Introduction
Mr Deputy Speaker, Sir, I rise to speak on the motion before this House, and I support the amendments proposed by honourable member Mr Edward Chia.
The aspirations expressed in this motion to support local businesses, help workers succeed, build a Singaporean footprint overseas, and ensure shared prosperity are aspirations that all of us in this Chamber can support.
Indeed, these have been central to the work of NTUC, our labour movement and our unions, and our tripartite partners for decades. They are also aligned with the spirit and direction of the Economic Strategy Review, or ESR.
For many Singaporean workers and business owners, the future economy is already being felt in very real ways in uncertain demand, rising costs, sharper competition, new technologies, and industries that are changing faster than ever before.
I am now into my 25th year in NTUC and currently serve as Executive Secretary of the United Workers of Electronics & Electrical Industries. Over the years, I have walked with workers through many storms, from SARS to the Global Financial Crisis, to the COVID-19 pandemic. Every crisis was different. Every transition was painful in its own way. But the lesson was the same: workers must never be treated as collateral damage in economic change.
At every phase of Singapore’s development, we needed clear national direction, and most importantly, the assurance that those who work hard, adapt, and contribute will not be left behind.
The ESR is our latest national roadmap to create a broader range of good jobs, stronger enterprises, and growth that benefits Singaporeans fairly and tangibly.
Today, I want to focus on three priorities or what I call the 3 ‘S’, that are essential to build an economy for all:
Safeguard the Rules
First, safeguard the rules. Part (a) of the motion speaks of an economy where "workers thrive". But workers cannot thrive on aspiration alone. They need fair rules, fair opportunity, and fair protection. When the economy changes faster than workers can adapt, many feel that the odds are stacked against them. Our duty is to level the playing field for them to compete fairly.
Artificial intelligence, or AI, will disrupt jobs at a speed and scale that we have not seen before. It can raise productivity and create new possibilities. But if poorly managed, it can also widen insecurity, compress career pathways, and place too much risk on workers. Workers must not be asked to carry the burden of this transition alone.
There are two topics in this space. Firstly, on retrenchment benefits and unemployment support. On the topic of mandating retrenchment benefits, the NTUC and the Labour movement, including myself, have been working with tripartite partners to ensure that no worker is left behind. The NTUC and labour movement, including many of our union leaders and unions have been negotiating collective agreements, unionising companies to ensure that they are well protected in the event that there is a layoff and retrenchment benefits can be paid out.
In fact, we have such strong existing mechanisms such as Conciliation at Ministry of Manpower, and even the Industrial Arbitration Court, a very unique creature of statute, which I appeared before on multiple occasions to support and obtain retrenchment benefit payouts for workers, including PMEs (Professionals, Managers, Executives).
We have been trying to lobby, myself included in this house, over the past decade, and as early as this year, for further strengthening of the retrenchment protection regime here in Singapore. It is in the common intent of everyone, as I am sure in this house, to ensure that affected workers are taken care of, as every worker matters.
The tripartite partners, as I am involved in the negotiations for the Employment Act, as well as all the relevant statutory provisions and advisories, remain open to negotiating. Discussions are underway on whether it is the Employment Act or reviewing the tripartite advisory to strengthen it to a tripartite guideline, which I've raised before in this house. And even stronger measures against companies that flout or failed to comply with advisories. I think these are things that we have been raising and I believe it's a journey. A journey which requires all our tripartite partners to work closely together so that we achieve what we always say a win-win-win outcome.
It's always in NTUC and labour movement interest and our agenda to look after workers and their families, especially if they are affected by layoffs. There are a whole plethora of measures and support measures to help them land the next job, and to support them in the company as well as on many occasions. I have done this in the last couple of years in my capacity as ES (Executive Secretary) of the UWEEI. I have been very involved in the many layoffs that you see in the manufacturing sector.
The key is we will continue to lobby and advocate on behalf of our workers. More importantly, to work with our tripartite partners closely to ensure that we have a regime and a mechanism.
We are also observing that the tripartite partners are very open to see new ways and mechanisms to overcome this; to ensure no worker is left behind in the event of a layoff or retrenchment.
On the topic of unemployment insurance support, it is something I spoke about more than a decade ago, lobbying for some form of unemployment support for workers in Singapore. I am very happy that it has been introduced last year on 26th April. I remember the fateful date when the SkillsFuture Jobseeker Support Scheme was implemented.
I think what is unique about the scheme is that unlike an unemployment insurance where the premiums to be paid by both employers and employees, this is a situation where government picks the tab and gives that needed support through and with active labour market policies.
That is something which will lessen the burden on workers having to fork out premiums. At the same time, in this same house, I also lobbied for this area to be further expanded and reviewed. Now that we are seeing in the last 24 months more Professionals, Managers, and Executives (PMEs) being affected by layoffs. So, I think that is an area which we can review if the income threshold of the SkillsFuture Jobseeker Support Scheme can be raised.
It is currently at $5000 (per month) and whether it can be raised to the median (monthly) salary of PMEs, I think that is one avenue to explore. Even another new scheme to support PMEs now that we know that they are equally vulnerable as rank-and-file workers.
Local PMEs I must say are a definite group which I have consistently spoken up for in this House. They form the broad middle of our workforce. They are also the most exposed to technological disruption yet may not always enjoy sufficient representation and protection.
Over the years, NTUC has worked closely with our tripartite partners to build stronger institutional safeguards. For example, from the COMPASS framework for Employment Passes to the newly enacted Workplace Fairness Act. I am therefore heartened that the ESR recognises PMEs as a group deserving enhanced support, and that it prioritises investment in AI technologies that augment rather than displace workers. I think this is the right direction.
Earlier this year, MOM, NTUC, and SNEF announced the formation of the Tripartite Jobs Council. Initiated by NTUC, this Jobs Council brings together unions, employers, and Government as a central node to coordinate existing and new programmes to help workers reskill, and to help businesses redesign jobs responsibly so that AI becomes a tool for uplift, not displacement. The difficulty of landing a new job is not a new discovery. I've raised this on numerous occasions.
We must pay particular attention to younger PMEs entering the workforce. They may be among the hardest hit if AI compresses entry-level roles and creates a "broken rung" of sorts at the very start of their careers.
We unanimously agree that if our young graduates cannot get that first meaningful foothold, their long-term progression may be affected. We cannot allow the first step of a career to become the weakest link in our labour market. This is why I have lobbied also in this house for coaching, mentoring and expanding the SkillFuture credits. For use in the area of coaching and mentoring, which has been supported to help those transiting from school to work effectively and efficiently and seamlessly.
Through the GRIT programme, the Graduate Industry Traineeships programme, NTUC works hand-in-hand with Government and employers in sectors such as Financial Services, Manufacturing and ICT to give young graduates structured, industry-relevant experience. Beyond the traineeship period, NTUC and SWDA (Skills and Workforce Development Agency), through e2i and Careers Connect, help these young workers move into full-time roles and build confidence with AI tools so that they are not just job-ready for today, but career-ready for tomorrow.
I suggested for this scheme before in this house to be further expanded and to cover more areas and more sectors, and maybe a review if it should be made permanent to really help the young and new job entrants entering the job market remains an issue and challenge.
Share the Gains
Second ‘S’, share the gains. Part (b) rightly highlights the importance of healthy domestic demand. But for a small and open economy like Singapore, external demand is equally critical. According to the Singapore Business Federation, overseas revenue accounts for more than 40% of total revenue for half of our businesses. I am glad that the ESR has identified a dynamic enterprise ecosystem for Singapore-based companies to succeed globally as a key thrust. Domestic demand and external demand are not competing choices. We need both engines working together.
External demand helps Singapore grow the pie. But growth alone is not enough. The real test is whether that growth translates into better jobs, higher wages, stronger skills, and expanded opportunities for Singaporean workers and local businesses.
Global enterprises locate in Singapore not only for our domestic market, but to tap growth in Asia and beyond. But if Singapore is to remain a trusted global node, our workers must also move up the value chain. This is where the NTUC Company Training Committees, or CTCs, play a critical role.
Since 2019, our CTCs have brought company management, workers, and union representatives together to drive business and workforce transformation. In 2022, the Government provided NTUC with one hundred million dollars to scale up this initiative, and subsequently another two hundred million dollars after it showed results in producing real shared gains for workers. When companies modernise or adopt new technologies, our union leaders sit down with management. They ensure workers are trained for higher-value roles, and that productivity gains are reflected not only in company results, but also in workers’ pay packets and career progression.
Let me give a practical example from our NTUC Electronics, Marine and Engineering Cluster. Through a CTC Grant project, a company introduced automation to its production process so it could take on more orders. But automation did not mean displacement. Union and management worked together on a structured training roadmap. Twenty-four workers were reskilled, production capacity improved by 12%, and more importantly these workers received a 5% wage increase, over and above their annual increment, in addition to career development support.
To date, more than 15,000 workers have benefited from NTUC's CTC Grant projects, with workers in these projects receiving an average wage increase of 5% above their increment through this scheme. Wage increases in tandem with productivity increase.
This is what real sharing of gains looks like. Not theoretical redistribution, but negotiated, sustainable outcomes where better productivity leads to better pay. This works in tandem with the National Wages Council, a tripartite body, which responds to the uneven and sometimes unpredictable outlook for different sectors and different companies.
Strengthen our Singaporean Core
The last ‘S’, strengthen our Singaporean Core. As our economy globalises, we must ensure that Singaporeans are not bystanders to our own success. We need both global enterprises with substantial operations here, and dynamic local companies with the ambition to venture abroad. But wherever Singaporean capital flows, Singaporean talent must flow too, to lead, not just to support. Singaporeans must have a fair shot at leadership, regional exposure, and global careers.
Local SMEs cannot grow well, and grow fast, on the domestic market alone. In high-tech manufacturing and commercial services, many local firms have scaled by first becoming trusted partners to global MNCs based in Singapore, then using that credibility to venture into overseas markets, including high-tech and industrial parks in Southeast Asia, China, and India. They build operational strength at home so that they can seize opportunities abroad.
Government schemes are important enablers. The Market Readiness Assistance grant helps SMEs co-fund up to fifty percent of eligible overseas market entry costs, capped at one hundred thousand dollars per new market. The Enterprise Development Grant supports SMEs in building core capabilities to compete internationally. These schemes help our local enterprises take the first step abroad with greater confidence.
But as Singaporean capital expands overseas, we must be intentional about building Singaporean corporate leaders. Our workers and PMEs must not only support regionalisation from the back office. They must be given the chance to lead, to manage, to build networks, and to represent Singapore confidently in overseas markets.
I am glad that the ESR has recommended expanding the Overseas Markets Immersion Programme to give young professionals overseas and leadership exposure, and to support their progression into international postings. I encourage the Government to monitor and strengthen the proportion of Singaporeans in management positions, so that local PMEs have fair opportunities alongside their foreign counterparts.
Conclusion
Mr Deputy Speaker, Sir, building an economy of the future that works for all is not a slogan. It is hard, continuous, collective work. It is work that NTUC and our unions have carried out for decades, sometimes visibly, sometimes quietly, but always with one purpose which is to safeguard the rights, wages, welfare, and work prospects of our workers.
In fact, I want to take this opportunity to thank my fellow union leaders who stand in line, to lend a hand, and to watch their backs, and give a shoulder to cry on sometimes in events of ups and downs in the economy.
But make no mistake: tripartism is not easy. Balancing the needs of workers, businesses, and the nation is not easy. But precisely because it is hard, it forces us to find practical solutions that endure. The ESR gives Singapore a comprehensive roadmap to stay globally competitive. Our task is to make sure that this roadmap is also worker-centred, inclusive, and fair.
So let us continue to strengthen this practical, tripartite partnership. Let us Safeguard the rules, Share the Gains, and Strengthen our Singaporean Core, anchored by a strong and lasting tripartite relationship.
I support the amendments by honourable member Mr Edward Chia to the Motion.
Thank you, Mr Deputy Speaker.
