Parliament supports motion on ‘no jobless growth’ amid AI disruption

The Government will study a proposal to raise the income threshold of a scheme that provides temporary financial and job search support to retrenched workers.

“We have recognised for some time that we must strengthen our support mechanisms as the pace of change accelerates,” said Minister for Manpower Tan See Leng in Parliament on May 6, as he affirmed labour chief Ng Chee Meng’s parliamentary motion calling for no “jobless growth” amid AI-driven disruption.

The SkillsFuture Jobseeker Support scheme, launched in 2025, currently provides up to $6,000 over six months to retrenched residents who were earning $5,000 or less per month.

On May 5, Mr Ng called on Parliament to anchor AI-enabled growth in fairness and opportunity for all, and support workers and businesses to seize new opportunities.

He noted that many professionals, managers and executives (PMEs) earning above this level may face the same risks of displacement and require structured transition support. He called for coverage levels of the Jobseeker Support scheme to be adjusted closer to PME median gross income levels.

Responding to the call, Dr Tan said: “We will look at how the scheme can be improved and we will study this carefully.”

The motion was debated for seven hours by 24 MPs, Nominated MPs and political office-holders. It was unanimously supported by Parliament.

In his 30-minute speech, Dr Tan also acknowledged Mr Ng’s calls to expand the Company Training Committee (CTC) initiative, where NTUC partners with companies to help workers upskill and progress. More than 3,800 CTCs have been formed since 2019, benefiting over 300,000 workers.

Dr Tan also agreed with Mr Ng’s ambitions to elevate the CTC initiative to a tripartite level by working with the Singapore National Employers Federation (SNEF) as part of the new Tripartite Jobs Council.

“We look forward to working with tripartite partners to jointly explore ways to make this a reality,” said Dr Tan.

The formation of the Skills and Workforce Development Agency (SWDA), which brings together training and employment under one roof, will also help to ensure that the Government’s assessment of the labour market continues to be grounded and current, he said.

“This will be an important part of how we stay ahead of disruption and support workers affected by AI-driven changes,” he added.

This includes platform drivers facing the deployment of autonomous vehicles, a group highlighted by NTUC assistant secretary-general Yeo Wan Ling during the debate on the motion.

The Ministry of Manpower (MOM), SWDA, the Ministry of Transport, and tripartite partners are working closely to strengthen the transition pathway for drivers ahead of the deployment of these vehicles, said Dr Tan.

He also acknowledged the labour chief’s call for earlier notification of retrenchments to the Government, which is being reviewed under the Employment Act.

Currently, companies with 10 or more employees are required to submit a mandatory retrenchment notification to MOM within five working days after informing workers that they are being retrenched.

In 2025, more than three-quarters of retrenchment notifications were submitted at least seven days before an employee’s last working day.

“We, on our part, would like to see notification to the Government happening before or by the last day of work of affected workers as far as possible,” said Dr Tan. “This would also enable timelier employment facilitation support to workers.”

Ultimately, AI-enabled growth will have to be anchored in fairness, resilience and shared opportunity, said Dr Tan, who agreed with Mr Saktiandi Supaat (Bishan-Toa Payoh GRC) that AI adoption is uneven across sectors, worker segments, and businesses of different sizes.

“Without deliberate effort, the gains from AI could flow to some while others are left behind,” said Dr Tan, who cited China’s recent court ruling that made it illegal for firms to replace employees with AI purely to cut costs.

During the debate, Non-Constituency MP Andre Low proposed payouts for displaced workers through redundancy insurance that applies to all without an income ceiling and tapering mechanism.

Mr Gerald Giam (Aljunied GRC) from the Workers’ Party also proposed that every Singaporean adult citizen be given $500 through a “national AI equity fund”. This will address the risk of the AI transition creating a two-speed economy, where the owners of capital and tech-integrated firms leave behind those stuck in the “slow lane of traditional employment”, he said.

The fund’s other pillar will be a mastery fund, which will be an employer-led, on-the-job training model that moves training out of the classroom and into every enterprise.

Dr Tan rejected their suggestions, saying that they are premised on Singaporeans being “essentially passive passengers in the AI transition”.

“Redistribution alone is not sufficient if workers are excluded from the economy,” said Dr Tan, adding that Singapore’s tradition has been to invest in people, rather than compensate them for their circumstances. He added that a better use of surplus generated by AI adoption is to fund upskilling initiatives that amplify Singaporeans’ value.

Mr Low and Mr Giam disagreed with Dr Tan’s framing of their suggestions.

Mr Kenneth Tiong (Aljunied GRC) also suggested that the free access to premium AI tools be made available to all Singaporeans without tying it to courses or union memberships – referencing the six-month free access to premium AI tools for those who take up selected SkillsFuture courses, and similar subsidies for AI tools for NTUC members.

Dr Tan responded that the Government had considered this carefully, but noted that not all Singaporeans require frontier, agent-grade tools.

“By tying subsidies to training, we are better able to target those who are more serious about levelling up their use of AI, and we help them make optimal and responsible use of such powerful tools,” he said.

Though there is growing anxiety that AI will erode workers’ skills and take over jobs, Dr Tan said early signs allow for cautious optimism. He cited recent global surveys showing that two in three companies that made AI-driven cuts earlier are already rehiring.

“Why is that so? Because they found that AI could handle the predictable and the routine, but customers still wanted human judgment, empathy and genuine connection that AI could not provide,” he said.

The parliamentary motion comes days after MOM, NTUC and SNEF announced plans to set up the Tripartite Jobs Council, which will double down on plans to upskill workers and help companies redesign jobs.

The council will build on existing programmes such as the $400 million Enterprise Workforce Transformation Package (EWTP), which includes the SkillsFuture Workforce Development Grant (Job Redesign+). The grant provides funds of up to $150,000 of each company’s job redesign projects, including consultancy fees and worker reskilling costs.

Later in 2026, eligible businesses will also receive $10,000 under the redesigned SkillsFuture Enterprise Credit, which can be used to offset costs incurred from workforce transformation programmes such as those under the EWTP.

The council will also pay special attention to students and younger workers who are anxious about AI’s impact on entry-level jobs, said Dr Tan, noting that all institutes of higher learning will offer selected AI-related courses at significant discounts for their alumni for one year, from the second half of 2026.

He also agreed with WP MP Jamus Lim’s (Sengkang GRC) call to expand youth apprenticeship pathways, and added that structured learning must be complemented with real workplace experience.

Dr Tan said AI has become a “tug of war” in many countries, where workers and businesses are on opposing sides and progress is contested. Singapore does not have to go down that road, he added.

“We will not leave the future of work and the livelihoods of Singaporeans to chance,” said Dr Tan. “We will shape a transformation that is inclusive, forward-thinking, and anchored in real action.”

From AI equity fund to worker safeguards, MPs suggest ways to support AI transition

MPs from across the political spectrum backed a parliamentary motion calling for a transition into an artificial intelligence-driven economy with no jobless growth.

While they broadly agreed that Singapore cannot resist AI adoption, many said strong guard rails must be in place to prevent deepening inequality.

The motion, filed by National Trades Union Congress (NTUC) secretary-general Ng Chee Meng (Jalan Kayu) on May 5, recognises the “transformative power” of AI and other new technologies in driving Singapore’s next phase of economic development.

It also emphasises that AI-enabled growth must be anchored in “fairness, resilience and opportunity”, supporting workers and businesses in seizing new opportunities and ensuring that economic progress remains inclusive.

During the parliamentary debate on the motion on May 6, MPs repeatedly warned that AI-driven productivity gains could disproportionately flow to bigger firms and highly skilled workers if left unchecked.

Nominated MP Mark Lee said AI adoption is not a “plug-and-play”. It requires integration into workflows, redesign of processes, and alignment with business strategy.

This is where many firms, especially small and medium-sized enterprises, face challenges. “If we do not address this, capability will concentrate among larger firms and among more skilled workers,” he said.

Mr Lee is a co-proposer of the motion, alongside labour MP Yeo Wan Ling (Punggol GRC) and Mr Saktiandi Supaat (Bishan-Toa Payoh GRC).

Workers’ Party MP He Ting Ru (Sengkang GRC) cautioned that productivity and wealth gains from AI may be unevenly distributed, with those best placed to harness the technology likely to benefit the most.

In Singapore, lower-wage and routine-intensive roles are more likely to be held by vulnerable workers, who likely face greater displacement risk from automation, she said.

“The extent to which spillover effects from AI-driven growth would benefit lower-income workers remains uncertain. We need Singapore-specific research modelling these distributional impacts, and to make this data publicly available to inform more targeted policy responses,” she added.

There were also calls to level the playing field by improving access to AI tools and redistributing AI gains across the society.

Mr Saktiandi said Singapore must ensure sustained and affordable access to AI tools, especially for lower-income workers, freelancers and small businesses.

“If AI is to be a force for inclusive growth, access cannot be a privilege,” he said, adding that access to AI may become as fundamental as access to the internet.

“We must ensure no Singaporean is priced out of that future,” he said.

WP MP Gerald Giam (Aljunied GRC) proposed setting up a “national AI equity fund”, where an annual “social dividend” of $500 can be transferred from enterprises that benefit immensely from AI to every adult citizen, with payouts increasing over time.

“This is modest by design – it is not meant to replace income, but to provide a tangible signal that every Singaporean has ownership in our shared future,” he said.

He added that the redistribution will also reduce the risk of a two-speed economy, where AI winners could pull further ahead while others remain stuck in the “slow lane of traditional employment”.

Some MPs also raised concerns over how AI has affected hiring decisions, while others stressed that companies should not simply automate jobs away without proper transition support for workers.

Mr Vikram Nair (Sembawang GRC) called for greater transparency when AI is used in employment decisions such as hiring and performance evaluation.

He also suggested clearer rules to ensure human oversight and to give workers the right to know when such tools are being used.

Nominated MP Sanjeev Tiwari said that when a company deploys AI that eliminates roles, it should be required to have a transition plan, which can take the form of redeployment offers, funded retraining and phased timelines for workers.

The union leader added that companies should work with the unions through company training committees or tripartite frameworks to manage the transition together.

“We should make this a baseline and not the exception. The social contract between employer and employee must evolve alongside technology,” said Mr Tiwari.

Ms Yeo, who is an assistant secretary-general at NTUC, said the labour movement could serve as the “linkway for the AI transition”, matching displaced workers to redesigned roles while advocating fair treatment and holding all parties to account.

She also urged the Government to allow time for job redesign. “I look to the Government to provide practical facilitation, frameworks and funding that make job redesign achievable, not just aspirational.” 

Some MPs noted that AI has already affected hiring patterns, with entry-level roles most affected.

WP MP Jamus Lim (Sengkang GRC) said the slowdown in hiring of new workers is already evident, and even likely to accelerate.

As AI tools are increasingly capable of handling routine tasks, many firms see junior workers as replaceable, which creates a “chicken-and-egg problem”, he said.

“If we do not absorb new workers into our corporations, we surely cannot expect them to gain the necessary experience and job-specific skills that would make them valuable as mid-career professionals.”

He proposed expanding internship and apprenticeship programmes for fresh graduates, strengthening employment pathways for trainees, and ramping up social skills training, among other moves.

Ms He also said AI has introduced “new uncertainty” for young graduates, warning that the erosion of entry-level jobs has created a “Catch-22 dilemma” where companies continue hiring for experienced roles, while graduates have fewer opportunities to gain experience as jobs are absorbed by AI.

One solution could be to better encourage and support entrepreneurship among the youth, she said.

“This approach builds on an already open door: AI has already greatly reduced barriers to starting a business by being deployed to build websites, analyse data, run marketing, and even automate back-office tasks.”

Some MPs also argued that AI should improve workers’ quality of life rather than simply intensifying workloads.

Non-Constituency MP Eileen Chong said that as AI generates productivity gains, Singapore must ensure workers share in the benefits through “time regained”, and not just higher output, adding that this is something the market will not answer on its own.

She urged the Government to begin by giving “legislative teeth” to flexible work arrangements.

“As AI makes companies more productive, workers should have a meaningful and enforceable claim on the time that the AI frees up,” she said.

“Time to rest and to pursue the kind of human connection AI cannot replicate and that our fertility rate is telling us we are running short of.”

Drawing from his experience working across advanced manufacturing facilities in other countries, Mr Sharael Taha (Pasir Ris-Changi GRC) said the labour movements elsewhere often focus on protecting existing jobs, even when technological change is already reshaping entire industries.

Singapore’s tripartite approach is different, he said. The focus is not simply on job protection, but on keeping workers relevant, employable and ready to take on better opportunities as the economy evolves.

Mr Ng capped off the debate on his motion after 24 MPs, NMPs and political office-holders aired their views.

He said the motion sent a clear signal that Singapore’s Parliament stands with all workers and that no one should have to navigate the shift alone.

The labour chief added that AI transition is not labour versus capital, workers against employers, or one group advancing at the expense of the other.

“We have forged a firm commitment – to keep our workers and enterprises at the heart of national efforts to seize new opportunities brought about by AI.”

Source: The Straits Times © SPH Media Limited. Permission required for reproduction.

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