If the “crisis of confidence” in the market translates into more companies worrying about jobs and investments, that will trickle down to Singapore, but if global trade is resilient, Singapore will not feel much of an effect, he said, adding that the government has tools at its disposal to support the economy.
Mr Kumar of Maybank noted that Singapore’s fiscal position is strong and its diversified economy – spanning finance, manufacturing and trade – provides “substantial resilience against systemic shocks”.
“Singapore’s diversified economy, well-capitalised banking sector and robust regulatory frameworks serve as important stabilisers that help cushion against such disruptions,” he said.
GLOBAL STOCK MARKET CRASH UNLIKELY
Still, analysts are not expecting a global stock market crash owing to stretched valuations in tech and AI at the moment.
For one, AI technology is still at its infancy, but is advancing at a rapid pace.
Mr Chong Yik Ban, a research analyst at Phillip Securities Research, said that while concerns about an AI bubble are growing, he does not foresee a crash.
“No one can forecast future AI applications with certainty and declare AI investment is a waste, especially when generative AI is still in its early stages of widespread adoption,” he said.
