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CNA
23 minutes ago
- CNA
Singapore firms trail region in plans for automation, AI; expect limited job impact: Study
SINGAPORE: Companies in Singapore are less ambitious than firms in other Southeast Asian countries when it comes to future automation plans, a new survey has found. Their approach appears to be "incremental" and "pragmatic", which may be because of concerns over job losses and displacement, according to the States, Markets and Regional Integration report, released on Tuesday (Jul 22). The report also found that the majority of Singapore companies polled see automation leading to either an increase in headcount or no change. In comparison, businesses in the Philippines, for instance, expect more job displacement due to automation. Automation can refer to the use of artificial intelligence, industrial robots, production and machinery automation, general software and information technology or other tools. The report sought to understand how businesses in seven Southeast Asian countries view four areas of economic transformation: automation and digitalisation, sustainability practices, regulation and governance, and cooperation through regional institutions. Cambodia, Indonesia, Laos, Malaysia, the Philippines, Singapore and Vietnam were included in this study. In Singapore, the survey was led by National University of Singapore (NUS) in collaboration with the Institute of Policy Studies (IPS), and involved trade associations and chambers including the Singapore Business Federation (SBF) and the American Chamber of Commerce in Singapore. The report was released a week before an upcoming IPS-SBF conference titled "Global-City Singapore: SG60 and Beyond". Prime Minister Lawrence Wong and Deputy Prime Minister Gan Kim Yong are expected to speak at the conference, which will be held at the Sands Expo and Convention Centre on Jul 29. Researchers received 209 responses from companies in Singapore, but only 101 were valid – the others did not meet the threshold of completing at least 25 per cent of the questions. The survey was conducted in 2023 and 2024. WHERE THINGS STAND Automation is widely adopted in Singapore, but the study found that implementation of automation occurs at a lower level. About 13.2 per cent of companies reported that they do not use any automation in their business, and nearly 70 per cent use automation in only up to 25 per cent of their business processes. Around 14 per cent of Singapore respondents have automated between 26 and 50 per cent of their tasks, while only 2.63 per cent use automation in more than half of their work. None of the Singapore businesses surveyed reported that they are fully automated. 'While no firms in the Singapore sample report full automation, most firms have adopted at least some form of automation, an indication of the country's universal exposure to digitalisation, even among smaller firms,' the report said. In terms of advanced automation, 21 per cent of Singapore respondents said they had adopted the use of industrial robots in their processes, second only to Cambodia at 21.9 per cent. As for artificial intelligence and machine learning, Malaysia topped the rankings at 24 per cent, followed by Singapore at 19 per cent. 'These trends suggest an openness to advanced technologies, though full transformation remains gradual,' the report said. Looking ahead to the next three years, Singapore-based companies have expressed 'strong intentions' to deepen automation, but at a slower pace than respondents in neighbouring countries. For example, 39.6 per cent of Cambodian firms, 33 per cent of Malaysian businesses and 31 per cent of Indonesian companies plan to automate more than 50 per cent of their tasks in the next three years. By contrast, only 5.4 per cent of Singapore firms intend for more than half of their tasks to be automated in the same period. Singapore firms' 'steady, incremental approach' reflects their measured pace of technological adoption, which is shaped by sectoral demands and workforce considerations, researchers said. They noted that investment in digital technologies is widespread in Singapore, but focuses on operational efficiency and incremental increases in automation, instead of transformational change and large-scale technological overhauls. 'This indicates a measured and pragmatic approach to integrating new technologies, possibly reflecting concerns over potential job losses and displacement as well as the need to move forward in tandem with retraining or upskilling to complement new automation processes,' the report said. IMPACT ON EMPLOYMENT A majority of the Singapore companies polled also expect automation to have a limited impact on employment compared with firms in some Southeast Asian countries. Around 40 per cent of Singapore respondents expect no change in headcount due to increased automation, while 27.3 per cent predict some increase in employment. Another 28.6 per cent of respondents see the number of employees being somewhat reduced, and 1.3 per cent of those polled expect head counts to be reduced significantly. 'This relatively balanced outlook suggests that automation in Singapore is viewed as a tool for augmenting – not replacing – human capital. It also underscores a confidence in the adaptability of the workforce,' the report said. Among the countries studied, the Philippines stood out as a majority of respondents – 68.3 per cent – expect that automation will reduce employment, indicating stronger concerns over labour displacement, the report said. Vietnamese firms also hold a similar 'balanced view' to Singapore, with 34.4 per cent of respondents expecting no change and 24.2 per cent expecting some increase in employment. A larger portion of Malaysia and Indonesia firms expect more hiring due to automation – 47.4 per cent of firms in Indonesia and 36.3 per cent of businesses in Malaysia anticipate that they will hire more staff as they implement their automation plans. OTHER FINDINGS The study also found that businesses in Singapore have a 'relatively strong preference' for working with business associations and trade associations and chambers (TACs) when it comes to navigating issues. Over 86 per cent of respondents allocate more than 25 per cent of their effort toward this type of engagement, the report said. 'This may suggest that a strong majority of firms in Singapore are confident in cooperating with business associations and TACs.' They also maintain a 'notable level of independent activity', with 26 per cent of Singapore-based firms allocating between 81 per cent and 100 per cent of their effort to working alone. By contrast, 64.3 per cent of Singapore businesses do not put much effort into working with other firms. Dr Faizal Bin Yahya, senior research fellow at lPS, said: 'In this context, rather than just 'hunting in a pack' with other firms for overseas opportunities, firms would need the involvement of the TACs or work directly with TACs in order to do so.' On the issue of sustainability, companies in Singapore said regulatory mandates and customer expectations are more effective in motivating change, rather than pressure from civil society. If the government introduced new strict environmental laws and penalties, 17.6 per cent of respondents said they would be willing to invest more than 15 per cent of their annual operating costs to improve their environmental practices. If major clients pressure the company to reduce environmental harm, 26.7 per cent of respondents said they would invest more than 10 per cent of their annual operating costs. 'While firms recognise the value of environmental responsibility, investments remain modest in general or reputational scenarios,' the report said. 'Willingness to invest increases significantly when customer expectations are introduced.'
Independent Singapore
27 minutes ago
- Independent Singapore
Singapore central bank roped in JP Morgan, two others to manage stock market boost
SINGAPORE: Singapore is taking a new tack to revive its stock market, announcing a strategic S$5 billion initiative to attract investors and boost market participation. The Monetary Authority of Singapore (MAS) has chosen three asset managers: Fullerton Fund Management, JP Morgan Asset Management, and Avanda Investment Management. These firms will lead an effort to refresh the local equity landscape. Fullerton Fund Management is part of Seviora, a multi-asset management company owned by Temasek Holdings, Singapore's state investment fund. Incorporated in 2003, it has offices in Shanghai, Jakarta, and Brunei. JP Morgan Asset Management is headquartered in New York City and has offices in Tokyo, Hong Kong, and Singapore. Currently, it manages US$162 billion (S$218.7 billion) in the Asia Pacific. Avanda Investment Management was founded in 2014 in Singapore by former GIC executives Ng Kok Song, Quah Wee Ghee, and Sung Cheng Chih. Temasek backs it significantly—it invested US$3 billion in Avanda's Global Multi-Asset Fund. It has also secured funds from sovereign fund GIC and the Singapore Labour Foundation. Recent reports indicate it manages US$10 billion as of March 2025. They will receive S$1.1 billion to develop investment strategies aimed at increasing market liquidity and drawing in a wider range of investors. The programme targets especially small and mid-sized companies that have struggled to gain investor attention. In an interaction with the media, Chee Hong Tat, the Minister for National Development and Second Minister for Finance, commented: 'We want to see more participation from retail investors. This isn't about short-term trading, but about helping people build long-term investment portfolios.' This move comes amid growing concerns about Singapore's stock market, which has diminished compared to regional competitors. Over 100 global and local asset managers expressed interest in the programme, demonstrating strong enthusiasm within the industry. Key features of the programme include: Dedicated funds focusing on Singapore-listed stocks Daily investment liquidity Chances for retail and institutional investors Strategies emphasising smaller, emerging companies In addition to the investment programme, MAS is launching a S$50 million research support scheme. This funding will: Increase grants for equity research Support digital research distribution Develop research on private companies with strong Singapore ties See also How much could the CEO of Temasek Holdings be earning? The goal goes beyond just injecting money into the market. Minister Chee highlighted the aim of creating a more robust, transparent, and accessible investment environment. Fullerton Fund Management plans to launch a dedicated Singapore equities unit trust that covers stocks from various market capitalisations. Avanda Investment Management aims to create a 'Singapore Discovery Fund' focused on small and mid-cap stocks with growth potential. JP Morgan Asset Management has not disclosed any details, but according to its ASEAN equities team head, Pauline Ng, it will leverage its investment capabilities and local expertise to unlock opportunities in Singapore's equities market. This initiative adopts a deliberate approach to market development. By selecting specific asset managers and providing targeted support, Singapore aims to transform its equity market from a quiet exchange into a more vibrant investment hub. Future plans include selecting additional asset managers in late 2025 and 2026 after this first phase. To the investing public, the establishment is making it clear that it is creating more ways to access stock market wealth. See also Temasek Holdings and GIC on worldwide buying spree The programme shows MAS's commitment to keeping the financial centre competitive by addressing market challenges and creating new paths for investment growth.
Independent Singapore
27 minutes ago
- Independent Singapore
'Still scraping by at 30': Singaporeans open up about living paycheck to paycheck
SINGAPORE: 'Every pay after offsetting important bills makes me feel like I'm back to square one.' That's how one Reddit user summed up their 20s — a decade often associated with self-discovery and financial independence. For some Singaporeans nearing 30, it's more about survival. In a candid post on the subreddit r/askSingapore, one user asked others in the same boat: 'Singaporean adults with barely any savings — how are we coping?' Their story was all too familiar. After switching jobs twice in three years and having pay raise requests rejected, they now have less than S$10,000 in savings. They've cut out all non-essentials — Netflix, gym, even Disney+. A new laptop for school wiped out what was left. To make matters worse, they now have to foot the household WiFi bill too. 'I literally have to take action because waiting will do no good. Depressing… but I'm glad I'm not alone.' And they aren't. Scrimping just to stay afloat Others chimed in — not just with sympathy, but hard-won survival tips. From meal-prepping frozen chicken and hunting for CDC voucher deals, to giving up gym memberships in favour of long walks. Singaporeans shared how they stretched every dollar: 'Raid the fridge. Go for JB runs. Intermittent fasting — but at your own risk, and if all else fails, lose face, and ask for help.' One user, self-described as 'thick-skinned,' said it bluntly: 'You shouldn't have to live like this. You need to find a way out, not just to survive, but to build towards something better.' But what if surviving is the first step? Not all advice came from peers. One older Redditor — a man nearing 50 — offered a different kind of perspective: time. 'I'm probably too old to truly understand what you younger folks are going through… but I'll just share a little about my own journey.' He recounted a path marked by financial instability: kicked out of JC, scraping by on a S$1,400 salary, and turning 30 with barely S$5,000 in savings. He got married with almost nothing in the bank — his wife had to pay for their wedding rings. Still, he stuck with it. One job led to another. Eventually, years later, he was able to consider early retirement — something his younger self never thought possible. 'If you're struggling now, don't be too hard on yourself. Sometimes all you can do is survive one day at a time, and that's perfectly okay. Jiayou.' His message hit home with many — struggle is not a measure of failure. It's part of a larger story still unfolding. When the cost of living is your main character Singapore may boast one of the world's highest gross domestic products (GDPs) per capita, but for many on the ground, that prosperity feels increasingly out of reach. Eighty-five per cent of tenants say rent is unaffordable , while commercial retailers have reported rent hikes of up to 57% . At the same time, youth unemployment climbed to 12.9% in 2024 , and a preliminary Ministry of Manpower (MOM) study shows that just 51.9% of fresh graduates were employed as of June — a modest rise from 47.9% the year before. In such an environment, even the pursuit of basic stability can feel like an uphill battle. And in a society that normalises working 44.6 hours a week — among the highest globally — burnout is not an exception. It's the backdrop. Only one in four people in Singapore gets more than seven hours of sleep a night , and just 17% report sleeping through the night — a statistic the Lee Kuan Yew School of Public Policy has termed a public health crisis . Can Singaporeans still dream? Many of today's 20-somethings are juggling gig work, rising debts, and mental health struggles — all while being told to just keep trying. Still, there's a quiet defiance in their voices — not of resignation, but of constantly tested resilience. They're meal-prepping and picking up odd jobs off Telegram. They're helping their families while trying to help themselves.
