Budget 2026 debate: No ‘jobless growth’ in Singapore even as AI reshapes economy, says PM Wong

However, with emerging pressures, it is important to prepare for the future, he added.

“We cannot rely only on today’s data, we must prepare for tomorrow,” he said.

“And I mentioned earlier that the historical experience with major technological waves is that ultimately more jobs are created than lost. That has been so in the past, but there is no economic law that says this will always happen or that this will happen in the future.”

There are concerns that this time may be different because AI is more powerful, advancing faster, and affecting a wider range of jobs, said Mr Wong.

Risks include companies leaning too heavily on AI, with less worker training, and that entry-level jobs may be hollowed out, he pointed out.

“We are alert to these risks, and we will act early to prevent such outcomes from taking hold in Singapore. We will invest more deliberately and more systematically in our people,” said Mr Wong.

He agreed with labour chief Ng Chee Meng’s call to empower every worker to be AI-ready, to strengthen support and safeguards for workers, and to strengthen the labour movement’s ability to protect and uplift PMEs.

The government will work closely with tripartite partners, especially NTUC, to realise these shared goals, Mr Wong said.

In his speech, Mr Wong also discussed the role of small- and medium-sized enterprises (SMEs) in employing Singaporeans and anchoring economic activity. 

He noted that in particular, the SME segments under greater pressure are retail as well as food and beverage.

While the government has, in the immediate term, provided corporate income tax (CIT) rebates, over the longer term, support must be sustainable and should not distort market incentives, he said.

Authorities cannot relax the dependency ratio ceiling (DRC) as doing so will encourage excessive reliance on foreign manpower and weaken the Singaporean core, said Mr Wong, adding that the government will consider calibrated ways to provide more flexibility.

“Ultimately, the sustainable path forward is productivity improvement and business transformation.”