Model ID: 9f353448-5413-4b3f-8353-016aa78df87c Sitecore Context Id: 9f353448-5413-4b3f-8353-016aa78df87c;

Speech at the Debate on the Motion of Thanks to the President 2025 by Melvin Yong, NTUC Assistant Secretary-General and MP for Radin Mas SMC on 22 September 2025

22 Sep 2025
Model ID: 9f353448-5413-4b3f-8353-016aa78df87c Sitecore Context Id: 9f353448-5413-4b3f-8353-016aa78df87c;

Introduction

Mr Speaker, I stand in support of the motion. I would like to thank Mr President for laying out the key priorities for this new term of Government. I agree with Mr President that our nation’s success must never be measured by economic growth alone. It must be judged by how we support the vulnerable, and how we enable every Singaporean to contribute, and to live with dignity.

As we begin the 15th Parliament, it is timely to reflect on how far we have come in uplifting our lower-wage workers, and more importantly, the work that still lies ahead.

Over the last decade, we have made significant strides in improving the wages, welfare and work conditions of our lower-wage workers.

Between 2019 and 2024, the real wages of workers at the 20th percentile grew by 5.9% — outpacing the 3.6% growth for the median worker. This shows that our policies are lifting those at the lower end of the wage ladder.

Some ask why Singapore has not adopted a universal minimum wage. The answer lies in the strength of our Progressive Wage Model (or PWM). Unlike a single wage floor applied across the board, PWM is tailored to specific sectors, covers over 40 job roles today, and enables workers to progress through skills and productivity.

Today, more than 155,000 workers across 9 sectors and occupations are covered by PWM.

Take the cleaning sector. A decade ago, a general office cleaner earned about $600. Today, the entry wage is at least $1,910. Workers like Azizah Abdul Majeed, a single mother who upgraded herself from part-time cleaner to team leader, show how PWM creates dignity, career progression and better livelihoods.

In the security sector, the basic monthly wage of an entry-level security officer was about $1,100 in 2016. From 1 January 2025, that basic wage rose to at least $2,870, and by 2028 it will further increase to about $3,530. Many officers are now running digital systems and handling crowd-control duties—roles now seen as skilled professions.

Just as important are the personal stories behind these numbers. One example is Sivamani Taigrajan, whose father once worked long hours as a security guard to support the family. Today, as a Security Supervisor, she leads a command centre, embraces new technology, and inspires others to join the industry. More than higher pay, she now has pride and purpose in a profession that has been transformed by PWM.

At the national level, inequality has narrowed. The Gini coefficient has fallen from 0.464 in 2014 to 0.435 in 2024 before transfers and taxes, and further to 0.364 after transfers and taxes.

These achievements were not overnight. They were built on tripartite trust and tough negotiations. In 2021, the Tripartite Workgroup on Lower-Wage Workers put forward 18 recommendations. I am glad to note that by July 2023, all 18 recommendations were implemented. Each year, the National Wages Council continues to issue guidelines with a strong focus on uplifting our lower-wage workers.

Challenges That Remain

While progress has been made, the journey is far from complete.

Inflation continues to weigh heavily. NTUC’s June 2025 Survey showed that lower-income households are most worried about the rising costs of food, groceries and healthcare. Many are also supporting both young children and elderly parents.

Workers know upskilling is key, but often struggle to identify relevant training or meaningful career opportunities. I have spoken about this before, in this house, highlighting the two common questions that workers have – train what, train for what.

Long working hours remain an issue. In security, officers still work 12-hour shifts, six days a week. Higher wages cannot come at the expense of health, wellbeing and family life.

The talent pipelines remain thin. Younger Singaporeans are not joining PWM sectors in sufficient numbers, raising concerns about long-term sustainability for the service providers.

Implementation challenges also persist. PWM wage negotiations are becoming tougher in today’s economic climate, and close monitoring is needed to prevent uneven application or cost-shifting.

These challenges make it even more critical that our tripartite partners stand firm in upholding fair and sustainable outcomes for workers.

Our Relentless Commitment Going Forward

Amidst these challenges, NTUC and our unions will continue to work hard to ensure that wages keep pace and workers are not left behind.

Beyond wages, our unions play a hands-on role: negotiating fairer workplace conditions, supporting upskilling, and providing aid through the NTUC U Care Fund for families facing financial stress.

But our mission is far from complete. Income at the 20th percentile is about 55% of median income—short of the OECD benchmark of two-thirds. To close this gap, NTUC believes it is timely to convene a refreshed Tripartite Workgroup on Lower-Wage Workers to chart the next bound of progress. This group must be bold, ambitious, and focused on both wages and sustained career progression.

NTUC will also seek to broaden and deepen the impact of the Progressive Wage Model in two key areas.

First, by placing stronger emphasis on productivity as the enabler of sustainable wage growth. For example, 800 Super Waste Management, working with the Built Environment and Urban Trades Employees’ Union (BATU), deployed AI-enabled recycling bins under a Company Training Committee framework. This boosted productivity, reduced contamination, and more importantly enabled higher-value jobs with a 5% pay increase for 100 workers.

Second, by expanding PWM into more sectors. One area that I have raised before is Pest Management—an essential service in public health but still plagued by low wages and high attrition. A PWM here would create structured career and wage ladders, strengthening both livelihoods and the resilience of the sector.

Beyond PWM, the Local Qualifying Salary (LQS) ensures that firms hiring foreign manpower also uplift local wages. The last increase brought the threshold to $1,600 in July 2024. NTUC calls on the Government to further raise the LQS in this term to narrow the gap between lower-wage and median workers.

At the same time, NTUC recognises that some workers may need more help. Through the NTUC U Care Fund, we will continue to support vulnerable families and those hit by sudden hardship.

NTUC’s enterprises also play a part. The FairPrice Group, for example, continues to keep essentials affordable—helping families cope even as wages rise. The Labour Movement has, and will continue to, do our part in helping to nurture a “We First” society at every level.

Mr Speaker, please allow me to speak a few words in Chinese.

过去十年,渐进式薪金模式(PWM) 已经成为我们劳资政三方合作的重要支柱。我们能看到,我国的贫富差距有所缩小,这证明了我们提高低收入工友工资的政策确实有效。

而这些数据的背后,其实是一个个工友和他们家人的真实故事:那位能更好满足家人需求的清洁工阿叔,那位能和家人多相处的保安大哥,或是期待职业发展与肯定的害虫管理员。

全国职工总会将继续坚定与低薪工友们同行,与政府、雇主和社会各界携手,建设一个更公平、更包容的新加坡。

在新一届政府任期里,我呼吁政府继续勇往直前:
第一,进一步扩大渐进式薪金模式的覆盖范围;
第二,提高本地合格薪金 (LQS) 的门槛;
第三,加强培训与技能提升的支持。

只有这样,我们才能进一步缩小收入差距,推动薪资持续增长,让每一位工友都能有尊严的前进。

Conclusion

Sir, over the past decade, PWM has become a cornerstone of our labour compact. Government data has shown that wages for those at the 20th percentile has risen higher than the median and consequently, income inequality has narrowed.

More importantly, behind these numbers are real workers and real families: the cleaner supporting his children’s education, the security officer spending more time with his family, or the pest management worker seeking career progression.

NTUC remains firmly committed to walking this journey with our workers. Together with our tripartite partners and the wider community, we will continue to build a fairer, more inclusive Singapore—where no worker is left behind.

As we embark on this new term, I urge the Government to press on boldly with Progressive Wage expansion, further raise the Local Qualifying Salary, and strengthen support for training and upskilling.

These moves are essential to close the income gap, secure sustainable wage growth, and uphold our shared vision of a society where every worker can progress with dignity—because at NTUC, we firmly believe that Every Worker Matters. Thank you.