Singapore urged to embrace business churn amidst inevitable company failures

Focus is on supporting workers, not just preserving jobs.

Singapore must brace for “more churn” in its economy as part of efforts to maintain dynamism and innovation, Prime Minister Lawrence Wong said in Parliament on Wednesday, 24 September.

“Some [enterprises] will fail. And fail spectacularly. When they do, there will inevitably be calls for the Government to step in,” he said. “But if we try too hard to shield every company, we risk ending up with more ‘zombie firms’ – propped up artificially, stifling renewal and enterprise dynamism. And that is not the path we want to take.”

He stressed that setbacks are part of economic progress, noting: “So we must be prepared for more churn. And we should not only celebrate success stories, but also learn to embrace failures and setbacks, because it is only through constant experimentation that more innovative companies can emerge.”

Highlighting the government’s priority for citizens, Wong said: “Our focus must always be on the worker, not the job. Companies may fail. Jobs may disappear. But every worker matters, every citizen matters; and no one will be left behind.”

He emphasised that economic growth should uplift lives and create opportunities for all Singaporeans, not simply chase GDP.

Wong also outlined initiatives to strengthen social mobility and provide safety nets, including investments in early childhood education, reforms in schools, and skills-based hiring in both public and private sectors.

He noted that Singapore must continuously tilt the balance to keep opportunities open at every stage of life, warning against societal stratification that could trap young people in a “relentless rat race.”

The prime minister called for a culture that values all forms of work, highlighting efforts to raise salaries for pre-school teachers and allied health professionals, and professionalised skilled trades.

He highlighted initiatives such as skills-based hiring and progression, broader recognition of all forms of work, and the SkillsFuture Jobseeker Support Scheme to help workers recover from setbacks.

“Together, let us build a Singapore that remains a land of endless possibilities,” the minister said. “A home where every generation does better than the one before. And a nation that continues to shine brightly – for the next 60 years, and for the generations beyond.”