Singapore business, finance and trade news, every Monday.
Chip Boom Forces MTI to Double Growth Forecast
The Ministry of Trade and Industry more than doubled its 2026 growth forecast to 4.5-5.5 per cent (that’s up from as low as 2 per cent, previously), after the economy saw 6.1 per cent year on year growth in the first half. Second-quarter GDP was bumped up to 5.9 per cent from an advance estimate of 5.7 per cent, with manufacturing output seeing a lift of 12.5 per cent as networking and memory chip orders tied to the global AI buildout filled production lines in the electronics and precision engineering sectors. Wholesale trade rose 8.3 per cent on machinery and equipment sales, finance and insurance was up 6.2 per cent on fund management fees and bank credit growth. F&B services was the outlier, contracting 1.5 per cent as residents traveled out faster than tourists came in. Enterprise Singapore has also raised its non-oil domestic exports forecast to 14-16 per cent, from 3-5 per cent. At least one bank has already pushed its full-year forecast above the top of MTI's new range.
Read more: Business Times, Business Times, Business Times
Stocks Reach Fifth Straight Quarter of Gains
The Straits Times Index closed Friday at 5,743.59, up 23% this year after a similar run in 2025, putting Singapore stocks on track for a fifth consecutive quarter of gains, which would be the longest winning streak in a decade. JPMorgan raised its target to 6,500 on August 11, implying about 13% upside, saying the setup was "Goldilocks." DBS, OCBC and UOB have led the rally, all three nailing second-quarter earnings that beat forecasts.
Read more: Bloomberg, Investing.com
White House Flags Tariff Transshipments
Two days after the White House's Aug 13 "Great Transshipment Scam" report put Singapore on the list of more than 40 economies Chinese exporters use to dodge US tariffs, MTI says that the city-state has "zero tolerance for fraud" and "will not hesitate to take firm and decisive action." The report lumped Singapore with the EU, Japan, South Korea and Vietnam as "attractive opportunistic targets" for transshipment because of preferential US market access. There are signs of enforcement - on Aug 15 Singapore Customs charged a company and three people over an alleged scheme to falsely declare the origin of bedding products and other goods shipped to the US to sidestep American import duties. Maybank's Chua Hak Bin expects Singapore to tighten rules-of-origin enforcement and step up checks in response to the US pressure.
Read more: CNA (MTI statement), Business Times (economist forecast)
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ComfortDelGro Taxi Profits Drop 40%
Net profit at ComfortDelGro was down 19.7 per cent to S$85.1 million ($63 million) for H1 2026, even though revenue was up 5.7 per cent to S$2.6 billion ($1.9 billion) on bus and rail contracts in Australia, the UK, France, New Zealand and Sweden. The drag came from taxi and private hire services, where operating profits collapsed more than 40 per cent. CEO Cheng Siak Kian says the group has given up matching ride-hailing platforms on fleet size, focusing instead on niches like hospital transfers and premium travel through UK acquisitions Addison Lee and CMAC. Shares closed at S$1.35 ($1.00) before results, down 9 per cent year-to-date.
Read more: Business Times
AI Lifts Revenue and Hiring, But Not Profits
Companies using AI saw revenue jump 16 percent and headcount grow 8 percent within a year of adoption, but productivity and profit gains mostly haven't shown up yet. The payoff is so far skewing toward workers aged 35 to 44 who earn S$7,000 to S$10,000 a month ($5,400 to $7,700), because that’s the group best placed to offload routine tasks and focus on work requiring human judgment. Finance and insurance was the standout sector, with 21 percent revenue growth and a 73 percent jump in profits, as well as 21 percent growth in average local wages.
Read more: Business Times
Life Insurers Write S$3.63 Billion in New Premiums in H1
Singapore life insurers wrote S$3.63 billion ($2.8 billion) in new premiums in H1 2026, up 21.4 percent from S$2.99 billion a year earlier, with investment-linked policies jumping 24.2 percent to S$1.59 billion. GDP growth of 6.3 percent in Q1 and a revised 5.9 percent in Q2 has savers reaching for longer-dated products, with participating policies also climbing 25.4 percent to S$903 million. Insurers paid out more than S$10.6 billion in claims, maturity benefits and health disbursements in the first half, up from S$6.4 billion a year earlier, largely driven by maturing policies.
Read more: Business Times
Government Sends Checks to 2.4 Million Adults
Payments are going to arrive from September 9, with more than 2.4 million adult citizens getting S$400 ($311) to S$600 ($467) apiece under a nearly S$1 billion ($778 million) package first announced at Budget 2026 and topped-up in April. The payout depends on home annual value. Someone whose home has an annual value up to S$15,000 and assessable income up to S$22,000 should expect to get the full S$600, while those in homes valued above S$31,000 with income up to S$100,000 get S$400. No application is needed.
Read more: Business Times
Baby Bonus Preview Coming to National Day Rally
Ahead of the Marriage and Parenthood Reset Workgroup's full report in early 2027, chair Indranee Rajah says a "first wave" of measures will be pulled forward for PM Lawrence Wong to detail at the August 23 National Day Rally. The interim package targets the cost of raising children and access to affordable infant care and childcare, issues that came up repeatedly in consultations with Singaporeans. Indranee said the early rollout was about not wanting to "lose time" on falling birth rates, with more recommendations to follow once the fuller review wraps.
Read more: CNA
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