Retrenchment insurance idea worth pursuing as economy undergoes change
In “Retrenchment insurance idea populist, unsustainable” (April 19), the letter writer says that such a scheme would create a “dependency mindset” in our people. Yet, there is no evidence that such a statement is true.
In “Retrenchment insurance idea populist, unsustainable” (April 19), the letter writer says that such a scheme would create a “dependency mindset” in our people. Yet, there is no evidence that such a statement is true.
He asserts that such a measure has brought about the downfall of many Western economies. Again, there is no factual basis for such a conclusion. Countries like Germany and those in Scandinavia continue to be productive economies despite having such schemes.
Retrenchment benefits are not limited to the West. Japan and South Korea have them. Taiwan and Hong Kong have variations of such a policy for workers. Have these Asian peoples developed a welfare mentality that has led to their economies’ destruction?
Closer to home, experts agree with the idea of Singapore adopting an unemployment or retrenchment insurance scheme.
In her paper Employment Insurance: A Safety Net for the Unemployed, Dr Yap Mui Teng of the Institute of Policy Studies “endorses the creation of a safety net for Singaporeans in an environment where job security is no longer a certainty”.
Nanyang Technological University Assistant Professor Giovanni Ko says there must be a safety net “to help catch these people who will probably lose their jobs” as our economy continues restructuring (“Economists call for unemployment benefits as safety net for innovators”; March 30).
Even People’s Action Party Member of Parliament Lim Biow Chuan echoes the Singapore Democratic Party’s call for retrenchment insurance for Singaporean workers (“Make retrenchment benefits compulsory: Lim Biow Chuan”; April 6, Channel NewsAsia).
Mr Lim said in the Budget debate: “It would make the transition less worrisome if they are able to rely on some short-term retrenchment payment to tide them over for a few months whilst they find another job or undergo retraining.”
As retrenchments pile up as the economy undergoes a downturn, the idea of a nationally mandated retrenchment insurance scheme becomes more urgent. The SDP will continue to push for such a policy.