In Parliament: Labour MPs weigh in on GovTech retrenchment, AI and platform worker protections

• In Parliament on 4 and 5 August 2026, NTUC Labour MPs raised concerns over GovTech’s restructuring, AI’s impact on jobs, retrenchment support for PMEs, and platform worker road safety.

• Patrick Tay pressed for stronger support for affected GovTech officers.

• Sanjeev Kumar Tiwari asked about AI adoption and jobs.

• Wan Rizal called for road safety laws to protect lives without unfairly affecting drivers’ livelihoods.

Retrenchment and road safety were among the key issues debated during Parliament's two-day sitting on 4 and 5 August 2026.

NTUC Labour MP Patrick Tay and Labour Nominated MP Sanjeev Kumar Tiwari questioned the recent restructuring exercise at the Government Technology Agency of Singapore (GovTech), raising concerns over retrenchment, the impact of artificial intelligence (AI) on jobs and support for affected workers.

Separately, NTUC's e2i Stakeholder Management Director Wan Rizal spoke on the Road Traffic (Miscellaneous Amendments) Bill 2026, highlighting its implications for platform workers.

Retrenchment

Updates on the GovTech restructuring

GovTech assessed officers based on the roles it will need in future, alongside worker competencies, domain expertise, job fit and readiness, when deciding whether to retrain or retrench staff during its ongoing workforce transformation, Senior Minister of State for Digital Development and Information Jasmin Lau said in Parliament.

Responding to questions from NTUC Assistant Secretary-General Patrick Tay, Ms Lau said technology leaders across Government agencies were consulted as part of the assessment process. She added that the same approach would be applied in the next two phases of the restructuring exercise.

"We will strive for clarity on the roles and capabilities required, assess officers fairly against those requirements, retain and retrain where suitable and support those who are retrenched," she said.

GovTech announced on 15 July 2026 that 93 roles had been made redundant in the first of three phases of a workforce transformation programme expected to take place over two years.

Providing a demographic breakdown, Ms Lau said officers aged 40 to 49 accounted for 42 per cent of the 93 employees retrenched and the 305 others expected to be affected. Around 30 per cent were aged 50 and above.

She added that retrenched officers had a median tenure of 5.4 years, while those placed on retraining pathways had served for a median of six years.

On staff morale, Ms Lau said GovTech had held town halls and dialogues at the cluster, team and individual levels to support employees through the transition.

"We seek to ensure that our staff understand not just what they are building, but why it matters. And this fosters a shared sense of purpose and commitment to building technology for public good," she said.

Mr Tay had asked about the criteria used to determine whether officers were retrained or retrenched, the demographic profile of those affected, and the measures taken to maintain staff morale as GovTech continues to serve the public.

Strengthening support for GovTech workers

Ms Lau also said GovTech would shorten the exit duration after feedback that longer exit periods prolonged uncertainty and anxiety.

The agency will improve communication in the remaining phases of the restructuring exercise by providing greater clarity on the use of vendors and in-house capabilities.

Ms Lau added that contract workers in project and vendor management are likely to be affected as GovTech continues its workforce transformation.

She was responding to supplementary questions from Mr Tay, who is also MP for Pioneer SMC, on how GovTech would apply lessons from the first phase of its restructuring to better support affected officers, and whether contract workers would also be affected.

Enhancing retrenchment statistics to better reflect PME numbers

In a written reply to Mr Sanjeev, Ms Lau said larger firms were more likely to adopt artificial intelligence (AI) than smaller businesses.

Mr Tiwari had asked for more details on the types of firms adopting AI and the outcomes they had experienced.

Ms Lau added that in 2026, nearly 55 per cent of mid-sized firms and more than 76 per cent of large firms had implemented AI initiatives, compared with around 27 per cent of small firms.

She added that a Ministry of Manpower (MOM) survey found most AI-adopting firms focused on job redesign, creating AI-related roles and redeploying workers, rather than reducing headcount. The Government will continue to monitor AI adoption and its impact on the workforce.

Boosting tripartite advisories and assistance programmes to support displaced workers

Ms Lau, who is also Acting Minister for Manpower, said the MOM will consider strengthening the Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment (TAMEM) as part of its ongoing review of the Employment Act.

She added that several Government initiatives currently support displaced workers, including the Taskforce for Responsible Retrenchment and Employment Facilitation, where tripartite partners, including NTUC, help support displaced workers thorough job placements, coaching and training. Other schemes include the Skills and Workforce Development Agency’s Career Conversion Programmes, as well as the SkillsFuture Level-Up Programme and Mid-Career Pathways Programme.

Ms Lau was responding to Mr Tay, who had asked if MOM was strengthening TAMEM and other schemes to support displaced PMEs amid the larger numbers laid off in 2025 and early 2026.

Platform Worker Safety

Wan Rizal welcomes updated law to protect platform worker safety on the roadmid

Meanwhile, Parliament passed the Road Traffic (Miscellaneous Amendments) Bill 2026 on 4 August, introducing tougher penalties for dangerous driving, stronger deterrence against drink- and drug-driving, and enhanced enforcement powers to improve road safety.

Speaking during the debate on the second reading of the Bill, Mr Rizal welcomed the changes, saying stronger penalties were necessary for road users who deliberately put others at risk.

However, he stressed that stricter enforcement should not unfairly affect those who rely on driving for their livelihood. He urged the Government to work with unions, NTUC-affiliated Platform Work Associations, NTUC's e2i (Employment and Employability Institute) and platform operators to ensure livelihood-related cases are handled sensitively.
              

“This should make our roads much safer for workers like our bus captains, taxi and private-hire drivers, and delivery workers. Our roads are their workplace, and their families just want them to return home safely after work ends,” he said.

The Jalan Besar GRC MP also sought assurances that the expanded powers given to lower courts to impose the maximum penalties for certain Road Traffic Act offences would not affect a driver’s right to appeal.

Responding, Second Minister for Home Affairs Sim Ann said parties would continue to have the right to appeal sentencing decisions under the Criminal Procedure Code, while the changes would allow courts to impose sufficiently severe sentences where warranted.

Mr Rizal also asked whether additional guidance or resources could be provided to help companies comply with recordkeeping requirements, and whether such requirements could increase costs for platform workers.

Ms Sim acknowledged that recordkeeping may impose some compliance costs on businesses, but stressed that they are necessary to ensure road traffic laws can be enforced fairly and effectively.

Mr Rizal also asked the Second Minister for a clearer rule-enforcement commencement timeline, adding that it could be rolled out through a targeted campaign driven by NTUC, the platform operators and taxi associations in simple, plain language.

Safeguards for platform worker traffic accidents

Separately, Acting Minister for Manpower Jasmin Lau said the Platform Worker Safety Workgroup (PWSW), comprising representatives from the Government, Labour Movement and platform operators, is developing measures to better protect platform workers from workplace injuries following a rise in fatal work-related traffic accidents. Its recommendations will be announced in due course.

Ms Lau was responding to HDB Staff Union Advisor Alex Yeo, MP for Potong Pasir SMC, who asked how MOM and the PWSW would work with platform operators to reduce work-related traffic fatalities and whether income support for injured platform workers would be reviewed.

She added that since January 2025, platform workers have been covered under the Work Injury Compensation Act, entitling them to the same level of work injury compensation as regular employees. This includes reimbursement for medical expenses and income loss for hospitalisation and medical leave.

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