Latest Singapore Economy News & Market Updates

Singapore Economy News

Spectrum Economics Sees Stronger-Than-Expected Growth in 2025

Singapore’s GDP grew 4.8% in 2025, surpassing earlier forecasts and outperforming previous years’ growth. The strong result was driven by broad-based expansion in key sectors such as manufacturing and electronics, with exports supported by sustained demand for AI-related semiconductors and tech products. Seasonally adjusted growth in the fourth quarter climbed to 5.7% year-on-year, contributing to the overall annual expansion. This underscores the resilience of the city-state’s export-oriented economy amid ongoing global uncertainties.

Monetary Authority of Singapore Keeps Policy Unchanged

On January 29, 2026, the Monetary Authority of Singapore (MAS) maintained its current monetary policy stance by keeping the Singapore dollar’s nominal effective exchange rate policy band unchanged. MAS noted upside risks to inflation and growth following the stronger-than-expected 2025 economic performance, keeping the door open for potential policy tightening later in the year if growth and inflation pressures persist.

Singapore to Invest Heavily in Public AI Research Through 2030

The Singapore government announced a plan to invest over S$1 billion (~$779 million) in public artificial intelligence research up to 2030. The initiative aims to bolster the nation’s competitiveness in AI, support talent development, and encourage responsible, resource-efficient AI adoption. Part of this funding will also accelerate AI integration across industries, strengthening Singapore’s role as a regional innovation hub.

JP Morgan Lifts STI Targets on Economic Confidence

Analysts at JP Morgan raised their base-case target for the Straits Times Index (STI) to 6,000 and a bull-case to 6,500, reflecting growing confidence in Singapore’s economic resilience. This adjustment signals optimism about future market performance underpinned by robust corporate earnings and macroeconomic stability.

India’s BPCL Sets Up Trading Desk in Singapore

India’s state-owned Bharat Petroleum Corporation Limited (BPCL) announced it will open a trading desk in Singapore to expand its footprint in crude, liquefied natural gas (LNG), and refined fuel markets. This move aims to strengthen BPCL’s commercial presence in a key energy hub and explore new regional trade opportunities.