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SPACE is no longer the exclusive domain of superpowers; it is the world's newest piece of economic infrastructure. The final frontier, once dominated by multi-billion-dollar government programmes, has been flung open by commercial innovation.

We are witnessing the birth of a true space economy, projected to surge from US$630 billion in 2023 to as much as US$1.8 trillion by 2035. This is a seismic economic shift where satellites enable our daily commutes, monitor our changing climate, and connect remote villages to the global Internet.

For national leaders, the question is how to strategically participate before the rules are written and the prime orbital real estate is taken.

The economic case for space is compelling. It extends far beyond launch pads and astronauts, deeply embedding itself in our terrestrial lives. This became clear at a recent Cyberjaya Conversations programme hosted by MIGHT on Dec 3, 2025.

The space sector is a high-growth industry. In the United States alone, it contributed US$142.5 billion to GDP and supported 373,000 jobs in 2023. The growth is driven by plummeting launch costs — thanks to reusable rockets — and the proliferation of services from thousands of satellites in low-Earth orbit.

The greatest value lies in how space data supercharges other sectors. Earth observation satellites guide precision agriculture, monitor deforestation, and assess disaster damage.

Satellite-based communications and navigation underpin global finance, logistics and transportation. Every dollar invested in space infrastructure can generate up to eight times its value in spillover benefits across the wider economy.

Nearly 40 per cent of the UN's SDG targets are directly supported by space-based services. From mapping flood-prone regions in Senegal to delivering Internet to remote Philippine islands, space technology offers unparalleled tools for sustainable development, climate resilience and bridging the digital divide.

This explosive growth is not without peril. The strategic landscape is fraught with challenges that demand urgent international cooperation. With over 12,000 active satellites and tens of thousands of pieces of debris, Earth's orbits are increasingly congested.

Reported close approaches between objects jumped 58 per cent from 2021 to 2022. A single major collision could create a debris field that renders vital orbits unusable, threatening the trillion-dollar economy we are building.

The democratisation of space has created a "double dual-use dilemma". The same companies building Internet satellites can support military communications; the same rocket technology that supplies a space station can inform ballistic missile programmes.

As seen in the strategies of countries, national security is now inextricably linked to space security, necessitating new defence architectures and clear regulatory frameworks to prevent escalation.

The 1967 Outer Space Treaty is straining under modern realities. There are no agreed international rules for managing space traffic or preventing conflict. Nations are rightfully acting in their own interests, but without robust diplomatic forums and new treaties, we risk a chaotic and conflict-prone environment.

For nations formulating their strategy, the World Economic Forum's National Space Strategy Toolkit provides a practical starting point, emphasising alignment with core national development goals. Pathways for participation vary. For nations new to space, they don't build rockets but buy data and connectivity.

They can partner with commercial providers to deploy satellite Internet for rural schools, use Earth observation for urban planning and farm management, and build a local industry of app developers and data scientists who turn space data into solutions. Such actions drive sustainable development and grow tech sectors using space-as-a-service.

For nations with strong legal institutions and a desire to shape the ecosystem, they can develop clear, innovation-friendly regulations for launch, spectrum and space operations. They may also invest in space situational awareness (SSA) to track debris and promote sustainability. And become a hub for space law, finance, and insurance, facilitating global commerce.

But for nations with existing aerospace capacity, they can build sovereign capability through partnership. Foster public-private partnerships to develop national launch capacity or satellite constellations. Also invest in next-generation technologies like in-orbit servicing and space manufacturing.

The time for passive observation is over. The space economy is being built today, and its foundational rules are being drafted in forums where absence guarantees irrelevance. It is a national imperative touching economic competitiveness, environmental security and global standing.

The choice is clear. Nations can be passive consumers, or they can be active architects of their own destiny. By crafting a space strategy, countries can secure their place in the next chapter of human progress.