Executive Summary.
Singapore has undergone rapid and transformative growth over the past 60 years, evolving into one of the world’s leading global cities. Its economic success has been driven by its emergence as a major hub for trade and business, alongside continuous technological innovation.
The AI Opportunity.
AI can support the next 60 years of Singapore’s growth, representing the next stage in the country’s economic journey. With a skilled workforce that is already making use of AI, Singapore is well-positioned to take full advantage of this transformational technology.
AI technologies will support higher wages.
AI could save Singaporean workers almost 21 working days a year by automating routine administrative tasks. This allows workers to focus on higher value tasks with greater earning power, leading to estimated higher wages of over 8%.
Optimising the manufacturing and finance sectors.
The top two sectors with the greatest opportunity from AI are Singapore’s manufacturing and finance sectors. In total, we estimate that AI could help grow the manufacturing sector by S$27 billion (US$20 billion) and the financial services sector in Singapore by almost S$8.4 billion (US$6.3 billion).
Maximising the Opportunity.
Singapore is leading the region when it comes to AI adoption. To maintain its comparative advantage, Singapore must:
Meet demand for skills training.
82% of Singaporean workers expressed an interest in taking up additional training to help them better use AI tools at work. Workers were most interested in practical training that would help them to use AI to automate repetitive tasks.
Formalise support for workers.
58% of current AI users said they had largely chosen to use AI tools at work themselves, while 27% said they had been encouraged to use AI tools by their company leadership. This reveals a “grassroots adoption” dynamic, and a need for a greater supply of formal skills training.
Bridge adoption gaps.
There is a 10% gap in self-reported regular use of AI between men and women, along with a 15% gap between university graduates and non-graduates. In order to maximise the potential from AI, Singapore must work to close these adoption gaps.
Developing AI Responsibly.
Singaporeans identified fears over misinformation, cybersecurity, and worsening data privacy as the potential outcomes of increased AI uptake that concerned them the most. Addressing these challenges will be vital in order to maintain public buy-in to the AI transformation.
AI can help to combat cybersecurity threats.
While AI could create new risks, it can also be a powerful cybersecurity ally. The combination of more effective prevention and faster response times from AI driven solutions could help prevent over 60% of the costs from cybersecurity threats and fraud.
Singaporeans want to see AI developed responsibly.
While the majority of adults are optimistic about the impact of AI on the country, 89% agree that it should be developed responsibly. Building trust will require responsible design and clear safeguards to ensure AI benefits everyone.
Securing Singapore’s Future.
AI can help Singapore sharpen its competitive edge — strengthening its position as Southeast Asia’s hub for trade and innovation. It can accelerate breakthroughs in medical research, and help the country navigate the long-term fiscal and workforce pressures of an ageing population.
Offsetting the effects of an ageing population.
By helping workers boost productivity and get more done, AI could offset over half of potential labour shortages in Singapore driven by an ageing population. Our research shows that today’s AI technologies are likely to augment 76% of workers, while fewer than 9% will need career transition support.
Accelerating R&D in the healthcare sector.
By integrating AI tools into pharmaceutical R&D, we estimate that Singapore’s biotech firms could reduce the average time for drug discovery by over 40%. This can help reduce the overall cost of drug development while also reducing the time it takes to deliver cures to the people who need them.
Helping companies navigate non-tariff barriers to trade.
Businesses can find it challenging to navigate the regulatory requirements of exporting beyond their borders. By helping ease current barriers to trade from different languages and aligning with different regulatory systems worldwide, we estimate AI could help boost exports for Singapore by over S$380 billion (US$280 billion).