Government should consider more structural reforms if AI leads to 'severe' disruption among workers: Jeffrey Siow

The Government should keep a close watch on the impact artificial intelligence (AI) has on the workforce and consider policy adjustments if there is "more severe or broad-based disruption than expected", said Senior Minister of State for Finance Jeffrey Siow.

This is to ensure that the "gains from AI are shared fairly across society", he said at the Future Economy Conference held at the Marina Bay Sands' Expo & Convention Centre on Wednesday (May 13).

The Economic Strategy Review (ESR) put forth its final 32 recommendations for a strategic map which it said aims to secure economic growth and create good jobs for Singaporeans in a more contested and volatile world.

Siow — who is co-chair of an ESR committee that evaluated Singapore's global competitiveness — set out the report's eight key points of focus, which touched on the AI era and supporting workers in the transition.

They are:

1. Build global leadership in areas of strength, and take bold bets for future
   growth
2. Make Singapore a global leader in AI solutions, and an AI-empowered
   economy
3. Strengthen Singapore’s role as a connected and trusted hub
4. Foster a more dynamic enterprise ecosystem so that more Singapore-based companies can start, scale, and succeed globally
5. Create more and a broader range of good jobs
6. Establish a stronger system for career transitions and worker support
7. Empower workers to learn for life and take charge of their careers
8. Build economic resilience as a core capability

In the push for Singapore to be positioned as a trusted AI hub, the Government should attract leading AI companies and talent, help leading firms undertake full-scale AI transformation and create sector-level solutions for smaller companies.

"Other countries will have bigger labs and more chips," Siow, who is also Acting Transport Minister, told the crowd of about 1,000 people.

"But our edge in Singapore is different. It is our ability to organise ourselves, for example, to get a bank, a hospital, a regulator and a researcher all in the same room, agree on what is worth solving, and then work together to do so.

"Our advantage in AI is not the biggest model. Our advantage is to find the best problems in the world to solve."

AI-enabled systems will also be key as the nation builds its next-generation sea and air hubs that look to strengthen Singapore's connectivity by offering the fastest, most reliable and best-coordinated supply flows.

@asiaone Two of the recurring mentions in the Economic Strategy Review's recommendations are workers and jobs. Both Deputy Prime Minister Gan Kim Yong and Acting Minister for Transport Jeffrey Siow set out in their speeches how more good jobs can be created, and the support needed to enable workers as career transitions take place. #sgnews #Singapore #Economy #jobs #workers #learning ♬ original sound - AsiaOne

Protecting workers in AI transition

A parliamentary motion on no "jobless growth" in the Republic's AI transition was unanimously passed in Parliament earlier this month.

Siow said on Wednesday that the Government can invest in areas where AI can create jobs and career opportunities.

The ESR called on the Government to "set clear expectations" on worker outcomes when it supports companies in adopting AI, which includes redesigning jobs, investing in training, and improving prospects for workers, and to review the support given if outcomes are not delivered.

It recommended as well to raise the quality, attractiveness and wages of jobs in sectors more resilient to AI disruption like health, social services, and early childhood education.

The AI transition will likely lead to workers experiencing more frequent career transitions, be it voluntary or involuntary, he added.

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For workers in at-risk roles, the ESR suggested "career bridges" that would support workers through targeted training, career guidance and job matching to connect them to more resilient occupations.

When retrenchment occurs, earlier intervention should take place, and the Government should also consider more support schemes for professionals, managers and executives (PMEs) to smooth income loss during career transitions.

The ESR also outlined that workers should reskill and take charge of their careers, and SkillsFuture support should be strengthened to enable lifelong learning.

Siow said Singapore has successfully restructured its economy repeatedly through events such as recession, financial crises, Sars, and the global financial crisis.

The Government, businesses, unions, and workers will need to come together to overcome global economic changes, he added.

"If we work together, Singapore can continue to grow, create good jobs, and remain competitive in the changing world. We will be ready for what is next."

'AI adoption should not be pursued in isolation': SBF

In a statement on Wednesday, the Singapore Business Federation (SBF) said firms often face "a fragmented landscape of schemes, agencies and processes".

"If Singapore wants faster transformation, support must be simpler, more joined-up and easier to access," it added.

SBF also said AI adoption should not be pursued in isolation. 

"It must go hand in hand with job redesign and skills upgrading so productivity gains translate into stronger business and workforce outcomes."

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lim.kewei@asiaone.com