SINGAPORE - The Government has opted to give time to companies to re-employ workers to age 67 because forcing them to do so immediately may end up backfiring, said Manpower Minister Tan Chuan-Jin.
That is why changes in the law to raise the re-employment age to 67 will kick in only two to three years from now. Currently, firms are required by the law to offer re-employment to eligible workers when they turn 62, up to the age of 65.
Mr Tan said not giving firms sufficient time to adapt may result in making older workers less employable. "(Some) companies will feel that, well, if that's the case then I'd rather not take on someone at this age because, you know, these few years I will be tied down in a way where I'm not able to adjust," he added.
The minister made these comments in an interview to sum up the progress of the Ministry of Manpower this year and outline its plans going forward.