GE2025: Universal minimum wage will scare businesses amid economic uncertainty, says Tan See Leng

Follow our live coverage here.

SINGAPORE - Now is not the time to introduce a universal minimum wage policy as it will risk driving businesses away amid economic uncertainty in the light of the US tariffs, said Manpower Minister Tan See Leng on April 30.

“Currently, what is most important is to make sure that we are able to ensure that... our workers continue to have gainful, meaningful employment opportunities,” Dr Tan said during a walkabout in Chua Chu Kang GRC, which he is contesting.

“We think there’s a storm that lies ahead, and whatever study that people propose, there is a timing for everything,” added the anchor minister for the PAP team.

Dr Tan was responding to calls for a universal minimum wage policy made by the opposition PSP on the campaign trail.

The PSP, which is running against Dr Tan’s PAP team in the group representation constituency, has suggested setting a minimum monthly wage of $2,250 to help Singaporean workers cope with rising living costs.

One of the PSP’s candidates for Chua Chu Kang GRC, Mr Lawrence Pek, has criticised the Government’s current wage policies as outdated, and urged a review of the feasibility of implementing a universal minimum wage. Mr Pek was the former secretary-general of the Singapore Manufacturing Federation (SMF).

“Businesses are finding it very hard-pressed, particularly with the uncertain economy, (to move) forward because of the tariff war,” said Dr Tan, speaking to reporters on the sidelines of a walkabout at Lot One. “Now, if you impose anything, I think you’re going to really scare a lot of the businesses away.”

He said the Government has assembled the Singapore Economic Resilience Taskforce, led by Deputy Prime Minister Gan Kim Yong, to look into the impacts that the tariffs imposed by US President Donald Trump would have on Singapore.

The priority now is to ensure businesses are supported and that workers continue to have meaningful employment opportunities, said Dr Tan, who is also the Second Minister for Trade and Industry.

He said that a one-size-fits-all approach will not work in Singapore. Instead, the Government has a toolbox of wage policies to work in tandem to support lower-income workers.

It includes the Progressive Wage Model (PWM), first introduced in 2014, which Dr Tan said is more robust than a minimum wage policy. The PWM is an initiative that aims to sustainably raise lower-wage workers’ incomes by linking wage increases to skills upgrading, productivity improvements and career progression.

Dr Tan said: “As a result, there’s a very proper wage ladder, a career ladder which (businesses) can find is a more sustainable model.”

He added: “Mr Pek, he was formerly in the SMF. I think he may have only understood in part, but not much depth, as to what our PWM is all about.”

Dr Tan also highlighted the existing Workfare Income Supplement, which complements the PWM. The scheme is designed to encourage Singaporean workers to build their Central Provident Fund savings, earning them cash payments and additional fund contributions.

He said: “We have a whole suite of measures available that we will be able to draw on very quickly.”

The salaries of lower-wage workers here have also risen faster compared with those of the workforce as a whole, said Dr Tan, referring to figures highlighted in Parliament in March to show the results of Singapore’s progressive wage efforts.

PAP candidate for Chua Chu Kang GRC Jeffrey Siow, who was formerly a permanent secretary at the trade and industry and manpower ministries, said a universal minimum wage risks raising business costs and could deter firms from hiring Singaporeans.

“I would suggest that it is worthwhile to ask companies themselves what they think of this proposal, perhaps ask the SMF,” said Mr Siow. He had earlier referred to the PSP’s policy proposal as more of a “political tool” than a practical solution.

With the hustings coming to its final day on May 1, Dr Tan said the PAP team members, who are mostly new to the GRC, have focused on visiting markets, the MRT station and residents at their homes to introduce themselves to voters.

His team includes Mr Zhulkarnain Abdul Rahim, the incumbent MP overseeing the Keat Hong ward, and two new faces, Dr Choo Pei Ling and Mr Siow.

Dr Tan said the team will come up with a 100-day plan to see how concerns raised by residents can be addressed, such as connectivity issues in Tengah, which will be prioritised.

Mr Pek, who was also at Lot One doing a walkabout with the PSP team on the evening of April 30, said he hoped the ongoing debate between parties during the hustings would raise greater awareness of the minimum wage policy.

“I stress, the socioeconomic situation in Singapore has changed dramatically over the last five years and is very different from all the labour policies that we had 10 years ago,” he said, repeating his call for a feasibility review on the universal minimum wage policy.

He was speaking alongside his PSP teammates, Ms Wendy Low, Mr A’bas Kasmani and Mr S. Nallakaruppan.

The team pledged to tackle the rising cost of living and shortage of job opportunities – key concerns frequently raised by residents.

Ms Low, a lawyer, said the team plans to set up a studio to support both job seekers and residents’ mental well-being, and will tap their networks of companies and contacts to connect residents with employment opportunities.