Singapore’s sovereign wealth funds are betting big on AI, but the central bank isn’t so sure
Having MAS that worries out loud and two reserve funds that hedge while they buy might be the most sensible set-up available
In July, Singapore's twin sovereign wealth funds, Temasek and GIC, delivered contrasting opinions on the future during their annual results. Both funds expressed their intention to invest heavily in artificial intelligence (AI). However, the Monetary Authority of Singapore (MAS) took a more cautious stance, questioning the wisdom behind such a bet.
Temasek and GIC, managing the majority of Singapore's reserves, believe that AI is a critical investment area. Their annual reports highlighted the potential of AI to drive innovation and economic growth, making it an attractive sector for their funds.
MAS, on the other hand, approached the topic with more skepticism. In its reports, the central bank expressed doubt about the viability of this investment, questioning whether the odds had been properly assessed. The remarks were delivered in a measured and unassuming tone, typical of a central bank's communication style.
Beyond the AI debate, the source also mentions other noteworthy developments. The Asia-Pacific aviation sector is seen by some as a promising opportunity, while Russia's strategic shift towards Asia has increasingly aligned with isolated regimes rather than larger economies. Lastly, a national accounting body's AI program was reported to attract over 15,000 sign-ups within just two months, indicating a significant level of interest and engagement in AI education and training.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
