NDR 2024: Retrenched workers to receive up to $6,000 under new SkillsFuture support scheme

Retrenched workers will receive temporary financial support while they undergo training or look for another job, Prime Minister Lawrence Wong announced in his maiden National Day Rally speech on Sunday (Aug 18).

They will get up to $6,000 over a period of up to six months under the new SkillsFuture Jobseeker Support scheme, which focuses on helping lower- and middle-income workers.

"We will help you get through the setback and bounce back stronger," said PM Wong. "But you must do your part too."

The initiative comes after discussion with the National Trades Union Congress and the Labour Movement "who have been championing this initiative for some time," he said.

Manpower Minister Tan See Leng will provide more details about the new scheme in due course.

In his Budget speech in February, PM Wong, who is also the Finance Minister, said that the government was working on the parameters of a temporary financial support scheme for retrenched workers.

This comes amid a spike in the number of layoffs in Singapore last year. At 14,320, the number of retrenchments in 2023 more than doubled from the previous year.

The past two years have also seen a spate of job cuts in the tech sector. Most recently, in January, e-commerce company Lazada laid off some of its staff in Singapore.

Better than unemployment insurance in some countries: PM Wong

In his National Day Rally speech on Sunday, PM Wong said that the government has been studying a scheme to help retrenched workers for some time.

"Some countries have unemployment insurance, but the experience has not always been positive," he said. "Because after getting a generous benefit, the person might find it more attractive to stay unemployed to go back to work.

"That's why the government has always been wary about such schemes."

Acknowledging that losing a job is a major setback which can seriously destabilise workers and their families, PM Wong said that the government has to do something.

This prompted the government to search for an alternative that "would be better" than unemployment insurance, he added.

"How can we help in a way that minimises the negative outcomes we have seen elsewhere?"

Even with the temporary financial support, PM Wong said that retrenched workers should make "essential investments" in themselves to find better jobs.

These include going for training, career coaching and job matching services.

"This is the essence of our renewed social compact," said PM Wong.

"We will have your back and stand by you; but you too must take responsibility for your actions, and make an effort to pull yourself up."

chingshijie@asiaone.com