Economic review wraps up with call for S’pore to adapt faster to AI-driven world

Strategies laid out in final report include developing new engines of growth

- Sue-Ann Tan

Supporting workers earlier after retrenchment, helping them adapt to artificial intelligence and developing new engines of growth were among the strategies outlined by the Economic Strategy Review committees in their final report released on June 24.

The report caps a year-long review of Singapore’s economic strategy, and concludes that the Republic must move faster to adapt to a fundamentally changed global environment, to sustain growth and rising living standards in the years ahead.

Eight thrusts spanning jobs, skills, AI adoption, business growth and economic resilience had been outlined in May.

The committees, set up in August 2025 to refresh Singapore’s economic strategies for the next phase of growth, said they made their recommendations after more than 80 consultation sessions.

The Government will study the recommendations and work with industry partners to put them into action, said the Ministry of Digital Development and Information in a statement.

The report said that Singapore has to go beyond just maintaining its position as a global hub. It also has to take bets in new and emerging areas.

“Not every investment will succeed, but we must persist – because the cost of inaction and missed opportunities will be far greater over time,” the report said.

To do this, the report suggested that Singapore has to attract companies from leading industries so they are anchored here.

The Republic is already a key node in the semiconductor industry, and this success model can be replicated in other sectors.

Singapore should also invest in emerging technologies to create new growth engines.

Promising areas include quantum technologies – building on Singapore’s existing strengths in semiconductors and advanced manufacturing – as well as space technologies, which leverage its capabilities in aerospace and satellite systems, the report noted.