Both Singapore and Taiwan are experiencing significant export growth, primarily driven by the global demand for electronics and AI-related products. DBS Group Research forecasts Singapore's non-oil domestic exports (NODX) to rise for the seventh consecutive month in March 2026, accelerating to 10.3% year-on-year from 4.0% in February. This growth is attributed to robust electronics exports, which continue to outperform other sectors due to global AI tailwinds. Non-electronics exports may have rebounded as Lunar New Year base effects faded, but petrochemicals remain under pressure from a naphtha supply crunch linked to Middle East conflicts [1].
In Taiwan, ING’s Chief Economist for Greater China, Lynn Song, reports that March trade data far exceeded expectations, with exports and imports surging and the trade surplus more than doubling year-on-year in the first quarter of 2026. Taiwan's trade balance reached a five-month high of USD 21.3 billion, and the 1Q26 trade surplus soared to USD 53.0 billion, up 124.2% YoY. Tech-related exports now represent 84.0% of total exports in 1Q26, up from 80.4% in 2025 and 73.2% in 2024. This performance has prompted ING to upgrade its 1Q26 GDP forecast to 11.5% YoY from 10.2%, and its full-year GDP forecast to 8.2% YoY from 6.7% [2].
Market implications are substantial, as both economies are benefiting from the global tech boom and AI investments. Taiwan's trade surplus, which more than doubled in 1Q26, is expected to contribute significantly to GDP growth, echoing the impact seen in 4Q25 when net exports added 11.9 percentage points to GDP growth. However, both Singapore and Taiwan face risks related to energy supply disruptions. Singapore's petrochemical exports are under pressure due to a naphtha supply crunch from Middle East conflicts [1], while Taiwan's outlook is contingent on resolving energy shortages, particularly those linked to Iran, to avoid production impacts [2].
Forward-looking statements from ING suggest that Taiwan's economic growth can absorb higher energy prices as long as the global tech boom persists, but actual energy shortages could pose a significant risk. The outlook remains positive, with further upgrades possible if supply disruptions are limited [2].
CONCLUSION
Singapore and Taiwan are experiencing strong export-driven growth, fueled by global demand for electronics and AI-related products. Both economies have upgraded their growth forecasts, but energy supply risks remain a concern. Market sentiment is positive, with high impact expected as long as tech sector momentum continues.