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Chia Der Jiun, Managing Director of the Monetary Authority of Singapore, warned on June 17 at the Lujiazui Forum that the global economy’s heavy reliance on AI investment creates a fragility that markets may not be pricing in. AI-driven capital expenditures now account for the majority of US investment growth and roughly half of US GDP growth in recent months, according to Chia’s remarks.
The concentration problem
Hyperscaler data-center investments are projected to reach several hundred billion dollars in 2026, and current equity valuations reflect an assumption that these bets will pay off handsomely. If those assumptions get recalibrated, even modestly, the economic trajectory could face what Chia described as a sharp slowdown or reversal.
The costs feeding into this equation are climbing too. Energy prices and semiconductor chip expenses continue to escalate, squeezing the margins on AI infrastructure builds.
Chia also flagged a distributional concern that often gets lost in the AI hype cycle. The benefits of AI-driven economic growth, he warned, may not spread evenly across industries or workers. Instead, the gains could concentrate among a small number of companies and sectors, potentially widening income inequality rather than lifting all boats.
MAS has been building toward this moment
MAS released AI risk management guidelines back in November 2025 as part of a broader regulatory framework for the technology’s integration into financial services. The regulator has also launched initiatives like PathFin.ai and MindForge, which promote responsible AI adoption in finance.
Chia’s earlier remarks in late May 2026 had already flagged these concerns, making the Lujiazui Forum speech a continuation of a deliberate messaging campaign.
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