The proposals come as the city-state bets on artificial intelligence to transform its economy and its workforce, and as geopolitic tensions like the Iran war threaten to undermine growth and raise inflation.

Some of the recommendations made by the committee include that Singapore should respond to the difficult global environment by sharpening its value proposition and build agility and adaptability.

Singapore should persuade leading industries to “anchor” in the country, building on its role as a key node in supply chains for industries like semiconductors.

Promising sectors include quantum technologies and space technologies, which leverage existing capabilities in semiconductors, advanced manufacturing, aerospace and satellite systems, the committee said.

Singapore should also aim to be a “trusted hub” where AI is developed, tested and deployed, and could do this by attracting leading AI companies and talent.

Singapore should build on its role as an energy hub and build capabilities in emerging domains such as liquefied natural gas trading, as well as in hydrogen, ammonia, and sustainable aviation fuels.

Deputy Prime Minister Gan Kim Yong delivered a speech addressing the recommendations at a business federation conference on Wednesday.

He said, “In a changed world, Singapore cannot assume that yesterday’s strengths will automatically become tomorrow’s place.”