SINGAPORE: Artificial intelligence-driven expansion of Singapore’s economy is projected to continue next year, though the pace of growth may slow down, the Monetary Authority of Singapore (MAS) said on Wednesday (Oct 14).
Growth should be supported by strong order backlogs and capacity expansions in AI-related production, the central bank said in its latest quarterly macroeconomic review.
While activity may moderate compared with the “exceptional pace” in 2026, it should remain a “principal driver” of growth, said MAS. Singapore’s economy grew 5.4 per cent in the third quarter of the year, after expanding 6.2 per cent in the second quarter, said the Ministry of Energy, Trade and Industry in its advance estimates on Wednesday.
“The technology-related sectors continued to expand robustly, accounting for around 75 per cent of overall (year-on-year) growth,” MAS said, describing the growth as “relatively concentrated”.
Tech-related sectors experienced “outsized expansion”, while non-tech and non-oil sectors saw “mixed” growth, the report said. The durability of the current economic expansion hinges on three key considerations, said MAS.