AI, ageing population and global risks shape Singapore’s workforce strategy

Tan See Leng, Singapore’s Minister for Manpower, emphasised resilience, inclusivity and future readiness in his latest address, as the country contends with a rapidly shifting global and domestic environment.

Speaking at the 2026 May Day observance, Dr Tan paid tribute to workers across industries, describing them as the “hands and hearts” driving Singapore’s progress. His remarks come amid heightened geopolitical tensions, including the ongoing Middle East conflict, alongside rising energy costs and broader economic uncertainty impacting businesses worldwide.

Domestically, Singapore is entering a new demographic phase as it becomes a “super-aged” society this year, even as accelerating advancements in artificial intelligence (AI) continue to reshape the nature of work.

Tripartite model at the core

Dr Tan highlighted Singapore’s long-standing tripartite partnership between government, employers, and unions as a key strength in navigating these challenges. He acknowledged the role of the National Trades Union Congress (NTUC) and the Singapore National Employers Federation (SNEF) in sustaining economic stability and worker progress.

“When unions, employers and the Government pull in the same direction, our small nation can travel remarkably far,” he said, underscoring the importance of collective action.

Wage growth and worker support

The Minister pointed to steady income growth, noting that median wages rose by 1.6% annually over the past five years, while lower-wage workers saw faster gains of 2.8%, supported by initiatives such as the Progressive Wage Model.

Government measures announced in the latest budget include enhancements to the Progressive Wage Credit Scheme and expanded support for upskilling through Workfare programmes. 

New initiatives like graduate traineeships aim to help young workers transition into the workforce, while a newly established Skills and Workforce Development Agency will support mid-career professionals in adapting to labour market shifts.

Support for senior workers has also been strengthened through age-friendly workplace initiatives and schemes such as the Senior Employment Credit and Part-Time Re-employment Grant.

Strengthening retirement and business growth

On retirement adequacy, Dr Tan outlined enhancements to Singapore’s CPF system and targeted schemes such as the Majulah Package and Silver Support Scheme, aimed at improving financial security for seniors.

At the same time, the government is working to ensure businesses remain competitive. Through initiatives like the Enterprise Workforce Transformation Package, companies are being supported to redesign jobs, invest in talent, and build more resilient workplaces.

Safer, fairer workplaces

Singapore’s workplace safety record continues to improve, with a fatal injury rate of 0.96 per 100,000 workers in 2025, among the lowest globally. 

Authorities are now working with industry stakeholders to enhance protections for platform workers and launch new alliances focused on workplace safety and health.

The Minister also highlighted progress on workplace fairness, following the passage of the Workplace Fairness Act last year, aimed at strengthening protections against discrimination.

Looking ahead, Dr Tan identified three key priorities: preparing for AI-driven transformation, updating employment standards, and ensuring retirement adequacy.

To boost AI readiness, the Ministry of Manpower will collaborate with partners under the Tripartite Jobs Council to equip workers and businesses for an increasingly digital economy.

At the same time, ongoing reviews of employment laws aim to balance stronger worker protections with greater flexibility in work arrangements.

Concluding his message, Dr Tan called for unity and shared responsibility in navigating the road ahead. “These challenges call for a forward-looking tripartite approach, principled in purpose and pragmatic in action,” he said.

Reaffirming Singapore’s commitment to inclusive growth, he added that the nation’s strength lies in its ability to move forward together, ensuring that no worker is left behind. “Together, we will navigate these times with confidence and hope.”