Firms must execute to stay competitive amidst global tensions: DPM Gan

Government to launch sector-specific initiatives as businesses race to automate workflows.

Singapore is prioritising connectivity, artificial intelligence (AI) deployment, and early energy transition to help firms navigate rising fragmentation and cost pressures, Deputy Prime Minister Gan Kim Yong said.

Speaking at CNBC Converge Live 2026 on 22 April, Gan said that the strategy comes amidst recent geopolitical tensions, which have led to higher energy prices, increased freight and insurance costs, and supply chain delays.

“The environment has become more challenging, and the margin for error has narrowed,” he said. “Competitive advantage will depend on the ability to make clear strategic decisions — and to execute them efficiently and effectively.”

On trade, supply chains are being redesigned for resilience rather than efficiency, with firms rethinking where they produce and invest.

Meanwhile, the technology sector, particularly with AI, is shifting from experimentation to deployment.

“Firms are no longer asking whether AI can create value, but how quickly they can integrate it into their business operations,” Gan added.

To support this, Gan said the government is launching sector-specific AI initiatives and working with firms to redesign workflows and integrate the solution into core processes, alongside investments in talent and infrastructure.

On energy, he noted that businesses must manage near-term cost volatility whilst preparing for long-term structural shifts.

Moreover, trust is becoming increasingly important as systems grow more complex, with demand rising for services such as cybersecurity, risk management, and AI governance.

“The world today is more complex, contested and fragmented,” he said. “The challenge for businesses is to navigate the near-term uncertainties, while staying positioned for these longer-term shifts.”