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Singapore's rules on AI will neither be too tight nor let the industry 'run wild': DPM Gan at US forum

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SINGAPORE: Singapore is seeking the “best of both worlds” in AI governance, with regulations that are neither too tight nor so loose that industry players “run wild”, said Deputy Prime Minister Gan Kim Yong on Thursday (Apr 16).

He was speaking at a fireside chat at the Semafor World Economy conference in Washington DC, during a six-day visit to the United States, in which Semafor senior editor Clay Chandler asked Mr Gan about Singapore's approach to AI governance.

Mr Chandler noted that in the United States, the prevailing approach appears to be that AI “shouldn’t be supervised at all, and there are no regulations whatsoever”. In contrast, Europe has taken a more cautious stance, focusing on privacy and human rights, while China adopts an “industrial policy kind of focus” in regulating AI.

Mr Gan said that a key lesson from past crises such as COVID-19, the Ukraine-Russia war and the ongoing tensions in the Middle East is that trust is “very important”.

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“Data is also fundamentally built on trust. So I think it's important to understand that Singapore is a trusted partner in many of these, and that's our key strength,” he said.

To preserve that trust, Singapore must put in place sufficient governance and guidelines for AI, including frameworks for AI models, he added. At the same time, Singapore adopts a sandbox approach that allows innovation and development to take place.

“We don't have tight regulations, but we watch them and monitor so (as to) make sure that they don't run wild,” said Mr Gan. “And once some of these practices are well established, then we begin to develop regulations and rules so that we are able to govern the future development and application of these solutions.”

This calibrated approach ensures that there is enough governance to preserve trust, while still allowing room for innovation.

“If you are too tight, I think you just can't move. If you are too loose, then they will run wild. So I think it's a very careful, calibrated balance,” he said, adding that this “balance” is dynamic and must evolve alongside technological developments.

“You need to be prepared to be nimble to adjust these regulations and rules as you move along, and you have to keep your eye on the ball to make sure that the development is according to the guidelines and governance you've put in place,” he said.

FOCUSING ON SOLUTIONS, INFRASTRUCTURE​


Prime Minister Lawrence Wong announced during the February Budget that he will chair a new National AI Council to coordinate and drive Singapore’s AI strategy.

It was also announced in January that Singapore will invest more than S$1 billion (US$786 million) in its National AI Research and Development Plan.

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Asked whether it makes sense for Singapore to invest in its own AI platforms, Mr Gan said the national strategy will not focus “too much” on developing frontier models.

“Because you take a lot of resources and a lot of commitment and a lot of investments,” said Mr Gan.

“Our focus really is in solutions, focusing on deployment of these solutions,” he said. “And it's not just about applying AI solutions, it's also about managing the workforce. You need to train the people so that they are ready for the new applications that are AI driven.”

He added that the transition to AI literacy is “non-trivial” and must be managed carefully to avoid displacing workers while creating new opportunities.

Mr Chandler also pointed out that Singapore has limited land and energy capacity for data centres, and asked where infrastructure would be located to “fuel” an AI-driven economy.

Mr Gan said that while data centres are critical, Singapore is taking a “very selective” approach before approving new data centres in Singapore due to constraints in space and alternative energy sources.

“So the only way that we can deal with it is to work with our neighbours,” said Mr Gan, citing collaborations with Johor in Malaysia and Batam in Indonesia.

“They are close to Singapore, so they are connected to Singapore,” he said. “It’s a win-win outcome for all three of us.”

At the same time, Singapore is gradually allowing more data centres to be developed, but only for “very critical operations and functions”.

“We don't really want them to store all your birthday photos, and so I think that you can store (them) somewhere else, that's not so critical. But for banking data, transaction data, business data, they’re very critical for us,” he said.

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MIDDLE EAST CONFLICT​


Beyond AI and digital infrastructure, Mr Gan also weighed in on the geopolitical and economic tremors of the ongoing conflict in the Middle East, which he said “nobody benefits from”.

He noted that Singapore’s economy grew 4.6 per cent in the first quarter, based on preliminary estimates, which is “below our original projection”.

“I think for the rest of the year we can see continued drag on the economy because of these uncertainties going forward,” he said.

Despite the rising fuel costs, development plans for Changi Airport, including Terminal 5, will continue. “We have to address an immediate problem, but we mustn't lose sight of the longer term strategies,” he said.

Earlier in the fireside chat, Mr Chandler also asked about Singapore's position on the US' decision to impose a blockade on the Strait of Hormuz.

Responding to this, Mr Gan reiterated Foreign Minister Vivian Balakrishnan’s recent parliamentary answer that Singapore will not negotiate for safe passage through the strait.

He added that the right of transit passage as enshrined by the United Nations Convention on Law of the Sea is "a matter of principle".

“Therefore, it is in principle that we are not able to support any negotiation, because this right is not negotiable,” he said. “Singapore always works on principles, based on the interests of Singapore, and therefore we are consistent in our position.”

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