China Galaxy: Singapore manufacturing industry may be supported by AI demand

Economists at China Galaxy International stated in a report that in the short term, the demand for servers and data centers related to artificial intelligence may provide support for Singapore's manufacturing industry. Output of electronic products is expected to continue being driven by structural technological demands, while output of pharmaceuticals may remain volatile due to inherent production cycles. However, these economists caution that geopolitical tensions may put pressure on manufacturing activities by weakening external demand, disrupting supply chains, and raising input costs. China Galaxy International maintains its forecast for a 5.0% increase in Singapore's manufacturing output by 2026.