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Mr. Speaker, thank you for allowing me to join this debate. My fellow Labour MPs have spoken on various segments of workers. I will focus on advancing the interests of older workers.
Support for Older Workers
Workers aged 55 and above make up more than a quarter of our resident workforce today. The Government and tripartite partners have done a lot for older workers over the years. From lengthening employment to strengthening employability and augmenting retirement needs, there had been significant progress over the years. This was even so during the COVID years, in sharp contrast to what happened in many other countries where many of their older workers lost their jobs and had problems coming back.
For the immediate term, older workers face the cost-of-living pressures like everyone else and I thank the Government for the Assurance Package and other cost-defraying measures in this and past Budgets to help Singaporeans cope with this pressure. The help was timely and very well-received.
Beyond the immediate pressures, older workers genuinely worry about other developments. And for today, I will highlight 3:
First, there is the worry on the efficacy of ensuring longer work spans by just legislating higher retirement and re-employment ages. Why? Because such legislation important as they are, may likely come under pressure if it’s not effectively combined with skills-building;
Two, the risk of skills obsolescence is increasing with accelerating changes in technology and business models. For example, some industries are facing structural shifts such as those brought about by the Green Transition and others. The pervasive impact of AI on how work will be carried out is also not a trivial matter for workers. This will increase the risk of pre-mature displacement despite legislated retirement and re-employment ages.
Third, there continues to be ground feedback about the relative lack of equitable opportunity and access to training and skills-upgrading for older workers compared to their younger counterparts. In NTUC’s Every Worker Matters focus groups, 6 in 10 older workers who participated felt so. They felt a relative lack of opportunity for training and skills-building compared to their younger counterparts.
These must be properly addressed, so that that the aim, our joint aim, of enabling older workers to continue working and saving for retirement is not undermined by the evolving demographics in our country and by big environmental changes worldwide.
Upping Retirement Age, Reemployment Age
I thank the Finance Minister for announcing the next calibrated increase in CPF contribution rates for older workers aged 55 to 65 in this Budget. This will certainly help grow their CPF funds faster.
We, the NTUC, are also grateful for the enhancements to the Silver Support Scheme, Matched Retirement Savings Scheme, and specific initiatives under the Majulah Package such as the Earn and Save Bonus, Retirement Saving Bonus and MediSave Bonus. All these efforts will increase the CPF savings of older workers and make for greater security in retirement.
However, it remains true that the most material way to help older workers financially in retirement is by adding to the effective working years. And here I stress the word effective, as opposed to legislated.
During NTUC’s Every Worker Matters Conversations last year, we asked older workers who participated what they hoped to do when they reach the current retirement age of 63. Out of 10, 8.5 of them said they wanted to continue working. 6 out of the 8.5 respondents hoped to continue in their current jobs or industry where they have accumulated experience and value. Many also asked when the Government will announce the next increase in statutory retirement and re-employment ages, since there is still a gap between the current ages and the goal of reaching the retirement age at 65 and re-employment age at 70 by the year 2030. And to remind fellow members here, this 2030 goal of statutory retirement age, 65, and statutory re-employment age ceiling, 70, was the work of the Tripartite Workgroup on Older Workers which report came out in 2019, and the roadmap was endorsed. Now, it’s 2024.
I therefore call on the Government to announce the next step increase in the retirement and re-employment ages soonest and to give reasonable notice to both business and workers so both sides can get ready in good time. We should act promptly because we are already practically halfway in terms of timeframe so that we can implement the next increase by, say in two years’ time, 2026. I believe this is the pace that we need in order to reach those agreed goals by the year 2030 given the uncertainties that are inherent in the economic environment worldwide.
Next, I will speak on the subject of equity in opportunity and access to training so as to minimise risk of pre-mature displacement of our older workers.
Equity in Opportunity & Access to Training so as to minimise risk of pre-mature displacement
So when older workers express their hope to be able to continue working, they also share their anxieties about this forced obsolescence, this being rendered out-of-date and then really rust away.
NTUC found that more than 9 in 10 older workers, besides wanting to continue working, wanted to be continually trained. These workers knew that training was critical to their remaining relevant in their jobs. They particularly worry about access to training opportunities.
I thank the Finance Minister for announcing the SkillsFuture Level-Up Programme for all Singaporeans aged 40 and above, aimed particularly at programmes and courses that would enhance employability. This shows that the Government is alive to the important nexus between older workers’ training and their employment and employability. Relevance is as salient as legislation in terms of bringing about an increase in effective working years.
The question is how to make that happen. Of course, funding is important. That is why Budget is important. Yet, together with funding and for real outcomes, effective implementation is also key. Therefore, we must scale up mechanisms that can ensure actual implementation according to the intent in the workplace. This is why I fully support fellow Labour MP Desmond Tan’s call for employers to quickly work with the NTUC and our unions to form Company Training Committees (CTCs). Through active CTCs, businesses can transform faster and workers of all ages can be helped to be trained in relevant skills and to be able to grow with their companies. Here I again thank the Government for the $100 million funding to NTUC to scale up CTCs in order to achieve real outcomes for all stakeholders. I also want to thank DPM Heng Swee Kiat for recognising the value of CTCs in his speech earlier today. From NTUC, we pledge to work ever more closely with the Government in order to roll this out not only in numbers, but in effectiveness, in order that we might be able to help as many workers as possible, as soon as possible.
I ask all employers to form CTCs soonest, and to work with NTUC and our unions to ensure that workers of all ages are given fair opportunity to be well-trained. These workers will then help energise your companies’ growth.
Overcoming Age Bias
The third area that needs tackling is that of age bias. Older workers worry about age bias in several areas, namely access to training, availability of flexible work arrangements so that they can continue working while seeing to care needs and fair consideration as jobseekers after being displaced. Empirical research suggests that these fears about age bias have basis, and it requires tackling.
For this reason, I look forward to the workplace fairness legislation and the Tripartite Guidelines on Flexible Work Arrangements Requests that the Government will be introducing. The workplace fairness legislation will build on existing tripartite mechanisms such as TAFEP, TADM and relevant joint guidelines to give even greater confidence of fair play to workers. This will be a strong national signal against various forms of workplace discrimination, including age bias. NTUC and our unions will work closely with employers to advance the interests of workers and companies.
Building up caregiving services to strengthen employability of older workers
Beyond workplaces, there is also a growing need to expand and scale up viable, accessible care services to cater to a rapidly aging population. In the context of my focus today, I argue that this is important not only for the health and wellbeing of our seniors but also for the employability of their middle-aged working family caregivers. More of these family caregivers may then not need to quit work in order to undertake their care duties. Or at least to delay such an eventuality. Every year of continued working will significantly help with the retirement adequacy of the caregiver.
I urge the Government to work closely and intensively with trusted partners to further develop this ecosystem, so that Singapore and Singaporeans can truly enjoy the full benefits of better health, better care, better earnings and stronger retirement adequacy.
NTUC Cares
Mr. Speaker, there is a saying that no one cares how much you know, till they know how much you care.
NTUC stands with our older workers as they confront job insecurity and the risk of skills obsolescence. We care, not just by asking more or just by asking someone else to solve the problem or waiting for an invitation. We put our ideas forward and we push for social change and make a real difference to their outcomes. Why? Because our workers are waiting for us to do this, and we will get it going and get it done.
NTUC’s approach is forward-looking, inclusive, action-oriented and practical just like the PAP Government’s. I believe that this is the right and the best way to secure sustainable good outcomes for workers and for Singaporeans.
Working closely with the Government and tripartite partners, we will together build a better, more caring Singapore for workers of all ages.
Mr. Speaker, I support the Budget.
Thank you.
