THE value of Scotch whisky exports in the first half of this year was down sharply on the same period of 2013, as sales to the key US market and the Asian hub of Singapore dropped, industry figures have shown.

This fall in exports comes at a time when the Scotch whisky industry is investing very heavily to increase capacity to meet anticipated growth in demand from overseas.

The drop in exports to Singapore, the hub for Scotch whisky exports to a raft of countries in Asia, was in part the result of weaker demand in China, amid an "anti-extravagance" drive and a slowdown in growth in the Communist state.

The first-half figures, published yesterday, show exports of Scotch whisky in the opening six months of this year, at £1.77 billion, were down by 11 per cent on the figure of £1.99bn for the same period of 2013.

A spokeswoman for the Scotch Whisky Association industry body, which published the export figures yesterday, expressed disappointment at the drop in overseas sales.

This drop meant Scotch whisky exports in the first half of 2014 were down slightly on the figure of £1.79bn for the opening six months of 2012.

However, the SWA spokeswoman was hopeful about the outlook, and cited the heavy investment by Scotch producers in capacity as grounds for such optimism.

The value of Scotch whisky exports to the US came in at £328m in the first half of this year, down 16 per cent on the figure of £391m for the opening six months of 2013.

However, Scotch whisky exports to the US had, in the opening six months of 2013, been up by 29 per cent on the first half of 2012. And the US remained by far the biggest market for Scotch whisky exports, by value, in the first half of this year.

The SWA spokeswoman believed the fall in first-half exports to the US this year was in part the result of temporary de-stocking.

She said: "I think it is partly to do with people de-stocking. We think there was a lot of people stocking up, expecting demand to be higher. We hope it is a short-term thing."

Exports to Singapore in the first half totalled £94m, down 46 per cent on the opening six months of 2013.

The SWA spokeswoman said: "Singapore is a hub for the whole of Asia. A lot of what goes into Singapore ends up in China and other Asian markets."

She added that the fall in exports to Singapore was related in large part to a fall in Scotch whisky exports to China, noting this had been quite well documented in terms of statements from distillers.

The spokeswoman cited the impact of the Chinese government's anti-extravagance drive and the Communist country's "economy not performing as well as it was" in terms of growth.

However, Scotch whisky producers enjoyed a sharp rise in first-half exports to Taiwan. Exports to Taiwan in the opening six months of this year, at £91m, were up by 39 per cent on the same period of 2013.

And Scotch whisky producers also enjoyed progress in the French market, their second-largest in terms of value of exports. The value of exports to France in the first half, at £210.7m, was up 6 per cent on the same period of last year.

Asked if the overall fall in the value of Scotch whisky exports in the first half was a concern, given the amount of extra capacity being brought on by distillers, the SWA spokeswoman replied: "It is a concern it has fallen. We would obviously prefer there wasn't a fall in exports this year...We are obviously disappointed to see a decline in the first six months. Hopefully, in the longer term, things will pick up."

She cited the strength of sterling as a factor, alongside the macroeconomic situation in China and uncertainty in some South American markets, such as Brazil, where there is a presidential election next month.

Exports of Scotch whisky to Brazil in the first half were, at £40.1m, down 19 per cent on the same period of last year. However, while expressing disappointment at the fall in overall first-half exports of Scotch, the SWA spokeswoman said: "Obviously, the expectation is things will improve...I think that is reflected in the amount of investment in the industry."

She added that the levels of investment in capacity signalled distillers were ­optimistic about future demand.

The value of Scotch whisky exports fell marginally last year from record levels in 2012 , as Far Eastern markets including China proved tougher, according to SWA figures published in April. The total value of Scotch whisky exports last year, at £4.26 billion, was down about £14m or 0.3 per cent from the all-time high of £4.27bn achieved in 2012.