SINGAPORE — Singapore must enhance productivity and shift towards more innovative activities to sustain its economic growth, said Minister for Trade and Industry (Energy and Industry) Tan See Leng on Wednesday, August 26, 2026.

Speaking at the Ministry of Trade and Industry Economic Dialogue 2026, Dr Tan highlighted Singapore’s small size and trade dependence, alongside a world that is increasingly fragmented and unpredictable. “These realities point to a simple conclusion: Singapore’s next phase of growth cannot come from using more land, adding more workers or emitting more carbon,” he said. Instead, growth must come from creating more value from existing resources globally.

Dr Tan also noted that geopolitical tensions and economic fragmentation are reshaping trade and investment, while technological advancements are transforming businesses and jobs. He acknowledged that Singapore has built a valuable foundation but must continue to evolve as global conditions change. “But getting us there will require us to make difficult choices under all of these uncertainties,” he added.

When asked about the government’s approach to the proposed western island development, Dr Tan said there are many uncertain development timelines involved and that detailed environmental studies will be conducted before any work begins. He stressed the importance of maintaining, if not increasing, greenery, citing recent discussions over Maju Forest as an example of Singapore’s competing needs.

Sources