Enterprise Singapore released data this week, indicating a 35.1 percent growth in Singapore’s electronic shipments in August compared to the same month last year, after a revised increase of 16.8 percent in the previous month.
The growth is termed as the fastest since June 2010.
Thanks to the strong results of electronics, Singapore's estimate of increasing at the higher half of its 1 to 3 percent predicted band is hoping to be met, if not exceeded.
The city state is home to some of Southeast Asia's biggest chip manufacturing facilities.
Singapore and the larger Southeast Asian regions profit from the companies that expand their IT supply chains outside Taiwan and mainland China to lower risks associated with tensions between Beijing and Washington.
Additionally, multinational IT giants have declared billion-dollar new investments in Singapore this year, propelled by the demand for innovative services like generative artificial intelligence.
But Singapore, which depends heavily on trade, is advised to exercise caution.
Domestic non-oil exports from the island increased by 10.7 percent, falling short of the 15 percent median estimate in a recent study. International sales decreased 4.7 percent month over month, reversing July's 12.2 percent growth.
Nevertheless, August saw a 35.1 percent year-over-year increase in electronic device shipments, which was an acceleration of the 16.8 percent increase seen in July. According to EnterpriseSG, the export of integrated circuits and disk media products was a major factor in this.
In the same period, non-electronic shipments increased by a more moderate 3.7 percent year over year; this was a significant decrease from the 15.5 percent growth seen in the previous month. Gold that wasn't used as currency and specialized machinery drove most of the expansion.
Eight of Singapore's top ten markets had growth in NODX, with the eurozone and Japan defying the trend. In contrast, there were six in July.
Shipments to China rose 18.8 per cent year on year in August, compared with 21.1 percent previously, while those bound for the US were up 6.4 per cent year on year, slowing down from 28.9 per cent in July.