Morgan Stanley Research has unveiled a report highlighting how artificial intelligence (AI) is set to propel Singapore’s economic growth amidst challenges posed by an ageing population and labour constraints. The report, released ahead of Singapore’s 60th anniversary, predicts that AI will sustain a 3% GDP growth rate, keeping Singapore among the fastest-growing developed economies.
Singapore is recognised as one of the top AI markets globally, thanks to a robust ecosystem fostered by government initiatives. According to the report, over 70% of surveyed corporations have integrated AI into their operations, enhancing productivity, labour efficiency, product development, and supply chain management. This widespread adoption is crucial for maintaining the projected GDP growth.
The report identifies two categories of AI players in Singapore: Enablers and Adopters. Enablers like Singtel, Keppel, and SCI are pivotal in building the necessary infrastructure for AI, with Singtel expanding its data centre capacity and establishing AI factories across Southeast Asia. Meanwhile, Adopters such as Grab, Sea Ltd, Singapore Airlines (SIA), and ST Engineering (STE) are leveraging AI for innovation and productivity enhancements. Notably, Grab has launched an AI Centre of Excellence in Singapore to accelerate AI-driven solutions.
Morgan Stanley’s findings underscore the strategic importance of AI in Singapore’s economic landscape, suggesting that continued investment and innovation in AI could further solidify the country’s position as a global leader in technology and economic growth.
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