ANALYSIS: HUMAN RESOURCES
Three-fourths of Singaporeans believe that their jobs will be highly impacted by new or changing technology in the next five years.
Anxious times ahead for Singapore’s hard-hit workforce as automation kicks in
New research from PayPal shows Singapore workers are increasingly impacted by fundamental changes in the economy, whilst those that aren’t concerned probably should be.
T
he future of work in Singapore will see fundamental changes wrought by rapid adoption of technological changes such as automation, machine learning and artificial intelligence; the rise of the gig economy and independent work; socio-demographic changes such as the ageing population; as well as the increasing attractiveness of entrepreneurship as a career path. These changes require corresponding shifts in other sectors. Singapore’s greatest resource is its workers and the Singapore government has invested heavily in policies to help prepare them for the changing skill requirements of a new world of work. At the same time, sectors like education and health are also responding to the shifts in the labour market. This research paper is the first to consider the implications of the future of work on the financial 52
SINGAPORE BUSINESS REVIEW | JUNE 2020
sector and on the financial health of Singaporeans. This report is based on a survey that was administered to 1,000 working age Singaporeans in 2019, an extensive literature review, more than 100 expert interviews with financial services and future of work specialists, and proprietary data and insights from PayPal. The major findings of the Financial Health for the Future of Work in Singapore report include: • Singaporeans will face greater job churn in response to automation than any other major economy in Southeast Asia • Singaporean workers are increasingly taking up income earning opportunities offered by the online platform economy • Young people in Singapore are voicing increasing concerns regarding their long-term financial health and
The Singapore government has invested heavily in policies to prepare workers for the changing skill requirements of a new world of work.
ability to retire in comfort. • Women in Singapore may need more support to be able to invest time and effort in skills upgrading • Entrepreneurship is fundamental to the Singapore economy, but more can be done to support the enterprises that are financially distressed. Automation concerns and preparation Automation, machine learning, and artificial intelligence are reshaping nearly every aspect of our lives and societies, especially the workforce. For Singapore, whose only natural resource, as Dr. Annie Koh of the Singapore Management University says, is “human resource,” taking advantage of and building resiliency in the face of these changes is an existential concern. A 2018 study found that 20.6% of Singapore’s full-time equivalent
