Challenges for the Singapore Workforce

Transcription

1 Challenges for the Singapore Workforce ELP, 16 April 2015 Lim Tze Min, Deputy Director, Strategy Management A Great Workforce A Great Workplace

2 Coverage 1. How foresight fits into MOM s planning 2. Some challenges are clearly defined... What we re planning to do about those But we don t know enough about how some other challenges will turn out

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4 Foresight is an integral part of Strategic Planning at MOM Good planning requires us to look ahead and see the future clearly Futuring helps us to: Challenge assumptions and open minds to what is possible so that we aren t blind to warning signs Identify emergent risks so we have more time to prepare We constantly expose management to futures thinking and trends

5 Some challenges are clearly defined 5

6 Singapore faces some inevitable realities Growing needs, limited land Low birth rate A rapidly aging society 6

7 We must continue to find the right balance within our constraints Facing these... How do we... Slower Foreign Worker inflow Tight labour market Ageing Workforce Stay attractive to talent and investment? Better prepare our workforce? Support retirement adequacy? 7

8 What steps are we taking? 8

9 Key Steps Ahead 1. Good jobs continue to be created and located in a dynamic Singapore Singaporeans must develop the capabilities to compete for these good jobs 2. Improve the retirement adequacy of Singaporeans 9

10 Established and Emerging Industries that will continue to provide good jobs Export-driven economy Global financial hub World-class port Oil trading hub Global electronics hub Medical tourism hub Logistics and supply chain Transport hub 10

11 Example of an emerging industry: Smart and Sustainable Cities There will still be a wide array of jobs available for Singaporeans

12 But Singaporeans must have the future skills to compete for these good jobs Relate to people Work in a digital age Combine disciplines Thinking hands

13 We will continue to invest in our human capital Education makes up 20% of Singapore government expenditure, higher than the OECD average of 13% Government will continue to subsidise the majority of Continuing Education & Training course fees. 13

14 SkillsFuture: Advancing a comprehensive national vision for skills Help individuals make wellinformed choices in education, training and careers Promote employer recognition and career development based on skills and mastery 4 Develop an integrated, high quality system of education and training that responds to constantly evolving industry needs Foster a culture that supports and celebrates lifelong learning Across the workforce covering all educational backgrounds and sectors 14

15 CPF Advisory Panel - Guiding Considerations Adequacy CPF is one of two key pillars that support retirement adequacy Owning our homes means that we do not have to pay rent in old age and have an asset to draw on if necessary Focus of CPF to provide basic level of lifelong support in retirement should remain Especially important as Singaporeans have high and increasing longevity Flexibility Retirement needs vary with household income and circumstances Some additional flexibility could help cater to varying needs Simplicity Many do not have a good understanding of how the CPF system works to provide lifelong support in retirement Important to improve understanding and to keep policies as simple as possible, as more flexibility is introduced 15

16 A short interlude How much do you think you need to spend in retirement, per month?

17 Flexibility To put in more Option to top up to Enhanced Retirement Sum for higher payouts... To increase payouts Can start payouts later Can top up spouse s CPF... To meet urgent needs Can withdraw up to 20% at age 65 (for those who turn 55 from 2013 or later)

18 Simplicity More certainty Cohorts turning 55 from 2016 will know their Basic Retirement Sums ahead of time Property Pledge Rules Simplified Some members will no longer have to pledge their property to withdraw CPF money above the BRS Provide help to plan retirement CPFB to make available oneto-one retirement planning service to help CPF members Pilot in 2H2015

19 Adequacy Higher CPF contributions Increase in CPF contribution salary ceiling from $5000 to $6000 Older workers aged 50 to 65 will have 1% higher contribution rates Better returns for lower-balance members For 55yo+ members, 1% additional interest on first $30,000 of CPF balances Enhanced Support for the Elderly Silver Support Scheme An income supplement of $300 to $750 per quarter to 20-30% of elderly Singaporeans aged 65 and above, with lesser means in their retirement years

20 Branching Paths 20

21 How can we adapt to a changing world? By 2020, each cohort will have 40% Degree holders and 45% Diploma holders US$1.38 per hour ~47% of US jobs are at risk of being replaced by robots Median hourly wage on Amazon s online marketplace (MTurk) for virtual jobs the workers can perform the task from anywhere in the world 21

22 What are young Singaporeans looking for in a job? 22

23 What are young Singaporeans looking for in a job? Pursuing passion Financial security / salary progression Job Security Work-life balance 23

24 Concerns voiced by some young Singaporeans... I don t know what to do with my life its very stressful.... I want to be free to choose a career which allows me to discover my passions and pay well... I don t think my qualifications are enough I need to spend more time and money to upgrade.... I want a job that is not routine, peopleoriented, able to provide exposure and is meaningful. 24

25 How will automation will transform how we work? 25

26 How will employment relationships change? 26

27 Time to Discuss!