Electronic export surges 131.8% as AI-related data centre investment remains high

The growth is cushioning Singapore from the impact of Middle East tensions and trade tariffs.

Electronics and electrical product demand will continue to be the key drivers of Singapore’s export and manufacturing activity until the end of 2026, according to analysts.

Electronic non-oil domestic exports (NODX) surged 131.8% year-on-year (YoY) in August, following a 112% increase in July, supported by structural demand from digitalisation and AI adoption.

Barnabas Gan, group chief economist & head of market research at RHB Bank, said this is consistent with global semiconductor sales, which rose 135.1% YoY to $175.90b (US$137.9b) in July, reflecting strong chip demand, particularly from AI-related data-centre investment.

The AI-related demand has been supporting export growth across Asia, helping economies such as Singapore cushion the impact of Middle East tensions and US trade tariffs.

“With demand for semiconductors, ICs, disk media products and PCs expected to remain resilient, electronics should continue to underpin Singapore’s external sector and manufacturing performance,” Gan said.

Meanwhile, Nomura said NODX growth continues to pick up from July to August, rising to 34.3% YoY from 27.4% in the second quarter, which suggests the strong growth momentum has sustained into Q3, amidst the global tech uptrend and broadening AI-related demand.

“This, in turn, should boost manufacturing output in electronics-related segments, along with new capacity built, and generate positive spillovers to trade-related services,” Nomura said.

NODX to the US rose 91% on 26 August, whilst exports to China increased 70.3%, with electronics and specialised machinery amongst the key drivers. CGS International said the sharp increase in NODX to the US and China points to an AI-driven investment cycle rather than a broad-based recovery in consumer demand. 

"We believe that Singapore should continue benefiting given its role across the semiconductor and electronics supply chain although export growth may moderate from exceptionally high current rates as base effects rise," CGS International said.

RHB maintains its 2026 GDP growth forecast at 4.5%, whilst recognising a meaningful upside bias towards 5%. Nomura also maintains its above-consensus 2026 GDP growth forecast of 5.7% and expects GDP growth to hold up in H2, after a strong H1 outturn of 6.1% YoY, underpinned by multiple growth engines.