More Support for Sectors, Workers Vulnerable to Tech Disruptions, Global Competition
Singapore is set to intensify support for businesses and workers in sectors that are particularly vulnerable to technological disruptions and global competition, such as general manufacturing, retail, and logistics.
This initiative forms a key focus for a new committee formed to manage the impact of restructuring under the Economic Strategy Review (ESR). This committee replaces the previous workstream of the Singapore Economic Resilience Taskforce, established to review long-term strategies for local firms amidst tariff-induced trade tensions.
At a press conference on August 4, Minister of State for Home Affairs and Social and Family Development Goh Pei Ming announced that the government intends to bolster support for companies, aiding them to explore new opportunities driven by global economic trends and mega projects.
“Our focus will be on sectors facing substantial cost pressures, technological disruptions, and global competition, necessitating significant restructuring,” he stated. These sectors notably include general manufacturing, retail, and logistics.
The government plans to actively support workers who are more susceptible to such disruptions, including professionals, managers, and executives (PMEs) affected by artificial intelligence (AI), as well as rank-and-file workers from sectors undergoing transformation and restructuring.
Mr. Goh highlighted the emergence of new opportunities as Singapore embarks on large development projects, adopts new technologies, and pursues energy transition. “Businesses in these sectors will need to innovate and adapt to seize these opportunities, and the government will support those with keen interest and viable ideas,” he emphasized.
Furthermore, new pathways will be developed for workers in less secure jobs, aiding their transition into roles with better job prospects. Social safety nets and assistance will be enhanced to facilitate the re-employment of displaced workers.
Moreover, Acting Minister for Culture, Community and Youth David Neo emphasized the success of SkillsFuture, launched a decade ago to upskill and reskill the workforce. “This initiative has yielded positive outcomes, with Singapore maintaining more than 2 per cent real wage growth annually after inflation adjustment,” he noted.
Looking ahead, the government will explore avenues to strengthen the link between career training and career outcomes, continuing to support real wage growth.
Mr. Neo also mentioned plans to develop a more effective career employment service ecosystem to assist Singaporeans in making informed career choices. “We aim to equip our workforce for future trends to seize new opportunities and manage risks from structural drivers affecting the economy, such as dual economic fragmentation, AI, and climate change,” he explained. “Strategies will focus on preparing workers in emerging markets and equipping them with AI skills for the workplace, enabling them to take on new jobs arising in our green economy.”
In addition to worker support, efforts to nurture local entrepreneurs will persist. Minister of State for Trade and Industry Alvin Tan highlighted the intensifying global competition for entrepreneurial talent, funding, and ideas. “We must accelerate our efforts to ensure Singapore remains the most attractive location for founders with big ideas,” he stated.
Mr. Tan pointed out the need to strengthen Singapore’s core in entrepreneurship while continuing to welcome top international talents. “Doubling down on our efforts to nurture a new generation of Singapore-based entrepreneurs is crucial, as they should possess the ambition, tenacity, and resilience to launch and maintain new ventures,” he added.
Addressing Singapore’s potential as a start-up hub amid rising business costs and a tight labor market, the committee examines creating a friendly infrastructural setup, talent development, and regulatory adjustments.
With around 30 unicorns in Singapore, accounting for approximately US$5 billion in venture capital flows, Mr. Dinesh Vasu Dash, co-chair of the entrepreneurship committee, asserted this is a sector with substantial growth potential. This expansion could contribute significantly to Singapore’s economy, creating quality jobs and offering better career trajectories.
