Tan See Leng
Singapore
“We are aware of the Singapore Workplace Report 2026, produced by the Singapore Institute of Directors and Gallup, and we are studying its findings.”
“The Taskforce for Responsible Retrenchment and Employment Facilitation (Taskforce) actively reaches out to all retrenched local employees. In 2025, 77% of Mandatory Retrenchment Notifications (MRNs) were submitted at least seven days ahead of the employee's last working day and 73% of MRNs were submitted at least two weeks ahead.”
“From 2022 to 2025, vacancy rates for technical maintenance roles in the real estate services sector, which includes facilities management, have been lower than the overall job vacancy rate, except in 2025 (see Table 1).”
“The Skills and Workforce Development Agency (SWDA) works with sector agencies to determine the courses which are required by the respective industries. The SWDA currently funds more than 100 courses, spanning a wide range of mental health-related fields.”
“In the first quarter of 2026, the profile of retrenched residents aged 50 to 59 was broadly similar to the profile of all retrenched residents, predominantly comprising professionals, managers, executives and technicians (PMETs) and were mainly from wholesale and retail trade, manufacturing, financial and insurance services and profession…”
“In 2025, around 4,200 resident professionals, managers, executives and technicians (PMETs) aged 45 to 59 were retrenched, higher than 3,200 in 2024 and 3,500 in 2023. Their six-month re-entry rate remained stable at 48.5% in 2025, compared with 48.9% in 2024 and 50.1% in 2023.”
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“Mr Speaker, the Member asked the Ministry of Manpower (MOM) to ensure that the bulk of new jobs created go to Singaporeans. I think the Member seems to be under the misconception that a net increase in foreign employment means that jobs are not going to Singaporeans. I just want to clarify if that is so, then that view is fundamentally misguided. So, let me explain why. Firstly, what MOM is focused on and is interested in is whether Singaporeans who want to find a job can indeed do so. One way to look at this is to examine the resident employment and unemployment rates. In 2023, our resident employment rate was 66.2%. This puts us as having the fourth highest resident employment rate compared to other advanced economies in the Organisation for Economic Co-operation and Development (OECD). Our resident unemployment rate and long-term unemployment rate remain very low, at 2.7% and 0.7% respectively. So, we are close to full employment. In fact, the Government has invested much effort in safeguarding resident employment. To illustrate, over the 2020 to 2022 period, when COVID-19 had an impact on our economy and labour market, resident employment growth remained robust, increasing by more than 110,000, while non-resident employment declined by 3,000. Secondly, with the slowing resident workforce growth, it is imperative that Singapore remains open to complementary foreign labour to meet the demands of our growing economy and our businesses. If you take a closer look at the 83,500 non-resident employment growth last year, about 18,700, or 22.4%, was from higher-skilled Employment Pass (EP) and S Pass holders. The total number of EP and S Pass holders combined is still below pre-COVID-19 levels.”
“The Government does not earmark revenue for specific uses. Instead, the revenue collected will be considered as a whole and allocated to meritorious projects based on the Government’s needs. The Government already uses part of its overall revenue to support firms undertaking workforce and enterprise transformation efforts, which can include the training of lower-wage Work Permit (WP) holders. For example, the SkillsFuture Enterprise Credit provides financial support to firms sending their employees for eligible training courses, whether these employees are local or foreign. Eligible courses include those aligned to the Workplace Safety and Health Skills Framework. In addition, we also incentivise employers to upskill existing WP holders or hire higher-skilled WP holders by subjecting them to lower levy rates.”
“In the last five years from 2019 to 2023, an average of about 1,800 Employment Act complaints were made to the Ministry of Manpower (MOM) each year. The top three categories of Employment Act complaints were related to: (a) itemised pay slips and key employment terms not being provided, (b) salary payment issues and (c) working hours. Majority of employers rectified these infringements upon MOM’s intervention. Employers who were not able to rectify mainly involved those with salary payment issues due to financial difficulties.”
“Under the Work Injury Compensation Act, workers are no longer required to submit a work injury compensation (WIC) claim since September 2020. The incident report filed by the employer is considered a deemed WIC claim. Workers are eligible for medical expenses and medical leave wages up to one year from the date of the incident, as well as lump sum compensation for permanent incapacity or death. Claims processing time does not affect whether a claim will be admitted. Workers can approach insurers directly to check on the status of their claims via a hotline and email that designated WIC insurers are required to provide. They can approach the Ministry of Manpower for assistance if the insurer does not provide the necessary updates.”
“The data requested by the Member are provided in Table 1 below.”
“The median time taken for designated Work Injury Compensation (WIC) insurers to process a WIC claim is about six months. The processing time varies depending on the complexity of the case.”
“The risk of heat injuries depends on a combination of factors, such as the nature of the work task and the worker's physical fitness. Thus, it may not be practical to set a single Wet Bulb Globe Temperature (WBGT) threshold to stop all types of outdoor work. Employers should instead conduct proper heat risk assessment taking into account environmental, personal and job risk factors of each workplace and implement measures to reduce heat stress risks and prevent heat-related injuries. Some of the enhanced measures to reduce heat stress for outdoor workers include providing loose-fitting and light-coloured clothing to workers, cool drinking water supply near work areas and identifying and redeploying workers vulnerable to heat stress when the weather is hot. Nonetheless, employers are required to provide a minimum rest break of 10 minutes hourly, under shade, when WBGT is 32oC or higher to protect outdoor workers.”
“Indeed, for careers health and also CareersFinder, which were hallmark initiatives that I had announced at last year's Committee of Supply, we do use a fair bit of data analytics, first to suss out the CVs, the training of our graduates and then, for them to continue to upgrade their own career health by taking an active interest in making sure that their training, the skills adjacencies are up to mark, and also to nudge them and encourage them to upgrade their training, along the entire pathway of their career, so that it allows for better job matching. This provides a better career trajectory and a more productive runway for them. On the use of data analytics and artificial intelligence, we are already leveraging on these technologies. Hopefully, that is the reassurance that I can give to the Member.”
“I thank the Member for his supplementary questions. To his first question about exploring innovative partnerships with tech companies and also startup incubators, the answer is yes. However, we need to be mindful of the stage of working with these startup incubators, as well as tech companies. Graduates that come out immediately from AUs may want to look for a longer-term job and certain type of career profile. What we have done is, through the Agency for Science, Technology and Research's Technology for Enterprise Capability Upgrading (T-UP) programme, we are working with many of the deep tech startups, the startup incubators, and we second data scientists to help them in moving up the value chain in terms of some of the specialised skill sets that they may require. For the broader groups of young graduates from our AUs, depending on the area of training and area of specialisation, we are prepared to consider partnerships, as long as there is also a clear career path for these young graduates. It is not as straightforward as applying this model universally across all the different sectors of the graduating cohorts, but we certainly explore and further curate some of these programmes, leveraging on the insights and the learning from the T-UP programme that we started a couple of years ago. On the second point, in terms of the leveraging on technology.”
“NTUC and SNEF's efforts complement what the Government is doing. NTUC's Youth Taskforce identified that some of the top resources to help youths work towards their desired future jobs were quality internships and career mentorships. Therefore, NTUC and SNEF piloted the Career Starter Lab in 2023, to facilitate career trials, structured workplace attachments and mentorships for youths. NTUC also set up mentorSHIP to increase access to career mentoring for youths. These initiatives help youths gain more clarity about job fit, pick up relevant skills and find jobs that match their competencies and aspirations. Overall, a tight labour market should benefit graduates in their job search, meaning less difficulties in seeking out full-time employment with a good job fit. While the recent results from the Joint Autonomous Universities Graduate Employment Survey show a slight decrease in employment rates for graduates, it still remains higher than the pre-COVID levels in 2019. Furthermore, graduates also saw an increase in starting salaries compared to the year before.”
“Mr Speaker, Sir, the tripartite partners, comprising the Government, National Trades Union Congress (NTUC) and Singapore National Employers Federation (SNEF), have put in place a number of initiatives to support graduate employment. The Government works closely with the autonomous universities (AUs) to ensure that the supply of graduates takes into account industry demand and that graduates are equipped with industry-relevant skills. AUs conduct regular reviews of course curricula, incorporating feedback from economic agencies and industry. AUs have also worked with employers to provide meaningful internships for students as important components for many of their courses. The internships allow students to connect what they learn in the classroom with the workplace and allow companies to access a pipeline of talent better aligned to industry needs. There is also the National Centre of Excellence for Workplace Learning (NACE) which helps employers build workplace learning capabilities and raise the quality of internships that they provide to students. The AUs also provide career-related information to students and graduates through career talks, fairs and online resources. Students and graduates can consult career coaches for more personalised career and upgrading advice. In addition to the services provided by AUs, graduates can approach Workforce Singapore (WSG) and NTUC's e2i for career advisory and one-on-one coaching at their centres. Graduates can also access WSG's MyCareersFuture (MCF) portal to search and apply for jobs. They can make use of features such as CareersFinder on MCF to help them better plan for their careers. These support graduates to take charge of their career health by making more informed career decisions and longer-term plans.”
“As indicated in the Forward Singapore report, the Government will also do more to strengthen the career health of Singaporeans by improving job matching and helping them better plan for long-term careers through access to better data and information about jobs and skills. Third, we provide targeted support for retrenched workers who face difficulties finding a new job. These support measures have been addressed in the reply to the Member's Parliamentary Question on 29 February 2024 on support for retrenched workers. [Please refer to "Addressing Public Anxiety over Job Security and Re-employment Challenges", Official Report, 29 February 2024, Vol 95, Issue 127, Oral Answers to Questions section.] MOM's statistics show that our efforts to safeguard employment have been successful. Resident employment has expanded annually, even through the recent pandemic, and our labour force participation rate remains high at 68.6%. In 2023, the resident unemployment rate was stable and low at 2.7%. The resident long-term unemployment rate also remained low at 0.7%. Real wages have grown over the longer-term, underpinned by sustained productivity growth. The Government will continue to work with the tripartite partners to press on with business and workforce transformation that will lead to better outcomes for our workers, employers and the overall economy.”
“The Government's strategy to safeguard employment in Singapore is to create good jobs and to equip our workers with the skills to take on these jobs. This will meet the needs of our businesses as well as the aspirations of our workers. We adopt a two-pronged approach in our efforts. First, we keep our economy competitive and seek to capitalise on new opportunities in and beyond our region. We do this by pursuing sustained, productivity-driven growth across our economy. The Government has launched the ITMs to drive transformation across 23 industries. To help employers respond and plan for business transformation, the Government has also launched the Jobs Transformation Maps to provide job-level insights on the impact of technology on the industry and workforce. With these insights, businesses can then redesign more productive jobs. Second, we invest heavily in equipping Singaporeans with the skills to take on the jobs that we are creating. The Ministry of Manpower (MOM) works with the Ministry of Education, and the Ministry of Trade and Industry to identify the current and future skillsets required and curate programmes to equip Singaporeans with these skills. This includes programmes, like WSG's CCPs, which provide course fee and salary support of up to 90% for workers to move into new job roles or sectors that have good prospects and opportunities for progression, as well as SkillsFuture Singapore's SkillsFuture Career Transition Programme, which supports mid-career individuals in acquiring industry-relevant skills to improve employability, with funding subsidy of up to 90% of course fees.”
“You have the WSG Career Matching Services, the CareersFinder, Career Health and there is a whole slew of CCPs to help our workers, where we subsidise up to 90% of salary and course fee support. We also have the OMIP. We are going to be introducing a jobseeker support scheme to empower those that are involuntarily unemployed to bounce back into employment, which the Deputy Prime Minister will announce later this year. If you are a senior at the end of your work-life cycle, if you want to continue to work, we are raising the retirement age. We also have the SEC and the PTRG, and we are also making sure that our Majulah Package continues to support them. So, you can see that it is really an end-to-end, very comprehensive, integrated continuum of uplifting, supporting, strengthening and caring for our entire Singapore Core. I hope that gives you that reassurance. With that, I thank Members of the House for your patience and your support.”
“Mr Chairman, the Member's two clarifications will take some time. I will keep the first one very short because I want to dedicate more time to the second one. We chose electricians because it is one where we have scoped out what is required with the different agencies. We are quite confident that we can implement it with a very clear set of deliverables, and there is scalability, meaning that we can extend it to more job roles, given our aspirations for sustainability and the green economy pivot to a greener future for Singapore. So, it is a short answer to the Member's question. We will apply the same principles to some of the other trades. In time to come, I will update Members of this House. To the point about how we scale up our local workforce to continue to make sure that they are well-prepared and well-skilled, we will continue to invest in them. 6.00 pm If I may, I will tell the Member a story because I want to articulate this in a clearer fashion and connect the dots together for the Member. So, from time to time, and at different stages, we rely on the foreign workforce that comes in here to supplement and to complement our Singapore Core. How do we walk every step with our fellow Singapore Citizens? If you are a youth and if you have started your career, we empower you to make informed career decisions so that you have a good start. Through working closely with our IHLs, we have developed meaningful internships. We have educational and career guidance as they start out in the workforce. Then, when you are a mid-career worker looking at next steps, we will help you to pick up and we will invest in you. We provide greater support for you to pick up relevant skills.”
“I thank you, Mr Chairman, for that reminder. Two key findings. One, the Citizens' Panel proposed a career gym where our local citizens can go on to first understand what their career prospects are, given their qualifications and how they can continue to work at it to improve their career prospects. Second, a skills passport, both of which, in terms of the suggestions that the Citizens' Panel raised, we have taken on board to design career health and also the CareersFinder.”
“To the Member's LRIS point, we said we are not putting it in abeyance. We have considered and we continue to consider in terms of making sure that the returns are stable. For the last three to four years, the Member, as an analyst, would also agree with me, does he not, that we have gone through an extremely uncertain and volatile period? I take the Member's nodding of the head as a yes, right? Many investors in equities have been burnt. For us, it is making sure that the hard-earned monies of every single one of our CPF members, we try to go to the n-th degree to try to make sure that it is stable. We try to make sure that we reduce as much of the volatility and the risk as possible. Maybe, if the Member wants to put it as a fault – I do not think it is a fault – it is that we are very, very cautious because these are our members' hard-earned monies. I hope that the Member acknowledges and understands that.”
“I assume the Member has directed that question at myself. On the first part, in terms of the difference between GIC returns and CPF interest rates that both Mr Louis Chua and Ms Hazel Poa talked about, this has been discussed earlier at the debate on the Motion on Public Finances on 7 February 2024. I do not want to go too much into details. But it is always very easy from the point of investment to look at hindsight because hindsight is perfect. I have done a lot of investments in my past life. There are a lot of "I should have done this" and "I should have done that". We need to understand that while GIC's historical 20-year returns have exceeded CPF interest rates, this is really looking at it backwards. Above all, I think Mr Louis Chua, as a financial analyst, it is always very good to look at past historical records. But to make a projection in the future, I seriously wonder how many people can be that spot-on and precise in terms of projecting future returns and on a guaranteed basis. For the 20 years of historical returns, even though GIC has exceeded CPF interest rates, there is no guarantee that GIC's future returns will always exceed CPF interest rates in every year. So, if we pass some of these returns directly to members, there will be significant year-to-year fluctuations in the interest rate that members receive. I wanted to set that basic principle. So, what the Government has done is that it has used our buffer of net assets to ensure that CPF members receive fair and stable interest rates to grow CPF balances for retirement adequacy. That is the underlying principle. And I have said before that since CPF started in 1955, the three core priorities are: (a) to fund retirement adequacy for our members; (b) to provide housing; and (c) healthcare.”
“Thank you. To Mr Yip's point, successive generations of Singapore Citizens have seen improvements in their lives. This is in tandem with Singapore's economic growth and also significant investments made by our Government in education, healthcare and social security. Those born in the generation between 1960 and 1973 and earlier had lower incomes over their lifetimes. They also have less time to benefit from the more recent improvements to the CPF system, and they have less runway to build up their retirement savings. So, younger cohorts would have a longer runway to benefit from the more recent enhancements to the CPF system. For example, the extra interest on CPF accounts, the WIS scheme and all the CCPs that we put up. But we do not rest here. We constantly and will continually review the need to provide additional support for Singapore Citizens with greater needs, especially when they draw near to retirement. If we look at it today, even for those generations, for instance, the Pioneer or Merdeka Generations, and for the low-wage workers, we continue to enhance the WIS scheme. For the Pioneer and Merdeka Generations, we continue to enhance the SSS and the MRSS. Earlier on, I gave a list for each one of the schemes, how many hundreds of thousands of Singaporeans will benefit. So, existing eligible Singapore Citizens will benefit, even if they do not meet the age criterion for the Majulah Package.”
“I thank Mr Yip Hon Weng for his clarifications. Members can continue to hold their existing CPF Investment Scheme (CPFIS) SA investments until they decide to sell or when the investment matures, upon which the proceeds will then be paid to the member's RA, up to the Full Retirement Sum. Any remaining balance will be paid to the OA. Members may, of course, continue to invest their OA savings under the CPFIS (OA) if they are eligible. Can I request the Member to repeat his second clarification?”
“I thank the Leader of the Opposition for his clarification. I do not have all the numbers with me currently. I will revert with regards to his question on whether they pay over the recommended retrenchment benefits. From the survey, nine in 10, or 90%, of them pay the retrenchment benefits, typically ranging from about two weeks to a month per year of service. For the ongoing surveys, we hope to sharpen the survey each time we conduct it, using the insights that we have from previous surveys to make it even more precise, because it allows us to better plan our policies. As I said, we will constantly work hard at improving the livelihoods for all of our workers. I hope that gives you the reassurance.”
“Apologies, I just wanted to remind Members of the House and, in particular, Mr Desmond Choo, that notwithstanding the SOL, all companies, when they bring in an EP, have to fulfil the minimum qualifying salary. That qualifying salary, as I have just shared, would be raised for an entry-level EP and the EP qualifying salary would also rise accordingly with age. So, that is the base and after they have fulfilled the base, the SOL, the bonus points would kick in. So, in that sense, we continue to ensure that companies do not use it to circumvent whatever framework and principles that we have.”
“I thank Mr Desmond Choo for the clarification. First, as I have shared earlier on, the COMPASS framework was only implemented on 1 September 2023. So, our statistics have been based out of five months. Hence, in my earlier reply to the Leader of the Opposition, I had qualified that this is very preliminary. But we are seeing very early, promising signs that it is a mechanism that did not, in any way, hinder firms, particularly firms wanting to grow their talent and particularly in sectors where there is a shortage of workers today. 5.30 pm The measures that we put in place include working with the industry and tripartite partners to constantly curating that list. We review that list every three years. In fact, we can add on or remove on a yearly basis. So, it is actually quite responsive. To that end, there are also newer areas where the sectors are fairly nascent. I mentioned two: one is in the green economy, and the other is agri-tech. In those areas, while we allow bonus points for these companies or businesses to bring in foreign talents, we are also simultaneously ramping up our investments to train, upskill and ensure that the skillsets are being transferred to our locals as well. It is a multi-system moving along to ensure that whatever we lean forward on, that shortage would be alleviated because our locals would then step in to replace that virtuous ecosystem. I hope that gives you the reassurance.”
“This reminds me of a well-known song by Wakin Chau, "Friends": "Friends never feel lonely, a true friend will understand." The Government and our tripartite partners will stand shoulder to shoulder with employers, workers and Singaporeans. This is our social compact. As long as we can unite and support each other, we can certainly progress towards a brighter future.”
“If you are currently over 50 years old, we will provide greater support through the Majulah Package. This $8.2 billion package consists of the following three components: First, if you continue working and earn a monthly salary of $6,000 or less, you will receive an Earn and Save Bonus of up to $1,000 per year. Second, Singaporeans who have not yet attained the Basic Retirement Sum in their CPF accounts can receive a one-time Retirement Savings Bonus of up to $1,500. Third, all Singaporeans above 50 years old this year can receive a one-time MediSave Bonus of up to $1,500 to help you with medical and insurance expenses. In addition, the Government will gradually raise the retirement and re-employment ages and increase the CPF contribution rates for senior workers to help you accumulate more CPF savings. For vulnerable groups and retirees who need more support, we will enhance the Silver Support Scheme and the MRSS to strengthen your financial security in retirement. At different stages in life, we all have different pursuits. In our youth, we are full of ambition, believing that we have innate talents and hoping to build a grand career. In our prime, we continue to improve and challenge ourselves, aiming to reach new heights in our careers. In our golden years, we hope to enjoy a peaceful retirement and, at the same time, contribute our wisdom to guide the next generation. As the saying goes, the younger generation will surpass the older generation. We hope that our next generation can make greater contributions to society. As we journey towards our goals, setbacks are inevitable. During the lows of our lives, we all hope to have close friends by our side, sharing our joys and sorrows and helping us through the difficult times.”
“We are aware that some of our policy measures announced today will have an impact on business costs. However, I must emphasise – and I want to seek everyone's support, understanding and indulgence – that a significant part of the cost increase is going towards uplifting our local lower-wage workers and improving the livelihoods of our fellow Singaporeans. At the same time, when we also look at the profitability of our businesses, we still remain competitive compared to other economies. Therefore, I hope that our employers can support us and carry the shared burden and responsibility of our refreshed social compact. With the Labour Movement, employers, workers and Government working hand-in-hand, I am confident that we will build a better future together! Mr Chairman, let me now say a few words in Mandarin. (In Mandarin): [Please refer to Vernacular Speech.] Over the past year, I have participated in many conversations under the Forward SG exercise and heard the aspirations of Singaporeans regarding employment and retirement. MOM deeply understands and pays close attention to the anxieties and aspirations of Singaporeans for the future. Regardless of your age group and challenges you face, we will walk with you. If you are currently employed, the Government will launch a new OMIP to support you in taking on overseas roles and expanding your horizons. If you are looking to switch jobs, the CareersFinder feature on the MyCareersFuture website can recommend suitable jobs and training courses to help you better plan your career. Employers can also tap on the CCPs to hire new talent. For lower-wage workers, the PWM can provide you with better income security and career progression. This year, we will raise the LQS and enhance WIS to provide additional support.”
“In 2026, the retirement age will be increased from 63 to 64, while the re-employment age will be increased from 68 to 69. Minister of State Gan Siow Huang will share more. MOM will also introduce two important Bills in Parliament this year. First, we recognise the importance of fair workplaces. This is why the Government accepted the recommendation by the Tripartite Committee on Workplace Fairness to introduce a new Workplace Fairness Legislation. This will further strengthen protections against discrimination and provide greater assurance to workers who wish to report grievances. We note Ms He Ting Ru's views and we look forward to discussing this Bill robustly in the House in time to come. Second, we will update our regulatory frameworks to strengthen protections for our platform workers. This will include areas, such as housing, retirement adequacy, work injury compensation and representation. Let me now conclude. Whether you are a youth starting your career, a mid-career worker looking at the next steps or a senior in your golden years, the Government will walk every step with you. For youths, we will empower you to plan out your careers and seize new opportunities. For mid-career workers, we will equip you with the means to stay relevant and competitive. This includes replenishing your skills to stay ahead and reskilling support if you want a career change. For seniors approaching retirement, you will be able to meet your basic retirement needs as long as you have contributed consistently to your CPF. We will continue to strengthen support for those who may need more help along the way. Workers can also look forward to more inclusive and progressive workplaces. These measures support a refreshed social compact to take us forward together.”
“We will continue to review our CPF interest rates periodically to ensure their relevance in the prevailing operating environment. Mr Ong Hua Han suggested expanding the Home Protection Scheme (HPS) to cover more members with pre-existing conditions. Let me explain. The HPS today already covers members with pre-existing health conditions, including PwDs, if they are assessed to be generally in good health. Nearly all HPS applications are issued covers. In the last three years, about 1.2% of HPS applications were not approved due to serious pre-existing medical conditions. Nevertheless, we are reviewing ways to further expand the coverage of the HPS, but we also have to take into consideration the affordability of premiums across the wider group. Hence, taken together, the significant suite of measures that I have talked about will ensure that the CPF system retains its focus on serving the broad majority, while uplifting those who need more support. We want to assure Singaporeans that you can retire with peace of mind in your golden years. 4.15 pm Moving on to my final point on "caring for you". We want to provide all Singaporeans with opportunities to participate in our transformation journey. The Government will work hand-in-hand with employers and workers to build more inclusive and progressive workplaces. For seniors who wish to continue working, our tripartite partners have agreed in 2019 to increase the retirement and re-employment ages to 65 and 70 by 2030. We successfully made one round of increase in July 2022. Today, I am pleased to announce that we have reached a tripartite agreement to implement the next round of increase to the retirement and re-employment ages.”
“CPF balances earn returns pegged to market instruments of comparable risk and duration, but the investment risk is entirely borne by the Government. CPF members who have the appetite to take on more investment risk for potentially higher returns can participate in the CPF Investment Scheme. However, I would like to remind members that higher returns come with higher risk. Ms Hazel Poa and Mr Louis Chua called on the Government to implement the Lifetime Retirement Investment Scheme (LRIS). With the benefit of hindsight on historical returns these few years, it is easy to comment on what should have been done. Although the current outlook for 2024 has improved, there is still considerable uncertainty, with risks tilted to the downside. No one can be sure how the markets will move. Hence, as per Deputy Prime Minister Lawrence Wong's and my previous explanations to Mr Louis Chua, it is not straightforward to introduce the LRIS. The LRIS will introduce a new element of risk for retirees. Regardless, we will continue to study the LRIS proposal, and we will work on making the CPF system even better for Singaporeans. Mr Saktiandi Supaat and Mr Louis Chua talked about the interest rate peg for the OA. The Government is aware that the OA interest rate has remained relatively stable, while yields of market instruments of comparable risk and duration have increased. But let us take a long-term view. Over the past two decades of low-interest rate environment, we have paid 2.5% interest, as well as extra interest, while the market was paying well below that. On average, the annual OA interest rate was 1.7 percentage points higher than the 12-month fixed deposit rates, from 1999 to 2021. Nevertheless, we are still monitoring the situation.”
“As her son grew more independent, Ms Ng rejoined the workforce in 2020, with the guidance of a career coach from WSG. She subsequently took a temporary career break and she is now looking forward to return to the workforce again. Ms Ng is excited about the Majulah Package because the Earn and Save Bonus and Retirement Savings Bonus can help her set aside more CPF savings as they translate into higher retirement payouts. In addition, Ms Ng, her husband and elderly mother-in-law will also receive the MediSave Bonus to pay for their own healthcare needs. I am happy to hear that in her free time, Ms Ng volunteers as a Silver Generation Ambassador, engaging seniors in her community through home visits and encouraging them to stay active. Speaking of active ageing, another young senior who is looking forward to the Majulah Package is Mdm Norizan. She is 59 years old this year and works in the F&B industry. Mdm Norizan enjoys working at her F&B outlet and interacting with customers from all walks of life. Mdm Norizan believes in the value of keeping her mind and body engaged, and that is why she is keen to continue working for as long as she is able to. Mdm Norizan said that she is very appreciative of the Earn and Save Bonus, which gives an added boost as she carries on working. I hope that the Earn and Save Bonus will encourage many more older Singaporeans, like Mdm Norizan to continue working, if they can and if they wish to. Let me now address Members' queries on other aspects of the CPF system. Ms Hazel Poa suggested to improve flexibility and returns on CPF savings. I would like to remind the Member again that the primary purpose of the CPF system is to help CPF members save for long-term retirement needs.”
“We will further enhance the WIS scheme to help our lower-wage workers build up their retirement savings. We will spend around $300 million more, spending a total of around $1.4 billion in 2025. This will benefit around half a million lower-wage workers. Senior Minister of State Zaqy Mohamad will provide more details. We will update SSS to better support seniors who have less for retirement. We will spend an additional $260 million, spending a total of around $860 million in 2025. About 290,000 Singaporeans will benefit. We will enhance the Matched Retirement Savings Scheme (MRSS) by increasing the annual matching cap from $600 to $2,000 per year and extending the scheme to those who are older than 70 years old. This will double the number of eligible Singaporeans to about 800,000 per year. In addition, we will proceed with the next step of the increase in senior workers' CPF contribution rates. Senior Minister of State Koh Poh Koon will elaborate on these schemes to support older Singaporeans in his speech. To address the concerns raised by Mr Desmond Choo and other Members, caregivers and homemakers who are unable to work and are, thus, ineligible to receive the Earn and Save Bonus, still benefit from the MediSave Bonus, Retirement Savings Bonus, enhanced Silver Support Scheme and the MRSS. A "young senior" who will benefit from the Majulah Package is Ms Caroline Ng. She is 54 years old this year, and lives with her husband and son in a 4-room flat. Together with her sister-in-law, Ms Ng is also supporting her elderly mother-in-law. Ms Ng and her husband are in a sandwiched phase of life: 上有老，下有小. Ms Ng started her career in HR but stopped working to take care of her young son then and the elderly in her family.”
“We must evolve our CPF system while retaining its focus on serving the broad majority and providing more support to those with less. I am heartened that MPs, like Mr Neil Parekh, have expressed support for this as a step in the right direction. Ultimately, we want to assure Singaporeans that the Government remains committed to uplifting those who need more support. The Government is therefore rolling out the Majulah Package to support our "young seniors" who are currently in their 50s and early 60s. Our young seniors face unique challenges. Compared to younger Singaporeans, they have generally earned less during their working years, and they have a shorter runway to benefit from recent improvements to the CPF system. Many of them are sandwiched between caring for both the young and the old in their families. The Majulah Package has three components. First, the Earn and Save Bonus of up to $1,000 per year. The Earn and Save Bonus will cover around seven in 10 older employed Singaporean workers, who are lower- to middle-income, earning up to $6,000 per month, with more support going to those earning less. The first Earn and Save Bonus will be credited into your CPF account in 2025, based on the work done last year. Second, a one-time Retirement Savings Bonus of up to $1,500 for those with lower CPF retirement savings. This bonus will be credited into your CPF account by the end of this year. Third, a one-time MediSave Bonus of up to $1,500. We recognise that healthcare cost is a concern for all. Hence, all older Singaporeans will receive this by the end of this year. Beyond the Majulah Package, the Government is also enhancing existing schemes to help those who may need more support.”
“I would also like to highlight that CPF LIFE premium continues to earn interest, which is factored into members' CPF LIFE monthly payouts that will last as long as they live. The Business Times published an article, about a week ago, that called CPF LIFE "the best annuity in the market". Members today are allowed to opt out if they have a pension or an annuity that pays the same or higher monthly payouts for life. If Mr Louis Chua knows of any similar or better products, he, too, can apply to opt out of CPF LIFE. The Government is also not locking up members' savings. By age 70, members are required to start drawing down on their CPF savings through retirement payouts, and this is in line with CPF's core objective of providing a lifelong retirement income. In fact, some members have written to me requesting to defer their payout start age to beyond 70 years old. But it is not possible. We want members to enjoy their hard-earned monies by that age. With all these clarifications, I trust that Members of this House and Singaporeans will better appreciate why we are closing the SA for those aged 55 and above. As Deputy Prime Minister Lawrence Wong said, the changes announced are "very much in line with the purpose and intent of the CPF", which is for retirement, for housing and for healthcare. It is a matter of principle. It is not about saving costs for the Government. Nearly all CPF members can continue to earn the higher interest rate if they choose to transfer their SA savings to their RA. Furthermore, the SA closure should also be seen alongside the other significant measures that we are making to boost the retirement adequacy of Singaporeans.”
“With the raised ERS, a member turning 55 years old in 2025 can receive about $3,300 per month of CPF LIFE payouts at age 65, if he chooses to top up to the raised ERS, up from about $2,500 today. 4.00 pm We recognise that close to 720,000 members with withdrawable SA balances, with a median balance of about $2,000, may experience some loss in liquidity. These members have a few options to choose from when the SA is closed next year. First, these members with the median balance of about $2,000 in the SA can retain these balances in the OA for liquidity. Compared to the SA, there will be lower interest earned, with a difference of about $3 per month, or about $30 per year at the median. Second, they can choose to invest in safe instruments, such as the Singapore Government Securities through the CPF Investment Scheme. Third, they can top up their RA, up to the raised ERS, to receive higher retirement payouts. Finally, they can also choose to withdraw their monies to invest outside the CPF system. Mr Louis Chua said that interest committed to CPF LIFE "will not accrue to the CPF holder" but is pooled together for all members. Let me explain why this risk-pooling is necessary. CPF LIFE is an insurance scheme that addresses the risk of outliving one's savings by providing members with lifelong monthly payouts. This risk-pooling allows CPF members to get monthly payouts for as long as they live. Upon a member's passing, any unused premium is refunded to the member's beneficiaries. Hence, members need to be clear about what they are getting with their RA savings. CPF LIFE is a form of insurance. It is not an investment vehicle. Each member will need to assess for themselves what level of retirement payouts they desire.”
“The number and proportion of CPF members with withdrawable SA balances has also increased and will continue to do so. This is not consistent with the principle that only long-term savings should earn the higher long-term interest rate. During the Budget Debate, Ms Foo Mee Har said that closing the SA "affects many middle-income seniors" and suggested for a "fairer option" of grandfathering the SA for existing members aged 55 and above. Ms Foo Mee Har's suggestion will inadvertently create a generational divide, benefiting the current generation of older Singaporeans, while disadvantaging younger Singaporeans. Those affected by the move are generally the more well-off. Only 8,400 members, who are relatively high-income earners, representing less than 1% of members aged 55 and above, will not be able to fully transfer their SA savings to their RA, as we raise the ERS to four times that of BRS. In other words, more than 99% of CPF members aged 55 and above today will be able to transfer all their SA savings to their RA, to continue earning the higher long-term interest rate and receive higher retirement payouts, should they wish to do so. I hope Ms Hazel Poa and Mr Leong Mun Wai can see that closing the SA is not a move to save interest payments. These remaining 8,400 members, the less than 1% with higher balances, can transfer their CPF savings to the RA of their family members or grow them outside the CPF system. Nonetheless, I note Ms Foo Mee Har's support for the raising of the ERS, from three times to four times of the BRS, from 2025. This move is, indeed, intended to help the broad middle. To Ms Hazel Poa, the ERS cap on RA balances is necessary to ensure that the CPF system continues to serve the broad majority.”
“Since Budget 2024, there has been much discussion on the closure of the SA for CPF members aged 55 and above. Many, including Mr Desmond Choo, have asked why the Government is making this move now. The core principle behind closing the SA is to "right-site" CPF monies, such that only CPF savings committed for long-term retirement earn the higher long-term interest rate. The closure of the SA, together with the significant suite of measures for retirement adequacy that we will be rolling out, is part of the evolution of the CPF system. Fundamentally, the CPF system is designed to provide for members' basic retirement needs, as well as support their housing and healthcare needs. These are our core priorities. With rising incomes and savings of fellow Singaporeans, stable CPF returns and trust in the CPF system, many of us would like to save more than the FRS. Some hope for higher investment returns; others hope to leave a bequest. We will work hard at providing stable returns appropriate for savings that can be withdrawn in the shorter term, as well as those set aside for longer term retirement needs. And, as the CPF system evolves, the fundamental objectives of addressing retirement, housing and healthcare needs remain, for all Singaporeans. Let me explain why this evolution is necessary. When CPF was first introduced in 1955, Singaporeans had little retirement savings. As our economy grew, subsequent cohorts benefited from high employment rates and strong wage growth. As a result, Singaporeans today can set aside more in their CPF accounts. The number of members voluntarily topping up their CPF accounts has more than doubled from 2020 to 2022, demonstrating strong trust in the CPF system.”
“At Budget 2024, Deputy Prime Minister Lawrence Wong announced a significant suite of retirement adequacy measures. First, the $8.2 billion Majulah Package. The Government has enhanced the Majulah Package, after it was announced at the National Day Rally last year, to support all Singaporeans born in 1973 or earlier. This includes the Pioneer and Merdeka Generations. The Majulah Package is now expected to benefit 1.6 million Singaporeans, up from around 1.4 million Singaporeans previously estimated. Second, enhancements to the WIS, SSS and the MRSS. Third, moves to rationalise the CPF system, in particular the closure of the Special Account (SA) and the raising of the Enhanced Retirement Sum (ERS). With your permission, Mr Chairman, may I ask the Clerks to distribute an infographic? This infographic illustrates how every older Singaporean will benefit from our comprehensive suite of measures for retirement adequacy. Members may also access the infographic through the SG Parl MP mobile app.”
“As mentioned again in the Forward SG report, the Government will work with the Labour Movement, industry and communities of tradespeople to develop and testbed initiatives to professionalise skilled trades, such as developing structured training and career pathways. We will study interventions for electricians first, with a view to scaling to more occupations. On Mr Pritam Singh's proposal to legislate retrenchment benefit, including for those in "hands" and "heart" roles, we have no plans to do so. This is consistent with our stance on retrenchment benefit for all employees. Legally mandating retrenchment benefit will affect the viability of businesses which are already in financial difficulty and put existing employees at risk. Additionally, the businesses that can afford to pay more will default to the legislated minimum. I am going to move to the next section on "uplifting you" and how we ensure that no one is left behind. Securing better jobs during an individual's working years empowers and enables you to be financially secure when you retire. We want to assure Singaporeans that as long as you work and contribute consistently to CPF, you will be able to meet your basic retirement needs. Over the last decade, the proportion of active CPF members setting aside their Full Retirement Sum (FRS) at age 55, either fully in cash or a mixture of property and cash, has improved from five in 10, to seven in 10 today. Therefore, it is not as alarming as what the Leader of the Opposition characterised retirement adequacy to be: a "serious and ongoing concern". Even then, the Government is committed to uplifting Singaporeans who need more help as part of our refreshed social compact.”
“We also want to make career guidance, both in-person and through AI-enabled digital platforms, more accessible to even more Singaporeans. Mr Pritam Singh asked about how we intend to report on the success of our initiatives to improve employment outcomes for Singaporeans. I would like to assure the Member that our broad indicators have shown that our efforts thus far have been quite successful. Resident employment is expanded annually, even through the recent pandemic, and our labour force participation remains high at 68.6%. In 2023, the resident unemployment rate was stable and low at 2.7%. The resident long-term unemployment rate also remains low at 0.7%. Real wages have grown over the longer-term, underpinned by sustained productivity growth. Mr Sharael Taha and Mr Liang Eng Hwa have asked for an update on the financial support scheme for involuntarily unemployed jobseekers. As the Deputy Prime Minister said, we will announce the scheme later this year. We have considered feedback and suggestions from tripartite partners and the public, including recommendations from the NTUC-SNEF PME Taskforce in 2021 and the Citizens' Panel on Employment Resilience in 2023. We are close to finalising the scheme parameters, and I want to assure the House that we have, indeed, looked at best practices around the world. For example, our payouts will be conditional on jobseekers making the effort to actively search for a job. This will avoid the unintended consequences faced by other countries in implementing similar schemes. Ms Yeo Wan Ling, Mr Pritam Singh and Mr Gerald Giam asked if we could better recognise the contributions of tradespeople and make skilled trades more attractive for Singaporeans.”
“The OMIP aims to encourage businesses with overseas expansion plans to send employees with little to no overseas market experience for overseas postings. Employees will benefit from reskilling through on-the-job, in-market training in global or regional roles offering good prospects, whether in technology, business development or beyond. Our businesses will also be better positioned to expand and to compete in overseas markets, with a strong globally oriented team. The OMIP will provide financial support to the companies. More details on the GBLP and OMIP will be announced in the next few months. To take advantage of programmes like the CCPs, GBLP or OMIP, workers will need to be better equipped to make informed training and career decisions and longer-term career plans. This is why we launched the CareersFinder feature on the MyCareersFuture portal last year. CareersFinder harnesses data and AI to help Singaporeans explore pathways to acquiring new skills and reach their career goals. In the first six months, more than 15,000 individuals have used CareersFinder. The early signs are encouraging as we find these workers do go on to broaden their horizons by applying for jobs across a wider range of occupations. As Taylor Swift aptly puts it from her hit song titled, "You belong with me", "Tell me about your dreams, I think I know where you belong". I hope it is with Forward SG. We will empower Singaporeans to seize their dream career opportunities by helping them take charge of their career health. We are looking at ways to enable workers to better signal their skills to employers or potential hirers, so that they are better recognised and rewarded. This will strengthen the linkage between skills acquisition and career progression.”
“We are supporting NTUC to set up more CTCs to work hand-in-hand with company management to drive business and workforce transformation. We are working with NTUC, SNEF and other TACs in the financial services, ICT, retail and precision engineering sectors to implement structured career guidance workshops. This will equip line managers and HR with capabilities to support their workers in developing career development plans. Finally, MOM and SNEF has set up the Alliance for Action (AfA) on Widening Access to Talent last year. This AfA, led by Dr Bicky Bhangu from SNEF and Ms Aileen Tan, a HR master professional, is working with progressive businesses and TAC leaders to develop practical solutions to support skills-based hiring and workforce agility. As employers transform their businesses and raise productivity, workers will benefit from more meaningful jobs and improved wages. Workers must also be motivated to better plan for their own careers, pick up relevant skills and venture beyond their comfort zone. Business leaders have consistently told me that overseas experience is valuable for career progression and, in particular, for corporate leadership positions. We will do more to help. To support Singaporeans to venture overseas and progress in their careers, the Government will work with businesses to expand overseas opportunities for PMETs. The Minister for Trade and Industry announced that the Government will introduce the Global Business Leaders Programme (GBLP) to support businesses that send their Singaporean workers with leadership potential on overseas postings. The GBLP adds to the existing range of leadership development programmes. To complement these leadership development programmes, WSG will launch a new Overseas Markets Immersion Programme (OMIP).”
“Between 2017 and 2023, over 7,300 employers and 47,000 workers have benefitted from the CCPs. One such worker who benefitted was Mr Poh Teck Hian. With the support of WSG, he secured a senior project manager position with MDesign Solutions Pte Ltd, which is a precision engineering firm. His employer enrolled him in the CCP for Advanced Manufacturing Engineer to enhance his skills in robotics and electronic firmware. He is performing well in his new role, leveraging on his past engineering experience and the new skills he has picked up from the CCP. To Mr Patrick Tay's suggestion, I am happy to announce that we will be enhancing our CCP to provide greater support to employers. First, we will increase the salary support caps. For mature or long-term unemployed workers, the maximum salary support will be raised from $6,000 to $7,500 per month. For other CCP participants, we will increase the cap from $4,000 to $5,000 per month. This means that employers can receive up to $45,000 of salary support for each worker for a six-month conversion programme. We will similarly increase the monthly training allowance cap for attachments under the CCPs, from $4,000 to $5,000. We will also expand CCP for existing workers within the company. Today, CCPs can only be used to reskill existing workers in jobs that are at risk of redundancy. Going forward, we will support employers who are proactively reskilling existing workers to take on new growth job roles. On Mr Tay's suggestion to expand the range of CCPs, WSG will continue to review the programme offerings in consultation with the industry. I would urge and encourage all employers to get in touch with WSG to explore how they can tap on the CCP to meet their talent needs. 3.45 pm The Government is not doing this alone.”
“We encourage workers to take charge of their own career health because in this age of change and disruptions, they should have better awareness of what their career prospects are, keep their skills relevant, stay on top of the competition and seize new opportunities. Mr Patrick Tay and Mr Liang Eng Hwa have asked about how the Government will work with employers, workers and intermediaries to adopt a collective mindset of building career health. Mr Xie Yao Quan also asked about our plans to develop a future-ready workforce. The Government cannot do this alone. We will need a whole-of-society effort involving workers, employers and labour market intermediaries. I will start with how we are supporting employers. Employers that support the career health of their workers will be able to better attract and retain talent, tapping on adjacent talent pools to grow. With an agile workforce, employers will be able to quickly pivot to new opportunities in a more complex and a more uncertain economic environment. To help employers respond and plan for business transformation, the Government has launched the Jobs Transformation Maps (JTMs). A total of 16 JTMs have been completed, covering some 1.5 million resident workers. We will progressively launch four more in new growth areas, such as generative AI and sustainable finance. These JTMs will help employers better understand how to redesign jobs and how to reskill workers for new jobs. However, reskilling workers for new roles can be costly upfront, and employers bear the risk that some workers may not adjust well to the demands of the new jobs. Hence, WSG offers the CCPs, to co-share costs with employers who reskill new hires or existing workers for new or enhanced job roles.”
“As Deputy Prime Minister Wong has emphasised, transformation is the only way that Singapore can achieve productivity-driven growth. Our Work Permit framework will therefore need to evolve to spur business. The overall direction is clear; we need to improve the quality of our Work Permit holders and manage overall numbers. To this end, as announced at MTI’s COS on Friday, we will be making changes to the foreign workforce policies in the marine shipyard sector as a first step. The Dependency Ratio Ceiling (DRC) for the marine shipyard sector will be gradually reduced. As a first step, the DRC will be reduced from 77.8% to 75%. In addition, the levies will be increased. For basic-skilled R2 Marine Shipyard Work Permit holders, the levy will be increased by $100, from $400 to $500. For the higher-skilled R1 Work Permit holders, the levy will be increased by a smaller amount of $50, from $300 to $350. Changes to the DRC and levies will take effect from 1 January 2026 to give businesses lead time to adjust. Mr Mark Lee also asked for an update on the Manpower for Strategic Economic Priorities Scheme (M-SEP). M-SEP provides additional time-bound Work Permit and S Pass quota to firms that contribute to Singapore's economic strategic priorities. Firms from sectors, such as construction, manufacturing and retail, have benefited from M-SEP since its inception a year ago. We will take in Mr Lee's suggestion as we finetune the scheme, alongside industry feedback. Let me now turn to strengthening our local workers. The Forward SG Report has identified career agility and resilience as an important focus in our refreshed social compact.”
“On the other hand, our fellow MP, Mr Sharael Taha, asked about how the Government intends to manage the inflow of Work Permit holders, given our resource constraints. This is therefore the tension that we grapple with constantly. To Mr Lee and Mr Chia's concerns on whether employers have sufficient manpower, the overall numbers speak for themselves. The number of Work Permit holders today has surpassed the COVID-19 levels in 2019 by 12.2%. But nevertheless, let me still respond to their specific suggestions. On Mr Lee's suggestion, we already provide targeted flexibility for some essential job roles with limited automation and localisation potential. We will continue to review the areas where more flexibility may be required. However, there is a limit as to how much further we can differentiate to more granular job areas within the services sub-sectors. There are also practical challenges as job roles today can be very fluid and firms can circumvent our rules by declaring a business activity or job role in an area with more generous quota. On Mr Chia's suggestion, training can take many different forms. For example, workplace learning, such as on-the-job training, can help employers better manage the challenges around sending staff for external courses. It would not be viable for us to give additional quota to every single company that invests in training of their local workforce. It can also be counter-productive, as the availability of cheaper foreign labour reduces the incentive for employers to re-design jobs and reskill their workers for greater productivity gains. Instead, we support firms in developing their local workforce. I will provide greater clarity in the next segment.”
“As COMPASS was only implemented in September 2023, my update is therefore based on very preliminary data. The proportion of EP holders in shortage occupations has increased since COMPASS was implemented, which shows that the list reflects real shortages in the industry, with 20% of new EP holders in these shortage occupations using the bonus points to pass COMPASS. Therefore, the SOL is very helpful in ensuring that COMPASS does not hinder business growth because of the shortage of skills locally. As we transform our economy, some sectors in the green economy and agritech will inevitably have shortages. This is especially so as these sectors are still nascent and we are pivoting to anchor them here along with the talents needed. While we partner agencies in recruiting them here, we are also contemporaneously investing in developing our local talents for these jobs. To Mr Singh's question on how MOM works with agencies to develop the local pipeline in areas of skills shortages, we are doing this systematically. As part of the process for evaluating occupations for the SOL, MOM considers sector agencies' commitments to develop the local pipeline to address shortages in the medium-term in addition to the extent of the skills shortage. We evaluate the progress on these commitments when we refresh the list every three years. Work Permit holders are also a critical part of our labour force. Many support essential services that local workers do not want to do. Mr Mark Lee suggested re-evaluating the foreign worker quotas for foreign manpower for services sub-sectors facing manpower challenges, for specific job roles. Mr Edward Chia supported granting additional foreign worker quotas to firms upon commitments to human capital improvements and training for local workers.”
“MOM has heard the concerns from the various trade associations and chambers, such as the Singapore Business Federation, on rising costs of manpower and constraints in hiring. The revised EP qualifying salary will only apply to new EP applications from 1 January 2025 and to renewal applications from 1 January 2026. This means that firms with existing EP holders have a longer runway, potentially up to 2028, to manage the impact of these changes and prepare their hiring plans. Even as we continue to attract top talent to grow our economy, our Work Pass framework needs to be strengthened to ensure that firms develop their local workforce and treat locals fairly. Mr Desmond Choo and Mr Patrick Tay asked how our EP framework and Fair Consideration Framework will help to achieve this. Under COMPASS, firms with a lower local PMET share relative to their sector will score fewer points on the firm-level criteria, making it harder to pass COMPASS. These firms are, hence, incentivised to improve their local PMET share. TAFEP has been engaging and supporting firms that score poorly on firm-related attributes under COMPASS to help them improve their workforce profile and adjust to COMPASS. More than 440 firms have attended TAFEP's workshops over the past year. Firms with unfair hiring practices will still be taken to task under the Tripartite Guidelines for Fair Employment Practices (TGFEP) and under the Workplace Fairness Legislation in the future. Mr Pritam Singh and Mr Desmond Choo asked about the effectiveness of the SOL in easing skills shortages. The list was designed to award bonus points on COMPASS to EP applicants filling acute occupational shortages in areas of strategic importance for the economy.”
“Our young local Singaporeans have also benefited from attending his many courses. In 2022, I announced the Complementarity Assessment framework (COMPASS). It assesses EP candidates more holistically, based on individual and firm-related attributes. This has been implemented in September last year. Businesses, as well as HR professionals, have welcomed the introduction of COMPASS. The transparent criteria provided clarity for their manpower planning. With the enhanced Self-Assessment Tool, businesses can see how their potential applicants fare on COMPASS before submitting their application. If their candidates cannot pass COMPASS, businesses will know precisely why and what they need to do to pass. 3.30 pm To ensure that the quality of our foreign workforce improves in tandem with our local workforce, I have said previously that the minimum costs of hiring for S Pass and EP holders would be pegged to the top one-third of our local associate professionals and technicians (APTs) and professionals, managers, executives and technicians (PMETs) respectively. By regularly updating the qualifying salaries based on the set wage benchmarks, we ensure a level-playing field for locals. For the S Pass, we had previously announced a three-step increase in the S Pass qualifying salary and levy, with the next step taking place in 2025. Therefore, there will be no adjustment to the S Pass qualifying salary and levy this year. For EPs, in line with how the benchmarks have moved, we will be increasing the EP minimum qualifying salary from $5,000 to $5,600 per month. For the financial services sector which has higher wage norms, this will be revised from $5,500 to $6,200 per month. The EP qualifying salary will also continue to increase progressively with age.”
“But as a small country, we cannot increase the number of foreign workers indefinitely due to resource constraints. We have to, therefore, be very selective about the quality of foreign workers that we take in and ensure that they are deployed in the more productive areas of our economy. So, with this in mind, we introduced major changes to our Work Pass framework over the past two years. In January 2023, we launched the Overseas Networks and Expertise Pass (ONE Pass). It is a highly selective pass and is aimed at facilitating the recruitment of top global talent who possess valuable networks, as well as deep skills and expertise. In an era where talent is scarce, businesses follow talent. Our ONE Pass holders are the proverbial "rainmakers". While they are not large in numbers, they are the creators of opportunities and they generate good jobs in their respective fields. We have received good interest in the ONE Pass. As of 1 January 2024, we have approved nearly 4,200 ONE Pass applications. Let me share with Members two examples. Mr Phil Inagaki is the managing director of Xora Innovation, an early stage, deep-tech investment platform of Temasek. Before he assumed his current position, he founded and raised US$120 million in funding across five startups in businesses and industries, such as AI, clean energy and semiconductors. He helps our local startups translate scientific breakthroughs into commercial successes. The ONE Pass is also targeted at talents in areas, such as sports, arts and academia. Assoc Prof Marco Tomamichel from the National University of Singapore (NUS) is an example of academic talent. His work focuses on quantum cryptography, which allows sensitive information to be encrypted and decrypted securely.”
“We will also help employers strengthen the capabilities of their workforce and empower our local workers to take charge of their career health and seize new opportunities. Our second focus is to "uplift you", to ensure no one is left behind. As announced at Budget 2024, we will roll out the Majulah Package to support our "young seniors", who are currently in their 50s and early 60s. Senior Minister of State Koh Poh Koon will recap the measures to provide greater assurance for our seniors who may be more vulnerable. Senior Minister of State Zaqy Mohamad will elaborate on how our tripartite partners work hand-in-hand to uplift our lower-wage workers. Our third focus is to "care for you", by fostering more inclusive and fair workplaces. We will empower senior workers to continue working, if they wish to, by raising our retirement and re-employment ages. Minister of State Gan Siow Huang will provide more details, and she will also be giving updates on other workplace policies. The Government will continue working closely with our tripartite partners on all three focus areas. On this note, I would like to express my deepest appreciation to President Sister K Thanaletchmi, Secretary-General Brother Ng Chee Meng, immediate past president Sister Mary Liew from the NTUC, Brother Dr Robert Yap, President of SNEF and to all of our sisters and brothers in NTUC and SNEF for their strong support in the past year and the years ahead. [Applause.] Let me start with our efforts to strengthen businesses and workers. I will first share our approach to spur business transformation through our foreign workforce policies, before outlining our efforts to empower our local workers. As an open economy, we will need to welcome global talent to compete on the world stage.”