UNDER a long-awaited re-employment support scheme, workers who lose their jobs can receive up to S$6,000 in total, over a period of up to six months.
Giving these details in his National Day Rally speech on Sunday (Aug 18), Prime Minister Lawrence Wong said the new SkillsFuture Jobseeker Support scheme will focus on helping lower and middle-income workers.
It will provide temporary financial support to workers who “become involuntarily unemployed, for example when they are retrenched or when their companies go bust”. Such workers must go for training, career coaching and job-matching services.
“This is the essence of our renewed social compact,” he said. “We will have your back, we will stand by you, but you too must take responsibility for your actions, and make an effort to pull yourself up.”
Manpower Minister Tan See Leng will provide more details “in due course”, he added.
Avoiding pitfalls
The re-employment support scheme was discussed with the labour movement, which has been championing the idea, said PM Wong.
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Singapore’s government “has always been wary” about unemployment insurance, he said, noting that in some countries with generous schemes, people may find it more attractive to stay unemployed than to go back to work.
“But we also know that losing a job is a major setback, which can seriously destabilise workers and their families. And we have to do something to lessen the strain on those who are affected.”
That is why the government searched for an alternative “that minimises the negative outcomes we have seen elsewhere”.
Skills and competition
Meanwhile, a previously announced training allowance will be made available for part-time courses too.
The SkillsFuture Level-Up programme, announced in Budget 2024 in February, includes a monthly training allowance for Singaporeans aged 40 and above in full-time courses. They can get up to half their last-drawn pay, capped at S$3,000, to defray the loss of income.
On Sunday, PM Wong noted that workers who train part-time still receive salaries, but “it’s not easy to work and go for classes after that”. They also face training-related expenses such as fees and books.
“So we will extend some of the training allowance to those who attend part-time courses as well,” he said. The Ministry of Education will share more details when ready.
This is part of efforts to “do more to equip Singaporeans with the skills to stay competitive”, said PM Wong, stressing the need for a life-long learning mindset.
He warned that Singapore’s next phase of economic development “will get harder”, as the country is competing in a different environment today.
Developed countries used to outsource manufacturing to cheaper locations in Asia, but are now aiming to rebuild domestic industries and reshape global supply chains in their favour.
“Meanwhile, the developing countries are moving up,” he added, citing China’s ‘Made in China 2025’ strategy.
In such an environment, Singapore must “work even harder to stay competitive, and push the frontiers of innovation and productivity”, he said.
The government also aims to ensure a business-friendly environment and keep the regulatory burden to a minimum.
PM Wong cited the example of a company that wanted to convert its factory into a worker dormitory. It had to apply separately to seven agencies, and got permission only after nine months.
This was partly because the company did not submit complete information.
“But even if they had done everything properly, the application would still have taken several months,” he said. “I think that’s still too long. We can and we will shorten the process.”
Every few years, the government reviews its rules and processes to “prune them back where possible”, he noted. He highlighted a previously announced inter-ministerial committee set up for this in April, headed by Deputy Prime Minister and Minister for Trade and Industry Gan Kim Yong.
Its members have been “hard at work”, he said. “I am sure this will improve things, and I hope this will go some way in helping businesses, especially our small and medium enterprises.”
