The Singapore National Employers Federation (SNEF) has cautioned against introducing “overly prescriptive regulations” in response to workforce disruptions caused by artificial intelligence, warning that such measures could slow innovation and enterprise transformation.
In a statement backing the recently passed parliamentary motion on “no jobless growth,” SNEF said Singapore must maintain an environment that supports business experimentation, investment, and productivity gains as companies adopt AI technologies.
“Overly prescriptive regulations in response to AI could unintentionally reduce the potential for AI to improve productivity and ultimately wages,” the federation said.
SNEF added that policymakers should avoid measures that could increase operational costs or limit the flexibility organisations need to adapt and restructure responsibly during AI-driven transformation.
The employers’ federation also stressed the importance of allowing room for experimentation and setbacks as businesses integrate AI into operations.
“As AI adoption involves experimentation, there could also be reasonable allowance for failure to help companies move decisively forward with AI adoption,” it said.
The remarks came as SNEF endorsed a parliamentary motion introduced by labour chief Ng Chee Meng calling for “no jobless growth” amid rapid AI adoption. The motion, debated for seven hours in Parliament, was unanimously passed on Wednesday.
The motion urged Parliament to recognise both the transformative potential of AI and the shared responsibility to manage its impact on workers, enterprises, and the broader economy.
“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.
He added that the unanimous support sends a “clear signal” to workers that Parliament is committed to supporting employees through AI-led workplace 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.
According to an inaugural report from Singapore’s Ministry of Manpower, AI adoption in the country remains at an early stage. The report found that 71.5% of firms have yet to adopt AI, while meaningful integration remains limited even among companies already using the technology.
The findings also showed that only 6.2% of firms reported reducing headcount following AI adoption. Meanwhile, 18.9% of employers said they were redesigning roles, while 13.9% reported creating new AI-related jobs.