Parliament passes Bill to create new jobs and skills agency merging WSG and SSG

A Bill passed in Parliament on 5 May has set out the legislative framework for the new Skills and Workforce Development Agency (SWDA), marking a major restructuring of Singapore’s jobs and skills ecosystem.

The new statutory board will merge Workforce Singapore (WSG) and SkillsFuture Singapore (SSG), bringing together employment facilitation and skills development under a single agency. It is expected to be established in the third quarter of the year.

Speaking during the second reading, Manpower Minister Tan See Leng said the agency would focus on “serving individuals and employers, and better partnering the broader ecosystem of providers of career and employment services and training”.

The Bill was first tabled on 8 April, following an announcement during the Budget statement by Prime Minister and Finance Minister Lawrence Wong that WSG and SSG would be combined.

SWDA will be jointly overseen by the Ministry of Manpower and the Ministry of Education, with WSG’s current chief executive Dilys Boey set to take on a similar leadership role in the new organisation.

Rationale for merging workforce agencies

Both WSG and SSG were formed in 2016 after the restructuring of the former Workforce Development Agency.

At the time, WSG focused on strengthening employment facilitation, while SSG worked closely with institutes of higher learning to drive the SkillsFuture movement.

Dr Tan said the earlier restructuring had “substantially delivered what it set out to do”, but added that global conditions had since changed significantly.

“Over the past 10 years the world around us has shifted, and the next 10 years will certainly not resemble the last 10,” he said.

He pointed to technological advances occurring at an “unprecedented pace” and geopolitical shocks reshaping the global economy in ways that were difficult to anticipate a decade ago.

Against this backdrop, the merger is intended to “stay ahead of change” by combining the strengths of both agencies.

Dr Tan said the new structure would provide Singaporeans with a single touchpoint for career guidance, skills training and job matching support. He added that the agency’s name reflects its mission to “develop Singapore’s human potential”.

Support across different life stages

According to a MOM factsheet, SWDA will support workers throughout their careers, extending beyond assistance during periods of unemployment or transition.

Fresh graduates will benefit from attachment and traineeship programmes developed with employers to provide practical experience and exposure to industry.

Those uncertain about their career direction will receive guidance to identify pathways aligned with their aspirations and values.

Mid-career workers, including those facing retrenchment, stagnation, or returning from caregiving responsibilities, will have access to enhanced career guidance, job matching and reskilling opportunities.

This support will be supplemented by expanded partnerships with private career service providers and employer networks to widen access to job opportunities.

For senior workers, SWDA will collaborate with employers and human resource professionals to develop solutions supporting longer, multi-stage careers. This includes promoting age-inclusive workplaces and jobs.

These efforts form part of broader initiatives under the Tripartite Workgroup on Senior Employment, which is working towards a more integrated approach to extending working lives.

Supporting employers and ecosystem partners

Beyond workers, SWDA will support employers navigating workforce transformation.

Dr Tan said the agency would leverage skills intelligence and labour market data to provide deeper insights into evolving workforce needs.

This is expected to enable more targeted training and help businesses access and develop talent, alongside support in job redesign and capability development.

The agency will also strengthen the wider ecosystem of career and employment service providers, including recruiters, career coaches and job platforms.

This will involve raising standards, improving access and encouraging innovation.

Dr Tan cited pilots under the Alliance for Action on Advancing Career and Employment Services as examples of initiatives that could lead to new programmes.

“More importantly, through these pilots, we are discovering together the strengths of our ecosystem today and opportunities to take it to the next level tomorrow,” he said.

Parliamentary debate raises concerns

Members of Parliament broadly supported the Bill but raised questions about its implementation and long-term effectiveness.

Workers’ Party MP Gerald Giam supported the merger, noting that it could reduce silos between training and employment services and improve data integration.

However, he cautioned against the risk of creating new internal silos within a larger organisation.

He also called for clearer measures of success, suggesting key performance indicators such as training subsidies linked to employment outcomes, enrolment in courses for shortage occupations, and time taken for jobseekers to secure employment.

Concerns about accountability and coordination across agencies were also raised.

Sengkang GRC MP He Ting Ru pointed to data from WSG’s 2024 annual report showing that about 40,000 local workers secured jobs through career-matching services.

She questioned whether these placements matched jobseekers’ skills and qualifications and called for studies on retention rates among participants in programmes such as the Career Conversion Programme and Graduate Industry Traineeships Programme.

She also raised concerns about whether employers might use such schemes as a “revolving door of government-subsidised labour” instead of offering permanent roles.

Focus on job redesign and employer accountability

Non-Constituency MP Eileen Chong argued that greater emphasis should be placed on job redesign to better connect skills training with employment outcomes.

She highlighted gaps in skills-based hiring and questioned whether existing frameworks remain relevant in the age of artificial intelligence.

“If we invest in upskilling workers but do not change what they come back to… then we have not transformed anything,” she said.

She asked whether SWDA would be adequately resourced and empowered to drive job redesign at scale.

Aljunied GRC MP Kenneth Tiong also raised concerns about whether Singapore’s skills system is effectively building real capabilities beyond formal credentials.

He pointed to issues within the SkillsFuture credit system, including fraud cases, low participation in some schemes and weak links between training and employment outcomes.

He described these as structural challenges and called for stronger employer accountability in workforce training.

 

Government response and defence

In response, Dr Tan defended the SkillsFuture ecosystem, emphasising that it is a shared responsibility among workers, employers and training providers.

He said co-payment requirements ensure “skin in the game”, encouraging stakeholders to make deliberate decisions about training.

He stressed that this ecosystem approach would remain central under SWDA.

Addressing concerns about job redesign, Dr Tan said the agency would expand initiatives such as tools to assess workforce readiness and grants tied to job redesign outcomes.

He highlighted the importance of aligning training with workplace needs, noting that customised, on-the-job training could help workers move into higher-value roles.

On coordination, he said existing inter-agency mechanisms would be strengthened.

“This is not a two-headed monster. This is a two-horse chariot pulling in the same direction,” he said, referring to joint oversight by the manpower and education ministries.

Measuring success and future direction

A key issue in the debate was how the success of SWDA would be evaluated.

Dr Tan said primary indicators would include “time to placement” and “wage growth”, alongside existing metrics such as training participation and job placement figures.

He added that the ultimate goal is to help Singaporeans “enter good jobs and progress in their careers”.

The Government also plans to track employer behaviour, including adoption of job redesign, skills-based hiring and structured training practices.

New tools such as the Singapore Opportunity Index are intended to provide greater transparency on employers’ track records.

Dr Tan cited data showing strong outcomes from Career Conversion Programmes, including high retention rates and wage improvements.

He added that SWDA would contribute to broader economic goals, including sustaining wage growth, fostering an inclusive labour market and embedding a culture of lifelong learning.

Technology and job matching improvements

The role of technology featured prominently in the discussion.

Dr Tan outlined plans to use artificial intelligence and integrated labour market data to improve job matching.

Enhanced tools such as skills passports and digital career platforms are expected to better align jobseekers’ capabilities with employer demand.

MPs press Government on job matching quality and training incentives

WP MPs raised further concerns about the effectiveness and integrity of Singapore’s job matching and workforce policies. 

Kenneth Tiong questioned the authenticity of job listings on the MyCareersFuture portal, noting a “widespread perception” that some postings serve as compliance exercises rather than genuine hiring opportunities. He asked how the Government would ensure listings reflect real vacancies.

Tiong also revisited the issue of sectoral bargaining, arguing that firms may underinvest in training due to poaching risks, and suggested wage compression through sector-level bargaining as a possible solution. He sought clarity on whether the Government sees such bargaining as necessary.

In response, Dr Tan said he was not aware of data supporting claims that postings are merely for compliance, and urged MPs to provide specific examples for investigation rather than making general assertions.

On poaching risks, he offered a contrasting view, stating that firms investing in workforce training often see better retention and are more attractive to talent.

Drawing on private sector experience, he added that while poaching exists, it does not undermine entire industries.

Giam asked how SWDA would enhance job search assistance, specifically whether career services would move beyond basic résumé help towards proactive, data-driven matching and candidate advocacy.

Dr Tan said the agency would leverage integrated labour market data and AI tools to enable more precise matching, supported by skills passports and digital platforms, with the aim of shortening job search times.

NCMP Eileen Chong called for broader tracking of outcomes across all SkillsFuture participants, not just selected programmes, to improve transparency.

Dr Tan responded that SWDA’s integrated intelligence function would provide forward-looking skills insights and expand access to career guidance, while new grants would tie employer support to job redesign outcomes.