SGTech calls for more workforce upskilling, global talent strategy and SME support in Budget 2025 wishlist
The trade association cites the need to sustain the Republic’s competitive edge in the tech sector, amid trends such as offshoring and a widening AI skills gap
TO HAVE Singapore emphasise skills in its immigration policies – rather than academic qualifications and salary thresholds – to plug talent gaps is among several Budget 2025 recommendations put forth by SGTech, Singapore’s technology industry trade association.
Amid rapid technological disruptions, there is a need for the Republic to “address urgent workforce challenges” and strengthen its position in the global tech ecosystem, the association – which has more than 1,300 member companies – said on Wednesday (Jan 12).
It noted that trends such as offshoring, talent migration and a widening artificial intelligence (AI) skills gap could erode Singapore’s long-term competitiveness.
“Without a major shift in how we develop and retain tech talent, we risk losing high-value roles to offshoring, therefore diminishing our capacity for innovation, and weakening our international influence in the tech sector,” said Nicholas Lee, chair of SGTech.
To help Singapore sustain its competitive edge, the association highlighted the need for a global talent strategy, AI-driven workforce upskilling, as well as stronger support for small and medium-sized enterprises (SMEs) to attract talent. Its Budget 2025 proposals fall under these three pillars.
Global talent hub
To help Singaporean professionals gain more international experience, SGTech called for more funding for overseas placements, secondments and inter-company exchanges.
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Global talent exchange programmes can also be co-funded for SMEs to send their employees abroad and take in overseas expertise, as these businesses often lack the resources to facilitate such mobility.
SGTech also suggested that Singapore’s immigration policies adopt a “skills-based approach, rather than a traditional focus on academic qualifications and salary thresholds”.
This would plug vital skills gaps in growth sectors, including jobs on the Ministry of Manpower’s shortage occupation list, the association noted.
It added that local talent development programmes such as internships, apprenticeships and Career Conversion Programmes can be paired with these immigration policies.
AI-driven upskilling
Government agencies and industry associations should form stronger partnerships to drive AI adoption among SMEs, said SGTech.
“While existing government initiatives have made progress in reskilling workers, there is a need for a more coordinated and proactive approach to integrating AI skills into the workplace,” it noted.
It recommended curating pre-approved AI solutions and showcasing use cases to SMEs, as well as enhancing business consultancy support to help these companies identify and implement the solutions.
Structured, workplace-based training workshops could also be introduced to help companies assess and integrate AI solutions effectively, SGTech added.
It also said that existing reskilling programmes such as the Career Conversion Programme should be expanded to support workers transitioning into AI-driven roles.
Incentivising talent to join SMEs
To better position SMEs as an employer of choice for tech talent, SGTech suggested rolling out more on-the-job training initiatives such as apprenticeships and internships.
These will provide young professionals with more structured learning opportunities in SMEs, it noted.
It also recommended introducing co-funded SME scholarships aimed at polytechnic and Institute of Technical Education graduates, for apprenticeship-style programmes. Such schemes would further motivate talent to join SMEs.
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