​Schemes to raise workers' skills given a welcome boost

On Monday, Finance Minister Heng Swee Keat announced that new Professional Conversion Programmes (PCPs) relating to blockchain, embedded software and prefabrication will be launched. Since the establishment of the PCP in 2007, more than 100 PCPs have been launched in about 30 sectors.

From April 1, 2020, businesses have to commit to having transformation efforts that translate into positive outcomes for their workers in order to qualify for Enterprise Singapore's Enterprise Development Grant (EDG). These outcomes could, for instance, take the form of wage increases.

The EDG, announced during last year's Budget speech, provides small and medium-sized enterprises (SMEs) with up to 70 per cent in funding to take on projects that improve operational efficiencies and to internationalise.

The support level under the scheme was supposed to have dropped to 50 per cent after March 31 next year, but Mr Heng said on Monday that the enhanced support level will be extended till March 31, 2023.

Prof Trevor Yu from the Division of Strategy, Management and Organisation at the Nanyang Business School, pointed out that the new PCPs cover skills that cut across various industries such as financial services and advanced manufacturing.

"This means that focusing on converting and upgrading skill sets along these lines are likely to have a broader impact across various sectors of our economy," he said.

Jennifer Doherty, Asia head of innovation at HSBC, thinks it bodes well that there is greater emphasis for businesses of all sizes to integrate new technologies and processes into their operations. "The direction that the new PCPs are taking are especially encouraging, as we see the use of blockchain technologies and embedded software as being key areas of focus in the coming years."

Prof Annie Koh, vice-president for business development at Singapore Management University, believes that it is only right that as companies transform, workers get to reap the benefits, too. If a grant goes towards making work processes leaner and allows workers to have higher-quality roles where they work with tech, then it does not make sense to continue paying staff the same amount while pocketing the gains, she said.

Other moves to support workers were unveiled on Monday. The Productivity Solutions Grant (PSG) will include a new component that gives enterprises a subsidy of up to 70 per cent of their out-of-pocket training expenses, capped at S$10,000 per firm.

The PSG, unveiled last year, helps businesses adopt productivity solutions and technologies. Mr Heng said the grant's support level of up to 70 per cent will be extended for three years to March 31, 2023.

The Career Support Programme, which provides salary support for employers to hire eligible mature, retrenched Singaporeans, will be extended for two years till March 2021.

Over the years, the government has instituted a range of support measures for workers, including the Workforce Income Supplement and Special Employment Credit. Investments in supporting people in their careers reached more than S$1.1 billion in fiscal year 2017.

The percentage of residents in the labour force who participated in training grew to 48 per cent last year from 35 per cent in 2015. From 2016 to 2018, more than 76,000 jobseekers found employment through the Adapt and Grow initiative.

Key points

* New Professional Conversion Programmes relating to blockchain, embedded software and prefabrication

* Enterprise Development Grant extended for three more years; firms must now commit to positive outcomes for workers

* New component under Productivity Solutions Grant to help cover training expenses

Source: The Business Times, 19 February 2019