Singapore stocks rose this week before Singaporeans head to the polls. STI gained 0.6% to 3,845.14.

Market News

Singapore Factory Activity in April Records Steepest Fall Since Covid, Mirroring Regional Pullback

Singapore’s overall factory activity fell sharply last month, retreating into contraction territory and mirroring the regional pullback, as US President Donald Trump’s “Liberation Day” tariffs began to exact a toll on manufacturers.

The city-state’s Purchasing Managers’ Index (PMI) dropped to 49.6, shaving off one point from the previous month and ending a 19-month streak of expansion, data from the Singapore Institute of Purchasing and Materials Management (SIPMM) showed on Friday (May 2). A reading above 50 indicates expansion.

The electronics sector PMI, which was on a 17-month streak of expansion, also recorded a steep fall to 49.8 in the same period, down 1.1 points from March.

Singapore's Wilmar Posts Higher Quarterly Profit, Flags Tariff Uncertainty

Singapore-listed food conglomerate Wilmar International reported a 4% rise in first-quarter profit on Tuesday, and flagged increased market volatility from U.S. tariffs for the rest of the year.

Wilmar said its core net profit for the three months ended March 31 was $343 million, up from $328.4 million reported last year.

The company, one of the world's largest food producers, posted a higher core net profit on better performance from both its food products and plantation and sugar milling segments.

"The outlook for the rest of the year is expected to remain uncertain with increased volatility arising from the introduction of tariffs by the United States," Wilmar said in a statement.

Singapore Negotiating for US Concessions on Pharmaceuticals, Chips

Singapore is negotiating concessions for pharmaceutical exports to the U.S. while ensuring it still has access to high-end AI chips from the American market, said Trade and Deputy Prime Minister Gan Kim Yong.

Gan had a call with U.S. Secretary of Commerce Howard Lutnick on Friday and Lutnick expressed concern about export controls of chips "not just to Singapore, but generally" and wanted to explore "creative solutions" to strengthen bilateral trade, according to a transcript published by the trade ministry on Sunday.

"We took the opportunity to explain to Secretary Lutnick about Singapore’s export control system and how we have been working together with the U.S. counterparts in this area, to the extent that our law permits," Gan said.

U.S. Tariffs Will Cause Demand Shock to Singapore Economy: MAS

U.S. tariffs will have multiplier effects that will "generate a broader negative income and demand shock to the Singapore economy", the Monetary Authority of Singapore said in its macroeconomic review released on Monday.

As well as the direct impact of a 10% baseline tariff on Singapore's exports to the U.S., its second-largest export market, there will also be indirect effects from the tariffs levied on other countries, the central bank said.

The MAS said the tariffs were a production tax on producers and exporters that would impact corporate incomes and profits and constrain aggregate demand in the city-state.

The Week Ahead

Singapore will release its retail sales data for March next Monday.