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Singapore’s AI boom is lifting GDP. Who gets carried along?

Closing the productivity gap between sectors will require more than fiscal transfers

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    • The SCCCI’s annual survey reveals what headline GDP misses: Businesses are operating, but with less room to absorb shocks.
    • The SCCCI’s annual survey reveals what headline GDP misses: Businesses are operating, but with less room to absorb shocks. PHOTO: YEN MENG JIIN, BT

    Tan Chong Huat &

    Tan Poh Hwee

    Published Fri, Aug 21, 2026 · 07:00 AM

    SINGAPORE is doing what a small, open economy is supposed to do when the world enters an artificial intelligence investment boom: It is selling the picks and shovels.

    The first half-year numbers are impressive. The economy grew by 6.1 per cent year on year, with second-quarter growth reaching 5.9 per cent.

    The government has raised its full-year growth forecast to between 4.5 and 5.5 per cent, citing stronger-than-expected global AI capital expenditure.

    Artificial IntelligenceSingaporeSingapore GDPSingapore productivity

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