SINGAPORE: Workers who lost their jobs will soon receive up to S$6,000 in temporary financial support under a new scheme announced by Prime Minister Lawrence Wong during his National Day Rally speech on Aug 18.
The new SkillsFuture Jobseeker Support scheme aims to assist individuals for up to six months, as reported by The Straits Times. It will provide financial help while encouraging jobseekers to engage in training, career coaching, and job-matching services.
In his speech, he emphasised the scheme’s focus on both supporting workers and motivating them to invest in their own career development. “These are essential investments that you need to make in yourself to find better jobs,” he said.
He added, “This is the essence of our renewed social compact. We will have your back, we will stand by you, but you too must take responsibility for your actions, and make an effort to pull yourself up.”
The new scheme will primarily benefit lower- and middle-income workers, including those retrenched or impacted by company failures.
Minister for Manpower Tan See Leng will share further details about the new scheme in due course, PM Wong mentioned.
PM Wong’s speech at ITE College Central touched on the Government’s intention to offer an alternative to traditional unemployment insurance, which some countries use.
However, he noted that the Government has “always been wary” about unemployment insurance because generous benefits might make people prefer staying unemployed rather than returning to work.
PM Wong acknowledged that job loss is a significant setback that can disrupt workers and their families, highlighting the need for support.
He mentioned that the Government was ready to launch the new scheme after discussions with the National Trades Union Congress (NTUC) and the wider labour movement, which have pushed for this kind of support.
NTUC first proposed financial aid for displaced professionals in October 2021 after a year-long consultation with the Singapore National Employers Federation on the support needed by professionals, managers, and executives.
In addition to the new support scheme, PM Wong announced that trainees in part-time courses will now be able to use the SkillsFuture Mid-Career Training Allowance. This allowance, up to S$3,000 per month for up to 24 months over a lifetime, was first introduced in Budget 2024.
Expected to roll out in early 2025, the allowance was originally available only for selected full-time courses to help offset income loss.
PM Wong said on Aug 18 that this allowance will now support part-time courses, allowing workers to spread out their training as they advance in their careers.
He noted that while part-time trainees keep their salaries, they still face challenges like attending classes after work and managing additional costs such as fees and books.
The Ministry of Education is working on the details of this expansion and will provide more information soon. PM Wong outlined the need for the government to improve efforts to help Singaporeans acquire skills to remain competitive.
He acknowledged that although Singapore has a strong workforce, industry changes are speeding up, leading to some job losses and the creation of new, higher-paying roles.
He stressed the importance of embracing lifelong learning to keep pace with these changes and recognised that not everyone easily adapts. “Some are able to adapt and thrive, but others feel the changes are happening too quickly and find it hard to keep pace,” he said.
PM Wong assured that anyone, regardless of age, who wants to enhance their skills will have the opportunity to do so in Singapore. “This is my commitment to each and every one of you,” he said.
He noted, “As our economic transformation continues, we will do more to enhance Singapore businesses and to equip and support every Singaporean, including when they encounter setbacks.” /TISG