AI demand boosts Singapore exports in April
SINGAPORE—Singapore’s exports rose nearly 25 percent in April compared to the same month the previous year as strong demand for artificial intelligence (AI)-related products outweighed the effects of the Middle East crisis, official data showed on Monday.
Non-oil domestic exports posted forecast-beating 24.5 percent growth that extended the 15.3 percent rise recorded in March, said Enterprise Singapore, a government body helping local firms expand globally.
As an export-oriented economy with a small domestic market, Singapore is usually seen as a bellwether for international trade.
“Electronics (exports) continued to expand, supported by robust AI-related demand,” Enterprise Singapore said.
Insatiable appetite for AI
The rise highlights an insatiable global appetite for advanced AI chips, key components in a diverse range of hardware, from laptops and smartphones to next generation digital storage devices.
Exports to the United States surged 59.6 percent, reversing a fall of 2.8 percent in March.
Shipments to China climbed 37.8 percent from 20.3 percent the previous month and those to the European Union rose 33.4 percent after shrinking 12.2 percent in March.
On May 1, Prime Minister Lawrence Wong warned that economic growth for the city-state will likely slow this year as the Middle East crisis keeps the Strait of Hormuz closed.
Shipping through the strait, through which around a fifth of global oil and gas transits, has been largely blocked by Tehran since the United States and Israel carried out the strikes on Iran that began the regional war on Feb. 28.
‘Difficult period ahead’
The closure and a rival US blockade on maritime traffic to Iranian ports has jolted global energy markets and raised fears of a dampening in international economic growth as consumers grapple with rising prices.
Wong did not provide specific figures, but the trade ministry in February said it expected the economy to expand 2-4 percent this year, a bump from its previous forecast of 1-3 percent.
Wong urged Singaporeans to “be prepared for a more difficult period ahead,” but also added that government policies implemented in the past to build energy resilience, including turning the small nation into a major oil refining hub and energy trading center, would help the country deal with the crisis from a position of strength.
