‘Career bridges’, raising wages of AI-resilient work: Economic Strategy Review proposes ways to create good jobs
Singapore cannot hold back on technology, but should be deliberate about ensuring that technology uplifts workers, the Economic Strategy Review committees said.
Office workers in Singapore's central business district on Apr 16, 2024. (Photo: CNA/Raj Nadarajan)
This audio is generated by an AI tool.
SINGAPORE: From “career bridges” to raising the quality and wages of jobs that are resilient to artificial intelligence disruption, the Economic Strategy Review (ESR) proposed various ways to support workers through career transitions and to create good jobs amid a changed world.
Also among the ideas is a call for retrenchment support to be provided at an earlier stage to improve the chances of redeploying affected workers.
These were part of the 32 final recommendations made by the review's committees, released on Wednesday (May 13) at the Singapore Business Federation’s (SBF) Future Economy Conference.
The recommendations were categorised into eight thrusts: four are about securing economic growth for Singapore, and another four are about creating good jobs and opportunities.
AI and automation mean that work can be done with fewer humans, and jobs that once offered stability are now exposed to disruption, the executive summary of the review said.
Singapore cannot hold back on technology, but should be deliberate about ensuring that technology uplifts workers, while widening the range of roles that offer meaningful and sustainable careers.
The review committees added that career transitions are becoming more significant and frequent, so support structures need to be redesigned to take an “anticipatory and integrated approach”.
Learning and workforce development systems must also be adjusted so that workers can acquire skills as needed.
For example, modular and stackable pathways can be scaled up so that workers can build skills progressively while remaining employed.
MAKING RESILIENT SECTORS ATTRACTIVE, BUILDING CAREER BRIDGES
One of the recommendations was to raise the quality and attractiveness of jobs that are less likely to be affected by AI disruption, such as roles in early childhood education, allied health and social services.
The review committees recommended raising the quality, productivity and wages of these jobs so that they become more attractive.
Structured apprenticeship models that integrate training, accreditation and progression could be developed, together with a gradual shift away from reliance on low-cost, low-skilled labour.
"This way, we make sure that as our economy grows, our workers' prospects improve with it," said Acting Minister for Transport and Senior Minister of State for Finance Jeffrey Siow, who chaired the ESR committee on global competitiveness.
He was speaking at the Singapore Business Federation's Future Economy Conference.
AI that complements workers, stackable credentials
One of the committees’ recommendations was to advance an AI strategy that complements workers, and DBS was highlighted as a company that has done so.
The bank uses AI to analyse transactions to detect unusual patterns and intercept suspicious activity. It also uses AI to reduce processing times for trade documentation.
Meanwhile, the company is reskilling employees into new jobs that are created through the use of AI, such as AI agent monitoring managers and Gen AI evaluators.
AI has also helped some employees move from customer service to relationship manager roles.
All 40,000 of its employees are given exposure to AI, and those in core markets have access to DBS-GPT, which can help with brainstorming, research, writing and summarisation.
Another recommendation was to deepen SkillsFuture support for career transitions and lifelong learning, including by scaling up modular and stackable pathways.
One example is the Singapore Institute of Technology’s Competency-based Stackable Micro-credential pathway programme, where learners pursue just-in-time upskilling courses and stack them towards a full degree.
Mr Michael Leow, a project manager and father, enrolled in a series of stackable micro-credentials in Applied Computing.
He wanted to pursue his ambition of working in software development, data engineering and machine learning, while balancing his family and work commitments.
He said the programme offered a more flexible and modular learning approach.
"I also appreciated how the programme aligns closely with evolving technology trends and practical problem-solving, which complements both my engineering background and my interest in developing innovative digital solutions," he told CNA.
After a year, his accumulated micro-credentials were put towards a Bachelor’s degree qualification, which requires a significantly greater commitment in time, consistency and academic depth.
Another recommendation was to create “career bridges” for workers that are in at-risk roles.
Some sectors and occupations are more likely to be disrupted from automation, AI and changing cost structures. The review said that workforce transition plans should be proactively developed for such roles before large-scale displacement happens.
A structured pathway – or career bridge – could be created to map workers in riskier roles to more resilient occupations, taking into account their existing skills and experience.
The “bridge” could also include targeted training, career guidance and job matching, and should be prioritised for areas with more acute disruption pressures.
"The principle ... is to protect the worker, but not the job," said Mr Siow.
The ESR also recommended that Singapore closely monitor the impact of AI on workers and adjust policies where needed.
If AI leads to more severe disruption than expected, the government should consider more structural changes to ensure the gains are shared fairly across society.
"The benefits of AI cannot accrue only to those with capital. Workers must also benefit through better jobs, stronger wage growth and broader opportunities," the executive summary said.
Earlier this month, Members of Parliament debating a motion on AI had also raised concerns about inequality, given that access to AI tools often require costly subscriptions.
RETRENCHMENT SUPPORT
Meanwhile, workers who are retrenched should receive support before they leave their jobs, the review said.
“Transition support cannot begin only after a worker loses his or her job. Earlier intervention significantly improves the chances of redeployment,” the summary said.
Companies in Singapore with at least 10 employees are currently required to submit a mandatory retrenchment notification to the government within five working days after informing affected workers.
They should be encouraged to inform the government in advance, while the mandatory retrenchment notification period should be shortened, said the committees.
Workers could then receive counselling, career guidance, skills assessment and job-matching support before leaving their jobs, giving them more time, options and confidence to navigate the transition.
The ESR's proposal for earlier retrenchment notifications echoed an earlier call by labour chief Ng Chee Meng for mandatory retrenchment notifications to be made in advance. In response, the Singapore National Employers Federation (SNEF) – a tripartite partner – had said requiring advance notification has “significant implementation challenges and uncertain benefits".
Manpower Minister Tan See Leng also said advance notifications could discourage talks to save jobs. In parliament last week, he said tripartite partners are studying how to encourage earlier retrenchment notification by employers, but that there is no need to raise penalties for late notices for now.
Separately, the review committees proposed four recommendations on building economic resilience by diversifying risks, building buffers and deepening partnerships.
“The ability to combine resilience with efficiency will be a key competitive advantage,” the summary said.
The recommendations include building energy resilience through strategic buffers and diversification, preparing for a climate-resilient future, mitigating supply chain vulnerabilities and expanding Singapore’s network of trusted partnerships.
Mr Siow said the eight thrusts work together as a coherent strategy, and every recommendation comes back to one vision.
"A Singapore that stays competitive and resilient in a changed world, and one that continues to create good jobs and opportunities for our people," he said.
UNION, BUSINESS COMMUNITY'S RESPONSE
Responding to the recommendations, the National Trades Union Congress (NTUC) said workers must remain at the centre of Singapore's growth strategy as it enters the next phase of economic transformation.
That could look like better jobs, stronger progression pathways and greater career security.
Workers are increasingly concerned not just about job availability, but about job quality, progression and whether new opportunities will be accessible to them, the union said.
"Without deliberate effort, technological change may widen gaps between workers and limit progression pathways," said NTUC.
On Wednesday, SNEF said it supports the recommendations to enable firms to restructure and transition more smoothly.
"We must recognise that as businesses transform, some restructuring is unavoidable and we fully support efforts to help both employers and workers navigate this transition," the federation said in a statement.
It is in the broader interest of the economy and employers for workers affected by restructuring to quickly get back on their feet, SNEF added.
"SNEF will work with MOM and NTUC to encourage employers to provide early notification of retrenchments and shorten mandatory retrenchment notification timelines," the statement said.
Responding to the ESR's recommendations, SBF said it stands ready to work with the government, unions and industry partners to turn the recommendations into concrete action.
On the topic of refining Singapore's foreign workforce strategy, SBF said Singapore's openness to global talent remains a key strength, but firms face practical pressures in terms of levy increases and quota constraints.
A balanced and predictable approach will remain important to business confidence, said SBF, adding that this could involve supporting growth, strengthening local workforce development and increasing local acceptance on the need for foreign manpower augmentation.
