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August 5, 2026

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WP asks for ‘updated growth model’ that benefits workers; PAP says approach ‘always built around Singaporeans’

WP MPs urged the government to consider minimum retrenchment benefits and unemployment insurance, while Minister of State Dinesh Vasu Dash said the government’s economic blueprint already makes similar recommendations.

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SINGAPORE: The Workers’ Party (WP) on Wednesday (Aug 5) called for an updated growth model that will benefit Singapore workers, whereas the ruling People’s Action Party (PAP) said the current approach has delivered good results to generations of people in Singapore.

Members of Parliament from both sides of the aisle spoke during a debate on a motion tabled by WP Members of Parliament Kenneth Tiong (WP-Aljunied) and Jamus Lim (WP-Sengkang) on an “economy of the future” that works for all Singaporeans.

Mr Tiong called for an updated growth model in his speech – one that “cares not only about the headline gross domestic product (GDP) growth figure, but the structure of growth”.

He asked for an “honest” measurement and prioritisation of what matters from growth, which includes accounting for how much Singapore workers, owners and entrepreneurs have contributed to the national income.

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WP chief Pritam Singh reiterated the party’s call for retrenchment support, saying it was time to legislate minimum retrenchment benefits.

“This legislative omission in our employment laws sits in stark contrast to the reality our workers face, as set out by the ESR report,” he said, referring to the Economic Strategy Review which released its final report on Jun 24.

Responding to the WP’s motion, Minister for Trade and Industry (Energy and Industry) Tan See Leng said in his speech that financial support during unemployment or retraining gives workers and families “breathing space” but this must be connected to a pathway forward for the worker.

The objective must be to help each individual return confidently to sustainable work and not merely make unemployment more bearable, he said.

He added: “We will not be able to promise that every job will remain unchanged. I don’t think we can, or should we even try to … hold back technology merely to freeze rules in place.”

But the government will help workers prepare earlier, acquire relevant capabilities, find credible next steps, and navigate change without being left alone.

“That is how a worker obtains a lasting share of economic success, not only through compensation after disruption, but through the enduring ability to contribute, to earn, to adapt, and to progress,” said Dr Tan.

Minister for Transport and Second Minister for Finance Jeffrey Siow said the government’s economic strategy has “always been built around Singaporeans” whether as workers, professionals, investors, entrepreneurs or business owners.

“Economic growth has never been an end in itself. It is a means to an end – to create better jobs, higher incomes and better lives for Singaporeans. And by that measure, Singapore’s economic model has delivered to generation after generation of Singaporeans,” said Mr Siow, who co-chairs the ESR committee on global competitiveness.

30:54 Min

Create a special zone around Nanyang Technological University, built around the needs of young people and young companies. Spanning co-living, enterprise and R&D, it would be “zoned for organic messiness”. This state land would be charged at cost recovery rather than market value and take its returns from companies that grow there. Making the proposal, Workers’ Party (WP) MP Kenneth Tiong described it as a controlled experiment in whether Singapore’s land pricing regime is suppressing entrepreneurship and indigenous capital formation. In parliament on Wednesday (Aug 5), he moved a motion on WP’s vision for Singapore’s economy and its response to the government’s economic plans. He said Singapore needs to build an economy where fair distribution is built into growth, instead of growing first and redistributing later. So, it needs an economic engine driven by dynamic local companies, healthy domestic demand and Singaporeans and Singapore capital venturing abroad.

AN “UPDATED” GROWTH MODEL

Mr Siow was responding to Mr Tiong’s opening speech in the motion, who had urged the government for “significant” reforms to Singapore’s present economic structure to pursue a fairer distribution of growth.

Mr Tiong said while it is “acceptable” as an exigency to grow first and then redistribute this growth through vouchers and rebates, over the medium and long-term, there should be a fair distribution produced by economic growth itself.

Hence, Singapore needs an economic engine that is driven by dynamic local companies, healthy domestic demand, and with Singaporeans and Singaporean capital venturing abroad, he said.

“Only when Singaporeans thrive, and believe the ladders of opportunity are fair to all, can this country be open,” said Mr Tiong.

To this end, he called for the government to “measure what makes that growth worth having”, adding that this includes a fair share of national income, real income growth in line with productivity, and a widening range of what an ordinary wage can afford.

MP Gerald Giam (WP-Aljunied) meanwhile urged that skilled trades such as electricians, plumbers, lift engineers and infrastructure technicians be elevated into high-value careers.

Skilled trade people form the bedrock of the national infrastructure, he said, adding their crafts are resilient to artificial intelligence.

“While artificial intelligence can automate administrative reports and overseas remote workers can process corporate accounts, they cannot physically re-wire a server room, repair a water main or maintain critical infrastructure in Singapore.

“These crafts are inherently localised, highly skilled and resistant to remote replacement,” he said.

He made several proposals, such as promoting the skilled trades to students and mid-career switchers as viable and respected alternatives to polytechnic diplomas and university degrees. He also urged for these vocations to be regulated and promoted in the open market.

Citing labour statistics, Minister of State for Manpower Dinesh Vasu Dash, who is the co-chair of ESR entrepreneurship committee, said in his speech that there is no evidence the economic structure is failing amid a changing world.

Singapore’s labour market has remained resilient despite the challenging external environment, Mr Dinesh said.

While retrenchments in some companies may have dominated the headlines, employment expanded for the 19th consecutive quarter in Q1 2026.

Resident employment continued to grow, unemployment remained low, and firms continued to hire, he added. Real incomes have risen while income inequality has fallen.

“Few advanced economies have been able to achieve all these outcomes at the same time.

“Some members have contrasted Singapore with other industrialised economies, arguing that their greater reliance on local champions had produced better productivity models and better outcomes for our workers,” said Mr Dinesh.

“But on comparable measures, Singapore’s wage outcomes are higher than these economies, not only at the median, but also at the lower levels of income.”

He added: “Thus, the evidence does not support the conclusion that Singapore’s economic model is failing. We are navigating a structural transition, however difficult and uneven, from a position of strength.

“The system has served us well, but we must and will remain adaptable to the changing world.”

21:45 Min

The aspiration behind the motion is one that we all share – we want an economy where Singaporeans can participate, contribute and succeed, said Minister of State for Manpower Dinesh Vasu Dash. Responding to Members in parliament on Wednesday (Aug 5), he stressed the need to build an economy where workers can build meaningful careers, enterprises can innovate and grow, and more Singaporeans can create opportunities for themselves and others. He said this is precisely what the Economic Strategy Review seeks to achieve – not by choosing between growth and inclusion, local enterprises and global connections or competitiveness and worker protection but by pursuing all of these together. This is how Singapore will turn economic growth into broad-based progress through better jobs, wages and pathways for advancement, and continue to build an economy that works for all Singaporeans, he added.

DEBATE OVER RETRENCHMENT BENEFITS

WP chief Pritam Singh urged the government to legislate minimum retrenchment benefits, a topic he had previously pursued in parliament including during the review of the Employment Act.

Eight out of 10 eligible employees were paid retrenchment benefits at or above the current guideline of two weeks’ salary for every year of service from 2020 to 2025.

But Mr Singh noted that in 2024, potentially close to 3,000 retrenched workers in Singapore either received no retrenchment benefits at all or were given less than what is prescribed by the tripartite guidelines.

Workers in Singapore have no statutory entitlement to retrenchment benefits, he said.

“To receive retrenchment benefits, workers in Singapore are dependent on the goodwill of employers, the terms of their employment contracts, or the strength of their bargaining position after they have already lost their jobs.”

Retrenchment benefits represent an important layer of support provided by employers, complementing taxpayer-funded assistance such as jobseeker support, he said.

He added that the Ministry of Manpower (MOM) had advanced several arguments against legislating retrenchment benefits for workers over the years – that mandatory retrenchment benefits may make employers more hesitant to offer long-term or permanent employment contracts; that having a legal minimum would result in employers converging on that minimum; and that mandatory benefits may affect companies already facing financial difficulties.

Mr Singh acknowledged that legislating retrenchment benefits will inevitably attract concerns from businesses. But many responsible employers already provide such benefits, and this can serve as the starting point for legislated retrenchment benefits.

This would largely formalise an existing practice while making sure that workers – who fall through the gap that cannot be bridged by non-binding tripartite guidelines – are protected, he added.

18:56 Min

It is time for Singapore to legislate minimum retrenchment benefits, Workers’ Party chief Pritam Singh told parliament on Wednesday (Aug 5). He said it cannot be assumed that economic growth will result in the same extent of job creation as before and despite Singapore’s positive employment situation, worker anxiety has increased across a wide range of sectors. Arguments against retrenchment benefits must be weighed against the increasingly unpredictable economic landscape facing workers in the years to come, as outlined by the government’s Economic Strategy Review report, he said. He added that Singapore has fallen behind other countries that have adopted such laws. And as many responsible employers already provide retrenchment benefits, legislation would “largely formalise an existing practice” while ensuring that workers who fall through the gap that cannot be bridged by non-binding tripartite guidelines are protected.

Likewise, MP Fadli Fawzi (WP-Aljunied) suggested having a robust safety net to protect workers through mandatory retrenchment benefits and a redundancy insurance scheme.

Upskilling and retraining may not sound like solutions to those who have been made redundant or are on the verge of losing their jobs. Instead, it could be another source of stress and uncertainty, said Mr Fadli.

He mooted the party’s idea of a redundancy insurance scheme which would offer better protection for all workers in Singapore including professionals, managers and executives (PMEs).

In contrast to the SkillsFuture Jobseeker Support Scheme, the WP’s proposal is meant to be universal and funded by joint contributions from both employers and employees, he said.

To this, labour MP Patrick Tay (PAP-Pioneer) said the National Trades Union Congress (NTUC) and the labour movement have been negotiating collective agreements and unionising companies to ensure employees are well-protected in the event of layoffs and that retrenchment benefits can be paid off.

He added that they have been lobbying for further strengthening of the retrenchment protection regime in Singapore.

“We remain open in negotiating, and discussions are in way – whether it’s the Employment Act, reviewing the tripartite advisory to strengthen it to tripartite guidelines which I’ve raised before in this House, and even stronger measures against companies that flout or failed to comply with advisories,” said Mr Tay.

Unlike an unemployment insurance scheme, the NTUC assistant secretary-general said the Jobseeker Support Scheme does not require premiums to be paid by employers and employees.

“This is a situation where (the) government picks the tab and gives that needed support through and with active labour market policies,” he said.

Noting that the ESR report already recommends enhancements to the Jobseeker Support Scheme, Mr Dinesh said the government is looking at how the scheme can cover more PMEs to give them greater confidence and assurance in their next job search.

The ESR report also highlights a need to consider whether an insurance scheme would be useful, which will have to be studied as well, he added.

Mr Dinesh then said it was not clear what the difference is between WP’s redundancy insurance scheme and government’s jobseeker scheme, “except that the job support scheme places more emphasis on reemployment”.

“But I suspect both schemes are similar to one another. Instead of coming up with a new mechanism, the ESR has recommended that we strengthen schemes like the (Jobseeker Support Scheme), especially for PMEs navigating a more difficult career transition,” he said.

This prompted clarifications from Mr Fadli who said the Jobseeker Support Scheme requires a retrenched worker to go through an application process and “face the prospect of rejection”.

The MP added that the WP’s proposed scheme could reduce the risk of underemployment and be better at providing 100 per cent coverage to retrenched workers, he said.

In response, Mr Dinesh said the only difference would be the need for workers to indicate they are in the process of applying for re-employment under the Jobseeker Support Scheme.