Budget Debate 2026: Labour MPs call for AI-ready pathways, stronger job transition support and inclusive workplaces

Eight Labour MPs spoke on 25 February 2026 in Parliament for Budget 2026.

At the same time, they also called for measures to support workers and families amid ongoing cost pressures and economic uncertainty.

NTUC Secretary-General Ng Chee Meng set out workers’ top concerns and the Labour Movement’s three priorities: Empower every worker to be AI-ready; strengthen support for workers vulnerable to disruption; and strengthen the Labour Movement’s ability to protect and uplift professionals, managers and executives (PMEs).

He framed Budget 2026 as pivotal. 

“The choices we make today will shape the course of our future, and the lives of our workers and families,” he said.

Mr Ng also urged the Government to strengthen efforts on three fronts:

• Empower every worker to be AI-ready
• Strengthen support for vulnerable workers who are at risk of disruption at the individual level
• Strengthen the Labour Movement’s ability to protect and uplift PMEs

In Prime Minister Lawrence Wong’s roundup speech, he agreed with Mr Ng’s three calls.

“We will work closely with our tripartite partners, especially NTUC, to realised these shared goals,” said Mr Wong.

Make AI upskilling practical with clearer pathways for every worker

Labour MPs called for clear, actionable steps for AI readiness.

Mr Ng noted that Singapore has more than 1,600 AI courses listed on the SkillsFuture course catalogue, and added: “For the average worker, it is not easy to know which course or pathway will genuinely help them become AI-ready.”

NTUC Assistant Secretary-General Melvin Yong said that the national AI approach should be more tailored.

Mr Yong said: “SkillsFuture must shift from being course-centric to being worker-centric… If we are serious about AI, let us use AI to empower every worker – not just those who are already digitally fluent.”

He suggested that SkillsFuture can be integrated with NTUC’s AI-powered Career Coach to deliver personalised training pathways at scale.

Labour Nominated MP Sanjeev Kumar Tiwari also highlighted the uncertainty many PMEs face about what to learn, noting that workers struggle to know what to upskill or reskill for.

He urged the Government to encourage companies to partner with the Labour Movement through NTUC’s Company Training Committees (CTCs) to prepare for the future of work.

Strengthen job transition assurance and support for PMEs and jobseekers

Labour MPs also focused on job transition support, including earlier intervention and more confidence-building help when disruption happens.

Mr Ng cited NTUC’s survey findings that almost 40 per cent of PMEs were anxious about whether they could keep their jobs beyond the next six months.

He called for stronger support for workers navigating job transitions.

He also called for more support for PMEs facing retrenchment, such as better baseline assurance for middle-income PMEs by reviewing the SkillsFuture Jobseeker Support Scheme (JSS) eligibility. He cited that only workers earning $5,000 or less per month are eligible today.

Mr Wong said that the Government take in the suggestions to review the income threshold for JSS.

“The JSS was launched only recently, about a year ago. So we will review the scheme and its parameters once we have more experience,” explained the prime minister.

NTUC Assistant Secretary-General Patrick Tay framed worker anxieties in the face of AI.

“Technology is moving faster than jobs. AI is advancing faster than wages … Economic growth is not always translating into worker confidence,” he said.

Advance retrenchment notice: Earlier intervention for workers at risk

Several speakers raised the need for earlier warning signals so workers and unions can respond before job loss happens.

Mr Ng reiterated his calls for advance notice of retrenchments.

He explained that advance retrenchment notifications support the Labour Movement’s ability to work with companies to provide timely and tangible support for affected workers before retrenchment, and “not five days post [retrenchment] where many of the workers may have left the company and are no longer contactable.”

Mr Sanjeev Tiwari emphasised that advance retrenchment notice preserves workers' dignity and reduces uncertainty, echoing Mr Ng’s call.

He added: “Early notification to unions is not a procedural nicety; it is the difference between proactive help and reactive damage control. Many unionised companies recognise this. They give unions advanced notice of upcoming retrenchment exercises, sometimes even months ahead.”

NTUC’s e2i Stakeholder Management Director Wan Rizal argued that transitions cannot be treated solely as administrative processes.

He also stressed that early engagements matter, adding: “Trust cannot be built at the point of retrenchment. It must be built before disruption happens.”

Mr Wan Rizal called on the Government to strengthen its commitment to continuing to work with the Labour Movement and to review and reinforce norms on early engagement and consultation regarding retrenchments.

NTUC Assistant Secretary-General Patrick Tay also called for advance mandatory retrenchment notifications, in addition to stronger penalties for non-compliance.

Mr Tay added that the Government could consider sharing information with NTUC and its unions on sectors and companies that may be disrupted by economic restructuring.

Following his speech, MP for Aljunied GRC Pritam Singh sought clarification from Mr Tay regarding the Singapore National Employers Federation’s (SNEF) reservations on NTUC’s advance retrenchment notice proposal.

In response, Mr Tay said that NTUC is in the midst of a tripartite negotiation to review the Employment Act.

“We are looking at this carefully to balance the interests of the respective tripartite partners.”

Mr Tay is a member of the tripartite workgroup.

Protect entry-level opportunities in an AI economy

Another shared concern was ensuring young workers still get good first jobs and progression pathways, even as AI changes how work is done.

In describing the risk of weakened career ladders, NTUC Deputy Secretary-General Desmond Choo said routine junior tasks used to be “the training ground”.

But he added: “Today, generative AI performs or could perform many of these routine cognitive tasks in seconds.”

Mr Choo proposed a three-pronged approach:

• Create structured apprenticeships
• Equip Students for advanced roles
• Accelerate reskilling

Mr Ng similarly underscored the importance of supporting young graduates into good first jobs to maintain workers' confidence amid disruption. He called on the tripartite partners to stand ready to step in and build on existing government measures, such as the Graduate Industry Traineeships (GRIT) Programme.

Mr Wan Rizal said that for young people, clarity on their careers must begin before they graduate.

He added: “This is why early career exposure and structured mentorship matter. Through platforms such as NTUC Youth, young members receive career guidance and industry exposure to help them navigate this first transition with greater confidence.”

Mr Wong responded: “We are alert to these risks and we will act early to prevent such outcomes from taking hold in Singapore. We will invest more deliberately and more systematically in our people.”

Sustain wage growth, especially for lower-wage workers

On wages, Labour MPs emphasised that as Singapore progresses, the Government needs to ensure that every Singaporean progresses as well.

Mr Yong credited the Progressive Wage Model (PWM) for outcomes over the past decade but cautioned against complacency.

He urged the Government to review the Progressive Wage Credit Scheme (PWCS) parameter and to include all sectors and occupations under PWM and Occupational Progressive Wages.

Mr Yong also called for an extension of the PWM Bonus to all PWM sectors.

He explained: “The PWM Bonus functions very much like an Annual Wage Supplement. It provides workers with an additional payment to cope with cost-of-living pressures. Today, it applies only to cleaning, lift and escalator, waste management, and landscape sectors.”

Build inclusive workplaces for women and persons with disabilities

Several Labour MPs spoke up on vulnerable workers, such as caregivers and persons with disabilities.

Mr Ng said that there is a need to refresh Singapore’s Caregiver Action Plan so that caregivers can remain at work, return to work when ready, and safeguard their financial resilience and retirement adequacy during periods of career disruption.

For persons with disabilities, NTUC Assistant Secretary-General Yeo Wan Ling said that she supports initiatives such as the SG Enable Enabling Mark, which recognises disability-inclusive employers.

But she added that the Enabling Mark must go beyond just being an award.

She said: “It must not remain something companies aspire to do just once a year. It must be normalised as a workplace standard with adequate funding and resourcing, embedded into hiring practices, job redesign, leadership KPIs, and organisational culture. Inclusion cannot be ceremonial. It must be operational.”

Ms Yeo said that NTUC will continue doing its part.

“NTUC has secured stronger protections against workplace discrimination, and I am glad that this helps to level the playing field for our working persons with disabilities.”

She added that NTUC is working with tripartite partners on a Tripartite Advisory on Reasonable Accommodations.

The advisory aims to provide guidance on best practices employers can adopt to make their workplaces more inclusive for persons with disabilities. Ms Yeo further called for clear guidance and appropriate funding for the upcoming advisory, so that employers can implement inclusive practices with confidence.

New workforce realities as Singapore ages

NTUC Deputy Secretary-General Desmond Tan said that even as Singapore and tripartite partners have been preparing for an ageing population for many years, workforce challenges remain.

Mr Tan highlighted challenges, including declining resident force participation and barriers to seniors remaining employed. He also mentioned the need to keep up with technological advances.

He articulated three priorities as Singapore navigates these challenges:

• Employers should continue developing flexible career options.
• Senior workers must also be able to contribute with dignity and without fear of discrimination.
• Continue to encourage employers to support and invest more in training and job redesign for mature workers and facilitate multi-generational workplaces.

Helping workers in a disrupted age

All eight Labour MPs spoke up on the need to build confidence among workers through clearer AI pathways, stronger and earlier transition support, and more inclusive workplaces, so that workers can adapt and progress with assurance.

Mr Ng said: “The Labour Movement will continue advocating for measures that support workers today and improve their prospects for tomorrow, whether it is: Helping young graduates into good first jobs; supporting PMEs to navigate career transitions, or ensuring caregivers can stay employed while caring for their families.”

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