Debated in Parliament on 4 Aug 2026.
Ms Denise Phua Lay Peng asked the Minister for Trade and Industry (Energy and Industry) (a) whether there is a trend of business relocations and restructurings in the first quarter of 2026 leading to higher retrenchments and job losses; and (b) if so, how does the Ministry plan to address this trend.
Businesses continually review and optimise their operations in response to changing market conditions. They may choose to relocate or restructure according to cost considerations, technological disruptions or shifting supply chains. The Government closely monitors these developments to ensure that we maintain our economic competitiveness and secure good jobs for our people.
In particular, Singapore's retrenchment rate remained stable with a retrenchment incidence of 1.6 retrenched per 1,000 employees in the first quarter of 2026. This is below the non-recessionary quarterly average of 1.7 retrenched per 1,000 employees from 2014 to 2019. The number of retrenchments in the first quarter of 2026 attributed to business reorganisation or restructuring or overseas relocations was the same as in the fourth quarter of 2025 (2,950).
In the first quarter of 2026, many businesses continued to expand. Total employment excluding migrant domestic workers increased by 9,400, marking the 18th consecutive quarter of growth, contributed mainly by transportation and storage, and administrative and support services.
With greater and faster economic and technological changes, there will be more frequent business and career transitions. For example, some food manufacturers relocated their production lines recently. They opted to shift their production operations to regional countries for cost optimisation, while retaining their regional headquarters here to benefit from Singapore's innovation ecosystem, professional services and connectivity, for functions, such as product development, regulatory and quality oversight, distribution and supply chain planning.
As recommended by the Economic Strategy Review, the Government will continue to strengthen Singapore's competitiveness by supporting businesses and workers as they pivot, grow, and seize opportunities in growth areas, such as advanced manufacturing, artificial intelligence, high-value trust-based services, as well as emerging technologies, like quantum and space.
We continue to support and journey with our workers. We are strengthening pathways for those affected by automation or restructuring by improving their long-term prospects through reskilling and job matching support. We also help workers build on their existing skills and experience to take on new roles and opportunities, thereby increasing their employability.
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