Committee explores early retrenchment notifications to aid affected workers
An Economic Strategy Review committee in Singapore is considering expanding career conversion programs to prevent job losses as companies restructure, committee co-chair Desmond Choo said.
The initiative would involve working with companies planning operational changes to upgrade employee skills before any retrenchments occur, Choo told reporters Monday.
“I think that can help people from falling out of the workforce,” he said.
Choo, who is minister of state for defence and deputy secretary-general of the National Trades Union Congress, co-chairs the committee with Goh Pei Ming, minister of state for home affairs and social and family development. The committee is one of five shaping an economic blueprint for Singapore, Channel News Asia reported.
The co-chairs provided a midterm update on the committee’s work, which included seven key recommendations announced in January after gathering feedback from businesses and workers.
Choo said career conversion programs, administered by Workforce Singapore, have produced strong results in recent years.
“We can double down on some of this work, working closely with [trade associations and chambers] and companies to identify more opportunities for career conversion programs,” he told reporters.
The committee is also exploring “career bridges” to address worker resistance to acquiring new skills and moving into different industries, Choo said. These bridges recognize that not all existing skills are irrelevant and that employees may already possess a significant portion of the skills required for another role.
Safeguarding jobs from AI disruption
The approach is expected to help workers in sectors more affected by artificial intelligence, such as administrative work, transition to more resilient industries offering different career paths, like healthcare, Choo added.
The co-chairs also addressed support for retrenched workers. Choo said retrenchment is “part of normal economic change” and is inevitable when companies restructure.
He noted there is potential to work with tripartite partners to require earlier retrenchment notifications, allowing affected workers to receive support sooner.
Currently, companies with at least 10 employees must notify the Ministry of Manpower within five working days after informing an employee of retrenchment. Earlier Monday, NTUC said that at Budget debates, labor chief Ng Chee Meng will call for mandatory advance retrenchment notifications.
“Our workers should know over time, that even though there will be variances, up and down structural changes, you’ll always be taken care of,” Choo said.
He stressed the importance of supporting workers’ career health.
“When a person is deeply involved in the job and working just to make sure they fulfill the job requirements, oftentimes they neglect skills upgrading,” he said. “We want to make sure that we strengthen our career health, making sure that every worker has a chance to be able to go through [a] diagnosis of their current status and what they need to improve.”
Recent data underscores the urgency of such measures. Fixed asset investment commitments in Singapore rose about 5.2% to S$14.2 b in 2025, driven by manufacturing demand in semiconductors, AI, and biomedical industries. Yet job creation fell roughly 16%, highlighting how automation and AI are reshaping workforce demand.
A survey conducted by NTUC also showed that more than half of professionals, managers, and executives feel the need to upskill amid AI disruption.
Regarding business support, Goh described three company archetypes the committee hopes to assist through restructuring.
The first seeks growth through deeper specialization, technology adoption, or product repositioning across larger markets. The second may be open to reviewing business strategies and consolidating into more core and profitable sectors.
“There are no sunset industries here, but factors will change. Factors such as market sentiments, demand shifts, or even technology may render some parts of their business offering less relevant,” he said.
The third type is open to exploring overseas expansion.
Goh said the committee is examining solutions including enhancing support schemes for companies to embrace technology and facilitate regional growth. It is also looking at connecting companies with partners for business transition and providing advisory services on business health and broader industry trajectories.
