SINGAPORE, 25th May, 2026 (WAM) — Singapore’s economy grew six percent year-on-year in the first quarter as demand skyrockets for artificial intelligence chips, the government said Monday.
As a major electronics hub, the city-state has seen a significant increase in the production of memory chips and server components essential to the data centres powering AI tools.
Due to the “better-than-expected” growth, the trade ministry said it would maintain its forecast for the economy to expand 2.0 to 4.0 percent in 2026.
The first-quarter growth, extending the expansion of 5.7 percent in the December 2025 quarter, was “driven by strong performance of the wholesale trade, manufacturing and finance and insurance sectors”, the ministry said in a statement.
“AI-related demand has remained robust and should continue to support the growth of regional economies throughout the year”, the trade ministry said.
Source: Emirates News Agency