Singapore needs to 'think harder' on ways to integrate AI into work: PM Wong
To this, Mr Wong said Singapore is well positioned to do so "company-by-company" given its compact size, adding that the country should also "not just rush headlong" into AI and think hard on how to redesign jobs and retrain workers at the same time.
He was speaking during a dialogue at an Institute of Policy Studies (IPS) and Singapore Business Federation (SBF) conference titled "Global-City Singapore: SG60 and Beyond".
The dialogue was moderated by IPS director Janadas Devan and covered a wide range of topics including US trade tariffs, Singapore's social compact and inequality in Southeast Asia.
In response to a question from Ambassador-at-large Tommy Koh about how prepared Singapore is to harness the benefits of the technology, Mr Wong said there is a lot of potential to be unlocked when it comes to AI.
"We will have to think harder about how we can help every company, big and small, especially our smaller enterprises, make full use of AI."
That will involve integrating it into processes, transforming businesses and industries, and elevating productivity in a more significant way.
While AI is relatively accessible, most people still do not make use of its full potential, Mr Wong said. 'Most of us use AI the way we use Google. That's not exactly the best way to use AI.'
Mr Wong said he recently spoke with a chief executive officer who set aside some time with his management team to think about how AI can transform their company.
The team realised there were 'tremendous advantages' that they had not thought about before.
'That kind of a transformation – if we can make it happen, company by company – can yield significant advantages for us.
'If there is any country that can do that, it is us, because we are small, we are compact, and we can do this, company by company.'
A pre-conference survey by IPS found that c ompanies in Singapore are less ambitious than firms in other Southeast Asian countries when it comes to future automation plans.
Most of the Singapore companies polled in the survey also expect automation to have a limited impact on employment compared with firms in some Southeast Asian countries.
Mr Wong said that there are rewards for countries that are technology pioneers and are on the cutting edge.
'But in fact, the big advantage of technology is when there is broad-based adoption, when countries really, truly harness technology across the entire economy,' he said. 'That's when you reap the real benefits.'
AI'S IMPACT ON JOBS
While adopting AI, however, Singapore will also need to think 'equally hard' about doing so in a way that creates jobs for locals.
History suggests that jobs will disappear and evolve because of technology, but the newly created jobs are usually better and higher paying.
But there are concerns that AI will be different because it can do so many things that humans can.
'People are worried, people are wondering, and there are good reasons to be concerned,' said Mr Wong.
Singapore has no choice when it comes to adopting technology, but should try to do so in a 'meaningful and deliberate manner' that creates jobs.
'It's up to us,' he said. 'And again, we can do it in Singapore because we have the ability as a compact system.'
The government has a good relationship with employers and unions, and can discuss how to redesign jobs and retrain workers.
'That's what we must do in Singapore, not just rush headlong into AI,' he said.
'Embrace it, adopt it, but always make sure that the technological changes that we harness, the power of technology, benefits workers not replaces them, and always ensures that workers will thrive in this new environment.'
GLOBAL CITY AMID GEOPOLITICAL TENSIONS
Mr Wong also responded to a question from Mr Janadas about how Singapore is preparing to face global challenges such as trade tariffs and an uncertain economic outlook.
Beyond the immediate issues, however, Singapore's government and society need to think about how to prepare for a very different environment.
'We will need to update and refresh our economic strategies for a changed world,' he said.
The Singapore Economic Resilience Taskforce is thinking about how best to do this, and will be making some announcements in due course,' Mr Wong said.
The taskforce was formed in April to help businesses and workers deal with the effects of the US tariffs. Deputy Prime Minister Gan Kim Yong, who heads the task force, will be speaking at the same conference later on Tuesday.
Even in a fragmented world, there will be a 'global network of cosmopolitan cities' that stand out.
'We want to be one of them – a shining node where the human spirit thrives, where people want to be here to do business and to make things happen,' he said, when asked what Singapore's place is in a changing world.
Singapore does not have to copy others, but should have confidence to chart a path.
'We will never be like New York or Paris, and we don't have to be. Here, we are cosmopolitan, but we are Asian, we are multicultural,' he said.
He acknowledged that some will say Singapore is boring, and there is some truth to that even as the country tries to be more exciting and have more lifestyle offerings.
'But at the same time, we are stable, we are predictable, we are reliable, and we are trusted,' he said. 'And these are intangible assets that others would die to have.'
Singapore should embrace its strengths and competitive advantage, build on them and add value to the world.
'We can make it happen. We already are, in many ways, successful, because of our track record, because of our reputation, and we can build on these strong foundations to do even better.'
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