Singapore offers drivers up to S$1,600 in incentives to adapt to autonomous vehicle transition

Singapore is introducing a comprehensive transition package to support taxi and private-hire drivers as autonomous vehicles (AVs) become more prevalent. The initiative, announced by Senior Minister of State for Transport Sun Xueling, includes career conversion programs and financial incentives to help drivers adapt to the evolving landscape of the transport industry.

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We recognise that autonomy and AI, if not managed well, can bring disruption to existing jobs, industries and business models.

The package, developed collaboratively by the Ministry of Transport, Ministry of Manpower, National Trades Union Congress, Grab Singapore, and ComfortDelGro, aims to provide practical and accessible support. Recognizing that career transitions can be challenging, especially with the opportunity cost of taking time off for training, the government has designed the support to meet drivers' needs effectively.

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The government recognises that career transitions can be challenging, particularly with the opportunity costs of stepping away from driving to attend training.

A key component is a new career conversion program focused on "AV specialists." This program will equip drivers with the necessary technical and operational skills for emerging roles within the AV sector, such as safety operators, remote operators, and fleet management. The training will offer up to 90 percent salary support and will be administered by the Skills and Workforce Development Agency in partnership with industry players.

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The package has been designed to offer drivers practical, accessible support that meets them where they are.

Additionally, drivers interested in public transport can access a new pathway to become bus drivers. Both the AV specialist program and the public transport pathway are set to launch in the third quarter of this year. A new training incentive scheme will also pilot from January next year, offering eligible drivers S$20 per hour for short-form courses, capped at 80 hours, totaling up to S$1,600 per driver. This incentive is intended to help defray costs like vehicle rentals while drivers pursue further training.

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This training incentive amount is significantly higher than any other training allowances currently offered, as we understand that drivers have additional expenditure like car rentals to manage.