AI demand sends Singapore’s exports soaring 24.2pc in July

Singapore's non-oil domestic exports surged by 24.2 percent in July, government data revealed on Monday, following a 20.8 percent increase in June, driven by soaring demand for AI-related products, according to Enterprise Singapore. The government had recently raised its growth forecast for 2026 due to the strong appetite for AI-linked goods.

The surge in exports was primarily fueled by a massive 112 percent rise in electronic shipments, surpassing the 105.1 percent growth observed in June. Disk media products experienced the most significant increase, with shipments soaring by an astonishing 339.1 percent, followed by integrated circuits (120.8 percent) and personal computers (84.5 percent).

However, non-electronic exports witnessed a decline of 2.3 percent, primarily due to a sharp drop in pharmaceutical exports (-56.7 percent), as well as declines in petrochemicals (-22.5 percent) and food preparations (-17.9 percent) exports. Singapore's government remains optimistic about the potential of global AI demand to safeguard the city-state's economy from the repercussions of the Middle East conflict.

Although AI investment has exceeded expectations, the government believes the impact of the Iran war on the broader global economy has been less severe than initially anticipated.