MPs suggest tweaks, raise questions about labour policies for various worker groups in Budget debate

FROM mid-career upskilling to enhanced wage top-ups for the lower-income, Members of Parliament had ideas for varied groups of workers in the second day of the Budget debate on Tuesday (Feb 27).

Extending the previous day’s focus on mid-career and retrenched workers, MPs suggested ideas for the upcoming unemployment support scheme and tweaks to the new SkillsFuture Level-Up Programme.

Reskilling is especially relevant, as technological developments such as artificial intelligence (AI) threaten workers’ competitiveness, warned MPs.

National Trades Union Congress (NTUC) deputy secretary-general Heng Chee How, who is also senior minister of state for defence, said: “The pervasive impact of AI on how work will be carried out is also not a trivial matter for workers.”

Patrick Tay, one of eight labour movement MPs who spoke, set out five principles for the long-discussed upcoming unemployment support scheme.

First, financial support should be extended to the broad middle of affected workers, not just those earning below the median wage. There could also be sector-specific support for workers in industries with cyclical downturns, helping companies “cut costs to save jobs”.

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Second, the amount should be “sufficient” based on a “reasonable societal standard”, though Tay did not specify a figure. Third, there should be ample time to reskill and be matched to an appropriate job.

Fourth, workers should actively search for jobs and attend training. Finally, access to this support should be seamless, prompt and uncomplicated.

Tay also suggested extending the new S$4,000 SkillsFuture Credit top-up – for Singaporeans aged 40 and over – to other vulnerable groups such as the retrenched, unemployed and freelancers.

MPs sought more details of the SkillsFuture Level-Up Programme, including how the quantums were derived, and whether it could cover other courses of study.

Bishan-Toa Payoh GRC MP Chong Kee Hiong suggested tracking the jobs and salaries of graduates to evaluate the effectiveness of this policy.

The need to track outcomes was a recurring point on Tuesday, with Workers’ Party (WP) MP He Ting Ru calling for greater government transparency. Data on scheme outcomes is necessary to measure success and inform policymaking, she said.

Other WP MPs raised concerns about low SkillsFuture Credit take-up rates. Jamus Lim asked what could be done to increase participation, while Gerald Giam proposed expanding available courses to include hands-on practice in growth areas such as AI.

Deputy Prime Minister Heng Swee Keat responded that the government is open to suggestions, though there was already a wide array of courses.

Holland-Bukit Timah GRC MP Edward Chia suggested adapting full-time diploma programmes into part-time ones, so that participants can keep working, in view of the tight labour market.

Beyond SkillsFuture, retirement and ageism were other topics related to older workers.

NTUC’s Heng said the government should announce the next raising of retirement and re-employment ages “soonest”, so that businesses and workers have time to prepare. The higher ages could be implemented in 2026, he added.

WP MP Sylvia Lim highlighted ageism in the workforce, suggesting that Singapore’s upcoming anti-discrimination law could ban recruiters from asking potential hires for their age or date of birth.

On the other end of the spectrum, Tampines GRC MP Desmond Choo suggested support for young workers. Students could get subsidies to further their education in select industries or undergo career trials, to prepare them for trends such as AI and the green transition.

Meanwhile, Nominated MP Jean See spoke for freelancers. For creative, media or coaching work, government contractors could be made to adopt and uphold tripartite standards related to freelancers. Guidelines could also be set for freelancer remuneration in certain sectors.

Lower-wage workers were another group that MPs highlighted.

Chua Chu Kang GRC MP Don Wee suggested reviewing the Workfare Income Supplement scheme annually to keep up with inflation, and recalibrating it to account for household incomes and size.

Marine Parade GRC MP Fahmi Aliman called for regular reviews of the local qualifying salary, which is the minimum wage that local workers must be paid for their employers to hire foreign workers. This will be raised to S$1,600 for full-time workers from Jul 1, from S$1,400 now.

Fahmi and fellow labour MP Melvin Yong also renewed NTUC’s call to expand the Progressive Wage Model to two more sectors: pest management as well as strata and facilities management.

Another vulnerable group highlighted were persons with disabilities.

WP’s He and West Coast GRC MP Rachel Ong said that training providers should provide reasonable accommodations so that persons with disabilities can attend courses.

Many in the community may find that courses catered for them, while well-meaning, are ultimately exclusionary, He added.

Separately, Wee suggested incentives for companies with inclusive hiring, such as tax rebates, higher foreign worker quota and more points awarded when bidding for government projects.

NTUC deputy secretary-general Desmond Tan also gave an update on the labour movement’s Company Training Committees (CTC) initiative.

Since it began in 2019, over 1,900 CTCs have been formed and 168 companies’ CTC Grant projects have been approved, helping more than 2,600 workers either benefit from career development plans or receive a wage increment of 5 per cent on average.

The initiative has also equipped over 125,000 workers with skills to secure better wages and work prospects, he added.

From Apr 1 this year, NTUC’s Employment and Employability Institute will take over designated Career Centres and Job and Skills Centres from Workforce Singapore, with more details to come.