SINGAPORE \u2013 Singapore must find a way to capture investment flows in artificial intelligence (AI) to power its economic growth over the next decade, Acting Transport Minister and Senior Minister of State for Finance Jeffrey Siow said while giving an update on the Government\u2019s Economic Strategy Review (ESR). <\/p>\n
He added that the five committees under the ESR aim to provide a midterm update during the annual debate on the Government\u2019s Budget in 2026, which traditionally takes place from end-February to early March. <\/p>\n
The ESR will issue a final report with recommendations by mid-2026. <\/p>\n
Mr Siow was speaking to the media after a closed-door session where three ESR committees engaged over 70 business leaders in a dialogue organised with the Singapore Business Federation (SBF) on Nov 19.<\/p>\n
\u201cIt is very clear now that AI will be a fundamental driving force for the economy for the next five to 10 years. <\/p>\n
\u201cIn Singapore, we have an opportunity to be at the frontier of global AI innovation,\u201d he said. <\/p>\n
He added that the Republic was starting to reap the benefits of having a national AI strategy as companies are setting up centres of excellence for AI on its shores.<\/p>\n
However, he said more coordination would be needed for AI efforts across the value chain, ranging from research and development to talent attraction. <\/p>\n
Starting more sandboxes in key industries such as healthcare and logistics could help generate solutions around the technology, he said. <\/p>\n
SBF vice-chairman Andrew Kwan said businesses are watching the impact of AI very closely. <\/p>\n
He said that although AI has the potential to be transformative, \u201cit cuts both ways if businesses fail to adapt, to adopt and to align with the new realities that AI brings to the table\u201d. <\/p>\n
He added that SBF has engaged some 3,000 business leaders as well as representatives from the labour and trade organisations. <\/p>\n
Mr Siow believes a new strategy is required to tap opportunities spanning across areas such as data and renewable energy, as they differ from the traditional flows of goods, talent and capital that have anchored the economy.<\/p>\n
He said: \u201cIt is not easy for Singapore to be at the centre of these flows because we are physically constrained. Data centres need energy and new forms of renewable energy. <\/p>\n
\u201cWe are disadvantaged, but we are studying how to turn some of these constraints into our strength.\u201d <\/p>\n
He likened the process to how the country tackled the challenge of securing its water supply, despite having limited natural resources.<\/p>\n
The Ministry of Trade and Industry forecasts that the Singapore economy will grow by 2 per cent to 3 per cent yearly over the next decade, and strategies formulated by the ESR have the potential to push growth \u201cto the higher end\u201d of the range, Mr Siow said.<\/p>\n
He was joined at the session by his co-chair for the Committee on Global Competitiveness, Senior Minister of State for Trade and Industry Low Yen Ling. <\/p>\n<\/p>\n
Also present were Ms Jasmin Lau, Minister of State for Education and Digital Development and Information, and the co-chair of the Committee on Technology and Innovation; and Mr Dinesh Vasu Dash, Minister of State for Manpower and Culture, Community and Youth, who is the co-chair of the Committee on Entrepreneurship.<\/p>\n
The ESR is aimed at charting a forward-looking blueprint to secure quality opportunities for Singapore\u2019s businesses and workers. <\/p>\n
It was announced on Aug 4 by Deputy Prime Minister Gan Kim Yong as he noted that Singapore faces a very challenging future, with tariffs imposed by the US and the uncertainty that these levies have created in the global economic landscape.<\/p>\n
DPM Gan also chairs the Singapore Economic Resilience Taskforce (SERT). <\/p>\n