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- The seven recommendations seek to keep Singapore competitive amid technological, economic, and workforce challenges.
- Key measures include strengthening leadership in advanced sectors, pursuing emerging technologies, boosting AI adoption, and supporting startups and internationalisation.
- The recommendations also emphasise lifelong learning, career transition support, and helping businesses adapt to economic shifts.
Singapore’s Economic Strategy Review (ESR) committees have proposed seven key recommendations in their mid-term update to secure the city-state’s economic growth and create good jobs amid a changing global landscape.
Speaking at the ESR mid-term review and media briefing on Thursday (29 January), Deputy Prime Minister and Minister for Trade and Industry Gan Kim Yong highlighted that Singapore is entering a "new phase" of its economic journey, shaped by geopolitical tensions, rapid technological change including AI, climate imperatives, and an ageing workforce.
He commented: "Going forward, it is going to be very challenging to achieve economic growth. It will not be the same as we have done before, because the environment is very different today – it is a new world, a changed world. At the same time, not only achieving economic growth is difficult, we can no longer assume that economic growth will generate jobs.
"Therefore, we need to pay particular attention to job creation and ensure that the jobs created are good jobs for Singapore and Singaporeans. These are the twin objectives that we will be pushing ahead (with)."
The recommendations are therefore intended to help Singapore maintain its competitiveness, capture new growth opportunities, and ensure that economic progress remains inclusive and benefits all Singaporeans.
Here is a snapshot of what these seven recommendations entail:
1. Establish global leadership in key growth sectors: Singapore will focus on maintaining its competitive edge in sectors such as semiconductors, healthcare, specialty chemicals, and aerospace by investing in AI, automation, sustainable operations, and national-level R&D. The city-state also plans to expand services that leverage its reputation for trust, including cybersecurity and AI assurance.
2. Pursue emerging opportunities: The ESR Committees encourage development in breakthrough areas like quantum computing, decarbonisation technologies, and space technology. Efforts will also focus on nurturing globally competitive enterprises and supporting startups to scale regionally and internationally.
3. Position Singapore as an AI leader: Building on the National AI Strategies, Singapore aims to become a hub for AI innovation and adoption, supporting companies and SMEs to develop, test, and deploy impactful AI solutions that boost productivity.
4. Strengthen global connectivity and support internationalisation: Singapore will enhance transport hubs, trade networks, and economic partnerships while helping local firms pursue overseas ventures to secure global market access and high-value jobs.
5. Broaden the range of good jobs: The review highlights the need to expand job opportunities beyond a few sectors, including skilled trades and care services, while also creating new technical and non-technical roles in AI and emerging industries.
6. Make lifelong learning practical: Singaporeans will be supported to upskill and reskill through flexible training pathways, a national AI workforce strategy, and stronger career and skills support systems. Career transition programmes will also be strengthened in partnership with NTUC and SNEF.
7. Enable businesses to navigate transitions: Companies will be provided with support to assess business health, plan transitions, and pivot operations to seize new opportunities as the economy restructures.
The Government is expected to respond to the ESR Committees’ recommendations in the coming months, with a full report of final recommendations expected by mid-2026.
View full details on the recommendations here.
Launched in August 2025, the ESR comprises five committees, each co-chaired by two Political Office Holders (POHs) with relevant members drawn from the private sector, unions and other relevant stakeholders. The five Committees will develop longer-term strategies in the following areas:
- Strengthening Singapore's global competitiveness
- Leveraging technology and innovation
- Nurture entrepreneurship
- Enhance human capital
- Managing impact of restructuring
More details here.
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