THE continual “refreshing and updating” of jobs is to be expected in a dynamic and vibrant economy, as unproductive jobs become obsolete, Finance Minister Lawrence Wong said in his Budget debate round-up speech on Friday (Feb 24).

New, better, more productive roles will be created in their place, he said. These could be in the same companies or sectors where unproductive jobs were eliminated; they could also be with more successful and expanding employers in the same or other sectors, “that grow to take the place of the declining ones”.

“This churn is an integral part of healthy economic growth,” Wong told the House. “But it does create uncertainty for workers, because workers will need to reskill and upskill to stay relevant and take on new roles, be it in the same company or in a different company, or even in a different industry altogether.”

This is why, he added, the government is investing significantly in skills and human capital to help workers progress in their careers and earn better wages.

After starting the SkillsFuture movement in 2015, the newly-announced Jobs-Skills Integrator is the next move to strengthen the training and placement ecosystem, said Wong.

Such integrator roles have already been played by bodies such as trade associations, but perhaps on an ad hoc basis, he noted. The Jobs-Skills Integrator role will provide more resources, with details to come in the Ministry of Education’s Committee of Supply debate.

A NEWSLETTER FOR YOU

Friday, 8.30 am

Asean Business

Business insights centering on South-east Asia's fast-growing economies.

Sign Up

On the proposal of temporary financial support for involuntarily unemployed workers, Wong said he agreed with Members of Parliament who raised the challenges that mature workers face in such a situation.

“Younger workers in their 20s will often be able to get back to work quickly, particularly in the current tight labour market, where there are still high vacancy rates and job openings,” he said. “But if you are in your 40s and 50s and are displaced or retrenched, it is harder to find a job.”

He added that mature workers typically have heavier family responsibilities and may find it difficult to go for more extensive training, especially to switch to a new growth area. They may then take the first job available, even if it is not a good fit.

The government is studying how to better support displaced mature workers, and provide some cushion while they train for new roles that better fit their abilities, he said.

“I hope members appreciate that we have to think through and design these (moves) most carefully,” he said. “We have to ensure that whatever we do does not erode the incentive to work.”

In the past, some have accused the government of a “single-minded pursuit of growth”; but now that growth is slower, many are concerned that the government is not sufficiently focused on growth, said Wong.

The government remains focused on growing the economic pie, he stressed, noting that if the pie shrinks, there may be socially-divisive disputes over how to distribute resources.

Pursuing growth, however, will not be easy with a more challenging external environment, said Wong, adding that Singapore “must redouble our efforts to raise our game”.

Apart from working to anchor more quality investments here, the government continues to put in significant resources to nurture and grow local firms, especially small and medium-sized enterprises (SMEs), he said.

Government support to SMEs through capability building grants doubled from 2019 to 2022, and the number of companies supported rose by about 60 per cent, he noted. But ultimately, such support “is focused on helping those who are prepared to take steps themselves to restructure their businesses, raise their productivity and venture into new markets and products”.