Benefits of AI push in key sectors could spill over to wider economy: Tan See Leng

Singapore is banking on artificial intelligence (AI) to revolutionize the advanced manufacturing, logistics, healthcare, and connectivity sectors, believing this will stimulate growth throughout the country's economy. These four critical industries contribute more than 40 percent of Singapore's Gross Domestic Product (GDP) and are the primary focus of the nation's AI strategy unveiled in February through Budget 2026.

Tan See Leng, Minister for Trade and Industry (Energy and Industry), stated at a panel discussion during Singapore IP Week 2026 on August 26 that this transformation could yield benefits for neighboring industries and the broader economy. Addressing the group, Tan highlighted that Singapore has invested extensively in talent and ecosystems in these key sectors, providing it with a deeper understanding of potential opportunities.

However, Tan emphasized that the magnitude of AI's impact will also rely on individual companies' capabilities to reorganize and innovate their processes. Acknowledging Singapore's relatively small population of approximately six million people, Tan stressed the importance of continuously innovating and cultivating a skilled workforce, capital, and expertise.

Tan Kong Hwee, CEO of the Intellectual Property Office of Singapore, moderated the discussion, which centered on how nations should navigate the challenges of geopolitical tensions, trade barriers, and rapid technological disruption. Hem Vanndy, Cambodia's Minister of Industry, Science, Technology, and Innovation, also participated in the panel.

He acknowledged that AI presents both opportunities and risks for Cambodia as it embarks on a digital transformation journey. By the end of 2026, all public services in the country are expected to be integrated into digital platforms; however, businesses must also be capable of utilizing these systems. Venndy emphasized that the government will provide support to facilitate this transition, stressing the importance of equipping the workforce with necessary skills to handle AI advancements and enhance productivity.

Both Singapore and Cambodia's digital initiatives are unfolding amidst geopolitical tensions, increased trade barriers, and shifting global supply chains. Tan reiterated the necessity of maintaining an open approach to ensure continued success.