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Among key announcements made, the Minister said MOM will review the Employment Act in consultation with tripartite partners, to ensure that "we continue to strike the right balance between protection for workers and preserving flexibility for businesses."
Singapore’s Ministry of Manpower (MOM) has laid out its strategy for the coming year, with a firm focus on workforce transformation, career progression, and retirement adequacy.
In the preamble to his Committee of Supply (COS) 2025 speech in Parliament on 6 March (Thursday), Minister for Manpower Dr Tan See Leng outlined key initiatives aimed at strengthening Singapore’s workforce amidst shifting global and demographic challenges.
Highlights of this preamble to the speech are shared below:
- Workforce and retirement support: Initiatives such as the Career Conversion Programmes and the Part-Time Re-employment Grant have supported career transitions and flexible work for mature workers. Retirement adequacy measures, such as the Majulah Package and expanded savings schemes, continue to bolster financial security.
- Workplace transformation and productivity growth: To future-proof businesses, MOM has rolled out Jobs Transformation Maps, skills training, and new work pass frameworks such as the ONE Pass and COMPASS. Meanwhile, efforts to control reliance on Work Permit holders push industries toward productivity-led growth.
- Fair and inclusive workplaces: MOM has strengthened workplace fairness through new legislation and flexible work policies. Enhanced safety measures for migrant workers and improved workplace conditions have contributed to a record-low fatality rate. With an ageing workforce and global competition intensifying, Singapore is prioritising productivity-driven growth to sustain long-term economic resilience.
Head on below for coverage on the preamble, as well as focused plans shared around building fair and inclusive workplaces.
Reskilling and career growth
Singapore’s post-pandemic recovery has been "fairly" quick, with resident unemployment stabilising at 2.8% — one of the lowest rates among OECD nations. Over the past five years, MOM has implemented numerous initiatives to support workers across different career stages.
- For professionals in their 20s to 40s, the Career Conversion Programmes have facilitated career transitions for 37,000 workers.
- Mature workers, on the other hand, have benefitted from the Part-Time Re-employment Grant, which has enabled 50,000 workers to remain employed through flexible arrangements.
Retirement adequacy and support for vulnerable groups
The recent year also saw more efforts towards retirement security and wage growth, particularly for lower-income workers and vulnerable groups. Minister Tan noted that over the past five years, median real monthly income has grown by 3.6%, while lower-wage workers saw a higher increase of 5.9%.
To bolster financial security, the S$9bn Majulah Package was introduced in 2024, alongside enhancements to the Silver Support Scheme, benefiting 290,000 seniors. Additionally, 740,000 Singaporeans will be eligible for the expanded Matched Retirement Savings Scheme.
Efforts to uplift lower-wage workers have also gained traction, with Progressive Wage Models (PWM), the Local Qualifying Salary (LQS), and the Workfare Income Supplement covering up to 90% of full-time lower-wage employees. Meanwhile, employment rates for persons with disabilities have risen from 28% to 34% over the past five years.
Workplace transformation and business productivity
In a bid to drive businesses to innovate, MOM has launched 17 Jobs Transformation Maps since 2019, supporting 10,000 companies in redesigning jobs and upskilling employees.
To attract top global talent, MOM introduced the Overseas Networks and Expertise (ONE) Pass and the Complementarity Assessment Framework (COMPASS) for Employment Pass holders. Additionally, efforts to control reliance on Work Permit holders aim to drive industry transformation and productivity-led growth.
Fairer and more inclusive workplaces
Finally, the past few years have also seen an increased focus on workplace fairness and safety. The Workplace Fairness Bill was passed earlier this year to combat discrimination, while the Tripartite Guidelines on Flexible Work Arrangement Requests aim to unlock workforce potential—particularly among 240,000 women and 130,000 seniors currently outside the labour force.
The above aside, primary care plans for migrant workers have been enhanced, dormitory standards have been raised, and expanded services at recreation centres.
Minister Tan also highlighted a record-low workplace fatality rate in 2023, at 0.99 per 100,000 workers in the year.
Navigating future challenges
Despite these gains, Minister Tan noted that "the work goes on."
"With significant geopolitical and economic uncertainties ahead, we have projected a more cautious pace of GDP growth in 2025, at 1 to 3%. In the longer term, two forces will make growth harder to sustain."
The first, is Singapore's demographic challenge. "With our low fertility, our resident workforce is expected to stop growing by the next decade.
"Our population is also ageing: One in four Singaporeans are projected to be aged 65 and above by 2030," the Minister pointed out.
The second, is intensifying global competition. "Southeast Asia will benefit from a demographic dividend, and we need to keep up as they grow. "Cities like New York, London and Dubai are attracting top companies and talent in fields like biotechnology and AI."
Amidst these challenges, how then, can Singapore continually grow the economic pie and continue to create meaningful opportunities for Singaporeans?
First, Minister Tan shared, the nation must remain open to the world to stay competitive and support society's needs. To this pointed, he noted that in 2014, there were six working-age residents supporting each elderly resident aged 65 and above. In 2024, this number fell to 3.5.
"Foreign workers blunt this decline. Including them, the old age support ratio in 2024 rises to 5.2," he noted.
That said, he acknowledged that there are limits to growing through numbers, stating that the "only sustainable way forward is productivity-driven growth."
He continued: "We have made good progress on our productivity journey. Supported by the Industry Transformation Maps, labour productivity grew by around 2% per annum over the last decade. However, Singapore’s productivity remains 40% to 70% of frontier economies.
"This is an exciting opportunity to reshape our economy into one driven by productivity and innovation. The global order has also changed dramatically. Singapore can stand out as a beacon of stability and openness, drawing in global talent and companies."
Looking ahead, he proceeded to talk about three priorities the Manpower Minister has for Singapore this year:
- #1 Enabling businesses to transform,
- #2 Empowering workers to build career health, and
- #3 Fostering inclusive and safe workplaces.
Key announcements under point three: fostering inclusive and safe workplaces
Uplifting lower-wage workers
In efforts to continue uplifting lower-wage workers, MOM will enhance the Workfare Skills Support scheme to help these workers upskill for better opportunities. Additionally, the Progressive Wage Credit Scheme will be strengthened to encourage employers to provide sustainable wage increases.
Reskilling and flexi-work arrangements
Next, Minister Tan shared: "We want to foster inclusive workplaces where everyone can contribute, even with different work arrangements." To this effect, he said the Ministry will enhance the Career Conversion Programmes for the reskilling of mid-career new hires and employees on flexi-load jobs.
Supporting persons with disabilities and ex-offenders
On this point, Minister Tan highlighted support provided to firms in making "reasonable accommodations" for persons with disabilities, including the Employment Support for Employers to hire Persons with Disabilities scheme, and ongoing work on a Tripartite Advisory. In that vein, he noted Prime Minister and Minister for Finance Lawrence's Wong's announcement at Budget 2025 that the Matched Retirement Savings Scheme will be expanded to include Singaporeans with disabilities regardless of age, so long as they meet certain criteria.
The ministry will also continue to support the employment of ex-offenders, and more details on both will be shared in Minister of State for Manpower Gan Siow Huang's updates.
Reviewing the Employment Act
As economic transformation accelerates, Minister Tan said MOM will review the Employment Act in consultation with tripartite partners, to ensure that "we continue to strike the right balance between protection for workers and preserving flexibility for businesses." He acknowledged suggestions from Members of Parliament Patrick Tay and Louis Ng that will be considered in the review, with more details to be shared later this year.
Follow HRO's coverage below as we delve into the initiatives highlighted under points one and two, including an upcoming increase to the minimum qualifying salary for S Pass holders, details on the Enterprise Workforce Transformation Package, and the launch of a tripartite-led effort towards enabling multi-stage careers for mature workers.
- MOM Committee of Supply 2025: S Pass minimum qualifying salary to be increased from Sep 2025, and more work pass updates
- MOM Committee of Supply 2025: Measures announced to strengthen the pipeline of Singaporean leaders
Lead image / MDDI YouTube
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