Economic Strategy Review to Develop New Blueprint for Singapore’s Business and Workforce Opportunities

On 4 August 2025, the Singapore Economic Resilience Taskforce (“SERT“) announced that the Government would embark on an Economic Strategy Review (“ESR“). The ESR seeks to chart a forward-looking economic blueprint and clear actions to secure good opportunities for businesses and workers, amidst structural shifts including geopolitical realignments and technological disruptions.

For background, SERT is a taskforce set up to: (i) help businesses and workers navigate the immediate uncertainties arising from the United States of America’s (“US’“) tariffs and related global developments; (ii) strengthen Singapore’s resilience; and (iii) position Singapore to thrive in the new economic landscape. For more information on SERT, please refer to our April 2025 NewsBytes article titled “SERT Formed to Develop Strategies to Cope with US Tariff Situation for Businesses“. In particular, SERT comprises the following three workstreams:

1. The first workstream focuses on “Sensemaking and Communication” on the latest US tariff developments;
2. The second workstream focuses on “Addressing Immediate Challenges” faced by businesses and workers; and
3. The third workstream focuses on developing “Longer-Term Strategies and Responses” to transform businesses and workers to seize opportunities in the new economic landscape.

On 10 July 2025, SERT announced targeted measures to support businesses and workers.

1. Business Adaptation Grant: A new Business Adaptation Grant will be launched by October 2025 to help eligible enterprises adapt to the new tariff environment for a period of two years. The scope of the grant will cover:

• • For enterprises who export to and/or have operations in overseas markets and are impacted by tariff measures: To conduct Free Trade Agreements and trade compliance advisory, legal and contractual advisory, and supply chain optimisation and market diversification advisory; and
  • For enterprises with manufacturing operations overseas or locally: To receive support for reconfiguration costs such as logistics and inventory holding costs.

The grant complements existing schemes which support businesses in entering new markets through overseas market promotion, set-up and development, undertaking business transformation and innovation activities, and accessing financing to further support their growth needs.

2. Support for workers: The Government will:

• • expand access to career guidance services to help workers and jobseekers navigate economic uncertainties; and
  • introduce temporary enhanced funding support for basic Human Resources (“HR“) certification for HR professionals, to help employers better manage and support their workforce amidst a volatile environment.

The ESR, which replaces SERT’s third workstream, will: (i) engage with businesses, workers, and relevant stakeholders to gather feedback and ideas; (ii) publish a report outlining the relevant recommendations by mid-2026; and (iii) comprise five committees who will develop longer-term strategies in the following five areas:

1. Global competitiveness: Strengthen Singapore’s global competitiveness by refreshing its comparative advantages. In particular, the Committee on Global Competitiveness seeks to strengthen Singapore’s economic standing and relevance to the world by:

• • improving Singapore’s long-term value proposition to continue to attract and anchor global investments and to seize growth opportunities, amidst a more protectionist and competitive landscape;
  • growing a strong base of Singapore firms anchored in Singapore and with a global or regional footprint, thus allowing them to capture new opportunities amidst the reshuffling of production and supply chains; and
  • securing Singapore’s future as a hub of existing and new flows, including of goods, capital, people, data, and energy. This will reinforce Singapore’s competitive positioning as a key hub for trade and investment, and one that is relevant to the global economy.

2. Technological innovation: Leverage technology and innovation to capture opportunities in new frontiers and to drive broad-based economic growth. In particular, the Committee on Technology and Innovation seeks to harness technology and innovation to drive economic growth and competitiveness for Singapore. It will focus on:

• • catalysing new economic opportunities, enabled by technologies such as artificial intelligence (“AI“);
  • driving innovation through leading firms and talent; and
  • accelerating AI transformation across the economy and spurring enterprises to adopt AI to harness new opportunities.

3. Entrepreneurship: Nurture entrepreneurship by deepening the ecosystem for start-ups from initial stages to scale-up and growth. In particular, the Committee on Entrepreneurship seeks to strengthen Singapore’s ecosystem for start-ups and entrepreneurship by attracting global founders to set up new businesses in Singapore, and by nurturing local entrepreneurs to support entrepreneurial aspirations and to contribute to an innovation-driven economy. It will put forth recommendations to:

• • enhance the competitiveness and attractiveness of the start-up ecosystem; and
  • grow the Singapore core for entrepreneurship.

4. Human capital: Enhance human capital to maintain Singapore’s competitive advantage and to ensure that locals can access good jobs. In particular, the Committee on Human Capital will focus on empowering workers with relevant skills, enabling career mobility and resilience, and equipping workers for future trends such as AI disruption and the green economy.
   
   
5. Employment restructuring: Manage the impact of restructuring so that all can share in Singapore’s future prosperity. In particular, the Committee on Managing Impact of Restructuring will explore recommendations to manage the impact of restructuring by:

• • supporting firms to transform and innovate so that they can capture new opportunities in the restructured economy, focusing on sectors at greater risk of disruption;
  • supporting workers affected by restructuring to manage the transition and to move into new job roles with better prospects; and
  • strengthening system-level enablers and safety nets to help displaced workers bounce back into employment.

The above developments augur well for Singapore’s position as a key node for doing business internationally and promotes Singapore as the key foreign direct investment hub for Asia. Our lawyers will be happy to support businesses as they look to expand within or beyond their borders, taking advantage of the above. 

Click on the following links for more information:

• Ministry of Digital Development and Information (“MDDI“) Press Release titled “Economic Strategy Review to Chart a New Economic Blueprint for Singapore” (available on the MDDI website at mddi.gov.sg)

• “Transcript of Remarks by Deputy Prime Minister and Minister for Trade and Industry at the Press Conference on the Economic Strategy Review” (available on the Ministry of Trade and Industry Singapore’s (“MTI’s“) website at www.mti.gov.sg)   

• MTI Press Release titled “Singapore Economic Resilience Taskforce (SERT) Announces Targeted Measures to Support Businesses and Workers” (available on the MTI website at www.mti.gov.sg)