Economic Strategy Review calls for Singapore to ensure AI technology supports workers instead of replacing them

SINGAPORE: Singapore’s latest economic strategy review is sending a message many workers have been waiting to hear: Artificial intelligence (AI) should improve careers, not erase them.

A set of recommendations released on May 13 proposed new ways to help workers adapt as automation and AI continue reshaping industries. The Economic Strategy Review (ESR) committees outlined plans ranging from “career bridges” for at-risk workers to raising wages in jobs seen as more resistant to AI disruption.

The review arrives as concerns over AI are becoming less theoretical and more personal, with workers no longer asking whether AI will affect jobs; many are already wondering which roles will still feel stable five years from now.

Acting Minister for Transport and Senior Minister of State for Finance Jeffrey Siow, who chaired the ESR committee on global competitiveness, said the goal is to protect workers rather than preserve outdated roles forever.

The review produced 32 recommendations grouped into eight “thrusts” focused on economic growth, workforce resilience and future job creation. According to Singapore’s Ministry of Digital Development and Information (MDDI), reported by Channel NewsAsia (CNA), the recommendations were divided into the following areas:

1. Build global leadership in areas of strength and invest in future growth sectors

2. Position Singapore as a global leader in AI solutions and AI adoption

3. Strengthen Singapore’s role as a connected and trusted hub

4. Create a stronger enterprise ecosystem for startups and global expansion

5. Create more good jobs and improve roles less vulnerable to AI replacement

6. Strengthen career transition systems and worker support

7. Empower workers to pursue lifelong learning and skills upgrading

8. Build economic resilience through stronger energy and supply chain security

AI job disruption is no longer a distant issue

The report acknowledged a growing reality across many industries as tasks once handled by large teams can now be done faster with software and automation.

The committees said Singapore cannot slow technological progress, but it should ensure workers benefit alongside businesses.

That includes improving jobs in sectors considered harder to automate, such as early childhood education, allied health, and social services. The proposal suggested raising wages, improving productivity, and creating more defined career pathways in those fields.

Earlier discussions focused heavily on innovation and competitiveness, but the newer concern is whether ordinary workers will still find meaningful, stable careers in the process.

The ESR also proposed structured apprenticeship models tied to training, accreditation and career progression, while reducing dependence on low-cost labour.

The rise of “career bridges”

One of the more practical ideas involved creating “career bridges” for workers in roles vulnerable to automation or changing business costs. Instead of waiting until layoffs happen, the review suggested preparing workers earlier for transitions into more resilient sectors.

These bridges would map existing skills to new industries and include training support, career coaching, and job matching. The approach demonstrates a significant change in labour thinking, as career changes are increasingly part of normal working life rather than rare midlife disruptions.

The report also pushed for retrenchment support to begin before workers officially lose their jobs. Currently, companies with at least 10 employees must submit retrenchment notifications within five working days after informing affected staff. As such, the ESR committees proposed encouraging employers to notify authorities earlier so workers can receive career guidance and skills support sooner.

Labour chief Ng Chee Meng had previously called for advance retrenchment notifications, although the employer group, Singapore National Employers Federation (SNEF), a tripartite partner, warned that early disclosure may create operational complications.

Manpower Minister Tan See Leng also said in parliament last week that tripartite partners were studying ways to encourage earlier notification without imposing harsher penalties.

DBS example shows how firms may adapt AI without cutting jobs

The review pointed to DBS Bank as an example of how AI can reshape jobs without simply cutting headcount. The bank uses AI to detect suspicious financial activity and reduce document processing times.

At the same time, DBS employees have reportedly been retrained into newer AI-linked roles such as generative AI evaluators and AI monitoring managers. Some workers also switched from customer service positions to relationship management roles.

DBS has reportedly exposed all 40,000 employees to AI tools, including DBS-GPT, an internal platform used for research, writing and brainstorming support.

The review also promoted stackable learning pathways that allow workers to upskill gradually while staying employed. One example came from the Singapore Institute of Technology, where learners can accumulate micro-credentials over time and eventually convert them into degree qualifications.

Project manager Michael Leow said the modular structure allowed him to pursue interests in software development, machine learning and data engineering while balancing work and family commitments.

Businesses and unions see pressure from both sides

The recommendations received support from unions and business groups, though both acknowledged the balancing act ahead.

The National Trades Union Congress (NTUC)

NTUC said workers are increasingly worried about job quality, progression and whether future opportunities will remain accessible. The union warned that without deliberate intervention, technology could widen inequality between workers.

Singapore National Employers Federation (SNEF)

Meanwhile, SNEF said restructuring is sometimes unavoidable as businesses adapt, but supported efforts to help workers return to employment faster.

Singapore Business Federation (SBF)

SBF also backed the recommendations, while noting that companies still face pressure from foreign manpower quotas and rising levies.

AI training programmes alone may not alleviate the fear in workers worrying about being replaced

The conversation around AI in Singapore has moved beyond hype videos and productivity demos. The real issue now is whether workers feel they still have a place in the economy as software becomes more capable.

Singapore’s latest proposals appear to recognise something important: anxiety about AI frequently comes from workers fearing they may become replaceable, and training programmes alone may not alleviate that fear, as workers also want stability, fair wages and confidence that opportunities remain open to them even as industries change.

If Singapore manages to build smoother career transitions before disruption hits, it may avoid the harsher shocks already seen elsewhere.

Technology tends to move faster than people can adapt to, so the challenge now is making sure policy, employers, and education systems keep pace with it.