Electronics sector suffers as export competitiveness erodes

Export share will moderate.

HSBC's Trade Forecast Report today revealed that the percentage of electronic exports as a share of total exports will decline over the next fifteen years due to eroding export competitiveness.

"Exports of electronics are forecast to grow by 6% per annum on average over the period 2015-30, and a large component of this will be in the form of re-exports, as a loss of competitiveness has seen a number of domestic electronic producers move towards offshore production," said HSBC.

However, the government is still set to continue to incentivise business to invest in ICT, which will be met by growing imports of ICT goods, averaging around 8% a year over the forecast period.

“A loss of export competitiveness and limited productivity gains will weigh on growth going forward,” HSBC said.

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