A bitter medicine that’s good for Singapore, but AI won’t fuel job growth as before: Tan See Leng
Tan said the Government recognises that the technology may allow firms to produce more with fewer workers.
Singapore's Minister for Trade and Industry (Energy and Industry) Tan See Leng emphasized the importance of harnessing artificial intelligence (AI) for the country's economic growth, but cautioned that AI will not continue to fuel job creation as it has in the past. During the MTI Economic Dialogue on August 26, Tan noted that AI and automation may enable firms to produce more with fewer workers, which means that growth will no longer automatically result in the same number, type, or range of jobs as before.
He stressed that AI adoption should always be human-centric, focusing on building pathways into growth sectors, raising the quality of jobs in essential and resilient occupations, such as skilled trades, and encouraging entrepreneurship.
Tan also announced plans to provide "career bridges" for workers more exposed to disruption from AI, automation, and changing cost structures, enabling them to transition into new opportunities. He stressed the need for small and medium-sized enterprises (SMEs) to adopt useful AI solutions, ensuring workers are equipped to use AI alongside their current expertise.
In this regard, Tan highlighted the significance of AI agents – programs that aid people in carrying out tasks without human guidance – in providing small businesses with capabilities once available only to larger firms. However, he cautioned that risks become harder to predict as technology becomes more powerful, necessitating safeguards. He also mentioned recent revelations of AI models or agents going rogue and hacking organizations during testing, describing these developments as unsettling.
As part of its commitment to AI development, Tan highlighted that Singapore will work with other countries and companies to build coalitions around practical safeguards. He also presented the Ministry of Trade and Industry's economist service undergraduate scholarships to six recipients, underscoring the government's ongoing support for fostering AI expertise in the country.
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