With artificial intelligence (AI) gaining importance across business operations, what will manufacturers need to do to prepare for the next phase of industrialisation? Singapore believes the answer lies in three key areas, as it looks to ready its manufacturing sector to transition to Industry 5.0.
With the preceding Industry 4.0 focused on smart factories, automation, and data exchange, Industry 5.0 will build on these as it looks to create human-centric and resilient production. This next phase of industrialisation will focus on collaboration between humans and AI-powered machines.
Industry 4.0 is marked by digitalisation and automation, revolutionising manufacturing through robotics, AI, and additive manufacturing, said Singapore’s Minister of State for Trade and Industry Gan Siow Huang, during her speech at Manufacturing Day Summit 2026.
“Industry 5.0 builds on these foundations, and is centred on people and how technology can augment human capability for better outcomes,” she said. “At the same time, Industry 5.0 integrates sustainability into every stage of the process.”
Gan said the transition is expected to encompass robots working alongside humans at more workplaces, with humans focusing on quality control and problem-solving.
Robots, on the other hand, will handle repetitive work, adjusting speed and tasks in real-time, and can be programmed to optimise energy consumption and reduce waste, she said.
With Industry 5.0, the narrative has shifted, noted Lennon Tan, president of Singapore Manufacturing Federation (SMF), which hosted the summit.
"It is no longer about machines replacing humans; it is about machines empowering humans,” Tan said at the event.
To steer Singapore’s manufacturing sector towards Industry 5.0, Gan highlighted the importance of three pillars: strong regional partnerships, talent, and sustainability that is embedded into business operations.
Citing a 2025 study released by SMF, she said 91% of manufacturers pointed to sustainability as critical to their global competitiveness, as low-carbon solutions grow in demand.
And with AI, advanced robotics, and digitalisation reshaping manufacturing, she added that factories in future will need a different workforce from those of the past.
Workforce needs upgrading for Industry 5.0
This underscores the need for Singapore to reskill its workforce, said Gan.
“The best strategy in the world can fail without the right people to execute it,” Tan said. “We cannot build Industry 5.0 with yesterday’s skills. We must radically upgrade our workforce.”
He noted that SMF, aims to address this through its Advanced Manufacturing Training Academy, which looks to nurture future skills for manufacturing.
SMF also will offer a chief AI officer-as-a-service scheme to provide businesses “fractional access” to AI expertise, so they can identify where AI can help drive returns, he said.
SMF currently provides a chief sustainability officer-as-a-service programme that aims to help SMBs (small and midsize businesses) build sustainable practices, carbon reporting, and green technologies into their operations.
Singapore needs to establish its footprint as a global AI leader and drive local adoption of AI, according to Singapore’s Economic Strategy Review, which last week released its recommendations on how the nation should secure economic growth and create jobs amidst global challenges.
The review was established last August to establish a "forward-looking economic blueprint" to boost Singapore’s global competitiveness and economic relevance. It comprises five committees, with members from the private sector, unions, and other relevant stakeholders.
The committees noted the need for Singapore to transform its advanced manufacturing industry to bolster global leadership in key sectors.
The nation should pursue emerging opportunities in quantum, decarbonisation, and space technology, the committees said, drawing from recommendations that were based on feedback from businesses and workers.
They called for Singapore to strive to be an AI leader “where companies and top talent can develop solutions”.
The country also needs to beef up its position in manufacturing sectors where it already has a foothold, such as semiconductors, healthcare, and specialty chemicals.
“To stay ahead, we need to transform our advanced manufacturing industry towards best-in-class and sustainable operations,” the review stated, adding that national research and development resources should be deployed to secure global leadership in high-value sectors, tapping Singapore's trusted reputation.
Playbook for cross-border manufacturers
To nudge market players forward, SMF announced the launch of the Johor-Singapore Special Economic Zone (JS-SEZ) Playbook for Manufacturers, to provide an operating guide on how to set up shop in the economic zone.
The JS-SEZ was formally unveiled in January 2025 to create an economic hub connecting Singapore and its northern neighbour and Malaysian city, Johor. The initiative aims to streamline border crossings and boost regional trade, amongst other goals.
“[The new playbook] outlines key benefits, incentives, sector opportunities, and digital enablers, supported by a framework to guide companies on setting up in the JS-SEZ,” Gan said. “Companies will have access to information on regulations, talent mobility, infrastructure developments, and support channels to plan and operate confidently across both markets.”
Apart from SMF’s expertise, the playbooks also features contributions from Enterprise Singapore, Malaysian Investment Development Authority, DXC Technology, EY, and UOB.
The playbook aims to support companies with faster decision cycles, clearer investment pathways, and increased confidence in executing cross-border setups in the JS-SEZ, Tan said.
