The Urgency of Reskilling and Upskilling in a Rapidly Changing Economy
In a rapidly evolving economy, upskilling and reskilling have become more crucial than ever. As technological advancements like artificial intelligence and sustainability initiatives continue to reshape industries, it is essential for workers to stay ahead. Singapore’s recent Budget 2024 discussions highlighted the urgency of these initiatives, especially for mid-career professionals, a demographic significantly impacted by the evolving job market.
Key figures in the ST-BT Budget Roundtable 2024, including Second Minister for Finance Indranee Rajah and economists like Alvin Liew, emphasized that digitalization and AI’s influence on industries require workers to diversify their skills. The need for reskilling is particularly pressing as 52% of surveyed workers foresee their jobs transforming due to AI. This transformation calls for substantial investments in workforce training and support, especially for those over 40, a group significantly represented in long-term unemployment statistics.
The Singapore government has responded with measures such as the enhanced SkillsFuture credits for mid-career workers. These initiatives aim to bridge the gap for those who have already entered the workforce but need additional training to stay competitive. Minister Rajah pointed out that workers over 40 might have accumulated significant work experience but are now facing the challenge of catching up with new skill demands.
Despite these efforts, several challenges remain, such as low uptake of SkillsFuture credits, particularly among workers over 25. Financial constraints, lack of time, and uncertainty about the tangible benefits of training are some of the barriers to engagement. To address this, businesses are being encouraged to support training programs more actively, with some even offering incentives for workers who undergo training. SMEs, however, are concerned about potential labor shortages if too many employees take time off for full-time training.
The discussion also touched on ageism in the workforce. While some SMEs are still hesitant to hire older workers, the panel agreed that the focus should be on matching skills to job requirements, rather than age. Enhancing training programs to include real-world industry experience and certifications could help workers better transition into new roles and alleviate employer concerns.
Looking forward, the panelists expressed optimism about future government initiatives that could further support the integration of new skills into businesses and provide more comprehensive assistance to employers, especially SMEs. The anticipated changes are expected to foster a more competitive and adaptive workforce, positioning Singapore for continued economic growth in the face of technological disruption.
