SINGAPORE, Aug 20 — In the second of a weekly report on the job market in Singapore, the Ministry of Manpower (MOM) said today that:

• From March to the end of July, some 6,300 employers have submitted notifications about cost-cutting measures
• These measures affected some 224,800 workers 

MOM said these cost-saving measures are alternatives to retrenchments, which should be the last resort for employers. The numbers do not include retrenchments. The top three cost-saving measures implemented were: 

• adjustments to monthly salary components
• no-pay leave
• shorter work weeks 

About half of the affected workers are from three sectors: 

• 52,600 from the accommodation and food services sector
• 42,000 from the construction sector
• 23,800 from the wholesale and retail trade sector 

Local employees — Singaporeans and Permanent Residents — made up slightly less than half of all employees affected, MOM said.

The Jobs Situation Report also showed that the volume of notifications in cost-saving measures by firms peaked during the circuit breaker period, but has since decreased significantly. 

The number of such notifications in the past four months were:

• April: 83,000
• May: 38,600
• June: 34,400
• July: 22,800

"This suggests that companies were making concerted efforts to hold back retrenchments, likely encouraged by the broad-based supper measures provided by the Government,” said MOM. 

"Based on MOM and Tafep’s (the Tripartite Alliance for Fair and Progressive Employment Practices) engagements, employers have generally been responsible and implemented cost saving measures fairly,” MOM added. 

While cost-saving measures outlined in the Tripartite Advisory are recommended alternatives for retrenchment, job losses will still happen with the mounting pressure in business due to the Covid-19 pandemic, MOM said. 

For retrenched workers, the Taskforce for Responsible Retrenchment and Employment Facilitation will continue to render support and match workers to "new opportunities in growth sectors”, it added. 

Startups as a source of jobs

MOM highlighted startups as a source of jobs, with the report showing that to date, 1,600 startups have come on board the SGUnited jobs and skills programmes.

Together, they are offering more than 4,600 jobs and 860 traineeships or attachments to local jobseekers. 

Speaking at an event showcasing startups, Manpower Minister Josephine Teo said today that "some may have the misconception that startups pay below the industry norm — that is not true.” 

For instance, MOM noted, the top five roles in startups and the median salaries offered are:

• Software Developers (S$6,000 or RM18,380)
• Chefs (S$5,250)
• Engineering professionals (S$4,000) 
• Sales, marketing and business development managers (S$4,000)
• Administrative and related associate professionals (S$2,700). 

Teo added that another misconception is that the startup scene is "filled with young entrepreneurs.” 

"In general, many of the roles are entry level, but that does not mean that mid-career individuals cannot thrive in startups,” she said. 

Between April and June this year, around 330 jobseekers have joined startups with support from the SGUnited Jobs and Skills Package. 

Of these, about half were mid-career individuals who took part in Professional Conversion Programmes. 

Host companies hosting the SGUnited Traineeships programme have started to take in trainees in June, with about 150 fresh and recent graduates having since entered the startup scene through the programme, MOM added. 

Support for budding entrepreneurs

Also today, Enterprise Singapore (ESG) announced enhancements to a programme to help support startups.

The Startup SG Founder programme, begun in 2017, provides first-time entrepreneurs with mentorship support and startup capital grants. 

Deputy Prime Minister Heng Swee Keat in his ministerial statement on Monday said he will set aside S$150 million to enhance the Startup SG Founder programme in phases, as part of efforts to continue to spur innovation and entrepreneurship in Singapore. 

One of the enhancements is a three-month Venture Building programme, under which new entrepreneurs will be provided support for their startups. This includes help in sourcing information, commercialising their ideas into businesses, getting product or solution validation from customers and finding capital. 

Participants can also tap on resources such as industry experts for mentorship and shared resources such as co-working spaces. 

The programme will be open to Singaporeans and Permanent Residents and each participant will receive a monthly stipend of S$1,500 for the duration of the programme. 

As a start, five autonomous universities — Nanyang Technological University, National University of Singapore, Singapore Management University, Singapore University of Technology and Design and the Singapore University of Social Sciences — will serve as partners that provide these programmes. 

Applications will begin by the end of this month, and ESG will be expanding the list of partners. 

Support for startup capital for entrepreneurs will also be increased, from S$30,000 to S$50,000. 

Enhancements to the SG Founder grant will kick off in September and "help to extend the runway for startups to develop their business ideas, as generating revenue will be more challenging than before during this period,” ESG said.  

Start-ups will still be required to raise and commit S$10,000 as a co-matching fund to the grant.

To tap on the grant, startups must now be formed with minimally three Singaporeans and/or Permanent Residents, inclusive of the founders, which at least two must be first-time founders. — TODAY