Singapore's trade with its neighbors expands

Singapore's trade with its neighbors expands

SINGAPORE (AFP): Singapore's trade with its ASEAN neighbors has recovered from negative territory since March as most regional economies emerged from recession on improvement in global electronics demand, Trade and Industry Minister George Yeo said Tuesday.

Total trade between Singapore and ASEAN expanded 8.8 percent from March to May 1999, after declining 12 percent between June 1998 and February 1999, he told Parliament.

The figures covered trade between Singapore and its fellow members in the Association of Southeast Asian Nations (ASEAN), excluding Indonesia, he said. Singapore traditionally does not report trade figures with Indonesia.

"But the trend for Indonesia is the same," he said referring to the expansion of trade.

Trade between Singapore and its neighbors turned dismal after the economic crisis erupted in mid-1997 and the value of regional currencies plunged against the US dollar, with imports becoming more expensive and exports hit by poor consumer demand.

"The Trade Development Board is cautiously optimistic that the expansion in trade with ASEAN would continue for the rest of the year, provided that global electronic demand stays healthy and the recovery of the ASEAN economies remains on course," Yeo said.

He said Singapore's exports to ASEAN countries rose 8.1 percent between March and May, on the back of higher exports of intermediate inputs for electronics and related products used in manufacturing products destined for the United States and Europe.

Higher exports of consumer goods to ASEAN also reflected "improved consumer sentiments in these countries," Yeo said.

Imports from ASEAN rose by 9.6 percent driven by higher imports in intermediate goods to support manufacturing operations in Singapore, he added.

Apart from Singapore and Indonesia, ASEAN also includes Brunei, Cambodia, Laos, Malaysia, Myanmar, the Philippines, Thailand and Vietnam.