Singapore says AI must create “good jobs,” not mass layoffs

Singapore has moved to reassure workers anxious about the rise of artificial intelligence, with Manpower Minister Tan See Leng pledging that the country will not allow AI-driven growth to come at the expense of widespread job losses.

Speaking in Parliament during a debate on the motion “An Artificial Intelligence (AI) Transition with No Jobless Growth,” Tan acknowledged growing unease among workers amid global layoffs linked to AI adoption, trade tensions, supply chain fragility, and geopolitical instability.

“Uncertainties. Anxieties. A sense that the ground is shifting beneath their feet,” Tan said, describing the mood among many Singaporeans.

While recognising fears that AI could erode years of accumulated skills and even replace jobs, Tan argued that Singapore’s strategy would focus on helping workers adapt and remain economically valuable rather than relying on redistribution schemes alone.

“Singaporeans will never be helpless passengers to an AI-driven future,” he said. “Singaporeans will be our fellow co-pilots as our AI journey takes flight.”

Tan rejected proposals raised in Parliament for direct AI-related payouts or redundancy insurance models, arguing that such approaches assume workers are passive victims of technological change.

“The better use of any surplus generated by AI adoption is to fund accessible and effective upskilling that amplifies Singaporeans’ value,” he said, noting that the government has already spent more than S$10 billion on workforce initiatives over the past five years.

The minister outlined Singapore’s long-term AI strategy, tracing it back to the launch of the country’s first National AI Strategy in 2019, before generative AI tools such as ChatGPT emerged. Since then, the government has refreshed its plans through National AI Strategy 2.0, committed more than S$1 billion toward AI infrastructure and talent development, and recently established a National AI Council chaired by Prime Minister Lawrence Wong.

According to new Ministry of Manpower survey findings cited by Tan, AI adoption in Singapore remains relatively early-stage, with only about three in 10 firms currently using AI technologies. Among firms that have adopted AI, only around 6% reported reducing headcount due to AI.

Instead, Tan said most companies are redesigning roles and creating new AI-related positions, with seven in 10 AI-using firms already reporting productivity gains.

“AI is currently augmenting rather than replacing labour in Singapore,” he said, while cautioning that the government remains alert to the possibility of deeper disruption as adoption accelerates.

To support workers and businesses through the transition, the government announced a series of workforce and skills initiatives.

From the second half of 2026, Singaporeans enrolling in selected SkillsFuture AI courses will receive six months of free access to premium AI tools, allowing them to apply classroom learning to work and daily life. More than 1,600 AI-related courses are already available through the MySkillsFuture platform.

The government is also moving ahead with the formation of the Skills and Workforce Development Agency (SWDA), which will combine workforce and skills support functions under one system to streamline assistance for employers and jobseekers.

In parallel, authorities are strengthening support for displaced workers through the SkillsFuture Jobseeker Support scheme, which provides temporary financial relief and employment support for involuntarily unemployed individuals.

“The Government cannot protect every job, but will certainly do our best to support and protect every worker, because every worker matters,” Tan said.

The minister also highlighted concerns over younger workers and graduates worried about AI’s impact on entry-level jobs. Institutes of Higher Learning in Singapore will expand AI-related learning opportunities, while apprenticeship and work-study pathways in high-growth sectors will continue to be developed.

Singapore’s approach, Tan stressed, would remain rooted in tripartism, cooperation between government, employers, and unions, rather than conflict between workers and businesses.

“In many countries, AI becomes a tug of war, workers on one end, businesses on the other,” he said. “Singapore does not have to go down that road.”

Tan called on workers, businesses and unions to shape the AI transition together, framing the moment not as a threat to resist but as an opportunity to build a more inclusive future of work.

“We will not leave the future of work and the livelihoods of Singaporeans to chance,” he said. “We will shape a transformation that is inclusive, forward thinking, and anchored in real action.”