Speech By Minister for Manpower Dr Tan See Leng at Committee of Supply 2025
Minister for Manpower, Dr Tan See Leng, Parliament House
A. PREAMBLE
A1. Mr Chairman, I thank GPC MPs and members who have spoken for our workers and employers.
MOM’s Achievements since 2020
A2. It has been five years since the COVID-19 pandemic.
A3. Fortunately, we managed to recover fairly quickly.
a. During COVID-19, resident unemployment peaked at 4.8%.
b. MOM’s priority then was to protect livelihoods. Through the SGUnited Jobs and Skills Package, we assisted more than 200,000 jobseekers.
c. Now, resident unemployment is 2.8% – amongst the lowest compared to OECD countries.
d. Against the backdrop of wars and supply chain disruptions, most countries, including Singapore, battled global inflation in recent years. For many Singaporeans, the pressures of rising cost of living were a very real concern.
e. We managed to cushion this through targeted support for households, and income growth that kept pace with – and even exceeded – inflation.
f. Over the last five years, the median real monthly income of residents grew by 3.6%. For lower-wage workers, this was higher at 5.9%. This means while prices have risen, our wages have increased more. We have done better than other advanced economies, such as the United Kingdom, United States and Japan, where real wages have stagnated or declined.
A4. Beyond recovering, we helped workers and businesses to emerge stronger.
A5. First, we supported Singaporeans across career stages.
a. For working professionals in their 20s to 40s, we helped advance their careers.
i. Career Conversion Programmes helped 37,000 workers reskill into growth jobs over the last five years.
b. For mature workers in their 50s onwards, we helped them stay meaningfully employed.
i. The Part-Time Re-employment Grant helped more than 6,500 employers offer work opportunities to 50,000 mature workers.
A6. Second, we strengthened protection for vulnerable groups, and helped Singaporeans save up for retirement.
a. For those who lost their jobs involuntarily, we introduced the SkillsFuture Jobseeker Support Scheme to provide temporary financial support while they look for a job.
b. For lower-wage workers, we uplifted their wages.
i. We expanded the Progressive Wage Models, raised the Local Qualifying Salary, and enhanced the Workfare Income Supplement to boost their incomes and CPF savings.
ii. Up to 9 in 10 full-time lower-wage workers are now covered by PWM, LQS, and the PW Mark.
c. For platform workers, we strengthened their housing and retirement adequacy, work injury compensation, and representation.
d. For persons with disabilities, we boosted their employment from 28% to 34% over the past five years.
e. We strengthened the retirement adequacy of all Singaporeans.
i. We introduced the $9 billion Majulah Package in 2024, and expect to spend over $800 million on the enhanced Silver Support Scheme this year for 290,000 seniors. 740,000 Singaporeans will be eligible for the enhanced Matched Retirement Savings Scheme.
ii. We want to assure all Singaporeans that they can meet their basic retirement needs so long as they work and contribute consistently to CPF. We will also uplift those who are unable to, or lack the runway to, work and save through CPF.
A7. Third, COVID-19 was a wake-up call for businesses to drive productivity and strengthen resilience.
a. We refreshed our work pass framework to enable this.
i. We launched the Overseas Networks and Expertise Pass, or ONE Pass, for global talent, and the Complementarity Assessment Framework, or COMPASS, for EP holders.
ii. We remained disciplined in our reliance on Work Permit holders to spur industry transformation.
b. We supported businesses’ transformation. Mr Sharael Taha asked how successful this has been.
i. Since 2019, we have launched 17 Jobs Transformation Maps. Around 10,000 companies received support to train and hire workers, and to redesign jobs through schemes like the Career Conversion Programmes.
ii. We also launched the HR Industry Transformation Plan in 2023 to drive workforce transformation.
A8. Finally, we built fairer, more inclusive and safer workplaces.
a. We launched the Tripartite Guidelines on Flexible Work Arrangement Requests and built employer capabilities, to better attract and retain talent in the workforce.
i. This initiative could potentially unlock access to a sizeable group, with about 240,000 women and 130,000 seniors of working age outside the labour force today.
b. We passed the Workplace Fairness Bill to combat workplace discrimination.
c. We improved the well-being and safety of migrant workers.
i. We introduced primary care plans, raised operating standards in dormitories, and improved service offerings at the Recreation Centres.
ii. We attained a record low workplace fatality rate of 0.99 fatalities per 100,000 workers in 2023.
A9. These achievements were only possible with the strong support of our tripartite partners – the National Trades Union Congress and the Singapore National Employers Federation.
Challenges Ahead: Our Demographic Challenge and Intensifying Global Competition
A10. But the work goes on. With significant geopolitical and economic uncertainties ahead, we have projected a more cautious pace of GDP growth in 2025, at 1 to 3%. In the longer term, two forces will make growth harder to sustain.
A11. First, our demographic challenge:
a. With our low fertility, our resident workforce is expected to stop growing by the next decade.
b. Our population is also ageing: 1 in 4 Singaporeans are projected to be aged 65 and above by 2030.
A12. Second, intensifying global competition.
a. Southeast Asia will benefit from a demographic dividend, and we need to keep up as they grow.
b. Cities like New York, London and Dubai are attracting top companies and talent in fields like biotechnology and AI.
Staying Open and Pursuing Productivity-Driven Growth
A13. Amidst these challenges, how can we continually grow the economic pie and continue to create meaningful opportunities for Singaporeans?
A14. First, we must remain open to the world to stay competitive and support our society’s needs.
a. In 2014, there were 6 working-age residents supporting each elderly resident aged 65 and above.
b. In 2024, this fell to 3.5.
c. Foreign workers blunt this decline. Including them, the old age support ratio in 2024 rises to 5.2.
A15. But there are limits to growing through numbers. The only sustainable way forward is productivity-driven growth.
A16. We have made good progress on our productivity journey. Supported by the Industry Transformation Maps, labour productivity grew by around 2.0% per annum over the last decade. However, Singapore’s productivity remains 40% to 70% of frontier economies.
A17. This is an exciting opportunity to reshape our economy into one driven by productivity and innovation. The global order has also changed dramatically. Singapore can stand out as a beacon of stability and openness, drawing in global talent and companies. As DPM Gan shared in his MTI speech:
a. We will strengthen our connectivity to the world;
b. Help local companies build new brands and businesses;
c. And foster a pro-enterprise environment for growth in areas like advanced manufacturing, deep tech, and the green economy.
A18. People – their passion, ingenuity and skills – these are at the heart of this journey. MOM will build a workforce that is adaptable, innovative and diverse, helping Singapore thrive in a turbulent world.
A19. We have three priorities this year: Enabling Businesses to Transform, Empowering Workers to Build Career Health, and Fostering Inclusive and Safe Workplaces.
A20. First, we will enable businesses to transform.
a. Businesses understand this need, but face a high-cost environment. Part of the increase in manpower cost has been necessary to uplift lower-wage workers, a priority in Singapore’s social compact.
b. We will alleviate businesses’ short-term pressures, while driving long-term transformation.
A21. Second, we will empower workers to build their career health through different life stages, as our economy transforms.
A22. Third, we will foster fair, inclusive and safe workplaces.
A23. Let me start with how we are enabling businesses to transform.
B. ENABLING BUSINESSES TO TRANSFORM
Driving Enterprise Workforce Transformation
B1. To stay competitive, companies need to transform their workforce in tandem with business improvements.
Enterprise Workforce Transformation Package
B2. We will set aside over $400 million for a new Enterprise Workforce Transformation Package. It will address the calls from Mr Yip Hon Weng, Mr Sharael Taha, Mr Edward Chia and Ms Jean See for more holistic and integrated support for enterprise workforce transformation, with three main features.
B3. First, we will introduce a new SkillsFuture Workforce Development Grant.
a. This will bring together schemes administered by WSG and SSG, and simplify the application process.
b. Companies can access a holistic suite of workforce development support via one application channel, for activities like job redesign, capability building and training.
c. WSG will work with anchor programme partners to advise companies on suitable solutions.
B4. Second, we will enhance support for job redesign.
a. Currently, WSG provides funding support of up to 50%, capped at $30,000, for companies to engage pre-approved consultants on job redesign. Under the WDG, we will increase this to 70%. We will also review and raise the cap of $30,000.
b. Some larger companies have begun identifying workers who may be impacted by AI and proactively reskilling them for new jobs. But as Associate Professor Razwana Begum pointed out, other companies, especially SMEs, may need more support for job redesign to address disruptions like the impact of AI. We will expand the scope of coverage for job redesign expenses beyond consultancy services, to include equipping line managers and HR with job redesign and change management skills, and identifying workforce solutions and AI tools.
c. We will share more details in due course.
B5. Third, the SkillsFuture Enterprise Credit, or SFEC, will be redesigned in 2026 to better support workforce transformation.
a. We received feedback that the reimbursement model could better address companies’ cashflow issues, and be clearer which schemes the credits could be used for.
b. With the redesigned scheme, eligible companies will get a fresh $10,000 of credits. Like an online wallet, companies can use the credits to offset out-of-pocket expenses on relevant workforce transformation programmes.
NTUC CTC Grant
B6. NTUC’s Company Training Committee, or CTC, Grant was enhanced in 2024 to support training tied to business transformation.
B7. Take-up has been encouraging. As of December 2024, the CTC Grant has supported more than 400 transformation projects, benefitting over 7,000 workers.
a. Take Ms Rachel Lee, a Tax Advisor at BDO Tax Advisory. Rachel used to spend many hours on manual tasks like data collection and document preparation.
b. Using the CTC Grant, BDO Tax Advisory introduced a centralised data platform with a smarter and faster workflow, automated data collection and validation.
c. This allowed Rachel to focus on providing clients personalised support, improving business outcomes.
B8. As announced by PM in his Budget speech, we will set aside around $200 million to scale up the grant, and to extend it to 2028.
B9. Associate Professor Razwana Begum asked how educational institutions and employers can collaborate to develop future-ready employees. Today, they can co-develop workforce training programmes customised to business needs. We will also expand the CTC Grant to fund employer-led training that provides workers formal certifications. The CTC Grant will provide enhanced support via course fee subsidies and absentee payroll.
B10. We thank Mr Patrick Tay, Mr Yip Hon Weng and Mr Edward Chia for their suggestions to improve HR practices and standards. HR plays an important role in workforce transformation, not just to comply with employment legislation but also uplift organisations’ human capital. We will launch a Tripartite Workgroup on Human Capital Capability Development to raise HR standards and HR professionals’ capabilities to contribute strategically to business and workforce outcomes.
Expanding Access to High-Skilled Foreign Workers
B11. Let me turn to our foreign workforce. Businesses have cited manpower constraints as a key challenge.
B12. At the same time, Associate Professor Jamus Lim shares that there is ground scepticism over the need for foreign talent. That scepticism is natural – when we see a foreigner, we think, “they are taking a job a Iocal could have had”. What is harder to see is that, without access to foreigners, the company and its jobs would not be in Singapore to begin with.
B13. The hard truth is that Singapore has a small domestic market and no natural resources. As Mr Lee Kuan Yew once said: “If we do not attract, welcome and make talent feel comfortable in Singapore, we will not be a global city, and we will not count for much.”
B14. It is very easy to use simplistic arguments to insinuate it is a zero-sum game — that if you remove one foreigner, you get one more job for a local. Mr Leong shared that he is for an open economy and open society and asked for facts to support this and quell anti-immigration sentiments. Let me share the facts. I take note that he is trained in econometrics, but please do not underestimate the power of the entire team of government economists, scholars, government statisticians who are monitoring this for many years, many decades and have also understood the trends. They probably have a deeper depth of knowledge and understanding of the trends than probably you and I do.
a. Over the last decade, the number of EP and S Pass holders grew by 38,000. Resident PMETs grew by 382,000, ten times more.
i. 1 in 3 of the increase in resident PMETs came from non-PMETs, upgrading to higher-skilled PMET roles with residents in their thirties to fifties, forming the majority. Members of the house, our upskilling programmes, our investments in our local non-PMETs to upgrade to PMETs have borne fruit.
b. In the Financial & Insurance Services, Professional Services, and ICT sectors, EP and S Pass holders increased by 18,000. Resident PMETs increased by 172,000, again a ten-fold increase.
c. As of 2024, there were 3 to 6 resident PMETs for every 1 EP or S Pass holder in these sectors.
d. The same story holds, even if one compares only Singapore Citizens, or even local-born Singapore Citizens, to EP and S Pass holders.
e. Resident data largely mirrors citizen data, because Singapore citizens have consistently made up about 84 percent of the resident workforce. MOM has periodically released statistics and analysis on the employment outcomes of Singaporeans. Employment outcomes for Singapore citizens have been favourable over the last decade. The labour force participation rate of Singapore citizens has risen, making it one of the highest globally. This is ahead of cities in Japan, Finland and Germany. The unemployment rate of Singapore citizens has remained stable and low over the decade. And internationally, Singapore has one of the lowest unemployment rates.
B15. We should never develop a “Singaporean only” mentality – unlike what one particular member has consistently suggested. This would deprive us of talent needed to anchor global businesses that benefit Singaporeans.
a. Foreign-owned firms comprise less than one-quarter of companies in Singapore, but employ about one-third of resident workers, and 60% of residents in high-paying jobs.
b. Local enterprises have benefitted from servicing MNCs and gaining global exposure.
c. Global companies and foreigners also pay taxes that help fund Government spending on education, healthcare, and housing.
B16. Our work pass framework is carefully managed to provide access to high-quality foreigners who support productive sectors and create good jobs for locals. Ms Rachel Ong and Mr Fahmi have asked for updates on this.
B17. The ONE Pass has continued to attract global talent who create opportunities in Singapore. About 3,000 ONE Passes were issued in 2024.
a. Beyond economic contributions, ONE Pass holders have contributed to the local community – mentoring local leaders and start-ups, volunteering with social organisations, and collaborating with Institutes of Higher Learning.
b. Take Ms Savita Iyer, Chief Financial Officer for The Walt Disney Company Southeast Asia. She has worked across the globe and volunteers as a mentor with the Singapore Leaders Network Fellowship Programme, which prepares Singaporeans for regional and global leadership roles. One of her mentees is Ms Sueann Yeo, Head of APAC Private Wealth Client Relation, EQT Group. Ms Yeo feels empowered to have a female mentor who is a leader in her field, and to apply her mentor’s experience to her own leadership journey.
B18. At the EP level, we have finetuned our framework to ensure EP holders complement our local workforce.
B19. The EP qualifying salary is benchmarked to the top one-third of local Professionals, Managers, Executives, and Technicians, or PMET, wages, to ensure EP holders are high calibre. The minimum qualifying salary was increased from $5,000 to $5,600 on 1 January 2025, and there will be no further changes this year. Associate Professor Jamus Lim suggested levelling the salaries for local and foreign workers through a CPF escrow. This is unnecessary – when setting the qualifying salary, we already include CPF contributions in the local wage benchmarks. In salary terms, the playing field is fair. While the take-home pay of an EP holder may be higher because they do not contribute to CPF, this does not mean locals are paid less, as their CPF contributions go towards housing and retirement needs.
B20. Mr Patrick Tay asked for an update on how our EP framework incentivises businesses to develop a strong local core. We implemented COMPASS a year and a half ago. About 30% of the current EP stock has passed through COMPASS, and early results suggest we are moving in the right direction.
B21. Firms more dependent on foreigners of a single nationality, or foreigners in general, will have to diversify their workforce or hire more locals to pass COMPASS. Since COMPASS was introduced, the share of firms with higher dependence on foreigners of a single nationality has decreased by 7%, while the share of firms with higher dependence on foreigners generally has decreased by 15%. These firms also created 4,000 more PMET jobs for locals.
B22. At the S Pass level, we will continue to raise the quality of our workforce and safeguard employment opportunities for local Associate Professionals and Technicians, or APTs. We have benchmarked the minimum cost of hiring for S Pass holders to the top one-third of local APT wages. To ease the transition, we phased out the increase in the S Pass qualifying salary over three steps, in 2022, 2023 and 2025.
B23. In light of businesses’ cost challenges, we have moderated the increase. The S Pass minimum qualifying salary will be raised from $3,150 to $3,300. For the Financial Services sector, it will be raised from $3,650 to $3,800. Per usual, the qualifying salaries will increase with age. These changes will apply to new S Pass applications from 1 September 2025, and renewal applications expiring from 1 September 2026. The S Pass levy rate will also be standardised at $650 for all S Pass holders from 1 September 2025. We will continue to review the S Pass qualifying salary against the benchmark given prevailing economic conditions.
B24. At the Work Permit level, numbers are at an all-time high, 17% above pre-COVID levels. Sectors more reliant on Work Permit holders, such as Construction, Food Services and Accommodation, have experienced low or negative productivity growth over the last decade. Over 3,000 F&B outlets closed in 2024. But these closures were outpaced by almost 4,000 new openings, with a 4% increase in Work Permit holders. As Mr Fahmi urged, businesses need to reduce reliance on Work Permit holders by raising productivity and redesigning jobs for locals.
B25. Recognising this, the Alliance for Action on Business Competitiveness made helpful recommendations to enable businesses to hire higher-skilled workers – and go for quality over quantity.
B26. Mr Mark Lee asked about the recommendation to allow cross-deployment of foreign workers across sectors. It is a complex issue – we need to balance the potential efficiencies against the risk of circumvention of our work pass controls. We are studying this in consultation with industry partners, and will update when ready.
B27. On the other recommendations, we will adopt them to enhance our Work Permit framework.
a. First, we will remove the maximum period of employment restrictions for Work Permit holders. Previously, period of employment was capped at 14 to 26 years – causing firms to let go of experienced workers who could be at prime working age. We will also raise the maximum employment age of Work Permit Holders to align with the local retirement age, which is currently at 63. With these changes, employers can retain experienced workers who are still able to contribute.
i. Mr Jayakumar has worked at KTC Civil Engineering and Construction for 25 years, joining as an Assistant Foreman before rising the ranks to Foreman. With his wealth of experience, Mr Jayakumar mentors and trains newer workers, helps instill a strong culture of safety, and promotes best practices.
ii. KTC welcomes the removal of the maximum period of employment restrictions, which allows experienced workers like Mr Jayakumar to continue contributing to the company’s productivity and delivery of projects.
b. Second, we will expand the list of Non-Traditional Sources to include Laos, Cambodia and Bhutan, considering industry demand. This will allow firms to build a more skilled and resilient workforce.
c. Third, we will expand the Non-Traditional Sources Occupation List, or NTS-OL, to enable businesses in Services and Manufacturing to hire skilled workers from Non-Traditional Sources in more non-PMET occupations. In consultation with industry partners and unions, we have included nearly all the manufacturing operator roles recommended by the AfA. We will also include heavy vehicle drivers and cooks. As NTS-OL workers must be paid at least $2,000, this will not undermine efforts to uplift locals in these occupations.
d. Finally, we recognise companies need manpower support for transformation. The Manpower for Strategic Economic Priorities scheme provides transitionary Work Permit and S Pass quota to firms contributing to Singapore’s economic priorities. We will expand the eligible programmes and add a new pathway for firms that send locals on overseas exposure or leadership programmes. We will also extend the support period from two to three years.
B28. These changes will help us move towards a higher-quality Work Permit workforce.
a. At the same time, we recognise there are essential roles that are difficult to automate and recruit locals for. We have been providing targeted flexibilities, such as for conservancy cleaning.
b. Second Minister for Home Affairs Josephine Teo shared how MHA is carefully augmenting the recruitment pool with foreigners for Emergency Medical Services and auxiliary police officers, even as they maintain a strong local core.
c. Ms Hazel Poa also suggested allocating more foreign workforce quota to firms with inclusive employment practices. Mr Mark Lee and Mr Zhulkarnian Abdul Rahim had made similar suggestions in Parliament previously. We will study this proposal carefully, given possible trade-offs with the key objectives of our foreign workforce levers to spur business transformation and encourage firms to hire locals.
d. We are actively reviewing our Work Permit framework to drive transformation, while nuancing it to support different needs as our workforce changes. Updates will be shared in due course.
C. EMPOWERING WORKERS TO BUILD THEIR CAREER HEALTH
Building Career Health and Supporting the Broad Middle
C1. Singaporeans have a world-class education and work ethic. As our economy transforms, we are well-poised to take advantage of new opportunities.
C2. However, formal education alone is not sufficient.
a. The OECD’s Survey of Adult Skills found that Singaporeans’ literacy skills declined as early as in their mid-30s. We must do more to pursue lifelong learning.
C3. In our Forward Singapore engagements, Singaporeans shared that they looked forward to new opportunities but were uncertain how to get there. Career Health SG is our commitment to empower Singaporeans to develop meaningful and resilient careers amidst economic changes.
a. For instance, as mentioned in my MTI speech, as we transition to a green economy, we are actively reskilling workers to take on new or redesigned green jobs through programmes like the CCP for Sustainability Professionals and the CCP for Future Energy and Chemical Sector.
C4. Employers have a part in supporting their employees.
a. An SBF survey showed 60% of large companies and less than half of SMEs provide their employees with training.
b. We understand – when business is good, no time to train, when business is bad, no money to train!
c. Employers may also be unsure how to guide employees in their career journey.
d. That is why we have invested in a holistic set of initiatives to support Singaporeans’ career health. SMS Koh will elaborate on MOM’s efforts to empower Singaporeans to build career health and strengthen support for employers.
C5. Mr Patrick Tay and Mr Leong Mun Wai asked about underemployment in Singapore.
a. Mr Leong has asserted, not for the first time, that underemployment is a severe problem – that it is increasingly difficult for Singaporeans to find jobs matching their skills and aspirations.
b. I understand the anxieties and empathise with the apprehensions Singaporeans today feel in a rapidly changing world. As Mr Patrick Tay mentioned, the faster pace of economic transformation may lead to mismatches between employers’ needs and workers’ aspirations.
C6. The underemployment Mr Leong describes is referred to as skill-related underemployment, when an individual believes their job does not fully utilise their skills. However, there is no internationally accepted way to measure this. We are working with the International Labour Organisation to develop such measurements, but this international process will take time.
C7. What we can measure objectively is time-related underemployment. This is a well-defined, internationally-accepted measure – persons working part-time but willing and able to engage in additional work. Singapore’s resident time-related underemployment rate is low and stable, averaging 3.1% over the past decade, and at a low of 2.3% in 2024. This is lower than many other developed economies, like the UK and Finland.
a. Some workers have personal reasons for taking on jobs that may not match their qualifications – reasons like passion, lifestyle goals or caregiving needs. We respect these choices, and we want those who are underemployed voluntarily to have a range of jobs to choose from to suit their needs and aspirations.
b. The most common example which Mr Leong also cited as proof of underemployment are former PMETs who are now private hire drivers. However, we should be careful about using anecdotal examples and extrapolating this. Only 1.1% of our resident workforce, or about 28,000 residents, are working primarily as private-hire car drivers. MOM’s survey shows 63% do so on a “preferred basis” as they enjoy the flexibility and freedom the job provides, not because they cannot find permanent work. Similarly, a survey by Grab shows that more than 70% of their drivers have chosen to work as private hire drivers because of “flexibility of time”.
c. What about self-employed persons? MOM’s latest survey shows that 94.1% of SEPs who did own account work as a primary form of their livelihood — for example, insurance agents, real estate agents, taxi drivers, private-hire car drivers — preferred such work arrangements. Amongst them are degree holders who willingly take on jobs that typically do not require a degree because they found the current work meaningful because it suits their needs, or maybe it gives them the flexibility that they want.
C8. On the other econometrics that Mr Leong alluded to, the picture is not the dire one that he has painted. Compared to other developed economies, our residents have one of the highest median incomes and labour force participation rates, and lowest unemployment rates. Incomes of residents have risen across all percentiles in the last decade. Residents earn one of the highest wages in the world, unlike in many other developed countries where wages have either stagnated or declined. The median starting salaries of our graduates are higher than other countries like the UK and Australia, even after adjusting for purchasing power parity.
a. More locals have secured PMET jobs in the last decade, with the proportion of our resident workforce in PMET jobs increasing from 54% to 64%. This corresponds to the share of tertiary-educated workers in the resident workforce, which increased from 51% to slightly over 60% over the same period. If underemployment was widespread, the PMET share would be much lower than the share of tertiary-educated workers.
b. The incidence of discouraged workers – workers who have given up searching for work – declined from 0.4% in 2023 to 0.3% in 2024. The majority of these were seniors, whom we are helping upskill for new job opportunities.
C9. I understand this data might not reassure those who are anxious or who may have lived experiences, difficulties with their livelihoods, struggling to find purpose, meaning or roles that match their expectations.
a. Let me assure every fellow Singaporean, for those in this phase of your career journey, you are not alone. We have a wide range of programmes to help you stay up-to-date in the job market, stay employed, and seize good job opportunities. This is the spirit behind Career Health SG.
b. I hope everyone takes full advantage of these programmes to broaden your career horizons.
c. At the same time, we are committed to ensuring a fair playing field. We will continue to promote fair employment practices and take firm action against discriminatory hiring.
C10. For those facing setbacks, we have your back. From April this year, the SkillsFuture Jobseeker Support scheme will provide temporary financial support for involuntarily unemployed persons while they look for a job. This is just a transitionary support scheme and sits on top of social assistance schemes that you are already on. SMS Koh will share how eligible individuals can qualify for payouts under the scheme.
Strengthening our Pipeline of Singaporean Leaders
C11. For Singaporeans aspiring to become corporate leaders, overseas exposure is critical. Through the Forward Singapore exercise, the Alliances for Action on Business Leadership Development and on Business Competitiveness, businesses have highlighted the need for Singaporean corporate leaders with global exposure and perspectives.
C12. As stated in the Forward Singapore report, we will do more to help Singaporeans stand out as leaders in their fields. Mr Sharael Taha and Mr Edward Chia will be glad to learn that we will redouble our efforts to groom the next generation of Singapore Global Leaders on three fronts.
C13. First, as announced by PM in his Budget speech, we will expand career development opportunities for Singaporean professionals. Today, we support companies to groom Singaporean talent through overseas postings and leadership milestone programmes.
a. These programmes, offered by agencies such as Enterprise Singapore, MAS and IMDA, cover a range of sectors and support both early-career professionals and mid-career leaders. We will double the collective capacity of these programmes from 400 participants a year to over 700.
i. This will enable us to groom homegrown leaders like Andrew Chia, Head of Wealth and Retail Banking for Singapore, ASEAN and South Asia at Standard Chartered Bank.
ii. Prior to his current role, MAS supported his posting to Jakarta as CEO of Standard Chartered Bank Indonesia, as part of their International Postings Programme.
iii. This invaluable experience prepared him for his current role overseeing the Singapore franchise and eight other regional markets.
C14. Second, we will enhance overseas transition support for Singaporeans and their families.
a. We know that moving overseas and back can be difficult for families, especially on housing and children’s education. We will help to ease the transition.
b. HDB flat owners with overseas postings during their minimum occupation period can approach HDB to explore flexibilities, such as deferring the minimum occupation period if they have a clear and reasonable timeline to return to Singapore.
c. MOE has measures to support families’ education needs and preferences. Through the Assured School Placement scheme, MOE ensures that children of returning Singaporeans are guaranteed a place in a primary or secondary school with vacancies near their home. Those seeking admission to a secondary school based on merit and choice can also take part in the School Placement Exercise for Returning Singaporeans.
d. The Singapore Leaders Network, or SGLN, a leadership community established in 2022 to prepare Singaporeans for regional and global leadership roles, will provide end-to-end support for Singaporeans embarking on overseas stints. It will connect participants with in-market communities and provide guidance on housing and education matters through relevant agencies.
C15. Third, we will strengthen the ecosystem of leadership communities. These are crucial for building professional networks and accessing career resources.
a. As DPM Gan mentioned at MTI’s COS, we will enhance the SGLN to provide overseas transition support, scale up networking events, mentorship opportunities and the flagship SGLN Fellowship programme for middle to senior Singaporean managers. We will share more details soon. I encourage aspiring Singaporean leaders to join the network.
b. We will also foster cross-sector networking between SGLN and sectoral communities like the Singapore Financial Leaders Network and SG Digital Leadership Accelerator.
Extending Productive Longevity of Seniors and Strengthening Retirement Adequacy
C16. As our population ages, we need to be very forward leaning on extending the productive longevity of seniors and strengthening retirement adequacy, so that we can help our senior workers remain productive for as long as they wish to.
a. We will launch a tripartite-led effort later this year to co-develop ideas with citizens and businesses on enabling multi-stage careers for mature workers.
b. As announced by PM in his Budget speech, we will extend the Senior Employment Credit to continue supporting employers in hiring senior workers.
C17. We will help our seniors build up their retirement savings by taking the next step to raise senior worker CPF contribution rates in 2026. We will also extend the CPF Transition Offset for employers.
C18. Ms Sylvia Lim suggested changes to the CPF system, including increasing the amount members can withdraw at age 55. This will reduce members’ future monthly payouts, when they might need it most. The current withdrawal rules strike a balance between members’ immediate needs and ensuring sufficient retirement income for life.
C19. Property owners have the flexibility to set aside their Full Retirement Sum in property and cash to withdraw their Retirement Account savings above the Basic Retirement Sum. Members born from 1958 can also withdraw up to 20% of their Retirement Account savings when they turn 65.
C20. To Ms Lim’s other suggestion to require spousal consent for CPF nominations, our current approach is aligned with that for wills. The distribution of one’s assets is a personal decision. Requiring spousal consent would mean members are no longer free to choose who would receive their CPF savings upon their demise.
C21. We will continue reviewing our CPF policies to ensure their relevance. We have made good progress in strengthening the retirement adequacy of Singaporeans, through moves in the last two years.
a. We have been raising the CPF monthly salary ceiling to keep pace with salaries. It will be raised further from $7,400 to $8,000 from 1 Jan 2026.
b. Under the Majulah Package, about 1.6 million Singaporeans received the MediSave Bonus in December 2024. About 800,000 received the Retirement Savings Bonus. From this year, eligible working seniors will receive the annual Earn and Save Bonus as long as they work.
C22. This is how the Government has enhanced Singaporeans’ retirement adequacy even as we study moves such as the Lifetime Retirement Investment Scheme which Mr Louis Chua mentioned. SMS Koh will share more on our initiatives to help seniors build their retirement savings and stay engaged in the workforce.
D. FOSTERING INCLUSIVE AND SAFE WORKPLACES
D1. It is also important that we foster fair and inclusive workplaces, so all workers share in the fruits of growth.
D2. We will continue to uplift our lower-wage workers. To help them upskill for better jobs, we will enhance Workfare Skills Support. We will also enhance the Progressive Wage Credit Scheme to support employers in wage increases. SMS Zaqy will share more.
D3. We want to foster inclusive workplaces where everyone can contribute, even with different work arrangements. We will enhance the Career Conversion Programmes for the reskilling of mid-career new hires and employees on flexi-load jobs.
D4. For persons with disabilities, we have supported firms in making reasonable accommodations, including the Employment Support for Employers to hire Persons with Disabilities scheme, and ongoing work on a Tripartite Advisory. We will also help them build an adequate nest egg. In his Budget speech, PM Wong announced the expansion of the Matched Retirement Savings Scheme to include Singaporeans with disabilities regardless of age, so long as they meet certain criteria. We will also continue to support the employment of ex-offenders. MOS Gan will share more.
D5. We have improved our Workplace Safety and Health outcomes to be on par with developed countries, but must stay vigilant. SMS Zaqy will share more.
D6. As economic transformation speeds up, we hear concerns on worker protections. We will embark on a review of the Employment Act with tripartite partners, to ensure that we continue to strike the right balance between protection for workers and preserving flexibility for businesses. We thank Mr Patrick Tay and Mr Louis Ng for their suggestions on the Employment Act, which we will consider in our review. We will share more later this year.
D7. Ms Jean See asked about support for employees when companies undergo mergers and acquisitions. These companies must plan retrenchments and contract cessations fairly, based on objective and consistent criteria, following the Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment. To guide employers and strengthen their capabilities, we have built up an ecosystem of support through the Institute for Human Resource Professionals and SNEF.
D8. In his MTI cut, Mr Mark Lee suggested enhancing CCPs for employees redeployed after mergers and acquisitions. As I said in my MTI speech, CCPs already offer substantial support for such workers, especially for mature workers who may need more help during business transitions like mergers. Nonetheless, we will study this.
D9. We also thank Ms See for her points on the fair use of AI. Today, all employers must comply with the Tripartite Guidelines on Fair Employment Practices, regardless of whether AI is used in their employment decisions. The Tripartite Alliance for Fair and Progressive Employment Practices has yet to encounter complaints of discrimination involving AI.
E. MANDARIN SPEECH
E1. Mr Chairman, I will now speak in Mandarin.
E2. 如孔子说 ：“三十而立，四十而不惑，五十而知天命”。 同样，人力部会帮助国人在每个人生阶段, 实现职业理想。
i. 对于初入职场或想转换工作的员工，我们会激发你的职业潜能。例如，我们加强了转业计划，帮助更多员工，包括在灵活工作量岗位的员工，提升技能。
ii. 如果你是在职场上打拼的专业人士，想更上一层楼，我们会帮你累积海外工作经验，拓展你的专业人脉。
iii. 年长员工，请放心。我们会帮你继续就业，满足你的基本退休需求。为了支持雇主聘请年长员工，我们延长了年长员工就业补贴。明年，我们会进一步提高年长员工的公积金缴交率, 和延长过渡性公积金抵消计划。我们也通过共同前进配套、乐龄补贴计划、和退休户头配对填补计划，尽力帮助国人累计退休储蓄，安享晚年。
iv. 人力部也关注低收入员工。我们加强就业技能计划，帮你接受培训。为了支持雇主为你提高薪金，我们也加强了渐进式加薪补贴计划。
v. 我们会建立安全，包容性的工作环境，确保本地和外籍员工之间有公平竞争的环境。本地与外籍人才,各有千秋，我们携手合作，就能为新加坡做出贡献。
vi. 企业方面，我们会支持你转型和培养人才，继续蓬勃发展。
E3.这是人力部对国人的承诺。政府会与企业和员工共同努力，创造更美好的未来！
F. CONCLUSION: SEIZING NEW OPPORTUNITIES TOGETHER
F1. In conclusion, the global order underpinning peace and prosperity has been upended in a matter of weeks. Supply chains are shifting, technology is advancing rapidly and there is great uncertainty.
F2. But Singaporeans have the mettle and drive to navigate this turbulence, and find new opportunities.
a. We may be small, but we are nimble. We have never been defined by our limits, but by how we respond to them and how we continue to respond to them.
b. Through COVID-19, we have seen the adaptability and resilience of our businesses even as we weathered crisis after crisis.
F3. In today’s world, the idea of a single job or rice bowl may no longer hold true. Change is not just constant. It is accelerating and new challenges will always emerge.
a. But we can forge something stronger: the resilience, adaptability and courage to take on whatever comes next.
b. When one door closes, we can carve out a new path. If the ingredients change, we can master new recipes.
c. We will walk with every Singaporean to help you journey through change, and realise your fullest potential so long as you are willing to do so
F4. While we may not be certain of what lies ahead of us, one thing is certain, the Government will never let you down. With the Government, workers, and businesses coming together, we will achieve a brighter future for Singapore and Singaporeans.