Singapore has overcome immense odds to transform from third world to first. However, new challenges remain on the horizon. Geopolitical headwinds and rapid technological advances have made the world a more turbulent place. These effects will be felt more strongly in small nations such as Singapore.
The PAP government recognises these challenges. As a result, it has spared no effort to invest in our people at all stages of life. The aim is to ensure all Singaporeans can secure good jobs and livelihoods.
During the COS debate, the government shared what it will do to build a diverse workforce and create meaningful opportunities for Singaporeans.
Helping workers manage their career health
The government will continue to empower Singaporeans to develop meaningful and resilient careers amidst rapid economic changes. One of the ways to do this is through career coaching and supporting workers through involuntary unemployment. These are things that Labour MP Patrick Tay (Pioneer SMC) has lobbied for years.
Workers will be able to use their SkillsFuture Credits on eligible career guidance services, announced Senior Minister of State for Manpower Dr Koh Poh Koon.
Workers who are involuntary unemployed will also be able to tap on the SkillsFuture Jobseeker Support scheme (JSS). Besides financial support of up to $6,000 over six months, the scheme will provide holistic support to guide jobseekers towards re-employment.
Under the JSS, jobseekers will be guided to attend career fairs, update their resume and go for career coaching.
“Through these efforts, we hope to empower our workers to achieve their career goals…and seize good opportunities at every stage,” said Dr Koh.
Expanding employment support for seniors and PwDs
In Singapore, every worker matters. That includes our seniors and people with disabilities (PwDs). With Singaporeans living longer and healthier lives, the government have been paving the way for seniors to continue working if they wish to.
From 2026, the retirement and re-employment ages will be raised to 64 and 69, respectively. This will encourage companies to continue offering employment to older Singaporeans who want to continue to work. The government will also extend the Senior Employment Credit (SEC), which provides wage offsets to employers who hire Singaporeans aged 60 and above.
To help seniors accumulate more savings for their retirement, CPF contribution rates for those aged above 55 to 65 will increase further by 1.5%.
Another group that will benefit from more support are Persons with Disabilities (PwDs). More support will be given to help PwDs save and build a nest egg early in life. The Matched Retirement Savings Scheme (MRSS), a dollar-for-dollar matching grant to encourage CPF top-ups for seniors, will be expanded to include PwDs.
Using the benefit of compound interest, we hope to help PwDs approach retirement with a greater sense of security, said Minister of State for Manpower Gan Siow Huang.
Uplifting lower-wage workers
Over the years, the Progressive Wage Model (PWM) has resulted in meaningful wage increases for lower-wage workers, said Senior Minister of State for Manpower Zaqy Mohamad.
According to government data, real wages at the 20th percentile rose cumulatively by 5.9% from 2019 to 2024. This is higher than the median worker at 3.6%.
To narrow the income gap further, the government will continue to drive wage growth for lower-income workers. In 2025, it will co-fund 40% of wage increases to lower-wage workers as part of the Progressive Wage Credit Scheme. It has also increased the monthly income cap for Workfare from $2500 to $3000.
This ensures that WIS continues to help workers in the bottom 20th income percentiles, with some support for those slightly above, said Mr Zaqy.
Next, there will be more support to help lower-wage workers upskill and pivot into new roles.
The new Workfare Skills Support Scheme (WSS) will provide trainees with a monthly allowance (capped at 50% of their average monthly income). Part-time trainees will receive a fixed monthly allowance of $300.
“We must press on with our efforts to uplift lower-wage workers,” urged Mr Zaqy.
Developing a future ready workforce
AI is a fantastic tool. However, it also threatens to wipe out many jobs. Therefore, job redesign will be crucial to help workers stay ahead of the game.
This year, the government announced that it would fund up to 70% of costs when businesses reskill their workers for new jobs. It will also make it easier for businesses to support workforce transformation without encountering cash flow issues.
From 2026, eligible companies can use $10,000 worth of credits in an online wallet to offset out-of-pocket expenses on relevant workforce transformation programmes, said Minister for Manpower Dr Tan See Leng.
Together with SkillsFuture, these measures will make it easier for workers and businesses to develop new skills and take advantage of new opportunities in an AI-driven future.
“While we may not be certain of what lies ahead of us, one thing is certain, the Government will never let you down. With the Government, workers, and businesses coming together, we will achieve a brighter future for Singapore and Singaporeans.
“We will walk with every Singaporean to help you journey through change and realise your fullest potential so long as you are willing to do so,” concluded Dr Tan.
