MOM – Jobs Re-creation Program

Chairman Sir,

The Jobs Re-creation Program (JRP) aims to redesign jobs to make older workers more productive and hence higher paying. The Workforce Development Agency sets aside $40 million over three years in 2007 for this program.

Globalisation and Singapore’s rapid development into a more knowledge-based economy has resulted in less-skilled older workers finding employment opportunities more difficult. The current recession worsens the employment prospects of these older workers as even younger workers risk retrenchment when businesses downsize.

Therefore, it is important to scale up the JRP to sustained employment for older workers in these “re-created” jobs. Is the budget of $40 million over three years enough?

The NTUC’s website shows that the JRP has helped 43,484 workers from 2005 to July 2008. What is the number of workers to be helped in 2009? Are these Singapore Citizens or does it include permanent residents as well?

I would like to know what is the Government’s strategy in helping older workers in this economic down turn. Many of them have contributed to Singapore’s development from a third-world to first-world status only to find themselves unwelcome in the job market in our supposedly “Swiss” standard of living.

How does the Government reconcile the prospect of structural unemployment for this group of older less-skilled workers with the continued extension of the retirement age as well as increasing minimum sum amounts that limit many of these older Singaporeans to very little payouts at age 55?

(Note: this speech was delivered in Parliament on 13 Feb 2009.)