Singapore is placing a strategic bet on artificial intelligence to deliver a long-term lift in labour productivity and economic growth.

One report forecasts AI could unlock more than SG$53 billion (approx. US$41 billion) in value through productivity gains alone over the next 60 years, positioning the city-state as a front-runner in AI-powered growth across Asia.

By automating repetitive tasks and freeing up valuable time for higher-order work, AI adoption could effectively hand each Singaporean worker an extra 21 working days a year.

The Economic Opportunity Report suggests that this shift will allow employees to focus on creativity, problem-solving, and more strategic endeavours – areas that drive business value in the modern economy.

A rising tide across sectors

Several high-impact sectors stand to benefit significantly from AI-led transformation. In health care, for example, AI is expected to slash drug discovery timelines by about 40%, accelerating the delivery of treatments to patients. In cybersecurity – a pressing issue for a nation grappling with one of the highest per capita losses from cybercrime – AI could cut costs by up to 60% by 2035, thanks to real-time threat detection and streamlined response capabilities.

Ben King, Managing Director at Google Singapore, noted:

Singapore is leading the charge in the AI era through its embrace of the technology. This momentum sets the stage for greater growth.”

He added that AI presents significant opportunities for our nation to innovate and drive outsized impact, especially in critical areas like health care and cybersecurity.

Read: PwC unveils AI hub in Singapore

Demographic headwinds, AI tailwinds

As the population ages and the labour force shrinks, Singapore faces a mounting demographic challenge. The proportion of citizens aged over 65 is expected to triple in the coming decades. In this context, AI becomes more than just a tool – it’s a strategic buffer against workforce shortages.

By automating routine roles, AI could help maintain productivity levels and even spark wage growth exceeding 8%. According to the report, nearly 76% of local workers could see their capabilities enhanced by AI, not replaced.

Rather than sounding alarm bells about job losses, the narrative is shifting towards augmentation – where technology supports, rather than supplants, human workers.

Skills-ready but leadership lagging

Singapore's workforce is digitally savvy and well-positioned to embrace AI. Over half (58%) of employees already report using AI tools in their day-to-day tasks to boost efficiency. What’s more, a striking 82% express interest in upskilling through AI-related training.

Yet, only 27% of workers feel their leaders are actively encouraging AI adoption, revealing a disconnect between boardroom intentions and ground-level execution.

For businesses aiming to ride the AI wave, cultivating a culture that champions innovation from the top down will be key. Without it, productivity gains risk becoming a pipedream rather than a performance driver.

Health care and cybersecurity in the spotlight

Singaporeans are warming up to AI’s growing role in health care. About 68% of people surveyed said they are comfortable with AI-supported medical diagnoses, provided that human doctors remain in the loop. From earlier disease detection using wearables to reducing pressure on healthcare systems, AI’s value proposition is becoming harder to ignore.

In cybersecurity, the stakes are just as high. With Singaporeans losing the most money per capita to cybercrime worldwide, deploying AI to counteract threats such as phishing and malware is not just prudent; it’s imperative. AI tools can monitor systems in real-time, spotting red flags that may escape human oversight.

Google’s role in AI skilling and innovation

To support Singapore’s ambitions, Google is investing in a broad array of skilling initiatives. Skills Ignition SG, for instance, embeds AI training into its year-long traineeship programme. Meanwhile, Google Career Essentials offers self-paced online courses to help individuals keep pace with rapid technological change.

Start-ups are also getting a leg up through programmes like the Google Cloud Generative AI initiative and the Google for Startups Accelerator: AI First Singapore. These initiatives provide funding, mentorship and infrastructure support to ventures such as Transparently.ai and TDCX. In research, DeepMind’s AlphaFold is already playing a role in studying diseases such as Parkinson’s.

Read: Upskilling with AI: The best AI courses for free

A broader definition of productivity

At the Asia Tech x Singapore conference on 27 May, President Tharman Shanmugaratnam framed AI not only as a means to an economic end, but as a tool to redefine what productivity means for society.

Speaking to an audience of tech leaders and policymakers at The Fullerton Bay Hotel, he argued that AI could help displaced workers transition into new roles, not “just into flipping burgers” but into meaningful jobs in other sectors.

Tharman said: “It’s productivity for the workforce at large ... to maximise our potential to create good jobs for everyone who wishes to be in the workforce.”

He underscored three global areas where AI could deliver positive change: productivity, health care, and climate action. For health care, AI can improve early disease detection and strengthen healthcare delivery systems. On climate, AI holds promise in boosting energy efficiency, reducing waste, and helping societies make more informed sustainability decisions.

Innovation with guardrails

As Singapore doubles down on AI, regulation must keep pace. Tharman called for tighter oversight to ensure AI’s application in health care maintains public trust. He cited Singapore’s ongoing work to introduce regulatory frameworks that require developers to gather input from both clinicians and patients. This co-creation approach ensures new tools are safe, effective and accepted by those who rely on them.

In short, Singapore’s AI journey is no longer a speculative bet but a carefully plotted route towards a more productive, inclusive and technologically advanced economy.

Like any voyage worth taking, however, it requires not just bold ambition, but skilful navigation, collaborative leadership and a willingness to invest in people – not just platforms.