SINGAPORE: The decision by the Government Technology Agency of Singapore (GovTech) to cut about 300 roles while continuing to recruit for new tech positions mirrors the restructuring efforts of the broader technology sector, according to labour experts CNA spoke to.
The move also reflects the evolution of skill sets required for Singapore's digital workforce, they added.
However, the experts were divided on whether GovTech's restructuring exercise is a signal that more retrenchments in the public sector could come.
Independent skills and workforce consultant Ives Tay said the retrenchment came as a surprise because layoffs are rare in government agencies and the number of officers affected is "quite significant".
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The last publicly reported retrenchments in the civil service date back to 2006 to 2010, when 20 officers left under the Special Resignation Scheme, according to a written parliamentary reply in November 2011.
"This will definitely shake up everybody's thinking. So traditionally, a government job in Singapore is really more or less an iron rice bowl. So as long you don't create too much trouble, you don't commit a crime, you should be done for life," said Mr Tay.
He added that the move could set a precedent for other government agencies, whose capability needs are also evolving in response to technological and economic change.
"I do anticipate that other government agencies will somehow follow suit sooner or later, not because they want to downsize or get rid of people, but it's more of the needs have changed," he said.
"Now we live in a very volatile environment – economically, socially – so the capabilities of the public officers also need to change."
However, Associate Professor Walter Theseira from Singapore University of Social Sciences said the exercise should be viewed primarily through the lens of the technology industry, where companies routinely cut some roles while hiring aggressively for others as they reorganise around new capabilities.
"There's no indication from what has been announced that the government considers, for example, the public sector bloated," he said.
"There's generally a sense that actually the public sector is maybe a little too lean for the kinds of demands that are placed on it today because basically, (it is) not just economic restructuring, dealing with (artificial intelligence) and so on, but in general, the higher demands that the public has for public services.
"So I think the public sector continues to actually be fairly lean, and certainly, I think (the Ministry of Finance) exercises a huge amount of discipline in restricting headcounts in the public sector.
"To me, it's not a signal that the public sector has too many people; it's actually more of the public sector needs to pivot in certain ways, especially in technology functions, and as part of that pivoting, they cannot get it done without actually restructuring."
GovTech announced on Tuesday (Jul 15) that about 7 to 9 per cent of its workforce will be affected as it shifts from a project-delivery model to one centred on continuous product ownership. The first phase will see 93 officers leave the agency, while more than 200 others will be retained, redeployed or placed on full-pay apprenticeships.
Assoc Prof Theseira said GovTech's restructuring resembles what many technology firms have already been doing since the COVID-19 pandemic.
Turning to GovTech's decision to retrench staff while recruiting for new roles, Assoc Prof Theseira said such moves are common in the technology sector, where companies frequently reorganise around new growth areas rather than reduce overall headcount.
"Unless your organisation is in a business sector which is clearly contracting, what you're usually trying to do is reorganise and redeploy your resources for a new area of growth," he said.
He noted that many technology companies expanded rapidly during the COVID-19 pandemic as demand for digital services surged, and have since been reorganising to better align their workforce with changing business needs.
GovTech's restructuring could similarly represent a delayed adjustment after that period of rapid expansion, he said.
Assoc Prof Theseira stressed that the affected workers still possess valuable skills. Rather than reflecting poor performance, the restructuring is driven by changing capability requirements, although workers with highly specialised expertise may find it harder to pivot into adjacent roles.
That broader shift is not unique to GovTech, said Mr Ethan Ang, founder of tech talent platforms NodeFlair and TalentGPT.
"Organisations increasingly want stronger internal ownership rather than relying on external vendors, mainly for technology ownership, productivity gains, and more," he said.
While the restructuring is symbolically significant because public sector retrenchments are rare, its immediate labour market impact is likely to be limited, he said.
Mr Ang added that not all affected workers would face the same transition. Project and vendor managers could move into adjacent roles in areas such as product management, product operations and technical programme management because many of their core skills are transferable.
However, moving directly into software engineering or cybersecurity would be considerably more difficult, as those roles require deeper technical knowledge and hands-on experience.
"Artificial intelligence can reduce the barrier, but it does not make everyone technically competent. It narrows parts of the execution gap, but does not eliminate the competency gap," Mr Ang said.
Analysts also said GovTech's restructuring reflects a broader shift in how employers value skills.
OCBC chief economist Selena Ling said the public sector is not immune to the same pressures facing private technology firms globally.
"Globally, the tech sector has been experiencing some indigestion, and even the big tech companies have been doing some restructuring," she said.
She added that artificial intelligence and technological disruption are making continuous learning increasingly important.
"It is difficult to see (an) 'iron rice bowl' in this age of disruptions. Whether it's the public or private sector, the focus has to be on lifetime employability rather than lifetime employment," she said.
GovTech's decision to offer full-pay apprenticeships to affected staff can help with income stability and provide some mental reassurance, Ms Ling said, although she cautioned that retraining only succeeds if it leads to jobs that are genuinely in demand.
"(We) also need to recognise that technology both displaces some existing jobs and creates new jobs too. This may be the new reality of today’s labour market," she said.
Additional reporting by Caitlin Ng
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The move also reflects the evolution of skill sets required for Singapore's digital workforce, they added.
However, the experts were divided on whether GovTech's restructuring exercise is a signal that more retrenchments in the public sector could come.
Independent skills and workforce consultant Ives Tay said the retrenchment came as a surprise because layoffs are rare in government agencies and the number of officers affected is "quite significant".
CNA Games
Show More Show Less
The last publicly reported retrenchments in the civil service date back to 2006 to 2010, when 20 officers left under the Special Resignation Scheme, according to a written parliamentary reply in November 2011.
"This will definitely shake up everybody's thinking. So traditionally, a government job in Singapore is really more or less an iron rice bowl. So as long you don't create too much trouble, you don't commit a crime, you should be done for life," said Mr Tay.
He added that the move could set a precedent for other government agencies, whose capability needs are also evolving in response to technological and economic change.
"I do anticipate that other government agencies will somehow follow suit sooner or later, not because they want to downsize or get rid of people, but it's more of the needs have changed," he said.
"Now we live in a very volatile environment – economically, socially – so the capabilities of the public officers also need to change."
However, Associate Professor Walter Theseira from Singapore University of Social Sciences said the exercise should be viewed primarily through the lens of the technology industry, where companies routinely cut some roles while hiring aggressively for others as they reorganise around new capabilities.
"There's no indication from what has been announced that the government considers, for example, the public sector bloated," he said.
"There's generally a sense that actually the public sector is maybe a little too lean for the kinds of demands that are placed on it today because basically, (it is) not just economic restructuring, dealing with (artificial intelligence) and so on, but in general, the higher demands that the public has for public services.
"So I think the public sector continues to actually be fairly lean, and certainly, I think (the Ministry of Finance) exercises a huge amount of discipline in restricting headcounts in the public sector.
"To me, it's not a signal that the public sector has too many people; it's actually more of the public sector needs to pivot in certain ways, especially in technology functions, and as part of that pivoting, they cannot get it done without actually restructuring."
SHIFTS IN THE DIGITAL WORKFORCE
GovTech announced on Tuesday (Jul 15) that about 7 to 9 per cent of its workforce will be affected as it shifts from a project-delivery model to one centred on continuous product ownership. The first phase will see 93 officers leave the agency, while more than 200 others will be retained, redeployed or placed on full-pay apprenticeships.
Assoc Prof Theseira said GovTech's restructuring resembles what many technology firms have already been doing since the COVID-19 pandemic.
Turning to GovTech's decision to retrench staff while recruiting for new roles, Assoc Prof Theseira said such moves are common in the technology sector, where companies frequently reorganise around new growth areas rather than reduce overall headcount.
"Unless your organisation is in a business sector which is clearly contracting, what you're usually trying to do is reorganise and redeploy your resources for a new area of growth," he said.
He noted that many technology companies expanded rapidly during the COVID-19 pandemic as demand for digital services surged, and have since been reorganising to better align their workforce with changing business needs.
GovTech's restructuring could similarly represent a delayed adjustment after that period of rapid expansion, he said.
Assoc Prof Theseira stressed that the affected workers still possess valuable skills. Rather than reflecting poor performance, the restructuring is driven by changing capability requirements, although workers with highly specialised expertise may find it harder to pivot into adjacent roles.
That broader shift is not unique to GovTech, said Mr Ethan Ang, founder of tech talent platforms NodeFlair and TalentGPT.
"Organisations increasingly want stronger internal ownership rather than relying on external vendors, mainly for technology ownership, productivity gains, and more," he said.
While the restructuring is symbolically significant because public sector retrenchments are rare, its immediate labour market impact is likely to be limited, he said.
Mr Ang added that not all affected workers would face the same transition. Project and vendor managers could move into adjacent roles in areas such as product management, product operations and technical programme management because many of their core skills are transferable.
However, moving directly into software engineering or cybersecurity would be considerably more difficult, as those roles require deeper technical knowledge and hands-on experience.
"Artificial intelligence can reduce the barrier, but it does not make everyone technically competent. It narrows parts of the execution gap, but does not eliminate the competency gap," Mr Ang said.
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"LIFETIME EMPLOYABILITY" OVER "LIFETIME EMPLOYMENT"
Analysts also said GovTech's restructuring reflects a broader shift in how employers value skills.
OCBC chief economist Selena Ling said the public sector is not immune to the same pressures facing private technology firms globally.
"Globally, the tech sector has been experiencing some indigestion, and even the big tech companies have been doing some restructuring," she said.
She added that artificial intelligence and technological disruption are making continuous learning increasingly important.
"It is difficult to see (an) 'iron rice bowl' in this age of disruptions. Whether it's the public or private sector, the focus has to be on lifetime employability rather than lifetime employment," she said.
GovTech's decision to offer full-pay apprenticeships to affected staff can help with income stability and provide some mental reassurance, Ms Ling said, although she cautioned that retraining only succeeds if it leads to jobs that are genuinely in demand.
"(We) also need to recognise that technology both displaces some existing jobs and creates new jobs too. This may be the new reality of today’s labour market," she said.
Additional reporting by Caitlin Ng
Continue reading...