The Plan. In the next three years, 16 electronics and precion engineering (EPE) firms will come together to form six consortia and seal $60 million worth of deals and expand their presence around the world, writes Robin Chan for The Strait Times.

What It Means. Intentional Enterprise (IE) has helped combine the 16 companies’ resources to capitalize on economies of scale so as to be an effective and efficient competitor when pursuing markets in the United States, Europe, Japan, Russia, China, and Thailand.

The Singapore ETFs which may benefit from the increased trade and new deals include:

• iShares MSCI Singapore Index (EWS): down 2.5% year-to-date.

• NETS FTSE Singapore Straits Times Index (SGT): down 1.7% year-to-date

In Singapore, predictions are that the country will dip into a recession in the current quarter for the first time since 2002. Exports and manufacturing have slumped, and tourism has fallen off, reports Shamim Adam for Bloomberg. GDP fell 6% in the second quarter from the preceding three months. Data for the third-quarter is expected next month.

If the numbers aren’t good, the country will be in a “technical recession,” defined as two consecutive quarters of negative growth.

iShares MSCI Singapore Index (EWS) may be in for a bit of a slowdown, along with NETS FTSE Singapore Straits Times Index (SGT). EWS is down 32.7% year-to-date; SGT is down 15.8% since its July 22 inception.

Thailand is facing projected growth of 5.1% for 2008, down from 5.6%. Trisanat Kongkhunthian for Thomson Financial News reports that the economy in Thailand is facing a projected gross domestic product of 4-5% for 2009. iShares MSCI Thailand Investable Market Index (THD) could be facing better days, too, if this turns out to be the case. THD is down 37.2% since its April 1 inception.

Last week, Spain unveiled a budget plan that forecasts a slimming deficit and moderate growth. The budget saw growth in this economy, which slid 1% in 2009, from 1.6% in 2008, reports Reuters. The European Commission expects Spain to enter its first recession in 15 years by the end of the year.

iShares MSCI Spain Index (EWP) could be affected, either way. It’s down 29.4% year-to-date.

After the Dow Jones lost more than 340 points, Europe’s FTSE-100, Germany’s DAX and France’s CAC all fell by mid-afternoon. In Moscow, reports Louise Watt for the Associated Press, the RTS benchmark was down more than 6% to lows not seen in more than two years.

Asia wasn’t immune, either. In Japan, the Nikkei 225 sank 2.8%, while the Hong Kong Hang Seng index fell more than 2% to its lowest point in more than a year. India, Australia and Singpapore also fell sharply.

Among the funds that track these major benchmarks are:

• NETS S&P/ASX 200 (AUS), down 20.4% since April 10 inception
• NETS Hang Seng China Enterprises Index Fund (SNO), down 21% since May 22 inception
• NETS CAC40 Index Fund (FRC), down 14.9% since April 16 inception
• NETS FTSE Singapore Straits Times Index Fund (SGT), down 8.9% since July 22 inception

Obviously, market turbulence is not just confined to U.S. borders, and international markets and ETFs are showing major signs of distress. The global benchmarks are enough to make any investor wince, with negatives across the board: iShares S&P Europe 350 Fund (IEV) is down 27.5%, while the FTSE China 25 Index Fund (FXI) has plummeted 43%.

These numbers make Gary Gordon at ETF Expert ponder if the bigger bear right now is financials or international. The U.S. credit crisis has penetrated much of the globe now. Remember that the dollar has been in recovery, and that a turnaround takes much longer than a crisis. Sit tight and stay tuned, and remember to be opportunistic on an international level. Here are some other numbers:

• Dow Jones Industrials: 21% off its high of Oct. 9, 2007
• S&P 500: 21% off its high of Oct. 9, 2007
• NASDAQ: 20.7% off its high of Oct. 31, 2007

Global ETFs:

• iShares MSCI South Korea Index (EWY), 46.9% off its Oct. 31, 2007, high
• Vanguard FTSE All-World ex US ETF (VEU), 25.5% off its Oct. 31, 2007, high

Financials:

• Financial Select Sector SPDR (XLF), 44.8% off its June 1, 2007, high
• iShares Dow Jones US Financial Services (IYG), 46.3% off its Feb. 20, 2007, high
• KBW Insurance Fund (KIE), 30.8% off May 16, 2007, high

Overall, it’s a tough call. Investors should protect themselves by staying out until the trend shows up again and these funds cross above their 200-day moving averages before getting back in.

Singapore’s economy contracted during the second quarter, and the government is calling for a fall in exports for the first time since 2001. The economy contracted at a general rate of 6% during the second  quarter,  giving the year-on-year economy a growth rate of a mere 2.1%, reports Reuters.

It is evident that the sluggish U.S. economy has hurt the Asian economies, such as Singapore. Non-oil exports to the U.S. fell 21% in the second quarter and dropped 12% to the E.U.  Weakened demand in the major economies, has added to inflationary pressures.  A turn around for the country could be dependent upon the U.S.’ economic health

ETFs associated with Singapore include:

• iShares MSCI Singapore (EWS), A heavy lean toward the financial sector at 51.43% followed by telecommunications at 14.3%; down 14.4% year-to-date
• NETS FTSE Singapore Straits Times Index (SGT), 48% in financials, 12.43% in telecommunications; down 13.4% for past three months