Employers in Singapore urge bold action to turn ageing population into economic gain

As Singapore prepares to confront the growing challenge of an ageing population, the Singapore National Employers Federation (SNEF) President Tan Hee Teck has called for bold, coordinated action to turn a potential demographic drag into an economic opportunity.

Delivering his May Day message, Tan acknowledged that ageing workforces have slowed economic momentum in many countries. However, he expressed confidence that “Singapore can prove to be the exception” by adopting progressive employment practices that expand opportunities for older employees and improve overall workforce resilience.

A key initiative on the horizon is the Tripartite Workgroup on Senior Employment, set to launch later in 2025. The group will bring together unions, employers, and the government to explore ways to boost the employability of senior employees. As a first step, it will establish the Alliance for Action on Empowering Multi-Stage Careers for Mature Workers, aimed at engaging employers in solutions that better align jobs with the evolving needs of older employees.

Tan highlighted that enabling longer and more flexible career pathways will be crucial in sustaining economic competitiveness. “As employers, we must also respond to the changing profile and aspirations of our workers,” he said, citing the increasing importance of inclusivity and flexibility in the workplace.

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He also reaffirmed SNEF’s role in supporting employers in building progressive and fair workplaces. This includes contributing to major policy initiatives such as the Tripartite Guidelines on Flexible Work Arrangements Requests, which came into effect on 1 December 2024. The guidelines provide a formal process for both office and non-office employees to request flexible work arrangements.

“Although the business community initially expressed reservations over the guidelines, we have shown that it is possible to find a balance and practical implementation path through our collective efforts,” he said.

Tan also sounded a note of caution amid persistent global headwinds, including geopolitical tensions and rising protectionism. As a member of the national task force addressing the impact of US tariffs, he urged employers to rethink productivity strategies and brace for continued uncertainty.

Labour market shifts are also accelerating, with more employees voluntarily pursuing gig, freelance, and micro jobs. This trend, Tan warned, may strain the supply of skilled labour. To stay competitive, he encouraged organisations to complement the local workforce by tapping into global talent pools that can drive innovation and support business transformation.

And on AI, Tan acknowledged the concerns many employees have about job displacement. However, he emphasised that the outlook need not be bleak. As employers, the reality can be much more optimistic, he said, urging organisations to embrace AI and invest in technology that enhances productivity and simplifies processes.

“Through our collective efforts, we can navigate Singapore through the turbulent waters ahead, ensuring that the path forward continues to be both pro-business and pro-worker,” he said, reported The Straits Times.