Study on Labour Impacted by AI in SMEs and Plans to Support Workers Substituted by AI
Ministry of ManpowerSpeakers
Summary
This question concerns Mr Shawn Loh’s inquiry regarding potential studies on AI’s substitution or complementarity of labor in SMEs and whether targeted support plans should distinguish between SMEs and MNCs. Minister for Manpower Dr Tan See Leng replied that the Government is currently studying AI’s impact on the workforce, noting that job roles and business activities influence AI's effect more than firm size does. He highlighted that existing workforce transformation programmes assist all firms with job redesign and reskilling, with support tailored to project complexity. Finally, the Government remains committed to helping all workers stay relevant and will assist those displaced by AI to transition into new roles through reskilling initiatives.
Transcript
40 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.