Singapore’s AI Challenge: Embracing Disruption for a Competitive Future

Tharman Urges Global AI Governance as Singapore Braces for Faster Disruption

President Tharman Shanmugaratnam has emphasized that Singapore will face the full impact of artificial intelligence (AI) sooner than most countries, but is structurally prepared for the challenges ahead.

Singapore’s Unique Position

In an interview during the World Economic Forum in Davos on January 20, 2026, Tharman highlighted Singapore’s openness, small size, and reliance on technology as factors that expose the nation to global disruptions more rapidly than others. He stated:

“We will face the challenge faster than some countries which don’t have the basic digital infrastructure… Our advantage, however, is that we’ve always faced the challenge faster than other countries.”

AI as a Double-Edged Sword

Tharman described AI as a net positive for productivity but cautioned about the risks of unequal benefit distribution across the workforce. He emphasized the need for deliberate reinvestment in the middle layer of white-collar workers, enabling them to work alongside AI or transition into growing sectors like healthcare.

SkillsFuture Initiative

Singapore’s long-standing approach to anticipating challenges has informed its readiness. The SkillsFuture initiative, launched over a decade ago, aims to embed lifelong learning and reskill workers at various life stages. Tharman noted:

“It’s going to be more important than ever before.”

Global AI Risks and Governance

Tharman framed AI as an opportunity for societies to maximize human capital while warning that the global system is dangerously unprepared for AI-related risks, including AI-driven nuclear conflict, misinformation, and cyberattacks by non-state actors. He stated:

“There is no one AI race. There are several AI races.”

Private Sector Leadership

Unlike nuclear arms control during the Cold War, AI development is led by the private sector, which complicates governance. Tharman called for a mindset shift among governments and companies to avoid zero-sum thinking about AI dominance. He proposed:

“Rather than building parallel, incompatible AI ecosystems, the US and China should aim for strategic competition in some areas and cooperation in others.”

The Role of Smaller Nations

Tharman emphasized that smaller, neutral countries have a crucial role in facilitating dialogue on global AI governance. He pointed out that Singapore hosted the AI Safety Conference in April 2025, bringing together over 100 international scientists, including participants from both the US and China.

Multilateralism in a Multipolar World

He contextualized the AI debate within a broader global reordering, arguing that the world is no longer governed by a single dominant power and that radical uncertainty exists. He cautioned:

“This is not a transition to some new world order… We are no longer in a world where a single dominant power oversaw global security.”

Future Economic Landscape

Tharman’s remarks come ahead of a significant domestic policy update. Deputy Prime Minister Gan Kim Yong highlighted that future economic growth may not automatically lead to good job opportunities, indicating a shift in Singapore’s economic landscape due to demographic changes and technological advancements.

Conclusion

As AI accelerates global transformation, Singapore is not just preparing to survive disruption but is positioning itself to shape how the world navigates these challenges.

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