Introduction
Madam Deputy Speaker. This year’s Budget, themed “Onward Together for a Better Tomorrow,” reflects our collective ambition to build a more inclusive and resilient society as Singaporeans contend with job insecurity amidst rising costs of living. It is a Budget that prioritises uplifting all Singaporeans, including our lower-wage workers, by strengthening social safety nets and ensuring sustainable economic growth. As we move forward, it is crucial to reinforce our commitment to these workers, ensuring they receive fair wages, improved working conditions, and the respect they deserve.
Singapore’s approach to uplifting lower-wage workers has never relied on a single measure but rather a comprehensive suite of interventions – including the Progressive Wage Model (PWM), the Local Qualifying Salary (LQS), Workfare Skills Support (WSS) and the Workfare Income Supplement (WIS). These policies form the foundation of our commitment to ensuring sustainable and inclusive wage growth for our lower-wage workers.
Today, I want to focus on following three areas to strengthen the protections for our workers, especially lower-wage workers: 1) enhancing Workfare to boost retirement adequacy of older lower-wage workers, 2) improving working conditions for lower-wage workers, especially outsourced workers and 3) empowering workers via M3 Focus Area 4 (FA4).
As economies evolve, workers—especially those in lower-wage roles—must be empowered with better protections, stronger financial security, and opportunities for long-term stability. Enhancing Workfare schemes can provide older, lower-wage workers with greater retirement adequacy, ensuring they can transition into later years with dignity. At the same time, improving working conditions, particularly for outsourced workers, is crucial to fostering fair and sustainable employment practices. Together, these focus areas aim to build a resilient and inclusive workforce that can thrive in a rapidly changing economic landscape.
Enhancing Workfare to Boost Retirement Adequacy of Older Lower-Wage Workers
Let me commence by focusing on two key pillars of support, LQS and WIS, and examine how they can be further strengthened to better support our workers in the years ahead. WIS plays a crucial role in supplementing the income and retirement savings of lower-wage workers while encouraging regular employment.
I appreciate the Government’s commitment to continuously enhancing WIS. This year, WIS payments will increase to $1.4 billion, benefitting half a million lower-wage workers. I am also heartened to note that most of these enhancements are targeted at vulnerable groups, such as older workers and persons with disabilities.
As the Government regularly reviews Workfare, I seek an assessment of how effective WIS has been in improving the wages and retirement adequacy of lower-wage workers in Singapore.
We must also do more to secure the long-term financial wellbeing of our older lower-wage workers. Many lower-wage workers retire with significantly lower CPF savings, affecting their ability to afford healthcare and daily necessities in their later years. WIS payments increases with age, but currently max out at 60 years old, even though many workers continue working well beyond that. I urge the Government to introduce additional age tiers beyond 60, with progressively higher WIS payments, to better support older workers who remain active in the workforce.
Additionally, the minimum WIS payout, both in cash and CPF, is just $10 per month. Given rising costs of living, I urge the Government to review and raise this amount to provide more meaningful support for workers.
Leverage the Economy’s Momentum to Raise LQS, Ensuring Wage Growth for Our Most Vulnerable Workers
LQS ensures that local workers are employed meaningfully rather than on token salaries for firms to access foreign workers. It serves as an important wage floor, ensuring that lower-wage workers receive a minimum level of pay across various sectors.
We appreciate the Government’s efforts in increasing the LQS to keep pace with rising local wages, such as the recent increase from $1,400 to $1,600 announced in Budget 2024, with the LQS threshold for part-time local employees raised to $10.50 per hour.
Therefore, I call on the government to update on the effectiveness of the LQS since it was first introduced, and whether its implementation has led to unintended consequences, such as job losses. In particular, I hope that the LQS has truly contributed to raising wages for lower-wage workers across the board, and that the data does reflect this desired trajectory too. Relatedly, it would be helpful for the Government to clarify its broader policy approach towards LQS implementation, for instance, the wage percentile at which the LQS should be set at to effectively support our resident lower-wage workers while balancing against business costs and sustainability.
Improving Working Conditions for Lower-Wage Workers, Especially Outsourced Workers
While we have made progress in uplifting wages, we must ensure that lower-wage workers have good working conditions and are not taken advantage of.
Rest Areas for Outsourced Workers
One critical issue is the need for proper, accessible rest areas for outsourced workers, such as cleaners and security officers. Many of these workers still struggle to find adequate spaces to rest during their breaks. The lack of rest areas can result in them working beyond their maximum cap of overtime (72 hours every month for security officers).
In 2021, I raised this issue in the House, and in the same year, the WorkCare Grant was introduced by the Ministry of Manpower to provide financial support for companies setting up rest areas for outsourced staff. However, applications for the Grant have closed since 31 August 2023.
I ask the Minister for Manpower whether a review of the criteria and eligibility for the WorkCare Grant has been conducted. Would the Government consider upstream policy measures such as exempting dedicated rest areas for outsourced workers from the Gross Floor Area (GFA) calculation for new developments? This could incentivise building owners and developers to incorporate proper rest facilities at the planning stage.
Review Leave Resetting for Outsourced Workers
Another persistent issue is leave resetting for outsourced workers. MOM statistics show that 18,800 full-time resident employees in their first year of employment are receiving only seven days of paid annual leave. Many of these are lower-wage and outsourced workers, such as cleaners and security officers.
For outsourced workers, each time a service buyer changes contractors, their leave entitlements may be reset, even if they continue in the same job at the same site. This creates instability, as workers may repeatedly lose accrued benefits despite continuing in the same role.
Although tripartite advisories encourage continuity of benefits, they appear insufficient. I call on the Government to work with NTUC and our unions to conduct a thorough review of leave resetting for outsourced workers and explore stronger measures to protect them from unfair disadvantages.
Focus Area 4: Empowering Workers for the Evolving Economy
Madam Deputy Speaker, allow me to say some words in Malay.
Ekonomi global yang berkembang dan kemajuan teknologi yang pesat menuntut kami melengkapkan tenaga kerja dengan kemahiran yang diperlukan dan mobiliti kerjaya untuk berkembang maju. Fokus Area 4 mengenai Penggajian dan Kebolehkerjaan dalam rangka kerja M Kuasa Tiga berstruktur untuk mencapai matlamat ini melalui beberapa strategi.
Pertama, FA4 menghubungkan pekerja dengan memudahkan akses kepada peluang pekerjaan, memahami keperluan industri, dan menyediakan bimbingan kerjaya. Ia memastikan individu dipadankan dengan laluan kerjaya yang sesuai untuk pertumbuhan jangka panjang, bukan sekadar mengisi kerja kosong. Melalui inisiatif seperti pameran pekerjaan, kaunseling kerjaya, bengkel dan perkongsian industri, kami boleh membantu pekerja beralih secara berkesan kepada pekerjaan yang mampan.
Kedua, peningkatan kemahiran dan pembelajaran sepanjang hayat adalah penting. Menyedari bahawa kemahiran yang diperlukan dalam ekonomi hari ini sentiasa berkembang, terutamanya dalam sektor Hijau, Digital dan Penjagaan, kita mesti memperkasakan individu untuk menyesuaikan diri dengan perubahan keperluan pekerjaan dan kekal berdaya saing dalam tenaga kerja. Program latihan dan inisiatif peningkatan kemahiran mesti direka bentuk untuk merapatkan jurang kemahiran dan menyediakan pekerja untuk industri baru.
FA4 juga memberi tumpuan kepada membantu individu menavigasi perubahan dan membina daya tahan. Ini termasuk latihan literasi digital, mempromosikan kecekapan yang berkaitan dengan ekonomi digital, dan menyediakan sokongan untuk pekerja yang beralih kepada industri baru. Izinkan saya menggariskan keutamaan kami yang akan memfokuskan usaha dan sumber kami kepada tiga kumpulan tenaga kerja penting iaitu Pekerja Platform, Penukar Pertengahan Kerjaya (PME) dan Pekerja Warga Emas.
Ketiga-tiga kumpulan ini mewakili segmen penting ekonomi kita, masing-masing dengan keperluan dan cabaran yang unik. Kami mengiktiraf sumbangan berharga pekerja platform, potensi PME kami mengemudi peralihan kerjaya, dan kekayaan pengalaman yang dibawa oleh pekerja warga emas kami. Adalah penting untuk kita menyokong dan memperkasakan setiap kumpulan ini untuk berkembang maju dalam landskap ekonomi kita yang sedang berkembang.
Dalam usaha kami untuk memastikan kejayaan FA4, saya menyeru pemerintah untuk terus mengukuhkan sokongan untuk peningkatan kemahiran, inisiatif penempatan pekerjaan, dan program peralihan kerjaya. Dengan berbuat demikian, kita boleh menjaga tenaga kerja kita pada masa hadapan dan memastikan setiap pekerja mempunyai akses kepada peluang pekerjaan yang bermakna.
Conclusion
Madam Deputy Speaker, Onward Together for a Better Tomorrow is more than just a theme; it is a vision for an inclusive and progressive Singapore. This year’s Budget lays a strong foundation for uplifting lower-wage workers, strengthening retirement adequacy, and improving working conditions. It also reinforces the values of dignity, respect, and fairness for all workers, regardless of their job.
Beyond lower-wage workers, the Budget also addresses the needs of families, businesses, and our economy, ensuring that Singapore continues to thrive in a rapidly changing world. It is a comprehensive plan that supports many facets of our society.
With unwavering dedication, the NTUC stands ready to champion the needs and interests of Singaporean workers. NTUC continues to advocate for our lower-wage workers, to better their lives and livelihoods. NTUC cares and is taking action to enhance their working conditions and welfare. Because every worker matters. Rest assured, NTUC will take action for you, with you.
For these reasons, Madam Deputy Speaker, I fully support this year’s Budget.
Thank you.
