The government does not yet have a clear answer on how many jobs artificial intelligence (AI) will replace, but will continue studying and tracking its impact on the labour market so it can take early action.
Acting Minister for Manpower Jasmin Lau also said that, given the uncertainties surrounding AI, employers, unions and the government should work together to address potential employment shocks in the early stages, rather than expect the government to devise comprehensive safeguards in advance.
The Singapore National Employers Federation (SNEF) held its inaugural Employers Summit on Friday (30 October), attended by more than 300 business leaders, human resources (HR) professionals and tripartite partners.
In her opening address, Lau raised three questions commonly asked by businesses: how AI will change Singapore’s economy, how many jobs it will replace and how the government will respond if employment is disrupted. She acknowledged that there were no definitive answers to these questions yet.
Lau said AI is developing rapidly and that this development is mostly being controlled by companies overseas. The economic gains will materialise only when firms change how they actually work, a process that could take years.
Businesses should therefore not wait for the broader economic outlook to become clear before acting. Instead, they should start with their own business challenges and consider how AI could help them reduce costs, develop new services and build new capabilities.
The government also encourages small and medium-sized enterprises (SMEs) to apply for the Workforce Development Grant (Job Redesign+) under the Enterprise Workforce Transformation Package. They could also use the enhanced SkillsFuture Enterprise Credit to offset transformation and training costs.
Estimates of how many jobs AI will replace vary widely. Predictions are also difficult because AI often affects specific tasks rather than entire jobs.
Ultimately, however, the answer depends on how businesses choose to use AI.
Lau gave an example: “Two companies in the same industry can face the same problem. But they can respond to it very differently. One can empower its staff to start trying to use AI to develop a new work process. The other can buy an AI solution off the shelf, maybe, and then cut headcount to reduce some cost. Same problem statement, same technology, but very different workforce outcomes.”
Regarding potential employment shocks caused by AI, Lau said the government could not devise a comprehensive response in advance. It would, however, monitor developments closely, act early and progressively adjust policies according to circumstances.
“We are reviewing our support schemes currently, to provide stronger support to graduates and retrenched workers.”
Small firm turns to AI transformation
Industrial components and equipment supplier Eligo plans to use AI to enhance employees’ capabilities rather than cut jobs.
Eligo previously relied heavily on manual work in its operations and administrative functions, resulting in repetitive tasks, longer processing times and a greater risk of human error. Through SNEF, the company began working with accounting firm BDO Advisory on a six-month AI transformation project.
The project began in October this year and is expected to be completed in March next year. It is still in its initial stages.
Wee Kok Seng, founder and managing director of Eligo Pte Ltd, said: “Rather than displacing staff, the initiative focuses on job enlargement and enrichment—removing repetitive administrative burdens so employees can focus on higher-value advisory, technical support, and customer engagement tasks.”
Eligo has 20 employees, 11 of whom will have their jobs redesigned, including five application engineers and six sales administrators.
Wee expects the company’s workforce could double over the next two to five years after it introduces AI.
Dr Stephen Yee, director of Digital Advisory and Workforce Transformation at BDO Singapore, used a three-part model in an interview to explain the division of work between humans and AI: humans handle the first 20%, framing questions and developing ideas, AI assists with research and data collection for the middle 60%, and humans make judgements and decisions in the final 20%.
Dr Yee stressed that AI transformation should not focus solely on productivity and efficiency. It should also consider employees’ career development and whether businesses can continue using the technology after the project ends.
SNEF launches AI-HR solution
SNEF president Ke Wenwei announced the launch of an AI-HR pre-scoped solution at the summit. It brings together four key areas businesses need to consider when using AI to transform their HR functions: Human Capital Advisory, AI Agents for HR, Workforce Transformation and Workforce Skills Analytics. The solution aims to help businesses adopt AI in their HR work.
Businesses can first discuss and assess their needs with SNEF, which will then match them with an appointed consultancy. Five appointed consultancies are currently participating: BDO, HR consultancy Elitez, consulting and training firm EON, PwC, and accounting and technology consultancy Skybots.
Eligible SMEs can receive subsidies of up to 70%, while non-SMEs can receive 50%, with funding capped at $150,000 per project.
