Singapore’s central bank, the Monetary Authority of Singapore (MAS), has warned that uncertainty over sustaining massive investments in artificial intelligence represents a key risk to global economic growth and financial markets, according to its latest annual report.
MAS Managing Director Chia Der Jiun stated that Singapore’s economic growth should remain firm in the second half of 2026, but flagged the AI investment boom as a major uncertainty.
AI-driven electronics exports now account for more than 70% of Asia’s export growth in 2026, up from 46% in 2024.
Global AI-related demand is likely to continue to provide a meaningful boost to Singapore, according to the MAS report. However, Chia Der Jiun added that markets will increasingly look to commercial revenue growth to justify the financing risks, and such revenue growth will depend on early signs of AI productivity gains at the firm level broadening across the economy and a deepening of transformative applications.
The MAS also cited the Middle East conflict as a risk to global growth and financial markets. The annual report was released one day after the MAS tightened policy settings for the second consecutive meeting, citing inflation risks.