The recent budget announcement in Parliament by DPM and Finance
Minister Tharman Shanmugaratnam was probably one of the better budgets I have personally witnessed in terms of its goals, the clarity of its purpose, the breadth of its impact on the various sectors of society and economy and its boldness in tackling the challenges that Singapore will be facing (or is already facing) in the future.
Strengthening social security, boosting retirement savings for seniors, enhancing financial support for the lower tier of the aged, building a skills-based meritocracy and supporting and enhancing innovation and internationalisation efforts of Singapore companies – these are the main areas of Budget 2015. Providing financial support for these key areas will go some way into assuaging people’s concerns raised in numerous feedback and meet-the-people sessions over the last few years.
However, for this post I would like to focus on just one area which has drawn probably the most attention and discussion among Singaporeans thus far – building a skills-based meritocracy via the SkillsFuture initiatives.
The Budget 2015 unveiled a slew of incentives to:
a) encourage life long learning so that it does not remain a buzzword but it actually takes hold across the majority of our resident population through the SkillsFuture credit of $500 for each Singaporean above 24 years of age from 2016 onwards. Top-ups will be made at regular intervals thereafter
b) provide students with more assistance in discovering their strengths and interests by providing them access to specially trained Education and Career Guidance Counsellors from MOE and Polytechnics
c) support fresh graduates from polytechnics and ITE through the SkillsFuture Earn and Learn Programme. Graduates will be matched to companies in a 12-18 month programme with graduates getting a sign on bonus of $5000 and companies, grants of up to $15,000
d) support the aspirations of mid-career Singaporeans and executives through generous educational and training subsidies as well as SkillsFuture Study Awards and Fellowships
These incentives and support schemes look encouraging and I feel they go directly into tackling the wider systemic issues of the mismatch between the labour market and industry demands. Also the issue of the aspirations of an increasingly more educated workforce is being addressed albeit by requiring individuals to scale up in terms of their skills to match industry demands.
It is interesting that the SkillsFuture initiatives try to cover not just younger workers and professionals but older, mid-career ones as well.
But how effective these measures will be in actually producing tangible results on the ground is still left to be seen.
Acknowledging that no amount of grants and financial incentives can bring about a mindset shift, DPM Tharman called for a change in our economic and social culture as we are still very much a society that is ordered by academic results.
And this echoes what was pointed out in my previous blog, “ASPIRE-ring For A Brave New World” where I cautioned that a fundamental change in the way we approach education, work, career and ultimately, life, is needed if we want our society to be a skills-based meritocracy where every individual will have a chance to fullfil his/her potential by continually improving his/her skills and knowledge.
Lifelong learning is one aspect of the cultural change that is slowly taking shape but has yet to take hold like it has in other first world countries. Budget 2015 cited the example of Senthilnathan Manickam, aged 41.
“He graduated from Ngee Ann Polytechnic’s Film Sound and VIDEO COURSE
. After some years of working on corporate videos and TV programmes, he felt he needed to specialise, to differentiate himself from the field. He chose to specialise in high-speed cinematography, and is making a name for himself in the field in Singapore and abroad. As Senthil puts it: “There isn’t one path but many paths to achieve your dreams and be successful. Don’t give up. You always learn something new every day.”” (Source: http://www.singaporebudget.gov.sg/budget_2015/bib_pc.aspx)
Next, the issue of the industry and job market pricing university graduates higher than ITE and Polytechnic graduates. I can understand if its for entry level executive appointments. But for mid-level and higher executive appointments I feel that employers have to start looking at experience, skills attainted and character traits that fit with the job specifications.
DPM Tharman also conceded that ageism is a concern and said “I think we have to tackle ageism in Singapore. There is sort of a quiet, unstated discrimination among the mid-careers and those who are in their 50s. Mid-40s and 50s, it’s usually not so easy for them to get back in,”
We have to start building a job market based on skills and knowledge irrespective of age, gender, social, ethnic and religious background and less on purely academic standards.
But will employers make the mindset change? And will ITE and polytechnic graduates sign up for the much vaunted SkillsFuture Earn and Learn Programme to gain the skills that will be valued by industry?
While several ITE and polytechnic students have expressed interest in signing up for the programme several others have also voiced concerns that if employers’ fixation with academic qualifications remains, it would deter them from applying for the programme, according to a report from TODAY by Amanda Lee.
So if ITE and polytechnic graduates don’t bite at the Earn and Learn apple and employers become reluctant to invest in employees for fear that they will not stay, we have the makings of a vicious cycle where the stakeholders of SkillsFuture will remain unengaged, making little progress towards the stated goals.
This is where I hope employers will seize the initiative to break this cycle by taking a chance and a leap of faith that SkillsFuture will be effective in the long term. It basically necessitates a commitment by employers to invest in people; a commitment to develop, nurture and mentor their employees to show them that they have a stake in the company and that they are valued for their skills and contributions. I believe this commitment by employers will earn them a reciprocation of equal measure from the beneficiaries of their investment.
DPM Tharman summed it up nicely in this video clip taken from MediaCorp Channel 5’s Budget 2015 show, Ask The Finance Minister, where he coaxed employers to invest in people. I hope employers will take heed.
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