Singapore launches economic strategy review to boost resilience and competitiveness

Singapore has launched a nationwide Economic Strategy Review (ESR) aimed at strengthening competitiveness, boosting innovation, and helping businesses and workers navigate increasing global uncertainties to safeguard its economic future.

The review, announced on Aug. 4 by Deputy Prime Minister Gan Kim Yong, will run through mid-2026 and replaces the long-term strategy track of the Singapore Economic Resilience Taskforce (SERT), which was established earlier this year to handle trade disruptions, especially from U.S. tariffs.

The ESR will concentrate on five key areas: global competitiveness, technology and innovation, entrepreneurship, human capital and restructuring. Each area will be led by a government-led committee consisting of ministers, union leaders and prominent figures from major companies, including DBS, Singapore Airlines, Sembcorp and ST Engineering.

For foreign small and medium enterprises (SMEs) operating in Singapore, the review highlights a proactive government approach to managing rising costs, talent shortages and sector-wide transformation. The government has explicitly identified sectors where many SMEs are concentrated, such as manufacturing, logistics and retail, as vulnerable to technological disruption and global competition.

Minister of State Goh Pei Ming, co-chair of the restructuring committee, stated that the government will work closely with businesses in these sectors to help them innovate and adapt. New support measures, including enhanced social safety nets and upskilling programs, will also be directed at professionals, managers and rank-and-file workers affected by restructuring and artificial intelligence.

The ESR also emphasizes strengthening Singapore’s position as a start-up and innovation hub. With around 30 unicorns currently based in the country and over US$5 billion in annual venture capital flows, the government aims to further develop this ecosystem. Minister of State for Trade and Industry Alvin Tan noted that foreign founders with “big ideas” will continue to be welcomed, while more resources will be allocated to growing a resilient local core of entrepreneurs.

Meanwhile, the human capital committee will explore ways to improve the connection between workforce training and long-term wage growth. Officials highlighted the SkillsFuture initiative, which is now ten years old, as a strong foundation that will be expanded to prepare Singaporeans for jobs in the AI and green economies.

Ahead of National Day, Prime Minister Lawrence Wong emphasized the importance of the ESR, citing a volatile global economy and increasing geopolitical fragmentation. “We must move faster, adapt quicker and innovate smarter,” he said, promising the government will “walk this journey” with businesses and workers alike.