SINGAPORE …. MONTHLY COMMERCIAL REPORT – MAY 2012 ...

cluster in particular. Similarly, some 9 per cent of firms in each of the precision engineering and chemical
clusters project an improvement, with semiconductor equipment, bonding wire and connector makers the
most optimistic within precision engineering. Firms in the chemical cluster expressed cautious optimism,
however, as they are mindful of possible margin erosions due to high raw materials prices. The overall
optimism is reflected in expectations for output and employment. Compared to Q1, a net weighted
balance of 22 per cent expect output to increase in Q2 while a net weighted balance of 8 per cent plan to
increase employment in the next three months. While a weighted 45 per cent reported no constraints in
obtaining direct export orders in Q2, a weighted 47 per cent that indicated export constraints cited price
competition from overseas competitors and economic and political conditions abroad as the most
important limiting factors. Within the services sector, the 1,500 firms surveyed seem less upbeat across
sectors, with only a net weighted 6 per cent seeing better prospects. While a weighted 21 per cent predict
a better business outlook and a weighted 15 per cent expect the opposite, the majority expect the
business situation to remain unchanged, the Department of Statistics said. Firms in the recreation,
community & personal services industry are the most optimistic, with a net weighted balance of 26 per
cent of firms reporting a positive business outlook, with firms in the accommodation, wholesale trade and
information & communications also being significantly upbeat. Firms in the real estate industry are
generally cautious while the retail trade expressed significant pessimism, with retailers of motor vehicles,
in particular, expect the reduced Certificate of Entitlement quota to hit business. Overall, a net weighted
balance of 9 per cent of firms in the services sector predicts higher employment for the second quarter
2012, indicating that the sector will still be hiring during this period.
AVIATION
Changi Airport passenger traffic up 12.7% in April
Singapore Changi Airport (Changi) announced an increase in April passenger traffic to 4.21 million, up
12.7 per cent from 3.73 million a year ago. Passenger traffic improved year-on-year across all regions
with routes to and from the Middle East, South Asia, Northeast Asia and Southeast Asia achieving strong
results. Commercial aircraft movements increased correspondingly by 8.8 per cent to 26,410 movements,
from 24,266 movements a year ago. Due to the current downturn faced by most export markets around
the world, Changi handled a 4.9 per cent decrease in cargo volume to 148,243 tonnes, compared to
155,812 tonnes a year ago.
In the same media release, Changi announced a new shuttle bus service to terminal 3 from the Bedok
MRT bus stop every weekend and during public holidays. This is in addition to the shuttle service that
connects the airport to Sengkang MRT station also on weekends and public holidays.
TRADE & INVESTMENT
Update: Singapore April export rise hides weak regional outlook
Singapore exports rose more than expected in April due to a surge in pharmaceuticals but softness in
electronics, a mainstay of manufacturing in many Asian economies, points to a likely slowdown in
regional growth as China's economy cools. In Singapore, electronics account for about one-third of its
exports of domestically produced goods excluding oil. The city-state said its non-oil domestic exports
grew 8.3 per cent in April from a year ago, beating the consensus forecast of 6.9 per cent growth and
turning around from March's 4.3 per cent year-on-year contraction. Electronics, however, grew by just 1
per cent last month, while electronics re-exports - an indicator of regional trade flows - shrank 5.2 per cent
year-on-year following a 5.5 per cent decline in March. Singapore is one of the world's largest
transhipment centres and many of the region's products are moved to Singapore before they are shipped
further afield.