'Ensure benefits, opportunities are shared; otherwise, economic progress may become divisive': Gan Kim Yong

Singapore must pay attention to those segments of the population who are at a greater risk of being left behind, Deputy Prime Minister Gan Kim Yong said on Monday (Aug 25).

These include professionals, managers and executives roles that may be displaced by artificial intelligence (AI), and rank-and-file workers in sectors that are undergoing restructuring in response to heightened uncertainties in the global economy, he told participants at the Ministry of Trade and Industry's (MTI) Economic Dialogue 2025.

The dialogue, which started in 2008, is a platform for students to gain insights into pertinent economic issues and challenges facing Singapore, and the role of economics in policymaking. 

Speaking on "navigating economic uncertainty in a polarised world", DPM Gan cautioned that "significant uncertainties" remain despite the US making deals with its key trading partners such as the European Union, Japan and South Korea.

He explained that this is because effects from tariffs will take time to flow through the supply chain — affecting both consumer and corporate spending —  slowing down the global economy. 

He added that there would also be next-order effects of the tariffs by both countries and companies, which can affect Singapore. 

"This is why we recently convened an Economic Strategy Review under SERT [Singapore Economic Resilience Taskforce] to develop a forward-looking economic blueprint for Singapore," DPM Gan reiterated.

On Aug 4, Singapore announced the formation of five new committees to strengthen its economic relevance amid geopolitical uncertainties and technological disruptions. 

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The committees will develop long-term strategies in global competitiveness, technology and innovation, entrepreneurship, human capital, and managing impact of restructuring. 

Measures to help businesses and workers manage the near-term uncertainties arising from the US' tariffs, such as the new Business Adaptation Grant and Graduate Industry Traineeship (GRIT) have been launched over the past two months. 

Ensuring that economic progress does not become divisive

DPM Gan also spoke about navigating structural shifts so that Singapore can continue to thrive and stay relevant.

Citing AI as an example of such a shift, he said that it is important for both enterprises and the workforce to transform "in a complementary way", so that AI  "becomes a tool for enhancement, and not displacement, of labour". 

"As we grow our economy, we must ensure that the benefits and opportunities are shared; otherwise, economic progress may become divisive.

"This is especially if our society becomes more stratified and less mobile, which may not only entrench the disadvantages faced by the less well-off but also the advantages faced by the more well-to-do," said DPM Gan.

He used the examples of the SkillsFuture Jobseeker Support scheme and the level-up programme to illustrate how the Government helps Singaporeans to bounce back if they are retrenched, and to get a significant skills reboot even in mid-career.

At the dialogue, DPM Gan also presented scholarships, and academic awards to economic undergraduates. 

He encouraged them to play a vital role in Singapore's continued economic transformation by providing policymakers with rigorous, evidence-based analysis and policy insights, so that Singapore can stay ahead of structural shifts, and position itself "early and move fast when the time comes". 

"The work of economists also helps policymakers to identify areas of opportunity, and guide the design of our policies and programmes to allows us to seize these opportunities.

"These in turn can help us design more targeted interventions in our industry development, enterprise transformation and workforce reskilling."

A total of three recipients were awarded the Economist Service scholarship, while another six received academic awards.

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