13 May 2026 

The Singapore National Employers Federation (SNEF) welcomes the Economic Strategy Review (ESR) Committees’ recommendations, which are a timely response to a global economic environment increasingly shaped by geopolitical and technological disruptions. The strategic imperatives that guide the recommendations will also be helpful to businesses that are looking to pivot and transform for the future. With a thriving ecosystem that fuels business growth, we can create good jobs and support workers in their transition so as to achieve win-win outcomes.    

Supporting employers to adopt AI confidently and sustainably 

2 SNEF supports the recommendations to accelerate economy-wide artificial intelligence (AI) adoption, and advance an AI strategy that complements workers. The Ministry of Manpower’s (MOM) inaugural report on AI adoption among firms shows that AI adoption remains uneven and structural barriers continue to constrain uptake, particularly among SMEs. To unlock AI’s transformative potential, adoption must go beyond its current concentration in larger or technology-focused firms, to cover firms of all sizes across the economy. Broad-based AI adoption is critical to ensuring that our businesses can compete on the global stage which would fuel our economic growth and benefit both employers and workers.  

3 SNEF is committed to working with MOM and NTUC to coordinate action to address the impact of AI, through the Tripartite Jobs Council, in support of the Government’s efforts under the National AI Council. As noted in the ESR report, Singapore’s focus would not be on competing at the technology frontier for AI development but to enable AI solutions to be integrated into businesses to deliver real impact on growth and productivity. As a programme partner of the Enterprise Workforce Transformation Package, SNEF will concentrate our efforts on assisting employers in understanding AI, identifying potential gains from its adoption, redesigning jobs, and retraining workers to maximise the benefits of AI.  

Smoothening firm restructuring and transition  

4 SNEF also supports the ESR Committees’ recommendations to enable firms to restructure and transition more smoothly, coupled with strengthening transition support and the ecosystem of career and employment services. We must recognise that as businesses transform, some restructuring is unavoidable and we fully support efforts to help both employers and workers navigate this transition. Smooth and quick transitions are better for employers, workers and the economy as a whole, especially as economic cycles shorten and success becomes more unpredictable. To support responsible business transitions, SNEF is ramping up our advisory services to better advise employers on responsible retrenchment through the setup of our Advisory, Resource and Consultancy Centre.  

5 It is also in the broader interest of the economy and employers to enable workers affected by restructuring or skills obsolescence to quickly get back on their feet and rejoin the labour force. As such, SNEF will work with MOM and NTUC to encourage employers to provide early notification of retrenchments and shorten mandatory retrenchment notification timelines. This will enable the newly formed Skills and Workforce Development Agency, together with the Employment and Employability Institute, to mobilise its employment facilitation services, and contribute to affected workers’ swift return to the labour force. With the ESR Committees’ recommendations, affected workers will also be able to avail themselves of a range of options based on their needs, from improved transition support to a stronger set of career and employment services augmented by private sector providers offering more specialised services.  

Conclusion 

6 The ESR Recommendations have set out a clear blueprint to take our economy forward, from building our leadership positions in key areas, reinforcing our trusted hub status to building a dynamic business ecosystem. Further investments into building resilience in energy, partnerships and supply chains would give our businesses a firm footing in an unpredictable world. SNEF looks forward to working with the Government and other stakeholders to translate these recommendations into actions that will propel our businesses and the economy forward. At the same time, as a champion for responsible employment practices, SNEF is committed to working closely with the labour movement to ensure that workers are not left behind – a resilient, adaptable and highly skilled workforce is what builds thriving businesses.  

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