\n<\/p>\n
The Republic must also become harder to replace as global economy grows more contested and fragmented<\/p>\n
[SINGAPORE] The Republic cannot assume that economic growth will translate into the same level of job creation as artificial intelligence transforms work, even as the country seeks to become harder to replace in an increasingly fragmented global economy, said Deputy Prime Minister Gan Kim Yong on Thursday (Aug 27).\u00a0<\/p>\n
AI and automation may allow firms to produce more with the same or fewer workers, along with creating new tasks and roles, but he also warned that \u201csome existing ones will change, shrink or disappear\u201d.<\/p>\n
\u201cThere is no need to be alarmist. This is not likely to lead to immediate, economy-wide job losses,\u201d said DPM Gan, who is also minister for trade and industry (trade), during his speech at the Economic Society of Singapore\u2019s 70th Anniversary Dinner.<\/p>\n
Also in attendance were Emeritus Senior Minister Goh Chok Tong, former DPM and National Research Foundation chairman Heng Swee Keat, and Minister for Transport and Second Minister for Finance Jeffrey Siow.\u00a0<\/p>\n
DPM Gan, who chairs the Singapore Economic Resilience Taskforce, also warned against complacency and highlighted the need to manage the AI transition well.<\/p>\n
\u201cUltimately, technology must enable workers to do more valuable work, take on broader responsibilities, earn better wages and progress in their careers,\u201d he said.<\/p>\n
For instance, he said firms adopting AI should not only focus on cost savings, but also on job redesign, training and worker outcomes.<\/p>\n
Singapore also needs to identify roles potentially exposed to AI early and create \u201ceffective career bridges\u201d into other work that builds on workers\u2019 existing skills, through targeted training, guidance, job matching and placement.<\/p>\n
But adaptability cannot rest on workers alone, DPM Gan said.\u00a0<\/p>\n
The broader system must respond faster, with better labour-market information and training more closely linked to actual jobs, so that support begins before disruption turns into prolonged unemployment.<\/p>\n
He added that this requires employers, training institutions, unions and government to act together.\u00a0<\/p>\n
\u201cLearning must remain closely connected to work, and support must begin before workers are affected. This is the task of our tripartite partners,\u201d said the deputy prime minister.<\/p>\n
However, he acknowledged that \u201cnot everyone will, or should, become an AI engineer\u201d, as roles in care, allied health, early childhood education, skilled trades and essential services continue to offer good job opportunities.<\/p>\n
Said DPM Gan: \u201cMany of such roles depend on judgment, dexterity, trust and human interaction that technology can support but not easily replace.\u201d<\/p>\n
But the aim should not simply be to preserve such jobs, he said. Their productivity, job design and career progression should also be improved to support better wages.<\/p>\n
While redistribution and social support will remain necessary, they cannot be the only answer, he added, noting that productive work provides people with more than income. This includes agency, dignity, social recognition and confidence that their effort can lead to progress and success.<\/p>\n
\u201cThis is why good jobs are not simply a social outcome to be addressed after economic strategy is decided. They are part of economic strategy itself.\u201d<\/p>\n
More broadly, DPM Gan said Singapore must rethink how it remains competitive in a global environment where economic decisions are increasingly shaped by national security and domestic politics.<\/p>\n
He stressed that it is critical for Singapore to remain open due to its small economy, and that turning inwards would only \u201cnarrow our options, constrain our opportunities and leave us even more vulnerable\u201d.<\/p>\n
But openness alone is not enough, he said, as the state of the global economy means that while trade and investment will still flow, it will not always be along the most efficient route due to factors such as reliability, security and strategic alignment.<\/p>\n
\u201cA hub that is merely convenient or efficient can be bypassed for these considerations,\u201d said DPM Gan. \u201cSingapore must therefore move from just being open to being relevant.\u201d\u00a0<\/p>\n
One way would be concentrating on areas where Singapore can build hard-to-replicate advantages, and become integral to companies\u2019 supply chains and operations, he said.<\/p>\n
This would mean deepening Singapore\u2019s capabilities in high-value manufacturing and trusted services, anchoring investments through partnerships with local enterprises and research institutions, and building up its talent base.\u00a0<\/p>\n
Singapore must also evolve its role as a hub, from one through which goods, capital and data pass to one where these flows are decided, managed, financed and governed, added DPM Gan.\u00a0<\/p>\n
\u201cIn simple terms, we must move from moving things to determining how things move,\u201d he said. \u201cThis is how a small economy creates leverage: by being useful to many, while being difficult to replace in a few important areas.\u201d<\/p>\n
Staying relevant will also require constant renewal, he added.\u00a0<\/p>\n
Singapore must support new firms and business models, while helping existing companies restructure or pivot so that scarce land, manpower and capital can move towards more strategic and productive uses.\u00a0<\/p>\n
At the same time, remaining open leaves the country exposed to external shocks, making resilience another priority.\u00a0<\/p>\n
DPM Gan said this means diversifying critical sources, maintaining strategic buffers where needed, deepening trusted partnerships and developing alternatives where possible.\u00a0<\/p>\n
\u201cResilience buys us time. Agility allows us to do the necessary during that time,\u201d he said.\u00a0<\/p>\n
Agility, he added, does not mean constantly changing course, but \u201chaving the capacity to change when necessary, while focusing sharply on our direction\u201d.\u00a0<\/p>\n
Addressing the Economic Society of Singapore, he said it has a \u201csignificant role\u201d to play in helping the wider community understand the consequences and trade-offs of operating in what he described as a \u201cmessy world\u201d.<\/p>\n
\u201cIt must show how decisions in one domain affect another; distinguish immediate efficiency from long-term robustness; identify who bears the costs and who benefits from it; and recognise the value of preserving options given the uncertainties ahead.\u201d<\/p>\n<\/div>\n
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