Concerns over sustainability of financial handouts, with a focus on long-term worker support and skills development
On the first day of the Budget 2024 debate, Members of Parliament (MPs) expressed concerns about the sustainability of financial handouts while proposing more sustainable long-term solutions to support workers. While some MPs welcomed the support measures, such as the S$1.9 billion enhancements to the Assurance Package, there were cautionary calls about the potential over-reliance on such temporary relief.
West Coast MP Foo Mee Har warned that excessive reliance on handouts, such as GST vouchers, could create long-term expectations and inadvertently contribute to inflation. Instead, MPs urged the government to focus on structural reforms and targeted support for the most vulnerable. Workers’ Party MP Louis Chua proposed a permanent scheme approach, such as a minimum living wage, rather than relying on short-term assistance.
In addition to fiscal support, MPs emphasized the importance of retraining and skills development to ensure Singapore’s competitiveness. Suggestions for the new SkillsFuture Level-Up programme, which provides a S$4,000 top-up for workers aged 40 and above, were made, with calls for an interest-free SkillsFuture loan to cover courses in high-growth industries. Some MPs also advocated for expanding course offerings and increasing subsidies for apprenticeships, while others questioned the effectiveness of government-funded diplomas and degrees in securing better job outcomes.
Retirement adequacy for older workers was another focal point, with MPs suggesting a review of the closure of the CPF Special Account for those aged 55 and above. Regarding retrenchment support, MPs called for more details on the government’s upcoming unemployment support scheme, including the timeline and specifics of its implementation.
For businesses, particularly small and medium-sized enterprises, MPs proposed maintaining or easing foreign worker quotas to address manpower shortages. Suggestions also included reviewing the dependency ratio ceiling to ensure that businesses can manage labor costs effectively while addressing areas where Singaporeans may be less inclined to work.
Overall, the debate emphasized the need for balanced and sustainable policies that address both immediate needs and long-term competitiveness for workers and businesses alike.
