He Ting Ru warns Singapore highly exposed to AI-driven job disruption risks

SINGAPORE: Workers’ Party MP He Ting Ru warned in Parliament on 6 May that Singapore is among the economies most vulnerable to artificial intelligence disruption, citing International Monetary Fund estimates that about 77 per cent of the local workforce is highly exposed.

Speaking during a debate on a motion on AI and employment, she said the country’s services-driven economic structure means the transition is likely to be sharper than in many other advanced economies.

“Because we are a highly skilled, services-oriented hub, estimates from the IMF indicate that approximately 77 per cent of our local workforce is highly exposed to AI disruption,” she said.

She cautioned that without timely intervention, the impact of AI could deepen inequality and disproportionately affect vulnerable groups.

Shifts reshaping the labour market

He outlined three key ways AI is already transforming Singapore’s labour market.

First, many existing jobs are being reconfigured from within. Routine tasks such as drafting, summarising, extracting data and standardised analysis are increasingly being handled by AI tools.

Professionals across management, healthcare and legal sectors are already using such systems to streamline work processes, allowing greater focus on complex problem-solving and human interaction.

Second, some roles are likely to be displaced, particularly those described as high exposure and low complementarity positions. These are jobs where AI can perform most core tasks independently.

Roles in administrative support, customer service and routine business processing are among those most at risk.

“Employers can consolidate positions, slow hiring or redesign jobs so fewer people are expected to do more,” she said.

She pointed to developments in the United Kingdom, where some financial institutions have reportedly reviewed graduate hiring in response to AI automation capabilities.

Third, AI is also creating new opportunities, particularly in areas such as AI engineering, data science and product development.

However, these roles require specialised technical skills alongside complementary human capabilities, meaning access to such opportunities may not be evenly distributed.

Uneven impact across professions

He said the effects of AI are already being felt most strongly among white-collar and entry-level roles.

This marks a shift from earlier technological disruptions, which primarily affected blue-collar work.

“If we do not address this, the benefits of AI will end up with only a small group of workers,” she warned.

Jobs built around routine processes, such as call centre agents and junior administrative roles, are particularly exposed, as AI can perform many of their core functions.

Employers may respond by consolidating roles or reducing hiring, potentially limiting opportunities for workforce entry and progression.

Research suggests that while productivity gains from AI could be significant, the benefits may accrue disproportionately to those best positioned to leverage the technology.

Impact on vulnerable groups

He highlighted that lower-income workers, women, persons with disabilities and young graduates face heightened risks from AI disruption.

Lower-wage roles are more likely to involve routine tasks, making them more susceptible to automation.

AI systems trained on historical data may also reinforce existing biases, particularly in recruitment, potentially disadvantaging persons with disabilities.

Women face what she described as a “double disadvantage”, being underrepresented in AI-intensive roles while also being more exposed to automation risks.

A 2024 International Monetary Fund report found that women accounted for 29 per cent of entry-level STEM roles, 24.4 per cent of managerial positions and 12.12 per cent of senior leadership roles.

At the same time, International Labour Organization data released in March 2026 showed that occupations dominated by women are nearly twice as likely to be exposed to generative AI risks.

“This creates a double disadvantage. Female workers are less likely to gain from AI’s benefits while remaining more vulnerable to displacement,” she said.

Young graduates are also facing increasing uncertainty.

With more than 20 per cent unable to secure full-time permanent roles in 2025, and 60 per cent reporting greater difficulty in job searches, concerns over employment prospects are growing.

She described the situation as a “catch-22 dilemma”, where entry-level roles are shrinking even as employers continue to demand experience.

Broader economic and social pressures

He noted that AI disruption is occurring alongside rising living costs, including higher property prices and essential expenses.

She raised concerns that AI-driven growth could further concentrate wealth and intensify financial pressures on households.

Beyond economic impacts, she pointed to potential social consequences, including effects on marriage and parenthood decisions.

Job insecurity and uncertainty, she said, may contribute to delays in family formation, potentially affecting Singapore’s already low fertility rate.

Call for targeted policies and better data

He called for more targeted policy measures to support workers affected by AI disruption.

These include easing financial pressures on displaced workers and ensuring equitable access to reskilling and training programmes.

She also stressed the need for more detailed and publicly available data to assess the real impact of AI on the labour market.

Current indicators, such as the number of trainees and job placements, focus on outputs rather than long-term outcomes or distributional effects.

“We need data on wage trajectories, job quality and retention in AI roles two to three years after programme completion,” she said.

She proposed expanding data collection to include participants’ previous occupations, income levels, gender, age and disability status.

Such information would help determine whether vulnerable groups are accessing opportunities or being left behind.

She also called for improved frameworks to track job displacement, wage changes and employment quality across different demographic groups.

Encouraging entrepreneurship and resilience

He suggested that entrepreneurship could provide an alternative pathway for young people navigating a changing labour market.

AI has reduced barriers to starting businesses by enabling automation of tasks such as marketing, data analysis and administrative processes.

However, she questioned whether existing support schemes provide sufficient long-term support, noting that many remain tied to short-term programme milestones.

She called for stronger informal mentorship networks and reduced administrative burdens to better support entrepreneurs.

Cultural attitudes towards failure also need to shift, she said, noting that fear of failure may discourage risk-taking and innovation.

Global and regional considerations

He emphasised that Singapore is well positioned to play a role in shaping global AI governance.

World Bank data for 2025 indicates that high-income countries account for the vast majority of AI models, startups and funding despite representing a small share of the global population.

She pointed to regional efforts to develop AI tools tailored to Southeast Asian languages as part of a broader push for more inclusive technological development.

Singapore’s position in the global AI ecosystem, she said, could be leveraged to create new opportunities for workers while contributing to more equitable access to AI technologies.