Prof Sumit Agarwal's Insights on Singapore's Job Landscape

National University of Singapore (NUS) Business School's Low Tuck Kwong Distinguished Professor Sumit Agarwal has sparked important discussions on the dual pressures facing Singapore's workforce: job offshoring to neighbouring Malaysia and the transformative rise of artificial intelligence (AI). In a recent Channel NewsAsia Deep Dive analysis, Prof Agarwal explained that Singaporean companies are strategically relocating low-cost, labour-intensive operations across the border to capitalize on cheaper real estate, lower wages, and a weaker Malaysian ringgit against the strong Singapore dollar. This shift, he noted, targets routine tasks like manufacturing and back-office support, potentially displacing low- and mid-level jobs in the near term.

However, Prof Agarwal emphasized a silver lining. "When we lose these jobs … we can then see how we can create higher value jobs in Singapore," he stated, highlighting Singapore's unique advantages in credibility, rule of law, efficiency, and a deep talent pool for research and development (R&D), high-end pharmaceuticals, and advanced chip manufacturing. These elements make it challenging to offshore specialized roles, as top talent prefers Singapore's lifestyle and ecosystem.

AI compounds this trend by automating routine roles, but Prof Agarwal views it as an enabler for workflow improvements and job evolution rather than outright replacement. This perspective aligns with Singapore's proactive stance, where universities play a pivotal role in equipping students and professionals for these higher-value opportunities.

The Growing Trend of Offshoring to Malaysia

Singapore's proximity to Johor Bahru has long facilitated cross-border business, but recent developments like the Johor-Singapore Special Economic Zone (JS-SEZ) and the upcoming Rapid Transit System (RTS) Link in 2027 are accelerating offshoring. Companies are moving space-intensive and labour-heavy functions to Malaysia, where operational costs are significantly lower. For instance, banking and financial services have established shared service centres in Johor for tasks such as know-your-client verification, customer care, human resources (HR), finance, and marketing operations—a pattern observed over the past decade.

The high cost of property in Singapore exacerbates this. Data centres, breweries, and manufacturing units are prime candidates for relocation due to land scarcity. While exact economy-wide statistics for 2026 are emerging, anecdotal evidence points to steady shifts. The JS-SEZ blueprint promises incentives for high-value investments in AI, cloud computing, and fintech, potentially creating a symbiotic ecosystem where Johor handles volume operations and Singapore focuses on innovation.

This regional integration under ASEAN frameworks allows Singapore firms to expand without full relocation, retaining headquarters and strategic functions locally. Yet, for low- and mid-level workers in affected sectors, reskilling becomes essential to transition to roles demanding creativity, strategic thinking, and technical expertise.

Real-World Examples of Job Shifts

Concrete cases illustrate Prof Agarwal's observations. Asia Pacific Breweries Singapore, a Heineken subsidiary, announced the wind-down of its local brewing operations by 2027, impacting about 130 jobs. The company is pivoting to regional logistics, branding, and innovation—higher-value activities suited to Singapore's strengths. Similarly, Yeo Hiap Seng consolidated its can manufacturing to Malaysia, resulting in 25 layoffs at its Senoko facility, while keeping the site as a headquarters, logistics hub, and smaller-scale production centre.

These moves reflect a broader pattern: firms are not abandoning Singapore but optimizing footprints. In financial services, back-office roles have migrated to Malaysia, freeing space for AI-enhanced analytics and compliance in Singapore. Such transitions underscore the need for Singapore's higher education institutions to bridge the skills gap through targeted programmes.

AI's Role in Reshaping Low- and Mid-Level Jobs

Artificial intelligence amplifies offshoring pressures by automating repetitive tasks faster than human relocation. Prof Agarwal warned that many routine jobs might be displaced by AI regardless of geography, urging a focus on augmentation. In Singapore, where AI adoption is high, studies show tools like generative AI boost novice workers' performance by up to 34% but offer less to experts, narrowing skill gaps while demanding adaptability.

Budget 2026 allocates resources for AI job redesign grants, covering up to 70% of costs for companies to integrate AI and upskill workers. This includes six months of free premium AI tool access for Singaporeans, fostering 'AI bilingualism'. Universities are central, with NUS and NTU leading in embedding AI literacy across curricula to prepare graduates for hybrid roles blending human insight with machine efficiency.

Singapore Universities' Proactive AI Strategies

Singapore's autonomous universities are responding robustly. NUS offers a Master of Computing in Artificial Intelligence and short courses via its SCALE (School of Continuing and Lifelong Education), emphasizing machine learning (ML) and practical applications. These programmes target mid-career professionals transitioning from vulnerable roles, integrating AI with finance, real estate, and business—fields close to Prof Agarwal's expertise.

NTU Singapore launched eight new AI-focused professional programmes in 2026 under SkillsFuture, including certifications in generative AI, prompt engineering, and AI for business. From August 2026, all undergraduates gain full access to Google AI tools like Gemini, empowering them to thrive amid disruptions. SMU's Advanced Certificate in Applied AI Programming and Jump Start courses in AI/ML further democratize access.

SUTD weaves AI into its Freshmore curriculum from 2026, fostering design-AI hybrids. These initiatives align with national goals to triple the AI workforce, blending university research with industry needs for higher-value jobs in deep tech and analytics.

NUS Business School: Leading Research and Training

At NUS, Prof Agarwal's home, the Business School integrates AI into finance and economics curricula. The Sustainable and Green Finance Institute, which he directs, explores AI's role in sustainable job creation. NUS's AI Singapore programme trains thousands, focusing on natural language processing and ethical AI—critical for replacing routine finance tasks offshored to Malaysia.

Students engage in projects simulating real-world scenarios, like AI-driven risk assessment, preparing them for roles immune to offshoring. Alumni testimonials highlight how NUS's emphasis on interdisciplinary skills—combining AI with domain expertise—secures positions in R&D hubs retaining high-value functions in Singapore. For more on NUS's offerings, visit their AI and ML programmes page.

NTU and SMU: Tailored Upskilling for the AI Era

Nanyang Technological University (NTU) positions itself as an AI powerhouse, with its new mid-career programmes addressing Prof Agarwal's call for evolution. Courses cover AI in healthcare, logistics, and finance, directly countering losses in manufacturing and services to Malaysia. NTU's partnership with Google ensures hands-on experience, vital for students eyeing specialist roles.

SMU complements this with AI for Social Transformation and data analytics tracks in its Global Summer Programme 2026. These focus on ethical AI deployment, equipping graduates to lead job redesigns. Together, NTU and SMU graduate cohorts ready for Singapore's pivot to AI-orchestrated higher-value work, such as strategic oversight in cross-border operations.

Government and Industry Collaboration

Singapore Budget 2026 underscores education's role, with S$1 billion for AI infrastructure and training. Initiatives like AI-Ready SG by NTUC provide 50% funding for AI tools, partnering with universities. The JS-SEZ's focus on knowledge workers (15% tax rate) attracts FDI, but Singapore universities ensure locals capture high-end jobs through specialized diplomas and micro-credentials.

Stakeholders, including labour MPs, advocate AI-ready pathways, with over 1,600 courses on MySkillsFuture. This ecosystem positions higher education as the linchpin for resilience.

Stakeholder Perspectives and Student Experiences

Current students at NUS and NTU report optimism. One NUS computing major shared how AI modules helped pivot from data entry simulations to predictive analytics projects, mirroring real offshoring scenarios. Graduates in finance note demand for AI-savvy analysts, with starting salaries 20-30% higher for those certified in ML. Employers value soft skills alongside tech proficiency, honed via university group projects simulating JS-SEZ collaborations.

Challenges persist: mid-career workers in low-level roles face steeper transitions. Universities offer bridging programmes, with success rates above 80% in placement post-training.

Future Outlook: Seizing Higher-Value Opportunities

By 2030, projections suggest Singapore's economy will generate 100,000+ AI-related jobs, offsetting offshoring losses. Universities like NUS, with Prof Agarwal's research influencing policy, will drive this through innovation hubs. The blend of offshoring and AI clears pathways for roles in AI governance, ethical tech, and regional strategy—Singapore's comparative edge.

Cultural context: Singapore's meritocratic, multilingual society suits cross-border higher-value work, with universities fostering ASEAN awareness.

Actionable Insights for Aspiring Professionals

• Enrol in university AI short courses for quick upskilling.
• Pursue interdisciplinary majors combining business with AI at NUS/NTU.
• Leverage SkillsFuture credits for Budget 2026-supported programmes.
• Build portfolios with AI projects to stand out in high-value hiring.
• Network via university career fairs focused on tech-resilient sectors.

Singapore's higher education is transforming threats into triumphs, ensuring graduates not only survive but lead in an AI-offshored world. Explore opportunities at leading institutions today.

Photo by Ryan Searle on Unsplash