‘Career bridges’, raising wages of AI-resilient work: Economic Strategy Review proposes ways to create good jobs

“The benefits of AI cannot accrue only to those with capital. Workers must also benefit through better jobs, stronger wage growth and broader opportunities,” the executive summary said. 

Earlier this month, Members of Parliament debating a motion on AI had also raised concerns about inequality, given that access to AI tools often require costly subscriptions.

RETRENCHMENT SUPPORT

Meanwhile, workers who are retrenched should receive support before they leave their jobs, the review said.

“Transition support cannot begin only after a worker loses his or her job. Earlier intervention significantly improves the chances of redeployment,” the summary said.

Companies in Singapore with at least 10 employees are currently required to submit a mandatory retrenchment notification to the government within five working days after informing affected workers.

They should be encouraged to inform the government in advance, while the mandatory retrenchment notification period should be shortened, said the committees.

Workers could then receive counselling, career guidance, skills assessment and job-matching support before leaving their jobs, giving them more time, options and confidence to navigate the transition.

The ESR’s proposal for earlier retrenchment notifications echoed an earlier call by labour chief Ng Chee Meng for mandatory retrenchment notifications to be made in advance. In response, the Singapore National Employers Federation (SNEF) – a tripartite partner – had said requiring advance notification has “significant implementation challenges and uncertain benefits”. 

Manpower Minister Tan See Leng also said advance notifications could discourage talks to save jobs. In parliament last week, he said tripartite partners are studying how to encourage earlier retrenchment notification by employers, but that there is no need to raise penalties for late notices for now.

Separately, the review committees proposed four recommendations on building economic resilience by diversifying risks, building buffers and deepening partnerships.

“The ability to combine resilience with efficiency will be a key competitive advantage,” the summary said.

The recommendations include building energy resilience through strategic buffers and diversification, preparing for a climate-resilient future, mitigating supply chain vulnerabilities and expanding Singapore’s network of trusted partnerships.

Mr Siow said the eight thrusts work together as a coherent strategy, and every recommendation comes back to one vision. 

“A Singapore that stays competitive and resilient in a changed world, and one that continues to create good jobs and opportunities for our people,” he said.