Singapore’s economy grew for the first time in a year, soaring 20 percent in the second quarter, a sign Asia is emerging from the global slump.
GDP jumped an annualized, seasonally adjusted 20.4 percent in the three months through last month from the previous quarter, the Trade and Industry Ministry said yesterday in a statement. It said GDP fell 3.7 percent from year earlier after a 9.6 percent drop in the first quarter.
The ministry now expects the city-state’s economy to shrink between 4 percent and 6 percent this year, better than its previous forecast of a contraction between 6 percent and 9 percent.
“The Singapore economy is back, and back with a vengeance,” HSBC senior Asia economist Robert Prior-Wandesforde said in Singapore. “We very much doubt that today’s Singapore GDP release will be the last in Asia to provide a sizable upside surprise.”
Singapore’s economy — which relies on exports, finance and tourism — had contracted the previous four quarters as it reeled from a collapse in global trade triggered by the financial crisis.
An annualized 16.4 percent drop in the October to December period was the nadir of its deepest recession since splitting from Malaysia in 1965.
Singapore is the first major Asia economy to report second quarter GDP results. The second quarter GDP estimate was calculated using data largely from April and May and is subject to revision.
The ministry revised its first quarter economic figures to an annualized contraction of 12.7 percent from its initial estimate in April of a 19.7 percent contraction.
A surge in pharmaceutical production helped boost growth in the second quarter. Manufacturing fell 1.5 percent from a year ago compared to a 24 percent contraction in the first quarter.
Construction rose 18 percent in the second quarter while services dropped 5.1 percent.
A Chinese freighter that allegedly snapped an undersea cable linking Taiwan proper to Penghu County is suspected of being owned by a Chinese state-run company and had docked at the ports of Kaohsiung and Keelung for three months using different names. On Tuesday last week, the Togo-flagged freighter Hong Tai 58 (宏泰58號) and its Chinese crew were detained after the Taipei-Penghu No. 3 submarine cable was severed. When the Coast Guard Administration (CGA) first attempted to detain the ship on grounds of possible sabotage, its crew said the ship’s name was Hong Tai 168, although the Automatic Identification System (AIS)
An Akizuki-class destroyer last month made the first-ever solo transit of a Japan Maritime Self-Defense Force ship through the Taiwan Strait, Japanese government officials with knowledge of the matter said yesterday. The JS Akizuki carried out a north-to-south transit through the Taiwan Strait on Feb. 5 as it sailed to the South China Sea to participate in a joint exercise with US, Australian and Philippine forces that day. The Japanese destroyer JS Sazanami in September last year made the Japan Maritime Self-Defense Force’s first-ever transit through the Taiwan Strait, but it was joined by vessels from New Zealand and Australia,
CHANGE OF MIND: The Chinese crew at first showed a willingness to cooperate, but later regretted that when the ship arrived at the port and refused to enter Togolese Republic-registered Chinese freighter Hong Tai (宏泰號) and its crew have been detained on suspicion of deliberately damaging a submarine cable connecting Taiwan proper and Penghu County, the Coast Guard Administration said in a statement yesterday. The case would be subject to a “national security-level investigation” by the Tainan District Prosecutors’ Office, it added. The administration said that it had been monitoring the ship since 7:10pm on Saturday when it appeared to be loitering in waters about 6 nautical miles (11km) northwest of Tainan’s Chiang Chun Fishing Port, adding that the ship’s location was about 0.5 nautical miles north of the No.
SECURITY: The purpose for giving Hong Kong and Macau residents more lenient paths to permanent residency no longer applies due to China’s policies, a source said The government is considering removing an optional path to citizenship for residents from Hong Kong and Macau, and lengthening the terms for permanent residence eligibility, a source said yesterday. In a bid to prevent the Chinese Communist Party (CCP) from infiltrating Taiwan through immigration from Hong Kong and Macau, the government could amend immigration laws for residents of the territories who currently receive preferential treatment, an official familiar with the matter speaking on condition of anonymity said. The move was part of “national security-related legislative reform,” they added. Under the amendments, arrivals from the Chinese territories would have to reside in Taiwan for
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