The Monetary Authority of Singapore (MAS) has identified the sustainability of the artificial intelligence investment boom as a primary uncertainty for the global economy, while maintaining that Singapore’s own growth trajectory remains firm for the second half of 2026.
The central bank’s leadership highlighted the dual risks posed by the AI cycle: a prolonged boom could fuel inflationary pressures, whereas a sudden retreat in capital expenditure might significantly dampen worldwide economic activity.
7% year-on-year in the second quarter of 2026, driven largely by this technology-led surge.
This assessment comes as Singapore’s economy continues to outpace regional peers, buoyed by a robust manufacturing sector heavily linked to AI-related demand.
Recent data showed the economy expanded by 5.7% year-on-year in the second quarter of 2026, driven largely by this technology-led surge.
The central bank’s comments underscore a cautious optimism, acknowledging the strength of current momentum while flagging the volatility inherent in the tech investment cycle.
The MAS chief’s remarks add nuance to the broader macroeconomic debate surrounding the AI infrastructure build-out.