Singapore, Germany to expand industrial AI cooperation as part of updated 5-pillar work plan

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SINGAPORE: Singapore and Germany will make industrial artificial intelligence (AI) a bigger part of their economic partnership as part of an updated five-pillar work plan spanning security, trade and energy, the leaders of both nations said on Tuesday (Oct 27).

Speaking at a joint press conference at Parliament House with German Chancellor Friedrich Merz, Singapore Prime Minister Lawrence Wong said Singapore and Germany recognise the “enormous potential” of digital technologies and AI to transform economies.

AI can also create new opportunities for businesses and workers, he said, adding that the EU-Singapore Digital Trade Agreement that was signed in 2025 provides a foundation for cross-border digital transactions.

To this end, Mr Wong said both countries “now want to go further”.

“Particularly in the development and deployment of industrial AI, where the strengths of our two countries can complement each other,” he said.

Industrial AI is the application of machine learning, computer vision, and autonomous systems to physical operations, manufacturing plants, energy systems and supply chains.

Mr Merz, who is in Singapore for a two-day official visit, noted in German the high volume of international trade that passes through the region, describing it as an area where political, economic and technological forces are at play.

He said that he is visiting Singapore to deepen partnerships against this backdrop, noting that Germany also wants to have a say in major technological innovations.

The visit is his first since he was elected chancellor in 2025.

Both countries elevated relations to a strategic partnership in November 2024, share strong economic and defence ties, and are mutual partners in advancing multilateralism. Among European Union nations, Germany is Singapore’s largest trading partner in goods and the third largest in services.

“Chancellor Merz and I both agree that there is much more we can do together under our strategic partnership,” said Mr Wong, adding that both countries have also agreed to the updated joint work plan.

The plan includes initiatives across five pillars:

• Political, defence, security and intelligence
• Trade, investment, transport, and urban development
• Digitalisation and artificial intelligence
• Research, science, technology, and innovation
• Energy transition, green economy and climate

On trade, both countries will encourage economic collaboration through the Germany-Singapore Framework for Sustainability and Innovation (FSI), including exchanges on issues of mutual interest.

On the security front, for example, both countries will continue to deepen military-to-military cooperation and defence exchanges in digitalisation and cybersecurity, research and development and innovation, armament, and service and maintenance. The plan also includes ways to intensify collaboration opportunities between the Singapore Armed Forces and the Bundeswehr.

On energy, the plan aims to support the development of the ASEAN Power Grid through commercial participation in renewable energy and grid interconnection projects, including via existing bilateral trade promotion platforms and industry networks. 

In February, both countries announced an ongoing “year of innovation” initiative, which placed AI and future technologies such as quantum, microelectronics and biotechnology as key focus areas, among other things.

"Singapore intends to build momentum and pursue more joint research and innovation projects in areas such as AI, advanced manufacturing, green technologies, semiconductors, quantum and space technologies," said Mr Wong.

At the same time, Singapore and Germany both recognise that AI poses new risks and challenges, he added.

"So even as we both cooperate on AI deployment, we can ensure that this is done in a way that remains safe, trusted and human-centred," said Mr Wong.

COMMITTED TO COOPERATION

Mr Wong said both countries share many common interests and convictions that have underpinned their friendship over the past six decades despite Singapore and Germany being "geographically far apart".

These shared convictions will bring the two countries closer together in a world that is becoming more uncertain and fragmented, he added.

"Singapore and Germany are both deeply connected to the global economy. We depend on open markets and strong international partnerships," said Mr Wong. 

"The zeitgeist is turning against openness and trade. But our response cannot be to turn inwards. Instead, we want to work with like-minded partners to build new connections," said Mr Wong.

To this, Mr Wong said Singapore and Germany are "natural partners" in upholding the international rules-based order.

"We believe that countries, large and small, benefit from a world where rules are respected, commitments are honoured, and disputes are resolved peacefully.”

He then cited Germany’s endorsement of the Guiding Principles for Underwater Infrastructure Defence Exchanges (GUIDE), a voluntary framework by 17 nations including Singapore to safeguard critical underwater infrastructure, such as telecommunications, energy and pipeline systems. 

GUIDE is one practical example of how countries can work together to support multilateral frameworks and initiatives, said Mr Wong.

Germany became an ASEAN Sectoral Dialogue Partner in July. Mr Wong said this marked an important step towards strengthening ties between Germany and Southeast Asia.

"As ASEAN Chair next year, Singapore will work to deepen ASEAN’s partnerships with both Germany and the EU (European Union), including by making progress towards an ASEAN-EU Free Trade Agreement," said Mr Wong. 

ASEAN and the EU will also mark 50 years of Dialogue Relations during Singapore’s ASEAN Chairmanship next year.

Following the joint press conference, Mr Merz will be calling on President Tharman Shanmugaratnam and be hosted to lunch by Senior Minister Lee Hsien Loong.  

In the afternoon, Mr Merz will deliver the 49th Singapore Lecture, organised by the ISEAS-Yusof Ishak Institute.

Mr Wong will also host a dinner in the chancellor’s honour.