Singapore urged to double down on AI and advanced manufacturing

Several segments are projected to generate $29t to $48t in annual revenue by 2040.

Singapore can lead the next wave of global growth if it doubles down on “bold bets” that made it a 7%-a-year growth story over the past six decades, according to McKinsey.

In a report, McKinsey framed the coming 20 years around “arenas of competition” such as AI, semiconductors, the digital economy, electrification, next-gen biopharma and physical-realm innovation.

These segments are projected to generate $29t to $48t in annual revenue by 2040, with APAC the largest market at $13t to $21t.

Historically, ASEAN captured less than 1% of activity in these arenas, but early signals in Singapore—from GlobalFoundries and Micron to Grab, Sea, TurtleTree and Equatorial Space Systems—suggest room to climb.

McKinsey laid out four imperatives. First, as trade fragments, Singapore should double down on being a connector; more than 30% of global trade could shift corridors by 2035, heightening the value of the city-state’s logistics and data links.

Second, it should adapt advanced manufacturing to become “AI-native,” embedding AI on production lines and coordinating real-time supply chains.

Demographics and automation make that shift urgent: the working-age share peaked at 79% in 2012 and is seen falling to 64% by 2050; generative AI could automate 30% of work hours by 2030; robotics may trim physical-labor demand by 11–16%. Robot density also lags Korea’s 1,012 per 10,000 workers, at 770 in Singapore.

Third, McKinsey said reskilling must become the universal enabler: the average “half-life” of skills is now less than 5 years, and roughly 2.5 years in tech and AI—calling for continuous, AI-powered learning and national frameworks.

Finally, the firm urged mobilising private capital. Singapore drew about $5b in VC in 2024 (just under 1% of GDP); “wealthtech” could unlock 45% of personal assets now sitting in cash and deposits across APAC, whilst a $5.8t intergenerational transfer over the next five years could fuel targeted investment—if policy tilts toward angel, VC and PE risk capital.

If you've been wondering whether SBR could work for your company — yes, probably.

A lot of the companies we partner with started as readers. They'd been following our coverage for a while, saw their own customers and competitors in it, and eventually asked the obvious question: could we do something with you? The answer is usually yes. The shape of it depends on what you're trying to do.

The options are broader than most people assume — thought leadership articles, sponsored content, industry summits across Southeast Asia, regional awards programmes, podcasts, and media placements in print and digital. Some partners use one channel; most use a mix. We figure out the right combination by starting with your brief, not with our rate card.

So if the question has been on your mind, here's the easy way to ask it.

We'll tell you honestly whether we can help, and how. It's a better use of everyone's time.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia