reduce headcount due to a Services Industry (LHS)

lower volume of orders anticipated for

the rig-building industry. Meanwhile,
manpower demand in the services
sectors is projected to stay strong.
Employment prospects are the most
sanguine in financial services, with
almost half of the financial institutions
surveyed planning to hire.

C. Inflation

CPI inflation increased in Q2 2010

Headline CPI inflation rose to 3.1% in Q2 2010 from 0.9% in Q1. This was due in
part to the low base last year, as well as more broad-based price increases on a
sequential basis. A key contributor to the rise in inflation was private road transport

6
costs, which climbed significantly on the back of the jump in COE premiums.
Meanwhile, the MAS underlying inflation rate, which excludes the cost of
accommodation and private road transport, rose to 1.7% from 0.1% in Q1 2010.

In July, CPI inflation edged up to 3.1% after easing to 2.7% in the previous month
as private road transport costs rose again, after a brief decline in June. All other
major categories of the CPI basket also saw some price increases in line with the
improvement in domestic economic conditions.

CPI inflation reached 3.1% in July.

CPI inflation averaged 2.1% in 8

7
the first seven months of 2010. 6
Overall CPI
Inflation
5

YOY % Growth
On a sequential basis, price 4
MAS Underlying
increases have become more 3
2
Inflation

broad-based. 1
0
-1
-2
2000 2002 2004 2006 2008 2010
Jul

CPI inflation is expected to average between 2.5% and 3.5% in 2010

Private road transport costs and global oil prices are expected to rise only modestly
from current levels for the rest of 2010. Nonetheless, they will be significantly
higher than year-ago levels and thus would continue to be the main contributors to
headline (year-on-year) CPI inflation. Other domestic sources of inflation could
also pick up as business costs increase with continued economic growth and
tightening of the factor markets. Wage growth had turned positive in Q1 2010 while
commercial rentals are also on a recovery trend.

The CPI is expected to continue rising on a sequential basis, which, combined with
the low base, will result in increasingly higher headline inflation rates for the rest of
2010. For the year as a whole, CPI inflation is projected to be between 2.5% and
3.5%. The MAS underlying inflation rate will follow a similar rising profile, but
average lower at close to 2% mainly due to the exclusion of the cost of private road
transport, which is expected to be the main contributor to inflation this year.

7
D. Outlook

Global economy: More moderate growth ahead

The global growth momentum has eased more recently, after a fairly strong pick-up
since the second half of last year. Household spending has softened in the US,
and the Japanese economy came to a virtual standstill in Q2 2010. Forward-
looking indicators, such as Purchasing Managers’ Indices (PMIs) and composite
leading indices, also point to slower growth in the period ahead.

In the US, concerns have risen over the possibility of renewed weakness in the
economy. From a recent high of 60.4 in April 2010, the PMI for the manufacturing
sector has fallen to 55.5 in July as new orders and output declined. This suggests
that while industrial output will continue to expand, the rate of growth is likely to be
slower in the second half. In July, non-farm payrolls contracted by 131,000 with
jobless claims on the rise. Along with such persistent weakness in the labour
market, soft consumer sentiments and tight credit conditions, growth forecasts for
the US economy have been revised downwards in recent months. The Federal
Reserve has lowered its GDP growth forecast for this year to 3.0–3.5% (from 3.2–
3.7%), warning that household spending continued to be constrained by “high
unemployment, modest income growth, lower housing wealth, and tight credit.”
Similarly, the consensus forecasts for growth in 2010 and 2011 have been shaved
to 2.9% and 2.8% respectively (as at August), representing cuts of 0.4%-point and
0.3%-point over the past two months.

The recent strength of the yen, as well as signs of some deceleration in its major
trading partners – particularly the US and China – does not augur well for the
Japanese economy, coming on the heels of its weak performance in Q2.

In the meantime, although Q2 GDP growth in the Eurozone surprised on the

upside, concerns remain as to the sustainability of the growth upturn – particularly
as fiscal consolidation in a number of countries will continue to weigh on domestic
demand. Even though the Eurozone, in particular, Germany, benefited from the
improvement in the global economy in H1, and a slightly weaker currency, external
demand conditions are also likely to be less supportive going forward.

Prospects remain brighter in Asia, where a transition from public to private sector-
led growth is underway. Nonetheless, after a brisk recovery since mid-2009, in part
due to inventory adjustments and robust IT demand, the growth momentum has
started to ease. Private consumption and investment spending moderated in Q2 in
many countries along with a mild deceleration in exports. The Chinese economy
slowed down in Q2 and leading indicators (including the PMI and the OECD

8
leading index for China) point to a more moderate pace of economic activity in the
second half this year. Overall, GDP growth rates in Asia are generally expected to
be lower by around 1-2% points in 2011 compared to 2010 (Table 1).

Against this backdrop, inflationary pressures should be subdued in the G3, given
the considerable slack in these economies. Indeed, market anticipation of a
normalisation of policy rates in the G3 have been pushed back as growth concerns
come to the fore. In Asia, inflationary pressures, while picking up, appear largely
contained and the process of normalisation of policy rates that started in the first
half of the year is expected to be gradual.

Table 1: Consensus Forecasts for GDP Growth

Forecast
2009
2010 2011
% Growth
Industrial
US -2.6 2.9 2.8
Japan -5.2 3.2 1.5
Eurozone -4.0 1.2 1.4
UK -4.9 1.5 2.0
NIE
Hong Kong -2.8 5.6 4.6
Korea 0.2 6.0 4.3
Taiwan -1.9 6.8 4.3
ASEAN
Indonesia 4.5 5.9 6.1
Malaysia -1.7 7.0 5.2
Thailand -2.2 6.4 4.5
Philippines 1.1 5.5 4.7
China 8.7 9.9 9.0
India * 7.2 8.4 8.4
Source: CEIC and Consensus Forecasts, Aug 2010
* Fiscal year starting 1 April.

IT outlook: Cooling off after exceptional growth

Following two years of decline, global chip sales are forecast to grow by 31% in
2010, and 7% in 2011, according to iSuppli. Semiconductor revenues swelled by
51% y-o-y in the first half of the year, on the back of strong consumer demand for
IT products and underpinned by the build-up of stockpiles to support demand.
Going forward, the growth rate is expected to moderate, even as revenues remain
at high levels. Some soft spots in consumer demand have also emerged.

9
PC sales, which are responsible for The pace of growth in semiconductor revenues
is set to moderate over the next few months.
40% of total semiconductor
90 Forecast
consumption, have moderated amidst
80
more cautious consumer sentiment in
the G3 economies. Nevertheless, 70

US$ Billion
underlying trends for the IT industry 60

remain healthy. Richer chip content in 50

key electronic products such as smart 40

phones will continue to drive growth,
30
while corporate IT demand could also 2009 2010 2011 Q4

boost sales as companies upgrade Source: iSuppli

their ageing systems.

Domestic economy: Growth is expected to soften in H2 2010

After a strong and sustained recovery during which GDP surged by 24% from its
trough, the Singapore economy is expected to slow in the coming quarters,
alongside still-tepid growth in the G3 economies and some easing in Asian growth.

The cyclical impetus, which has been fuelling the global recovery thus far, is
showing signs of waning, as suggested by recent leading indicators. Indeed, fading
support from the global inventory cycle points to a slower pace of production in the
coming months. Against this backdrop, the latest monthly data shows that
Singapore’s non-oil domestic exports (NODX) and non-oil re-exports (NORX) have
already started to soften.

In addition, the pharmaceutical industry is projected to see a pullback in the second

half of 2010, due to major plant maintenance shutdowns, as well as a switch in
product mix, thus weighing on the manufacturing sector’s output. Nonetheless, with
new activities rejuvenating the economic landscape, especially on the tourism front,
coupled with resilient regional consumption, there are sufficient supports to keep
domestic economic activity at high levels for the rest of the year. Against this
backdrop, the Singapore economy is expected to grow by between 13% and 15%
for the whole of 2010.

10
E. Macroeconomic Policies

A shift in policy stance to ensure price stability over the medium term

i) Monetary Policy

The Singapore economy had
rebounded strongly from the downturn
and had been expected to continue on
its firm recovery path given the more
favourable global economic outlook
compared to that in 2009. At the same
In April 2010, MAS re-centred the exchange rate
policy band at the prevailing level of the
S$NEER and shifted from a zero percent
appreciation to one of modest and gradual
appreciation, with no change to its width.
104
Appreciation
103

Index (3 Oct 2008 = 100)

102
time, inflationary pressures had been 101

expected to pick up, driven by higher 100

global commodity prices and some 99

98
domestic costs. In anticipation of this,
97 Depreciation
MAS re-centred the exchange rate
96
policy band at the prevailing level of Oct
2008
Jan
2009
Apr Jul Oct Jan
2010
Apr

the S$NEER in April this year. The indicates release of Monetary Policy Statement
policy band was also shifted from that
of a zero percent appreciation to one
of modest and gradual appreciation,
with no change to its width. MAS will
continue to be watchful over
developments in the external
environment and their impact on the
domestic economy.

ii) Fiscal Policy

Amidst the improvement in economic conditions, the government announced in late

2009 the exit strategies for the two key measures of the "Resilience Package" that
were put in place last year to help businesses and households tide over the
economic downturn. The Jobs Credit Scheme, which involves cash grants to
employers to subsidise part of their wage bills for local workers, was extended for
another six months until June 2010, but at a stepped-down rate. Similarly, while
the financing schemes under the Special Risk-Sharing Initiative (SRI) were
continued for another year until January 2011, they have been scaled back in terms
of the size and tenure of loans, as well as the share of the risk borne by the
government. The overall budget deficit for FY2009 came in at $0.8 billion (0.3% of

11
GDP), significantly lower than the $8.7 billion projected last year, on the back of
higher revenues from the better-than-expected performance of the economy and
the property market.

The focus of Budget 2010, announced on 22 February, has shifted from crisis relief-
type measures towards initiatives that are targeted at restructuring the Singapore
economy in order to enhance productivity over the medium to long term. This
represents a crucial step towards implementing the recommendations charted out
by the Economic Strategies Committee (ESC) to support the economy's growth in
the next phase of its development. Budget measures were introduced to boost
investment for the future through three approaches. First, the government has
committed $1.1 billion a year over the next five years in the form of tax benefits,
grants and training subsidies to help companies and workers to innovate and
deepen their skills and expertise. Second, measures were put in place to enable
companies to develop growth capabilities, commercialise their R&D and expand
abroad. Third, the government continues to aim at building a society where
everyone has the best opportunity to stretch their potential and enjoy a better
quality of life. In particular, the latter measures were geared towards helping the
lower-skilled workers and benefiting the lower-to-middle income households. For
FY2010, the government is expecting to run an overall budget deficit of around $3.0
billion (1.1% of GDP).

Summary of Fiscal Position

FY 2008 FY 2009 FY 2010 Budgeted

$billion % of GDP $billion % of GDP $billion % of GDP
Operating Revenue 41.1 15.4 39.5 14.4 40.7 14.7
Total Expenditure 38.1 14.3 41.9 15.3 46.4 16.7
Operating
28.7 10.8 30.9 11.3 33.9 12.2
Expenditure
Development
9.4 3.5 11.0 4.0 12.5 4.5
Expenditure
Primary
3.0 1.1 -2.3 -0.9 -5.6 -2.0
Surplus/Deficit (-)
Add: NII/NIR
4.3 1.6 7.0 2.6 7.8 2.8
Contribution
Less: Special
7.1 2.7 5.5 2.0 5.2 1.9
Transfers
Budget
0.2 0.1 -0.8 -0.3 -3.0 -1.1
Surplus/Deficit (-)

Note: Figures may not tally due to rounding.

Source: Ministry of Finance.

12
 Selected Indicators

GENERAL INDICATORS, 2009

Land Area (Sq km) 710.3 Literacy Rate* (%) 96.3

Total Population ('000), 2010 5,076.7 Real Per Capita GDP (US$) 34,094

Labour Force ('000) 3,030.0 Gross National Savings (% of GNI) 45.7

Resident Labour Force Participation Rate (%) 65.4

* Refers to resident population aged 15 years and over.

COMPONENTS OF NOMINAL GDP COMPONENTS OF NOMINAL GDP

SECTORAL (% of GDP), 2009 EXPENDITURE (% of GDP), 2009
Manufacturing 19.5 Private Consumption 40.9

Financial Services 12.2 Public Consumption 11.5

Business Services 14.1 Private Gross Fixed Capital Formation 24.3

Construction 5.4 Public Gross Fixed Capital Formation 4.4

Transport & Storage 8.8 Increase in Stocks -1.5

Information & Communications 3.9 Net Exports of Goods & Services 21.1

W holesale & Retail Trade 17.7 Statistical Discrepancy -0.6

Hotels & Restaurants 2.2

MAJOR EXPORT DESTINATIONS MAJOR ORIGINS OF IMPORTS

(% SHARE), 2009 (% SHARE), 2009
Total Exports (S$ Billion) 391.1 Total Imports (S$ Billion) 356.3

Hong Kong 11.6 US 11.6

Malaysia 11.5 Malaysia 11.6

China 9.7 China 10.5

Indonesia 9.7 Japan 7.6

USA 6.5 Indonesia 5.8

ASEAN 30.3 ASEAN 24.0

NIEs 19.5 EU 13.7

EU 9.5 NIEs 12.0

Source: IE Singapore

MAJOR DOMESTIC EXPORTS MAJOR IMPORTS

BY COMMODITY (% SHARE), 2009 BY COMMODITY (% SHARE), 2009
Domestic Exports (S$ Billion) 200.0 Total Imports (S$ Billion) 356.3

Mineral Fuels 29.3 Electronics 28.1

Electronics 25.9 Mineral Fuels 25.0

Chemicals 18.4 Machinery & Transport Equipment (ex. Electronics) 19.8

Machinery & Transport Equipment (ex. Electronics) 12.1 Manufactured Goods 7.3

Manufactured Articles 7.6 Manufactured Articles 7.0

Manufactured Goods 2.7 Chemicals 6.0

Source: IE Singapore

13
OVERALL ECONOMY 2008 2009 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Jun-10 Jul-10
GDP at current prices (S$ bil) 273.5 265.1 67.5 68.0 69.9 68.2 61.2 64.2 68.7 70.9 70.7 74.9 na na
GDP (US$ bil) 193.3 182.2 47.9 49.8 50.0 45.8 40.5 43.6 47.7 50.9 50.4 53.9 na na
Real GDP Growth (YOY % change) 1.8 -1.3 7.4 2.7 0.0 -2.5 -8.9 -1.7 1.8 3.8 16.9 18.8 na na
Real GDP Growth (QOQ SAAR % change) na na 17.6 -12.5 -3.0 -9.0 -11.0 18.5 11.1 -1.0 45.7 24.0 na na
By Sector (YOY % change):
Manufacturing 1/ -4.2 -4.1 12.3 -5.6 -11.0 -10.7 -23.8 -0.4 7.6 2.2 38.2 39.2 29.5 9.9
Electronics 2/ -7.0 -8.5 3.5 -0.9 -5.4 -23.2 -36.6 -19.4 -1.2 28.0 70.0 55.9 52.8 24.5
Non-electronics 2/ -2.8 -2.2 16.4 -7.6 -13.4 -4.4 -18.4 8.3 11.8 -8.0 27.6 42.7 20.2 4.0
Financial Services 5.7 1.3 14.6 7.7 3.9 -1.9 -7.6 0.7 3.5 8.5 19.1 10.2 na na
Business Services 9.4 4.5 9.8 10.8 9.6 7.4 6.2 4.0 3.7 4.2 6.6 6.4 na na
Construction 20.1 16.2 8.5 22.7 25.6 23.2 25.5 18.1 11.7 11.5 10.2 11.2 na na
Transport & Storage 2.2 -7.0 4.3 5.0 2.8 -3.2 -10.5 -10.1 -7.2 0.1 7.9 7.6 na na
Information & Communications 6.1 1.2 5.7 6.6 6.8 5.3 1.8 1.3 -0.1 1.6 2.3 2.8 na na
Wholesale & Retail Trade 3.1 -8.2 7.7 6.4 3.3 -4.7 -14.3 -11.8 -7.5 1.5 16.9 18.9 na na
Hotels & Restaurants 0.8 -1.5 2.7 1.4 -0.7 -0.1 -4.0 -4.3 0.2 2.0 7.0 10.4 na na
By Expenditure Component (YOY % change):
Consumption 3.9 2.1 5.6 5.0 4.2 0.7 -2.8 0.0 4.6 7.0 8.6 6.4 na na
Private 2.7 0.4 5.8 5.7 2.3 -2.7 -3.1 -3.2 2.1 6.0 5.9 6.7 na na
Public 8.4 8.2 5.0 1.3 12.4 15.4 -1.9 17.1 14.3 10.9 15.3 5.0 na na
Gross Fixed Capital Formation 13.6 -3.3 29.2 25.3 15.3 -9.9 -12.6 -6.1 1.1 6.0 10.6 -1.2 na na
Private 13.3 -5.9 34.8 25.6 14.1 -13.4 -16.7 -8.5 -0.4 4.1 9.4 -4.3 na na
Public 15.6 17.2 -3.4 22.8 25.3 23.6 20.8 17.3 11.9 18.6 17.8 22.6 na na
External Demand 4.1 -9.0 9.7 7.3 5.1 -5.0 -17.6 -13.1 -9.1 4.8 20.0 23.3 na na

TRADE
Total Exports, fob (YOY % change) 5.0 -17.2 11.5 13.2 11.4 -12.0 -27.8 -25.4 -20.0 4.9 28.2 29.1 28.2 16.6
Non-Oil Domestic Exports -8.6 -9.9 0.6 -5.5 -8.6 -17.7 -25.6 -14.5 -7.8 8.2 23.1 27.6 28.5 18.2
Re-Exports 4.5 -15.4 10.3 15.5 8.1 -8.1 -24.1 -23.8 -17.9 1.9 24.5 24.6 28.2 20.8
Total Imports, cif (YOY % change) 14.0 -21.2 21.5 21.4 22.2 -7.1 -27.6 -28.4 -22.8 -2.7 25.5 26.4 26.5 21.7

WAGE-PRICE INDICATORS
Unemployment Rate (SA,%) 2.2 3.0 1.9 2.2 2.2 2.7 3.2 3.2 3.3 2.3 2.2 2.3 na na
Average Nominal Wages (S$ per month) 3977 3872 4316 3690 3674 4229 4155 3609 3562 4160 4310 3819 na na
Consumer Price Index Inflation (YOY % change) 6.6 0.6 6.6 7.5 6.6 5.8 3.4 0.2 -0.3 -0.8 0.9 3.1 2.7 3.1
MAS Underlying Inflation (YOY % change) 5.7 0.0 5.3 6.5 5.7 5.3 2.2 0.0 -0.7 -1.4 0.1 1.7 1.7 2.0

FINANCIAL INDICATORS 3 /
S$ Exchange Rate Against: (end-period)
US Dollar 1.4392 1.4034 1.3799 1.3616 1.4314 1.4392 1.5194 1.4498 1.4141 1.4034 1.4028 1.4013 1.4013 1.3623
100 Japanese Yen 1.5924 1.5194 1.3814 1.2819 1.3732 1.5924 1.5450 1.5115 1.5752 1.5194 1.5016 1.5822 1.5822 1.5775
Euro 2.0258 2.0163 2.1807 2.1493 2.0558 2.0258 2.0153 2.0464 2.0674 2.0163 1.8789 1.7113 1.7113 1.7790
Interest Rates (end-period, % p.a.)
3-month Fixed Deposit Rate 0.39 0.25 0.42 0.41 0.41 0.39 0.32 0.27 0.26 0.25 0.22 0.21 0.21 0.20
3-month Domestic Interbank Rate 1.00 0.69 1.31 1.19 1.88 1.00 0.69 0.69 0.69 0.69 0.69 0.56 0.56 0.56
Prime Lending Rate 5.38 5.38 5.38 5.38 5.38 5.38 5.38 5.38 5.38 5.38 5.38 5.38 5.38 5.38
Money Supply (end-period)
Broad Money, M2 (YOY % change) 12.0 11.3 11.9 7.5 10.4 12.0 11.5 12.9 11.3 11.3 8.8 7.3 7.3 7.5
Straits Times Index (end-period) 1761.6 2897.6 3007.4 2947.5 2358.9 1761.6 1700.0 2333.1 2672.6 2897.6 2887.5 2835.5 2835.5 2987.7
YOY % change -49.2 64.5 -4.9 -15.2 -35.3 -49.2 -43.5 -20.8 13.3 64.5 69.9 21.5 21.5 12.4

GOVERNMENT BUDGET 4 /
Operating Revenue (S$ mil) 41377 37872 9046 10678 11391 10261 8756 10000 10621 8495 10430 11912 na na
Total Expenditure (S$ mil) 37470 40483 12453 6710 8447 9860 13073 7874 9177 10359 14509 7888 na na
Operating Expenditure 28590 29871 10252 4502 6693 7144 10395 5269 6695 7512 11433 5346 na na
Development Expenditure 8880 10612 2201 2209 1754 2716 2678 2604 2482 2847 3077 2542 na na
Primary Surplus/Deficit (S$ mil) 3907 -2611 -3407 3968 2945 400 -4317 2126 1444 -1864 -4079 4024 na na
% of GDP 1.4 -1.0 -5.0 5.8 4.2 0.6 -7.1 3.3 2.1 -2.6 -5.8 5.4 na na

BALANCE OF PAYMENTS
Current Account Balance (% of GDP) 18.5 17.8 18.8 19.9 20.8 14.5 16.8 18.3 17.1 18.8 17.0 19.9 na na
Goods Balance 13.7 16.5 15.6 13.9 16.3 8.9 11.6 16.4 17.7 19.5 16.6 20.9 na na
Services Balance 7.0 4.7 7.1 7.2 7.6 6.2 5.0 4.7 4.1 4.9 3.8 3.8 na na
Income Balance -0.7 -1.7 -2.5 0.3 -1.5 0.7 2.0 -1.1 -3.1 -4.0 -1.7 -3.1 na na
Current Transfers -1.5 -1.7 -1.4 -1.5 -1.5 -1.3 -1.8 -1.7 -1.6 -1.6 -1.7 -1.6 na na
Capital & Fin Account Balance (% of GDP) -12.6 -11.3 -1.5 -15.3 -24.9 -8.2 -25.2 -17.5 -3.9 -0.9 10.4 0.7 na na
Financial Account Balance (% of GDP) -12.4 -11.1 -1.4 -15.1 -24.7 -8.0 -25.0 -17.3 -3.7 -0.7 10.6 0.8 na na
Direct Investment 10.0 5.9 9.0 9.3 5.9 16.0 3.6 7.3 4.6 8.1 7.2 11.6 na na
Portfolio Investment -20.8 -16.6 -16.8 -21.5 -20.4 -24.6 -17.0 -14.2 -22.2 -12.8 -8.5 -10.5 na na
Other Investment -1.6 -0.5 6.5 -3.0 -10.2 0.7 -11.6 -10.3 13.9 4.0 11.9 -0.3 na na
Overall Balance (% of GDP) 6.8 6.2 17.7 6.3 -3.1 6.5 -5.8 1.6 10.2 16.9 29.8 18.3 na na
Official Foreign Reserves (US$ mil) 5/ 174196 187809 177462 176650 168802 174196 166251 173191 182039 187809 197112 199960 199960 206934
Months of Imports 6.6 9.2 7.5 7.0 6.2 6.5 6.8 7.8 9.0 9.2 8.9 8.5 8.5 8.6

Source:
1/
Monthly data from Index of Industrial Production, EDB
2/
Data from Index of Industrial Production, EDB
3/
Straits Times Index from SGX. All other indicators from MAS.
4/
Ministry of Finance
5/
MAS
na: Not available

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