More can be done to help retrenched workers in S’pore get help earlier: Desmond Choo

SINGAPORE - More can be done to support retrenched workers in getting help faster and earlier, said co-chair of the Economic Strategy Review (ESR) committee for managing the impact of restructuring Desmond Choo on Feb 9.

Mr Choo, who is also NTUC deputy secretary-general, said the committee is looking at ways to better manage the retrenchment process.

He was speaking during a visit to the Employment and Employability Institute’s (e2i) career centre.

According to the Ministry of Manpower’s labour market survey, nearly 11,000 Singapore workers lost their jobs in the first nine months of 2025, the highest since 2023. Companies which are retrenching can approach e2i to assist retrenched workers.

“How do we allow workers to be better helped earlier and with more dignity? We think that there is scope for us to work with our tripartite partners to bring retrenchment notice earlier,” Mr Choo said.

He added that more can be done to support more timely, targeted placement that shortens the period a retrenched worker will be out of work.

The visit is part of the ESR committee’s engagement with the media to provide more details on its mid-term recommendations and plans.

The committee was tasked to strengthen workers’ career transition support and enable businesses to proactively navigate these transitions. The two priorities are part of the

seven strategies rolled out by the ESR committees

to secure growth and good jobs amid tariff and artificial intelligence threats.

“We need to learn to hunt as a pack – no longer individual organisations doing placement or offering jobs. We must be prepared to work across not only our non-profit organisations and the Government, but also with private placement operators to build up a strong placement ecosystem.”

Mr Choo also highlighted the resistance and inertia often experienced by workers who needed to change to a new industry. To tackle this, solutions recommended by the committee include building “career bridges”, intensifying career conversion programmes and strengthening one’s career health.

“Career bridges are the fundamental assumption that not all your skills are irrelevant. You may start off being 50, 60 or 70 per cent ready, and you build a bridge from impacted industries... to move to more resilient sectors,” he said.

More help to support companies

More help will also be given to companies that are looking to grow and move on to the next engine of change, consolidate into the more profitable sectors and seek new overseas expansions.

These are the three broad examples of companies that the committee will focus on to support workers on their transition pathways, said Minister of State for Home Affairs and Social and Family Development Goh Pei Ming at the event. He co-chairs the committee for managing the impact of restructuring with Mr Choo.

Mr Goh cited VDL Enabling Technologies Group Singapore, a manufacturer of high-tech semiconductor equipment, as an example of the first group of companies the committee is looking to support.

“And now they are confident to dream, and planning to double their revenue in the next five years,” he said.

Meanwhile, the second group of firms comprises those open to reviewing their business approach and looking to consolidate into more profitable sectors.

Such transitions can be difficult, he added, and more can be done to help companies understand their business health and where the industry is heading towards.

Another area of focus is providing guidance for companies to better assess and chart the way forward through various pivots.

“The industry partners have told us that with some of these specialised advice coming on board, they will be more confident to navigate this transition. On a more practical note, they will also be able to maximise their asset recovery.”

The third group of companies refers to those that are open to exploring overseas expansion opportunities. Mr Goh noted that the committee seeks to help businesses grow and facilitate international expansions by providing connections and resources, allowing workers to take on higher-value supervisory roles.

He gave the example of manufacturing firm OTS Holdings, which has expanded its manufacturing operations to a new Johor facility to improve its overall cost competitiveness. This opened up opportunities for its workers to upskill and take on supervisory roles in the new facility.

Ms Kohe Hasan, deputy honorary secretary on the council of the Singapore National Employers Federation, noted that when it comes to retrenchments, it “may not be easy for companies to be able to provide notifications in advance”.

“It is important for us to bear in mind that usually when companies retrench, it is always the last tool in the box. Companies do not go out there to retrench their workers easily,” she said.

She added it requires the collaborative efforts of all the tripartite partners – the three-way relationship between employers, unions and the Government – to manage the retrenchment process “such that it achieves the least amount of pain for both businesses and workers”.