Mr Speaker Sir,
Thank you for allowing me to join the debate.
Introduction
When DPM Lawrence Wong delivered the Budget two weeks ago, my immediate reaction as the chairperson of the Manpower GPC was that it was a budget that had workers’ interests at the very core. Headlined by the SkillsFuture Level-Up programme with a second subsidised diploma, generous training allowance, workers would find significant help in the workplace.
The natural question was whether the budget had missed out on certain aspects of supporting workers. And to ask for them during the debate.
Yet, we do know a single year’s of budget does not make for robust and thoughtful national capabilities.
Each successive year’s budget should build on each other. It is worth examining how this term of Government has built up critical employment infrastructure.
Budgets in 14th Term of Parliament
The budgets from 2020 to 2022 were focused on preserving lives and livelihoods.
For example, the Jobs Growth Incentive (JGI) was highly successful in supporting local hires during Covid. From FY2020 to 2021, S$6.2 billion was spent on the JGI to support local hires. It supported close to 709,000 local hires by 83,000 firms between September 2020 and February 2022 .
It also led to an increase of about 90,200 local hires.
This roughly translates to a significant spending of $8,700 per local worker who has benefitted from the JGI.
Similarly, the SGUnited Jobs and Skills Package provided jobs, traineeship opportunities and skill enhancement programs.
Over FY2020 to FY2021, S$2.2 billion was set aside for SGUnited. From April 2020 to April 2022, more than 200,000 local jobseekers benefitted. Around 8 of our 10 trainees secured employment.
There was further progress in creating a more equitable society. Income inequality is now the lowest in over two decades.
This is owed in no small part to the schemes to uplift lower-wage workers (LWW) through expanding the Progressive Wage Model (PWM) and reforming the Local Qualifying Salary (LQS) as MP Melvin Yong had pointed out.
The Progressive Wage Credit Scheme (PWCS) was launched in 2022 to support employers to adjust to the expanded PWM.
In Budget 2024, DPM announced a further $1 billion top up to the PWCS.
This is complemented by raising the minimum qualifying salary under the Workfare Income Supplement Scheme (WIS). WIS was enhanced in 2020, 2023, and will be again, in 2025.
Collectively, this will benefit around 500,000 Singaporeans.
Enabling employment credit was also created in 2023 to help workers with special needs or disabilities.
There were also decisive moves on Workplace Fairness and Platform Workers over this term of government.
The net effect is a tapestry and trampoline of support schemes that helps workers of all ages, abilities, and skills. This was built across successive budgets, working with the unions and employers.
Indeed, we must always find ways to improve on the budgets to help Singaporeans improve further. This is our duty as parliamentarians. But we can do so today so from a place of strength and comfort.
A. FORGING AHEAD
It is from this foundation of strength that I would like to examine how we could support our younger workers.
Global uncertainties such as shifting supply chains, geopolitical tensions have resulted in fewer jobs being created.
The Joint Autonomous Universities Graduate Employment Survey showed that the proportion of university graduates who found employment within six months of taking their final exams dropped to 89.6 per cent in 2023 from 93.8 per cent the year before.
Our younger people are naturally anxious about transiting to the workforce.
Our yearlong #EveryWorkerMatters Conversations run by NTUC in 2023 also reflected similar sentiments.
This year’s Budget builds capabilities to help our young Singaporeans to succeed. Investment in innovation and training systems can bring in new enterprises to create better jobs for them. So, the future is a bright one.
However, young Singaporeans still face two rather formidable challenges.
One, transition to an economy shaped by Artificial Intelligence and Climate Change.
Two, navigating the workplace that ironically has more options and thus, harder to land on a desired career.
I will take them in turn.
(1) Just transition into the new economy
We are at the doorsteps of a seismic shift in the economy with the rise of artificial intelligence.
Just not too long ago, coding was deemed as the skill of the new economy. Even I was tempted to take up coding, but I couldn’t really do it. It was almost a must-have for young people to seize new opportunities and thrive.
Yet today, AI can already perform entry-level coding easily and some even for free. Through ChatGPT you could do it, that I could do. We can only imagine that it would be capable of, if not already so, sophisticated coding.
What does that leave the many students and young people who have been learning coding in school? And this is just coding that might be adversely impacted.
Most young people would need to work with AI regardless of their occupations or industries in the future. How do they work with the AI co-pilot to become more creative and better in exercising human judgement?
AI would lead to job creation and job losses. AI advances and adoption by companies would be non-linear and, therefore, highly disruptive.
The core job requirements and skills for many jobs would have changed.
There will a greater emphasis on analysis, working with clients, and strategic thinking.
For our young Singaporeans and workers, they would either be riding this tremendous wave or be sunk by it. Their era would be defined by AI.
How can we ensure that our youths are AI-ready? Should IHLs include AI as part of all courses? And do all our workers and educators now need to have AI-booster courses?
The next challenge is one of the Green Transition and the impact on jobs and training.
Take for example our nation’s vision to achieve 100% cleaner energy vehicles by 2040.
ITE currently offers automotive technology and engineering courses which primes its students with appropriate skillsets for Electric Vehicles (EVs).
However, what would happen to our workers who only have skills to repair Internal Combustion Engines (ICE) vehicles? Those students with mechanical engineering skills would need to acquire new skills quickly.
Should they not be able to transition fast enough, they would be out of work.
We must embrace the Green Transition whether we like it or not. Man cannot reverse climate change.
Today, 52% of Singaporeans, or young Singaporeans, foresee the need to upskill to adapt to the rise of AI.
They might need to retrain shortly after graduation if they find themselves on the wrong side of the economic transition.
At the heart of this endeavour lies the concept of a "just transition." This is more than just adapting to economic shifts; it embodies a worker-centric approach to ensuring that the transitions our workers undergo are fair, equitable, and sustainable. This was also the point raised by MOS Desmond Tan.
To this, I wish to speak on key areas ensuring a “just” transition to the new economy for our young workers.
Second Diploma subsidies – to extent to youths in select industries
Over the past three budgets, I have called on the government to provide subsidies for Singaporeans to pursue a second degree or diploma to remain future ready.
I am heartened with the government's move in Budget 2024 to enable middle-aged and above Singaporeans to receive full government subsidies to pursue a second diploma.
There is also the SkillsFuture Level-Up programme with its SkillsFuture credit of $4,000 and monthly training allowance of up to $3,000.
Our workers and unionists appreciate that these are substantive support to transit into new careers.
SkillsFuture & Youth
As part of a Just Transition for younger workers in trades that would be adversely impacted by large structural shifts of AI and Green Transition, I hope that the government can provide similar support to our younger workers.
For example, Darren is a 24-year-old ITE student studying business administration. He aspires to open an automotive workshop in the future but he would need automotive skills especially those pertaining to Evs. He would need support to pick up these skills to make the career transition. skills to make the career transition.
Younger Singaporeans ITE and Polytechnic diploma holders might take as long as 5 years before being able to tap on their SkillsFuture credits.
Furthermore, for those affected or displaced by AI or the green transition, they would arguably need the same support as those in their middle-age.
I hope that the government can consider lowering the SkillsFuture credit eligibility age down from the current 25 years old to empower more younger people to upskill and reskill. And to provide subsidised diplomas for those affected by AI and Green Transition.
Beyond this, there would be instances such as in legal services where a degree is needed for career transition. Would the government consider also providing subsidies for second degrees?
Next, companies must be fair and transparent with their employees in the use of artificial intelligence and how it would impact them.
It is not desirable to stand in the way of progress.
But it is also equally undesirable to have sudden dislocation and displacement of workers.
The failure to manage the transition well might cause disturbances as large as what the US automakers faced with strikes by workers concerned by the job losses due to transition to electric vehicles. It was also what happened to the Writers Guild of America strike.
(2) Comprehensive support system for our youth
Just Transition also requires providing younger Singaporeans with more opportunities for transition.
Career Trials for youths
Career trials for younger Singaporeans can help in navigating a complex workplace.
WSG Career Trial encourages jobseekers above the age of 16 to go through a short-term trial before considering formal employment. The supply and diversity of these trials are needed to cater to the broad interests of our students. Could the government consider enhancing subsidies to host companies to increase the supply of such career trials?
NTUC has engaged more than 10,000 young people in a landmark Youth Task Force report to develop ways to help our younger Singaporeans. It launched the NTUC Career Starter Lab to enable our younger people to transition smoothly to the workforce via career trials and mentorships. The Labour Movement will always do its part alongisde the government to help our young workers.
Overseas work exposure
Lastly, on overseas work exposure. It can equip our youth with invaluable skills and opportunities to pivot when necessary. We need to increase both the number and diversity of opportunities.
For example, MinLaw inked the MOU for the Singapore-Shanghai Lawyers Exchange Programmes. Lawyers can learn new skills from counterparts and enter new markets. I hope that there can be more of such partnerships by other Ministries and businesses, especially that of our MNCs.
The Global Ready Talent Internship Programme encourages Singapore enterprises to train young local talent through local and overseas internships. Could the Ministry look into expanding the reach of the programme to more host companies, whether based in Singapore or otherwise? Perhaps there is scope to remove the 30% local shareholding condition to expand the reach of the programme to our MNCs.
Conclusion
Mr. Speaker Sir, the future is tumultuous but we can master it as we always had. In this new chapter, we need to help our young workers to put on the full armour of adaptability and resilience in a world whereby they may be assailed on all fronts.
We need to help our young workers understand the new economy’s impact on their livelihoods and strengthen their career paths. In doing so, we can forge a path towards a more just, equitable, and sustainable future. NTUC will remain alongside each and every worker through such uncertain times because #EveryWorkerMatters.
Mr Speaker, I support the motion.
