Singapore cements 2004 growth as key exports rise 17.1%

Singapore cements 2004 growth as key exports rise 17.1%

Martin Abbugao, Agence France-Presse, Singapore

Singapore's key exports grew 17.1 percent in March from the
previous year, beating analysts' forecasts and fulling already
optimistic expectations of economic growth this year, the
government and economists said on Friday.

Non-oil domestic exports (NODX) got a lift from continued
growth in electronics shipments, as well the pharmaceutical
sector, to total S$11.19 billion (US$6.66 billion).

The pace of growth slowed from the 25.7 percent posted in
February but was still higher than the 13-16 percent rate
forecast by economists.

Analysts, said they were not concerned about the slowdown
because the February 2004 growth rate was compared with a lower
base the previous year. February 2003 had fewer working days due
to the Chinese Lunar New Year holidays.

International Enterprise Singapore, the government's trade
body, described the 17.1 percent growth in March as "robust" and
highlighted the expansion in both electronics and non-electronics
sectors.

Electronics exports expanded for the second month in a row at
8.7 percent, powered by a 43 percent increase in shipments of
telecommunications equipment and a 34.3 percent rise in exports
of semiconductors.

The increases offset an 18.1 percent fall in exports of disk
drives for personal computers and servers.

Pharmaceuticals exports jumped 49.6 percent, boosting growth
in the non-electronics sector to 27 percent.

Total trade in March grew 22 percent to S$48.98 billion.

"Overall, it really reaffirms the recovery story and boosts
optimism that we will hopefully see an upside surprise to the
full-year growth," said Low Ping Yee, an economist with United
Overseas Bank.

Low is projecting a 6.1 percent growth in gross domestic
product (GDP) this year.

Standard Chartered Bank economist Joseph Tan, who expects
growth of 6.6 percent GDP for 2004, described the March numbers
as impressive.

"It continues to suggest that the export-led recovery remains
fairly robust. It does indicate that the export growth will
continue and I think that's going to be positive for Singapore's
growth this year," Tan said.

Song Seng Wun, a regional economist with GK Goh brokerage,
said the March export numbers reinforced his GDP forecast of up
to 7.5 percent, possibly the highest among the analysts based
here.

He expects NODX to expand 10-15 percent in the second quarter
and should accelerate to 15-20 percent in the September quarter.

The strong March export figures followed government data
released on Monday showing the Singapore economy surged 7.3
percent in the first quarter from a year earlier, reinforcing
expectations full-year GDP will grow faster than initially
forecast.

The GDP growth rate, based on advance estimates for the first
two months of the year, was the fastest year-on-year growth since
the fourth quarter of 2000, the trade and industry ministry said.

Trade ministry officials said they expect to upgrade upwards
next month their official growth forecast of 3.5-5.5 percent for
this year.