'We should avoid measures that may inadvertently increase operational costs or reduce the flexibility organisations require to adapt and restructure responsibly'
The Singapore National Employers Federation (SNEF) has cautioned authorities against the introduction of "overly prescriptive regulations" aimed at addressing workforce disruptions from artificial intelligence adoption.
In a statement, the SNEF stressed that Singapore needs an environment that encourages enterprise transformation, innovation, and investment.
"Overly prescriptive regulations in response to AI could unintentionally reduce the potential for AI to improve productivity and ultimately wages," the federation said.
"In particular, we should avoid measures that may inadvertently increase operational costs or reduce the flexibility organisations require to adapt and restructure responsibly."
"As AI adoption involves experimentation, there could also be reasonable allowance for failure to help companies move decisively forward with AI adoption," it added.
'No jobless growth' motion
The SNEF made the remarks as it expressed support for the parliamentary motion of labour chief Ng Chee Meng that called for "no jobless growth" amid AI-driven disruption.
According to the SNEF, the motion is a "timely and important" move that will strengthen Singapore's workforce and enterprise resilience amid the far-reaching impact of AI on jobs, businesses, and the economy.
The motion, which was debated for seven hours in Parliament, was unanimously passed on Wednesday. It called on the House to recognise the transformative potential of AI, and its collective responsibility to manage the impact on enterprises and workers.
"I am therefore glad that through this Motion, the Government has affirmed that it will not leave outcomes to chance, but will shape the direction of AI growth deliberately," Ng said in his closing speech as the motion was approved.
The labour chief added that the unanimous approval is a "clear signal" to every employee that the House supports them amid the ongoing AI transformation.
"We may not agree with every 'how,' but we must set the right direction, and at the same time, know with humility that we are innovating and experimenting with pathways forward in this era," Ng said.
"With this House standing united, I am fully confident that we can strengthen our plans and responses at this stage of the AI-enabled growth."
AI adoption in Singapore is still at the early stages, according to an inaugural report from the Ministry of Manpower.
The report found that 71.5% of firms in Singapore have yet to adopt AI, with meaningful integration of AI still limited among the 28.5% of firms that have adopted the technology.
The findings also show that only 6.2% of firms reported reduced headcount after adopting AI, while other employers are redesigning roles (18.9%) and creating new AI-related jobs (13.9%).
