Singapore Growth Forecast Upgraded as PC Prices Set to Rise

Singapore's Ministry of Trade and Industry has upgraded its economic growth forecast for 2026 to between 4.5 per cent and 5.5 per cent, citing better-than-expected performance in the first half of this year.

This is a surprise move that reflects an acceleration in global AI-related capital expenditure, according to the ministry.

JPMorgan Chase has also raised its targets for Singapore stocks, predicting the Straits Times Index (STI) could hit 7,000 over the next 12 months and outperforming Hong Kong's Hang Seng Index.

Despite this optimism, PC prices are expected to rise due to a worsening shortage of graphics cards and other key components, which may drive up costs and slow consumer demand.

City Developments Limited (CDL) has reported almost triple its first-half net profit to $300 million, driven by strong demand for residential property in Singapore, but Hotel Properties Limited (HPL) fell into the red with a net loss of $39.1 million.