New report recaps Singapore’s economic transformation, sets out directions for the future
This includes strengthening the integration between the country’s research and economic transformation plans
SINGAPORE’S transformation efforts “have grown the overall economic pie for Singapore workers, even in the face of the pandemic shock”, and remain crucial for the future, said Deputy Prime Minister (DPM) Heng Swee Keat.
The Republic’s economic transformation over the past eight years – as well as some directions for its future – is set out in a new report launched by DPM Heng on Tuesday (Jul 23) at the Future Economy Conference and Company of Good Conference at the Singapore Business Apex Summit.
The four broad directions are: Strengthening Singapore’s role as a base for countries operating in the Asia region; strengthening the integration between its Research, Innovation, and Enterprise and economic transformation plans; supporting Singaporeans to upskill through tripartite partnerships; and going green to meet net-zero targets.
DPM Heng said that transformation efforts have helped Singapore perform better than comparable countries in the past seven years, with real value-added growth of 2.8 per cent per annum and labour productivity growth of 2.1 per cent per annum.
Incomes have risen in tandem, with the median income of full-time Singapore residents growing 1.5 per cent per annum from 2016 to 2023.
“Indeed, despite global headwinds and structural shifts, this latest chapter in our transformation has helped Singapore maintain its position among the world’s most competitive economies,” he said, citing Singapore’s ranking as the most competitive economy in 2024 by the International Institute for Management Development in June.
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Looking back
The new report, titled Transforming the Singapore Economy, highlights Singapore’s economic transformation efforts since 2016, including expanded partnerships within and across sectors.
In particular, the report covers the development and implementation of Industry Transformation Maps for 23 key sectors, which account for almost 80 per cent of the economy.
It also outlines the contributions of stakeholders such as business leaders, the labour movement, academia and trade associations and chambers in spearheading digitalisation, innovation, workforce transformation and internationalisation amid the pandemic.
Elaborating on the four directions laid out in the report, DPM Heng said that Singapore must continue to build on this “tripartite framework of trust” between workers, employers and the government. This could involve businesses rewarding workers appropriately when the company is doing well, for example, in order to maintain and enhance trust.
He also urged businesses to embrace technology and innovation “in a far bigger way”, noting that the future of Singapore’s economy will depend heavily on its ability to use science, technology and innovation.
Digitalisation and artificial intelligence will reshape the future of jobs, while biotech is also another area to watch, he added.
Said DPM Heng: “The convergence of artificial intelligence and biotech is going to change healthcare significantly in the years ahead. So we are in the midst of also rebuilding our research and development plan for the years 2026 to 2030.”
The three-day event, which is in its second edition, is held at the Sands Expo & Convention Centre.
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