Transactions on Data Analysis in Social Science

Transactions on Data Analysis in Social Science

Integrating Artificial Intelligence and Strategic Policy in Maritime Logistics: The Singapore Model and Lessons for Developing Economies

Document Type : Original Article

Authors
1 Department of Environmental Engineering،University of Tehran,Tehran, Iran
2 Department of Biomedical Engineering, Amirkabir University of Technology, Tehran, Iran
Abstract
Since its independence in 1965, Singapore has turned its logistics industry into a global hub despite its small territory and lack of natural resources, by combining state-led planning, foreign direct investment, investment in infrastructure and the early adoption of digital technologies. This paper is a qualitative policy case study based on official statistics and reports of Singapore agencies and international organisations for 1961–2025. It examines the historical evolution, governance frameworks, key indicators and role of artificial intelligence (AI) in Singapore’s logistics sector. In 2024 transportation and storage accounted for 9.1% of Singapore’s nominal value added, the ports handled a record 41.12 million TEU, and Singapore ranked first in the World Bank Logistics Performance Index 2023. Since the National AI Strategy (2019) and its update NAIS 2.0 (2023), AI has been applied to predictive maintenance, automated terminal operations at Tuas Port and the optimisation of truck and vessel movements; operator-reported effects include more than 50% fewer empty truck trips, although system-wide effects have not been measured independently. The paper identifies the main challenges — land scarcity, shortages of skilled workers, global disruptions, climate risks and regulatory barriers — and derives lessons for developing economies, particularly ASEAN member states: long-term planning, public–private partnerships, investment in skills and the separation of regulation from operation. Policy recommendations cover investment in digital infrastructure and AI, regional cooperation, support for small and medium-sized enterprises, environmental sustainability and workforce development, each with indicators for monitoring.
Keywords

[1]      World Bank. (2025). World Development Indicators: GDP (current US$) – Singapore. https://data.worldbank.org/indicator/NY.GDP.MKTP.CD?locations=SG
[2]      Department of Statistics Singapore. (2025). Singapore economy 2024 [Infographic]. https://www.singstat.gov.sg/modules/infographics/-/media/Files/visualising_data/infographics/Economy/singapore-economy04042025.pdf
[3]      Maritime and Port Authority of Singapore. (2025, January 22). Strong growth momentum for Maritime Singapore [Media release]. https://www.mpa.gov.sg/media-centre/details/strong-growth-momentum-for-maritime-singapore
[4]      Arvis, J.-F., Ojala, L., Shepherd, B., Ulybina, D., & Wiederer, C. (2023). Connecting to compete 2023: Trade logistics in an uncertain global economy – The Logistics Performance Index and its indicators. World Bank. https://lpi.worldbank.org/sites/default/files/2023-04/LPI_2023_report_with_layout.pdf
[5]      Ministry of Digital Development and Information. (2024, October 1). Launch of Smart Nation 2.0 [Press release]. https://www.mddi.gov.sg/newsroom/smart-nation-2-press-release/
[6]      Smart Nation Singapore. (n.d.). The Smart Nation vision. Retrieved October 28, 2026, from https://www.smartnation.gov.sg/about/our-vision/smart-nation-vision/
[7]      Smart Nation Singapore. (2023). National AI Strategy 2.0: AI for the public good, for Singapore and the world. Smart Nation and Digital Government Office.
[8]      Labrunie, M., Fan, Z., & Leal-Ayala, D. (2026). AI and the future of industry: Challenges and opportunities for developing countries (IID Policy Brief No. 30). United Nations Industrial Development Organization.
[9]      Romer, P. M. (1990). Endogenous technological change. Journal of Political Economy, 98(5, Part 2), S71–S102. https://doi.org/10.1086/261725
[10]   Krugman, P. (1991). Increasing returns and economic geography. Journal of Political Economy, 99(3), 483–499. https://doi.org/10.1086/261763
[11]   Sun, X., Yu, H., Solvang, W. D., Wang, Y., & Wang, K. (2022). The application of Industry 4.0 technologies in sustainable logistics: A systematic literature review (2012–2020) to explore future research opportunities. Environmental Science and Pollution Research, 29(7), 9560–9591. https://doi.org/10.1007/s11356-021-17693-y
[12]   Kergroach, S., & Héritier, J. (2025). Emerging divides in the transition to artificial intelligence (OECD Regional Development Papers). OECD Publishing. https://doi.org/10.1787/7376c776-en
[13]   U.S. Energy Information Administration. (2017, August 1). The Strait of Malacca, a key oil trade chokepoint, links the Indian and Pacific Oceans. Today in Energy. https://www.eia.gov/todayinenergy/detail.php?id=32452
[14]   Goode, K., Kim, H. M., & Deng, M. (2023). Examining Singapore’s AI progress. Center for Security and Emerging Technology. https://doi.org/10.51593/2021CA014
[15]   OECD. (2021). OECD competition assessment reviews: Logistics sector in Singapore. OECD Publishing. https://doi.org/10.1787/c16681c0-en
[16]   Vu, K. (2011). Sources of Singapore’s economic growth, 1965–2008: Trends, patterns and policy implications. ASEAN Economic Bulletin, 28(3), 315–336. https://doi.org/10.1355/ae28-3c
[17]   Singapore Economic Development Board. (2024). EDB annual report 2023/24. EDB.
[18]   National Library Board Singapore. (2002). Port of Singapore Authority (PSA). Singapore Infopedia. https://eresources.nlb.gov.sg/infopedia/articles/SIP_577_2005-01-27.html
[19]   Maritime and Port Authority of Singapore. (n.d.). The development of maritime Singapore (Maritime Singapore Education Series, Theme 1, Issue 2). https://www.mpa.gov.sg/docs/mpalibraries/mpa-documents-files/comms-and-community/education-series/mpa-mses_theme-1-issue-2_the-development-of-maritime-singapore.pdf
[20]   Lee-Partridge, J. E., Teo, T. S. H., & Lim, V. K. G. (2000). Information technology management: The case of the Port of Singapore Authority. Journal of Strategic Information Systems, 9(1), 85–99. https://doi.org/10.1016/S0963-8687(00)00035-4
[21]   United Nations Economic and Social Commission for Asia and the Pacific. (2010). Single window implementation case of Singapore TradeNet (UNNExT Brief No. 2). UNESCAP. https://repository.unescap.org/handle/20.500.12870/513
[22]   National Research Foundation Singapore. (2020). Goals and priorities set under Research, Innovation and Enterprise 2025 Plan. https://www.nrf.gov.sg/resources/goals-and-priorities-set-under-research-innovation-and-enterprise-2025-plan/
[23]   Enterprise Singapore. (n.d.). Logistics Industry Transformation Map (ITM) 2025 and logistics industry support programmes. Retrieved October 28, 2026, from https://www.enterprisesg.gov.sg/industries/logistics
[24]   Khanal, S., Zhang, H., & Taeihagh, A. (2024). Building an AI ecosystem in a small nation: Lessons from Singapore’s journey to the forefront of AI. Humanities and Social Sciences Communications, 11, Article 866. https://doi.org/10.1057/s41599-024-03289-7
[25]   Maritime and Port Authority of Singapore. (n.d.). Port of the future – Tuas Port. Retrieved October 28, 2026, from https://www.mpa.gov.sg/maritime-singapore/port-of-the-future
[26]   PSA International. (2024). Sustainability 2023 at PSA Singapore. PSA International.
[27]   PSA International. (2024). Annual report 2023. PSA International.
[28]   PSA Singapore & Cargo Community Network. (2025). PSA Singapore and Cargo Community Network launch OptEModal to boost sea–air connectivity through a one-stop digital platform [Press release]. PSA International.
[29]   World Bank. (2024). Global trends in AI governance: Evolving country approaches. World Bank.
[30]   OECD & Economic Research Institute for ASEAN and East Asia. (2024). SME policy index: ASEAN 2024 – Enabling sustainable growth and digitalisation. ERIA.
[31]   ASEAN Secretariat. (2025). ASEAN Connectivity Strategic Plan (2026–2035). ASEAN Secretariat.
[32]   Ministry of Digital Development and Information. (2026). Singapore National AI Research and Development Plan (2025–2030). Government of Singapore.
Volume 8, Issue 1
Winter 2026
Pages 49-58

  • Receive Date 05 December 2025
  • Revise Date 26 January 2026
  • Accept Date 09 February 2026