In 2017, productivity growth surpassed workforce growth for the second consecutive year. Compared to the year before, the real median income of our residents grew at a faster rate. These improvements took place against the backdrop of continued low resident unemployment and an expansion of local employment, particularly for PMETs. There were also fewer retrenchments than the year before.
The key challenge for tripartite partners is to sustain the momentum. Productivity gains remain uneven and not pervasive enough across all sectors. This will impact the sustainability of wage growth in the medium to long term. At the same time, businesses and jobs continue to be disrupted and workers are being challenged to keep pace with changing skills requirements.
In such an environment, the tripartite partners’ shared goal must be twofold: to help every business transform and every worker adapt.
We must maintain a business climate that promotes investments in new activities and job creation. To progress as an economy, we must master new technologies, transform quickly and enhance our competitiveness.
We must also enable Singaporeans to acquire new skills relevant to industries and businesses of the future. To progress as a society, we must ensure that everyone - regardless of age, gender and income level – can access better jobs and opportunities to advance.
Economic agencies are now fully activated to implement the industry transformation maps. MOM will complement their efforts on two fronts.
First, we will enhance support to businesses through the Lean Enterprise Development Scheme (LEDS) and the Capability Transfer Programme (CTP). Since its launch in October 2015, LEDS has helped more than 6,700 businesses be more manpower-lean in their operations. We will accelerate the adoption of best practices through ready-to-go solutions and cluster-level initiatives. The CTP helps businesses build up new capabilities in their local workforce, by accessing foreign specialist skills that are in short supply in Singapore. Though relatively new, the programme has attracted strong interest from businesses.
Second, we will step up efforts to secure better employment outcomes for Singaporeans through the Adapt and Grow initiative. Last year, we helped to place more than 25,000 job seekers in new jobs and careers. This was achieved through career matching services and programmes addressing skills and wage mismatches. A key focus this year is to put in place more programmes to re-train and re-deploy in-service staff who are at risk of displacement. We will also strengthen our programmes that help Singaporeans take up jobs in sectors with growing manpower needs.
In all of our efforts, we have been able to count on the steadfast support of tripartite partners. For example, since the Progressive Wage Model was initiated by the Labour Movement and implemented in the cleaning, security and landscaping sectors, over 70,000 resident workers have benefited from better wages and career progression.
SNEF has been instrumental in the launch of the Tripartite Standards framework which has helped companies adopt more progressive employment practices benefitting about 400,000 workers. Another major breakthrough is the tripartite agreement reached to update the Employment Act which will extend basic employment protection to all workers regardless of salary level.
In the coming years, many countries will find it difficult to sustain good employment outcomes for their people. Few enjoy the strong spirit of tripartism in Singapore that has overcome multiple challenges. On this May Day, we reaffirm the shared commitment of the tripartite partners to be both pro-business and pro-worker in all that we do. We recognise our collective responsibility to help every business transform and every worker adapt, so that the Singapore economy remains vibrant and innovative, and our society remains caring and cohesive. Happy May Day!
