S$2.5b to be spent over 5 years on workers training

SINGAPORE: The drive for higher productivity will also mean raising the skills level of workers, especially older, low-wage workers.

And the government has earmarked S$2.5 billion over the next five years to expand the Continuing Education and Training system (CET).

It will also introduce a three-year Workfare Training Scheme as well as enhance the Workfare Income Supplement.

Finance Minister Tharman Shanmugaratnam said this when he presented the 2010 Budget Statement in Parliament on Monday.

40-year-old Woon Puay Guan has benefited from the Workfare scheme. He received about S$900 in payouts last year which helped him support his parents.

Mr Woon said: "My salary is very low. My mom doesn't work. (With the Workfare) I can give more money to my mother. My father stays in a nursing home, so I can use the money to pay for it."

Workfare, which started in 2007, acts as an incentive for low-wage workers like Mr Woon to stay employed.

From this year, the government is expanding the scheme, by an extra $100 million a year. In all, about 400,000 workers are expected to benefit.

Maximum payouts will go up by between S$150 and S$400, while the income ceiling will now be raised to S$1,700 - up from $1,500.

The government says this is to ensure Workfare benefits keep pace as workers upgrade their skills.

And efforts to develop a comprehensive skills upgrading system will take centrestage over the next few years. The government hopes to send the message that workers can continue to learn and add value to their jobs, whatever their age.

But for a start, incentives will be needed to get things moving. Under the new Workfare Training Scheme, subsidies for employers will cover 90 to 95 percent of course fees and manpower costs. Workers qualify for cash grants of up to $400 a year if they complete their training. The scheme is aimed at older workers, but younger recipients like Mr Woon may also apply.

Mr Woon said: "My education is very low, and my English is very poor. If can go and upgrade, it'll be better for me. Finding a job will also not be so difficult."

Mr Woon recently found a job as a cook, earning $1,200 a month - more than his previous salary as factory worker.

And with life looking up a little, he hopes to find the time for an English or computer class.

By Hoe Yeen Nie, Channel NewsAsia Posted: 22 February 2010 1655 hrs