SINGAPORE, Aug. 18 (Xinhua) -- Singapore's non-oil domestic exports (NODX) are likely to remain resilient through the rest of 2026, supported by a sustained global artificial intelligence (AI) infrastructure buildout and strong electronics demand, prompting economists to raise their full-year growth forecasts.
In a note on Monday, Maybank Investment Bank upgraded its NODX growth forecast for Singapore to 18 percent in 2026 from 15 percent previously, above Enterprise Singapore's 14 percent to 16 percent projection.
NODX growth remained robust in July, accelerating to 24.2 percent year on year from 20.8 percent in June, bringing the growth in the first seven months of 2026 to 19.4 percent, supported by continued global AI-driven demand for electronics exports.
"We continue to see the global AI infrastructure buildout as a durable tailwind for Singapore's exports," said Maybank.
It said the AI hardware cycle was unlikely to reverse abruptly even if hyperscalers became more cautious about spending amid concerns over cash burn.
Data centers are multi-year projects with substantial sunk costs, while facilities under construction will still require chips, storage and networking equipment, it added.
RHB Investment Bank also in a note on Monday raised its 2026 NODX growth forecast to 15.5 percent from 11.5 percent, citing stronger-than-expected year-to-date performance and sustained strength in electronics exports.
The research house said the economic impact of the Middle East conflict had been less severe than initially anticipated, while the global technology cycle and Singapore's electronics sector remained resilient despite geopolitical uncertainties.
"Looking ahead, the ongoing tech upcycle and sustained AI-driven demand should continue to underpin exports and manufacturing activity through the remainder of the year," it added.
UOB Economics and Markets Research likewise expects AI-related demand to remain a key export driver in the second half.
The electronics purchasing managers' index rose to 52.4 in July from 52.2 in June, with stronger new export orders and order backlogs signaling resilient demand, according to the research house's note on Monday.
Meanwhile, it opined that substantial capex commitments by major hyperscalers and technology firms through 2026 and 2027 should continue to underpin demand for memory and compute chips, alongside AI-related hardware and peripherals.
However, it sees tariffs remaining a key risk, with potential tougher U.S. enforcement against goods deemed to involve transshipment potentially adding uncertainty to Singapore's export outlook. ■
