Singapore and Malaysia exports hit record highs on AI boom, defying Middle East energy shock

Singapore and Malaysia recorded historically high export levels in May 2026 driven by surging demand for electronics and semiconductor components linked to global AI investment, even as the Strait of Hormuz closure pushed energy prices sharply higher across Southeast Asia. Singapore's GDP expanded 4.6 percent year-on-year in the first quarter of 2026, prompting the Ministry of Trade and Industry to raise its full-year growth forecast to a range of 2 to 4 percent. Economists warn that ASEAN+3 growth could hit a four-year low if the Middle East conflict drags on, underscoring the dual exposure of trade-dependent economies to both the upside of AI demand and the downside of geopolitical energy disruption.