Electronic export surges 131.8% as AI-related data centre investment remains high

The AI-related demand has been supporting export growth across Asia, helping economies such as Singapore cushion the impact of Middle East tensions and US trade tariffs.

“With demand for semiconductors, ICs, disk media products and PCs expected to remain resilient, electronics should continue to underpin Singapore’s external sector and manufacturing performance,” Gan said.

Meanwhile, Nomura said NODX growth continues to pick up from July to August, rising to 34.3% YoY from 27.4% in the second quarter, which suggests the strong growth momentum has sustained into Q3, amidst the global tech uptrend and broadening AI-related demand.

“This, in turn, should boost manufacturing output in electronics-related segments, along with new capacity built, and generate positive spillovers to trade-related services,” Nomura said.

NODX to the US rose 91% on 26 August, whilst exports to China increased 70.3%, with electronics and specialised machinery amongst the key drivers. CGS International said the sharp increase in NODX to the US and China points to an AI-driven investment cycle rather than a broad-based recovery in consumer demand. 

“We believe that Singapore should continue benefiting given its role across the semiconductor and electronics supply chain although export growth may moderate from exceptionally high current rates as base effects rise,” CGS International said.

RHB maintains its 2026 GDP growth forecast at 4.5%, whilst recognising a meaningful upside bias towards 5%. Nomura also maintains its above-consensus 2026 GDP growth forecast of 5.7% and expects GDP growth to hold up in H2, after a strong H1 outturn of 6.1% YoY, underpinned by multiple growth engines.