q Lifelong Learning Fund for a Skilled Workforce

A S$500 million top-up to the Lifelong Learning Fund will be provided to support initiatives for worker re-skilling and upgrading. The top-up will enable the Workforce Development Agency to initiate more programmes and intensify its efforts tom help job seekers.

q Re-Employment Assistance Programme

Established in January 2005, the Re-Employment Assistance Programme (REAP) seeks to help less-skilled job seekers transit successfully into new jobs and avoid falling into long-term unemployment.

REAP will look into the following areas:

· re-designing jobs on a nation-wide effort, combined with training to help workers take up the re-designed jobs; and

· establishing a financial support scheme to encourage job seekers to take up and stay in new jobs.

At least 15,000 job seekers are expected to benefit from this programme.

q Foreign Worker Levy

The skilled foreign worker levy will be increased in two stages.

With effect from 1 July 2005, the skilled foreign worker levy will be raised from S$50 to S$80. This will further increase to S$100 from 1 Jan 2006.

Meanwhile, companies in both the manufacturing and services sectors that urgently need more foreign workers will be allowed to employ more of such workers beyond the present dependency ceiling, subject to a higher levy of $500 for each additional foreign worker. Companies that are below the present dependency ceiling will not be affected.

This measure will give companies more operational flexibility as well as encourage them to expand their operations in Singapore.

q Foreign Domestic Worker Levy

With effect from 1 April 2005, the foreign domestic worker (e.g maid) levy will be reduced by S$50.This measure will helped families $600 annually.