As we celebrate May Day 2026, we recognise the invaluable contributions of workers across all sectors who have kept Singapore’s economy strong. Employers and workers alike have had to navigate an increasingly uncertain global environment, marked by geopolitical tensions, rising trade pressures, and rapid technological change. Amid these challenges, employers and workers have demonstrated remarkable resilience and adaptability. These collective efforts showcase the strength of our tripartite partnership, which continues to anchor Singapore’s progress in uncertain times.
Driving Singapore Forward through Tripartism
2 In 2025, Singapore’s economy grew by 5.0%, with a notable expansion of 6.9% in the fourth quarter. The manufacturing, wholesale trade and finance & insurance sectors delivered strong growth, supported by AI-related electronics demand and largely accommodative financial conditions. The labour market reflected this resilience, as total employment increased by 55,500, exceeding the gains made in 2024. Unemployment rate remained low at 2.0% and job vacancies exceeded the number of job seekers.
3 The better than expected economic and labour market performance reflects the fundamental resilience of Singapore’s economy, which is anchored by our unique model of tripartism, where employers, unions and the Government work closely together to shape manpower policies for both workers and employers. As a tripartite member of the Singapore Economic Resilience Taskforce, SNEF ensured that business feedback on the US tariff situation was conveyed promptly and facilitated direct engagement between the taskforce and SNEF members to foster assurance and business confidence at the start of the trade turbulence. This in turn helped businesses to weather the uncertainty and continue creating good jobs for our workers.
4 In addition, SNEF led the employers’ group in shaping the recommendations of the National Wages Council. This included providing meaningful wage increases for lower-wage workers while calibrating the wage recommendations for the broader workforce according to business performance.
5 While navigating the economic uncertainties, SNEF continued to support progressive employment practices and worked closely with the Ministry of Manpower (MOM) and the National Trades Union Congress (NTUC) to enable the passing of the Workplace Fairness (Dispute Resolution) Bill, completing the landmark legislation for fair and inclusive workplaces across Singapore.
Supporting Employers in Enterprise and Workforce Transformation
6 Looking to the future, the global economic environment remains uncertain and fluid. Geopolitical conflicts are creating new stress points for the global economy, contributing to higher energy costs and supply chain disruptions. Businesses face rising cost pressures, while workers continue to grapple with cost-of-living concerns. Yet, amid these challenges, new opportunities for innovation and growth are emerging. In this context, it is critical for tripartite partners to press ahead with efforts to support businesses and workers in adapting to change and seizing new opportunities.
7 This will require transformation across both businesses and the workforce. Jobs will evolve, and the reskilling and upskilling of workers will become increasingly important for businesses to remain competitive. Concurrently, it is more important than ever that employers redesign roles and plan out their workforce transformation to stay relevant in a changing environment. Tripartite efforts, such as the Career Conversion Programmes and the Enterprise Workforce Transformation Package, provide strong coordinated support to help workers and employers navigate this challenging transition together. These efforts will ultimately benefit both employers and workers.
8 At the same time, we must continue to support workers who may be displaced by these changes. SNEF supports the Economic Strategy Review’s recommendation to strengthen transition support for affected workers. We will work with MOM and NTUC to develop and implement targeted reskilling interventions, enhance career guidance and better job matching to support at-risk worker segments and occupations, and facilitate timely transitions into new jobs.
9 AI is reshaping industries and redefining the future of work, and it has understandably raised job security concerns among workers. When managed well, AI presents an opportunity to raise productivity and create better jobs. By driving responsible and scalable AI adoption across firms, tripartite partners can ensure that both employers and workers benefit from an AI-driven economic transformation. SNEF will continue to encourage employers to invest in AI and equip their workers with the skills to harness AI effectively, so that technology complements and augments workers’ capabilities, enhances their expertise and opens up higher value-added roles.
Building Inclusive Workplaces and Strengthening Human Capital
10 Singapore’s ageing population remains a long-term structural challenge that requires a coordinated, whole-of-society response. Through the Tripartite Workgroup on Senior Employment, SNEF is working closely with MOM and NTUC to develop practical solutions that will extend the productive longevity of our senior workers and encourage employers to provide more age-friendly jobs and workplaces. In line with this, SNEF will continue to drive Structured Career Planning conversations, as they help employers to develop and better engage their workforce with a longer horizon, while supporting workers in navigating career transitions as they age. In addition to the enhancement of senior employment, SNEF also aims to foster greater inclusivity in the workplace by enabling employers to create workplaces that support workers across different life stages. We will also continue to support a well-integrated foreign workforce to complement the local workforce, address manpower constraints and support business continuity in a tight labour market.
11 Strong HR capabilities are a key enabler of our tripartite agenda. As we embrace technological advancements, it is equally important for employers to invest in their people. Thus, SNEF is working with tripartite partners under the Tripartite Workgroup on Human Capital Capability Development to uplift HR standards and strengthen workforce capabilities across organisations. Professionalising HR and levelling up human capital capabilities will help to maximise workforce potential and help businesses build the agility to adapt and navigate disruptions.
Conclusion
12 As we face an increasingly uncertain global environment, Singapore’s strong tripartite partnership is more vital than ever. This May Day, SNEF reaffirms our commitment to working closely with the Government and the labour movement to shape the future of work for the good of our workers and our businesses. By enabling enterprise and workforce transformation, building inclusive workplaces and strengthening human capital, we can create an innovative and competitive economy that drives sustainable growth for businesses and good jobs for our workers for many years to come.
Happy May Day 2026!
