Quotes from Barclays Capital:
-Oil-related sectors are likely to remain a drag on Singapore's IP in the near term, even as we expect Singapore to be a considerable net beneficiary of lower oil prices overall. Meanwhile, although we still expect the electronics sector to see some benefit from stronger US capex, the pass-through is likely to remain markedly weaker than in the past, given Singapore's role as a marginal producer in the Asian electronics supply chain.
-Disappointing exports and the ongoing property market correction led us to lower our 2014 growth forecast 40bp, to 3.1%, earlier in the month.
-Against this backdrop, the SGD NEER has fallen further from the upper bound of the trading band in recent months, briefly breaking through our estimated midpoint of the band on 19 November for the first time since March, and since breaking through on three additional days. We continue to expect the SGD NEER to retrace below the midpoint of the band in the months ahead, closer to what we see as its fair value
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