Singapore to raise re-employment age to 67 by 2017

Singapore Prime Minister Lee Hsien Loong said on Sunday that the government will raise the re- employment age from 65 to 67 by 2017, after the upcoming general election.

Lee, who will be announcing the election date very soon, said in his National Day Rally speech that many people in their 60s have said that they want to work longer, and the tripartite partners have reached an agreement to pass legislation to raise the re-employment age from 65 to 67 by 2017.

"Workers want us to raise the re-employment age. They want to keep working for as long as they are healthy. I hear this every time I attend a union function," said Lee. However, he pointed out that companies must be given time to adjust and work out practical arrangements, so that re-employed workers can be productive and not a burden on their companies.

Another issue highlighted by Lee is immigration, which is also one of the major topics on the agenda of this year's vote. Singapore has been tightening the inflow of foreign labor in recent years, and a new round of regulations on the criteria of foreign work passes will also take effect in October, making it harder for foreigners to get a job in the country.

While stressing that the government has tried hard to make sure that Singaporeans are fairly treated at work, he noted that there are "no easy choices" on this matter. "Every option has a downside, and whichever option we choose will involve some pain" Lee said.

"Closing the doors to foreign workers would tank the economy. Companies would not have enough workers and some would close, meaning jobs lost," he said. "On the other hand, letting in too many foreign workers would lead society to come undone ... Singaporeans would be crowded out, workplaces would feel foreign and our identity would be diluted."

He said the government has to find something in between, a trade-off that best serves Singapore's interest, even though some Singporeans still resent having to compete with non-Singaporeans.

"I believe that I am doing what Singapore needs and what best safeguards your interest ... It is my responsibility to make this judgment and act on your behalf," he said.