Singapore has initiated a comprehensive new strategy aimed at future-proofing its economy amid mounting geopolitical tensions and global disruptions.
Unveiled on 4 August 2025 by Deputy Prime Minister (DPM) Gan Kim Yong, the Economic Strategy Review (ESR) seeks to prepare Singapore for long-term economic shifts, including the implications of rising US tariffs and rapid technological changes.
The ESR will serve as a strategic platform to formulate forward-looking policies that secure quality opportunities for businesses and workers across Singapore.
DPM Gan, who also chairs the Singapore Economic Resilience Taskforce (SERT), said the country has laid a strong foundation in infrastructure, workforce capabilities, and international connectivity.
“We have built up very strong fundamentals, including our very high-quality infrastructure, our highly skilled workforce, our extensive connectivity both in terms of digital connectivity as well as our trade agreements with our partners,” said DPM Gan.
He stressed that these advantages now need to be adapted and expanded upon in light of shifting global conditions.
“I think it is important for us to take a fresh look at building on the strengths that we have built over the years to chart the way forward,” he added.
The ESR will now take over the third work stream originally under the purview of SERT, aligning more closely with broader economic planning.
The review will report directly to SERT and will work through five specialised committees, each co-chaired by two political office-holders.
These committees will collaborate with stakeholders across sectors, including private industry representatives, union leaders, and other civil society actors.
Each committee is expected to carry out broad consultations with businesses and workers, ensuring a wide base of insights informs policy recommendations.
The final recommendations are targeted for release by mid-2026, offering a comprehensive set of measures tailored to ensure long-term economic sustainability.
The five committees will focus on different aspects of economic resilience and opportunity creation. As of the announcement, details of the committees’ thematic focus areas are yet to be fully released.
Singapore’s move comes in response to rising global economic headwinds, notably the resurgence of protectionist trade policies such as the US tariffs and a global technology race that is reshaping industrial and employment landscapes.
The ESR represents the latest in a series of coordinated responses by the Singapore Government to global economic shifts.
In April 2025, the Singapore Economic Resilience Taskforce was established to address more immediate uncertainties, especially those stemming from the escalating US tariff regimes.
While SERT remains focused on near-term challenges, the ESR will serve as a platform for medium- to long-term planning, aligning with Singapore’s broader economic and workforce transformation goals.
Singapore has historically positioned itself as a key node in global trade and innovation, benefiting from its open economy and strategic geographic location.
However, recent developments—such as trade frictions between major powers and fast-moving advances in automation and artificial intelligence—are increasing pressure on small, open economies to adapt quickly.
Stakeholder consultations and coordinated input from both government and non-government sectors are expected to play a role in shaping the ESR’s recommendations.
The process is intended to incorporate views from businesses, unions, and workers, with the aim of addressing broad concerns about economic resilience and adaptability.
The ESR follows previous strategic reviews, including the 2010 Economic Strategies Committee and the 2017 Committee on the Future Economy, both of which produced recommendations that informed subsequent government policy shifts.
The current ESR will likely revisit similar structural issues, including skills development, digital innovation, sustainability, and diversification of trade routes.
Its eventual recommendations are expected to inform the next phase of Singapore’s economic model, taking into account global volatility and the intensification of competition in advanced sectors.
As DPM Gan noted, the country’s continued ability to thrive will depend on how effectively it can refresh its strategic outlook.
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