AI-driven demand for semiconductors and other components has underpinned growth
in Malaysia and Singapore, while Vietnam remains the region’s fastest-growing
large economy. Thailand and the Philippines are weakening as energy costs spike
from the Middle East conflict; the Philippines is further hit by a sharp
pullback in infrastructure spending. Economies with firms tied to AI-related
tech supply chains are proving more resilient; those reliant on imported energy
are losing momentum. DBS Group economists said: "Growth divergence depends on
domestic resilience to the Middle East crisis and the degree of reliance on tech
exports in trade structure."
