Singapore Prime Minister Lawrence Wong warned on October 8, 2026, at the Forbes Global CEO Conference that the global tech rally driven by artificial intelligence will eventually face a market correction. While he did not provide a specific timeline for this shift, he urged the nation to utilize the current period of strong demand to strengthen its economic capabilities.
The semiconductor industry in Singapore currently accounts for approximately 10% of global production. Major companies such as GlobalFoundries and Micron operate within the country, contributing significantly to the local economy. This sector has also bolstered related industries, including logistics and professional services.
Due to strong non-oil exports linked to the semiconductor sector, Singapore has revised its GDP growth forecast for the year to a range of 4.5% to 5.5%. Despite these positive indicators, the government is focusing on long-term stability by attracting investment and improving the skills base.
Regarding the labor market, Wong highlighted the importance of the country's tripartite model, which involves cooperation between the government, employers, and unions. He emphasized that policy measures should focus on protecting workers during AI-related industry disruptions rather than attempting to preserve every individual job.
