In his National Day Rally speech, Singapore Prime Minister Lee Hsien Loong announced that he will be seeking legislation to require the reemployment of older workers. In addressing the best way for the government to help older workers to stay employed and work longer, the Prime Minister rejected calls for raising the retirement age of 62, since that would discourage employers from hiring older workers.
Accordingly, he called for legislation for reemployment to continue working beyond 62 ad being more flexible for both employers and employees. While a worker would not necessarily get the same job or the same pay, employers must make an offer, taking into account worker’s performance, health and preferences, and company’s needs.
As proposed, the law would take effect from 2012. It would require employers to offer reemployment to workers reaching retirement age, i.e. 62. As a first step, this would go up to 65 age and later would be pushed up to 67. In addition, the government will offer financial incentives for older people to work, and for employers to hire them.
Source: Singapore Government Media Release (August 19, 2007)
Other Sources: Channel NewsAsia "Firms facing Re-employment Act can stay cost-competitive" (August 23, 2007); Bernama.com "Singapore To Make Re-employment Of Older Workers Mandatory" (August 20, 2007)