SINGAPORE — Retrenched workers in Singapore may soon receive unemployment support as part of the upcoming national budget, set to be announced on Feb
SINGAPORE — Retrenched workers in Singapore may soon receive unemployment support as part of the upcoming national budget, set to be announced on Feb 14.
According to reports, economists suggest that this type of support could be limited to a specific period and may target vulnerable workers. This initiative had been proposed by tripartite partners back in 2021, The Business Times (BT) noted on Tuesday (Jan 30).
The idea of unemployment insurance was first brought up in 2020 during the Budget debate by Workers’ Party MP Sylvia Lim (Aljunied GRC), who proposed assistance for older retrenched workers. Then-Manpower Minister Josephine Teo acknowledged the proposal, saying the government would “keep an open mind,” but deemed the current support measures as “more sustainable.”
In 2021, a task force formed by the National Trades Union Congress (NTUC) and the Singapore National Employers Federation (SNEF) recommended the introduction of “unemployment income support” to help professionals, managers, and executives (PMEs) facing job displacement.
NTUC has continued to advocate for this cause, with Manpower Minister Tan See Leng acknowledging the government’s intent to explore options for structuring such a scheme.
Finance Minister Lawrence Wong hinted in January that training could be a requirement for receiving unemployment support, framing it as “re-employment support” rather than unemployment aid. He emphasized the importance of workers staying motivated to return to the workforce by upgrading their skills and seeking new opportunities.
NTUC’s assistant secretary-general Patrick Tay proposed that this support be targeted at PMEs in their 40s to 60s who are at risk of job loss and struggle with re-employment. The scheme may combine financial aid with job search or training support to encourage active participation in the labour market.
However, some analysts caution that it may be premature to introduce such measures in Budget 2023. Singapore University of Social Sciences (SUSS) associate professor Walter Theseira noted that the details still need to be refined and that there is no immediate rush if the labour market remains stable.
In Parliament in 2020, Ms. Lim highlighted the benefits of unemployment insurance, stating that it could help workers weather economic disruptions. She stressed the importance of addressing citizens’ concerns, warning that neglecting such anxieties could open the door to populism and nativism.
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