The Singapore economy is forecasted to grow by 2.4% in 2025, up from an earlier 1.7% estimate, according to the Monetary Authority of Singapore’s (MAS) latest quarterly survey of professional forecasters, released last month (September).[1] The 2.4% figure falls within the upper end of the Ministry of Trade and Industry’s (MTI) forecasted 1.5% to 2.5% range announced in August.
The heightened optimism largely reflected the better-than-expected performance of the Singapore economy in the first half of 2025. However, the economic outlook for the rest of the year remains clouded by uncertainty, including potential levies by the US on semiconductor and pharmaceutical goods, ongoing geopolitical tensions and supply chain disruptions.
Against the backdrop of an increasingly fragmented and complex world, there is a need for Singapore to refresh its economic strategies to secure inclusive growth, with good opportunities and jobs for Singapore and Singaporeans. This was the key message of Deputy Prime Minister and Minister for Trade and Industry Gan Kim Yong, in his Addendum to the President’s Address presented at the 15th parliamentary sitting in September.
Focusing on the theme “Refreshing Our Economic Blueprint”, to keep the economy strong and resilient in a changed world, DPM Gan said MTI will position Singapore as a home to leading firms, a key global business hub, and a vital connector in the global economy. These efforts will foster productivity-led and innovation-driven growth, and create good jobs for Singaporeans.
A strong and resilient society will respond better to the structural shifts and major uncertainties in the global order. The tripartite Singapore Economic Resilience Taskforce will support workers and businesses to navigate and respond to immediate challenges arising from increased tariffs while concurrently, MTI is undertaking an Economic Strategy Review to chart a forward-looking blueprint that better positions the economy, businesses, and workers for the future.
MTI will intensify efforts to capitalise on emerging new growth areas. This includes strengthening advanced manufacturing by leveraging technologies such as artificial intelligence (AI), robotics, and biotechnology, and actively seizing opportunities presented by the green and digital economy.
In the area of innovation, MTI will sustain investments in research and development (R&D), encourage widespread innovation adoption, utilise next-generation infrastructure, such as the Punggol Digital District, to support enterprise growth. There will also be continued efforts to encourage investments in the city-state’s tourism and lifestyle sectors, which contribute to the vibrancy of Singapore as a city to live, work, and play.
MTI will continue to attract global leading companies by leveraging and improving the country’s efficient infrastructure, extensive connectivity, highly skilled workforce, and pro-business environment. Anchoring these firms in the city-state will enable Singapore to access global markets, deepen capital formation, acquire cutting-edge technologies and knowhow, and help small and medium-sized enterprises here plug into global supply chains.
MTI will grow the pool of Singapore global enterprises by helping promising local enterprises internationalise and grow into regional or global leaders. It will raise the productivity of local enterprises, by accelerating the adoption of digital and AI-enabled solutions, and supporting workforce training.
Efforts will be put into helping firms transition to a low-carbon economy, while safeguarding energy security and maintaining competitiveness. Singapore will step up domestic solar deployment and advance cross-border electricity trading, and also develop capabilities in other potential low-carbon pathways, such as nuclear energy and hydrogen. It will also explore carbon capture, utilisation and storage technologies, and develop markets for high-quality carbon credits.
Amid global shifts, Singapore must remain a trusted and connected business hub that is deeply integrated into global supply chains and trade flows. To this end, Singapore will deepen regional economic integration in ASEAN, and enhance linkages with its neighbours, thus increasing the city-state’s value proposition as a base for investments into the region. It will also strengthen ASEAN’s partnership with major economies and other economic blocs, such as the European Union and Gulf Cooperation Council, to increase ASEAN’s role in the global trade architecture.
Beyond Singapore’s 28 Free Trade Agreements, it will expand trade links with emerging markets, such as Latin America, South Asia, the Middle East and Africa. At the same time, it will further cooperation in strategic growth areas. For example, it is expanding the network of Digital Economy Agreements to establish rules and standards around issues such as personal data and online consumer protection, enabling businesses to operate more seamlessly across borders. It will also be advancing Green Economy Agreements to catalyse trade and investment flows that support the low-carbon transition of the economy.
MTI will work with like-minded partners to support the rules-based trading system, to help businesses navigate uncertainty and seize new opportunities. It will deepen engagement in existing trading frameworks, such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership and Regional Comprehensive Economic Partnership, and with other economic regions. Singapore will also work with other trade-dependent countries to support reforms at the World Trade Organisation to uphold open, fair, and effective global trade.
“Our people are at the heart of our economy,” said DPM Gan in parliament. “Our strategies will create more opportunities for Singaporeans to thrive and share in the benefits of growth.” MTI will work with companies, unions, trade associations and chambers, as well as other ministries, to equip citizens with future-ready, industry-relevant skills, and support career transitions into growth sectors. “In doing so, we will ensure that every Singaporean can aspire to good jobs, secure progress, and build a better future for themselves and their families.”
[1] Based on MTI’s advance estimates released on October 14, the Singapore economy grew by 2.9% on a year-on-year basis in the third quarter of 2025, moderating from the 4.5% growth in the previous quarter.
© 2024 Institute of Singapore Chartered Accountants
