Singapore PM outlines economic challenges, AI impact, and continued support for workers at annual labour event.
Singapore Prime Minister Lawrence Wong delivered his address at the May Day Rally 2026, focusing on global economic conditions, workforce transformation, and government support measures.
Speaking to union members, employers, and workers, Wong said the global environment remains uncertain, with ongoing geopolitical tensions affecting supply chains, energy prices, and inflation. He noted that these developments are likely to slow growth and increase cost pressures in Singapore.
He highlighted that Singapore is better positioned to manage these challenges due to earlier investments in economic resilience, including energy infrastructure and financial reserves. At the same time, the government has introduced support measures such as utility rebates, cash payouts, and earlier disbursement of vouchers to help households and businesses cope with rising costs.
Wong also addressed the impact of Artificial Intelligence on jobs and industries. He said AI is expected to change the nature of work, with some roles evolving or being replaced, while new opportunities are created. He emphasised that the government’s approach is to support workers through these changes by strengthening training and job matching systems.
Measures include the formation of a new Skills and Workforce Development Agency and enhancements to SkillsFuture programmes, aimed at helping workers upgrade their skills and adapt to new technologies. Workers will also have access to AI tools and training resources as part of these efforts.
The Prime Minister highlighted examples of companies adopting technology to improve productivity and working conditions, including the use of automation and AI in sectors such as healthcare and public transport. These initiatives were supported through collaboration between unions, employers, and the government.
He reiterated the importance of Singapore’s tripartite model, where all three parties work together to manage change and support workers. This approach, he said, has helped the country navigate past economic transitions and will remain important in the future.
Wong concluded by stating that while challenges are expected to continue, the government will monitor the situation closely and introduce additional support if needed. He emphasised that workers will remain a key focus as Singapore adapts to economic and technological changes.
Source: PMO
