SINGAPORE: There will be no “jobless growth” in Singapore amid the powerful force of artificial intelligence reshaping the economy, said Prime Minister Lawrence Wong in parliament on Thursday (Feb 26).
In his round-up speech after a three-day debate on Budget 2026, Mr Wong said that Singapore will exploit AI to grow the economy.
It will also ensure that growth translates to good jobs and better wages, said Mr Wong, who is also the finance minister.
“That's how we give every Singaporean confidence to progress in the future.”
In his Budget speech earlier this month, Mr Wong announced that he will chair a new National AI Council to drive Singapore’s AI agenda.
The council will oversee the development and execution of “AI missions” and will focus on four sectors: advanced manufacturing, connectivity, finance and healthcare.
“Every sector is different and how they use AI and the impact on workers in each sector will vary,” said Mr Wong on Thursday.
“And that is why we are coordinating all of these efforts through the National AI Council, aligning industry transformation and workforce upgrading to ensure that AI uplifts our workers.
“That is our assurance, and that's why our strategy going ahead is clear.”
Mr Wong also acknowledged concerns raised by various Members of Parliament (MPs) on the anxieties that workers and fresh graduates are feeling amid the AI revolution.
“These concerns are real and we must and we will take them seriously,” he said.
Historically, every major technological wave has displaced some jobs but also created new ones, he noted. In Singapore’s experience, AI can augment jobs and help workers achieve more, even as it automates certain tasks.
Mr Wong added that Singapore’s labour market remains resilient for now.
The proportion of permanent employees has risen to a record high of nearly 91 per cent, with gains across most sectors.
Vacancies continue to outnumber job seekers, and over 40 per cent of openings are entry-level professionals, managers, executives and technicians (PMETs) roles.
So far, the evidence does not point to widespread displacement, said the prime minister.
However, with emerging pressures, it is important to prepare for the future, he added.
“We cannot rely only on today’s data, we must prepare for tomorrow,” he said.
“And I mentioned earlier that the historical experience with major technological waves is that ultimately more jobs are created than lost. That has been so in the past, but there is no economic law that says this will always happen or that this will happen in the future.”
There are concerns that this time may be different because AI is more powerful, advancing faster, and affecting a wider range of jobs, said Mr Wong.
Risks include companies leaning too heavily on AI, with less worker training, and that entry-level jobs may be hollowed out, he pointed out.
“We are alert to these risks, and we will act early to prevent such outcomes from taking hold in Singapore. We will invest more deliberately and more systematically in our people,” said Mr Wong.
He agreed with labour chief Ng Chee Meng’s call to empower every worker to be AI-ready, to strengthen support and safeguards for workers, and to strengthen the labour movement's ability to protect and uplift PMEs.
The government will work closely with tripartite partners, especially NTUC, to realise these shared goals, Mr Wong said.
In his speech, Mr Wong also discussed the role of small- and medium-sized enterprises (SMEs) in employing Singaporeans and anchoring economic activity.
He noted that in particular, the SME segments under greater pressure are retail as well as food and beverage.
While the government has, in the immediate term, provided corporate income tax (CIT) rebates, over the longer term, support must be sustainable and should not distort market incentives, he said.
Authorities cannot relax the dependency ratio ceiling (DRC) as doing so will encourage excessive reliance on foreign manpower and weaken the Singaporean core, said Mr Wong, adding that the government will consider calibrated ways to provide more flexibility.
“Ultimately, the sustainable path forward is productivity improvement and business transformation.”
While Singapore has achieved better than expected growth of 5 per cent last year, Singaporeans continue to feel the cost-of-living pressures, said Mr Wong.
“The data may show improvement, but lived experience and realities do matter,” he said. “So the question is this: what more must we do to ease cost pressures and ensure every Singaporean can continue to progress?”
He noted that incomes have risen faster than inflation over the past decades across the entire income distribution.
Looking at household expenditures, Mr Wong noted that spending has increased in dollar terms, but expenditure as a share of income has either remained stable or fallen across the income distribution.
“Singaporeans generally are spending less as a share of their incomes, even if their spending has gone up in dollar terms,” he said.
“In particular, the share of household income spent on essentials like food, public transport and education has declined across all income quintiles.”
He said that one exception is healthcare, with Singaporeans spending a larger share of their income on healthcare and health insurance.
This is a reflection of Singapore’s ageing population, where healthcare spending increases with age.
The government has taken steps to rein in private riders and other practices that drive up medical inflation, especially in the private sector, he said.
“We will continue to ensure that healthcare remains affordable in Singapore,” Mr Wong added.
“No Singaporean will be denied the healthcare they need because of an inability to pay. That is our assurance.”
Another cost concern stems from inflation of frequently-consumed services, especially food and beverages, said Mr Wong.
“Food consumption may form a smaller share of income, which I mentioned just now, but we experience the higher prices each time we order something or we dine out, and the psychological impact is immediate and visible,” he said.
Mr Wong also said that close attention is being paid to wealth inequality.
“We have begun publishing the data and will track this more systematically, but we are not starting from a weak base,” he said.
Through housing grants, home ownership and Central Provident Fund top ups, lower-income households are able to accumulate assets in Singapore, he said.
“Today, households in the lowest quintile have an average net wealth of nearly S$300,000 (US$237,700). That's a meaningful foundation,” he added.
Continue reading...
In his round-up speech after a three-day debate on Budget 2026, Mr Wong said that Singapore will exploit AI to grow the economy.
It will also ensure that growth translates to good jobs and better wages, said Mr Wong, who is also the finance minister.
“That's how we give every Singaporean confidence to progress in the future.”
In his Budget speech earlier this month, Mr Wong announced that he will chair a new National AI Council to drive Singapore’s AI agenda.
The council will oversee the development and execution of “AI missions” and will focus on four sectors: advanced manufacturing, connectivity, finance and healthcare.
“Every sector is different and how they use AI and the impact on workers in each sector will vary,” said Mr Wong on Thursday.
“And that is why we are coordinating all of these efforts through the National AI Council, aligning industry transformation and workforce upgrading to ensure that AI uplifts our workers.
“That is our assurance, and that's why our strategy going ahead is clear.”
Related:
INVESTING IN PEOPLE
Mr Wong also acknowledged concerns raised by various Members of Parliament (MPs) on the anxieties that workers and fresh graduates are feeling amid the AI revolution.
“These concerns are real and we must and we will take them seriously,” he said.
Historically, every major technological wave has displaced some jobs but also created new ones, he noted. In Singapore’s experience, AI can augment jobs and help workers achieve more, even as it automates certain tasks.
Mr Wong added that Singapore’s labour market remains resilient for now.
The proportion of permanent employees has risen to a record high of nearly 91 per cent, with gains across most sectors.
Vacancies continue to outnumber job seekers, and over 40 per cent of openings are entry-level professionals, managers, executives and technicians (PMETs) roles.
So far, the evidence does not point to widespread displacement, said the prime minister.
However, with emerging pressures, it is important to prepare for the future, he added.
“We cannot rely only on today’s data, we must prepare for tomorrow,” he said.
“And I mentioned earlier that the historical experience with major technological waves is that ultimately more jobs are created than lost. That has been so in the past, but there is no economic law that says this will always happen or that this will happen in the future.”
There are concerns that this time may be different because AI is more powerful, advancing faster, and affecting a wider range of jobs, said Mr Wong.
Risks include companies leaning too heavily on AI, with less worker training, and that entry-level jobs may be hollowed out, he pointed out.
“We are alert to these risks, and we will act early to prevent such outcomes from taking hold in Singapore. We will invest more deliberately and more systematically in our people,” said Mr Wong.
He agreed with labour chief Ng Chee Meng’s call to empower every worker to be AI-ready, to strengthen support and safeguards for workers, and to strengthen the labour movement's ability to protect and uplift PMEs.
The government will work closely with tripartite partners, especially NTUC, to realise these shared goals, Mr Wong said.
In his speech, Mr Wong also discussed the role of small- and medium-sized enterprises (SMEs) in employing Singaporeans and anchoring economic activity.
He noted that in particular, the SME segments under greater pressure are retail as well as food and beverage.
While the government has, in the immediate term, provided corporate income tax (CIT) rebates, over the longer term, support must be sustainable and should not distort market incentives, he said.
Authorities cannot relax the dependency ratio ceiling (DRC) as doing so will encourage excessive reliance on foreign manpower and weaken the Singaporean core, said Mr Wong, adding that the government will consider calibrated ways to provide more flexibility.
“Ultimately, the sustainable path forward is productivity improvement and business transformation.”
Related:
COST OF LIVING PRESSURES
While Singapore has achieved better than expected growth of 5 per cent last year, Singaporeans continue to feel the cost-of-living pressures, said Mr Wong.
“The data may show improvement, but lived experience and realities do matter,” he said. “So the question is this: what more must we do to ease cost pressures and ensure every Singaporean can continue to progress?”
He noted that incomes have risen faster than inflation over the past decades across the entire income distribution.
Looking at household expenditures, Mr Wong noted that spending has increased in dollar terms, but expenditure as a share of income has either remained stable or fallen across the income distribution.
“Singaporeans generally are spending less as a share of their incomes, even if their spending has gone up in dollar terms,” he said.
“In particular, the share of household income spent on essentials like food, public transport and education has declined across all income quintiles.”
He said that one exception is healthcare, with Singaporeans spending a larger share of their income on healthcare and health insurance.
This is a reflection of Singapore’s ageing population, where healthcare spending increases with age.
The government has taken steps to rein in private riders and other practices that drive up medical inflation, especially in the private sector, he said.
“We will continue to ensure that healthcare remains affordable in Singapore,” Mr Wong added.
“No Singaporean will be denied the healthcare they need because of an inability to pay. That is our assurance.”
Another cost concern stems from inflation of frequently-consumed services, especially food and beverages, said Mr Wong.
“Food consumption may form a smaller share of income, which I mentioned just now, but we experience the higher prices each time we order something or we dine out, and the psychological impact is immediate and visible,” he said.
Related:
Mr Wong also said that close attention is being paid to wealth inequality.
“We have begun publishing the data and will track this more systematically, but we are not starting from a weak base,” he said.
Through housing grants, home ownership and Central Provident Fund top ups, lower-income households are able to accumulate assets in Singapore, he said.
“Today, households in the lowest quintile have an average net wealth of nearly S$300,000 (US$237,700). That's a meaningful foundation,” he added.
Continue reading...