Special Features
Singapore’s Imports From UAE Expands By 39% In Q1 2010
With oil being a major import of Singapore from the UAE, the former reported a 39% year-on-year increase in its imports from the UAE in the first quarter of 2010, after a 16% slump during the same period a year ago, indicated a study released recently by the Dubai Chamber of Commerce & Industry.Singapore is a major oil processing centre, importing crude oil and supplying many countries with processed oil and oil products. The country also provides oil storage facilities for processed oil and oil products. As global economic recovery leads to increasing demand for oil, prices have started to recover from the slump in early 2009, the study revealed.
Imports in 2008 registered a 39% growth, reaching SGD1.7bn. The slowdown in 2009 pulled the total for the same period to only SGD1.4bn, before showing signs of recovery in 2010. On the other hand, exports had declined by 15% in 2008 to a total of SGD2.3bn, narrowing down the trade balance from a year ago level of SGD1.6bn to just SGD595m.
The 22% increase in exports to SGD2.8bn the following year widened trade balance again to SGD1.4bn. Although exports declined slightly by 4% to SGD2.7bn in 2010, trade balance remained highly favourable to Singapore at SGD714m. Compared to the previous year’s figure, nonetheless, 2010 trade balance represented a narrowing down of 48%.
Oil continues to dominate Singapore’s imports from UAE UAE supplies about 7% of Singapore’s imports of Petroleum oil and products. With oil prices reaching peak levels in 2008, Singapore’s imports of the products from the UAE reached SGD8.0bn, accounting for 90% of its total imports from the country. As global crisis dampened demand for oil, leading to substantial fall in prices in 2009 oil prices fell to comparatively low levels in 2009. Singapore’s import statistics from the country for the year showed a reduction of 38% to SGD5.0bn.
It is worth noting that the 2010 figure was even higher than the 2008 level, indicating increasing demand for the oil and oil products as global economic recovery proceeds. Although, remaining very much lower, imports of other products likewise posted an increase of SGD41m, to a total of SGD232m.
Jewellery and electrical/electronic products topped Singapore’s exports to the UAE Singapore exports to the UAE expanded significantly in recent years. In 2009, the UAE was the 18th largest export market of Singapore, ahead of Belgium and France. Likewise the UAE has become Singapore’s single largest export market in the Middle East.
Singapore’s top exports to the UAE are pearls and precious stones/metals. In 2007, exports of the products reached SGD1.7bn, going up to SGD2.8 a year later. However, the value declined to SGD2.7bn in 2009. On a quarter-on-quarter basis, the Q1-2010 export value of SGD933m was 50% higher than the previous year’s record, heightening expectations for much highest total exports for the whole year. It is also worth noting that despite the global crisis, the Q1-2009 value of SGD623m was higher by 14% than the corresponding exports in the same quarter of the preceding year.
Despite the global crisis, exports of Electrical/Electronic equipment and parts also posted an 18% increase in 2009, to reach a total value of SGD479m in the first quarter of the year. However, an 11% decline in the same quarter in 2010 pulled down the total export value of the products for the period to SGD428m.
Other major products exported to the UAE Q1-2010 were Machinery/Mechanical appliances and part, valued at SGD478m, posting a growth of 8% over previous year’s value for the same period. Over the last three years, export value of the products during the first quarter had been increasing, global crisis withstanding.
The combined export value of the three major export groups reached SGD1.8bn, representing 68% of total exports during the first quarter of 2010 and posting a year-on-year growth of 12% for the quarter and continuing the increasing pattern posted since 2008.
Prospects for continued relations bright Singapore has the broadest network in Asia. It has standing free trade agreements with US, Japan, European Free Trade Association and other key economies in Asia. Likewise, it has signed FTAs with UAE, Qatar and Oman. In addition to the network, the country maintains a very favourable climate for businesses and investors, providing various financial assistance schemes and tax incentives to attract new investments and support growth of businesses. It also has the most modern shipping, transport and logistics infrastructure and systems in East Asian. Given UAE’s strength and capacity for new ventures and foreign investments, a wide range of opportunities for cooperation are open to the two countries.
