Human capital remains a top priority for Singapore, and to stay competitive as a regional hub, the government aims to keep the country open and connec
Human capital remains a top priority for Singapore, and to stay competitive as a regional hub, the government aims to keep the country open and connected to the world. This includes equipping workers with the necessary and up-to-date skills throughout their careers, enhanced by a more effective and comprehensive SkillsFuture system.
This was shared by Deputy Prime Minister and Finance Minister Lawrence Wong at the Singapore Economic Policy Forum on Oct. 18.
Wong began his speech by addressing the current turbulent global economy, marked by slowing growth and rising inflation. To thrive in this environment, Singapore will adopt a “twin strategy” — staying open to attract top companies and talent while developing the local workforce.
Staying Open is Key to Singapore’s Success
Wong acknowledged that Singapore’s maturing economy makes it harder to sustain previous levels of broad-based growth. However, the country’s status as an open economy and regional hub has been a significant asset and a key contributor to its success. Wong emphasized that remaining open and connected to the world is not only essential but existential for Singapore’s survival.
Unfortunately, Wong pointed out that populism and economic nationalism are on the rise globally. In Singapore, there have been populist calls to reduce the number of foreigners to “reclaim more jobs for Singaporeans.” While these arguments may seem reasonable, Wong argued that such thinking is flawed. Overly restrictive policies on foreigners could lead to global companies leaving Singapore, ultimately resulting in job losses for both locals and foreigners.
Developing the Local Workforce
Wong outlined three key efforts to support the development of the local workforce. First, the government will continually update manpower policies to ensure that work-pass holders are of the “right calibre.” Second, employers will be held to fair employment practices, with legislation soon to signal “zero tolerance” for workplace discrimination. Third, the government will invest heavily in skills training to develop more Singaporean specialists and leaders across all sectors.
Improving SkillsFuture
To further equip Singaporeans, Wong stated that the government will continue to enhance SkillsFuture, which in 2021 benefited over 660,000 Singaporeans. However, he acknowledged that short-term upskilling efforts alone are insufficient for building “deep skills.” As industries change rapidly, more workers will need significant support to upgrade their skills or pivot into new sectors, particularly mid-career workers in their 40s and 50s.
Wong suggested that more substantial efforts are required to support these workers, who may face heavier personal obligations, such as caregiving. He also called for a fundamental upgrade of the SkillsFuture ecosystem, exploring options like additional SkillsFuture Credits at major life milestones and broader implementation of training leave policies.
Recognizing the Value of Different Types of Work
Wong also addressed the growing divergence in wages between university graduates and those from ITE and polytechnic backgrounds. He emphasized the need to recognize the value of technical “hands-on work” and “heart work” in service and community care roles, alongside cognitive roles.
The government will continue efforts to reduce wage gaps by uplifting the wages of lower-wage workers through the Progressive Wage Model. Businesses, Wong said, should also play a role by recognizing the value of diverse job roles and paying workers well.
Building a Better Singapore Together
Concluding his speech, Wong highlighted the goal of building a Singapore where people can aspire to meaningful careers, receive support to realize their potential, and have their contributions valued. He acknowledged that realizing this vision will require significant changes, but expressed confidence that these changes can be achieved if everyone works together.
“This is the great task of nation-building that falls upon our shoulders, and this is the Singapore that I hope to see in my lifetime,” Wong said.
Top photo from Ministry of Communications and Information and Ministry of Manpower / FB
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