As we develop our taste buds for Asia, let’s look at Singapore.
What is the most popular dish in Singapore? Hainanese chicken rice is my all-time favorite ... (Ironically, it is not available in Hainan, China.)
I love the Lau Pa Sat, a big food court located right in the heart of Singapore's central business district, where I would sample various dishes at the vendor stalls. Food is not just a passion in Singapore; it is a tourist attraction touted by the Singapore Bureau of Tourism.
Getting back to business, Singapore’s July non-oil domestic exports (NODX) increased by 18.2 percent year over year, after increasing 28.5 percent year over year in June.
For folks in the know, Singapore is more than just a trans-shipment port, a gateway from Asia to the rest of the world.
Singapore is also known for pharmaceutical manufacturing. While the data is fairly volatile, Singapore counts on this segment critical to its growth. One drawback is that Singapore’s pharmaceutical exports can post large swings due to the production and maintenance schedules of the various manufacturing plants.
Electronics exports (37 percent of total NODX) increased 25.7 percent on an annual basis.
What is not commonly known is that, in terms of export destinations, exports to Europe continue to remain strong, while we start to see clearer signs of a slowdown in U.S. demand.
Exports to Europe increased 14.3 percent in July after increasing 23.2 percent in June.
Exports to China bounced back while exports to the United States registered another monthly decline.
I am extremely bullish on Singapore and track the country and its actively traded stocks regularly. I believe that Singapore will grow at 16.5 percent for 2010 in GDP.
While we may see a small slowdown due to the global growth declining, I do not believe this will be more than 1 percent overall.
I expect the Singapore economy to be in a solid position to withstand the external demand slowdown in the coming quarters.
In particular, I expect loose financial conditions to remain, and together with a strong labor market that is poised to spur wage growth, I believe this backdrop will remain supportive of domestic demand.
Tourism, too, will remain strong as Chinese and Indians with newfound wealth will continue to flock to Singapore to enjoy its offerings.
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