Rise in global trade to benefit Singapore most, says S&P

HIGHLY trade-dependent Singapore stands to benefit more than any other Asian economy should a US-led increase in global trade occur this year, according to an analysis by rating agency Standard & Poor's which says that it is "fairly upbeat" about a US recovery in the second half of the year.

According to the S&P analysis, Asian economies are still highly dependent on exports to advanced nations despite hopes in the wake of the global financial crisis that many of these economies had become "decoupled" from mature economies and despite growing domestic demand.

"We believe that the possibility of the region's demand rising to offset weaker demand from the advanced economies is limited at best," says the report from a team led by the agency's Singapore-based Asia-Pacific chief economist Paul Gruenwald.