Mr Chairman,
The Government has committed a large amount of money to support industries in their AI transformation.
In this context, I am concerned about how today’s fresh graduates are already being impacted, and the long-term, compounding implications this has on our national talent pipeline. In a survey of 250 local employers, 80% acknowledged that AI has already reduced their entry-level hiring. As MPs from both sides of the aisle have spoken about this problem, I will not belabour the point further.
Today, I would like to provide a proposal which I hope the Government will consider.
From the Enterprise Innovation Scheme to the Productivity Solutions Grant—in exchange for the Government’s support, stronger guardrails need to be established to prevent this support from accelerating the displacement of entry-level roles.
Broadly, I suggest two conditions to be added for all AI-related grants and subsidy schemes:
First: at the minimum, companies should be required to submit a structured declaration, detailing how their AI transformation efforts are expected to impact HR decisions, particularly for entry-level roles. How many such roles will be eliminated or redesigned, and what career development support will be made available to affected employees?
This declaration will serve two purposes: to prompt companies to consider shaping their transformation efforts to protect their own talent pipeline, and provide the Government with important insights on how entry-level roles may be impacted qualitatively and quantitatively across industries.
Second: companies should be required to commit to a sustained level of entry-level roles, and ensure structured development opportunities for entry-level hires. To keep compliance manageable for SMEs, this second condition could be made mandatory only for companies above a particular threshold.
To operationalise this, the National AI Council could coordinate with relevant agencies and consult the industry. For example, MDDI could take the lead in verifying companies’ compliance with the conditions. In turn, only companies who received this verification may submit EIS claims related to AI expenditures.
Sir, I believe my suggestions are practicable and necessary to ensure that publicly funded support for AI transformation does not come at the cost of our national talent pipeline in the long-term.
Similar conditions are already in place for some subsidy schemes. The Productivity Solutions Grant already requires companies to submit a description of the overall impact of their proposed solution and specify the expected productivity gains before the grant application is reviewed and approved.
To conclude: the entry-level jobs of today shape the industry leaders of tomorrow. Let us ensure that our AI transformation amplifies, rather than erodes, the career opportunities that our young graduates have worked hard to earn.
Thank you, Sir.
References
1. https://www.channelnewsasia.com/today/big-read/ai-junior-entry-level-jobs-young-workers-5449836
2. https://sprs.parl.gov.sg/search/#/sprs3topic?reportid=written-answer-na-20342
3. https://www.enterprisesg.gov.sg/financial-support/productivity-solutions-grant
