Government to unveil more details of scheme in anticipation of further layoffs
Deputy Prime Minister Lawrence Wong on Friday revealed that the government is developing a "temporary financial support scheme" in anticipation of further layoffs in the wake of technological changes.
Wong, who is also finance minister, acknowledged in his Budget speech the struggle of losing a job, including feeling pressured to rush in the first job available, even if it isn't a good fit.
"Therefore, we will do more to support this group of workers," Wong said. "In particular, we will introduce a temporary financial support scheme for the involuntarily unemployed, while they undergo training or look for better-fitting jobs."
The minister said the scheme must be designed carefully, including the quantum of support and the conditions that come with it, to avoid pitfalls that other countries experienced in introducing unemployment benefits.
"We are working out the parameters for the scheme, and we will provide more details later this year," Wong said.
Layoffs in Singapore
The announcement came as retrenchments in Singapore more than doubled in 2023, largely due to reorganisation or restructuring within firms.
Wong recognised in his speech that some businesses and industries may be suffering even if the economy as a whole is doing well, especially with technological changes that can cause a stir in it.
"In fact, it is not possible to have an economy that is dynamic and growing without failures and losses," he said.
He added that while some sectors would see new and better jobs amid these changes, some would have to let of its people.
"We have to accept this reality. But it doesn't mean we should be indifferent to the suffering caused when firms lay off their workers," he said.
Employers and employees alike across the world have been anticipating further layoffs this year amid concerns over global economic uncertainty.
In Singapore, e-commerce firm Lazada welcomed the year by laying off nearly 100 employees, involving mainly Professionals, Managers and Executives.
The retrenchments became controversial after Food Drinks and Allied Workers Union called out Lazada for not consulting them prior to the retrenchment exercise, prompting the e-commerce firm to extend an apology.
