At the 17 August 2025 National Day Rally, Prime Minister Lawrence Wong highlighted Singapore’s economic strategy as one of the five key focus areas for the nation. He began by addressing global trade challenges, particularly the impact of U.S. tariffs. The recent “Liberation Day” tariffs by the U.S. caused a sharp reaction in financial markets, triggering extensive negotiations. While some tariffs have been reduced, many remain high, with ongoing tensions between the U.S. and China. Singapore faces potential trade barriers as a small and open economy, and uncertainty persists regarding baseline tariffs on key industries.
To safeguard Singapore’s interests, the government convened the Singapore Economic Resilience Taskforce, chaired by DPM Gan Kim Yong. The Taskforce works closely with industry partners, union leaders, and younger office holders to implement targeted solutions for businesses and workers. Its focus is both immediate and long-term, reviewing economic strategies to adapt to a fragmented and contested global economy.
PM Wong emphasized innovation and technology as the nation’s overarching economic priority. Singapore has invested heavily in R&D over the past two decades, resulting in a strong biomedical sector that helped during the COVID-19 pandemic. Future-focused technologies, including quantum computing, are being developed in universities and research institutes, though breakthroughs may take 10–20 years.
Beyond R&D, rapid adoption of new technologies across industries is critical. Historical examples include the nationwide computerisation drive in the 1980s and adoption of the Internet in the 1990s, which transformed work and productivity. Now, AI is set to be the defining technology of our time. PM Wong highlighted AI’s recent advances, including gold-medal performance in the International Math Olympiad, and its widespread adoption for tasks ranging from call centre transcription to complex problem-solving.
AI is also being applied in workplaces to boost productivity. Examples include Tuas Port’s automation and Changi Airport’s potential automation of baggage handling. Multinational corporations, such as GE Vernova, use AI-driven facilities in Singapore for turbine repair, combining technology and human expertise. SMEs are also encouraged to leverage AI; Q&M Dental employs AI to analyse dental X-rays for faster and more accurate diagnostics.
The Prime Minister acknowledged that AI and technological change will reshape jobs. While some roles may disappear, new opportunities will emerge. Singapore’s strategy focuses on supporting workers through reskilling and upskilling. Initiatives include SkillsFuture and the SkillsFuture Level-Up Programme, which provides credits and training allowances to mid-career workers pursuing full-time or part-time study. A highlighted example is Vinoth Nanda Kumaran, who retrained in data engineering and analytics, now working as a Business Intelligence Developer.
PM Wong stressed that Singapore’s economic strategy is about creating jobs, enhancing productivity, and ensuring that Singaporeans remain at the centre of economic transformation. By combining innovation, education, AI adoption, and global competitiveness, Singapore aims to maintain a dynamic economy, offering good jobs and better lives for all citizens.
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