Singapore's tripartite partners must make ‘short-term tradeoffs and long-term investments' in transformation: SNEF
Tan noted that Singapore saw strong growth of 4.4 per cent last year – 'particularly impressive amidst global economic uncertainties' – and that the labour market remains resilient.
But he warned: 'Nevertheless, the road ahead is neither certain nor clear.'
Geopolitical tensions and trade restrictions are pushing employers to rethink their growth strategies and how to make workers more productive, he said. More workers are also opting for gig or freelance work – meaning less skilled labour for businesses.
'It is therefore imperative that Singapore remains open and welcoming to global talent who can help drive innovation and catalyse business growth,' he said.
'A complementary local and foreign workforce will help us better navigate the fast-changing and complex operating environment.'
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Amid this uncertainty, the tripartite partners must make short-term tradeoffs as well as long-term investments in business and workforce transformation, he said.
Transforming the workforce
On transforming the workforce, Tan noted that although some workers worry about being replaced by artificial intelligence (AI), 'the reality can be much more optimistic'.
Automation and generative AI can enhance productivity and innovation, freeing up workers to focus on higher value-added activities, he said, calling on both employers and workers to embrace such technology.
SNEF will work with the Manpower Ministry and labour movement to support employers and workers in continuous upskilling, he said.
And while Singapore's workforce is ageing, the tripartite partners are working to 'design solutions that will better tap into the potential and wisdom of our senior workers', with the upcoming Tripartite Workgroup initiative on Senior Employment and Alliance for Action on Empowering Multi-Stage Careers for Mature Workers.
Transforming the workplace
Tan also laid out how employers must respond to the changing profile and aspirations of workers, noting that today's workforce is better educated and values a balance between personal commitments and career aspirations.
He highlighted SNEF's role as a contributing party to the Tripartite Guidelines on Flexible Work Arrangements.
'Although the business community initially expressed reservations over the guidelines, we have shown that it is possible to find a balanced and practical implementation path through our collective efforts,' he said.
As for building fair and inclusive workplaces, SNEF will also continue engaging employers on the Workforce Fairness Legislation.
Concluded Tan: 'Over the years, our partnership with the labour movement enabled us to weather economic storms and emerge stronger from past crises. While economic uncertainties loom on the horizon, new opportunities are also emerging.'
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