Singapore’s strong export performance highlights the continued strength of the electronics, semiconductor and precision engineering sectors, providing a supportive backdrop for the local market. With the STI trading near record highs, a selective approach focused on quality companies and opportunities on market pullbacks may offer a more attractive risk reward profile than chasing rallies.

Demand for AI continues to grow but markets are increasingly looking beyond spending alone. Investors want to see clear signs that AI investments are translating into sustainable revenue, profitability and cash flow. This makes capital efficiency increasingly important alongside growth.