S’pore raises 2026 growth targets; graphics card shortage to drive up PC prices

In this column, ST’s business correspondents unpack the latest developments in Singapore and global markets during the week – and explain what they mean for investors.

JPMorgan Chase & Co raised its target for Singapore stocks, due to its economic growth, strong Singapore dollar and a narrowing valuation gap with other developed-market peers.

SINGAPORE – It might have been a short week due to the National Day public holiday on Aug 10, but it was no less busy.

In a surprise move on Aug 11, the Ministry of Trade and Industry upgraded its 2026 economic growth forecast from between 2 per cent and 4 per cent to 4.5 per cent and 5.5 per cent, reflecting the better-than-expected performance of the Singapore economy in the first half of 2026.

The ministry also provided an improved outlook for the rest of 2026, due to the acceleration in global AI-related capital expenditure.

The following day, on Aug 12, JPMorgan Chase raised its targets for Singapore stocks, citing stronger economic growth, an appreciating Singapore dollar and expectations that local shares would close some of their valuation discount to other developed markets, including Hong Kong.

Against that backdrop, JPMorgan wrote that the Straits Times Index (STI) may hit the 7,000 mark over the next 12 months in a bull case scenario, representing a 22 per cent increase from the STI’s close on Aug 11.

The STI has gained more than 23 per cent in 2026, outperforming Hong Kong’s Hang Seng Index.

Genting Singapore was the lead gainer on the index this week, rising 6.4 per cent to 66 cents on Aug 14. The share price rose despite the resort and casino operator recording a 33.5 per cent fall in profit for its first half ended June 30 to $156.1 million, due to higher depreciation, lower interest income and asset refresh works, the group said on Aug 13.

A worsening shortage of graphics cards and other key components could make personal computers (PCs) more expensive in the second half of 2026, as manufacturers contend with rising costs and longer delivery times.

PC Partner Group, a Hong Kong-based, Singapore-listed manufacturer of video graphics accelerator (VGA) cards and other computer components, warned on Aug 14 that graphics card availability is likely to deteriorate further in the coming months.

Entry-level graphics cards are expected to face particularly severe shortages, and this could raise average selling prices and make even lower-cost desktop computers more expensive to build, it said.