'Answer cannot be to hold back change': DPM Gan says AI key to Singapore's edge

For Singapore to stay competitive amid the changing times, we cannot avoid the use of artificial intelligence (AI), Deputy Prime Minister Gan Kim Yong said on Wednesday (May 20).

He was speaking at DBS' unveiling of its Global AI Financial Hub Index at the Shangri-La Hotel. The index is a benchmark for assessing the AI readiness of global financial hubs and how institutional trust shapes AI deployment and drives financial outcomes.

DPM Gan explained that for a small, open and globally connected economy like Singapore, this AI shift "matters deeply".

"Our relevance has never rested on size. It rests on whether we are trusted, whether we are useful, and how connected we are to the rest of the world.

"When the competitive balance shifts, Singapore must move swiftly." 

Citing DBS' findings that Singapore is ranked third among major financial hubs across the world, he further explained that this is "a strong vote of confidence".

Increasingly, financial hubs will also be judged by how well they can adopt and utilise AI while preserving trust and ensuring security, as well as nurturing their people with skills to work with AI, he stated.

In order for Singapore to compete, we must become a trusted base for high-impact AI adoption in finance.

AI must also translate to new jobs and opportunities for its workers, DPM Gan said.

"But in the age of AI and automation, growth may no longer generate jobs in the same way before.

"More can be done with fewer workers. Some tasks will be automated, some jobs redesigned, and some workers will face difficult transitions."

However, Singapore cannot afford to slow down AI adoption, as this will weaken competitiveness and ultimately impact workers more, rather than less.

"For Singapore, the answer cannot be to hold back change," he said. Instead, it should be to shape AI adoption to complement workers where possible.

AI implementation should come with the question of what new roles can be created and how existing workers can be trained, instead of simply how much cost can be saved, DPM Gan stressed.

The winners will not be those who can compete against AI, but rather those who learn how to make AI work for them.

Staying open to the rest of the world

DPM Gan also highlighted Singapore's need to attract global talent in AI to develop capabilities here.

"We must remain open to the best teams and ideas from around the world, but this makes it even more important that AI translates into better jobs and opportunities for Singaporeans."

The global talents should help deepen Singapore's capabilities by developing local teams, transferring expertise, building leadership pathways and creating roles for Singaporeans to work alongside them, he said.

"This is why workforce transformation is not separate from the AI agenda. It is central to it," he explained. "The Government will do our part."

Referring to DBS' Global AI Financial Hub Index again, DPM Gan said that Singapore cannot be complacent despite it being among the leading financial hubs in AI ratings.

Singapore must go beyond the ranking level and become a trusted AI-empowered financial hub that can help clients through uncertainty to seize opportunities, all while creating opportunities for the country.

He concluded: "The road ahead will not be easy, but for Singapore, complexity has never been reason to stand still.

"It is a catalyst to adapt early, partner more deeply, and move more decisively."

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khooyihang@asiaone.com