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News Wire / economy

AI Adoption Remains Low In Singapore

CNA938 Singapore Singapore 12d12d Impact 5

The Ministry of Manpower reported that the Singapore labor market remained broadly stable in March 2026 compared to December 2025. A Ministry of Manpower survey conducted between January and March found that 71.5% of firms in Singapore are not using AI technology. The survey polled more than 2,500 firms employing approximately 500,000 workers. Singapore currently trails other economies including China, Denmark, Hong Kong, Finland, and Sweden in AI adoption. Among the firms that do use AI, adoption levels remain uneven. This follows an earlier warning from the Prime Minister regarding stagflation risks if slowing growth is coupled with low employment figures. Singapore is seeing early signs of cautious demand in certain sectors. Demand declined from 54.6% in February 2026 to 44.6% in March 2026, representing a 10 percentage point drop.

The Ministry of Manpower reported that the Singapore labor market remained broadly stable in March 2026 compared to December 2025. A Ministry of Manpower survey conducted between January and March found that 71.5% of firms in Singapore are not using AI technology. The survey polled more than 2,500 firms employing approximately 500,000 workers. Singapore currently trails other economies including China, Denmark, Hong Kong, Finland, and Sweden in AI adoption. Among the firms that do use AI, adoption levels remain uneven. This follows an earlier warning from the Prime Minister regarding stagflation risks if slowing growth is coupled with low employment figures. Singapore is seeing early signs of cautious demand in certain sectors. Demand declined from 54.6% in February 2026 to 44.6% in March 2026, representing a 10 percentage point drop. The decline is attributed to increased global uncertainty resulting from the Gulf War. Firms are reportedly becoming more cautious with their hiring decisions amid geopolitical uncertainty. The survey included nearly 500,000 workers and indicated that AI adoption is uneven, with larger companies utilizing the technology more widely than smaller ones. The survey found no indication of widespread job displacement due to the technology.

Topics

labor market unemployment retrenchment

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Sources · 7 independent

CNA938 Singapore

“MOM says the labor market edged up in March 2026, but remained broadly stable when compared to December last year.”

CNA938 Singapore

“Retrenchments stood at 3,700 comparable to the 3,690 in the previous quarter. Looking ahead, MOM says the labor market should stay tight, although hiring and wage expectations for the next three months fell amid geopolitical uncertainty.”

CNA938 Singapore

“first quarter of 2026, 902, and first quarter of 2025, 5000. Yeah, so, yeah, I would say employment is still growing”

CNA938 Singapore

“Conducted between January and March, the MOM survey polled more than 2,500 firms employing close to 500,000 workers. AI adoption remains low with 71.5% of firms not using the technology.”

CNA938 Singapore

“AI adoption remains low with 71.5% of firms not using the technology. Singapore trails behind other economies such as China, Denmark, Hong Kong, Finland and Sweden.”

CNA938 Singapore

“In the acute phase, we're seeing that Singapore's labor market still being called resilient, and this is despite growth slowing.”

CNA938 Singapore

“declining from 54.6% in February 2026 to 44.6% in March 2026. That's a 10 percentage point decline. So we are indeed seeing early signs of cautious demand”

CNA938 Singapore

“I would describe the labour market as a cautious one. I think firms are starting to become cautious with their hiring decisions.”

CNA 938 Singapore

“I would describe the labour market as a cautious one. I think firms are starting to become cautious with their hiring decisions.”

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