Singapore is betting that using artificial intelligence tools to transform the advanced manufacturing, logistics, healthcare and connectivity sectors will catalyse growth across the entire national economy.

The four vital sectors together account for more than 40 per cent of Singapore’s gross domestic product, and are main targets for Singapore’s AI push announced at Budget 2026 in February.

Minister for Trade and Industry (Energy and Industry) Tan See Leng said that transformation of the four high-stakes sectors may benefit adjacent industries and the wider economy.

Tan was speaking at a panel discussion titled Shaping Growth Strategies In A Dynamic Global Landscape at the Singapore IP Week 2026 on Aug 26.

Moderated by chief executive of Intellectual Property Office of Singapore Tan Kong Hwee, the discussion centred on how countries respond to increasing uncertainties marked by geopolitical tensions, trade barriers and rapid tech disruption.

Tan See Leng said Singapore had spent decades building up its talent and ecosystems in the four key sectors, giving it a better understanding of where the opportunities lie. But the extent of AI’s uplift will also depend on how well individual companies can transform and redesign their workflows, he added.

Singapore has to continue to innovate and develop its pool of talent, capital and expertise, said Tan See Leng, citing a small population of around six million people.

Cambodia’s Minister of Industry, Science, Technology and Innovation Hem Vanndy, who also spoke on the panel, said that AI presents both risks and opportunities for his country. Cambodia, which is in the midst of digital transformation, needs to ensure that businesses and workers are able to keep pace with these changes. For example, by the end of 2026, all public services are expected to be linked to digital platforms, but businesses must also be able to make use of them, the minister said, adding that the Cambodian government would provide support to help them make the transition.

“We are working quite hard to ensure that skill development is there. It’s not just about adoption and transfer of technology, it’s also how you prepare the workforce to handle AI, and how to improve productivity along the way,” he said.

Both countries’ digital push comes amid geopolitical tensions, increased trade barriers and shifting global supply chains.

“The main thing that remains constant has to be... committing to being open,” Tan See Leng said.