Minister Lim Hng Kiang’s Written Reply to Parliament Question on Trade Sectors Driving Economic Growth (SME’s Contribution to growth)

Question

Mr Thomas Chua Kee Seng: To ask the Minister for Trade and Industry in respect of advance estimates that the Singapore economy grew by 1.7 per cent 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 SMEs contributed to this growth.

Written Answer (attributed to Mr Lim Hng Kiang, Minister for Trade and Industry)

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

The wholesale & retail trade and finance & insurance sectors were the key drivers of growth in the second quarter. The wholesale & retail trade sector expanded by 5.0 per cent, following the 5.3 per cent 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 & insurance sector expanded by 7.1 per cent, extending the 7.8 per cent growth in the previous quarter. Growth was largely underpinned by the robust expansion in the fund management segment.

The breakdown of GDP growth into the contribution of SMEs and non-SMEs is not available. However, SMEs contributed around 50 per cent of GDP in 2014.