Beyond the hype: Will AI eat Singapore's lunch or provide it in the future?

The Economic Strategy Review indicates that AI could shape Singapore beyond 2030. What does that mean for workers, the elderly and our climate change challenge?

- Selena Ling

As Singaporeans celebrate SG60, let us take a moment to appreciate how far Singapore has come—from a swampy outpost with typewriters and transistor radios, to a slick digital dynamo where a robot might some day help your grandma remember to take her meds. You see, if countries had tech resumes, Singapore's would stand out to most hiring committees. "Early adopter of mainframes." Check. "Built a national broadband network before some cities had stable electricity." Check. "One of the most digitalised cities in the world with an internet penetration rate of around 96 per cent and ranked second globally in the IMD Digital Competitiveness Ranking 2025." Double check.

Yet, as we commemorate this milestone, the tides are turning. Tariffs and geopolitical tensions have stirred up uncertainty and volatility. It is timely then, that on Aug 4, Deputy Prime Minister Gan Kim Yong announced the launch of the Economic Strategy Review (ESR), aimed at strengthening Singapore's competitiveness. Five committees will be tasked to do a comprehensive review of Singapore's economic strategy, one of which will look at harnessing technology and innovation, such as artificial intelligence (AI), to drive economic growth and competitiveness. The other committees will focus on areas such as entrepreneurship, human capital, and the impact of restructuring the economy.

AI, FRONT AND CENTRE While the key areas are not a surprise, it was interesting to note the prevalence of AI across the board. The rise of AI has led to a structural shift of the Singapore economy, for example. Plans are also under way to develop local AI talent, while attracting global specialists. And of course, there is a need to raise AI fluency and adoption. All this points to the growing importance of AI in Singapore's future economic success. Can it truly have a transformative effect, or are we overhyping AI?