In the 2024 Budget statement, Deputy Prime Minister Lawrence Wong announced that the government will be introducing a temporary financial support scheme for retrenched workers. This decision comes after the number of retrenchments in 2023 more than doubled from the previous year, with 14,320 workers being laid off.
The new scheme aims to provide financial support to those who are involuntarily unemployed while they undergo training or search for jobs that are better suited to their skills and experience. However, DPM Wong emphasized that the scheme must be designed carefully to avoid the pitfalls that other countries have experienced with unemployment benefits.
One of the potential pitfalls that DPM Wong highlighted is the risk of workers feeling pressured to take the first available job they find, even if it may not be a good fit. By providing financial support, the government hopes to alleviate some of the pressure that retrenched workers may feel, allowing them to take the time they need to find a job that is more suitable for their skills and experience.
While details of the scheme are still being finalized, DPM Wong assured the public that more information will be announced later this year. The government remains committed to supporting workers who have been affected by the economic downturn and will continue to explore ways to help them get back on their feet.