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Labour Day this year comes at a time when change is on the horizon. Mr Lee Hsien Loong has announced he will be handing over the prime ministership to Mr Lawrence Wong on 15 May 2024.
It comes at a time when the world is tilting in a worrying direction. The situation in the Middle East is extremely tense and fluid. Any action — intentional or accidental — could lead to a devastating regional conflict. Navigating the on-going China-US rivalry amidst an increasingly contentious and increasingly closed global order remains challenging for a small and multi-racial country like ours.
Domestically, the economy is experiencing slow growth with elevated inflation — presenting Singaporeans with a double whammy of concerns for both employment, and costs of living and doing business. Most economists polled in a Bloomberg survey have said that the new Prime Minister will need to make fighting inflation his top priority after taking office.
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Although the unemployment rate remains low, many Singaporeans still feel the bitter edge of change in the economy and the job market. NTUC's annual Survey on Economic Sentiments found that almost 40% of Singaporean workers are worried that they would lose their jobs in the next three months, compared to just 25% in last year’s survey.
But is it only about worker’s concerns over jobs, or something else?
Singaporean workers may have become pessimistic even with full employment because the news cycle in 2024 so far has been about cost cutting by companies leading to retrenchments and even complete closure and relocation to regional countries by some businesses.
If large companies and multinational corporations (MNCs) with deep pockets are finding it unsustainable to operate in Singapore due to the cost of doing business here, SMEs will be feeling more pressure. A survey of 605 SMEs by insurance provider QBE Insurance found that 50% of Singapore’s SMEs surveyed cited increased costs and reduced profitability as a top business challenge in 2024. This is on top of their concerns in the 2023 survey regarding rising inflation, rising energy prices and the increase in GST.
We have also been reading about micro-businesses in F&B such as hawkers that have closed down, adding to other recent high-profile closures in what restaurateurs widely declare is shaping up to be a “tough 2024”.
The Workers’ Party shares their concern that the cost of doing business in Singapore has become a significant pressure point, made worse by the increase in the GST rate to 9% and persistently high interest rates in 2024. We have urged the government to give SMEs more support in non-wage areas ranging from subsidies for talent and acquisition schemes, international expansion, rental assistance or rental support, streamlining grant application process to providing grants on a cash-basis rather than on reimbursement. By helping SMEs with the non-wage costs of doing business, we hope they may continue to drive entrepreneurship and innovation, operate and employ over 70% of the total labour force, and pay competitive wages for our workers.
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Faced with high business operating costs, should job losses occur, the Workers’ Party has advanced calls for better protection and stronger safeguard of workers’ interests, chiefly by introducing a Redundancy Insurance Scheme. We also want the government to better effect re-skilling and skills transfer from foreign professionals to Singaporeans, to prepare them for a more competitive and demanding work environment ahead.
To this end, Workers’ Party Members of Parliament delivered 14 speeches during the recent Committee of Supply debate on the Ministry of Manpower’s (MOM) budget — the most we devoted to any Ministry. We spoke about mandating retrenchment benefits for workmen and employees covered by Part 4 of the Employment Act; banning non-competes in employment contracts of low- and mid-level employees; and protecting workers’ interests by preventing predatory employment contracts. We further urged MOM to work more closely with MOE and other agencies, like SkillsFuture Singapore, to systematically nudge Singaporeans into the occupations and sectors with training opportunities to re-skill and secure employment. Moreover, we said that reasonable accommodations for Persons with Disabilities should be included in the upcoming Workplace Fairness Legislation.
The Workers’ Party has also spoken about specific issues facing worker health and safety that affect workers’ ability to do their jobs properly. Understaffing and overwork of healthcare workers is one. Working conditions such as not being able to sit at retail shops remain to be addressed.
Singapore enters a new chapter ahead, there is hope things may be done differently.
One thing is clear: Come what may, the Workers’ Party will continue to reflect the concerns of workers’ and SMEs’, raise issues of sustainable growth and advocate for labour policy legislation for the benefit of all Singaporeans.
I wish all Singaporean workers a Happy Labour Day!
Leader of the Opposition &
Secretary-General, The Workers’ Party
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