Singapore’s economy faces a pivotal shift where robust growth might not guarantee proportional job creation, thanks to rapid technological progress. Deputy Prime Minister Gan Kim Yong emphasized the need for intentional policies to foster diverse employment opportunities in this landscape.
Economic Maturity and External Pressures
In a mature economy like Singapore’s, achieving sustained growth is already demanding, particularly against a backdrop of global uncertainties. Speaking during a mid-term update on the Economic Strategy Review, Mr. Gan highlighted that even strong economic expansion could fall short of generating sufficient jobs. “We can no longer assume that growth will automatically generate jobs,” he stated.
Advancements in automation and artificial intelligence are driving higher-value industries that require fewer workers per unit of output. This trend aligns with broader global observations, where digital transformation accelerates job disruptions and leads to displacement in various sectors. Reports indicate that job quality worldwide has plateaued despite economic resilience, underscoring the limitations of relying solely on growth for decent employment outcomes.
Twin Goals: Growth and Employment
The country’s five Economic Strategy Review committees, established last August, are tasked with enhancing competitiveness amid structural changes. Mr. Gan described growing the economy and creating quality jobs as interconnected challenges. “We need to be quite deliberate in our policies and our economic strategy, to focus on these two twin objectives, to make sure that both of them can be achieved,” he noted.
The committees aim to maintain medium- to long-term growth between 2% and 3%. “It is going to be very challenging, but we will work very hard to do that. And with the recommendations of these committees, we hope to be able to push ourselves towards growth on the higher end of the 2% to 3% over the next decade,” Mr. Gan added.
Key Recommendations for Balanced Progress
To address these issues, the committees have outlined seven proposals, including elevating Singapore’s role as a leader in artificial intelligence, expanding access to quality jobs across sectors, and embedding lifelong learning into everyday practice.
Opportunities must extend beyond technology-focused roles to ensure inclusivity. The committees advocate for strengthening sectors resilient to global changes, such as skilled trades like technicians and positions in care and social services. “We should boost our efforts to uplift and transform jobs in sectors that may be more resilient to global shifts and offer opportunities for quality employment,” they suggested.
Diversifying Beyond Tech Innovations
Acting Minister for Culture, Community and Youth David Neo, who co-chairs a committee on workforce skills, stressed the importance of a broad job spectrum. “There will be new roles that come about with technology, AI, but that alone by itself will not be enough,” he said. Many existing jobs in essential services for households and businesses remain irreplaceable by AI.
For instance, electricians could upskill to service electric vehicles through certifications. In healthcare, tools like monitoring cameras at facilities such as Singapore General Hospital enable nurses to work more efficiently without replacing human oversight.
Addressing Workforce Concerns
Mr. Gan acknowledged the natural anxiety among workers during major transitions. “The key is, can we transform fast enough? Can we transform faster than our competitor, as a country, as a workforce?” he questioned. To mitigate this, he assured ongoing support: “And this anxiety will always be there. So I think the … assurance that we can give is that we will be with you every step of the way.”
Success requires a collective societal effort rather than individual actions alone, to avoid counterproductive outcomes and build a more adaptive workforce.
