Wednesday, May 6, 2026

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

SINGAPORE – 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 guardrails 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 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).

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 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 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 hiring slowdown 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, ramping up social skills training, among others.

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 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.

Ms Chong 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 : https://www.straitstimes.com/business/from-ai-equity-fund-to-worker-safeguards-mps-suggest-ways-to-support-ai-transition

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