Singapore launches review of economic strategy to stay ahead of global shifts

SINGAPORE – Singapore will carry out a fresh review of its economic strategy, with committees formed to develop longer-term plans in five areas that include strengthening the country’s global competitiveness and improving its start-up ecosystem.

Deputy Prime Minister Gan Kim Yong, who announced the review on Aug 4, said it will “chart an economic blueprint that will enable us to stay globally competitive over the longer term, and, in doing so, secure good opportunities for Singapore and Singaporeans”.

He noted that the country faces a very challenging and uncertain future, as it deals with tariffs imposed by the US and the uncertainty that these levies have created in the global economic landscape.

In this complex and fast-evolving landscape, it is important to do a comprehensive review of the Republic’s economic strategy, said DPM Gan, who is also Minister for Trade and Industry and chair of the Singapore Economic Resilience Taskforce (SERT).

The task force was formed earlier in 2025 in the face of tariff-driven uncertainty that added to the economic impact of geopolitical tensions and technological disruptions. It has three work streams – on regular communication about latest developments over tariffs, identifying immediate challenges faced by businesses and workers and reviewing existing measures, and looking at longer-term strategies.

The review replaces the third work stream on longer-term strategies, said DPM Gan at an hour-long press conference held at The Treasury.

The five committees – each headed by two political office-holders – will engage businesses, workers and other stakeholders to gather feedback and ideas in the coming months.

"Hopefully by early next year, we will be able to give an update together with a list of key recommendations,” DPM Gan said.

He added that the committees, which report to the task force, will publish a final report with their recommendations by mid-2026.

The first of the five committees focuses on Singapore’s global competitiveness. It is led by Mr Jeffrey Siow, Acting Minister for Transport and Senior Minister of State for Finance, and Ms Low Yen Ling, Senior Minister of State for Trade and Industry, and Culture, Community and Youth.

The second committee looks to harness technology and innovation, such as artificial intelligence, to drive economic growth and competitiveness.

It is headed by Ms Jasmin Lau, Minister of State for Education and Digital Development and Information, and Ms Goh Hanyan, Senior Parliamentary Secretary for Culture, Community and Youth, and Sustainability and the Environment.

The third committee covers entrepreneurship and, in particular, Singapore’s start-up ecosystem.

It is headed by Mr Alvin Tan, Minister of State for National Development and Trade and Industry, and Mr Dinesh Vasu Dash, Minister of State for Manpower and Culture, Community and Youth.

The fourth committee looks at Singapore’s human capital, by empowering workers with relevant skills and enabling career mobility and resilience.

The heads are Mr David Neo, Acting Minister for Culture, Community and Youth and Senior Minister of State for Education, and Dr Koh Poh Koon, Senior Minister of State for Manpower and Health.

The fifth committee is looking at managing the impact of restructuring the economy on businesses and workers.

It is headed by Mr Goh Pei Ming, Minister of State for Home Affairs and Social and Family Development, and Mr Desmond Choo, Minister of State for Defence and deputy secretary-general of the National Trades Union Congress.

Of the 10 co-chairs, six are newly elected MPs from the May 3 general election.

The six – Mr Siow, Ms Lau, Ms Goh, Mr Dinesh, Mr Neo and Mr Goh – were appointed to political office at the latest Cabinet reshuffle, along with Mr Choo.

Each committee also has eight to 11 members from the private sector, unions and other relevant stakeholders.

Asked about the composition of the committees, which include first-time political office-holders, DPM Gan said “this is a very critical review” under SERT, and the current structure would allow for a balance of both experienced and younger office-holders across the entire task force.

The existing SERT includes more experienced ministers like Minister for Digital Development and Information Josephine Teo, Minister for Manpower Tan See Leng and Minister for National Development Chee Hong Tat. Mr Siow was also appointed to the task force in end-May after being named to the Cabinet.

The younger office-holders bring new perspectives, look at issues from a different angle, and may also generate new ideas and recommendations, said DPM Gan.

“You have the benefit of both the old and new, the young and older, more experienced and fresh political office-holders contributing towards the ideas and discussion... This composition is probably the most effective,” he added.

SERT was launched in April on the back of US President Donald Trump’s surprise announcement of widespread tariffs across the world, including 10 per cent on Singapore.

In its most recent update in July, the task force held a press conference to provide an update on two of its work streams.

It announced two support packages for businesses and workers aimed at helping with the fallout of trade disruptions.

Asked why SERT’s third work stream, originally headed by two ministers, was replaced by the review committees with 10 office-holders, DPM Gan cited the rapidly evolving global situation.

“With the tariffs changing from month to month, sometimes from day to day, it is important for us to take a comprehensive review and not rush into a conclusion of what we should do in the longer term. That’s why we decided that we have to take a broader review of the economic strategy,” said DPM Gan.

Providing an update on discussions about the 10 per cent tariff imposed by America, he said the Government intends to continue engaging the US on these matters.

The authorities are also currently in talks to work out a practical arrangement to allow Singapore continued access to the American market, which would involve concessionary tariffs on Singapore exports to the US, he added.

DPM Gan said he could not share more details as discussions were ongoing.

Asked if the recommendations from this latest review would build on the work of previous committees – such as the 2016 Committee on the Future Economy and 2020 Emerging Stronger Taskforce, he said the challenges today are “very different”.

The new regime of tariffs means challenges to the rules-based multilateral trading system that Singapore has relied on for decades, he said.

India and China are also still negotiating their tariffs and it is unknown how they will respond – for instance, whether they will reorganise their production bases or supply chains, he added.

“There are a lot of unknowns going forward but, at the same time, while these are challenges, there are also opportunities and possibilities,” he said.

It is therefore important to take a fresh look at Singapore’s strategies and examine whether these will remain relevant or need to be tweaked, and if new plans are needed to create opportunities, DPM Gan added.

Mr Siow said the committees are not abandoning the old strategies, but building on the foundation and fundamentals accumulated over the years.

“We want to not only build on them, we will of course review the strategies that we have in the light of this new world that we are facing.”

By Goh Yan Han, The Straits Times, via ANN