AI Should Support Humans: Josephine Teo Outlines Singapore's AI and Employment Security Path

Singapore's Minister for Digital Development and Information Josephine Teo stated that artificial intelligence should "serve and support humans" rather than requiring humans to adapt to and operate the technology.

Amid growing global concerns over AI-driven layoffs, she aimed to reassure the public: Singapore's approach places humans at the center of AI adoption.

Teo delivered the keynote address at the 2026 Nomura Investment Forum Asia, held at The Ritz-Carlton, Millenia Singapore. Topics included Singapore's AI strategy and leveraging technology for public good and investment.

Employment Focus: Job Redesign and Large-Scale Retraining

Teo noted that Singapore's tripartite partners are committed to ensuring AI deployment does not suppress jobs. This requires job redesign and workforce reskilling at scale, building on existing SkillsFuture initiatives.

She stressed that this focus on AI implementation is "critical." These efforts are part of broader government preparations for an AI-driven future, keeping workers' interests and concerns central to policymaking.

Teo further stated that advanced AI tools and industry-specific models should not operate in a vacuum. They need a skilled workforce to safely guide, supervise, and integrate AI reliably into existing workflows.

Her remarks came amid announcements of layoffs at companies like Meta, which are simultaneously boosting efficiency through AI and automation.

National AI Impact Programme: Cultivating 100,000 'AI-Bilingual' Professionals

Teo mentioned the National AI Impact Programme, introduced in the 2026 Budget. Singapore plans to cultivate 100,000 "AI-bilingual" professionals as an initial target.

These individuals will combine domain expertise in fields like finance, law, and healthcare with practical understanding of using and applying AI in roles.

She cited the example of a portfolio fund manager using AI to strengthen investment arguments and conduct stress tests. Teo noted that while AI boosts productivity, "ultimately, the person still makes the judgment and decision."

Beyond talent development, the government will support 10,000 enterprises in meaningfully integrating AI into their operations. This support is not limited to large multinationals but also covers SMEs (99% of Singapore firms, employing 70% of the workforce).

Teo said the government aims, through targeted initiatives, to enable the local workforce to work alongside next-generation technology.

She added that by providing infrastructure, trusted "guardrails," and a skilled workforce, the government ensures businesses have a stable foundation to build and scale their AI solutions.

AI Ecosystem and Geopolitical Uncertainty: Connectivity, Collaboration, and Regional Opportunities

At the forum, Teo also addressed concerns that geopolitical tensions could impact the digital economy. She noted that people often ask whether geopolitical competition could split the digital world into different blocs.

She acknowledged this possibility but argued that countries should not let uncertainty paralyze action. Together with digital ministers in ASEAN, she hopes to fully leverage AI to enhance respective economies.

She emphasized that Singapore's efforts go beyond building infrastructure and capabilities. Equally important is maintaining connections with partners in the US, Europe, and China, and finding meaningful collaboration opportunities, including promoting cross-border data flows.

Without this connectivity, digital infrastructure will be significantly limited, she said.

Teo also invited investors to participate more actively in Singapore's growing AI ecosystem and AI hub. This offers access to the broader ASEAN market of over 650 million people, with the region's digital economy expected to reach $1 trillion by 2030.

She noted that ASEAN is seen as a key growth engine, and the upcoming ASEAN Digital Economy Framework Agreement is expected to further boost regional momentum.

She added that Singapore can serve as a regional gateway: AI solutions developed and deployed here may find applications in other ASEAN markets.

Teo described Singapore's AI ecosystem as "progressing quite well," citing reasons to "aim higher and move faster." She mentioned that last month at ATxSummit, Singapore updated its National AI Strategy to sharpen focus on AI's biggest opportunity areas.

She also said these plans will support the National AI Council, chaired by Prime Minister Lawrence Wong. The council's priorities include National AI Missions: moving from small-scale pilots to industry-level transformation in four areas: connectivity, advanced manufacturing, healthcare, and finance.

UBS Resumes USD AT1 Issuance After Swiss Pause on Reform

Meanwhile, UBS Group plans to issue Additional Tier-1 (AT1) instruments in US dollars, its first foray into the market since Swiss authorities paused a reform plan for the riskiest bank debt.

People familiar said the bank plans to issue at least $500 million of perpetual AT1 bonds, with the first call date in the second half of 2032. Under revised pricing guidance, the coupon may be in the 7.25% to 7.375% range, down from initial discussions around 7.5%.

The issuance follows the Swiss government's late-April decision not to proceed with proposed changes to AT1 regulation. This decision is seen as a positive for bondholders. The legislative debate had involved stricter tests on when Swiss banks can pay coupons and when new issuances can replace such bonds.

CreditSights' head of financials Simon Adamson said in a note to clients that the issuance was "unexpected," citing UBS's late-April guidance that it had completed its AT1 issuance plan for the year.

After a UBS representative declined to comment, some institutions upgraded their recommendations on UBS AT1 bonds, citing the Swiss authorities' decision.

UBS is a major issuer of AT1 bonds. Its last AT1 raise in dollars was in January, when analysts noted regulatory and legal uncertainties could pressure the bank's spreads.

A month later, UBS tapped the Australian dollar market after a local regulator decided to phase out domestic banks' use of such debt, leaving a market gap.

According to Bloomberg's multi-currency index, AT1 market spreads have narrowed to near record levels seen earlier this year, within about 15 basis points. With strong recent demand, some banks have even locked in their capital costs for up to a decade, an unusually long duration.