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

SINGAPORE - 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.

“The Government cannot protect every job, but will certainly do our best to support and protect every worker,” said Dr Tan, who added that as work processes change due to AI, some jobs may inevitably get replaced.

“Going through transition can be challenging, but I assure all of our workers that you will not walk alone.”

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.”