Singapore Needs to Rethink Economic Strategies, Say Workers' Party MPs
Singapore must reassess its economic strategies due to changing circumstances, moving beyond reliance on workforce expansion and attracting multinational corporations (MNCs). This call to action was made by Mr. Louis Chua (Sengkang GRC) in Parliament on September 23rd. He highlighted the limitations of solely boosting capital and labour for economic growth, echoing sentiments previously expressed by President Tharman Shanmugaratnam.
Rethinking Singapore's Economic Playbook
Mr. Chua emphasized that while efforts are underway to refresh Singapore's economic strategies, the nation's economy remains heavily reliant on attracting global MNCs and foreign investment. He questioned the sustainability of driving economic growth through further workforce expansion, given that Singapore's population has already reached six million and is one of the most densely populated cities globally.
He also urged for increased efforts to raise Singapore's total fertility rate, which stood at 0.97 in 2024, warning that "without enough Singaporeans, there will be no Singapore economy to speak of." President Tharman had earlier indicated that restructuring industries and building deeper capabilities in advanced manufacturing and information technology are crucial steps.
Addressing Job Security in the Age of AI
Mr. Chua also addressed concerns about job and financial security in the age of artificial intelligence (AI), a point also raised by WP Non-Constituency MP Andre Low. Citing anxieties among young graduates, he suggested reintroducing the Jobs Growth Incentive specifically for fresh graduates, similar to the wage support scheme implemented during the Covid-19 pandemic to encourage companies to hire local workers.
A "Redundancy Insurance for the AI Age"
Mr. Low argued that Singapore's current social safety nets are "ill-equipped" to handle the economic changes driven by AI. He proposed a "Redundancy Insurance for the AI Age" scheme, which would provide workers with 40 percent of their last-drawn salary, capped at 40 percent of Singapore's prevailing median income, for up to six months. He suggested this scheme be funded by equal contributions from employers and employees (0.1 percent of an individual's monthly salary) to create a "true safety net" and give workers the confidence to explore new opportunities.
"By strengthening our foundation of security, every Singaporean will have the licence to try new things because, should you fail, you will not have too far to fall," said Mr. Low.
The Importance of Trust and Transparency
Concluding his speech, Mr. Low emphasized the critical role of trust, calling for a Freedom of Information Act and Standing Select Committees for each ministry. He stated that the government must also learn to trust its people with information and engage in genuine dialogue.
"We have long been asked to trust the Government’s judgment, wisdom and intentions. In this new age, the Government must also learn to trust its people with information, with genuine dialogue, and with the fundamental dignity of participation," he said.
