As we come together to celebrate May Day this year, we honour the invaluable contributions of our workers who have played a vital role in Singapore’s remarkable 60-year journey of nation-building. SG60 marks a significant milestone, not just for our nation, but also for all of us at the Singapore National Employers Federation (SNEF) as we commemorate our 45th anniversary.
Tripartism – True Test in Times of Uncertainty
2 Throughout our tripartite journey in charting economic growth, SNEF as the Voice for Employers, remains unwavering in our commitment to achieving win-win outcomes for both employers and workers. Our strong tripartite relationship with the Ministry of Manpower (MOM) and National Trades Union Congress (NTUC), built on trust and a shared vision of the future, has been the cornerstone for sustainable business growth and job creation in both good and challenging times.
3 As we reflect on 2024, Singapore achieved robust economic growth of 4.4%, a significant improvement from the 1.8% expansion in 2023[1]. This growth is particularly impressive amidst global economic uncertainties. The labour market remains resilient. In 2024, total employment (excluding migrant domestic workers) grew by 45,500, and the number of job vacancies continued to exceed the number of job seekers. More residents have also secured employment in higher-skilled sectors, such as Professional Services and Financial Services[2]. Through SNEF’s joint efforts with MOM and NTUC, we uplifted lower-wage workers through key initiatives such as the Progressive Wage Model, ensuring that everyone shares in our economic success.
4 Nevertheless, the road ahead is neither certain nor clear. Ongoing geopolitical tensions and trade restrictions around the world are pushing employers to rethink their strategies for growth and ways to raise the productivity of their workers. More workers are also voluntarily opting for gig, freelance and micro jobs, impacting the supply of skilled labour to businesses. To build an agile and more productive workforce, employers need to cast their vision beyond the immediate physical locale and seek out global talent to complement their local workforce. It is therefore imperative that Singapore remains open and welcoming to global talent who can help drive innovation and catalyse business growth. A complementary local and foreign workforce will help us better navigate the fast-changing and complex operating environment. We need to adapt swiftly to stay competitive or risk falling behind.
5 It is during these uncertain times that our strong tripartism spirit must continue to shine. We must come together to make necessary short-term trade-offs and long-term investments in business and workforce transformation to secure a brighter future for all. Through our collective efforts, we can navigate Singapore through the turbulent waters ahead, ensuring that the path forward continues to be both pro-business and pro-worker.
Transforming Our Workforce for the Future
6 To this end, tripartite partners must press ahead with transformation efforts for productivity growth. With our physical limitations and an ageing workforce, we must constantly innovate our policies and programmes to ensure that our workforce continues to be highly skilled and adaptable to change. In particular, the adoption of AI into the workplace is rapidly transforming both businesses and jobs. This has inevitably caused discomfort and concerns among workers about being displaced.
7 However, as employers, we believe that the reality can be much more optimistic. Automation and GenAI are transformative tools that enhance productivity and innovation. AI allows workers to handle routine and manual tasks more efficiently, enabling them to focus their time and energy on higher value-added activities such as decision-making, strategic thinking and innovation. Both employers and workers should embrace and invest in technology to streamline processes and improve productivity. Tripartite partners should also support employers and workers in improving career planning and embracing lifelong learning to continuously upskill and reskill. SNEF will work closely with MOM and the NTUC to provide the necessary financial and programmatic support for both employers and workers.
8 Over the next decade, a key challenge is our ageing workforce. In other economies, ageing populations are often a drag on economic growth. However, Singapore can prove to be the exception. The upcoming Tripartite Workgroup on Senior Employment and Alliance for Action on Empowering Multi-Stage Careers for Mature Workers are timely initiatives where unions, employers, and the government will come together to design solutions that will better tap into the potential and wisdom of our senior workers. SNEF will strongly support these efforts with a view to developing effective policies that expand job opportunities for senior workers while enhancing workforce flexibility and productivity. This collaborative effort will lead to practical long-term strategies that address labour shortages and improve employment outcomes for seniors.
Ensuring Workforce Flexibility and Fairness
9 As employers, we must also respond to the changing profile and aspirations of our workers. Today, workers are better educated, and many seek the space and time to balance between their personal commitments and career aspirations. At SNEF, we aim to support employers in building more progressive workplaces where flexibility and productivity growth can coexist. This is why SNEF was a contributing party to the Tripartite Guidelines on Flexible Work Arrangements. We believe there should be a framework for employers and workers to work out mutually agreeable arrangements that accommodate the diverse needs of workers, such as caregivers, young parents, and seniors while ensuring that the productive capacity is not compromised. Although the business community initially expressed reservations over the guidelines, we have shown that it is possible to find a balanced and practical implementation path through our collective efforts. SNEF will continue to offer practical guidance to help employers effectively manage flexible work arrangement requests and build future-ready workplaces for all.
10 At SNEF, we also want to reiterate our commitment to ensuring workplace fairness in Singapore. We have worked closely with MOM and the NTUC on developing the Workplace Fairness Legislation (WFL) because we believe that it is in the long-term interests of both employers and workers to ensure fair employment practices. Employers that embrace diversity and inclusion benefit from stronger talent attraction and retention. At the same time, workers would feel more assured about a fair and harmonious work environment and therefore more welcoming of global talent who can drive business growth. SNEF will continue to engage employers on the WFL to ensure that its eventual implementation fosters fair and inclusive workplaces for everyone.
Conclusion
11 On May Day 2025, we celebrate the achievements of both workers and unions and reaffirm employers’ commitment to shaping a brighter future of work. Over the years, our partnership with the labour movement enabled us to weather economic storms and emerge stronger from past crises. While economic uncertainties loom on the horizon, new opportunities are also emerging. Our tripartite partnership is more vital than ever in shaping labour policies that are both pro-business and pro-worker. On this May Day, I congratulate the brothers and sisters in the labour movement on their past achievements and look forward to our continued strong relationship in building an innovative and competitive economy for the benefit of all businesses and workers.
Happy May Day 2025!
