Singapore's re-exports is exposed to trade war impacts as 20% of it go to China and US.
This chart from CEIC showed that Singapore’s re-exports in 2017 are widely exposed to the trade wars as 13.6% of its re-exports goes to China whilst 6.1% goes to the US.
Maybank Kim Eng believes that Singapore’s role as a global trade and transportation hub made it more vulnerable to the looming trade wars as the Lion City’s US and China re-exports contributed a sizable 20% of Singapore’s re-exports in 2017.
“The trade war will hit not just the trade-related sectors, such as wholesale trade and transportation & storage, but also the financial sector.” Maybank explained.
The firm noted that business loans to general commerce and transportation and storage sectors collectively account for about 20% of total loans.
According to the Ministry of Trade and Industry, the US-China bilateral trade made up 1.1% of Singapore’s gross domestic product (GDP).
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