Artificial intelligence (AI) is set to play a central role in Singapore’s next phase of economic transformation, as the Economic Strategy Review (ESR) Committees unveiled recommendations aimed at securing long-term growth and creating good jobs in a rapidly changing global environment.
Its Deputy Prime Minister Gan Kim Yong said on Wednesday that the recommendations, presented at the Future Economy Conference organized by the Singapore Business Federation, come at a time when geopolitical tensions, rapid technological change — particularly in AI — and the transition to a low-carbon economy are reshaping global competition for investment and talent.
Since its formation in August 2025, the ESR Committees have conducted more than 80 engagements with trade associations and chambers, unions, businesses and workers, reaching over 7,700 stakeholders across sectors.
The consultations highlighted both emerging risks and opportunities facing Singapore’s economy and workforce.
The committees outlined three key imperatives to guide Singapore’s strategy: sharpening its value proposition in areas of comparative advantage, enhancing agility and adaptability across institutions and firms, and strengthening economic resilience to better withstand global shocks.
These imperatives underpin eight strategic thrusts designed to drive the next stage of growth and workforce transformation.
A key focus is establishing Singapore as a global leader in AI solutions and building an AI-empowered economy.
The ESR also emphasized the need to strengthen Singapore’s position as a connected and trusted global hub, while taking bold bets in high-growth sectors where the country can build hard-to-replicate advantages.
Other priorities include fostering a more dynamic enterprise ecosystem to help companies start, scale and compete globally, as well as creating a broader range of quality jobs in emerging industries.
On the workforce front, the recommendations call for stronger systems to support career transitions, expanded lifelong learning opportunities, and greater empowerment for workers to take charge of their own skills development.
The ESR also highlighted the importance of building economic resilience as a core national capability, noting that shocks are likely to become more frequent in an increasingly fragmented global environment.
The government said it will study the recommendations and work closely with industry partners, unions, business leaders and workers to translate the proposals into concrete policies and programs.
Officials added that the strategy reflects Singapore’s need to remain competitive amid rapid technological disruption, with AI seen as a key driver of productivity, innovation and long-term growth.
“Technology is advancing rapidly, especially AI. This will create new opportunities, but also disrupt industries, business models and jobs,” Deputy Prime Minister and Minister for Trade and Industry Gan Kim Yong said in his keynote speech.
He noted that AI will be a key part of the country’s policy direction as it is likely to reshape economies in the way electricity or the internet once did.
“Singapore does not need to compete by building the biggest frontier models or the largest data centers. Our advantage lies elsewhere,
“We can become one of the best places in the world to develop, test and deploy AI solutions that solve real-world problems at scale,” he said.
He said the country’s AI strategy must be grounded in real use cases – especially in advanced manufacturing, finance, healthcare, logistics and connectivity, where Singapore already has strengths.
He noted they will work with leading Singapore-based companies to become pathfinders and help small and medium-sized enterprises (SMEs) to benefit from AI through shared platforms, sector-level solutions and stronger support ecosystems.
“We must diffuse AI across the whole economy to lift productivity, strengthen enterprises, create better jobs, and provide more opportunities for Singaporeans,
“This is how Singapore stays relevant – by building capabilities, trust and innovation that the world values,” he added.
As firms adopt AI and automation, he also said they must ensure that technology complements workers, improves job quality and supports career progression.
He also noted as an AI-driven economy, cross-border data flows will become critical infrastructure, and they must strengthen governance, facilitate secure sharing, and help shape international standards.