In 2025, the job market in Singapore is set to experience significant shifts due to advancements in technology and evolving industry demands. With roles evolving rapidly, companies must adapt to keep pace.
Historically, changes in technology and demand have created and eliminated jobs, says Carl Benedikt Frey, a professor at the Oxford Internet Institute. In Singapore, as in other parts of the world, new consumer desires have led to the emergence of roles in tech and biotech, while innovations have driven the rise of jobs in these sectors.
A recent report by McKinsey highlighted that between 2019 and 2022, there were 8.6 million occupational shifts globally, a 50% increase over the previous three years. This trend is expected to continue, with another 12 million shifts projected by 2030 due to increased healthcare demand and digitization. In Singapore, this aligns with government initiatives to boost the digital economy and healthcare sector.
Technology and Role Redundancy
While new technologies fuel job growth, they also render certain roles obsolete. The World Economic Forum’s Future of Jobs Report predicts that by 2027, roles in bookkeeping, secretarial work, and administration may decline significantly. This trend is echoed in Singapore, where AI and automation are reshaping industries.
A Goldman Sachs report suggests that up to 300 million jobs worldwide could be affected by AI advancements. In Singapore, the government has been proactive in addressing these challenges through upskilling programs and initiatives like SkillsFuture, aiming to prepare the workforce for AI-driven changes.
Task-Based Approach to Roles
As entire occupations may not become obsolete overnight, companies should focus on tasks rather than jobs. The McKinsey report notes that up to 30% of current work hours in the U.S. could be automated by 2030, a trend also relevant in Singapore.
Stephan Meier from Columbia Business School suggests that breaking down jobs into tasks can help companies navigate these changes. For example, a customer service role might involve tasks that could be automated, augmented by AI, or continue to be performed by humans.
Emerging Roles and Skills
Technology and sustainability are driving job growth. The WEF identifies “AI and machine learning specialists” as a fast-growing job category, while roles like sustainability specialists are gaining importance due to the global green transition. In Singapore, the government is investing in green energy and AI, supporting these emerging sectors.
Specific changes in workflows could lead to new roles. For instance, as AI is integrated into businesses, there may be a need for professionals to manage AI systems, create prompts, or review outputs for errors.
Kweilin Ellingrud of the McKinsey Global Institute highlights the importance of new skills in 2025. Social and emotional skills are becoming crucial as automation increases, emphasizing the value of human connection in workplaces.
Preparing for Change
Navigating the changes in 2025 will be challenging for companies and employees in Singapore. Hard decisions will be necessary, and some workers may need to shift roles or upskill. While six in ten workers globally will need training by 2027, only half currently have access to adequate opportunities, according to the WEF.
Singapore’s SkillsFuture initiative offers a model for upskilling and reskilling the workforce. Company leaders should evaluate their workflows and roles to plan for future needs. On the AI front, this means assessing how these tools will impact their workforce and developing strategies to transition employees to future-oriented roles.
By focusing on where the job market is headed, Singaporean employers can ensure they are training for the right roles and equipping their workforce with the skills needed for a rapidly changing landscape.
Impact of Technology and AI on Financial Advisors
While technology and AI are revolutionizing many industries, they may not significantly impact insurance agents in the foreseeable future due to several factors. Insurance is a complex field that often requires personalized advice and human interaction. Many clients prefer speaking with knowledgeable agents who can provide tailored solutions based on their unique needs and circumstances. This interaction is vital for relationship building, as agents offer personalized service and trust that technology cannot fully replicate, helping retain clients and generate referrals.
Additionally, insurance claims and purchases can be emotional experiences. Agents are skilled at handling sensitive situations and providing reassurance, a level of empathy and understanding that AI cannot yet match. Some insurance products are highly customized and complex, requiring detailed explanations and advice that agents are well-equipped to provide. They can offer insights and options that automated systems might not comprehensively cover.
Moreover, the insurance industry is heavily regulated, and agents play a key role in ensuring compliance with legal and regulatory requirements. They stay updated with changing regulations, a task that can be challenging for automated systems to manage accurately. Many insurance companies are adopting a hybrid model where technology enhances, rather than replaces, the role of agents. AI tools can assist agents by providing data analysis and insights, allowing them to focus on more complex and value-added tasks. Certain niche markets and high-net-worth clients require specialized knowledge and a personal touch, which experienced agents can provide more effectively than automated systems.
Overall, while technology and AI can enhance the efficiency and capabilities of insurance agents, the human element remains a crucial aspect of the industry that technology cannot fully replace.
Disclaimer
Every effort has been made to ensure the accuracy of the information provided, but no liability will be accepted for any loss or inconvenience caused by errors or omissions. The information and opinions presented are offered in good faith and based on sources considered reliable; however, no guarantees are made regarding their accuracy, completeness, or correctness. The author and publisher bear no responsibility for any losses or expenses arising from investment decisions made by the reader.
