FIRST ELECTRONICS SECTOR BOOSTS SINGAPORE’S INDUSTRIAL PRODUCTION
Electronics to carry the manufacturing sector in Q1 2021
Singapore’s industrial production grew 8.6% over the first part of the year, driven by the electronics sector, according to Moody’s Analytics. Moody’s Analytics said that almost 20% YoY surge of the electronics sector comes on the back of a heightened demand for semiconductors due to a global shortage in the automobile sector. “Together with heightened demand from 5G markets and cloud services, the electronics boom will carry the manufacturing sector in the first quarter of the year,” it said. HSBC Global Research economist Yun Liu agreed with Moody’s analysis, but countered that electronics saw a pullback in its strong momentum, falling 9% MoM. She added that the almost 20% YoY growth that the sector saw was due to its relatively low base last year. Liu said that the growth in IP was supported strongly by rebound in pharmaceutical production which saw a jump of 85.4% MoM after falling sequentially in December. “On a MoM basis, this was led by impressive growth in pharmaceuticals. However, on a YoY basis, this was almost entirely thanks to ongoing strength in semiconductors. Yes, base effects are partly playing a role, but it’s not because of “conventional” Lunar New Year distortions. Rather, electronics production was in a relatively weaker position in 1Q20, but pharma came from a high base during the same period,” Liu added. Both analysts agreed that strong manufacturing growth is expected to support the economic rebound into 2021, with the manufacturing sector seto to expand firmly in the year whilst serving as bedrock to Singapore’s growth. Liu predicts that the economy will grow by 6.5% in 2021, one of the fastest in the region.
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SINGAPORE BUSINESS REVIEW | JUNE 2021
ACTS to quicken movement of shipped goods
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he ASEAN Customs Transit System (ACTS), officially launched in November 2020, is a distributed online IT system that makes movement of goods in transit through ASEAN countries quicker and easier. It was developed with technical and financial support from the European Union. With it, businesses are enabled to make single Customs transit declarations without needing to make repeated Customs declarations or change vehicles at the border of each country they cross. Its main features include: single electronic Customs transit goods declaration; single guarantee valid for the whole regional transit journey; single vehicle for the departure to destination; significant concessions for Authorised Transit Traders through application of simplified procedures; automated real time information availability at all Customs points during the journey, standard harmonised electronic data for message exchanges; streamlined Customs controls across countries; minimal transit border checks; mutual licence recognition; and full end-to-end computerisation of ACTS operations. In an exclusive interview with Singapore Business Review, Bruno Selmoni (head of road freight and multimodal ASEAN and South Asia, DHL Global Forwarding Management APAC) said Singapore can benefit from this programme. How will ACTS impact companies, particularly in Singapore? The full implementation of the ACTS will contribute to the list of benefits by lowering costs, and enhancing efficiency and reliability for road freight movements in the region by harmonising the cross-border regulatory processes and standards imposed across different ASEAN member economies. The backbone of the ACTS is the use of a regional computerised customs transit management system which allows the customs administrations in each ASEAN Member State to efficiently
Businesses can make single Customs transit declarations without needing to make repeated declarations or change vehicles at the border of each country
ACTS improves the ability of Customs authorities to detect and prevent smuggling
capture and track the status and movement of goods under the ACTS. Instead of having to transfer cargo or container at each country’s checkpoint, forwarders save time and resources by completing the journey with a single truck, single customs declaration and single banker’s guarantee across participating countries under the ACTS. [It] will also lower costs over time, whilst enhancing efficiency and reliability for road freight movements in the region by harmonising the cross-border regulatory processes and standards imposed across different member economies. The benefits of an integrated seamless customs framework would not be reaped by logistics providers, but also by exporters and importers of participating ASEAN countries. How is ACTS relevant alongside other economic initiatives for ASEAN? Whilst free trade agreements such as the Regional Comprehensive Economic Partnership and Comprehensive and Progressive Agreement for Trans-Pacific Partnership provide the foundation to stimulate trade among signatories, a single cross-border transit regime like the ACTS greases the wheels for intraASEAN economic development. The ACTS is an integral part of the ASEAN leaders’ decision to create the AEC to introduce the free flow of goods, services, investment and skilled labour, and freer flow of capital in the region. For the AEC to take root, the establishment of a fully harmonised Customs and transport environment is of the highest priority. Whilst not directly connected to China’s Belt and Road (B&R) initiative, the ACTS has the potential to ease shipping processes for businesses based in markets connected to the B&R, and are shipping to ASEAN or vice versa.
