Singapore growth to hold firm but AI boom a 'major uncertainty', central bank says
Singapore's economic growth should remain firm in the second half of 2026, although a major uncertainty is the sustainability of the AI investment boom, the head of its central bank said on Tuesday. The Middle East conflict also poses risks, he added.
Monetary Authority of Singapore (MAS) Managing Director Chia Der Jiun said, speaking at the release of the central bank's annual report, that the city-state's economy is expected to remain firm through the second half of 2026.
Chia said global AI-related demand was likely to continue providing a meaningful boost to Singapore, but that the sustainability of the investment cycle remained the biggest source of uncertainty. He added that the Middle East conflict also posed additional risks.
The remarks come after recent turbulence in global chip stocks. Analysts are watching closely how resilient Singapore's finance and technology sectors would be to any slowdown in the AI investment cycle.
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