A push for businesses to adopt artificial intelligence (AI), investing in emerging industries such as space, and helping “leading” local firms to go abroad are some of the seven recommendations from a government-led review of Singapore’s economy.
The Economic Strategy Review (ESR), which was launched in August 2025 comprising five committees that are each headed by two political office holders, gave an update to the media on Thursday (Jan 29).
To meet the aim of reaching the “higher end” of GDP growth of between 2 and 3 per cent each year over the next decade, the ESR recommended extending Singapore’s “global leadership” in industries such as semiconductors, healthcare and aerospace, by investing in AI and technologies to reduce emissions.
Singapore accounts for 1 in 10 chips and one-fifth of global semiconductor equipment production, with the industry contributing close to 7 per cent of Singapore’s gross domestic product and employ more than 35,000 people, Economic Development Board (EDB) said on Tuesday.
On AI, the ESR said that Singapore should do more to position itself as a “location of choice” where companies and top creators are attracted here develop, test, deploy and scale “innovative” AI solutions.
Unveiling the recommendations, Acting Transport Minister and Senior Minister of State for Finance Jeffrey Siow said that the Government should also push for AI to be adopted across the workforce, including small and medium enterprises to reap its full benefits.
Referring to Singapore’s refreshed national AI strategy where the Government will invest more than $1 billion over five years, Siow said: “Our ambition is, when someone thinks about AI leadership in the world, they think about Singapore.”
At the same time, ESR called for the Republic to “boldly pursue” emerging technologies such as quantum and space.
Besides attracting multinational firms, the Government should take “greater risks” by identifying, attracting and supporting emerging tech and innovation driven enterprises to use Singapore as their home base.
Siow said that the recommendations seek to leverage Singapore’s position of strength.
The co-chair of the review’s committee on global competitiveness pointed to the “strong and diversified” economy and characteristics that the Republic is “well known” for, including trustiness and connectivity.
“The outcome should be that Singapore will move from a landing pad for foreign investment, to a launch pad for global companies.”
@asiaone Speaking at the Economy Strategy Review mid-term update on Thursday (Jan 29), Senior Minister of State for Finance Jeffrey Siow set out four key recommendations that can underpin Singapore’s growth strategy, including in new technologies such as quantum computing and space technologies. #sgnews #Singapore #Economy #Strategy #Jobs #Technology #ArtificialIntelligence #Space ♬ original sound – AsiaOne
The ESR also called for the Government to “aggressively support leading companies” here to pursue “significant” overseas ventures that carry higher risks and capital outlay.
“There is scope for us to support them… so that the benefits that we will bring back to Singapore, which includes profits from overseas operations, creating good jobs, both locally and overseas, as well as having strategic influence in some industries that matter to us,” said Siow.
He added that these “demanding” jobs, such as in care and social services and skilled trades like technicians and electricians, require “a lot of dedication and skill craft”.
“We can look at how we can structure pathways, skills for the institutes of higher learning to provide new skills, certification and upgrading pathways for Singaporeans to uplift themselves.”
On upskilling Singaporeans, the ESR recommended a national AI workforce strategy to build literacy and fluency for the workforce.
“We want to support them to be able to use AI and experiment with it in meaningful ways at the workplace so that they can be a lot more productive,” said Neo.
The ESR suggested refreshing the core curriculum in schools to help students learn with AI.
Neo said that Government can also look into strengthening the career and skills system for workers — should they choose to take on new roles.
More support can also be given for workers who are retrenched, including working with employers on earlier retrenchment notices and improving career conversion programmes.
@asiaone The economic transformation will lead to new roles and reshape existing ones, said Acting Minister for Culture, Community and Youth David Neo at the Economic Strategy Review’s mid-term update on Thursday (Jan 29). He set out three ways to grow good jobs and to support workers and businesses in their transformation. #sgnews #Singapore #economy #Strategy #Jobs #Technology #ArtificialIntelligence #business #company ♬ original sound – AsiaOne
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