SINGAPORE: During a recent parliamentary session on 26 February 2024, Prime Minister Lawrence Wong outlined the government’s strategic approach to harnessing artificial intelligence (AI) while ensuring fiscal responsibility. His speech addressed concerns regarding job displacement due to AI, alongside calls for greater transparency on public spending.
AI in the Workforce
Mr Wong emphasised that Singapore will not face “jobless growth” in the wake of AI advances. He noted, “Every sector is different and how they use AI and the impact on workers in each sector will vary.” The creation of the National AI Council aims to oversee missions across advanced manufacturing, connectivity, finance, and healthcare sectors, ensuring the workforce is supported through this transition.
- 91% of jobs in Singapore are permanent, a new record.
- Entry-level roles account for over 40% of job openings.
- Historical trends suggest that generally more jobs are created than lost due to technological advancements.
Concerns About Job Displacement
Despite the optimistic outlook, concerns exist regarding the rapid pace of AI development. Mr Wong acknowledged the fears of workers and fresh graduates, promising that the government is committed to preparing the job market. He stated, “We cannot rely only on today’s data; we must prepare for tomorrow.”
Call for Fiscal Transparency
In the same parliamentary session, Mr Wong responded to calls for enhanced public disclosure surrounding government spending, especially following Singapore’s record surplus of S$15 billion (US$11.8 billion) for the 2025 financial year. He agreed that clearer communication from ministries on major initiatives will aid in public understanding.
- Existing frameworks, like the Singapore Public Sector Outcomes Review, will be used to track public spending outcomes.
- Ministries will be encouraged to share how public resources are deployed and the results achieved.
Future Strategies
Mr Wong affirmed the importance of supporting small- and medium-sized enterprises (SMEs) as crucial in job creation and economic stability. While immediate support measures are in place, long-term strategies will ensure sustainability without distorting market incentives.
He reassured Singaporeans that healthcare and cost-of-living concerns are on the government’s radar, stating, “No Singaporean will be denied the healthcare they need because of an inability to pay.”
As Singapore navigates these complex challenges, it aims to emerge as a resilient economy where growth benefits all citizens.