AI investment slowdown could weigh on economic growth, Gan says - Singapore Business Review

Singapore's Deputy Prime Minister and Minister for Trade and Industry Gan Kim Yong warned that a sharp decline in global artificial intelligence (AI) infrastructure investment could negatively impact ... Read original →

A slowdown in global AI investment is triggering ripple effects across the semiconductor and manufacturing supply chain. Reduced capital inflows will directly impact upstream tech sectors such as AI chips, servers, and storage, especially pressuring advanced-node foundries and packaging firms. Singapore, as a regional tech hub, faces rising financing costs amid tighter global conditions, dampening corporate willingness to invest in AI infrastructure. While government initiatives like 'National AI Missions' aim to boost industrial capabilities, they cannot offset the immediate capital contraction. Companies are urged to accelerate localization and technology optimization strategies. In the long term, AI adoption will reshape manufacturing, driving upgrades in precision engineering and electronics, but sustained funding tightness could slow innovation cycles and erode Singapore’s competitive edge in smart manufacturing.