Further Measures to Address Labour Crunch and Reduce Dependence on Foreign Labour

Mr Liang Eng Hwa asked the Minister for Manpower whether there are further measures to encourage higher labour force participation to address the labour crunch and reduce dependence on foreign labour.

Mr Speaker, the overall resident Labour Force Participation Rate (LFPR) in Singapore has increased steadily, from 66.1% in 2011 to 70.5% in 2021. This is comparable to the top five OECD countries. In particular, more women and seniors have joined the workforce, even during the pandemic. From 2019 to 2021, the female resident LFPR increased from 61.1% to 64.2%, while that of residents aged 55 to 64 increased from 69.9% to 71.1%.

While the LFPR in Singapore is already relatively high, we can, potentially, increase it further. One key strategy is to make work more flexible, so that more can participate. We are working with the tripartite partners to promote flexible work arrangements (FWAs) and build HR capabilities to implement FWAs successfully. We will also be establishing a set of Tripartite Guidelines on FWAs by 2024 to require employers to consider all requests for FWAs fairly and properly. This will allow more workers to remain in the workforce or return to the workforce while meeting other needs, such as caregiving.

The Government is also committed to improving access to affordable and quality preschool services, which enables parents with young children to go to work with peace of mind. Overall, the Government’s annual spending on the early childhood sector is expected to more than double over the next few years, from around $1 billion in 2018.

In addition, we have increased the retirement and re-employment ages to 63 and 68, respectively, on 1 July 2022. In line with the recommendations of the Tripartite Workgroup on Older Workers in 2019, our eventual aim is to increase the retirement and re-employment ages to 65 and 70, respectively, by 2030. This will support more senior workers who wish to continue to work to do so.

MOM further encourages employers to hire senior workers through the Senior Employment Credit which provides up to 8% wage offsets for Singaporean workers aged 55 and above and earning below $4,000 a month. The Part-time Re-employment Grant supports employers in providing part-time re-employment opportunities to senior workers who may prefer a lower work intensity.

To further promote local employment, Workforce Singapore offers SGUnited Mid-Career Pathways Programme (SGUP) through which employers can take in mature candidates on attachment programmes. Employers can also tap on career conversion programmes which provide higher support levels for mature hires.

Fundamentally, to cope with the manpower crunch, our businesses need to continue to transform, increase their productivity and improve manpower efficiency. The Government remains committed to supporting businesses and workers to achieve this. Sector agencies are working closely with industries across the 23 Industry Transformation Maps (ITMs).

Workforce Singapore has rolled out Job Redesign and Reskilling Programmes to support employers to upskill their employees to take on enhanced job roles. Other schemes, such as the Enterprise Development Grant and the Productivity Solutions Grant, are also available to help our businesses strengthen their capabilities.