SINGAPORE: The artificial intelligence (AI) boom that has benefitted Singapore economically will not last forever, and the country's approach is to make good use of this window of opportunity to build new capabilities and create better jobs for Singaporeans, said Prime Minister Lawrence Wong on Thursday (Oct 8).
"No boom is forever. At some point, there will be a correction. And we don't know when it will happen, or how it will happen, we don't know who the casualties will be when it happens,” said Mr Wong, who is also finance minister.
“So our approach is to make good use of this window of opportunity now, where there is external demand, capitalise on it, build new capabilities and create better jobs for Singaporeans.”
He was speaking during a dialogue with Forbes Media chairman and editor-in-chief Steve Forbes at the Forbes Global CEO Conference held at the Shangri-La Singapore.
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Mr Wong said the current AI boom has benefited Singapore’s semiconductor industry and related industries, with positive spillovers in sectors such as logistics and professional services.
“We don't make the most advanced AI chips, but we have major firms here like GlobalFoundries, Micron, and they make memory chips and specialty chips, which are in demand now with the AI boom,” he said.
He added that Singapore has also built a semiconductor ecosystem that includes the precision engineering industry and equipment suppliers.
Prime Minister Lawrence Wong, and Forbes Media chairman and editor-in-chief Steve Forbes during the Forbes Global CEO conference at Shangri-La on Oct 8, 2026. (Photo: CNA/Ili Mansor)
Mr Wong said that no country can deal alone with the risk of powerful and autonomous AI systems going rogue, or by rogue actors misusing AI to cause harm.
While it is good that the United States has appointed a task force to oversee this space, the rules and standards for frontier AI development will eventually have to be international, he said.
“It cannot be just confined to a single country, so ideally international safeguards are put in place, perhaps under the auspices of the United Nations. But that will take time,” he said.
AI safety requirements will also depend on the needs and applications of various sectors, such as healthcare, finance and advanced manufacturing, said Mr Wong.
“I think that the requirements will vary from sector to sector, and the decisions every sector regulator will have to make will be what sort of decisions ought to remain within human control, where is the human in the loop, and what kind of safeguards do you have for your sector,” he said.
Such safeguards are already taking shape in areas such as finance and transport.
Mr Wong cited newly published guidelines by the Monetary Authority of Singapore on the use of AI in finance, and the testing of autonomous cars on Singapore roads – with a pilot by autonomous driving company Waymo letting the authorities test the technology and understand safety requirements before a broader rollout under some regulatory oversight.
Turning to AI’s impact on workers and the jobs market, Mr Wong said Singapore’s approach is “not to protect the job, but to protect every worker”. This is done through close cooperation between the government, employers, and unions over the decades, he said.
During the dialogue, Mr Wong also highlighted the impact of tariffs on the economy and called for free trade and freedom of navigation globally.
“We are concerned that what's happening in Hormuz may set a precedent for elsewhere, because if a critical international waterway can be weaponised or arbitrary tolls imposed on shipping through something like Hormuz, then countries may be tempted to do the same elsewhere,” he said.
He drew comparisons with the Strait of Malacca and Strait of Singapore, which he called a “critical maritime chokepoint” in this part of the world.
Mr Wong said he has discussed this issue with his counterparts in the other littoral states – Malaysian Prime Minister Anwar Ibrahim and Indonesian President Prabowo Subianto – and they are fully aligned on the principle that “international waterways must remain open, freedom of navigation and the right of transit passage has to be respected”.
“Even if you may hear rhetoric to the contrary, the leaders are aligned. We will defend these principles strongly, and we will work with partners to uphold these principles,” he said.
Mr Wong said Singapore has “not been able to understand” the tariffs imposed by the US, but that it cannot do anything. “The right tariff should be zero,” he said.
He added that other countries are also putting up more trade barriers, amid increasing concern about competition.
“There's concern that exports from other countries will impact local industries, will impact jobs. So you can see the pendulum shifting,” he said.
While this does not mean trade will stop, the global economy will become more fragmented by regions, he added.
Noting the importance of trade to Singapore, Mr Wong said the country cannot afford to turn inwards, as it “will get poor very quickly” if it does so.
It therefore aims to accelerate the integration in ASEAN, adding that it will have initiatives to do more on that front when it takes the chair of the regional bloc next year, he said.
“We will step up our connections with existing partners, and I think there are also opportunities with new regions like Latin America, Africa and the Middle East, which we hope to do more,” he said, adding that Singapore hopes to be a connector across different regions.
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"No boom is forever. At some point, there will be a correction. And we don't know when it will happen, or how it will happen, we don't know who the casualties will be when it happens,” said Mr Wong, who is also finance minister.
“So our approach is to make good use of this window of opportunity now, where there is external demand, capitalise on it, build new capabilities and create better jobs for Singaporeans.”
He was speaking during a dialogue with Forbes Media chairman and editor-in-chief Steve Forbes at the Forbes Global CEO Conference held at the Shangri-La Singapore.
CNA Games
Show More Show Less
Mr Wong said the current AI boom has benefited Singapore’s semiconductor industry and related industries, with positive spillovers in sectors such as logistics and professional services.
“We don't make the most advanced AI chips, but we have major firms here like GlobalFoundries, Micron, and they make memory chips and specialty chips, which are in demand now with the AI boom,” he said.
He added that Singapore has also built a semiconductor ecosystem that includes the precision engineering industry and equipment suppliers.
Prime Minister Lawrence Wong, and Forbes Media chairman and editor-in-chief Steve Forbes during the Forbes Global CEO conference at Shangri-La on Oct 8, 2026. (Photo: CNA/Ili Mansor)
INTERNATIONAL AI SAFEGUARDS
Mr Wong said that no country can deal alone with the risk of powerful and autonomous AI systems going rogue, or by rogue actors misusing AI to cause harm.
While it is good that the United States has appointed a task force to oversee this space, the rules and standards for frontier AI development will eventually have to be international, he said.
“It cannot be just confined to a single country, so ideally international safeguards are put in place, perhaps under the auspices of the United Nations. But that will take time,” he said.
AI safety requirements will also depend on the needs and applications of various sectors, such as healthcare, finance and advanced manufacturing, said Mr Wong.
“I think that the requirements will vary from sector to sector, and the decisions every sector regulator will have to make will be what sort of decisions ought to remain within human control, where is the human in the loop, and what kind of safeguards do you have for your sector,” he said.
Such safeguards are already taking shape in areas such as finance and transport.
Mr Wong cited newly published guidelines by the Monetary Authority of Singapore on the use of AI in finance, and the testing of autonomous cars on Singapore roads – with a pilot by autonomous driving company Waymo letting the authorities test the technology and understand safety requirements before a broader rollout under some regulatory oversight.
Turning to AI’s impact on workers and the jobs market, Mr Wong said Singapore’s approach is “not to protect the job, but to protect every worker”. This is done through close cooperation between the government, employers, and unions over the decades, he said.
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NAVIGATING GEOPOLITICS
During the dialogue, Mr Wong also highlighted the impact of tariffs on the economy and called for free trade and freedom of navigation globally.
“We are concerned that what's happening in Hormuz may set a precedent for elsewhere, because if a critical international waterway can be weaponised or arbitrary tolls imposed on shipping through something like Hormuz, then countries may be tempted to do the same elsewhere,” he said.
He drew comparisons with the Strait of Malacca and Strait of Singapore, which he called a “critical maritime chokepoint” in this part of the world.
Mr Wong said he has discussed this issue with his counterparts in the other littoral states – Malaysian Prime Minister Anwar Ibrahim and Indonesian President Prabowo Subianto – and they are fully aligned on the principle that “international waterways must remain open, freedom of navigation and the right of transit passage has to be respected”.
“Even if you may hear rhetoric to the contrary, the leaders are aligned. We will defend these principles strongly, and we will work with partners to uphold these principles,” he said.
Mr Wong said Singapore has “not been able to understand” the tariffs imposed by the US, but that it cannot do anything. “The right tariff should be zero,” he said.
He added that other countries are also putting up more trade barriers, amid increasing concern about competition.
“There's concern that exports from other countries will impact local industries, will impact jobs. So you can see the pendulum shifting,” he said.
While this does not mean trade will stop, the global economy will become more fragmented by regions, he added.
Noting the importance of trade to Singapore, Mr Wong said the country cannot afford to turn inwards, as it “will get poor very quickly” if it does so.
It therefore aims to accelerate the integration in ASEAN, adding that it will have initiatives to do more on that front when it takes the chair of the regional bloc next year, he said.
“We will step up our connections with existing partners, and I think there are also opportunities with new regions like Latin America, Africa and the Middle East, which we hope to do more,” he said, adding that Singapore hopes to be a connector across different regions.
Related:
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