Manpower Minister champions Workfare minimum income, tighter foreign worker policy

MANPOWER Minister Tan See Leng has fought the idea that a minimum income criterion for Workfare Income Supplement (WIS) payouts is "a cutback for lower-wage workers".

He also pushed back on the perception that foreign workers are less welcome in Singapore, after tighter manpower policies in the Budget, as he addressed the House on Tuesday (Mar 1).

Tan suggested that bosses turn to untapped sources of labour, such as the roughly 260,000 working-age women not in the job market, on top of business model tweaks that he said would help firms "grow from strength to strength".

While he acknowledged employers' cost and hiring concerns about the impact of the changes, Tan stressed that "we will walk this journey with all businesses", especially small businesses.

Recent Budget measures such as higher qualifying salaries for Employment Pass and S Pass holders are meant to keep pace with higher local wages and prevent firms from hiring foreigners because "they're cheaper than locals", he said, in the second day of the Budget debate.

Without the latest moves, "there will not be a level playing field", he added.

"Our efforts to upskill our workforce to sharpen our business competitiveness will therefore be diluted."

At the same time, Tan called the notion that Singapore is now less welcoming to foreign talent "very damaging for us" if such speculation takes root in society.

"Our foreign workforce policies will have to balance the needs of businesses and workers, and this has been the core guiding principle in (the Ministry of Manpower)," Tan added, while warning against social friction and anti-foreigner or xenophobic sentiment.

Meanwhile, he called the monthly minimum income for WIS "a reasonable and achievable wage for most regular workers", after concerns were raised by Workers' Party MPs Pritam Singh and Gerald Giam (Aljunied GRC), and People's Action Party MP Jessica Tan (East Coast GRC).

The S$500 requirement, which kicks in on Jan 1, 2023, will affect around 20,000 scheme recipients, mostly casual or part-time workers, the minister said.

Singh, the Leader of the Opposition, had previously claimed that the new minimum would affect about 46,600 people, based on the number of employed residents 15 and above in 2021.

But Tan told Parliament that not all of this larger group would be eligible for WIS - which offers cash payments and Central Provident Fund contributions to lower-wage workers - as such individuals include students working part time and employees from higher-income households.

Part-time workers need to work only about 2 days a week to meet the threshold, while those unable to earn that amount, such as disabled workers, can qualify for other aid, he noted.

In an exchange with Singh, Tan later added that the revised policy is intended to "nudge our local able-bodied Singaporeans towards gainful employment, and also a higher sense of achievement".

Get the latest updates on Budget 2022 here: bt.sg/budget22