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Mr Speaker, this Bill comes at a time when our workforce is navigating significant uncertainty, amid economic pressures and disruptive technological change. Jobs are being redesigned, new roles are emerging, and existing roles are evolving at a faster pace than ever before.
For many workers, especially mid-career and lower-wage workers, these changes bring both opportunity and uncertainty. In this context, the need for a more integrated and responsive workforce development system is clear.
By bringing together SkillsFuture Singapore and Workforce Singapore under a single statutory board, this Bill strengthens coherence across skills development, employment facilitation, and career progression.
The Labour Movement supports this direction.
Integration Across the Workforce Lifecycle
Mr Speaker, workers do not experience their careers in neat and distinct stages. Skills acquisition, employment, and progression are closely interlinked.
Bringing these functions together within a single agency can reduce fragmentation and improve coordination.
For workers, this should mean a more seamless experience, where access to career guidance, training, and job placements are better aligned.
As this integration is implemented, it will be important to ensure that processes remain streamlined and responsive to both workers and employers.
Better Support for Lower-Wage Workers
In particular, we must ensure that this more integrated system delivers for those who need it most.
Mr Speaker, lower-wage workers must benefit meaningfully from this integration. They often face greater constraints in accessing training and career opportunities. The system must therefore be designed with their needs in mind.
It should be accessible, adequately supported, and outcome-focused, so that workers can upgrade without undue strain, and see clear improvements in employment and wages.
Strengthening the Progressive Wage Model
In this regard, the Progressive Wage Model, or PWM, remains a key pillar in our efforts.
PWM has uplifted lower-wage workers by linking wages to skills, productivity, and career progression. It has also contributed to sustained wage growth across several sectors.
For PWM to remain effective, it must be supported by a well-aligned skills ecosystem.
In this regard, I have three suggestions:
a. First, I urge the new Agency to align training pathways more closely with PWM job ladders, so that workers can clearly see how skills upgrading leads to wage progression.
b. Second, I encourage continued collaboration with tripartite partners to keep sectoral skills frameworks current and responsive.
c. Third, I call on the new Agency to expand workplace-based training, enabling workers to upgrade while remaining employed.
At the same time, sustained wage growth depends on continued productivity gains.
Mr Speaker, I would like to ask how the new Agency intends to support companies, especially SMEs in Progressive Wage Model (PWM) sectors, to undertake job redesign and productivity improvements, and better wage outcomes for our lower-wage workers.
Can it provide more structured advisory support, practical tools, and targeted funding to help companies adopt technology and better match skills to jobs?
This will be key to ensuring that productivity keeps pace with wage increases, and that PWM remains sustainable over the long term.
Leveraging the Careers and Skills Passport
Building on this link between skills and progression, let me turn to the Careers and Skills Passport that was introduced in 2024 and also mentioned by the Minister in his opening speech.
This initiative can complement PWM, particularly in sectors where wage progression is tied to clearly defined skills ladders.
The passport provides workers with a consolidated record of their skills and experience, improving both transparency and portability.
However, one key question is whether lower-wage workers – especially those in PWM sectors – are actively using the passport today. If not, what more can be done to raise awareness, improve accessibility, and encourage adoption among this group?
We must ensure that tools like the Careers and Skills Passport are not just used by those who are already ahead, but also by those we most want to uplift.
How does the new Agency plan to integrate the passport with sectoral skills frameworks, particularly in PWM sectors?
And how will it support employers – especially SMEs – to use the passport more effectively in hiring and progression decisions?
Stronger and more inclusive adoption can improve skills recognition and job matching outcomes.
Enhancing Return-to-Work Pathways
Beyond supporting workers in employment and progression, we must also ensure that those who step out of the workforce can return with confidence.
Mr Speaker, as the new Agency builds pathways to support individuals returning to work, this must include not only caregivers, but also workers who have experienced injury or sudden illness.
As I have previously highlighted in this House, returning to work is often not straightforward. Workers may face reduced capacity, loss of confidence, and uncertainty about how to re-enter employment.
A setback in health should not become a permanent setback in employment.
At the same time, employers may be unsure how best to accommodate such workers.
Recovery is not just a medical issue – it is also a workplace issue. We therefore need a more structured and coordinated approach.
I would like to encourage the new Agency to strengthen support for those returning to the workforce in three areas:
a. First, job redesign and matching. Jobs must be adapted to workers, just as workers adapt to jobs. Can the Agency work more closely with employers to redesign roles and identify suitable job opportunities?
b. Second, skills recovery and transition. How will the new Agency support targeted training and career guidance to help these workers re-enter the workforce?
c. Third, employer support and incentives. Can the Agency consider introducing targeted support for flexible work arrangements – such as a “Flexi-Work” grant – to encourage modified roles, reduced hours, or phased return-to-work options?
A phased return to work can make the difference between dropping out and staying in the workforce.
More broadly, we must move from ad hoc support to a structured return-to-work system, so that workers are not left behind due to unforeseen life circumstances.
Conclusion
Mr Speaker, this Bill lays the foundation for a more integrated and responsive workforce development system.
The Labour Movement supports its intent.
Success will be judged by how well we improve the lived experience of workers – whether they can move with confidence between jobs, whether skills upgrading leads to real wage progression, and whether lower-wage workers see sustained improvements in their livelihoods.
If we keep these outcomes at the centre of our efforts, this reform will strengthen both our workforce system and the compact between workers, employers, and the Government.
Mr Speaker, I support the Bill, and I look forward to the Minister’s clarifications on these points.
