Singapore pledges support to workers hit by AI disruption

Prime minister says government will not leave affected workers to fend for themselves

Singapore pledges support to workers hit by AI disruption

Singapore Prime Minister Lawrence Wong pledged to offer support to workers whose jobs will be disrupted by artificial intelligence as he stressed the need to embrace technological shifts.

"We do not hold back new technologies simply because they are disruptive, but neither do we leave affected workers to fend for themselves," Wong said in his National Day Rally speech on Sunday.

"We support our workers through the transition. We will ensure that every worker shares in the fruits of Singapore's progress," Wong said.

The prime minister made the remarks amid persisting fears that AI adoption will lead to widespread job losses, with recent research both rejecting and validating these concerns.

In Singapore, data from the Ministry of Trade and Industry showed that first-time AI use by firms is associated with firm-level increases in total employment and revenue, with the gains rising as AI capabilities deepen.

However, the National Trades Union Congress cited AI as one of the key factors that is driving restructuring and retrenchments of white-collar workers in 2025.

While the impact of AI on jobs remains unclear, Singapore's Ministry of Manpower said it is looking at how to better capture the role of AI and automation in retrenchment statistics.

"It is currently difficult to isolate the impact of AI or automation as a primary driver of retrenchments as automation is typically implemented as part of broader business transformation or restructuring exercises," MOM previously said.

Embracing AI to provide work

Wong's recent remarks indicate that Singapore will not shy away from the technology despite workforce disruptions, but will instead adapt to the changes to create more employment opportunities. 

"Singapore has done this through every major technological shift. We did so during industrialisation. Then came computers and the internet," the prime minister said.

"Each time, we mastered new technologies, attracted leading companies here, built up our own capabilities, and equipped Singaporeans with new skills. And that is how we created better jobs and new opportunities for our people."

The approach was unveiled as Wong highlighted in his speech the gains from AI adoption, especially for small businesses.

"The technology can make a big difference, especially for small businesses. AI can give them capabilities that were once available only to much larger firms," he said.

In one example, he noted that an entrepreneur there was able to use AI agents to take care of routine work such as marketing and operations to give them more time to focus on growing the business and taking care of their family.

"That is the power of AI – it can enable SMEs to think bigger, move faster, and achieve much more with fewer resources," he said.

'Unsettling' rogue AI agents

Meanwhile, Wong also raised the alarm on the growing risks surrounding AI, particularly after recent reports of some AI agents going rogue.

"Developments like this are unsettling," he said. "AI agents are becoming more capable very quickly. They will be able to do more on our behalf, with less human supervision. That brings enormous possibilities. But when things go wrong, the consequences can be very serious."

The prime minister urged other nations to "find common ground" amid the AI race to set common rules and safeguards surrounding the technology.

"And Singapore will do our part. We will bring countries and companies together. And build coalitions around practical safeguards," he added.

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