Singapore’s edge as a global trade hub hinges on a manufacturing industry that is both advanced and resilient. To stay ahead, factory floors must operate with zero downtime, friction-free workflows, and real-time data-driven adaptability.
The Singapore Budget 2026 tackles this head-on, placing advanced manufacturing at the heart of the National AI Missions. This renewed focus reflects the manufacturing sector’s strategic role in Singapore’s economy, given that it is a key driver of the city-state’s 5% GDP growth in 2025. Strengthening AI capabilities in manufacturing reinforces the twin engines of productivity and resilience — ensuring that growth remains competitive, shock-resistant and structurally sustainable.
This strategic bet is not theoretical. Agentic AI, in particular, is already gaining momentum in Singapore and the region as a force multiplier across industries, including manufacturing. According to a recent study by the International Data Corp (IDC), 44% of organisations in Southeast Asia (SEA), including Singapore, are already planning to implement agentic AI within the next 12 months. In manufacturing, AI-driven automation also offers a pragmatic way to sustain output without increasing wage pressure in a tightening labour market.
How agentic AI is reshaping manufacturing
AI-powered automation in manufacturing isn’t entirely new, but the conversation has shifted to how agentic AI can be applied across workflows and assembly lines. In the same IDC study, 58% of SEA organisations report that customer support automation is already driving greater efficiency, cost savings, and improved customer satisfaction in industries like manufacturing.
Take Sharp Electronics Indonesia as an example. The company handles around 1,000 customer enquiries daily, a workload that previously required up to 33 hours of manual information input. Through automation, customers who call for assistance can be identified even before the conversation begins, allowing helpline employees to gather the necessary information in advance. This has reduced average handling time by 63%, boosting productivity while elevating the customer experience.
See also: Singapore manufacturing to remain resilient despite US reshoring and tariffs, notes RHB
Agentic AI has the potential to transform manufacturing in areas such as predictive maintenance, quality control, and supply chain management. By using AI agents, manufacturers can also monitor machinery continuously to anticipate breakdowns and minimise downtime, and inspect products with increased accuracy, reducing errors and waste. Further, AI agents have real-time capabilities to optimise routes, predict potential bottlenecks, and even adjust inventory levels based on demand fluctuations.
Building a connected factory
Most manufacturing workflow inefficiencies arise between tasks—during transitions, handoffs, and the manual checkpoints connecting AI agents, robots, and humans. Without a central system to orchestrate robots and agents across departments, efficiency gains are limited. Done right, orchestration enhances resilience and productivity, distinguishing manufacturers that thrive from those that merely survive.
See also: AI to help APAC manufacturers navigate uncertainty: Rockwell Automation
At the heart of effective orchestration is the human-in-the-loop (HITL) design. HITL embeds escalation points and review protocols into workflows, giving manufacturers the essential oversight while allowing AI agents to operate autonomously where it matters most.
One area where this approach can be especially valuable in today’s business environment is the classification of harmonised tariff schedule (HTS) codes, which serve as global identifiers for traded goods. HTS codes, based on the international Harmonised System, establish US import tariff rates and statistical categories for all products. Frequent changes to these codes make timely reclassification crucial, a process that is growing ever more complex as global trade regulations evolve.
By applying HITL principles in HTS classification, intelligent agents can analyse product data and suggest accurate codes, while humans handle exceptions and strategic decisions. This ensures compliance, optimises tariff calculations, and reduces the risk of costly errors or shipment delays.
Across process, batch, and discrete manufacturing, operational efficiency behind the scenes is what keeps the factory floor running smoothly. Agentic orchestration brings much-needed agility in the manufacturing ecosystem, coordinating AI agents, robots, and humans to execute tasks efficiently and keep workflows responsive to change. By understanding the strengths of each component, agentic orchestration assigns work where it can have the greatest impact, especially for tasks that are traditionally hard to automate such as quality inspections and assembly line exception handling.
Imagine a workflow where AI agents can forecast demand, detect machine performance issues, and recommend supply chain adjustments. Robots update orders, track shipments, and schedule production activities, while supply chain managers interpret AI insights and steer key operational decisions. This framework amplifies the synergy between people, robots, and agents.
Turning orchestration into a competitive advantage
Embracing agentic orchestration empowers manufacturers to move fast, make smarter decisions, and adapt on the fly. They can rapidly assess tariff impacts, model alternative sourcing strategies, adjust production and inventory automatically, and shift operations across geographies.
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Yet, organisations must prioritise upskilling to bridge the gap between legacy technical skills and the AI fluency required to redesign complex factory workflows. Many AI initiatives fail to scale or deliver ROI because they focus on isolated use cases rather than broader business challenges. Overcoming this requires a mindset shift — redesigning entire workflows around measurable outcomes such as cost reduction, capacity growth, and operational efficiency.
When AI agents think, robots execute, and humans lead, organisations gain the resilience and agility needed to thrive amid supply chain pressures. Orchestration done right can transform work, and empower people to think strategically, act creatively, and innovate boldly. The synergy between intelligent systems and human ingenuity will allow manufacturers to transform uncertainty into opportunity and enable Singapore to maintain its competitive edge in today’s volatile global trade environment.
Amit Khandelwal is the regional VP and managing director for Southeast Asia at UiPath
