Budget 2025 should boost AI adoption and older worker support, say panellists
More funding can help in the development of guidelines and standards for the use of artificial intelligence, among other things
FUNDING for new public and education programmes to help small businesses adopt artificial intelligence (AI) technologies safely, and extensions to existing schemes supporting older workers are some of the ways by which Budget 2025 can make an impact, said panellists at a discussion.
“We’re seeing a lot more emphasis on responsible AI, and that’s an area (where) Singapore can play a leading role,” noted Sam Liew, president of the Singapore Computer Society.
He said that Budget 2025 could help support the effort to develop guidelines and standards for the use of AI. He also suggested that funding could be allocated to give a leg up to small and medium-sized enterprises (SMEs) in adopting AI tools safely, potentially through public education campaigns.
The pre-Budget discussion, held on Tuesday (Jan 14) at One Farrer Hotel, was hosted by the Institute of Singapore Chartered Accountants (Isca). It featured 13 panellists and was attended by 120 participants.
The panel was co-chaired by Members of Parliament Liang Eng Hwa and Don Wee. Liang chairs the Government Parliamentary Committee for Finance, Trade and Industry, while Wee is an Isca council member.
Prime Minister and Finance Minister Lawrence Wong will deliver his Budget speech on Feb 18.
Panellist Lennon Tan, president of the Singapore Manufacturing Federation, shared an anecdote about a company that implemented an innovative approach to adopting AI – by using AI adoption rates as a key metric in employee performance reviews.
Such a human resource (HR) practice could enable companies to be “fast and aggressive” adopters of AI, suggested Tan. “What they hope to do is for their 100-man-strong company to eventually – in five years’ time – have the productivity of 1,000 workers.”
Tan urged the government to “really look at” such creative methods to encourage SMEs to improve their AI adoption and skills, and stressed the need to go beyond funding subscriptions for AI tools for limited periods.
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“(Otherwise), I think this kind of support is definitely not going to (take) us to where we want to be,” he added.
Supporting older workers
Singapore’s government has already been “very, very supportive” of older workers through measures such as raising the retirement and re-employment ages, and the recent passage of the landmark Workplace Fairness Bill, noted panellist Lee Su Shyan, associate news editor at The Business Times.
However, Budget 2025 could offer additional financial incentives to encourage companies to retain older workers. For instance, it would be more “effective and efficient” for firms to retain these employees, compared with hiring and training new ones, she said.
She also suggested that funding could be allocated to HR practitioners to design programmes that help older workers – particularly those who have been out of the workforce for some time – reintegrate into their roles.
DBS economist Chua Han Teng proposed extending existing schemes such as the Senior Employment Credit and the Part-time Re-employment Grant.
He pointed out that the largest increase in labour force participation over the past decade came from the 65 to 69 and 70 to 74 age groups, citing Ministry of Manpower statistics.
The way OCBC chief economist Selena Ling sees it, however, is that a mindset shift is also necessary among employers when addressing older workers.
“When we use our language, and we talk about terms like ‘silver tsunami’ and ‘ageing population’ – everything (can be) in very negative terms,” explained Ling, who was representing the Institute of Valuers and Appraisers, Singapore as its council member at the discussion.
“I think as we age, we have to reframe the definition of elderly, and it shouldn’t (be seen) as a problem,” she added.
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