"Develop Strategies for Managing Diversity and Inclusion for Business Resilience and Growth in order to harness the Second Demographic Dividend for Singapore."
Mr Richard Magnus, Chairman HCS Management Board
Mdm Ho Geok Choo, CEO, HCS
Distinguished Guests,
Ladies and Gentlemen,
Introduction
1. Good afternoon. Thank you for inviting me to join you at today's Masterclass.
2. The HCS series of Masterclasses for 2022 that discusses the concept of the Second Demographic Dividend is an important one. The idea is that countries can overcome the challenges of an aging population and shrinking workforce, by investing in the health and education of their people. It allows us to maximise the potential of our human capital over a longer lifespan. This is why the Second Demographic Dividend is also known as the "longevity dividend".
3. This theory is of great relevance to our context. It is no secret that Singapore has to grapple with an ageing population. In 2020, about 25% of workers were aged 55 and above. It is therefore of paramount interest for us to maximise our ability to tap on the "longevity dividend".
4. As today's topic suggests, we can do so by developing strategies for managing diversity and inclusion for business resilience and growth. Inherent in this area is a concept of maximising the contribution potential of our mature workers, who are a key part of our labour force, and creating the necessary environment for them to thrive in. It is an area where I think there is scope for us to do more.
The Role of Government Creating Conducive Environment
5. In Singapore, we have sought to help our mature workers stay economically active, putting in place schemes to support their employment and grow retirement assets. We also support mature workers through learning initiatives for individuals.
6. We have committed to extending the retirement and reemployment ages. Later this year, retirement and re-employment ages will shift to 63 and 68 respectively. By 2030, retirement age will be 65 with re-employment age at 70. In doing so, our mature workers will have assurance of an extended runway to earn, save for retirement and stay economically active, if they so wish.
7. At the same time, with SkillsFuture, we have been continuously strengthening our support for individuals to pursue skills mastery through lifelong learning, regardless of their starting point. These include the SkillsFuture Credit to encourage Singaporeans to take charge of their learning, a curated set of industry-relevant training programmes under the SkillsFuture Series, as well as a range of reskilling programmes targeted at mid-career workers aged 40 and above.
The Role of Business in Maximising Workforce Potential
8. With the rapid digitalisation of the economy, jobs and skills are quickly and continuously evolving. The COVID-19 pandemic has accelerated the pace of digitalisation, with many working remotely and technology tools becoming a mainstay in most work aspects. Hence, it is no longer enough for our workforce to just be proficient in their respective areas of specialisation. Increasingly, it is becoming necessary for them to also acquire broader digital skills and soft skills such as resilience and adaptability.
9. Although skills acquisition is ultimately an individual endeavour, the role that businesses play in upskilling our workforce cannot be understated. The support of employers is absolutely crucial for their workers to pursue effective and purposeful training. This is why the government is committed to working closely with employers and enterprises to support Singaporeans in their lifelong learning journey.
10. We have introduced various initiatives designed to encourage enterprises to step up their investment in upskilling their workforce. As part of the Next Bound of SkillsFuture announced in 2020, we launched the SkillsFuture Enterprise Credit (SFEC), which provides $10,000 to help employers pursue enterprise and workforce transformation, including skills upgrading and job redesign. I encourage you to put this to good use in building up the skills of your workforce, in your pursuit of business transformation.
The Need for Business Transformation
11. To thrive in the future economy, companies have to push the envelope and commit to innovation and business transformation. However, the success of these efforts will hinge on how well the plans are executed. Employees must be equipped with the necessary skills to implement new business models. Hence, spending on worker upskilling is really an investment in business growth for the future.
12. In particular, there is much potential for us to take the contributions of our mature workers to the next level. We must recognise that mature workers, with their rich industry experience and expertise, can contribute effectively to our economy. We should embrace the multigenerational workforce by recognising the contributions of all employees – older workers bringing their wisdom and life experiences and complementing the skills of younger workers who are often more technologically savvy and possess newer skills.
13. In the recently published SkillsFuture Singapore's Skills Demand for the Future Economy report, three emerging and high-growth areas – the digital economy, the green economy, and the care economy – were identified. Within each, a series of priority skills were highlighted. These include hard skills like data analytics, practical knowledge on environmental sustainability like carbon footprint management, and softer skills like stakeholder management and inclusive practices. Undergirding these functional skillsets are critical core skills such as critical thinking, effective communication and learning agility. These skills will help workers keep up with the rapidly transforming business environment, and in turn, support businesses to perform better. I encourage employers to pro-actively put in place the necessary systems and structures to help every worker acquire these critical core skills.
HCS FOLO & Rhodium Partnership
14. Beyond individual advancement, we can also build on the skills of one another, sharing and transferring expertise to meet new business opportunities. During the Circuit Breaker back in 2020, HCS acted swiftly to make the transition to online learning. It formed a partnership with Faber Image Media's AV consultancy, Rhodium. This brought together HCS' training content and Rhodium's media production, culminating in the establishment of the HCS FOLO – Rhodium Studio. FOLO stands for Future Oriented Learning Online, which encapsulates what the studio is meant for. This studio is where I am speaking to you right now.
15. Today, I have the pleasure of witnessing the signing of an MOU between both firms, affirming their joint desire to innovate and transform their business models by tapping on each other's strengths. I will also have the honour of launching their "Learning on Demand" platform, which will feature as its first production the HCS-WSG Critical Core Skills Masterclass Series 2021.
16. My heartiest congratulations to HCS and Rhodium on this milestone.
Conclusion
17. HCS and Rhodium have shown us how we can join hands to transform, thrive and do better. In partnering one another, we can ensure business resilience and unlock new potential.
18. The same spirit of partnership must underpin our efforts to strengthen the employability of our workforce and enhance the sustainability of Singapore's economy. To reap the longevity dividend, we must all work together. Individuals should take charge of their learning and upskill; businesses should create positive learning environments as they transform; and the Government should build a conducive environment that provides the supporting structures for these pursuits. In this way, we can continue to thrive economically and socially, creating a better future for ourselves, our loved ones, and our country.
19. I wish you a fruitful learning experience at today's Masterclass.
20. Thank you.