Singapore Recommends Tapping Older Workers Amid Labor Crunch

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Due to foreign manpower constraints, the measures aim to encourage businesses to better incorporate senior citizens into the workforce, says Singapore company setup specialist Asiabiz Services.

AsiaBiz Services - Singapore company formation consultancy

AsiaBiz Services - Singapore company incorporation consultancy

By re-employing senior citizens, companies help contribute to a social good, one that does not rely on cheap foreign workers - a contentious point in the current White Paper debate.

Amid the current labor crunch, several stakeholders have proposed tapping older workers to fill in industrial gaps. Singapore company formation consultancy Asiabiz Services recognises that the recommendations aim to create a win-win situation for companies as well as senior citizens who can still participate in the workforce. It also aims to help certain sectors wean off their dependency on cheaper and younger Singapore work pass workers for basic-skilled functions.

In spite of the national drive towards higher productivity, Associate Professor Tan Khee Giap, co-Director of the Asia Competitiveness Institute, said that employers should focus on increasing participation from senior citizens instead of pushing for productivity in older workers. He stressed that the safety of elder workers as well as their fair compensation should be prioritised over productivity aims.

In addition, the Labour Movement’s Deputy Secretary General and Senior Minister of State in the Prime Minister’s Office, Heng Chee How, urged tripartite partners to extend the re-employment age limit from 65 to 67 years old. During the period of re-employment, employers should not cut the salaries and benefits of their workers and are urged to compensate them fairly.

Mr. James Nuben, Head of Taxation at AsiaBiz Services supported these recommendations, recognizing that a more active engagement of senior citizens creates a win-win situation for various stakeholders.

“Getting senior citizens back in the workforce benefits companies. Instead of paying heftier foreign worker levies and waiting for work permits to be approved, they can instead tap workers who are already residing in Singapore and are physically able to take on the tasks required. In addition, senior citizens who are re-employed bring with them years of experience that could benefit and add colour to an organization. Hence, by re-employing senior citizens, companies help contribute to a social good, one that does not rely on cheap foreign workers - a contentious point in the current White Paper debate,” said Mr. Nuben.

"The social good extends to senior citizens as well. According to the White Paper on Population, 900,000 of Singapore’s baby boomers will retire in 17 years. This then should compel companies to allow silver generation workers to continue participating as active citizens before they retire. This also allows them to save more, enjoy human contact, remain active and contribute their skills before retirement. It is our sincere hope that more companies re-employ more senior citizens as we work towards a more dynamic Singapore,” affirmed Mr Nuben.

About Asiabiz Services
Asiabiz Services is a Singapore-based consultancy that offers business solutions for both local and foreign professionals, investors and entrepreneurs. Our areas of expertise include Singapore company setup, offshore company setup, accounting, taxation and other related corporate services. Asiabiz Services also provides Singapore work visa and immigration services for foreign professionals wishing to relocate to Singapore.

120 Telok Ayer Street, Singapore 068589
Phone: +65 6303 4614
http://www.asiabizservices.com

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James Nuben
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