Singapore's Cautious Approach to Automation

A recent survey reveals startling insights into Singaporean businesses and their cautious stance on automation compared to their Southeast Asian counterparts. Many companies in Singapore are taking an "incremental" and "pragmatic" approach, primarily motivated by fears of job losses and displacement, as highlighted in the States, Markets and Regional Integration report published on July 22.

Comparative Job Market Expectations

Interestingly, the survey indicates that most Singaporean firms anticipate either an increase in hiring or no significant change in employment due to automation. In stark contrast, firms from the Philippines, for example, expect a more pronounced impact on job displacement.

Insight into Automation Practices

The study defines automation broadly, encompassing artificial intelligence, industrial robots, and software tools. It surveyed 209 companies across Singapore, with only 101 providing fully valid responses. Notably, even though automation is widely acknowledged, its implementation remains on the low end.

Around 70% of businesses reported using automation in only up to 25% of their operations, while about 13% still do not utilize any form of automation.

Unpacking the Employment Impact

The survey’s findings show a relatively optimistic outlook regarding employment. Approximately 40% of Singaporean companies predict that automation will have no effect on headcount, while 27.3% anticipate hiring more staff. In comparison, 68.3% of respondents from the Philippines foresee job reductions due to automation.

Regional Trends in Automation

Vietnamese companies exhibit a balanced outlook similar to Singapore, whereas businesses in Malaysia and Indonesia are more optimistic, with substantial portions expecting to increase hiring as they embrace automation.

Collaboration Over Isolation

The study also reveals that Singaporean firms prefer working closely with trade associations to navigate challenges, with over 86% investing significant effort into these collaborations. However, a notable percentage of firms are also engaging independently, indicating a mix of collaborative and individual strategies.

Sustainability Practices Are Key

On sustainability, companies indicated that regulatory pressures and customer demands are more effective incentives for change than societal pressures, with many expressing readiness to invest more in sustainable practices if prompted by government regulations or major clients.

Conclusion: A Measured Path Forward

While Singapore's firms may be adopting automation at a slower pace, their cautious approach reflects a deeper understanding of the need for employee adaptability and retraining alongside technological advances. The emphasis on sustainability and collaboration shows promise for a balanced and responsible transformation ahead.