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Oral Answer to PQs on SkillsFuture Jobseeker Support scheme

NOTICE PAPER NO. 3041 OF 2024 FOR THE NEXT AVAILABLE SITTING

QUESTION NO. 6493 FOR ORAL ANSWER

MP: Mr Henry Kwek

To ask the Minister for Manpower whether recipients under the SkillsFuture Jobseeker Support scheme will benefit from other forms of short-term financial assistance from the Ministry of Social and Family Development or that provided at the constituency level.

NOTICE PAPER NO. 3049 OF 2024 FOR THE NEXT AVAILABLE SITTING

QUESTION NO. 6509 FOR ORAL ANSWER

MP: Mr Liang Eng Hwa

To ask the Minister for Manpower (a) what are the basis and considerations in the design of the SkillsFuture Jobseeker Support Scheme; (b) how will the assessment be done as to whether individuals applying to the scheme meet the conditions required; and (c) whether there will be avenues for appeals.

NOTICE PAPER NO. 3057 OF 2024 FOR A SITTING ON OR AFTER 10 SEPTEMBER 2024

QUESTION NO. 6566 FOR ORAL ANSWER

NCMP: Ms Hazel Poa

To ask the Minister for Manpower what is the rationale for (i) giving permanent residents the same benefits as Singapore citizens under the SkillsFuture Jobseeker Support Scheme (ii) payments that are stepped down with time (iii) not extending support under the scheme to workers earning above $5,000 per month but with dependants like children and (iv) excluding those who have received such assistance in the last three years.

NOTICE PAPER NO. 3060 OF 2024 FOR A SITTING ON OR AFTER 10 SEPTEMBER 2024

QUESTION NO. 6577 FOR ORAL ANSWER

MP: Mr Yip Hon Weng

To ask the Minister for Manpower with regard to the eligibility criteria for SkillsFuture Jobseeker Support Scheme (a) how does the Ministry arrive at the annual property value of $25,000 as one of the determining factors for lower- and middle-income workers; (b) whether consideration is given to include older workers who are not covered by the scheme because their properties from an inheritance or past purchases have now exceeded the valuation of $25,000; and (c) whether alternative support mechanisms will be considered for such cases.

NOTICE PAPER NO. 3067 OF 2024 FOR A SITTING ON OR AFTER 10 SEPTEMBER 2024

QUESTION NO. 6585 FOR ORAL ANSWER

MP: Mr Gan Thiam Poh

To ask the Minister for Manpower whether workers who are involuntarily unemployed can apply for and switch to the SkillsFuture Level-Up programme while they are concurrently being assisted under the SkillsFuture Jobseeker Support Scheme.

 

Answer

  1. Mr Speaker, may I have your permission to address two oral PQs, No. 9 and 10, on 9 September 2024. In addition, I will address three oral PQs scheduled for the sitting on 10 September 2024. Members have filed these PQs relating to the SkillsFuture Jobseeker Support (JS) scheme. I will respond to these five questions together, so that I can give a more holistic reply.
  2.  Mr Liang Eng Hwa asked about the basis and considerations in the design of the scheme. Prime Minister and I have shared the Government’s considerations in designing the JS scheme. Let me reiterate the key points.
  3. First, we wanted to create a better alternative to unemployment insurance. We have seen from other countries how unemployment insurance can make it more attractive for individuals to stay unemployed. We have also heard feedback from employers about rising business costs, and we do not want employers to offset the costs of an insurance scheme by cutting wages or by stopping the practice of retrenchment benefit.
  4. That is why we searched for a better alternative, to minimise the negative outcomes that we have seen elsewhere. Our objective is to support involuntarily unemployed individuals to rebound into jobs that better match and fit their skills and experience, instead of rushing into ill-fitting jobs due to financial pressures.
  5. But at the same time, from the Forward Singapore exercise, we have heard Singaporeans share that personal responsibility should remain a cornerstone in our social compact. Hence, the scheme should minimise the potential moral hazard by supporting jobseekers to regain employment and not continued unemployment. Jobseekers will need to play their part, to take responsibility for their actions and make an effort to bounce back into work. On the Government’s part, we will continue to strongly support jobseekers through employment facilitation and training programmes.

    Eligibility Criteria
  6.  I will next answer questions on who will qualify for the JS scheme. To Ms Hazel Poa’s question, we have targeted the scheme at the lower- to-middle-income worker earning up to $5,000 per month before becoming involuntarily unemployed. This is slightly above the median monthly income of resident workers and is the group that is more likely to face some financial pressures. With this income criterion, more than 6 in 10 residents who are involuntarily unemployed can benefit from the scheme.
  7. Mr Yip Hon Weng asked how the condition “residing in a property with an annual value of $25,000” was determined. Annual value is used as a proxy to determine households’ wealth for various Government support schemes that provide higher benefits to individuals or households with lower means. The threshold of $25,000 for the JS scheme is aligned with other schemes such as the GST Voucher scheme. This covers about 75% of residential properties, including all HDB flats.
  8. Mr Liang Eng Hwa asked how applicants’ eligibility will be assessed. All JS applications will be assessed via a system that comprises automated checks using available Government data and further verification checks done by a dedicated Workforce Singapore (WSG) team. For individuals who do not meet the eligibility criteria,  appeals will be assessed on a case-by-case basis.
  9. Ms Hazel Poa also asked why Permanent Residents (PRs) are eligible for the scheme alongside Singapore Citizens (SCs). This is no different from other employment facilitation programmes. For example, SCs and PRs receive the same support under WSG programmes such as career matching services and Career Conversion Programmes.
  10. I want to stress that Singaporeans will always be at the heart of government policies, even while we welcome those who can commit and contribute to Singapore. Our citizens receive the most support and benefit in several areas, including housing, healthcare, education and parenthood. But PRs have expressed their commitment to Singapore, and contribute to our strengths as a society and economy. Likewise, we should also support our PRs who fall onto hard times to get into good jobs so that they can support themselves and contribute to our economy.

    Payout Quantum
  11.  I will now move on to questions about the payouts. The payout quantum of up to $6,000 over six months is provided to eligible applicants who have demonstrated active job search efforts. Ms Hazel Poa asked why the payments are stepped down with time. We have designed the payout schedule to provide a higher payout in earlier months to provide greater upfront assurance to jobseekers. These payouts are gradually reduced from the second month onwards to incentivise jobseekers to start work earlier if they find a good-fitting job. We do not want them to delay their return into the workforce as it will diminish their employability. In addition, as the scheme is designed to encourage individuals to find a job with good fit and be retained in the job, those who have received payouts will not be able to make another application within three years of their last payout.
  12. I must emphasise that the total payout of up to $6,000 should not be viewed in isolation – it actually complements the Government’s broader ecosystem of support. Mr Henry Kwek had asked about whether beneficiaries of the scheme can also benefit from other financial assistance schemes. The answer is Yes. While the JS scheme is not designed as a form of social assistance for households with greater financial needs, beneficiaries are still entitled to receive support from the Government’s social assistance schemes where eligible, such as ComCare Short-to-Medium Term Assistance and the GST Voucher scheme.
  13. Similarly, to Mr Gan Thiam Poh’s question, beneficiaries of the JS scheme can concurrently qualify for the SkillsFuture Level-Up Programme that supports mid-career individuals to pursue substantive upskilling and reskilling, as long as they meet the eligibility criteria for all of these respective schemes. We encourage jobseekers to actively explore ways to upskill and reskill themselves to bounce back into better jobs.
  14. To conclude, Mr Speaker, the JS scheme marks a paradigm shift for the Government, and it reflects our commitment that we will always help and provide resources for those who step up and want to do more for themselves. The Prime Minister had said that a “major reset” is needed as we chart Singapore’s way forward. This is a reset in Government policies, and just as importantly, a reset of Singaporeans’ views and attitudes. We will regularly review the scheme to ensure that we provide necessary support to the involuntarily unemployed.