Singapore’s Exports Grow More Slowly in February 2026 Amid Geopolitical Uncertainty
Singapore’s exports in February 2026 recorded a 4% increase, falling short of market expectations and significantly lower than the 9.2% growth in January.
This development indicates that the recovery of global trade is slowing down, as geopolitical risks and rising global trade tensions continue to intensify.
According to data from Enterprise Singapore, the electronics sector remains the main growth driver of the economy.
Electronics Exports Surge on AI Demand
Singapore’s electronics exports rose 43.2% year-on-year in February.
Product categories that saw strong growth include:
- Data storage devices
- Integrated circuits (ICs)
- Personal computers
This surge is largely driven by global demand for artificial intelligence (AI) technologies, which has boosted demand for semiconductors and electronic components.
As a result, Singapore’s exports in February 2026 still maintained positive growth, despite weakness in other sectors.
Non-Electronics Exports Continue to Decline
In contrast, non-electronics exports fell by 6.9%.
Some categories that recorded notable declines include:
- Processed food
- Petrochemicals
- Non-monetary gold
This shows that Singapore’s economy is becoming increasingly dependent on high-tech industries, while many traditional manufacturing sectors are weakening.
Exports to Asia Rise, U.S. Market Declines
By market, Singapore’s exports in February 2026 showed clear divergence.
Exports to Asian economies increased strongly, including:
- South Korea
- Taiwan
- Hong Kong
Meanwhile, exports to:
- The United States
- Indonesia
declined.
Notably, non-electronics exports to the U.S. dropped sharply, while electronics exports increased rapidly, highlighting a clear sectoral contrast.
Geopolitical Tensions Impact Trade
The outlook for Singapore’s exports continues to be significantly affected by global geopolitical conditions.
The conflict in the Middle East has disrupted the Strait of Hormuz, a key shipping route that handles around 20% of global oil supply.
This raises concerns about:
- Supply chain disruptions
- Rising shipping costs
- Energy price volatility
Trade Risks from U.S. Investigations
Recently, the U.S. has launched trade investigations into Singapore and several other partners.
These investigations focus on:
- Excess production capacity
- Forced labor
Such actions could lead to higher tariffs in the near future, putting additional pressure on Singapore’s export activities.
Singapore’s “Growth Paradox”
Overall, February’s data reflects a growth paradox in Singapore’s economy.
While:
- The electronics sector is booming due to the AI wave
At the same time:
- Traditional manufacturing sectors are declining
This poses a significant challenge for Singapore in maintaining stable growth, especially given its heavy reliance on global trade and international supply chains.
