'But neither should we be complacent,' DPM says
Singapore Deputy Prime Minister Gan Kim Yong has called for calm as he stressed that artificial intelligence adoption will not lead to widespread job losses amid persisting fears in the workforce.
The DPM, however, also warned against complacency in the AI transition.
"There is no need to be alarmist. This is not likely to lead to immediate, economy-wide job losses," Gan said.
"But neither should we be complacent. We need to manage this transition well."
Gan, who is also the country's minister for trade and industry, made the remarks during the 70th anniversary dinner of the Economic Society of Singapore.
His words followed the acknowledgement that some jobs will "shrink or disappear" because of AI adoption, which may also not enable the generation of additional employment opportunities.
"We cannot assume that the same rate of growth will generate the same number of jobs as before," Gan said.
"AI and automation will allow firms to produce more with the same or fewer workers. For sure, new tasks and roles will emerge, but some existing ones will change, shrink, or disappear."
The remarks come in the wake of persisting fears in the workforce that AI adoption will eventually lead to job displacement, a concern shared by 48% of employees in Singapore in a recent Robert Walters report.
There are also conflicting findings on the impact of AI in the country, with the National Trades Union Congress citing it as one of the key factors that is driving restructuring and retrenchments, while government data showed first-time AI use is associated with increasing total employment and revenue.
Call for coordinated action
Gan told an audience of business leaders and policymakers that organisations should not only pay attention to cost savings when adopting AI, but also to job redesign, training, and worker outcomes.
"We need to identify early roles that are potentially exposed to AI, and create effective career bridges into work that builds on existing skills, combining targeted training, guidance, job matching, and actual placement," he said.
He added that the system around workers must also respond faster by using better labour-market information, linking training more closely to real jobs, and helping people adapt before disruption becomes prolonged unemployment.
"This requires employers, training institutions, unions, and the government to act together," the DPM said. "Learning must remain closely connected to work, and support must begin before workers are affected. This is the task of our tripartite partners."
He further pointed out the country's economic strategy should go beyond supporting AI-related jobs, underscoring that not everyone will or should become an AI engineer.
"Care, allied health, early childhood education, skilled trades, and essential services will continue to provide good job opportunities," he said, noting that these jobs depend on human qualities that technology cannot easily replace.
"The task is not merely to preserve these jobs as they are. It is to raise their productivity, improve their design, strengthen progression, and support better wages," Gan added.
"Productive work provides more than income. It gives people agency, dignity, social recognition and confidence that their effort will lead to progress and success.
"This is why good jobs are not simply a social outcome to be addressed after economic strategy is decided. They are part of economic strategy itself."
Singapore Prime Minister Lawrence Wong previously indicated in his National Day Rally speech that the country will continue embracing AI, but will ensure support for workers whose jobs will be disrupted.
