Singapore must significantly enhance its reskilling efforts to help workers adapt swiftly to the evolving economic landscape, Transport Minister Jeffrey Siow emphasized during a dialogue on August 3. Speaking at an event organized by the Singapore Institute of International Affairs (SIIA) at the Parkway Collection Marina Bay, Siow highlighted that Singapore’s smaller population can be transformed from a limitation into an advantage by enabling more targeted investments in each individual’s skills development.

“A smaller Singaporean population means more resources can be dedicated per person, allowing for more intensive training and faster access to reskilling opportunities,” Siow said. He noted that Singapore has made strides through its SkillsFuture initiative, launched in 2016 to support upskilling and reskilling among the workforce. This effort was further bolstered on July 1 by the merger of SkillsFuture Singapore with Workforce Singapore to form the Skills and Workforce Development Agency, aimed at creating a more cohesive ecosystem linking jobs and skills development.

Addressing questions on economic transformation, Siow acknowledged several structural challenges Singapore faces, including an ageing population, a persistently low fertility rate, and the need for better integration of newcomers. However, he identified energy supply as the most significant constraint. Singapore confronts difficulties in expanding renewable energy capabilities and is also affected by regional instability impacting traditional energy sources. In response, the government is exploring diversification options, including the potential adoption of nuclear energy.

Siow further outlined Singapore’s strategic pivot in the face of global shifts in trade dynamics. He emphasized that contemporary trade increasingly revolves around managing data flows and the coordination of goods and services rather than solely transporting physical products. Drawing on the example of PSA International, Singapore’s global port operator with over 70 terminals in more than 180 locations, Siow described efforts to orchestrate cargo movement across various hubs to mitigate disruptions. He expressed encouragement for PSA to expand similar strategies in air freight, reflecting recommendations from a recent economic strategy review he co-chaired.

Released in June, the committee’s report presented 32 recommendations across eight focus areas to prepare Singapore’s economy for the future. The vision aims to transform the city-state from a traditional trade and logistics hub into a centre for coordinating global flows of goods, services, and data.

In parallel, SIIA published a report on August 3 stressing Singapore’s resilience amid current global uncertainties and offering suggestions to enhance its competitiveness within ASEAN. These include encouraging Singapore-based investors to deepen their understanding of regional policies and strengthening ties with neighbouring areas such as Johor and Sumatra.

During a panel session following the dialogue, Foo Cexiang, PSA’s vice-president for port ecosystem development and incoming Minister of State for both Trade and Industry and Manpower, reflected on trade stagnation within ASEAN despite growth elsewhere in Asia. He identified Singapore’s advanced food manufacturing sector as a key asset positioning the country to become a regional food hub, potentially increasing intra-ASEAN trade flows. Foo also underscored the importance of multicultural skills among Singaporeans to foster stronger regional networks, describing cross-cultural competence as essential for further progress within ASEAN.