BUSINESS costs and effective training were among the economic concerns on the first day of the Budget debate, alongside social issues such as support for seniors and caregivers.
Of the 28 Members of Parliament (MPs) who spoke on Wednesday (Feb 26), several noted the challenging business environment, with rising rents and manpower costs.
Leader of the Opposition Pritam Singh said that local food and beverage players face cash-rich foreign competitors, while businesses in Johor may siphon off domestic demand.
With inflation pushing Singaporeans across the Causeway, he asked if local businesses such as bookstores and cinemas could be supported with grants, or by making building owners reserve spaces for them.
Rents were flagged by both Singh and People’s Action Party MP Lim Biow Chuan (Mountbatten SMC), with the latter suggesting lower rents for government-owned industrial and commercial properties.
As for manpower costs, Lim suggested a review of foreign worker quotas in cleaning, shipping and construction – “areas where Singaporeans clearly do not want to work in”.
To meet labour needs, Eric Chua, senior parliamentary secretary for culture, community and youth, suggested that employers consider automation, artificial intelligence and redesigning full-time roles into micro jobs.
Yet, while wage rises add to business costs, they are important for workers. Workers’ Party (WP) MP Jamus Lim argued that nominal wages must rise “more decisively”. This may raise costs in the short term, but can be passed on in the long term if aligned with productivity trends, he said.
To this end, he suggested raising civil service wages as a signal to the private sector; having employer Central Provident Fund contributions match those of employees; and a universal minimum wage.
Encouraging upskilling
Wednesday’s main manpower topic, however, was upskilling. MPs noted related moves in last week’s Budget, but had further ideas.
Bishan-Toa Payoh GRC MP Saktiandi Supaat suggested extending the SkillsFuture Jobseeker Support scheme – which helps the unemployed to reskill – to Singaporeans abroad.
The use of SkillsFuture credits could also be made easier, he added, asking if surveys have been done to determine the reasons for their current low usage.
Other MPs said practical considerations, not a lack of interest, might hinder upskilling.
Lower-wage workers may lack the time as they must prioritise earning money, said Ang Mo Kio GRC’s Gan Thiam Poh, who suggested boosting the Workfare Income Supplement.
Jalan Besar GRC MP Wan Rizal proposed embedding training within jobs, so workers would not need extended time off.
Career mentorship and placement guarantees would help ensure that upskilling pays, he added. “Employers could also be encouraged to guarantee wage progression for workers who complete industry-recognised training.”
Along with MPs Ng Ling Ling and Jessica Tan, he suggested job matching or placement for SkillsFuture-trained workers.
Ang Mo Kio GRC MP Darryl David asked if SkillsFuture courses have been audited for correlations with employment outcomes, suggesting that those with poor correlations could be deregistered.
Seniors and social policies
Outcomes should also be tracked for the Senior Employment Credit, to see if it has boosted older workers’ employability, said Ng, a fellow Ang Mo Kio GRC MP.
As senior workers may need extra support, Gan suggested that they could get higher Workfare Income Supplement payouts.
Yio Chu Kang SMC MP Yip Hon Weng suggested expanding existing schemes such as the Productivity Solutions Grant to reward firms that redesign roles for senior workers.
Beyond the workplace, other ideas to support seniors included raising the cap on utilising a family member’s MediSave and providing direct lift access for seniors with mobility issues.
Housing was another recurring topic, with ideas such as raising the executive condominium income ceiling to improve accessibility for young professionals, and giving priority to large families applying for bigger flats.
Other social proposals included higher grants for caregivers, more support for persons with disabilities, as well as more paid leave and public holidays.
WP MP He Ting Ru proposed a dashboard for each year’s Budget that lays out both economic and social elements of public spending, and describes how spending allocations are meant to have positive social outcomes.
