Trade Sectors Driving Economic Growth and SMEs' Contribution

Mr Thomas Chua Kee Seng asked the Minister for Trade and Industry in respect of advance estimates that the Singapore economy grew by 1.7% on a year-on-year basis in the second quarter of 2015 (a) which are the specific sectors driving this growth; and (b) to what extent have the small and medium enterprises (SMEs) contributed to this growth.

Based on preliminary estimates released on 11 August, the Singapore economy grew by 1.8% on a year-on-year basis in the second quarter of 2015, slightly higher than the 1.7% based on the advance estimates.

The wholesale and retail trade and finance and insurance sectors were the key drivers of growth in the second quarter. The wholesale and retail trade sector expanded by 5%, following the 5.3% growth in the first quarter. Growth was driven primarily by the wholesale trade segment, which was supported, in turn, by an increase in domestic exports in volume terms, especially in oil products. At the same time, the finance and insurance sector expanded by 7.1%, extending the 7.8% growth in the previous quarter. Growth was largely

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underpinned by the robust expansion in the fund management segment.

The breakdown of gross domestic product (GDP) growth into the contribution of SMEs and non-SMEs is not available. However, SMEs contributed around 50% of GDP in 2014.