However, the export boom rests on a single, narrowing driver: AI.

News Economy Staff Reporter , Singapore Published: 28 minutes ago File photo Monday Wrap: AI-powered fleets, pre-let offices, and Singapore's startup ascent However, the export boom rests on a single, narrowing driver: AI.Last week in Singapore Business Review, logistics companies put artificial intelligence (AI) to work across their fleets, the Grade A office market tightened to the point of forcing companies to pre-lease space yet to be built, and Singapore climbed to fourth in the global startup ecosystem rankings.Singapore's logistics companies are deploying AI-powered fleet management systems to track vehicles, optimise routes, and monitor driver performance, helping operators extract more from existing fleets at a time when high vehicle ownership costs make expanding them a costly option.

JustCo, which listed on SGX in May raising about $100m, said large companies now account for more than 53% of workstation occupancy across its 54 centres in 12 Asia Pacific cities, as rising Grade A CBD rents continue to push corporations toward flexible workspace.The scarcity of premium office space has become severe enough that companies are pre-leasing Singapore offices up to 18 months before buildings are completed, with no major Grade A CBD project expected after Shaw Towers until 2028 and rents forecast to rise between 3% and 7% this year.Singapore climbed from 16th to 4th in the global startup ecosystem rankings in five years, according to a report by Arthur D.

Little and the Singapore Economic Development Board, with public investment under the Research, Innovation and Enterprise 2030 framework set to rise from $28b to approximately $37b in the next cycle.However, RHB warns that the city's strong export performance, with NODX growing 20.7% year-on-year in June in its tenth consecutive month of gains, rests increasingly on AI-related electronics, whilst gold, petrochemicals, and specialised machinery remain weak and non-electronics NODX is forecast to fall around 12% year-on-year in the second half of 2026.

The Monetary Authority of Singapore is expected to hold its policy stance at its July meeting, with RHB describing growth and inflation risks as broadly balanced, core inflation holding at 1.4% in May, and the existing S$NEER band seen as offering sufficient room to absorb shifts in economic conditions without adjustment.Lastly, system loan growth of 2% to 3% is expected across Singapore's banking sector in Q2, according to DBS Group Research, but net interest margins face downward pressure, with OCBC and UOB each forecast to see a 2 to 4 basis point decline from the previous quarter, whilst wealth management is flagged as the standout performer across the three banks.

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