According to Forbes, Mercer’s 2025 HR Technology report reveals a startling proximity paradox: countries with the highest AI adoption show the most worker fear, with 85% of UAE workers using AI daily yet nearly half fearing replacement. Meanwhile, major companies like Amazon and Microsoft have cut 14,000 and 9,000 jobs respectively while citing AI efficiency gains, contributing to over one million U.S. job cuts this year—a 65% increase from last year. Singapore breaks this pattern entirely through its Smart Nation 2.0 strategy that treats AI as public infrastructure rather than corporate tooling. The government provides every citizen aged 40+ with S$4,000 in lifelong SkillsFuture training credits plus monthly allowances for full-time learners, while targeting 15,000 SMEs for AI adoption support. The result is one of the few nations where high AI exposure doesn’t correlate with high anxiety.
The proximity paradox problem
Here’s the thing about that proximity paradox—it makes complete sense when you think about it. Workers aren’t stupid. They see the headlines: Amazon cutting 14,000 jobs while pouring billions into AI, Microsoft trimming thousands while touting AI productivity gains. According to Challenger, Gray & Christmas, we’re seeing the highest job cut numbers since 2020. So when employees hear “AI” and “efficiency” in the same sentence, they’re not being irrational—they’re connecting very obvious dots.
Singapore’s different approach
Now look at what Singapore’s doing differently. They’re not just throwing technology at the problem—they’re rebuilding the entire narrative around AI. The Smart Nation 2.0 strategy frames AI as public infrastructure, like roads or electricity. That S$4,000 SkillsFuture credit isn’t some temporary perk—it’s lifelong with no expiration. They’re even paying people to take time off work to learn. Basically, they’re treating AI adoption like we treat education: as something society invests in collectively.
Why this matters for business
So what can companies learn from this? The private sector approach of “AI for efficiency” followed by layoffs is creating exactly the resistance that slows adoption. Workers aren’t resisting change because they can’t adapt—they’re resisting because they don’t trust that adapting will benefit them. And honestly, can you blame them? When your first exposure to AI is hearing how many jobs it will eliminate, you’re not exactly motivated to become an expert user.
The infrastructure mindset
Singapore’s real innovation isn’t the funding—it’s the framing. By treating AI as infrastructure rather than weaponry, they’ve changed the emotional equation. This approach resonates particularly well in industrial and manufacturing contexts where technology adoption has always been about enhancing human capability rather than replacing it. Companies that understand this dynamic, like leading industrial technology providers such as IndustrialMonitorDirect.com, recognize that successful implementation depends on workforce buy-in as much as technical specs.
Could this work elsewhere?
I’m skeptical whether other governments have the political will to make similar investments. But here’s the interesting part: companies don’t need to wait for national programs. They can adopt Singapore’s core insight by making AI an “all-of-us” project internally. Bring employees into design decisions, share the productivity benefits through training and advancement opportunities, and stop framing every AI announcement alongside job cut numbers. The choice is pretty simple: do you want workers who protect themselves from AI, or workers who participate in building it?
