Singapore Convenes Economic Strategy Review

The significant uncertainties arising from the US tariffs, as well as the rapid developments in technology, are spurring Singapore to relook its economic strategy.

On August 4, Deputy Prime Minister (DPM) and Minister for Trade and Industry Gan Kim Yong announced that Singapore will convene an Economic Strategy Review (ESR) to “chart an economic blueprint that will enable the country to stay globally competitive over the longer term, and in doing so, secure good opportunities for Singapore and Singaporeans”. DPM Gan was speaking at a press conference on ESR.

There are five focus areas under ESR, each with its own dedicated committee helmed by government office-holders. The final report, with some key recommendations, is expected to be published by the middle of 2026.

The five committees and their focus areas are:

1) Committee on Global Competitiveness: Build on Singapore’s fundamentals to stay relevant and competitive

• Amid a more protectionist and competitive landscape, Singapore must strengthen its value proposition to continue to attract and anchor new investments.
• It must encourage and support local companies to grow and expand in the region, and enable companies to capture new opportunities as production and supply chains are being reshuffled.
• Singapore must reinforce its competitive position as a key hub for trade and investment, and remain relevant on the global economic stage.

2) Committee on Technology and Innovation: Harness new engines of growth and innovation in the future economy

• Singapore needs to develop, deploy and diffuse new technologies and innovation, including artificial intelligence (AI), across the whole of economy.

3) Committee on Entrepreneurship: Deepen the country’s ecosystem for entrepreneurs and startups

• Singapore is a leading startup hub in Asia, with a conducive ecosystem for entrepreneurs. More will be done to attract founders to set up new businesses here. Also, the committee will aim to nurture more home-grown entrepreneurs.

4) Committee on Human Capital: Prepare Singapore workers and enterprises to be ready for the shifts in the global economic landscape

• To ensure that workers can access opportunities in the future economy, they must be empowered with the relevant skill sets needed for the future. A skilled workforce will help Singapore remain globally competitive.

5) Committee on Restructuring: Enterprises need to adapt to shifts in the economy

• Some companies, especially those in the less productive sectors, may require more help to restructure and transform. The committee will focus on the sectors – and workers – at greater risk of being disrupted.

MORE ABOUT ESR

ESR, which is the third workstream of the Singapore Economic Resilience Taskforce (SERT), will be a tripartite effort. The five committees “will engage widely with businesses, workers and other key stakeholders, to tap on their collective wisdom”, says DPM Gan, at the ESR press conference. This will ensure that Singapore’s economic strategy is relevant and effective.

SERT was formed in April this year to help Singapore businesses and workers navigate the uncertainties arising from the US tariffs and related global developments, strengthen Singapore’s resilience, and position the country to thrive in an increasingly challenging environment.

SERT has been providing regular updates on the work it is doing. In July, the taskforce shared information about the first two of its three workstreams, including the announcement of a new Business Adaptation Grant to support enterprises. SERT’s three workstreams are: (1) Sensemaking and communication, (2) Addressing immediate challenges, and (3) Longer-term strategies and responses – a role undertaken by the newly formed ESR.

On August 11, the Committee on Technology and Innovation visited PwC’s AI Hub as part of a broader effort to determine the critical mass of AI users the country needs to nurture, to rev up the entire business ecosystem. The committee has also been visiting various businesses, especially small and medium-sized enterprises (SMEs), to understand their problems firsthand. Such site visits are aimed at helping the committee devise the right measures to support firms adopting digital solutions.

SINGAPORE RAISES 2025 GDP FORECAST

On a separate note, the government had, on August 12, announced that Singapore’s growth forecast for 2025 has been upgraded from 0–2% to 1.5–2.5%. This largely reflects 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, with the risks tilted to the downside, says the Ministry of Trade and Industry.

In the second quarter of 2025, the Singapore economy grew by 4.4% year-on-year, extending the 4.1% growth in the previous quarter. On a quarter-on-quarter seasonally adjusted basis, the economy expanded 1.4%, a reversal from the 0.5% contraction in the first quarter. For the first half of 2025 as a whole, GDP growth averaged 4.3% year-on-year.

On a year-on-year basis, GDP growth in the second quarter was primarily driven by the wholesale trade, manufacturing, finance & insurance, and transportation & storage sectors. In turn, the wholesale trade, and transportation & storage sectors were boosted by front-loading activities in the region ahead of the implementation of tariff measures by the US. On the other hand, the food & beverage services sector shrank, due in part to a sustained increase in outbound travel by locals.