logo
AI could help Singapore sustain 3% annual GDP growth despite ageing population: Morgan Stanley

AI could help Singapore sustain 3% annual GDP growth despite ageing population: Morgan Stanley

Photo: Freepik/frimufilms
SINGAPORE: Artificial intelligence (AI) could help Singapore maintain annual GDP growth of 3% over the long term, even as it faces the structural challenge of a shrinking workforce, according to a new report by Morgan Stanley Research.
Released this month, the report points to AI as a pivotal force for sustaining national productivity and ensuring Singapore remains one of the fastest-growing developed economies.
'Singapore's deliberate and coordinated approach to AI is beginning to bear fruit,' the report said, noting that more than 70% of companies covered in the study have already implemented AI technologies in some form.
AI adoption is strongest in four main areas: internal productivity tools, customer-facing services, supply chain optimisation, and product development. These technologies, the report suggests, are helping firms automate repetitive tasks, improve customer experience, and make better, data-driven decisions.
The report categorises companies into two broad groups. First are the 'AI Enablers' or firms like Singtel, Keppel, and Sembcorp Industries which are building the infrastructure necessary for widespread AI deployment, such as next-generation data centres, energy systems, and high-speed connectivity networks.
The other group are the 'AI Adopters' such as Grab, Sea Group, Singapore Airlines, and ST Engineering, which are applying AI to sharpen operations and drive innovation.
While most companies surveyed remain cautious about attaching hard numbers to the financial returns of AI investment, some reported early signs of growth in earnings and capital expenditure.
Despite this, the report flagged several risks on the horizon such as cybersecurity, AI misuse, and workforce disruption. 'The need to retrain and upskill workers will be essential,' the report read, highlighting government programmes like SkillsFuture that aim to bridge emerging skill gaps.
Morgan Stanley also described Singapore's approach as a potential model for other small, advanced economies navigating similar demographic and technological shifts.
'Singapore shows how strategic planning and cross-sector commitment can enable a country to integrate emerging technologies and turn structural challenges into growth opportunities,' the report noted. document.addEventListener("DOMContentLoaded", () => { const trigger = document.getElementById("ads-trigger"); if ('IntersectionObserver' in window && trigger) { const observer = new IntersectionObserver((entries, observer) => { entries.forEach(entry => { if (entry.isIntersecting) { lazyLoader(); // You should define lazyLoader() elsewhere or inline here observer.unobserve(entry.target); // Run once } }); }, { rootMargin: '800px', threshold: 0.1 }); observer.observe(trigger); } else { // Fallback setTimeout(lazyLoader, 3000); } });
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Latest Mouser Series Navigates the Balance of AI and Human Expertise in Engineering
Latest Mouser Series Navigates the Balance of AI and Human Expertise in Engineering

Straits Times

timean hour ago

  • Straits Times

Latest Mouser Series Navigates the Balance of AI and Human Expertise in Engineering

SHANGHAI, July 28, 2025 /PRNewswire/ -- Mouser Electronics, Inc., the authorized global distributor with the newest electronic components and industrial automation products, today released its latest installment of the Empowering Innovation Together (EIT) technology series, AI-powered engineering. This installment explores the balancing act of utilizing the capabilities of Artificial Intelligence (AI) with human expertise. AI-powered tools are now enabling engineers to streamline complex design processes with unprecedented precision. By offloading time-consuming analysis and surfacing design insights faster, AI allows engineers to focus on what they do best: solving high-level challenges, pushing technical boundaries, and crafting sophisticated solutions. As generative intelligence and predictive modeling become more advanced, the synergy between human insight and machine intelligence is redefining how engineering problems are approached and how quickly innovations can reach the market. With proper utilization, engineers can push boundaries, innovate more freely, and ultimately deliver more robust and sophisticated solutions. This human-centric approach to AI integration ensures that technology becomes a trusted collaborator. Engineers remain at the heart of every breakthrough, equipped with the tools to move faster, think bigger, and innovate with greater confidence than ever before. In The Tech Between Us podcast, host Raymond Yin, Mouser Director of Technical Content, is joined by Nemanja Jokanovic, Head of Sales at SnapMagic, to examine the evolution of engineering tools with recent AI integration and how it has impacted the future of design. The In Between The Tech podcast features Nirman Dave, CEO at Zams, as he discusses key factors in determining the quality of AI platforms, the benefits of low-code/no-code programs, and how AI-based tools can be used to enhance designs. "AI is revolutionizing the engineering workflow, enabling us to achieve unprecedented levels of accuracy and efficiency," said Yin. "The future lies in creating harmony between human ingenuity and the capabilities provided by AI-powered tools. This installment examines how engineers can master that collaboration to pioneer innovations the world has yet to imagine." In addition to the podcast, the EIT series includes an in-depth video, technical articles, and topic-related infographics, as well as subscriber-exclusive content, diving into how engineers can build a symbiotic relationship between their knowledge and intelligently powered tools. By exploring this relationship with AI, the series provides engineering professionals with the knowledge to develop a new wave of innovative solutions. Established in 2015, Mouser's Empowering Innovation Together program is one of the electronic component industry's most recognized educational programs. To learn more, visit and follow Mouser on Facebook, LinkedIn, X and YouTube. For more Mouser news and our latest new product introductions, visit

Airwallex launches investment product to help businesses grow idle cash
Airwallex launches investment product to help businesses grow idle cash

Straits Times

timean hour ago

  • Straits Times

Airwallex launches investment product to help businesses grow idle cash

Find out what's new on ST website and app. The new Airwallex Yield product is aimed at small business customers or customers on Airwallex. SINGAPORE - Fintech firm Airwallex has unveiled a new investment product aimed at helping businesses earn returns on unused funds, entering a competitive market where rivals also court companies seeking better yields on spare cash. Rolled out on July 28, the product invests in money market funds (MMFs) and offers returns of up to 1.29 per cent per annum for Singapore-dollar funds and up to 3.84 per cent for US-dollar funds. The new Airwallex Yield product is aimed at small business customers or customers on Airwallex, said Mr Arnold Chan, Airwallex's general manager for Asia-Pacific excluding China. 'Airwallex Yield will allow businesses to earn returns on their surplus Singapore-dollar and US-dollar funds by investing through investment-grade money market funds, while maintaining access to both liquidity and control over their cash,' he told The Straits Times. A MMF invests in a range of liquid, low-risk assets, which typically include cash and short-term instruments such as treasury bills, commercial paper, and certificates of deposit. Airwallex's yield product invests in several Goldman Sachs and Fullerton funds. The Singapore launch follows earlier rollouts in Australia and Hong Kong. Since its November 2023 debut in Australia, the product has attracted about US$200 million (S$256 million) in funds. Airwallex offers a suite of financial products for businesses, including global business accounts, cross-border payments and expense management tools. The firm said it is seeing a huge demand from customers in Singapore who want to earn returns while maintaining flexibility to move funds quickly. Over 80 per cent of its annual revenue comes from customers who use more than one Airwallex service and the firm expects to cross-sell the new product to its existing customers. The firm also plans to target technology companies, especially those backed by venture capital and holding substantial idle cash reserves, as well as e-commerce players and retailers that receive customer payments upfront but pay suppliers later. By investing these interim funds, they can generate additional returns. Trading businesses involved in importing and exporting can also benefit by putting their idle cash or working capital to work, said Mr Chan. He added that withdrawals are flexible and settlement is typically completed within one business day, provided that cut-off times were met. Airwallex joins a competitive field in Singapore, where firms like StashAway and Syfe already offer MMF products to businesses seeking returns on idle cash with flexible access. Most MMFs in Singapore invest in fixed deposits, government securities and commercial papers. Airwallex customer GlobalTix, a ticketing software and distribution platform for the tourism sector, said that it considers flexibility, liquidity, tenure and yield as key factors when deciding how to deploy idle cash. GlobalTix's co-founder and chief operating officer Chan Chee Kong said fixed deposits are less suitable for the company because they tie up funds for a set period – limiting access when quick payments to suppliers or vendors are needed. 'I need to have that flexibility around moving my funds in and out,' he said. Another key consideration is managing different currencies given the global nature of the firm's business, he added. He noted that Airwallex is not the first to offer the solution, adding that GlobalTix currently uses a similar offering from a competitor. However, if GlobalTix were to use Airwallex's new offering, it would benefit from having all its financial tools on a single platform – making it easier to monitor and manage its cash flow, he said. Lovet, a homegrown fashion brand and Airwallex customer, is considering the new yield product, its director Lee Wei Leong said. With interest rates declining, he said the company is exploring options. 'If we leave our money in a normal savings account, the value of the money is going to be eroded by inflation.' As an SME without venture capital backing, liquidity is key. If Lovet were to open a new outlet, it will need to be able to cash out quickly to fund the expansion, he added.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store