Concerted effort: Pedestrians walk along the famed shopping strip of Orchard Road in Singapore. The government says it will study ways to strengthen the link between career training as well as career outcomes, and continue to sustain real wage growth. — Bloomberg
SINGAPORE: Singapore will step up support for businesses and workers in sectors that are more vulnerable to technological disruptions and global competition, such as general manufacturing, retail and logistics.
This will be a key area of focus for one of the new committees formed to manage the impact of restructuring under the economic strategy review, which replaces the third work stream of the Singapore Economic Resilience Taskforce – set up in April to review longer-term strategies for local firms amid tariff-induced trade tensions.
Home Affairs and Social and Family Development Minister Goh Pei Ming said the government would strengthen support for companies and help them tap new opportunities from global economic trends and mega projects.
“We will focus on sectors that are likely to face greater cost pressures, technological disruptions and global competition, and therefore be in greater need of restructuring,” he said, adding that these sectors would include general manufacturing, retail and logistics.
Speaking at a press conference, he said the government would also proactively support workers who are more susceptible to disruptions, such as professionals, managers and executives whose roles are affected by artificial intelligence (AI) and rank-and-file workers from sectors that are undergoing transformation and restructuring.
He is co-chairing the committee with Defence and National Trades Union Congress Ministry deputy secretary-general Desmond Choo.
But Goh emphasised that many new opportunities would surface as Singapore embarks on large development projects, adopts new technologies and pursues energy transition.
“Businesses in these sectors will need to adapt, to innovate, to seize these new opportunities and the government will do its part and support those who are keen and have good ideas,” he said.
He added that more pathways will also be developed for workers in less secure jobs to find roles with better job prospects.
Social safety nets and assistance will be enhanced to help displaced workers return to gainful employment.
“We call on employers and workers to be more open to new learning and personal growth along this journey,” he said.
Meanwhile, Culture, Community and Youth acting minister David Neo, who co-chairs a committee on human capital with Manpower and Health senior Minister Koh Poh Koon, noted that the government launched SkillsFuture a decade ago to upskill and reskill the workforce.
He said the initiative has delivered good results as Singapore has sustained more than 2% real wage growth year-on-year after accounting for inflation.
“Going forward, we will study ways to strengthen this link between career training as well as our career outcomes and continue to sustain this real wage growth,” he said.
Neo, who is also Education senior minister said the government would also develop a more effective career employment service ecosystem to help Singaporeans make better career choices.
“We want to equip our workforce with future trends, to seize new opportunities and manage risks from structural drivers affecting the economy, such as dual economic fragmentation, AI and climate change,” he said.
“We will look at strategies to prepare workers in emerging markets and to equip them with AI skills for the workplace and to take up new jobs that will arise in our new green economy.”
Besides helping workers, efforts to groom local entrepreneurs will continue.
Trade and Industry Minister Alvin Tan, who co-chairs the committee on entrepreneurship with Manpower and Culture, Community and Youth Minister Dinesh Vasu Dash, said global competition for entrepreneurial talent, funding and ideas is intensifying.
“We must move faster and do better to ensure Singapore remains the most attractive place for founders with big ideas to start and scale their businesses,” he said.
Tan, who is also National Development Minister, added that the government would strengthen the Singapore core in entrepreneurship while continuing to welcome top talent from abroad.
“We must also re-double our efforts to nurture a new generation of Singapore-based entrepreneurs with the ambition, temerity and resilience to start and sustain new ventures,” he said.
When asked how Singapore can position itself as a startup hub given the rising business costs and tight labour market here, Dinesh said the committee would look at creating a friendly infrastructural set-up, developing talent and adjusting regulations.
“We have about 30 unicorns in Singapore, and it covers about US$5bil in terms of venture capital flows,” he said.
Unicorns refer to startups valued at more than US$1bil.
“We think that is an area that could potentially increase and provide a further addition to the Singapore economy, creating good jobs for people and better career pathways as well,” he said. — The Straits Times/ANN
