The Monetary Authority of Singapore has flagged the sustainability of the global AI investment boom as a major uncertainty for financial stability, according to remarks by managing director, Chia Der Jiun on Tuesday.
Speaking at the central bank's annual report media conference, Chia highlighted AI-driven electronics exports accounted for more than 70% of Asia's export growth year-to-date, up from 46% in 2024.
While near-term investments are backed by committed orders and strong hyperscaler cash flows, there is still greater uncertainty over the medium term, with hyperscalers and model builders requiring large equity and debt financing in the coming years.
Moreover, markets will need to look at commercial revenue growth to justify financing risks.
Escalating energy, chip costs, raw material supply bottlenecks, regulatory uncertainty and intense competition among model providers were cited as clear risks to AI investment monetization.
