SINGAPORE: Calls for “locals first” policies surfaced online after Deputy Prime Minister Gan Kim Yong warned that economic growth may not generate jobs anymore.

Speaking at a mid-term update on Friday (Jan 30), Mr Gan, who chairs the Economy Strategy Review (ESR) exercise, said that achieving economic growth is going to be more challenging than ever before due to artificial intelligence (AI), geopolitics, and competition.

“The environment is very different today. It’s a new world, it’s a changed world,” he said, adding, “We can no longer assume that economic growth will generate jobs.”

“Therefore, we need to pay particular attention to job creation and making sure that jobs created are good jobs for Singaporeans,” he added.

According to Mr Gan, the Singapore government must “double down” its efforts in providing and supporting Singaporeans in their “upgrading journey” so that they will be AI-ready, job-ready, and future-ready.

Talk of job creation, however, quickly sparked concerns among Singaporeans online, with some saying the warning rang hollow against the pressures they are already facing.

While acknowledging the global headwinds cited by Mr Gan, one netizen said, “but locals are struggling now,” pointing to the rising cost-of-living, housing pressures and job competition, calling for the government to “put locals first” by stepping up the implementation of “real local-first policies”.

Others questioned, “How much can you really upskill?” noting that it’s not just about credentials, but also companies scaling down headcount because of higher labour costs for employing locals.

“I’m not sure what the solution could really be… increasing the Singapore-foreign talent quota or reducing overall immigration, but the precarious balance is very much tipping towards collapse,” the commenter wrote.

Another, however, asked why Singaporeans are always told to “prepare” for such problems, but it’s never acknowledged that maybe foreigners are displacing locals.

A netizen, seemingly resigned, added, “It sounds like nothing guarantees anything.”

7 recommendations from ESR committees to secure Singapore’s economic growth and Singaporeans’ jobs

There were seven recommendations made by five ESR committees in the midterm update to secure Singapore’s economic growth and create good jobs for Singaporeans, according to the media fact sheet released by the Ministry of Digital Development and Information (MDDI).

This includes:

Extending Singapore’s lead and establishing global leadership in key growth sectors, including those in manufacturing, such as in the fields of semiconductors, healthcare, speciality chemicals, and aerospace
Pursuing emerging opportunities such as quantum, decarbonisation, and space technologies that can drive breakthroughs across Singapore’s economy.
Establishing Singapore as an AI leader with an AI-empowered economy
Strengthening the city-state’s connectivity and linkages to global markets and more aggressively supporting firms to expand globally.
Broadening the range of good jobs in sectors that may be more resilient to global shifts and offer opportunities for quality employment.
Making lifelong learning a practical reality through empowering Singapore workers to continuously upskill and reskill.
Enabling businesses to proactively navigate transitions by providing them practical support.

To view the complete proposed recommendations by the ESR committees, click here. /TISG

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