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SINGAPORE: Finance Minister Tharman Shanmugaratnam told Parliament on Monday that when the Jobs Credit Scheme ends, the focus will be on building skills and thus wages, across all levels.
He has also indicated that there will be no major shift from the expansionary fiscal stance of this year's Budget although it is too early to say what Singapore's fiscal position will be.
The Jobs Credit Scheme, introduced as part of the government's Resilience Package earlier this year has helped to mitigate the scale of Singapore's economic decline and job losses.
Despite the sharp fall in the country's GDP, unemployment went up moderately and local employment actually increased by 7,000.
A Manpower Ministry survey conducted from May to July 2009 also showed that some three in four companies had postponed or reduced layoffs.
Under the scheme, employers will receive a 12 per cent cash grant on the first S$2,500 of each month's wages for each employee on their CPF payroll, up till December 2009.
After which, the two additional Jobs Credit payments will be based on six per cent and three per cent of the salary.
Even though the scheme has been extended another six months, MPs were concerned about the impact it will have on workers - especially those 45 years and above - when it does end.
MP for West Coast GRC, Ho Geok Choo, said: "Would the eventual cessation of Jobs Credit scheme cause employers to stop making new hires? And would it also lead to less emphasis on training and productivity?"
Finance Minister Tharman Shanmugaratnam noted that the focus has shifted from broad relief measures to those targeted at restructuring, and preparing for longer term growth.
He said: "This means measures that all companies can enjoy if they are putting into place productivity-enhancing measures or measures that increase innovative capacity, as well as measures some companies will enjoy more than others - because they are the ones that are growing fastest, investing more and are likely to lead the economy not just out of recession but are likely to lead the economy and for growth over the next five years. So we'll be more discriminating, we'll be more targeted."
But he added it is not just helping companies to create high-end jobs.
Mr Tharman said: "It means improving our worker's capabilities up and down the line. From the simplest jobs to the most complex jobs. Every worker can improve, every job can yield higher productivity and therefore higher pay. So whether it's a mature worker or younger worker, we've got to address this across the board."
The Economic Strategies Committee, formed in May this year to look at how to position Singapore for sustained growth in the long term, is looking into this issue of enhancing workers' productivity to increase wages.
The committee will release its key recommendations in January and its full report by mid-2010. - CNA/vm
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