Study on Labour Impacted by AI in SMEs and Plans to Support Workers Substituted by AI

Mr Shawn Loh asked the Minister for Manpower with SMEs employing 70% of the workforce (a) whether the Government can consider conducting a study to better estimate for whom artificial intelligence (AI) is complementary and for whom AI is a substitute for their labour; and (b) whether there are differences between SMEs and MNCs so that the Government can have more targeted plans for those substituted.

Dr Tan See Leng: The Government is studying the impact of the rapid evolution of artificial intelligence (AI) on Singapore's labour market, including how AI may substitute or complement different groups of workers.

While we recognise that small and medium enterprises (SMEs) and multinational corporations (MNCs) operate in different contexts, with varying structural complexities, risk appetites, organisational capabilities and resources , the impact of AI on workers and firms depends more on the nature of business activities and job roles than on firm size. Accordingly, the Government's workforce transformation programmes support all firms to redesign jobs and reskill workers in tandem with AI adoption. Our programme partners tailor the level of support provided to meet firms' needs, offering closer guidance for those undertaking larger and more complex workforce transformation projects.

The Government remains committed to helping all workers prepare for AI and stay relevant, regardless of the type of jobs or firms that they are in today. For workers displaced by AI, we will also work with companies to support their transition into new roles through workforce transformation and reskilling programmes.