Give workers a greater sense of security: Sylvia Lim

Amid the pushback against globalisation around the world, Singapore's Government has introduced policies that seek to cushion citizens from the harsh impact of economic liberalisation, said Workers' Party chairman Sylvia Lim (Aljunied GRC).

The planned reduction of the foreign worker quota in a few sectors, announced in Budget 2020, will go some way in protecting the jobs of Singaporeans, she added, welcoming the move.

But it may be time to consider other measures that can assuage the anxiety of workers who are facing job disruptions brought on by technological changes and globalisation, she told the House.

She gave two suggestions: Allow Singaporeans to use their Central Provident Fund (CPF) savings to pay for professional qualifications in a different field, and introduce unemployment insurance. "If the anxiety of citizens is not taken seriously enough, the door to populism and nativism will widen."

Focusing on workers in their 40s and 50s, Ms Lim said while significant resources have been devoted to help them reskill and switch industries, more can be done to give them a sense of security. She noted that some who had been laid off had tapped the Adapt and Grow initiative, which helps people reskill, but were unable to find a job for months.

She suggested that people who have met their CPF minimum sums be allowed to use their CPF to pay for retraining when they want to switch industries.

She also called on the Government to consider implementing redundancy insurance, which pays people an income when they become unemployed. "How confident is the Government that its existing schemes will be able to find solutions for everyone who applies?" she added, saying it ought to "reassess its approaches periodically as economic and technological realities change".

While there is no doubt that Singapore has been a major beneficiary of globalisation, she said, "the question is how the losers from globalisation are treated".

She added that unwinding globalisation is impossible, but Singapore should strive for the kind of "alternative globalisation" that improves human welfare in a sustainable way. To this end, the Government has introduced policies to reduce poverty and strengthen the safety net, such as through rebates and financial transfers targeted at the poor and schemes to retrain and reskill workers.

"Some of its policies, including in this Budget, seek to mitigate the harsh impacts of economic liberalisation on Singaporeans," she said. "However, the anxiety and insecurity aspects will also need to be addressed adequately in order to shore up the concept of unity, the theme of this Budget."

On her CPF suggestion, Manpower Minister Josephine Teo said the lack of training funds is not the main barrier to people looking to switch careers. "As Ms Lim herself also acknowledged, we are redoubling support to both employers and individuals," she said. "I suggest that we focus on these initiatives instead of putting at risk the retirement savings of our people."

She also said that rather than a lack of funds, it is the concern about moving into unfamiliar occupations and sectors that create a significant barrier for people. A key part is to provide the "scaffolding and the handholding" they need to make such transitions.

On unemployment insurance, the minister warned that it could have unintended consequences.

"While we keep an open mind about unemployment insurance, we should be also aware of its serious downsides, such as reducing employers' willingness to pay retrenchment benefits... (and) reducing motivation to find work," she said. Rather, she added, the best way to support workers is to ensure a pro-business environment so that jobs are always being created, people are supported in retraining, and companies promote fair employment practices.