KUALA LUMPUR, Dec 5 (Bernama) -- Bursa Malaysia closed lower on Friday amid mixed regional market performance as investors turned cautious over a possible rate hike by the Bank of Japan (BOJ) and upcoming US economic data that may influence the Federal Reserve’s (Fed) interest rate decision next week. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) pared most earlier losses to settle 4.55 points easier, or 0.28 per cent, to 1,616.52 from Thursday’s close of 1,621.07. The benchmark index, which opened 0.37 of-a-point lower at 1,620.70, moved between 1,609.67 and 1,621.25 throughout the day. The broader market was negative, with decliners outpacing advancers 604 to 439. A total of 550 counters were unchanged, 1,151 untraded, and 18 suspended. Turnover declined to 3.17 billion units worth RM2.24 billion from 4.48 billion units worth RM2.75 billion yesterday. Rakuten Trade Sdn Bhd vice-presiden...
After a strong rebound in April, Singapore’s exports hit a snag in May. Non-oil domestic exports (NODX) slipped 3.5% year-on-year, a sharp turnaround from the 12.4% surge the month before — and well below market expectations.
If you're wondering why exports are losing steam and whether this matters for your portfolio, here’s what’s really going on.
Electronics Still Growing, But Momentum’s Slowing
Let’s start with the good news: electronics exports rose 1.7% year-on-year in May. That’s far from April’s 23.4% spike, but still positive.
Personal computers (PCs) surged +50.9%
Consumer electronics climbed +49%
Integrated circuits (ICs) were up modestly at +4.3%
But here’s the issue — non-electronics exports slid 5.3%, reversing April’s 9.3% gain.
Non-monetary gold exports dropped 25.9%
Petrochemicals were down 17.8%
Specialised machinery fell 11.7%
In short, the export story is starting to splinter — and that's a red flag.
Trade Surplus Shrinks, US Demand Weakens
Singapore’s trade surplus narrowed to S$5.8 billion in May, down from S$11.4 billion in April. The decline reflects not just weaker exports, but also a retreat in earlier front-loading activities ahead of U.S. tariffs.
Exports to the United States plunged 20.6% in May — a sharp reversal from April’s 1.2% growth — as demand for specialised machinery dropped off. This likely reflects the end of rushed shipments before higher tariffs kicked in.
Across the region, there are signs of a demand pullback:
PC exports to Thailand fell 76.3%
Computer parts to Malaysia crashed 99.3%
Even Indonesia — which saw a whopping 111.1% increase in April — slowed to just 8.1% growth in May.
Outlook: Uncertainty Ahead
While average NODX growth for the year is still positive, the trend is concerning. The global environment isn’t helping — tariff tensions are heating up, especially between the U.S. and China, and Singapore sits in the crossfire.
There’s also increasing concern over sectoral tariffs, particularly in electronics and pharmaceuticals, which could add secondary pressure on export growth in the months ahead.
That said, there’s a small silver lining: Singapore is in ongoing trade talks with the U.S., and there’s currently a 90-day pause before the full impact of new tariffs takes effect. That gives policymakers and businesses a brief window to prepare — or negotiate relief.
Money Master Take
Here’s what investors need to keep in mind:
- Export-driven sectors could see earnings pressure — be cautious around manufacturing plays
- Global demand is softening — a reality check for overly bullish forecasts
- Tariff headlines will drive volatility — but fundamentals matter more than fear
Bottom line: The days of strong, broad-based export growth may be behind us — at least for now. It’s time to stay nimble, monitor trade developments closely, and avoid chasing short-term rebounds without checking the macro weather.
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