More support for sectors and workers vulnerable to tech disruptions, global competition
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.
At a press conference on Aug 4, Minister of State for Home Affairs and Social and Family Development Goh Pei Ming said the Government will 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 will include general manufacturing, retail and logistics.
He said the Government will 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 this committee with Minister of State for Defence and National Trades Union Congress deputy secretary-general Desmond Choo.
But Mr Goh emphasised that many new opportunities will 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 our 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, Acting Minister for Culture, Community and Youth David Neo, who co-chairs a committee on human capital with Senior Minister of State for Manpower and Health 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 per cent 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.
Mr Neo, who is also Senior Minister of State for Education, said the Government will also develop a more effective career employment service ecosystem to help Singaporeans make better career choices.
'We want to equip our workforce for future trends, to seize new opportunities and to manage risks from structural drivers affecting the economy, such as dual economic fragmentation, artificial intelligence 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.
Minister of State for Trade and Industry Alvin Tan, who co-chairs the committee on entrepreneurship with Minister of State for Manpower and Culture, Community and Youth 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.
Mr Tan, who is also Minister of State for National Development, added that the Government will strengthen the Singapore core in entrepreneurship while continuing to welcome top talent from abroad.
'We must also redouble 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 start-up hub given the rising business costs and tight labour market here, Mr Dinesh said the committee will 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$5 billion (S$6.4 billion) in terms of venture capital flows,' he said. Unicorns refer to start-ups valued at more than US$1 billion.
'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.
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