During the first day of the Budget 2024 debate on February 26, 2024, 29 Members of Parliament (MPs) voiced their opinions on various support measures for workers, while cautioning against an over-reliance on short-term handouts. The MPs highlighted the importance of fostering long-term solutions to enhance Singapore’s competitiveness and resilience in the face of evolving economic challenges.

Several MPs expressed concerns regarding the sustainability of the S$1.9 billion enhancements to the Assurance Package. West Coast MP Foo Mee Har warned that excessive cost-of-living support could inadvertently fuel inflation, urging caution in designing financial handouts to avoid creating a dependency culture among citizens. Progress Singapore Party (PSP) Non-Constituency MP Hazel Poa echoed these sentiments, highlighting the risks of widespread reliance on government aid like GST Vouchers.

MPs called for a shift from a “patchwork scheme” of temporary financial assistance towards more systemic reforms, with PSP NCMP Leong Mun Wai advocating for a “permanent scheme approach,” including the introduction of a minimum living wage. Workers’ Party (WP) MP Louis Chua proposed more targeted assistance for the most vulnerable, suggesting adjustments to tax policies rather than one-off rebates.

On the issue of fiscal sustainability, Jalan Besar MP Denise Phua recommended innovative funding strategies, such as leveraging Temasek and the Government of Singapore Investment Corporation (GIC) to increase contributions to public finances and fostering public-private partnerships for flexible funding solutions.

MPs also underscored the need for retraining older workers rather than resorting to short-term aid. The SkillsFuture Level-Up programme, which includes a S$4,000 SkillsFuture Credit top-up for Singaporeans aged 40 and above, was noted as a positive initiative. However, Leader of the Opposition Pritam Singh pointed out that many eligible courses could exceed the top-up amount. He reiterated the call for an interest-free SkillsFuture education loan for those pursuing high-demand fields.

To improve participation in retraining initiatives, Ang Mo Kio GRC MP Darryl David proposed expanding the SkillsFuture programme to include part-time diploma courses, allowing participants to work while they retrain. MPs also expressed concern about the potential misuse of SkillsFuture funding, with discussions around the need for data on the effectiveness of government-funded diplomas in enhancing employability.

Addressing the challenges faced by older workers, MPs raised issues surrounding retirement adequacy and support for retrenched individuals. The impending closure of the Central Provident Fund Special Account for those aged 55 and above was a concern. MPs sought clarity on the details of the temporary support scheme for retrenched workers, with NCMP Poa emphasizing the urgency of timely implementation.

Kebun Baru MP Henry Kwek proposed a “multi-tier” approach to retrenchment support, which would encompass a basic payout alongside measures such as freezing housing loans and healthcare premiums. However, Saktiandi Supaat warned against creating a moral hazard that might encourage unproductive behavior.

Beyond individual support, MPs discussed assistance for small and medium-sized enterprises (SMEs) facing labor shortages. West Coast MP Ang Wei Neng advocated for maintaining the current foreign worker quota and levy for sectors that struggle to attract local workers. Additionally, Mountbatten MP Lim Biow Chuan suggested a review of the dependency ratio ceiling to help companies manage labor costs in industries with low local interest.

Overall, the first day of the Budget debate highlighted a collective desire among MPs to strike a balance between immediate financial support and sustainable, long-term strategies that empower Singapore’s workforce.