AI transition must avoid worker‑business clash, Minister Tan says

Only 6% of AI adopting firms reported workforce reductions in MOM survey.

Singapore’s artificial intelligence (AI) transition should not become “a tug of war” between workers and businesses, Manpower Minister Tan See Leng said in Parliament on 6 May 2026.

He said the city-state’s approach to AI centres on cooperation between employers, unions, and the state to support productivity and workforce transformation.

“In many countries, AI becomes a tug of war. Workers on one end, business on the other,” Tan said. “Singapore does not have to go down that road.”

The government is attempting to align AI-driven productivity gains with worker retention, job redesign, and reskilling instead of treating labour protection and business transformation as competing goals.

Tan cited Ministry of Manpower survey data showing only about 6% of firms in Singapore that adopted AI had reduced headcount.

Around three in 10 firms have adopted AI, whilst seven in 10 AI-using firms reported productivity gains.

He said most firms were redesigning jobs and creating new AI-related roles rather than cutting employment.

Tan also rejected proposals centred on AI-related cash payouts or redundancy-style compensation models, arguing that Singapore’s approach should focus on keeping workers “economically valuable” through skills development and labour market participation.

The government has spent more than $10b over the past five years on workforce initiatives and set aside more than $400m for the Enterprise Workforce Transformation Package.

Singapore is also expanding AI-related workforce programmes, including more than 1,600 AI-related courses on the MySkillsFuture platform and new diagnostic tools aimed at assessing AI readiness.

From the second half of this year, Singaporeans enrolled in selected SkillsFuture AI courses will receive six months of access to premium AI tools.

Tan said firms tapping workforce transformation support schemes, such as the Workforce Development Grant and Job Redesign Plus, are required to support workforce outcomes, including wage growth and retention.

The government is also backing NTUC’s proposal for a Tripartite Jobs Council involving employers, unions, and government agencies to coordinate AI adoption, workforce transformation, and job transition support across sectors.

Tan said Singapore would continue strengthening transition support for displaced workers through the SkillsFuture Job Support Scheme, which provides temporary financial support and employment assistance for involuntarily unemployed workers.

He said the government expected AI’s impact on jobs to increase as adoption accelerates across sectors, adding that authorities would continue monitoring labour market effects.