After the Covid-19 pandemic, it’s likely that the economies of all countries worldwide were significantly affected, and Singapore is probably no exception. So, let’s explore Singapore’s export situation and the potential for growth in the future with GOL in the article below!

1.  Singapore’s export market

In 2022, Singapore, a sovereign city-state and island nation nestled in Southeast Asia, showcased its economic prowess by exporting goods amounting to a staggering $514.8 billion to the global market. This noteworthy figure signifies a substantial increase, witnessing a growth rate of 24.9% when compared to the 2018 export value of $412.1 billion.

Moreover, Singapore’s export performance in 2022 demonstrated a commendable surge of 12.5% compared to the preceding year, surpassing the 2021 export value of $457.7 billion. The nation’s economic resilience and adaptability have played a crucial role in navigating through global challenges.

Examining the currency dynamics, the Singapore dollar experienced a depreciation of -2.2% against the US dollar from 2018 to 2022 and a further loss of -2.6% from 2021 to 2022. Despite the currency weakening, this fluctuation had a positive impact on Singapore’s export competitiveness, making its goods more attractive and cost-effective for international buyers throughout the year 2022.

This robust export performance underscores Singapore’s prominence as a key player in the global trade arena, showcasing its ability to navigate economic fluctuations and maintain a strong position in international commerce.

2. Major countries import the most from Singapore

The latest data by country reveals that 75.3% of products exported from Singapore were purchased by importers in various countries, including Mainland China (12.4% of the global total), Hong Kong (11.2%), Malaysia (10%), the United States (8.8%), Indonesia (7.2%), Taiwan (4.9%), South Korea (4.05%), Japan (4.04%), Thailand (3.4%), Vietnam (3.3%), Australia (3.2%), and India (2.7%).

From a continental perspective, 71.7% of Singapore’s export value was directed to Asian countries, while 9.44% was sold to North American importers. Singapore also shipped 9.38% of its goods to Europe. Smaller percentages went to Oceania, led by Australia, the Marshall Islands, and New Zealand (5.5%), followed by Latin America, excluding Mexico but including the Caribbean (2.1%), and finally Africa (1.8%).

With a population of 5.64 million, Singapore’s total export value reached $514.8 billion in 2022, equivalent to $91,300 per capita. This figure surpasses the average of $83,900 per capita in 2021.

Singapore, as a bustling commercial hub, attracts a high level of re-export activity and maintains active trade relations with partners worldwide.

Read more: Selling Online to the US – An E-commerce superpower

3. Singapore’s leading export products

The top export product groups of Singapore in 2022 represent globally valuable shipments and constitute a significant percentage of the country’s total export revenue. Here is the list of the top 10 export product groups along with their values and percentage share:

• Electrical machinery, equipment: $181 billion (35.2% of total exports)
• Machinery, including computers: $75.1 billion (14.6%)
• Mineral fuels, including oil: $65.6 billion (12.7%)
• Optical, technical, medical apparatus: $23.2 billion (4.5%)
• Gems, precious metals: $22.6 billion (4.4%)
• Plastics, plastic articles: $15.6 billion (3%)
• Organic chemicals: $13.9 billion (2.7%)
• Perfumes, cosmetics: $10.2 billion (2%)
• Pharmaceuticals: $9.8 billion (1.9%)
• Other chemical goods: $7.7 billion (1.5%)

These products account for 82.5% of Singapore’s total global export value. Among them, mineral fuels experienced the fastest growth with a remarkable 42.7% increase from 2021, primarily driven by refined petroleum. Additionally, machinery and electrical equipment showed significant improvements with growth rates of 8.6% and 8.3%, respectively. In contrast, pharmaceuticals were the only product category among the top 10 to decline significantly, decreasing by -4.2% compared to the previous year.

4. The product generates the highest surplus for Singapore.

In general, Singapore achieved a trade surplus of $39.6 billion in 2022. This surplus decreased by -22% compared to the figure of $50.8 billion the previous year in 2021.

The following product groups from Singapore demonstrate positive net exports or trade surpluses. Net exports are defined as the total export value minus the total import value of a country.

In summary, net exports are an indicator showing the amount of money a country spends on goods or services abroad exceeding or falling short of the amount that the country spends on goods or services from abroad.

The latest statistical figures on Singapore’s exports by product groups are as follows:

• Electrical machinery, equipment: $26.2 billion (decreased by -9.9% compared to 2021)
• Machinery including computers: $9.7 billion (increased by 5.2%)
• Optical, technical, medical apparatus: $7.5 billion (decreased by -1.5%)
• Plastics, plastic articles: $7.1 billion (decreased by -6.4%)
• Other processed food: $5.9 billion (increased by 6.8%)
• Perfumes, cosmetics: $5.4 billion (decreased by -4.5%)
• Pharmaceuticals: $4.7 billion (decreased by -19.9%)
• Organic chemicals: $3.3 billion (decreased by -31.3%)
• Ships, boats: $2.4 billion (increased by 1398.9%)
• Other chemical goods: $2.1 billion (increased by 19.4%)

Singapore continues to maintain a positive net export in the electronics sector, especially consumer electronics. This reflects Singapore’s strong competitive advantage in the machinery and electrical equipment industry.

5. The products caused the largest trade deficit for Singapore.

Here are the sectors of Singapore’s exports leading to trade deficit or negative net exports, indicating foreign spending on Singaporean goods surpassing the spending of Singaporean importers for foreign products.

• Mineral fuels, including oil: -$39.6 billion (up 34.2% from 2021)
• Gems, precious metals: -$3.9 billion (up 822.7%)
• Animal/vegetable fats, oils, waxes: -$2.5 billion (up 29.8%)
• Aircraft, spacecraft: -$2.2 billion (up 175.8%)
• Iron, steel products: -$1.7 billion (up 37.3%)
• Vehicles: -$1.2 billion (up 5.6%)
• Iron and steel: -$1.1 billion (up 6.9%)
• Meat: -$1.04 billion (up 19%)
• Furniture, bedding, lighting, signs, prefab buildings: -$1.03 billion (up 2.4%)
• Dairy, eggs, honey: -$1.01 billion (up 11%)

This significant trade deficit is particularly linked to mineral fuels, especially crude oil and petroleum gas. This situation not only reflects Singapore’s competitive disadvantage in the international fossil fuel market but also presents crucial opportunities for improvement through innovation, especially in the renewable energy sector. 

6. The development potential of Singapore

6.1 The development potential of Singapore

Singapore is a developed economy with a high per capita GDP, strategically positioned in the Southeast Asian region. With advantages in geographical location, infrastructure, and a high-quality workforce, Singapore has significant potential for robust development in the export sector, especially to the U.S. market.

6.2 Advantages of Singapore in exporting to the U.S.

Strategic Geographical Location: Singapore is situated at the center of Southeast Asia, serving as a crucial trade gateway between Asia and the Americas. This geographical advantage helps Singapore save on transportation costs and delivery time, enhancing the competitiveness of exported goods.

Modern Infrastructure:Singapore boasts a state-of-the-art transportation and logistics system, including modern seaports, facilitating the smooth flow of goods.

High-Quality Workforce: Singapore has a young and dynamic workforce that is well-trained, meeting the increasing demands of the U.S. market.

Potential export sectors for Singapore to the U.S.:

Food and Beverages: Singapore, with its developed agricultural sector, produces various high-quality food products. Singaporean businesses can export these food and beverage items to meet the growing demands of U.S. consumers.

Pharmaceuticals: Singapore serves as a pharmaceutical manufacturing hub in Southeast Asia. Singaporean enterprises can export pharmaceutical products to the U.S., catering to the rising consumer demands.

Medical Equipment: Singapore is a key producer of medical devices in Southeast Asia. Businesses in Singapore can export medical equipment to the U.S., addressing the increasing needs of American consumers.

To export these products to the U.S., companies need to comply with strict U.S. regulations, such as those set by the FDA. These requirements cover product quality, manufacturing processes, labeling, and other FDA regulations.

Meeting FDA requirements is a challenge, especially for small and medium-sized enterprises (SMEs). Therefore, many businesses opt to outsource FDA registration procedures. GOL is a leading company providing FDA registration services in Singapore. With an experienced team well-versed in FDA regulations, GOL helps businesses save time and costs during the FDA registration process.

GOL provides comprehensive FDA registration services, including:

• FDA regulations consultation
• Registration document review
• Registration procedure execution
• Monitoring the registration process

With the support of GOL, Singaporean businesses can easily meet FDA requirements and successfully export their products to the U.S.