Sectoral Performance

Except for financial services, all sectors registered slower growth compared with the previous quarter (see Annex 1). In particular, the manufacturing sector contracted by a sharp 9.6 % after hitting double-digit growth in 1999 and 2000.

Manufacturing Sector

Construction Sector

The Construction Sector continued its positive growth in the second quarter of the year, albeit at a slower pace of 0.4% compared to 1.3% last quarter. The growth was supported by civil engineering works and non-residential public sector projects such as MRT extension, and school building and upgrading projects. However, certified payments declined further by 3.4%, dragged down by lower level of activity in private sector construction. Total contracts awarded fell a 64%, a further weakening of the 18% contraction in the first quarter, reflecting poor construction demand in both the public and private sectors.

Wholesale & Retail Trade Sector

The Wholesale & Retail Trade Sector contracted by 1.0% in the second quarter, down significantly from the 7.1% growth in the first quarter. Entrepot trade remained affected by the weak global economic outlook and the continued slowdown of the global electronics cycle. As a result, non-oil re-exports growth receded to 3.9% in the second quarter, substantially lower than the 17% in the last quarter. Similarly, domestic trade was affected by the bleak economic outlook and cautious consumer sentiments.

On the back of a dip in visitor arrivals, the Hotel & Restaurants Sector shrank by 0.9% in the second quarter following marginal growth in the quarter before. The Transport & Communications Sector expanded by 2.7%, a further slowdown from the 4.7% in the first quarter of 2001. In tandem with the slower trade activities, container throughput contracted at the same rate as last quarter (13%). The lower level of trade activities also caused total air cargo handled to slump by 12%. The communications sub-sector continued to benefit from the liberalisation of the telecommunications industry. This can be seen in the continued spike in the number of mobile phone subscribers as well as the stable increase in IDD usage.