Singapore Central Bank Warns of Tech Sector Valuation Risks

Singapore’s Monetary Authority (MAS) has issued a cautionary statement regarding inflated valuations in the technology sector. The central bank, as highlighted in its annual Financial Stability Review released on Wednesday, warned that stock market valuations, particularly those within technology and AI, are at high levels. The report emphasized that if optimism about AI’s future return diminishes, it could trigger significant market adjustments and increase defaults in the private credit market.