Singapore's economic growth decelerated in the second quarter, with the pace of expansion easing even as artificial intelligence demand continued to drive output in the semiconductor sector.
The slowdown highlights the growing vulnerability of the city-state's economy to fluctuations in global tech investment cycles.
The broader semiconductor industry is grappling with renewed uncertainty.
Major global chipmakers have seen their shares decline sharply, reflecting investor concerns that the rapid pace of AI-related capital expenditure may be moderating.
The sentiment shift has been particularly pronounced among memory chip producers, with SK Hynix recording its largest single-day share price drop in nearly two decades on the Korean Exchange earlier this month.
This divergence between Singapore's domestic GDP performance and the global semiconductor market underscores the complex transmission mechanisms at play.