Deputy Prime Minister outlines strategies for inclusive growth amidst global uncertainties.
SINGAPORE: Deputy Prime Minister Lawrence Wong assured Singaporeans that the Government will “redouble” its efforts to develop and support workers while keeping the economy open. Speaking at the Singapore Economic Policy Forum on Tuesday (Oct 18), Mr Wong discussed Singapore’s strategy to maintain economic growth and ensure inclusivity in an increasingly uncertain global environment.
Singapore’s “twin strategy” is to stay open and develop local talent, said Mr Wong, who is also the Finance Minister. “Our first imperative is to stay open and connected to the world—this is not just essential, but it is existential for Singapore, because we are a little red dot with no natural resources and no hinterland,” he stated.
Mr Wong acknowledged that recent years have seen “very ugly” anti-foreigner sentiment emerging, with some arguing that Singapore should “get rid of more foreigners” to reclaim jobs for locals. He described this mindset as “fatally flawed,” emphasizing that jobs won’t automatically go to Singaporeans. “If our policies become overly restrictive, global companies based here will simply find other places to operate—places with larger markets or larger pools of expertise,” he cautioned.
He warned that such perceptions could undermine decades of effort to build Singapore into a global hub. “We will lose all the jobs that the companies brought here, including many good jobs for Singaporeans. Our economy will contract … and go down in a tailspin. Ultimately, it’s Singaporeans who will pay the price,” he added.
To continue thriving, Singapore must attract top companies and talent while developing its people, Mr Wong emphasized. He provided the example of German engineering and manufacturing firm Bosch Rexroth, which has a regional training centre in the Jurong Innovation District aimed at training technicians and engineers in advanced manufacturing. This initiative offers industry knowledge and business networks to support other firms, especially SMEs, creating “positive spillover effects” for the economy and better jobs for Singaporeans.
Better SkillsFuture System
Mr Wong reiterated that investing in the skills and human capital of Singaporeans has been a key priority for the Government. He outlined several support measures for workers, stating that Singapore will continually update its manpower policies to manage the flow of work-pass holders and ensure they meet high standards.
The Government aims to ensure that employers adopt fair employment practices and take a strong stance against workplace discrimination. More investment will be directed towards skills training, with a focus on developing Singaporean specialists and leaders across all sectors. “Our aim is to invest significantly in all Singaporeans and help them build the skills they need to succeed throughout their working lives,” Mr Wong stated.
He acknowledged that many workers will require extensive training to remain relevant or pivot into new sectors, especially as industries undergo significant changes. “The bottom line is that we need to make it possible for workers to invest their time in meaningful and substantial training,” he said, particularly for mature and mid-career workers in their 40s and 50s who are more susceptible to career disruption.
This necessitates a “fundamental upgrading” of Singapore’s training ecosystem, he added. “We need to consider how much more we should provide through the SkillsFuture credit at major life milestones for upgrading … and how we can give employees peace of mind and time off from work to focus solely on upgrading,” he explained.
Mr Wong noted that while Singapore has studied many countries, no nation has a comprehensive nationwide system of adult education and training. Singapore is “distilling” the best practices from around the world and exploring how to apply them in the local context. “Working together, I am confident we can build a better SkillsFuture system that will enable all Singaporeans to develop and grow, and bring out the best in them,” he asserted.
“Hands-On” and “Heart” Work
Mr Wong promised to strengthen “multiple pathways of progression” to help individuals with different strengths and talents thrive. “Our school system is becoming more diverse and flexible,” he stated. “We have been taking steps over the years to blunt the effects of streaming and allow for more fluidity in our system.” Streaming will be phased out completely by 2024, to be replaced by full subject-based banding, which allows secondary school students to pursue subjects at different levels based on their interests and aptitude.
Broader changes are required in the economy, which currently places too much emphasis on cognitive abilities or “head” work. There is insufficient value placed on other types of work, such as technical roles—which are more “hands-on”—and service and community care roles that involve “heart” work. This discrepancy is evident in the widening gap between the starting salaries of graduates from ITE, polytechnic, and university, he noted.
To address this, Singapore has tightened foreign worker quotas and increased salary thresholds over the past decade, while also raising wages for lower-wage workers through the Progressive Wage Model. The Government is investing more to enhance the quality of vocational instruction in Institutes of Higher Learning. “Beyond these moves, we must do more to recognize the value of ‘hands’ or ‘heart’ work across the economy,” he stated.
There is a pressing need to redesign jobs, raise productivity in such sectors, upgrade skills, and establish better career progression for workers, while ensuring businesses compensate their employees fairly. “All of us as Singaporeans must do our part too, and be willing to pay more, bearing the higher cost of goods and services delivered by our fellow workers in these different sectors and occupations,” he said.
“For many people, wages are just one aspect of this debate—respect and dignity matter equally, if not more.” Mr Wong urged Singaporeans to “move away from preconceptions that academic success should be prized above all others.” “Instead, we must respect those who labour with their hands and hearts, conferring upon them the same status as other paths. We must also provide them with opportunities to advance in their respective fields and not pigeonhole them into specific tasks or hold them back unfairly.”
Achieving this will require a fundamental shift in mindset within society—among employers and the general public. “Some of these shifts will not be easy to attain. But if we work together, I am confident that we can expand the possibilities for fulfilment and success for every generation of Singaporeans,” he concluded. “This is the great task of nation-building that falls upon our shoulders. And this is the Singapore that I hope to see in my lifetime.”
