Breaking
UMNO-PAS cooperation only to seize Anwar's power, using Malay unity as excuse – AmanahMalaysia knocked out of Merdeka Cup women's semifinalsOutrage as China programmer’s toilet death ruled non-work-related for being ‘not at desk’Social assistance spending rises 6.1% in 2025PalawanPay targets physical card rollout in Q4Kelas Sekejap expands AI learning app to schools and enterprisesGoogle offers 12-month free AI Plus subscription to Malaysian studentsPoverty rate falls to single digits in the Philippines as incomes outpace thresholdsChinese insurer Ping An eyes Hong Kong ETFs as Beijing greenlights cross-border investmentSickKids discloses data breach exposing employee and job applicant detailsGitLab’s critical CVE-2026-19478 is under active exploitation within days of disclosure.Khazanah affirms governance push after third-quarter board meetingQR code payments launched for ShopeePay users in ChinaBanjarbaru delays school start times as haze worsensLuxury sales drop more than 10% in China as tax crackdown bitesCDL net profit surges 230.7% in first half on Lumina Grand recognitionTrade Minister sets US$25 billion Trade Expo Indonesia 2026 targetTeladan Group swings to RM9.31 million profit in 2QFY2026 on higher progressive billingsAI Living @ i-City to launch in Shah Alam with four agenciesNevada approves 8,000 robotaxis for Tesla, Uber and WaymoUMNO-PAS cooperation only to seize Anwar's power, using Malay unity as excuse – AmanahMalaysia knocked out of Merdeka Cup women's semifinalsOutrage as China programmer’s toilet death ruled non-work-related for being ‘not at desk’Social assistance spending rises 6.1% in 2025PalawanPay targets physical card rollout in Q4Kelas Sekejap expands AI learning app to schools and enterprisesGoogle offers 12-month free AI Plus subscription to Malaysian studentsPoverty rate falls to single digits in the Philippines as incomes outpace thresholdsChinese insurer Ping An eyes Hong Kong ETFs as Beijing greenlights cross-border investmentSickKids discloses data breach exposing employee and job applicant detailsGitLab’s critical CVE-2026-19478 is under active exploitation within days of disclosure.Khazanah affirms governance push after third-quarter board meetingQR code payments launched for ShopeePay users in ChinaBanjarbaru delays school start times as haze worsensLuxury sales drop more than 10% in China as tax crackdown bitesCDL net profit surges 230.7% in first half on Lumina Grand recognitionTrade Minister sets US$25 billion Trade Expo Indonesia 2026 targetTeladan Group swings to RM9.31 million profit in 2QFY2026 on higher progressive billingsAI Living @ i-City to launch in Shah Alam with four agenciesNevada approves 8,000 robotaxis for Tesla, Uber and Waymo
Economy

Singapore tightens policy twice in 2026 to curb imported inflation

The Monetary Authority of Singapore raised its policy settings in April and July after the Middle East conflict pushed up energy prices, even as the city-state’s economy grew 6% in the first half of 2026.

Source: Monetary Authority of Singapore · August 7, 2026 at 5:18 AM · AI-assisted report

Single-source

SINGAPORE, 7 AUGUST 2026 —

Listen to this article

DomainFork Audio · read aloud

The Monetary Authority of Singapore raised its policy settings in April and July after the Middle East conflict pushed up energy prices, even as the city-state’s economy grew 6% in the first half of 2026.

At the MAS Annual Report 2025/2026 media conference on 28 July 2026, managing director Chia Der Jiun said the central bank had maintained an appreciating stance through the second half of 2025 and into January 2026. It then tightened in April as energy and commodity prices rose.

Chia said the April move had placed policy in a favourable position heading into a stronger inflationary environment. A second calibrated adjustment in July sharpened the Singapore dollar’s appreciation against incoming inflationary pressures.

“Inflation is forecast to step up further in July and stay elevated over the next few quarters before easing in the second half of 2027,” he said.

MAS Core and CPI-All Items inflation are projected to average 1.5–2.5% in 2026. Core inflation climbed from below 1.0% in 2025 to 1.4% in the first quarter of 2026 and 1.5% in the second, according to the report.

Strong AI investment across data centres, chips and computing infrastructure has underpinned resilient global trade and industrial production, even as tariffs and geopolitical shocks weighed on parts of the economy. Singapore’s technology-linked sectors offset double-digit contractions in energy-intensive segments such as chemicals manufacturing, delivering headline growth of 6% year-on-year in the first half of 2026 compared with 5% in the second half of 2025.

Chia warned that the sustainability of the AI investment boom remains a key uncertainty for global growth and financial stability. AI-connected firms now account for roughly 40% of the S&P 500’s market capitalisation and more than 30% of the MSCI EM Asia Index, while representing 87% of new venture capital funding in US markets.

“Revenue growth will in turn depend on early signs of AI productivity gains at the firm level broadening across the economy,” he said.

Malaysia’s semiconductor and data-centre supply chain benefits from sustained AI-related investment, given the country’s role as a regional assembly and test hub for global chipmakers. Sustained AI capital expenditure could lift demand for Malaysian-made components and contract manufacturing services, though the MAS statement did not cite a direct link to its policy decisions.

The MAS said it would remain vigilant to risks to price stability and volatility in the Singapore dollar nominal effective exchange rate, noting that any abrupt reassessment of AI investment payoffs could trigger market volatility.

Related: MAS · Singapore

Malaysia Impact

Global development — watch for knock-on effects on oil prices, the ringgit, and KLCI risk sentiment.

Reporting based on Monetary Authority of Singapore. Figures and claims are subject to revision as the story develops. DomainFork publishes editorial context, not investment advice — see our editorial standards.