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Government will continue to create good jobs for Singaporeans: PM Wong
Chin Soo Fang
6–7 minutes
SINGAPORE – Amid an uncertain global environment, tougher competition and economic realities, the Government will continue to create good jobs and opportunities for Singaporeans.
At the same time, Singapore will press on with industry transformation and keep an eye on its cost competitiveness, said Prime Minister Lawrence Wong in Parliament on Feb 28.
Rounding up the debate on Budget 2025, PM Wong spoke of how Singapore can navigate global challenges even as the entire global system is changing.
He noted that countries are focusing more on defence and security interests with zero-sum competition rather than win-win cooperation. These developments disadvantage small, open economies like Singapore.
The major powers do not want conflict, but are preparing for conflict, he said, noting that 20 years ago, China accounted for just 9 per cent of global manufacturing output, but today it accounts for one-third.
“So naturally, there’s a huge attempt to rebuild manufacturing in America and Europe, and that’s why competition for investments will only intensify,” he said. “That’s why we have to be prepared for tougher competition, and do what we can to stay in the game.”
The National Productivity Fund will be topped up to give Singapore extra firepower to stay competitive and attract investments, he said. Steps are being taken to strengthen infrastructure and enhance Singapore’s enterprise ecosystem and innovation and technology engines. These moves will translate eventually and ultimately into better jobs and better opportunities for all Singaporeans, he added.
Singapore also welcomes and harnesses technology from different countries, but the key sources of technology are now concerned about technology leakage, and they want to keep their proprietary technologies controlled tightly within a safe ecosystem, PM Wong said.
Singapore will take measures to address these concerns so that it remains a reliable and trusted partner in global trade, especially in today’s fragmented world, he said.
As the nation navigates external challenges, it must continue to press on with productivity improvements in its own economy, PM Wong said.
Singapore’s labour productivity has been growing at around 2 per cent a year over the past decade, from 2014 to 2024.
A total of about 50 MPs debated the Budget from Feb 26 to 28.
Several MPs have spoken up on how small and medium-sized enterprises are concerned about the rising costs of business, but there are unavoidable economic realities like rising energy costs, land prices and labour costs, PM Wong said.
Noting that Associate Professor Jamus Lim (Sengkang GRC) had highlighted that wage increases in recent years have lagged behind productivity growth, PM Wong said the data has to be looked at over a longer timeframe, and over the past decade, during which real wage growth has been commensurate with productivity growth.
“And we will continue to push for this, to push for higher productivity as well as higher wages,” he said.
There have been schemes such as the Progressive Wage Model, which ensures continued skills upgrading for workers as they move up the wage ladder, he said.
“We will also keep an eye on costs and provide short-term help to companies where needed, but without blunting the incentive for them to restructure,” he said, citing measures like the corporate income tax rebates.
The Government will also support companies on the regulatory front, such as by reviewing processes and cutting compliance costs.
Noting that some retailers are concerned about the impact of the Johor-Singapore Special Economic Zone and the Johor Bahru-Singapore Rapid Transit System Link, PM Wong said that with e-commerce, competition is already happening, and it is taking place all over the world today.
He urged retailers to adapt and rethink their business models, noting that some have done so successfully with constant innovation and transformation.
The Government will support them with three new initiatives: the SkillsFuture Workforce Development Grant, the refreshed SkillsFuture Enterprise Credit and the Enterprise Compute Initiative. There are other existing enterprise support schemes as well.
If the utilisation of these schemes turns out to be higher than expected and more funding is required, the Ministry of Finance will be happy to provide additional resources, PM Wong said.
With constant industry transformation, Singapore can expect more churn in workplaces, and Singaporeans are understandably anxious about jobs, he said. However, they should not be pinning the blame on foreigners.
Singapore’s approach towards foreign workers is clear, he said.
“We welcome them to work here, but we do this in a controlled manner, and ensure they complement Singaporeans, and we have continued to fine-tune over time our system of controls,” he said.
PM Wong added that the Government has introduced the Compass framework for employment passes and new measures like the Workplace Fairness Act to protect Singaporeans against workplace discrimination. This approach has contributed to positive outcomes, including low overall unemployment rates, good employment outcomes and rising real incomes for Singaporeans.
The Government has also strengthened SkillsFuture through the SkillsFuture Level-Up Programme for mid-career workers and the SkillsFuture Jobseeker Support scheme for the involuntarily unemployed.
PM Wong said he expects to put in additional resources in the coming years to further strengthen SkillsFuture as there is still much more to be done.
“We cannot save every job, but we will support every worker in Singapore,” he said. “We will create even more opportunities and better jobs for all Singaporeans.”
