Singapore will act against firms that accept AI grants while treating workers unfairly: Jasmin Lau

Singapore is closely monitoring companies that receive public grants for artificial intelligence development to ensure they also treat their workers fairly. Minister of State for Digital Development and Information Jasmin Lau warned that businesses repeatedly accepting AI grants while engaging in unfair labor practices could face government intervention.

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When we spend public resources to help companies grow, then we want to have a bit more control over what the companies do.

"When we spend public resources to help companies grow, then we want to have a bit more control over what the companies do," Ms. Lau, who co-chairs the Economic Strategy Review (ESR) committee on technology and innovation, told CNA. She emphasized that the government is looking for patterns where companies consistently receive grants but then dismiss workers without fair treatment.

Ms. Lau's remarks came after the release of recommendations from the ESR committees, which involved extensive consultations with businesses, unions, and workers. The recommendations aim to foster long-term economic growth and create quality jobs amidst rapid technological changes. A key focus is positioning Singapore as a prime location for AI innovation while ensuring workers are equipped with AI literacy and supported through career transitions.

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What we are looking for are patterns - if a company is constantly applying for and given grants, but workers are being removed without fair treatment. Then, when we start to see these patterns, we must act, because these are public funds that we are stewards of.

While acknowledging that companies will make commercial decisions, including cost-cutting, Ms. Lau cautioned against overly short-term thinking. She suggested that neglecting employees could hinder future growth and scalability, as companies might struggle to find staff with the necessary business understanding and cultural fit.

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The short-term desire to cut costs may end up affecting them later on when their company needs to think about further growth.

Addressing young Singaporeans, Ms. Lau advised them to focus on developing capabilities that AI cannot easily replicate, rather than solely pursuing traditionally stable professions. She noted that while the exact jobs of the future remain uncertain, the essential capabilities required in the coming years are clearer.

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At this point, nobody can tell fully which jobs would be around in the next five, 10 years, but we are still very clear what capabilities are still needed in five to 10 years.