SINGAPORE – Budget 2025 tackles challenges facing workers and businesses when it comes to training and hiring, members from both sides of the House said, as they brought up examples of pockets of workers who may still need more help.
During the first two days of the Budget debate, MPs raised ideas on how to improve workers’ welfare and cushion the impact of labour market risks such as workers being laid off and jobs leaving Singapore.
Labour MP Mohd Fahmi Aliman (Marine Parade GRC) on Feb 27 called for the Workfare Income Supplement (WIS) minimum payout and age thresholds to be relooked, even as he acknowledged that the Budget broadly prioritises lower-wage workers.
The WIS is a salary top-up for lower-income workers to help them save for retirement. The top tier of payment is currently for those aged 60 and above.
“WIS payments increase with age, but currently max out at 60 years old, even though many workers continue working well beyond that,” Mr Fahmi said.
Additional age tiers past 60 with progressively higher payments, in line with increases to the retirement age, could be introduced, he suggested.
The minimum payout in both cash and Central Provident Fund contribution, currently at $10 each, should also be raised given rising living costs, he added.
Similar suggestions were made by Mr Gan Thiam Poh (Ang Mo Kio GRC) on the first day of the debate on Feb 26, highlighting the struggles of low-income elderly workers who continue working to make ends meet.
In his speech, Mr Fahmi also asked building developers and employers to provide more rest areas for lower-wage workers and proposed exemptions to gross floor area calculations for these areas to sweeten the deal for developers.
Meanwhile, Nominated MP Jean See said freelancers and contract workers hired through third-party agencies form one of two emerging groups of vulnerable workers requiring more active support.
The other group are employees who stand to hurt most from retrenchment, she said.
Ms See, who is director of the National Trades Union Congress’ (NTUC) freelancers and self-employed unit, suggested that the income criteria for measures to help those who lose their jobs bounce back, such as the SkillsFuture Jobseeker Support scheme, be made flexible for those with more family members to support.
These schemes should also be extended to freelancers who can prove that their monthly income fell significantly, she added.
She also mooted strengthening legal protections for freelance creative practitioners whose incomes are at risk with the rise of artificial intelligence (AI)
“Creative freelancers look to the Government to instil in service buyers respect for creators’ intellectual property rights, rights to timely payment and fair terms, and to uphold justice if buyers wilfully violate such rights.”
She said: “If service buyers fail to respect and uphold fair use of AI, creative freelancers will become increasingly vulnerable to diminishing earnings and prospects.”
Labour MP Patrick Tay (Pioneer) said in his speech that the Government ought to more firmly prioritise Singaporeans for job opportunities and career support, beyond ensuring that employers notify unions and retrenched workers earlier, as well as fairly compensate those affected.
“Foreign manpower can help fill critical skills gaps and support sectors facing labour shortage, but we cannot overly rely on external labour,” he said.
“A stronger Singaporean core means a stronger economy for Singapore, one that is more competitive and less reliant on external labour,” he added, applauding the move to buttress schemes that groom promising talent, including those providing overseas exposure.
In a similar vein, Workers’ Party MP Faisal Manap (Aljunied GRC) suggested economic incentives be given to companies that employ more Singaporeans in excess of the minimum for foreign worker quotas. The incentives can include tax breaks or preferential access to support programmes.
As for students and young workers, labour MP Desmond Choo (Tampines GRC) noted that internships are an increasingly vital part of preparation to join the workforce.
Yet internship experiences vary widely depending on the company’s resources and day-to-day interaction with the internship supervisors, he said, prompting the need for quality internships that build “real skills for real careers”.
“We need to not just have more internships, but also better ones.”
To this end, Mr Choo raised the possibility of a national internship framework that establishes clear expectations for all involved.
Greater funding for initiatives to expose young Singaporeans both at home and abroad, as well as economic incentives for multinationals willing to host more interns, and financial support for interns, were other moves he suggested in his speech.
Mr Desmond Tan, Senior Minister of State in the Prime Minister’s Office and NTUC deputy secretary-general, said the latest Budget responds to the immediate needs of workers and firms, while presenting long-term strategies to let both remain competitive.
In a show of unity across the House, Mr Melvin Yong (Radin Mas), another labour MP, thanked Non-Constituency MP Hazel Poa of the Progress Singapore Party for supporting the idea of a worker’s right to disconnect after work.
Ms Cheryl Chan (East Coast GRC), who was the first MP to speak on the second day of the debate after a speech by Deputy Prime Minister Heng Swee Keat on Singapore’s research and innovation efforts, spoke of the need to shift Singapore’s talent development approach.
She proposed that the Government tie up with multinational corporations and subsidise the cost of hiring young Singaporeans for jobs throughout the globe.
“This should be viewed as an investment in our local talent pool, which I believe can pay off in the long run.”
While Singapore will need to augment its workforce with global talent to meet employer needs, the Republic can curb the risk of companies moving roles elsewhere by ensuring Singaporeans are well-placed to help act as a bridge and connect industry players from all corners, she said.
She also suggested that vocational education at the Institute of Technical Education start as early as age 13 to provide a longer pathway for students to discover and hone the technical skills they are passionate about.
- Tay Hong Yi is a correspondent who covers manpower and career issues, with occasional forays into fintech, trade and corporates.
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