President Halimah Yacob: Tripartism and Social Dialogue Key to Tackling Economic Challenges

Tripartism and social dialogue will form the key pillars of Singapore’s economic and social policy planning moving forward, said Singapore President Halimah Yacob.

She was speaking at the opening of the International Labour Organization’s (ILO) 17^th Asia and the Pacific Regional Meeting, held on 6 December 2022 at Raffles City Convention Centre.

She said that tripartism and social dialogue are crucial in helping Singapore address three challenges facing the economy and the workforce.

These include uplifting lower-wage workers, increasing the pace of digitalisation, and the evolving nature of work.

On the importance of these two key pillars, Mdm Halimah shared that a high level of trust between the tripartite partners was why Singapore could swiftly tackle the challenges brought about by COVID-19.

The Government, unions and employers worked together during the pandemic to develop strategies to address economic issues. This led to coordinated efforts to ensure the nation implemented the measures effectively, she shared.

“The strong social dialogue between tripartite partners was instrumental in helping the Government target financial support where it was most needed,” she said.

Support for Lower-Wage Workers

Mdm Halimah also said lower-wage workers were disproportionately affected by economic disruptions and inflationary pressures compared to other income groups.

To help this group of workers, she shared that Singapore’s approach was through its adoption of the Progressive Wage Model (PWM).

The PWM, first mooted by NTUC in 2012, aims to increase workers’ wages by upgrading skills and improving productivity.

She said: “Our Progressive Wage approach provides a roadmap to raise lower-wage workers’ wages at a sustainable pace, avoiding job losses, which could hurt workers’ livelihoods.

“This is done by raising wages in tandem with productivity growth achieved through upskilling workers and transforming businesses.”

By 2023, the PWM will cover more than eight in 10 lower-wage workers.

The Momentum of Digitalisation

While the pace of digitalisation may have begun to slow, Mdm Halimah said that the “momentum of digitalisation will continue to grow”.

“This requires businesses to adjust their operating models and redesign jobs while workers need to reskill,” she said.

She added that upskilling and reskilling are increasingly necessary for individuals to thrive and that governments, employers and unions must help foster a culture of lifelong learning.

On how Singapore helps increase the adoption of digitalisation, she said: “The National Trades Union Congress and its affiliated unions support lifelong learning for workers by establishing Company Training Committees that deliver customised roadmaps for workforce development in participating companies, while the Singapore National Employers Federation supports employers in job redesign through various government grants such as the Productivity Solutions Grant.”

Work Continues to Evolve

Mdm Halimah said that the pandemic had hastened the evolution of work.

Even though work remains integral, she said workers today are looking for more flexibility and better work-life balance.

She said: “The pandemic showed us that flexible work arrangements are viable … If [flexible work arrangements are] done well, these changes to how workplaces are organised can help improve work-life harmony, enhance mental well-being, and lead to higher productivity and engagement.”

The Future Remains Uncertain

Mdm Halimah added that the global economy experienced many setbacks in 2022.

Quoting International Monetary Fund Managing Director Kristalina Georgieva, the President said no one knows how long these shocks will last or if more are to come. As such, the world needs to “rebuild and preserve buffers and be prepared to use the full policy toolkit”.

She said: “This ILO Regional Meeting provides us with a platform to unite in dialogue to navigate the uncertainties that lie ahead of us …

“The work ahead for us will not be easy. But by standing together, we can transform adversity into opportunity and forge our path towards inclusive growth and a better future for all.”

Singapore Manpower Minister Chairs Meeting

The ILO’s 17^th Asia and Pacific Regional Meeting runs from 6 to 9 December 2022.

The meeting marks the first Asia and Pacific regional meeting for ILO Director-General Gilbert F. Houngbo since his appointment in March 2022.

The four-day meeting is chaired by Manpower Minister Tan See Leng. He is joined by his three vice-chairs: India’s Health and Family Welfare Additional Secretary Arti Ahuja, Singapore National Employers Federation Executive Chairman Robert Yap, and NTUC President Mary Liew.

The agenda over the four days focuses on economic and employment policies, legal frameworks and labour market institutions needed for the transition to formal employment, and strengthening of multilateral cooperation to achieve full and productive employment – just to name a few.

More details of the meeting can be found on the ILO website.