SINGAPORE – Singapore upgraded its full-year non-oil domestic exports (NODX) forecast after a 27.4 per cent surge in the second quarter of 2026 – led by demand for its electronic goods from the global AI infrastructure build-out.
NODX in the first quarter had grown by 9.6 per cent, said Enterprise Singapore on Aug 11.
The government agency upgraded its NODX forecast for 2026 to 14 per cent to 16 per cent, up from an earlier forecast of 3 to 5 per cent, reflecting the exceptionally strong first-half performance, led by electronics.
Electronics shipments in the April to June period surged by 88.1 per cent year on year, following growth of 57.8 per cent in the first three months of 2026.
Within the electronics segment, shipment of integrated circuits, or semiconductors, surged by 91.9 per cent, while disk media exports soared by 182.5 per cent.
Demand for semiconductors and electronic devices needed to power AI workloads at data centres worldwide has boomed in 2026, helping economies across Asia, including Singapore, mitigate the negative impacts of the Iran war and US trade tariffs.
The strength of the AI-powered export demand has resulted in a surge in Singapore’s manufacturing output, pushing overall economic growth to an average of 6.1 per cent in the first six months of 2026.
The Ministry of Trade and Industry (MTI) on Aug 11 upgraded its GDP growth forecast for 2026 to 4.5 per cent to 5.5 per cent, from the previous range of 2 to 4 per cent, reflecting the better-than-expected performance of the economy in the first half, as well as an improved outlook due to the acceleration in global AI-related capital expenditure.
Still, there are worries about the impact of financial market volatility on AI infrastructure spending.
MTI warned that sudden risk-off sentiments regarding global AI-related capital spending could trigger sharp market corrections, with potential spillovers to broader economic activity.
A Monetary Authority of Singapore survey of private forecasters in June showed 60 per cent of respondents flagged an AI bubble burst as a downside risk for the economy, with 15 per cent citing it as their top concern.
