Singapore AI drive to sustain productivity and wage growth: Teo

Teo cites 50 centres built in 12–18 months and a digital economy share of 18.6% of GDP.

Singapore is pushing ahead with artificial intelligence adoption as a way to sustain wage growth and productivity, with the government taking an active role in setting the pace, Digital Development and Information Minister Josephine Teo said in a McKinsey interview.

Teo said Singapore views AI as a general-purpose technology that must be embedded across industry, research, and government, with the public sector expected to “walk the talk”.

She highlighted workforce skills, computing infrastructure, and a pro-innovation regulatory environment that builds trust as key enablers.

She said government adoption has involved early experimentation, including allowing public officers to use a secure version of ChatGPT and later a platform to build AI bots. About 16,000 bots have been created so far, she said.

On the industry side, Singapore has focused on working with firms ready to experiment, helping them set up AI centres of excellence, with around 50 established over the past 12 to 18 months.

Teo stressed that AI should be treated as a collaborator rather than a replacement for workers, requiring close collaboration between domain experts and AI specialists.

She also pointed to Singapore’s long-running digital journey, noting that the digital economy now accounts for about 18.6% of GDP.

On risk management, Teo said Singapore is taking a methodical approach to issues such as deepfakes and scams, using a mix of existing laws and new safeguards to ensure accountability and public trust.

She added that Singapore is contributing to international efforts on AI governance and cross-border data flows, including tools such as AI Verify and Project Moonshot.

Ultimately, Teo said trust is the most important measure of success for AI adoption, arguing that long-term confidence in institutions and systems will matter more than any single technology outcome.