On 24 June 2026, the Ministry of Digital Development and Information (“MDDI“) announced the release of the Economic Strategy Review (“ESR“) Final Report (“Report“). The Report sets out a forward-looking economic blueprint aimed at securing Singapore’s competitiveness, resilience and ability to create good jobs in a world marked by geopolitical uncertainty, rapid technological disruption and demographic constraints.
The Report sets out three imperatives:
- Sharpen Singapore’s value proposition;
- Enhance our agility and adaptability; and
- Build resilience alongside efficiency.
These imperatives underpin eight strategic thrusts intended to drive Singapore’s next phase of economic growth and workforce transformation. Many of the headline recommendations were highlighted when the ESR Committees released their recommendations in May 2026. Nonetheless, the Final Report provides additional detail on the rationale behind these proposals and the implementation approaches being considered.
Strategic Thrusts for Businesses
- Build global leadership in areas of strength, and take bold bets for future growth
The Report emphasises that Singapore cannot compete on scale and must instead focus on areas where it can develop hard-to-replicate advantages. Besides strengthening established sectors such as semiconductors and pharmaceuticals, the Report recommends investing in emerging technologies capable of creating new growth engines. While not every investment will succeed, the cost of inaction and missed opportunities may be greater over time.
Firms must also be supported in transforming their existing operations towards best-in-class production systems, as operational excellence will remain a critical source of competitiveness as cost pressures rise and manufacturing becomes more complex.
As geopolitical and regulatory complexity increases, there will be increasing demand for trust-based services, including cybersecurity, artificial intelligence (“AI“) governance, audits and assurance, compliance, and risk management. The Report therefore recommends that Singapore should build on its trusted business environment to offer such services.
- Make Singapore a global leader in AI solutions, and an AI-empowered economy
Rather than competing with larger economies to build frontier AI models or host the largest AI infrastructure, the Report proposes positioning Singapore as a location of choice where AI solutions are developed, tested, deployed and scaled to solve real-world problems. Tailored support should be offered to leading Singapore-based firms, enabling them to leverage AI to transform their business and operations, and grow the demand for practical AI solutions.
Lastly, Singapore should accelerate economy-wide AI adoption, with particular focus on making AI adoption less intimidating and more practical for small and medium enterprises (SMEs).
- Strengthen Singapore’s role as a connected and trusted hub
The Report emphasises that Singapore should evolve beyond being a location through which global flows pass. Instead, it should become a place where flows are orchestrated, financed, governed and translated into economic value, as well as positioning itself to capture new and emerging flows. Several sectors touched upon include:
- Transport and logistics sectors: Integrating physical infrastructure with digital and AI-enabled systems and strengthening air-sea-land connectivity.
- Financial services: Deepening Singapore’s role as a centre where capital is raised, structured, deployed and recycled across the region, and building capabilities in next-generation financial infrastructure.
- Data flows and digital infrastructure: Strengthening how Singapore governs data and facilitates the sharing of data securely across borders, and more actively shaping international standards for data and AI systems.
- Energy: Anchoring and expanding the operations of major oil and liquified natural gas (LNG) players in Singapore, and building capabilities around emerging low-carbon energy flows.
- Foster a more dynamic enterprise ecosystem so that more Singapore-based companies can start, scale and succeed globally
The Report recommends expanding access to growth capital, including venture debt, private credit and other forms of financing. It also supports strengthening Singapore’s public equities market to facilitate fundraising and exit opportunities for growing enterprises.
Apart from attracting leading multinational corporations (MNCs), Singapore should also move upstream to bring in younger, high-growth companies to deepen their roots in Singapore. Locally, Singapore should also strengthen support for Singapore-based firms to internationalise.
- Build economic resilience as a core capability
The Report highlights resilience as a key pillar of Singapore’s future competitiveness. It notes that businesses and economies can no longer optimise solely for efficiency and cost; resilience must increasingly be built alongside efficiency at the national level as well as the company level.
To strengthen resilience, energy buffers and diversification efforts should be expanded, including continuing to build capabilities in civilian nuclear power. Singapore should also prepare for a lower-carbon and more climate-resilient future. The recently launched Council for a Competitive Climate Transition is expected to develop practical, business-relevant solutions such as corporate transition planning data and tools, climate disclosure, and sustainable financing.
The Report also recommends the identification of supply-chain vulnerabilities and broadening Singapore’s network of trusted international partnerships.
Strategic Thrusts for Workers
- Create more and a broader range of good jobs
Even as Singapore continues to welcome global talent, it should also take a more structured approach to capability transfer while ensuring that Singaporeans are well-positioned to access emerging jobs and career pathways. AI strategies should complement workers rather than displace them, and entrepreneurship should be fostered as a viable pathway. Additionally, the Report recommended aiming for improvements to the quality and attractiveness of jobs in sectors that are likely to remain resilient to automation such as healthcare, social services and skilled trades.
- Establish a stronger system for career transitions and worker support
Recognising that career transitions are likely to become more frequent, the Report proposes a stronger and more anticipatory support system for workers. One notable recommendation is the creation of “career bridges” – structured pathways that help workers in at-risk occupations move into more resilient roles through training, career guidance and job-matching support.
To enable earlier intervention in retrenchment support, the Report also recommends working with tripartite partners to encourage advance notification from companies conducting retrenchment exercises.
Finally, support should be strengthened for professionals, managers and executives (PMEs) as they are increasingly affected by job displacement, particularly in the age of AI. In a similar vein, the Government should closely monitor the impact of AI on the labour market, and proactively develop structural interventions while needed, to ensure that the gains from AI do not accrue to a narrow group while others fall behind.
- Empower workers to learn for life and take charge of their careers
In relation to lifelong learning, the Report calls for expanded support for modular and stackable credentials under the SkillsFuture scheme, stronger integration of learning with work, and increased investment in three categories of future-ready skills: AI literacy, uniquely human skills such as critical thinking and communication, and soft skills and leadership traits to compete across different cultural contexts.
Concluding Remarks
Taken together, the Report represents more than a traditional economic growth strategy. Its recommendations are anchored around a broader set of themes – trust, adaptability, resilience and continual renewal. While growth remains a central objective, the Report recognises that future success will depend equally on Singapore’s ability to manage disruption, develop new sources of competitive advantage and ensure that businesses and workers are equipped to thrive in a rapidly changing environment.
Click the following links for more information:
Available on the SG Press Centre website at www.sgpc.gov.sg:
- MDDI Press Release titled “Release of Economic Strategy Review Final Report to Chart Singapore’s Next Bound of Economic Growth”
- Economic Strategy Review Final Report
Rajah & Tann Singapore publication:
If you have any queries on the above, please reach out to our team set out on this page.
For regional Employment matters, please see Rajah & Tann Asia’s Employment Practice for more information.
Disclaimer
Rajah & Tann Asia is a network of member firms with local legal practices in Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam. Our Asian network also includes our regional office in China as well as regional desks focused on Brunei, Japan and South Asia. Member firms are independently constituted and regulated in accordance with relevant local requirements.
The contents of this publication are owned by Rajah & Tann Asia together with each of its member firms and are subject to all relevant protection (including but not limited to copyright protection) under the laws of each of the countries where the member firm operates and, through international treaties, other countries. No part of this publication may be reproduced, licensed, sold, published, transmitted, modified, adapted, publicly displayed, broadcast (including storage in any medium by electronic means whether or not transiently for any purpose save as permitted herein) without the prior written permission of Rajah & Tann Asia or its respective member firms.
Please note also that whilst the information in this publication is correct to the best of our knowledge and belief at the time of writing, it is only intended to provide a general guide to the subject matter and should not be treated as legal advice or a substitute for specific professional advice for any particular course of action as such information may not suit your specific business and operational requirements. You should seek legal advice for your specific situation. In addition, the information in this publication does not create any relationship, whether legally binding or otherwise. Rajah & Tann Asia and its member firms do not accept, and fully disclaim, responsibility for any loss or damage which may result from accessing or relying on the information in this publication.
