Government looking to encourage Singaporeans to switch to jobs in areas like sustainability, digitalisation: Indranee

SINGAPORE: The government is looking to encourage people to move into growth areas like sustainability and digital jobs with the SkillsFuture boost for mid-career workers announced in Budget 2024, said Second Minister for Finance and National Development Indranee Rajah on Monday (Feb 19).

“Digitalisation, sustainability, these are key growth areas. And then of course you have our usual ones, electronics and manufacturing - all of these things. Basically, anything where there's growth, we encourage people to pursue,” she told CNA938’s Asia First.

However, digitalisation cannot be pigeonholed, she said, pointing out that the process spans a range of work.

When asked how to ensure that further education improves the employability of workers, Ms Indranee said that the government provides the information for people to make informed choices, but does not dictate what people should do.

“What the government can do is identify the growth areas. We've now made available the means by which you can pursue further learning in these areas and then we should put out as much information as possible so people can make the choices that feel best for them,” she said.

WHY THE FOCUS ON DIPLOMAS?

Deputy Prime Minister Lawrence Wong announced on Friday that Singaporeans aged 40 and above will benefit from a new SkillsFuture programme that includes a S$4,000 (US$2,970) top-up in credits in May.

The measures also include subsidies for another full-time diploma at polytechnics, Institutes of Technical Education and arts institutions from the 2025 academic year, and monthly training allowances for those who enrol in selected full-time courses.

When asked why the new measures focus on getting a diploma, as opposed to a degree, Ms Indranee said it is because the university pathway is usually more academic in nature, but diplomas are skills-based.

“The assumption here is that you've spent your working life doing something and it could have been on the back of a university degree, it could have been on the back of a diploma,” she said.

Ms Indranee, who is also Minister in the Prime Minister’s Office, said that the measures will help mid-career workers add to an existing educational foundation and working experience.

“Going forward, as you look to the next chapter, skills are going to become really important because don't forget, you've already got all the foundation that the degree and the first diploma gave you. What you're trying to do now is you're trying to add to that,” she said.

“Some may wish to go into social work. Some may wish to go into the childcare industry. Some may want to become life coaches. You don't need another degree for that, but you may find diplomas that touch on the topics that you're interested in helpful. So, see it sort of as a layering. It's not that what you learned before doesn't matter anymore,” she added.

Explaining the “philosophical underpinnings” of the measures, Ms Indranee said the world has changed and that learning has become continuous. This means needing to continue to upgrade even after leaving school.

She added that the schemes set the foundation for workers to continue to be able to provide value beyond retiring from their jobs.

ENCOURAGING COUPLES TO HAVE BABIES

When asked about the lack of incentives announced to encourage parents or would-be parents to have children in the Year of the Dragon, Ms Indranee, who assists in the oversight of the National Population and Talent Division in the Prime Minister’s Office, said that apart from the cost of raising a child, several factors impact a couple’s decision.

She noted that these include having time to look after their children, having flexibility at work, and affordable childcare. She acknowledged that more can be done and that the Government is still working on it.

“If you look at the Forward SG report, we did say that there is much room to make Singapore more family-friendly and that would not just be the financial assistance and cost of living assistance that we've put in, but really looking to see how we can support parents in the workplace,” she said.

She added that flexible work arrangements are a very important part of that, and she will touch on that during the upcoming Committee of Supply debate

Responding to a question on the effectiveness of existing policies and incentives, Ms Indranee noted that declining marriages and falling birth rates are global problems also seen in other developed countries, like Japan and South Korea.

“What we can do is try and create the conditions such that it makes it much easier for those who want to get married and have children to do so,” she said, adding that this includes helpful housing initiatives.

For instance, Mr Wong announced on Friday that more couples who have booked and are waiting for their Build-to-Order flats to be completed will be able to rent a Housing Board flat in the open market.

KEEPING SINGAPORE COMPETITIVE

Ms Indranee also spoke about the the Base Erosion and Profit Shifting (BEPS) 2.0 initiative, part of which requires a global minimum corporate tax rate of 15 per cent for multinational enterprises (MNE) groups with annual global revenues of 750 million euros (S$1.09 billion) or more.

BEPS 2.0 is a landmark project led by the Organisation for Economic Co-operation and Development (OECD) which 140 countries have agreed to.

The initiative, which has two pillars, aims to make sure MNEs fork out a fair share of tax instead of avoiding it through loopholes in a global operating environment. It is currently not mandatory and has been adopted by countries like the United Kingdom, Switzerland and Australia.

“BEPS also recognises that countries need to compete. The question is how to let them compete fairly, and in a way that is that that doesn't undermine other countries. That was the whole impetus for BEPS to begin with,” she said.

“Under the BEPS regime, it does allow for investment credits, which in nature and characters is a grant.”

She added that the investment credits that Singapore has designed to retain its appeal as a top investment destination despite BEPS 2.0 kicking in from next year will be BEPS compliant.