PM Lee's speech to G20 leaders at the G20 Summit in Hamburg, Germany

“As leaders, we may differ in our…temperaments. But regardless of our different inclinations, it is our duty to hold out hope to our people, that we can by our efforts make this a better world. .... When it comes to digitalisation and jobs, we must not yield to our fears and anxieties. It is wiser for us to be optimistic and work hard to make our hopes come true.” : PM Lee

PM Lee urged world lead...ers at the G20 Summit in Hamburg, Germany, not yield to the fears and anxieties of digitalization but to embrace change and seek to realize its full benefits.

The “great fear” of digitalisation displacing workers from jobs is exaggerated but, nonetheless, real, he said.

“For every one person displaced, perhaps more than 100 people are worried and anxious. The fear exceeds the reality, but the fear is real,” he said at a G20 working session on digitalisation, women’s empowerment and employment, on the second and final day of the summit.

SETTING THE RIGHT FRAMEWORK AND REGULATIONS. GOVERNMENTS MUST PLAY AN ACTIVE ROLE

Free markets and private enterprise are needed to realise the benefits of digitalisation but governments have to play an active role, he said.

Governments must set the right frameworks and rules to germinate new ideas and ensure that established ways of doing things do not hold back progress.

For instance, banning services of the sharing economy would deprive people of their benefits. But companies cannot be unregulated “because there was often good reason to regulate their traditional equivalents”.

Governments need to find the right regulations to maintain standards, safety and allow new players to emerge, while giving incumbent players a fair chance to adapt and compete, said Mr Lee. (http://bit.ly/2txVG0V)

SKILLS TRAINING TO PREPARE THEIR PEOPLE

Governments should also train and prepare their people to have the skills and confidence to thrive in the new landscape.

For example, Singapore has learnt from the British, French and South Koreans who have coding classes for their schoolchildren, he said. The Republic also has the SkillsFuture programme promoting lifelong learning for people already in the workforce.

HELP WORKERS AT RISK OF BEING DISPLACED TO ADAPT TO CHANGING JOB MARKET

The State must help workers who are at risk of being displaced to adapt to the changing job market, said Mr Lee, citing Singapore’s schemes to train displaced workers, matchmake them to new jobs and subsidise their wages during the transition. 

SUPPORTING ROLE

Governments have a role in supporting industries and businesses to transform, he said.

They can help companies enter new markets, and develop and adopt new technologies themselves