‘Unprecedented’ AI buildout drove Singapore’s sharpest non-oil exports surge in over two decades: Analysts

The US, home to many of the leading AI chip designers, cloud service providers and hyperscalers – massive cloud computing companies that build and operate large-scale data centres – saw demand closely tied to AI infrastructure investment.

China, despite geopolitical restrictions, continues to require chips, storage and electronic components across consumer, enterprise and industrial applications as a large electronics manufacturer.

“Singapore fits into this picture as a trusted and highly connected node in the global semiconductor supply chain, especially in specialty manufacturing, memory, storage, equipment, materials, assembly, test and regional supply chain coordination,” said Mr Wong.

Indonesia was the exception, contracting 26.9 per cent. OCBC’s Ms Ling attributed the drop to weak domestic demand, likely compounded by volatility in the Indonesian rupiah.

WILL THE SURGE HOLD?

Analysts said non-oil export growth is likely to remain positive in the near term, though monthly figures may not sustain the same pace.

A 38.4 per cent year-on-year increase is “very strong” and may be difficult to repeat as base effects rise in the second half of the year, with potential volatility from inventory cycles, geopolitics, tariffs and capacity constraints, Mr Wee said.

Mr Wong said electronics exports “look durable” as long as hyperscaler capital spending holds.

“We’re witnessing an unprecedented AI buildout that requires ongoing hardware refresh at a pace much faster than any previous technology cycles, which will support continued demand as long as those commitments hold,” he said.

But with demand increasingly concentrated in a narrow set of products and customers, that concentration creates sensitivity.

“If the hyperscaler spending gets revised down, the impact will be felt fairly quickly. It’s not the base case right now, but it’s a vulnerability worth keeping an eye on,” he said.