Speech by Deputy Prime Minister and Minister for Trade and Industry Gan Kim Yong at MTI Committee of Supply Debate 2026

“Securing Singapore's Next Phase of Growth and Good Jobs” 

Mr Chairman, 

Introduction 

1.                  Let me thank all members who have spoken on MTI’s COS. Last year, Singapore’s economy grew by 5%, performing better than expected despite the challenging global environment. 

2.                  At the same time, we must be clear-eyed. Singapore is entering a new phase in our economic journey. 

3.                  The rules that allowed Singapore to prosper for decades have fundamentally changed. 

a.             We face a more complex global environment, marked by heightened great-power competition, rising protectionism, and a more fragmented global order. 

b.             The US Supreme Court has struck down the ‘reciprocal’ tariffs that were imposed last year, and the US Administration has since replaced it with a new Section 122 tariff of 10% for up to 150 days. President Trump has also announced that he intends to raise it to 15%. The details are not there yet. There is still considerable uncertainty about how the tariffs will evolve over time. We are working with the SERT tripartite members to provide information to and gather feedback from businesses and workers to help them navigate these uncertainties. 

c.             These developments exemplify the unpredictable and uncertain global trading environment that we must now navigate. 

4.                  That is not all. Over the weekend, the conflict in the Middle East escalated, with the US and Israel launching an attack on Iran, and Iran retaliating by counter-attacking Israel and US’ bases in the region. The Strait of Hormuz, which is a key shipping route for crude oil and Liquefied Natural Gas (LNG), has been closed. In the near-term, this could result in an increase in global energy prices. Depending on how protracted the conflict is, higher energy prices could lead to higher costs for businesses and consumers, and weigh on the global and Singapore economies. We are monitoring developments closely and will reassess our GDP and inflation forecasts if necessary. 

5.                  Major structural forces are also reshaping industries, businesses and jobs. 

a.             AI and automation are transforming how value is created, and how work is organised. 

b.             The global push to decarbonisation is also changing industrial processes, influencing investment patterns, and impacting relative competitiveness. 

6.                  Together with our demographic constraints I spoke about last week, sustaining growth and creating good jobs will become more challenging. Yet even in this more difficult environment, there are good opportunities for Singapore as a trusted, knowledge-driven and connected hub. 

7.                  This is why the Government set up the Economic Strategy Review (ESR) – to take a hard, honest look at Singapore and how Singapore must reset our economic strategy. 

8.                  We will have to work harder and smarter, be creative and take calculated risks, and explore bold solutions to reach the higher end of our GDP trend-growth of 2-3% p.a. on average over the next decade and create good jobs. 

9.                  Let me outline broadly five strategic thrusts and my colleagues in MTI will elaborate later. 

Our Growth Strategy: Five Key Strategic Thrusts 

Establish Leadership in Key Growth Sectors — and Push the Frontier into New Growth Areas 

10.             First, we must establish and deepen our leadership in key growth sectors, while pushing the frontier into new areas of growth. 

11.             As our economy matures, growth and good jobs can no longer come from scale alone. Growth must increasingly come from depth — by establishing and deepening global leadership in sectors where Singapore already has strong foundations. 

12.             Mr Saktiandi Supaat asked about our plans for the advanced manufacturing, trust-based services and frontier sectors. 

Advanced Manufacturing 

13.             Singapore is already a global node in advanced manufacturing sectors such as semiconductors, medical products, specialty chemicals and aerospace, which contribute significantly to our economy and provide good jobs. 

14.             We want to secure and extend our leadership in these sectors – 

a.             We will step up investments in AI, automation and digital technologies to raise productivity, improve quality and reliability, and become more flexible and resilient. 

b.             As factories become more automated and data-driven, demand will grow for skilled jobs such as automation and robotics engineers, process engineers, data specialists and advanced equipment technicians, that command higher wages. 

c.             We will also focus R&D resources to sharpen our technological edge, shorten innovation cycles, and help firms move ideas faster from the lab to the factory floor and into the market. 

d.             In parallel, we will accelerate the adoption of low-carbon and resource-efficient technologies, so that our industries remain competitive as the world transitions to a low-carbon future. 

e.             By reinforcing these strengths, we will build deep, competitive ecosystems that anchor high-value activities here and support good, skilled jobs for Singaporeans. 

Modern Services 

15.             Beyond manufacturing, we are also extending our lead in modern services. 

16.             In this fragmented and uncertain world, trust has become the most sought after asset. 

17.             Our trust premium has enabled us to establish ourselves as a global hub for finance, capital and intellectual property. We will build on this to develop Singapore as a global hub for trust-based services, such as risk advisory, cybersecurity, AI assurance, and Testing, Inspection and Certification. This will create new opportunities in modern services. 

Pushing the Growth Frontier 

18.             Even as we deepen our existing strengths in advanced manufacturing and modern services, we must also push the frontier into new areas of growth, such as quantum, decarbonisation technologies and space-related industries. As these industries grow, they will open up new career opportunities for Singaporeans. 

19.             Taken together, this will deepen what we already do well in advanced manufacturing and modern services, while creating new engines and expand Singapore’s growth frontier — and secure high-quality jobs for Singaporeans. 

Sustain a dynamic and vibrant enterprise ecosystem 

20.             Second, we must sustain a dynamic and vibrant enterprise ecosystem, spanning multinational corporations, high-growth companies, and a vibrant start-up community. 

Anchoring leading MNCs 

21.             Leading MNCs – both local and foreign, will continue to be a core pillar of our economy. They bring scale, advanced technologies, global networks and high-quality jobs. 

22.             We will continue to work with MNCs to anchor high-value activities here, including R&D, advanced manufacturing, regional and global headquarters functions, and strategic roles. 

Nurturing a New Generation of Globally Leading Companies 

23.             At the same time, the next phase of growth will increasingly come from a new generation of emerging enterprises – growth-stage companies that have yet to establish themselves as leading MNCs, but have demonstrated both potential and ambition to become future industry leaders. 

24.             We must be prepared to take some risks to support such promising enterprises by providing them with a trusted base to operate from and scale to international markets. 

a.             One such company is Workato, an enterprise software firm that helps businesses automate workflows and integrate systems across their operations. 

b.             Workato’s Asia-Pacific revenue has increased 10-fold over the past five years, with a customer base of more than 12,000 companies across sectors such as manufacturing, financial services and healthcare. 

c.             Singapore can serve as a strategic base for Workato’s global expansion, anchoring product development, AI innovation and regional leadership here, while creating high-value opportunities for Singaporeans and strengthening our talent pipeline. 

25.             I agree with Mr Kenneth Goh that anchoring and partnering companies like Workato in Singapore at an early stage of their growth is important as it would allow us to shape where strategic HQ decisions are made, where core capabilities are built, and where long-term value is created. As these companies grow from Singapore, they will create new roles here in areas such as R&D, product management, marketing and business development. 

a.             EDB will step up efforts to identify and anchor such companies, working closely with leading venture capital and private equity partners.

b.             We will provide bespoke, end-to-end support, such as market access assistance, regulatory facilitation and access to ready-to-use facilities, to help these companies anchor in Singapore and grow their presence here. 

26.             Done well, this will allow us to capture long-term economic value, strengthen our pipeline of leading enterprises, and reinforce Singapore’s position as a trusted base for globally leading companies to be here and to scale. We will not just be a landing pad, but also a launching pad for potential global companies. 

Sustaining a Vibrant Start-up Community 

27.             Alongside this, we will continue to sustain the vibrancy of our start-up community and foster an entrepreneurial culture where people dare to dream and take risks. 

28.             MOS Alvin Tan will share more on our plans for our start-ups. 

29.             By sustaining a dynamic and vibrant enterprise ecosystem, we will reinforce Singapore’s position as a trusted and connected base for global businesses, and ensure that our economy remains at the forefront of innovation and growth.

30.             For our enterprises to raise productivity, upgrade capabilities, and scale innovation faster than before, AI is a critical enabler. 

Establish Singapore as an AI leader and AI-empowered economy 

31.             Our third thrust is therefore to establish Singapore as an AI leader as well as an AI-empowered economy. 

Empowering Enterprise AI Transformation 

32.             We want to empower our companies to harness AI end-to-end, by redesigning business processes, embedding AI into core operations, developing proprietary applications, transforming workflows, and upgrading jobs and skills. 

33.             To date, we have supported over 60 companies to establish AI Centres of Excellence. These are in-house teams focused on developing and deploying AI solutions. 

34.             We will take this further by launching a “Champions of AI” programme later this year. 

a.             Under this programme, we will target a select group of Singapore-based companies with the ambition and commitment to make AI a core driver of productivity, innovation and growth. 

b.             We will partner these companies to transform their businesses, by embedding AI across core operations, organisational processes, and workforce practices.

c.             This includes leadership and workforce training, as well as support to develop and execute AI transformation projects with clear and measurable business impact. 

d.             These companies will also invest in retraining and upskilling their employees, enabling their workers to take on high-value AI-enabled job roles. 

e.             Let me give DBS as an example. 

                                                              i.                   AI has been embedded throughout the bank’s operations, from customer engagement to risk management and operational efficiency.

                                                            ii.                   For instance, through personalised AI-driven nudges, DBS guides retail customers to make better investment and financial decisions. These customers saved twice as much, invested five times more and had nearly three times higher insurance coverage than those who did not.

                                                           iii.                   In risk management, AI analyses millions of transactions daily to detect unusual patterns and intercept suspicious activity in real-time to better protect its customers. 

                                                           iv.                   DBS has also deployed AI in institutional banking, reducing processing times for trade documentation by 60%. This helps businesses move faster with greater certainty, especially in cross-border transactions.  

                                                             v.                   DBS is equipping all 40,000 of its employees with the foundational understanding and practised exposure to AI. 

                                                           vi.                   It is also reskilling employees into new jobs that are being created through the integration of AI – for example, from Customer Service Officers into AI Agent Monitoring Managers and Gen AI Evaluators. 

                                                         vii.                   AI has also provided some employees with the opportunity to move into new career pathways – for instance, from customer service roles into relationship management roles. 

                                                       viii.                   DBS’s journey demonstrates how companies can deploy AI to enhance business value while strengthening their workforce. In 2025, DBS reported that the economic value from its data analytics, AI and Machine Learning initiatives achieved a record of approximately S$1 billion. 

f.               AI champions are pathfinders. We will learn from their experiences, show the way forward, and give other firms the confidence to move faster and deeper in their own AI journeys. 

Establishing Sector-Wide AI Leadership 

35.             We also want to be an AI leader in the development, testing, deployment and scaling of AI. 

36.             We will drive AI transformation at the sector level through AI Missions – starting with advanced manufacturing, connectivity, finance and healthcare, sectors where Singapore already has strong foundations. 

a.             For each Mission, we will work with industry to define sharp, sector-specific problem statements in areas where AI can drive breakthrough transformations. 

b.             Around each Mission, we will build full-stack ecosystems — including datasets, computing resources, regulatory sandboxes, and solution providers. This will shorten the path from development to deployment, and from testing to scale. 

c.             These Missions will generate demand for new skills, creating clusters of expertise anchored in Singapore. 

d.             AI Missions serve as rallying flags to attract global AI talent and companies focused on real-world applications, mobilise whole-of-nation efforts across the Government and industry, and concentrate investment and enablers for greater impact. 

37.             We will also establish an AI Park as a focal point where talent, problem owners, researchers and resources can come together to create synergy and nurture a deep ecosystem. 

a.             We already have Lorong AI; and we will now build an entire ‘Kampong’ – Kampong AI at One-North. 

b.             ‘Kampong AI’ will accelerate collaboration, and serve as a centre of gravity for AI excellence. 

38.             These efforts – ‘Champions of AI’, AI Missions and Kampong AI – will position Singapore as a place where AI solutions are built, proven and scaled – empowering firms across the economy, and establishing AI leadership in key sectors. 

39.             Even as we grow our economy, our competitiveness will depend not only on innovation, but also on the ability of our businesses to adapt, reposition and transform. 

Enable our businesses to proactively navigate transitions 

40.             Firms will increasingly face the need to relook at how they operate. Business models that once worked well may no longer be viable under the current and future environment. 

41.             In response, firms may need to pursue different pathways — transforming their business models, restructuring their operations, or, where necessary, scale down or even exit specific products, services or parts of their operations. Our next thrust is therefore to support our businesses to proactively and confidently navigate these transitions. 

a.             Such adjustments are a normal and necessary part of economic renewal. 

b.             But we recognise that the process can be difficult, challenging and sometimes, painful. 

42.             We will work closely with Trade Associations and Chambers, enterprises, and the labour movement to support firms as they go through these transitions — helping them assess their options early, restructure responsibly, pursue new growth opportunities including exploring overseas markets, and manage change in a way that strengthens long-term competitiveness and supports workers through the transition. 

Strengthen connectivity and linkages to global markets, and more aggressively support firms to internationalise 

43.             I agree with Mr Shawn Loh that with our small domestic economy, many growth opportunities lie beyond Singapore’s shores. We want to help our companies to not only export their products and services, but also to expand and invest internationally.  This will allow them to benefit from the growth of the global economy, while anchoring value, capabilities and leadership functions here in Singapore. 

a.             We will step up support for leading companies pursuing significant overseas ventures that may involve higher risks and capital outlay, especially in developing and emerging markets, but which give them a real and lasting foothold in key markets and value chains. 

b.             In addition to growing their revenue and profits from overseas, these companies will bring value back to Singapore through better jobs, stronger demand for local capabilities, and deeper integration into global growth opportunities. 

c.             I agree with Ms Elysa Chen and Mr Victor Lye on the importance of supporting and preparing our entrepreneurs and workers embarking on internationalisation. Ministry of Manpower will share more on this. 

44.             We will also safeguard and expand our international economic space. MOS Gan Siow Huang will elaborate more on our plans to deepen and diversify our economic links with our trading partners. 

Conclusion 

45.             Mr Chairman, the global environment will remain uncertain. The road ahead will not be easy. But Singapore has succeeded so far not by waiting for certainty, but by planning long term, acting early, and moving ahead decisively. 

46.             The ESR has outlined our strategy going forward. Our five strategic thrusts build on our strengths, embrace new opportunities, harness technology, keep Singapore open and connected, and support our people through change, every step of the way.  

47.             Growth must translate into good jobs for Singaporeans. 

48.             Above all, our strategy is to give workers the confidence to adapt, businesses the ability to compete, and every Singaporean a share in our progress and a stake in our future. 

49.             If we continue to stay united, remain agile and nimble, and keep investing in our people, Singapore will not just navigate change — we will shape it. 

50.             Thank you.