Singapore urges proactive worker support ahead of AI job disruption

Singapore Deputy Prime Minister Gan Kim Yong has advised that the government and workforce must prepare for potential job disruptions caused by artificial intelligence and automation. While noting that AI is unlikely to cause immediate, economy-wide job losses, Gan emphasized the need to support workers in transitioning to new roles before unemployment becomes a prolonged issue.

Recent data from Singapore’s Ministry of Manpower indicates a resilient labor market, with employment growing by 10,700 in the second quarter. Although retrenchments rose to 4,500 in the most recent quarter due to business restructuring, the level remains below typical downturn figures.

AI adoption is increasing across the country. A government survey found that approximately 30% of firms have adopted AI, with only 6% of those adopters reporting headcount reductions. Adoption among small and medium-sized enterprises has more than tripled over the past year, reaching 14.5%, while adoption among larger firms has risen to 62.5%.