The Business Times
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NEWS ANALYSIS

Bubble or nothing? Looking at the AI boom as part of a cycle

Singapore’s economic strategy must be ready for structural artificial intelligence-related risk

Summarise

Annabeth Leow

Published Wed, Oct 14, 2026 · 07:39 PM
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    • The city-state has a clear role to play in ensuring that the business and societal take-up of AI is intentional and targeted.
    • The city-state has a clear role to play in ensuring that the business and societal take-up of AI is intentional and targeted. PHOTO: YEN MENG JIIN, BT

    [SINGAPORE] Even if artificial intelligence-related market activity is unlikely to be a bubble, as the Monetary Authority of Singapore (MAS) seems to suggest – much less one on the verge of popping – Singapore’s economic strategy must still be built to accommodate its regular ups and downs.

    In its latest macroeconomic review on Wednesday (Oct 14), Singapore’s central bank assessed that “downside risks from an AI-cycle downturn” do not appear immediate.

    Yet, the expectation that AI-led economic growth is cyclical still behooves planners to prepare for when the wheel of fortune inevitably turns – even if they do not think it imminent.

    Artificial IntelligenceMonetary Authority of SingaporeSingapore economyMonetary policy

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