Parliament: MPs call for stronger support for workers, debate retrenchment and skills training

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SINGAPORE - Retrenchment benefits, skills training and helping young workers navigate the job market were among the issues raised by over 20 MPs in Parliament on Aug 5.

They were responding to a motion filed by WP MPs Kenneth Tiong (Aljunied GRC) and Jamus Lim (Sengkang GRC), which set out the opposition party’s vision for Singapore’s economy and its response to the Government’s economic plans.

An amended motion was put forth by PAP MP Edward Chia (Holland-Bukit Timah GRC), which the WP MPs dissented to. It was subsequently passed by the House.

During the 9-hour debate, MPs spoke about the need to help young workers gain a foothold in an increasingly uncertain labour market.

Such workers may be among the hardest hit if artificial intelligence compresses entry-level roles and creates a “broken rung” at the start of their careers, said National Trades Union Congress (NTUC) assistant secretary-general Patrick Tay.

“If our young graduates cannot get that first meaningful foothold, their long-term progression may be affected. We cannot allow the first step of a career to become the weakest link in our labour market,” added Tay, who is also Pioneer MP.

He noted that NTUC, through the Graduate Industry Traineeships (GRIT), works with the Government and employers in various sectors to give young graduates structured, industry-relevant experience.

Beyond the traineeship period, NTUC and Workforce Singapore (WSG), help participants transition into full-time roles and build confidence in using AI tools, he added.

But Non-Constituency MP Andre Low urged the Government to also develop paid apprenticeships. Beyond GRIT, Singapore needs a more structured pathway for roles requiring sustained training and supervised practice over a longer period, he said.

He also called for more pathways to give young people a “fair start”.

For example, Singapore should open more ordinary entry-level jobs to capable beginners, and expand the new Skills and Workforce Development Agency’s ability to verify and assess competencies, he said.

Retrenchment protections also featured prominently in the debate, with WP chief Pritam Singh (Aljunied GRC) saying that minimum retrenchment benefits should be made mandatory.

Arguments against doing so should be “carefully examined and weighed afresh”, given the increasingly unpredictable economic landscape that workers are facing, he added.

Singh said worker anxiety has climbed despite Singapore’s positive employment situation, citing how retrenchments in Singapore hit 4,500 in the second quarter of 2026.

He said the law in Singapore has “fallen behind”, and that other countries have adopted such laws.

Singh also noted that most employees already receive retrenchment benefits up to the tripartite guideline of two weeks’ salary for every year of service. This can serve as the starting point for legislated retrenchment benefits, he said.

“This would largely formalise practice while ensuring that workers who fall through the gap that cannot be bridged by non-binding tripartite guidelines are protected,” he added.

Responsible employers would no longer be disadvantaged relative to those who provide the bare minimum or nothing at all, he said.

WP MP Fadli Fawzi (Aljunied GRC) added that safety nets such as mandatory retrenchment benefits will help workers pursue upskilling opportunities without anxiety and worry.

He also spoke in favour of a universal redundancy insurance scheme which would provide monthly payouts upon retrenchment. This would give workers’ more peace of mind than the Government’s SkillsFuture Jobseeker Support Scheme, which requires an application process, he said.

Tay, who addressed the topic of mandating retrenchment benefits, said there are strong existing mechanisms to help laid-off workers receive retrenchment benefits, and that NTUC has been working to negotiate collective agreements and unionise companies to provide protections for employees.

But he added that he has been lobbying for many years to further strengthen the retrenchment protection regime. The tripartite partners are also reviewing the Employment Act, which includes considering stronger measures against firms that do not comply with retrenchment guidelines, he added.

Wan Rizal Wan Zakariah (Jalan Besar GRC) also noted that although retrenchments have increased in the first quarter of this year, they remain within non-recessionary norms.

The majority of retrenchments came from businesses reorganising themselves and restructuring, and the taskforce for responsible retrenchment and employment facilitation has provided career coaching and help for retrenched workers, said Wan Rizal, who is also director of the stakeholder management, career services and partnership group at NTUC’s e2i.

Several MPs also asked for more support for skills training.

NMP Azhar Othman proposed that SkillsFuture training credits be allowed for subscribing to AI-powered productive tools and partnership in business networks that provide continuous learning.

WP’s Fadli asked the Government to expand the CPF education loan scheme to help workers looking to sharpen their skills.

And WP MP Gerald Giam (Aljunied GRC) said skilled tradespersons such as electricians, plumbers, lift engineers and infrastructure technicians have not been accorded the prestige and pay that match their vital economic contribution.

He said that Singapore has relied on foreign labour arbitrage and allowed unlicensed workers to perform tasks meant for certified practitioners, inevitably suppressing local trade earnings over time.

With a median monthly income of just $2,700 in 2023, skilled trades are seldom seen as a career of first-choice for young Singaporeans, he said.

He noted that over the past decade, the local craft workforce has shrunk. Of the 186,000 craftsmen and trades workers in Singapore, only 28 per cent are locals, and their ranks are ageing, with a median age of 56, Giam added.

He suggested a new structure for the skilled trades sectors that will ensure better pay and career progression for such workers and recognise the “true market value” of their craft.

This could be done by setting up an autonomous entity – a Singapore Guild of Skilled Tradespersons that can define baseline competencies and advocate for fair commercial rates, he said.

Said Giam: “When we give skilled tradespersons the autonomy to govern their own professions, command transparent commercial returns for their mastery, and build independence, we can fundamentally change how society views this form of blue-collar work.”