# Singapore’s AI boom is lifting GDP. Who gets carried along? > Source: > Published: 2026-08-20 23:00:00+00:00 # Singapore’s AI boom is lifting GDP. Who gets carried along? Closing the productivity gap between sectors will require more than fiscal transfers SINGAPORE is doing what a small, open economy is supposed to do when the world enters an artificial intelligence investment boom: It is selling the picks and shovels. The first half-year numbers are impressive. The economy grew by 6.1 per cent year on year, with second-quarter growth reaching 5.9 per cent. The government has [raised its full-year growth forecast](https://www.businesstimes.com.sg/singapore/singapore-raises-2026-growth-forecast-4-5-5-5-q2-growth-revised-5-9) to between 4.5 and 5.5 per cent, citing stronger-than-expected [global AI capital expenditure](https://www.businesstimes.com.sg/singapore/iran-conflict-has-hit-inflation-more-growth-mas-says-any-growth-drag-will-be-outweighed-ai-boost). [TRENDING NOW](/pulse?ref=trending-now) Japan Home closing outlets; staff say Valu$ taking over operations Timah Partners lands S$60 million facility from lenders including UOB, RHB ComfortDelGro’s Zig to buy S$10 million worth of BYD cars for private-hire fleet How BYD disrupted Singapore’s car market – and why the strategy is turning on itself