MOM: AI is complementing jobs, not displacing labour in Singapore

SINGAPORE: Singapore’s early experience with artificial intelligence (AI) is steadier than alarming. Jobs aren’t disappearing, but work is changing.
A new report from the Ministry of Manpower (MOM), released on April 30, finds no sign of widespread job loss linked to AI. Instead, most firms using AI say their workers are getting more done, and roles are being adjusted rather than removed.
According to the report, based on a survey of 2,560 firms employing nearly 500,000 workers, about 70.7% of AI-using firms reported improved productivity. Only 6.2% reported reducing headcount tied to AI use.
Jobs are changing, not vanishing
The data points to a job change: Work is being redesigned, not erased.
About 18.9% of firms said they changed job scopes after adopting AI. Another 13.9% created new AI-linked roles, signalling demand for new skills rather than fewer workers.
Hiring has softened slightly in some areas, with around 8.5% of firms saying AI affected their hiring plans, but the overall direction is that AI is shaping how work is done, not whether it exists. In short, AI is complementing labour, not replacing it.
AI adoption is still uneven across Singapore
Despite the attention around AI, most firms have yet to use it. A striking 71.5% of companies reported no AI adoption at all. Among those that have started, only a small group has integrated it into core operations.
Larger firms are leading the way, with companies with over 500 employees showing adoption rates slightly above 76%, while smaller firms still lag far behind, with adoption below 24%.
Cost and capability remain the main barriers, with smaller firms citing high setup costs and a lack of skilled staff. Bigger firms face a different challenge: fitting AI into existing systems and managing data risks.
AI adoption is highest in communications, professional services, and finance sectors
Where you work now does matter, as AI adoption is highest in sectors already built around digital tools. These include information and communications, professional services, and finance.
Roles in these sectors often involve analysis, coding, or data work, as these tasks are easier to support with AI tools.
On the other end, sectors like retail and food and beverage are slower to adopt due to many of the tasks there involve physical service or direct customer interaction, which AI cannot easily replace.
Higher-skilled workers feel the change in work first
The report shows a general trend in who is most affected. Professionals engaged in analytical or cognitive work are more likely to notice changes in their daily tasks. AI is helping them with decision-making, data handling, and idea generation.
Workers in physical or routine roles, such as transport or production, face less direct impact for now. Where AI does enter the picture, it tends to boost output rather than remove the role altogether.
AI adoption remains limited
Singapore is usually seen as digitally advanced, yet AI adoption remains limited and uneven. The risk is a slow divide between firms that adapt and those that fall behind, even if they are not facing sudden job loss.
Smaller firms may struggle to keep pace, and workers who don’t pick up new skills may find themselves edged out over time. The work change, though gradual, is already underway.
AI will reward those who adopt it in their work early
The government is pushing support through training and tools. Firms can tap into programmes such as the Enterprise Workforce Transformation Package (EWTP). Workers are being nudged to assess their AI readiness and pick up new skills.
Access to AI tools is also being expanded through training initiatives. These suggest a focus on helping people work with AI rather than on stopping its use altogether.
Again, AI will not replace most workers, but will reward those who adapt to it early, so for firms, the task is to start small and build capability. For workers, the direction is to stay useful by learning how AI fits into their role.
Ignore AI, and the outcome will indeed feel sudden later. But if you keep pace, it becomes just another helpful tool rather than something to fear.
This article (MOM: AI is complementing jobs, not displacing labour in Singapore) first appeared on The Independent Singapore News.






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