Singapore’s central bank, the Monetary Authority of Singapore, warned that a slowdown in the global AI boom could sharply weaken growth, citing Chia Der Jiun, the authority’s managing director.

The MAS said global growth, investment and financial markets are deeply tied to semiconductor and data‑centre sectors; a major retrenchment in AI investment could cut business investment, semiconductor demand and create negative wealth effects, potentially tightening financial conditions. Asia’s chip stocks have already been battered as doubts about AI durability rise.

Even if AI spending yields productivity gains, inflation and energy demand could rise. Singapore’s economy grew 6 per cent in H1 2026, driven by a surge in technology sectors, while 70 per cent of export growth is now AI‑driven electronics, up from 46 % in 2024.

MAS also highlighted cyber threats from AI and future quantum computing, noting criminals use AI for sophisticated phishing and deepfakes. Vincent Loy, MAS chief technology officer, said the financial sector must respond urgently; a new task force will help institutions boost resilience.