Singapore is making a decisive move to secure its position as a global technology leader by prioritizing AI adoption across the economy. The government-led Economic Strategy Review highlights that scaling artificial intelligence, alongside improving skills training and promoting lifelong learning, is essential to sustain economic growth and ensure long-term job creation as the country navigates rapid technological and demographic change.
Why AI Adoption Matters for Singapore
The Economic Strategy Review, which reports to the Singapore Economic Resilience Taskforce, was shaped by more than 60 consultations with businesses, workers, and industry stakeholders. The review identifies AI adoption as a critical force that can lift productivity, reshape industries, and strengthen Singapore’s global competitiveness.
The review outlines several priorities for making AI work across the economy:
- Expanding AI adoption beyond large corporations to include small and medium-sized enterprises
- Focusing on real-world problem-solving rather than purely experimental use
- Attracting top AI talent to support research, innovation, and deployment
- Encouraging practical implementation of AI across multiple sectors
Deputy Prime Minister and Minister for Trade and Industry Gan Kim Yong noted that Singapore faces growing pressure from technological disruption, climate challenges, and an ageing population. According to government assessments, economic growth can no longer be expected to automatically translate into job creation. Purposeful policies are needed to deliver both.
Strengthening Core Industries and New Growth Areas
The review recommends reinforcing Singapore’s existing industrial strengths while investing in emerging sectors that can drive future growth. These strategies aim to protect Singapore’s economic resilience and maintain its standing as a global business hub.
Key industry-focused recommendations include:
- Deepening capabilities in semiconductors, healthcare, and specialty chemicals
- Transforming advanced manufacturing to maintain international leadership
- Supporting emerging areas such as quantum technologies, decarbonisation, and space innovation
- Expanding research and development to enhance global competitiveness
By combining innovation with industrial expertise, Singapore aims to remain attractive to global investors while creating new pathways for job creation.
Lifelong Learning and Skills Training as Economic Pillars
A major theme of the review is the urgent need to modernize skills training and embed lifelong learning into the workforce. As technology reshapes jobs, workers must be able to update their skills continuously to stay relevant.
The review calls for practical reforms, including:
- Integrating flexible learning options into workplaces
- Aligning training programs with industry needs and career progression
- Supporting workers as they transition into new roles created by technological change
- Using lifelong learning as a tool to strengthen economic growth and workforce resilience
By making continuous learning more accessible, the government aims to help workers adapt confidently to AI-driven change rather than be displaced by it.
Supporting Businesses Through Structural Change
The Economic Strategy Review also emphasizes the importance of helping businesses adjust to shifting economic conditions. Companies adopting new technologies often face operational and workforce challenges, and the review recommends targeted support to ease these transitions.
Suggested measures include:
- Providing structured guidance for firms implementing AI adoption
- Aligning business support programs with workforce development initiatives
- Helping local companies expand into international markets
- Ensuring productivity gains translate into job creation and better-quality employment
These efforts are intended to ensure that technological progress strengthens businesses without leaving workers behind.
Maintaining Global Competitiveness
Global competitiveness remains a central concern of the review. Singapore’s open economy depends on its ability to stay ahead of international rivals through innovation, talent, and connectivity.
The review stresses the need to:
- Strengthen international links for Singapore-based companies
- Promote technology adoption across all business sizes
- Invest consistently in innovation and research
- Build an ecosystem where AI adoption supports both productivity and employment
Together, these strategies are designed to keep Singapore relevant and competitive in an increasingly complex global economy.
What Comes Next
The government is expected to respond to the Economic Strategy Review’s recommendations in the coming months, with the final report scheduled for release in mid-2026. Officials have indicated that nationwide AI adoption, combined with stronger skills training and lifelong learning systems, will be central to future policy decisions.
The government’s focus will remain on:
- Sustaining economic growth in uncertain global conditions
- Supporting job creation through innovation and industry development
- Preparing workers for change through continuous skills upgrading
- Reinforcing Singapore’s global competitiveness
Conclusion
The Economic Strategy Review places AI adoption at the center of Singapore’s long-term economic vision. By pairing technological advancement with lifelong learning, modern skills training, and targeted business support, the country aims to deliver sustainable economic growth and resilient job creation. This balanced approach reflects Singapore’s commitment to building an economy that is innovative, inclusive, and prepared for the challenges ahead.
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