AI demand supports Singapore NODX, but risks remain: analysts

eToro warns that growth is becoming increasingly concentrated.

Singapore’s non-oil domestic export growth (NODX) is likely to remain supported by global demand for chips and AI-related hardware, although its increasing reliance on the electronics supply chain presents longer-term risks, analysts said.

Nomura economists Euben Paracuelles and Yiru Chen said June’s 20.7% YoY NODX growth remained strong despite slowing from 38.4% in May.

They attributed the moderation mainly to volatile pharmaceutical and non-monetary gold exports. Excluding these segments, export growth accelerated to 33.8% from 31.2%.

Electronics NODX rose 105.1%, led by a 115.4% increase in integrated circuit exports and a 222% rise in disk-drive shipments. Nomura expects the electronics sector to remain supported by broadening AI-related demand and the global semiconductor cycle.

The firm maintained its 4.6% Singapore GDP growth forecast for 2026 and identified further upside risks after the economy expanded 6% in the first half. Its projection is above the 4% consensus forecast and the Ministry of Trade and Industry’s 2% to 4% forecast range.

Meanwhile, eToro market analyst Zavier Wong said Singapore’s export growth has become increasingly concentrated in chips, disk media and computers linked to data-centre investment.

He attributed the current strength to spending by major US cloud providers, whose AI infrastructure expansion continues to support demand for Singapore’s chip and hardware exports.

However, Wong warned that other export segments, including gold, petrochemicals and specialised machinery, remained weak. This could leave Singapore’s export growth vulnerable once the expansion in global AI infrastructure spending begins to level off.

If you've been wondering whether SBR could work for your company — yes, probably.

A lot of the companies we partner with started as readers. They'd been following our coverage for a while, saw their own customers and competitors in it, and eventually asked the obvious question: could we do something with you? The answer is usually yes. The shape of it depends on what you're trying to do.

The options are broader than most people assume — thought leadership articles, sponsored content, industry summits across Southeast Asia, regional awards programmes, podcasts, and media placements in print and digital. Some partners use one channel; most use a mix. We figure out the right combination by starting with your brief, not with our rate card.

So if the question has been on your mind, here's the easy way to ask it.

We'll tell you honestly whether we can help, and how. It's a better use of everyone's time.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia