D. Build A Resilient And Skilled Workforce

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D. Build A Resilient And Skilled Workforce

  1. 82. Singaporeans, and especially our workers, are at the centre of everything we do. Ultimately, what matters is not just the policies we announce, but the outcomes they deliver in people’s lives. That is why we track results carefully and assess whether our efforts are making a real difference. Earlier this week, MOF released an Occasional Paper on income growth, inequality, and social mobility trends. It shows that over the past decade, we have made good progress — with broad-based wage increases, and smaller income gaps.
  2. 83. These improvements did not happen by chance. Left entirely to market forces, they would not have occurred on their own. Indeed, in many advanced economies, as growth slows, inequality becomes more entrenched.
  3. 84. Singapore faces these same underlying pressures. That is why the Government has and will continue to lean against these trends, and strive to ensure that the fruits of growth are shared widely and fairly. Every Singaporean, regardless of where they start in life, should have a fair chance to pursue their aspirations and realise their full potential.

Uplifting Lower-Wage Workers

  1. 85. So in this Budget, we will continue to strengthen support for lower-wage workers.
  2. 86. The Local Qualifying Salary (or LQS) sets the minimum salary that local employees must be paid in firms that hire foreign workers. We will raise the LQS for full-time local employees from $1,600 to $1,800.
  3. 87. To help businesses defray some of the cost, we will enhance the Progressive Wage Credit Scheme (or PWCS). We will raise the PWCS co-funding support for this year, from 20% to 30%.
  4. 88. We will also extend the PWCS for two more years, to 2028. From next year, we will raise the minimum wage increase to qualify for PWCS support from $100 to $200. This will better encourage and reward the firms that invest in their workers.
  5. 89. These measures build on the Progressive Wage Model (or PWM), which we have developed together with NTUC and our tripartite partners. The PWM goes beyond a simple flat minimum wage and instead links pay increases to skills, productivity, and career progression — and it is delivering results.
  6. 90. We will also continue to strengthen training support for the PWM. Last year, I announced additional support under the Workfare Skills Support for workers who take up long-form training courses. We will go further to enhance the basic tier of the scheme, and increase the hourly allowance for workers who upgrade their skills.

Taking SkillsFuture Forward

  1. 91. We will also do more to support lifelong learning for all Singaporeans through SkillsFuture.
  2. 92. When we first started SkillsFuture more than a decade ago, the training landscape looked very different. At that time, our IHLs were still largely focussed on pre-employment training. But we knew this was no longer sufficient. That’s why we set up SkillsFuture Singapore in 2016 under the Ministry of Education — to embed lifelong learning within our education system.
  3. 93. Today, we have achieved this objective. Working adults at all stages of their careers can access a wide range of high-quality training options across our IHLs.
    1. a. All our autonomous universities, polytechnics, and ITE have internalised lifelong learning as part of their mission.
    2. b. For example, NUS and NTU — our two largest universities — have made lifelong learning an integral part of how they organise their teaching and learning. They offer flexible pathways for alumni and adult learners to take modular courses, earn stackable credits, and progressively build these into recognised qualifications.
    3. c. Singaporeans, too, are increasingly embracing lifelong learning. Last year, more than 600,000 individuals took up training with SkillsFuture support, offered by IHLs and private training providers.
  4. 94. While SkillsFuture Singapore under MOE focussed on skills training, we also had Workforce Singapore under MOM to engage employers and help jobseekers find jobs. Over the years, we have worked to strengthen coordination between these two agencies.
  5. 95. But in an era of faster technological change and more frequent job transitions, stronger alignment is needed, and our systems must work more seamlessly together. Hence the ESR committee had recommended that the Government review how we organise jobs and skills support for Singaporeans.
  6. 96. We have carefully considered this recommendation, and will take a decisive step forward. We will merge SkillsFuture Singapore and Workforce Singapore into a new statutory board jointly overseen by MOE and MOM.
  7. 97. This new agency will be a one-stop shop for skills training, career guidance, and job matching services.
    1. a. For workers and jobseekers, that means support will be more seamless — from career planning, to skills acquisitions, and job matching and transitions.
    2. b. For employers, the support will be more integrated, covering workforce planning, job redesign, hiring, and workforce development.
  8. 98. The Minister for Education and the Minister for Manpower will share more at the Committee of Supply.
  9. 99. This goes beyond making an organisational change. It is about continually strengthening our system of lifelong learning and career support, so Singaporeans can continue to adapt, grow and realise their full potential. In a world where change is constant, we must remain a society that never stops learning — and never stops striving to do better.

Strengthening Assurance for Mid-Career Workers and Seniors

  1. 100. We are also strengthening support for specific segments of our workforce.
    1. a. In 2024, we launched the SkillsFuture Level-Up Programme to help mid-career workers undergo a skills reboot.
    2. b. The take-up has been encouraging. Over 60,000 Singaporeans aged 40 and above have already benefitted from substantial training courses.
  2. 101. Mr Jeffrey Loh is one of the many adult learners who has benefitted from the programme.
    1. a. After 18 years as an air steward, he was keen to reskill and pursue new opportunities aligned with his interests.
    2. b. So he enrolled in a Digital Product Management course at the Singapore Institute of Technology. Most of his course fees were offset by SkillsFuture subsidies and credits.
    3. c. He also received the Mid-Career Training Allowance during the three-month course, which helped support his daily expenses while he trained.
    4. d. Now, Jeffrey is doing well in a new role as a Duty Terminal Manager with Changi Airport Group.
  3. 102. We will continue to enhance the Level-Up programme.
    1. a. From next month, the Mid-Career Training Allowance will be extended to those who take up not just full-time, but also part-time training.
    2. b. We will also expand coverage to include more industry-relevant courses.
  4. 103. Another important group is our senior workers.
  5. 104. We will support our seniors so they can continue to contribute meaningfully. This includes helping them plan ahead for their later-stage careers and supporting them in refreshing their skills. We will also equip employers to design age-friendly jobs and multi-generational workplaces.
  6. 105. MOM has convened a Tripartite Workgroup on Senior Employment to study these issues comprehensively. Their recommendations will be released later this year. In the meantime, we will extend the Senior Employment Credit to end-2027, to support employers who continue to employ senior workers.

Updating Foreign Worker Policies

  1. 106. As we create better jobs and upskill Singaporeans, we must also remain open to global skills and talent. Foreign professionals and workers strengthen our teams, transfer knowledge, and enable companies to grow. This in turn creates more and better opportunities for Singaporeans.
  2. 107. At the same time, we will continue to ensure that our foreign workforce complements a strong Singaporean core. In line with this approach, we will refine and update our foreign worker policies to reflect evolving conditions.
  3. 108. We will raise the Employment Pass (or EP) minimum qualifying salary for new applicants from $5,600 to $6,000 from January 2027. This maintains the quality of the EP holders, as local wages rise. For the financial services sector, which has higher salary norms, we will raise the minimum qualifying salary from $6,200 to $6,600. The qualifying salaries for older EP applicants will be raised in tandem. For renewal applications, the changes will apply a year later in 2028, to give businesses more time to adjust.
  4. 109. Likewise, we will raise the qualifying salaries for S Pass holders. From January 2027, the minimum qualifying salary for new S Pass applicants will be raised from $3,300 to $3,600. For the financial services sector, this will be raised from $3,800 to $4,000. Qualifying salaries for older S Pass applicants will be raised in tandem, with renewal applications affected one year later, from 2028.
  5. 110. We will also adjust Work Permit levies.
    1. a. For the Marine and Process sectors, levies for basic-skilled workers will be raised by $100 and $150, respectively.
    2. b. For the Manufacturing and Services sectors, we will simplify the current tiered levy structure. The details are in the Annex to the Budget.
    3. c. To give businesses time to adjust, these changes will take effect from 2028.
  6. 111. The Minister for Manpower will share more at the Committee of Supply.
  7. 112. The wide range of workforce measures I’ve outlined reflects Singapore’s overall approach: to stay open to skills and expertise that strengthen our economy, while ensuring that Singaporeans remain firmly at the centre of our workforce and our policies. We will help Singaporeans adapt to change with confidence, move across career transitions with assurance, and build meaningful and fulfilling careers.
C. Harness AI As A Strategic Advantage E. Give Families More Support And Greater Assurance