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Mr Speaker, COVID-19 has grabbed headlines as the first major public health emergency of this new decade, and I am glad to see that the Government is dedicating a substantial $5.6 billion to help businesses and workers most affected by the crisis.
But while our nation unites to tackle the pandemic, we must not forget that long-term structural challenges – such as the declining support for globalisation, an aging workforce, and the uncertainty surrounding our economy – continue to persist. Worryingly, some of these challenges are being accelerated due to COVID-19. The confluence of these factors will impact our entire economy, and I am heartened to note that the Government will be investing $8.3 billion to drive industry transformation and develop our workers for the future. However, more can be done to help our PMETs, which according to a 2019 report published by DBS Senior Economist, Irvin Seah, are the “new vulnerables” among our workforce.
My speech today will focus on how we can help vulnerable PMETs stay employed, be more employable, and help those who are feeling “sandwiched” financially. Let me elaborate.
Supporting our Vulnerable Mid-Career PMETs
Mr Speaker, I am happy to note that Budget 2020 has placed an emphasis on helping mid-career PMETs, currently in their 40s and 50s, through the Mid-Career Support Package. This is a timely move as PMETs in this age group are arguably at one of the most vulnerable stages in their careers. And they are vulnerable in two key areas – employment and employability.
Employment Vulnerability
Let me first touch on employment vulnerability, or better known as job security. Employment data over the past decade has shown that PMETs are increasingly at risk of being retrenched. According to the retrenchment statistics released by the Ministry of Manpower, the proportion of PMETs among workers being retrenched annually has grown from 37% in 2008, to 65% in 2018. This upward trend is unlikely to be reversed anytime soon, and will be accelerated in the event of an economic downturn.
Employability Vulnerability
PMETs, particularly those in their mid-careers, are also vulnerable in terms of employability. Those who do not keep their skillsets current will find it hard to secure new jobs when they are displaced. As the Deputy Prime Minister noted in his Budget speech, many of our mid-career PMETs grew up in a time when it’s seen as the norm to stay in one company for life, until retirement. However, with technology cycles shorter than ever, many are now at risk of being displaced by fresh graduates if they do not equip themselves with new technical and technological skills.
Quantitatively, we are already seeing this trend happening. If we analyse the rate of re-entry into employment among retrenched residents from MOM’s Labour Market Survey, it shows that workers aged 40 and above have lower re-entry rates than their younger counterparts.
So how then, can we better support this group of vulnerable mid-career PMETs to have better job security, and boost their employability if they get displaced? I am proposing three strategies:
One, build a strong ecosystem of job security support within each sector;
Two, bring training closer to our mid-career PMETs; and
Three, equip them with adaptive skills, beyond technical and technology skills.
Fostering an Ecosystem of Job Security Support Within Each Sector
Let me start with providing better job security support to our PMETs. First, I would like to commend Budget 2020 for introducing the Stabilisation and Support Package, amounting to $4 billion, which will support our enterprises in keeping their workers during the economic slowdown, and position them to rebound quickly once the crisis is over.
However, in the longer-term, we need to ensure that our economic sectors are self-sustaining. And in my view, the concept of the Job Security Council is a useful way forward. By creating a structure to formalise the matching of displaced workers in an affected sector, to a growing sector in need of manpower, we will achieve a more resilient employment landscape. The Job Security Council will benefit all working professionals and will go a long way to mitigate the increased risk of retrenchments that PMETs face in today’s fast-changing operating environment. I am therefore glad to see such strong support during the pilot phase, and I urge more companies to come on board this initiative.
Bringing Training Closer to PMETs
Mr Speaker, we also need to ensure that our PMETs remain employable and constantly upgrade themselves to be able to take on the new jobs of tomorrow. To do so, we must bring training closer, in terms of relevance, cost, and location.
Relevance
First, we need to make training more relevant to our PMETs. From the feedback that I have received in my weekly visits to workplaces, many PMETs have told me that while they understood the importance of going for training and staying current with industry trends, they are unable see how going for generic courses can help them in their specific line of work. This is why the NTUC, through its affiliated unions, has initiated the formation of Company Training Committees (CTCs) with our unionised companies. CTCs are meant to help our workers answer the two common questions of “train what” and “train for what”. Through the CTCs, we work with companies to assess their specific business and operational needs, and translate these needs into a targeted training plan for employees to close the skills gap and, at the same time, remain employable.
Cost
In the area of cost, training must be made more affordable and within financial reach for our PMETs. In previous Budgets, my fellow Labour MPs and I had called for top-ups to the SkillsFuture Credit, and I am glad to see that the suggestion has been adopted. The top-ups will certainly help our workers offset the costs of keeping their skillsets relevant. I also support the $500 special top-up to the SkillsFuture Credit accounts for mid-career workers aged 40 to 60.
I note, however, that this Special SkillsFuture Credit is limited for use to only 200 selected career transition programmes. I hope that the Government can expand this to include all WSQ courses, as well as programmes that help PMETs to deep-skill themselves. Deep-skill training programmes require a certain level of experience as a pre-requisite, and are often more costly due to their small niche. Perhaps, the Government can consider mapping deep-skill training courses to the proficiency levels found in the Skills Framework and allow eligible programmes to be further subsidised. This way, we can help to reduce the out-of-pocket expenses for those who wish to gain a deeper mastery of their profession.
Additionally, with our ageing workforce and the corresponding rise in our retirement and re-employment ages, I hope that the Government can extend the Special SkillsFuture Credit top-up to those beyond 60 years of age. Just as we should support those who wish to continue working beyond 60, we should also support them in their pursuit of lifelong learning.
I would also urge the Government to bring forward the disbursement of the SkillsFuture Credit top-ups, from the current date of 1st October. As the Chinese proverb goes, “远水救不了近火”. We should disburse the additional SkillsFuture Credit sooner, rather than later, so that our workers can attend the necessary training during this near-term economic lull, and be equipped with new skills and confidence when our respective industries recover.
Location
Beyond cost, we need to bring the training programmes physically closer to our mid-career PMETs. Some courses cannot be done online. For courses that require a physical premise, schools, institutes of higher learning, and neighbourhood Community Centres (CCs) serve as a more convenient location for our working people to go and upgrade themselves.
The Labour Movement will do our part to bring training closer to all working professionals. Here, I would like to announce that our UPME Centre will evolve to a mobile centre and bring its services closer to our PMETs. Currently, the UPME Centre sits at the NTUC Members’ Hub in One Marina Boulevard, helping to equip PMET union members with a growth mindset through services such as career development workshops and job preparation courses. The existing Centre has done well, serving over 1,500 cases in the past three years. Moving forward, we will bring these workshops and training programmes closer to PMETs. For a start, UPME Centre will set up on-demand mobile centres at the three CCs located within the Moulmein-Cairnhill constituency. We will gradually extend our services to all 11 CCs located within Tanjong Pagar GRC. I hope that the Government can partner with us to progressively open all CCs, and even RC Centres to the mobile UPME Centre, so that the Labour Movement can deliver our programmes closer to the heartlands.
Equipping Mid-Career PMETs with Adaptive Skills
Mr Speaker, as the pace of technological transformation at the workplace accelerates, employers are increasingly looking to hire and retain candidates with the right set of adaptive skills, beyond just technical skills, that can enable them to succeed at the workplace. Skills, such as project management and communication, are becoming more in-demand.
The Labour Movement will therefore work with our extensive network of professional associations to equip more PMETs with adaptive skills and improve their employment prospects. I am pleased to share that we will be partnering with the Project Management Institute, Singapore Chapter (SPMI) to roll out free workshops on project management fundamentals through our new mobile UPME Centre. We will also work with ClickInsights, a digital marketing firm, to provide free digital marketing workshops. NTUC will continue working with our professional associations to expand the range of our adaptive skills training. I urge all PMETs to sign up as a NTUC member to enjoy access to these workshops, and to tap on the yearly $250 union training subsidy, which can be added onto your SkillsFuture Credit top-ups to improve your employability.
Providing Financial Management Support to Sandwiched PMETs
Mr Speaker, as the demographics of our working population shifts to become majority PMETs, more emphasis needs to be placed in equipping them with the necessary financial management skills and tools. Many PMETs find themselves “sandwiched” financially, as they have both young children and elderly parents to care for. It is important that we help them navigate through this period and emerge with sound financial footing, so that they can achieve their desired quality of life during retirement.
The Labour Movement has been doing our part to support workers in financial planning. MoneyOwl, one of our new social enterprises, was created to offer comprehensive and conflict-free advice to families and help them plan for their retirement needs. Since it was formed in 2018, MoneyOwl has benefited over 5,000 people. I am happy to share that MoneyOwl has recently launched a comprehensive financial planning service to help Singaporeans plan for retirement and for their children’s educational needs. This comprehensive tool incorporates the use of the various CPF schemes, and provides workers with an analysis of their financial health, including gaps in their insurance protection, and investments based on their risk profile.
Moving forward, NTUC will partner with the Financial Planning Association of Singapore to run complimentary financial planning workshops for union members. These workshops will be made available through the mobile UPME Centre, to benefit more PMETs and their families.
The Labour Movement, through the good work of our social enterprises such as NTUC Fairprice, will continue to do our part to help moderate the cost of living in Singapore. Through the Consumer Association of Singapore, we have also launched tools such as Price Kaki and Fuel Kaki, to help consumers compare prices of essential household goods, hawker food and fuel. I urge everyone to tap on these resources to get more bang for your buck.
Conclusion
Mr Speaker, as the Deputy Prime Minister had rightly pointed out, Singapore’s biggest asset is our exceptional people. Perhaps COVID-19 can serve as an opportunity amid a public health and economic crisis. I call on employers to use the resources presented at Budget 2020 as a springboard to position your businesses and workers to ride the waves of recovery. We can also do more to equip our PMETs with the right financial planning skills and help them in their journey towards better retirement adequacy. Together, let us continue investing in our people and ensure that our people remains exceptional.
Finally, to all our PMETs, the Labour Movement is aware of your concerns and your anxieties. We have weathered through storms and crisis before, and we will do so again. Regardless of whether you are a fresh graduate, in your mid-career, or in your silver years, the Labour Movement will be there for you because every worker matters. Join us, and together, we can, and we will turn crisis into opportunity and emerge stronger and more future-ready than before.
Mr Speaker, I support the Budget.
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