A bitter medicine that’s good for Singapore, but AI won’t fuel job growth as before: Tan See Leng

Minister for Trade and Industry (Energy and Industry) Tan See Leng (left) participated in a dialogue on Aug 26 moderated by Euston Quah, Albert Winsemius chair professor of economics and director of the Economic Growth Centre at Nanyang Technological University.

SINGAPORE – Harnessing artificial intelligence (AI) is important to the continued growth of the Singapore economy, but the technology cannot be expected to contribute to job creation as it did in the past, said Minister for Trade and Industry (Energy and Industry) Tan See Leng.

The Government recognises that AI and automation may allow firms to produce more with fewer workers, Tan said at the MTI Economic Dialogue on Aug 26.

“As such, we can no longer assume that growth will automatically create the same number, the same type, or the same range of jobs as before,” he said.

“What we will do is to make sure that all of our AI adoption, always at the core, is human-centric.”

This means building pathways into growth sectors, raising the quality of jobs in essential and resilient occupations, including skilled trades, and encouraging entrepreneurship.

Tan also pointed to plans to offer “career bridges” to workers who are more exposed to disruption from AI, automation and changing cost structures, to support them in the move to other opportunities.

He added that it was also important to ensure that gains from AI diffuse beyond leading firms.

Small and medium-sized enterprises must also be able to adopt useful solutions, with workers equipped to use AI alongside their current expertise.

“In short, we want Singapore to be valuable not just because goods, people, capital and energy pass through us, but also because important decisions are made here,” Tan said.

“These activities create, in turn, a virtuous cycle where opportunities and capabilities continue to abound for Singaporeans as well as our companies,” he added.

The event was attended by around 190 participants, most of them students from universities and junior colleges. Tan also presented the Ministry of Trade and Industry’s economist service undergraduate scholarships to six recipients.