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He said Singaporeans will remain at the centre of Singapore's manpower policies, with plans to strengthen skills, improve career mobility, and better support displaced workers amid economic change.
Singapore's manpower policies will continue to put Singaporeans at the centre while supporting businesses to remain competitive, Dinesh Vasu Dash, Minister of State for Manpower said during his response to the Workers' Party Motion on "An Economy of the Future that Works for All" in Parliament.
Speaking on 5 August (Wednesday), he said the Government's goal is not simply to grow the economy, but to improve the lives of Singaporeans by creating better opportunities, better jobs and higher incomes, while ensuring the benefits of growth are shared broadly.
To achieve this, MOS Dinesh outlined three key areas of focus: keeping Singaporeans at the centre of manpower policies, transforming enterprises and jobs together, and strengthening Singapore's tripartite partnership.
Singaporeans remain at the heart of manpower policies
MOS Dinesh said Singapore's current approach has delivered positive outcomes across the workforce, pointing to a resident unemployment rate of 2.9% in March 2026, alongside sustained wage growth over recent years.
Between 2021 and 2025, real median income grew cumulatively by 7.4%, while workers at the 20th income percentile saw even stronger cumulative real income growth of 10.1%. Income inequality also declined over the same period.
He noted that Singapore has managed to achieve low unemployment, rising wages and falling income inequality at the same time, something few advanced economies have accomplished.
Addressing comparisons with other newly industrialised economies, MOS Dinesh said Singapore's wage outcomes remain higher across both median and lower-income groups. He added that real wage growth has also outpaced productivity growth in recent years. Between 2021 and 2025, real value-added per worker increased by around 0.7% annually, while real median income of full-time employed residents rose by about 1.8% annually.
According to the MOS, these outcomes were driven by deliberate policy choices, including initiatives such as the Progressive Wage Model, workfare and the local qualifying salary.
He also highlighted the resilience of Singapore's labour market despite ongoing global uncertainties. Although retrenchments at some companies have attracted public attention, employment expanded for the 19th consecutive quarter in the first quarter of 2026. Resident employment continued to grow, unemployment remained low and businesses continued hiring.
Still, MOS Dinesh acknowledged that workers are increasingly concerned about job disruption and whether they will be able to secure comparable employment if displaced.
"As an open and small economy, Singapore’s prosperity has always depended on our ability to compete successfully in global markets while ensuring that Singaporeans benefit from that success," he said.
Economic Strategy Review puts workers at the centre
Against this backdrop, MOS Dinesh said the Economic Strategy Review (ESR) provides an actionable blueprint to address these challenges.
Developed through engagements with more than 7,700 businesses, unions and workers, the review places workers at the centre of its recommendations through four key priorities.
Strengthening the link between skills and jobs
The first priority is making it easier for Singaporeans to access career and skills support while ensuring training leads to stronger employment outcomes.
MOS Dinesh said that after more than a decade of SkillsFuture, the Government is shifting its focus towards ensuring training translates into better jobs, higher wages and career progression.
In 2025, more than 62,000 jobseekers secured employment after receiving support through Workforce Singapore's programmes and services.
Among jobseekers who received career matching services in 2023, around six in 10 found employment within six months. Meanwhile, about nine in 10 participants in Career Conversion Programmes remained employed two years after joining the programme, while around six in 10 earned more than they did previously.
While acknowledging there is room for improvement, MOS Dinesh said these outcomes demonstrate the value of strengthening, rather than replacing, existing workforce support programmes.
To further tighten the link between training and employment, he pointed to the newly established Skills and Workforce Development Agency (SWDA), formed through the merger of SkillsFuture Singapore and Workforce Singapore.
The agency will work to better align future skills with future jobs, identify workers who may be at risk earlier and provide more seamless support from training through to job placement.
Supporting young Singaporeans as they enter the workforce
The second priority focuses on helping young Singaporeans transition into employment.
Acknowledging concerns about artificial intelligence reshaping entry-level work, MOS Dinesh said many graduates and their parents are understandably anxious about entering the workforce.
However, he noted that labour market indicators remain relatively strong.
In the first quarter of 2026, there were approximately 32,800 entry-level PMET vacancies, exceeding the number of graduates seeking jobs. Around nine in 10 university graduates from the 2025 cohort secured employment within one year of graduation, comparable to previous graduating cohorts.
Looking ahead, the Government plans to strengthen work-based learning through initiatives including the SkillsFuture Work-Study Programme, the AI Apprenticeship Programme and sector-specific initiatives such as MAS' Young Talent Programme for AI in Finance.
MOS Dinesh said these efforts are intended to bring education and work closer together while helping young people build recognised skills and stronger career foundations from the outset.
Helping displaced workers bounce back
The third priority centres on improving support for workers affected by job displacement.
In line with the ESR's recommendations, the Government is studying enhancements to the SkillsFuture Jobseeker Support Scheme (JSS), including whether it should cover more professionals, managers and executives (PMEs).
MOS Dinesh stressed that the scheme was designed to support reemployment rather than unemployment.
Responding to suggestions for an unemployment insurance scheme, he said the proposed model shares many similarities with the JSS, except that the existing scheme places greater emphasis on helping individuals return to work.
He also noted that proposals for mandatory retrenchment benefits will be studied further by the Tripartite Workgroup on the Employment Act Review.
“We have to get it right — by creating job opportunities, helping Singaporean workers access them, and when they face the effects of economic disruption, ensuring that they will never have to navigate difficult and uncertain times alone," he said.
Creating stronger career mobility
The fourth priority is strengthening career mobility to support inclusive growth.
MOS Dinesh said the Government wants to create more pathways into quality jobs, including roles in domestic and essential services where many Singaporeans are employed.
He also highlighted ongoing efforts to improve career prospects in the skilled trades.
As announced earlier this year, the Ministry of Manpower (MOM) has partnered with the Specialists Trade Alliance of Singapore (STAS) to develop more structured career pathways into skilled trades, beginning with the electrical sector.
More broadly, MOS Dinesh said sustainable wage growth depends on higher productivity, better job design, stronger certification, modern tools and employers sharing productivity gains with workers.
Enterprise transformation must go hand in hand with workforce transformation
Beyond supporting workers, MOS Dinesh stressed that enterprise transformation remains equally important because stronger businesses create better jobs.
He noted that small and medium-sized enterprises (SMEs) employ around two-thirds of Singapore's workforce, making their continued growth critical to raising productivity and sustaining wage growth.
He also pointed to entrepreneurship as another pathway for Singaporeans to succeed, noting that Singapore is now home to more than 4,500 technology startups.
Using Carousell as an example, the MOS said Singapore companies can grow by expanding into international markets and leveraging global technologies and business networks.
At the same time, he emphasised that local enterprises and multinational corporations complement one another rather than compete against each other.
Foreign-owned companies account for around one-fifth of firms in Singapore but employ nearly one-third of resident workers. In 2025, Singapore citizens and permanent residents held about 85% of senior management positions within these multinational companies.
Dr Tan See Leng reiterates focus on growth and inclusion
In his separate closing speech on the motion, Dr Tan See Leng, Minister for Trade and Industry (Energy and Industry) echoed this view, stressing that Singapore's economic strategy has never been about growth for growth's sake. Instead, he said the aim has always been to ensure that economic progress improves the lives of Singaporeans through good jobs, rising incomes and opportunities for businesses and workers alike.
He added that the Government does not see growth and inclusion, or competitiveness and worker protection, as competing priorities. Rather, these goals reinforce one another, with a competitive economy creating better jobs and higher wages, while an inclusive society strengthens resilience and supports sustainable growth.
Tripartism remains a key strength
Concluding his speech, MOS Dinesh said the goal is to build an economy where Singaporeans can participate, contribute and succeed, with workers able to build meaningful careers and enterprises continuing to innovate and grow. He added that the Economic Strategy Review seeks to achieve this by pursuing growth and inclusion, competitiveness and worker protection together, so that economic progress translates into better jobs, higher wages and stronger pathways for advancement.
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Lead image / MDDI YouTube
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