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Singapore central bank flags AI investment boom as major uncertainty for 2026
MAS managing director Chia Der Jiun said AI-linked electronics exports drive over 70.0% of Asia’s export growth so far in 2026, up from 46.0% in 2024.
Singapore’s economic growth is expected to remain firm in the second half of 2026, but the Monetary Authority of Singapore says the sustainability of the AI investment boom is a key uncertainty, according to reporting from SCMP Economy based on remarks by MAS managing director Chia Der Jiun.
Chia said the Middle East conflict poses risks, while noting that for now global AI-related demand is “likely to continue to provide a meaningful boost” to Singapore, with other sectors growing close to trend.
The MAS released its annual report for the year ending March 2026 a day after it tightened policy settings for a second consecutive meeting due to inflation risks. Chia warned that a prolonged AI-driven cycle could lift inflation, while a pullback could weaken global growth through lower business investment, reduced semiconductor demand, and negative wealth effects.
He said AI-driven electronics exports now account for more than 70.0% of Asia’s export growth so far in 2026, up from 46.0% in 2024, and added that markets will increasingly seek signs that AI productivity gains translate into commercial revenue across the broader economy.