Senior Minister Lee's Timely Call to Action

In a recent address that has resonated across Singapore, Senior Minister Lee Hsien Loong emphasized the pressing need for Singaporeans to continuously upgrade their skills amid a rapidly changing and unpredictable global landscape. Speaking on January 17, 2026, SM Lee highlighted how, despite Singapore's robust performance in 2025, the world remains in flux due to geopolitical tensions, trade disruptions, and technological shifts. His message, delivered at a key forum, underscores a core philosophy that has guided Singapore's development: adaptability through lifelong learning.

SM Lee's remarks come at a pivotal moment as the nation prepares for Budget 2026. He noted record achievements, such as PSA's highest-ever container throughput and Changi Airport's passenger recovery, signaling economic resilience. Yet, he cautioned that complacency could erode these gains. "Singaporeans should continue to upgrade themselves to stay useful and valued," he stated, urging both individuals and companies to invest in human capital.

This call aligns with Singapore's long-standing emphasis on meritocracy and continuous improvement, principles rooted in the nation's transformation from a developing economy to a global hub since independence in 1965.

Context of Global Uncertainties Shaping the Message

The world SM Lee described is marked by several interlocking challenges. Trade imbalances, exacerbated by protectionist policies in major economies, have disrupted supply chains. Geopolitical flashpoints, including U.S.-China rivalries and conflicts in Europe and the Middle East, add layers of instability. Technological advancements, particularly in artificial intelligence (AI) and automation, are reshaping job markets at an unprecedented pace.

For Singapore, a small, open economy heavily reliant on trade—which accounts for over 300% of its GDP—these factors amplify risks. In 2025, global growth hovered around 3%, but projections for 2026 suggest slowdowns due to higher interest rates and energy price volatility. SM Lee pointed to these dynamics, explaining how they demand agility from workers. For instance, sectors like manufacturing and logistics, pillars of Singapore's economy, face automation pressures where routine tasks are increasingly handled by machines.

His speech builds on earlier warnings, such as those at the Regional Outlook Forum 2026 in January, where he discussed regional economic prospects amid flux.

Singapore's Strong 2025 Performance as a Foundation

Before delving into the need for upgrades, SM Lee celebrated 2025's successes. The economy grew by an estimated 4-5%, outpacing many peers. Key indicators included:

• PSA handling a record 40 million TEUs (Twenty-foot Equivalent Units), reinforcing Singapore's port supremacy.
• Changi Airport welcoming over 60 million passengers, nearing pre-pandemic levels.
• Unemployment remaining low at around 2%, with wage growth in skilled sectors.

These milestones reflect effective policies, including forward Singapore partnerships and investments in infrastructure. However, SM Lee stressed that past performance does not guarantee future results in an era of black swan events.

Government Commitments to Skills Development

The government plays a central role in facilitating upgrades, as reaffirmed by SM Lee. Programs under SkillsFuture Singapore (SSG), the national movement launched in 2015, provide Singaporeans aged 25 and above with credits—S$500 initially, topped up periodically—to pursue courses. By 2026, over 800,000 individuals have used these credits for more than 1.5 million training hours.

Recent enhancements include the SkillsFuture Jobseeker Support Scheme, offering up to S$6,000 monthly for mid-career individuals undergoing full-time training. For businesses, the Productivity Solutions Grant co-funds automation and digitalization. SM Lee announced intentions to expand these in Budget 2026, focusing on emerging areas like green energy and data analytics.

"The government will develop programmes to support individuals and businesses in upgrading themselves," he said, signaling sustained investment amid fiscal prudence.

SkillsFuture in Action: Real-World Examples

SkillsFuture has transformed lives across demographics. Take the case of mid-career switchers: A 45-year-old logistics supervisor, retrenched due to port automation, enrolled in a SSG-funded course on supply chain analytics. Within six months, he secured a higher-paying role at a tech-integrated firm, boosting his salary by 25%.

Statistics from SSG show 70% of participants reporting career advancements post-training. Sectors like finance and healthcare have seen uptake in AI ethics and telemedicine courses. For younger workers, the Enhanced Training Support Package subsidizes 90% of fees for diploma holders pursuing higher certifications.

Employers also benefit; companies like DBS Bank and Singtel run in-house SkillsFuture-aligned programs, reporting improved productivity. These stories illustrate how structured upgrading bridges skill gaps.

Challenges Faced by Singaporeans in Upgrading

Despite incentives, barriers persist. Time constraints top the list: Full-time workers struggle to balance courses with family and jobs. Cost, even subsidized, deters some, particularly self-employed individuals. Awareness gaps exist, with only 40% of eligible mid-career workers (40-60 years) utilizing credits fully.

Cultural factors play a role; the kiasu (fear of losing out) mindset drives some to chase credentials over practical skills. Moreover, rapid tech evolution means skills can obsolete quickly—coders today must pivot to AI tomorrow. SM Lee's call addresses these, advocating a mindset shift towards lifelong learning.

Stakeholder views vary: Unions like NTUC push for more employer-sponsored training, while SMEs cite resource limitations.

Employer Perspectives and Workforce Needs

From the business side, leaders echo SM Lee. The Singapore Business Federation surveys reveal 85% of firms prioritizing skills in hiring. Demand surges for digital natives proficient in cybersecurity, sustainable practices, and soft skills like adaptability.

Case in point: Semiconductor giant GlobalFoundries expanded in Singapore, creating 1,000 jobs requiring advanced manufacturing skills. Companies are partnering with SSG for customized training, ensuring alignment between education and industry.

SM Lee urged firms to "adapt and upgrade," noting how innovative companies thrive. This symbiotic approach—government funding, employer buy-in, individual effort—forms Singapore's skills ecosystem.

Broader Implications for Singapore's Competitiveness

Skills upgrading directly impacts national metrics. The World Economic Forum's Future of Jobs Report 2025 ranks Singapore high in reskilling readiness, but warns of widening inequality without inclusive programs. By fostering a versatile workforce, Singapore aims to sustain its top-10 IMD World Competitiveness Ranking.

Implications extend to social cohesion: Upskilling reduces unemployment disparities across ages and ethnicities, promoting harmony. Economically, it supports diversification into high-value sectors like biomedical sciences, where R&D spending hit S$20 billion in 2025.

Actionable Insights for Individuals

Ready to act? Start with self-assessment via MySkillsFuture portal, matching interests to 40,000+ courses. Prioritize in-demand skills:

• Digital: Data analytics, cloud computing.
• Green: Carbon accounting, renewable energy tech.
• Human-centric: Leadership, emotional intelligence.

Step-by-step: 1) Claim credits online. 2) Select SSG-approved providers. 3) Track progress for top-ups. Employers, explore grants at higher-ed-career-advice. For job seekers, platforms like higher-ed-jobs list opportunities valuing upskilled talent.

Success tip: Combine courses with networking via industry events.

Photo by Van Tay Media on Unsplash

Looking Ahead: 2026 and Beyond

Budget 2026, expected in February, will likely amplify skills initiatives. SM Lee's vision positions Singapore as a beacon of adaptability. With AI projected to automate 30% of jobs by 2030 (per McKinsey), proactive upgrading is non-negotiable.

Optimism prevails: If 2025 showcased resilience, 2026 can build antifragility. As SM Lee put it, staying "useful and valued" ensures prosperity in uncertainty.

Explore career paths at university-jobs or advice on higher-ed-career-advice. Singapore's journey continues—upgrade today for tomorrow's edge.