ST GALLEN, Switzerland – People who have embraced artificial intelligence (AI) and technology will displace those who have not, said Manpower Minister Tan See Leng to an international audience on May 2. This is why Singapore is investing $1 billion over the next five years into a national AI strategy to develop the industry and equip people with the needed skills.

“Our people are our only, singular resource. And if you look at every single level of our workforce, we try to make sure that there’s a level playing field, we provide an equal level of opportunity for them,” Dr Tan said at a panel discussion on the economic impact of demographic shifts.

“Of course, no one can guarantee that everyone can come up with an equal outcome, but at least for starters, we level the playing field for everyone.”

Dr Tan was speaking at the 53rd St Gallen Symposium in Switzerland, alongside fellow panellists Laura Jorde, who is managing director of vocational education and training at the German Chamber of Industry and Commerce, and Peter Voser, who chairs Swiss engineering group ABB.

The symposium is an annual student-run conference taking place in May at the University of St Gallen. It hosts inter-generational debates on economic, political and social developments.

Dr Tan, who is also Second Minister for Trade and Industry, said the Singapore Government is working with companies to set up AI centres of excellence to equip people with skills in the area. Institutes of higher learning, such as universities, polytechnics and the Institute of Technical Education, also have courses to ensure students are adept in AI.

Dr Tan said these moves are part of wider efforts to overcome Singapore’s manpower constraints by investing significantly in its people and welcoming foreign talent. For instance, Singapore subsidises early childhood education through to postgraduate studies and adult learning, and launched the Overseas Networks and Expertise Pass to attract top talent, he said.

The panellists also spoke about what companies can do in the face of constant tech developments.

Mr Voser, who is also chairman of Singapore port operator PSA, said companies should invest in training employees to use AI at the same time they are developing their technologies. “If you give money into the R&D (research and development) to develop the project, look at your HR (human resources) side exactly the same way – you give R&D money to develop your people.”

With an ageing population in Europe, around 50 million people will retire over the next decade, he said. But he added that this is a problem automation can tackle, if skills training for the workforce can keep pace with it.

Mr Voser added that the need to “get that equation right” has become more urgent with tech disruptions like ChatGPT, which has swept the world after it was launched just 18 months ago. He compared this with traditional product cycles of five to 10 years, from when a product is introduced into the market until it is removed from shelves.

“Therefore, companies need to adapt their system in a much faster way, re-train people, reskill them at the same time they develop the technology,” he said.

“Automation and robotics will not replace people. There will just be different ones with different skills,” he added.

He gave the example of how PSA is building the fully automated Tuas Port, which is due to be completed in 2040, and has re-trained workers to work in the control room instead of in the port itself.

Mr Voser also cited research showing that countries with the highest robotic density have the lowest unemployment rates. “Therefore, it’s a myth that one does actually exclude the other. If you get these two major assets of a company right, which is really human resources and technology. I think that’s a growth opportunity which no company should miss.”

On how to achieve this, he said: “It needs leadership to get all of this done. And if the leader doesn’t walk the talk and choose the right leadership, unfortunately, this will not happen.”

One audience member, Mr Praghav Arora, questioned the need for continual innovation. “As technology cycles get faster, the workforce needs to be trained, and I understand that,” said the management trainee in pharmaceutical systems. “But as an individual, we need to be continuously trained all our lives.

“Will there be a net positive impact of innovation for individuals in the world? Are we just heading blindly towards a race where our neighbour innovates and so do we? What’s the end goal of innovation?”

Dr Tan responded that innovating will benefit future generations. “You will make it that much easier for (the people who come after you) to... build even better, so that the next generation and the successive generations that come after us will benefit.”