WP MPs call for rethink of Singapore’s economic playbook, stronger safety nets for workers

SINGAPORE - Singapore needs to rethink its economic playbook, as changed circumstances mean the nation cannot keep relying on workforce expansion and attracting multinational corporations (MNCs), said Mr Louis Chua (Sengkang GRC).

Speaking in Parliament on Sept 23, the Workers’ Party MP said there are limits to growth by boosting capital and labour.

He cited what President Tharman Shanmugaratnam had said in his address on Sept 5, that work has begun on refreshing Singapore’s economic strategies.

Much effort will be required to restructure the country’s industries and build deeper capabilities in sectors such as advanced manufacturing and information technology, Mr Tharman had said.

Yet in the short term, much remains largely unchanged, Mr Chua said.

On the capital front, the focus is still on attracting foreign direct investment here, he noted.

Mr Chua acknowledged that Singapore has been attempting to refresh its economic strategies, but said the economy remains very much driven by attracting global MNCs and capital.

Noting that Singapore’s population has hit six million, he asked how much further the country – one of the most densely populated cities worldwide – could drive economic growth through workforce expansion.

He called for more to be done to raise Singapore’s total fertility rate, which stood at 0.97 in 2024, as “without enough Singaporeans, there will be no Singapore economy to speak of”.

Mr Chua also spoke about job and financial security in the age of artificial intelligence (AI), an issue raised by WP Non-Constituency MP Andre Low as well.

Citing job anxieties among young graduates, Mr Chua suggested reintroducing the Jobs Growth Incentive, but specifically for fresh graduates.

The Government had introduced the wage support scheme during the Covid-19 pandemic to spur companies to hire local workers.

Mr Low said Singapore’s existing social safety nets are “ill-equipped” for the coming economic changes.

In the current era of disruption driven by AI, a “permanent foundation of security” is required, he added.

He suggested a “Redundancy Insurance for the AI Age” scheme, which will give workers 40 per cent of their last-drawn salary, capped at 40 per cent of Singapore’s prevailing median income, for up to six months.

This scheme, he said, would be funded by equal contributions from employers and employees – 0.1 per cent of an individual’s monthly salary. It will create a “true safety net” to give workers the confidence to explore new opportunities, he added.

“By strengthening our foundation of security, every Singaporean will have the licence to try new things because, should you fail, you will not have too far to fall,” he said.

Mr Low rounded up his speech by bringing up the issue of trust.

Trust has to be a two-way street, he said, reiterating the WP’s longstanding calls for a Freedom of Information Act and Standing Select Committees for each ministry.

“We have long been asked to trust the Government’s judgment, wisdom and intentions. In this new age, the Government must also learn to trust its people with information, with genuine dialogue, and with the fundamental dignity of participation,” he said.