Strategic Traineeship Scheme Aligned with Singapore's Growth Sectors

Commentary

The traineeship scheme for fresh graduates could be aligned with sectors Singapore is prioritising for long-term growth, says IPS Faizal Yahya.

SINGAPORE: The global economy in 2025 is expected to see sluggish growth, with some forecasts warning of the weakest expansion since the COVID-19 pandemic.

While some regions might experience moderate growth, others could face significant headwinds, particularly due to factors like trade tensions, geopolitical risks and technological disruptions. 

Against this backdrop, Prime Minister Lawrence Wong struck a candid but forward-looking tone in his National Day Rally speech. He acknowledged the uncertainties but also emphasised that Singapores workforce and businesses must stay nimble and seize new opportunities.

One of the most significant measures unveiled was a government-funded traineeship programme for Institute of Technical Education (ITE), polytechnic and university graduates. It aims to offer fresh graduates more training opportunities, allowing them a foothold in the working world.

While more details about the scheme are forthcoming, several concerns naturally arise. Employers especially small- and medium-sized enterprises (SMEs) are adopting cautious hiring practices in light of rising costs and uncertain demand.

This raises the risk that trainees may be seen as a source of temporary labour rather than long-term investments, with no guarantees of full-time conversion once funding ends.

Furthermore, many SMEs face manpower constraints and may hesitate to take on trainees, particularly in areas where artificial intelligence, productivity tools and automation are rapidly replacing routine roles.

If participation is uneven, the programme could end up benefiting primarily large firms that already have training infrastructure in place, leaving smaller companies sidelined.

LINKING TRAINEESHIPS TO GROWTH SECTORS

For the traineeship scheme to make a real difference, it will need to be strategically aligned with sectors Singapore is prioritising for long-term growth. Mr Wong highlighted two such sectors during his speech: biomedical sciences and quantum technologies.

The biomedical sector employs over 24,000 workers across more than 80 pharmaceutical and medical device plants in Singapore. The pharmaceutical sub-sector alone has recorded a 70 per cent increase in employment over the past decade.

From research scientists and engineers to regulatory specialists and commercial leads, the industry is hungry for diverse talent. With multinational companies such as GSK, Pfizer and Novartis operating in Singapore, the sector presents fertile ground for trainees to build relevant skills and secure permanent roles.

Government agencies have long partnered with educational institutions to build specialised talent pipelines. For instance, the Economic Development Boards (EDB) Strategic Training and Attachment Programme provided on-the-job training for young Singaporeans in growth areas such as biologics and nanotechnology.

By tying traineeships directly to such frontier areas, graduates can gain early exposure to in-demand roles while employers benefit from a steady inflow of motivated talent.

Another growth sector Mr Wong highlighted is quantum computing, an area where Singapore has already invested over S$400 million, with another S$300 million committed until 2029.

Already, more than 10 local quantum startups have sprung up in areas such as communication, simulation, photonics and sensors, supported by a pool of 350 researchers and PhD candidates. Major corporations like IBM are also working with local universities on quantum computing research and development.  

Here too, training programmes could be a powerful lever. For instance, OCBC aims to train more than 100 employees to develop new applications of quantum computing, such as in pricing financial instruments and strengthening defences against fraud and cyberattacks.

By directing trainees into such structured programmes, Singapore could accelerate the development of a quantum-ready workforce while ensuring graduates are not left adrift in oversupplied fields.

A potential anxiety among fresh graduates is whether traineeships will translate into real, lasting jobs. To address this, the government may need to set clearer expectations for employers receiving subsidies. Incentives could be calibrated so that firms are rewarded not merely for hosting trainees, but for converting them into full-time hires where possible.

This is especially important for SMEs, who may lack the bandwidth to design robust training roadmaps. Support in the form of shared training resources, mentorship networks and co-funding of permanent roles could help smaller firms see trainees not as temporary helpers, but as future assets to groom.

If executed well, the traineeship programme could serve a dual purpose: cushioning graduates against a weak job market while reinforcing Singapores position as a hub for frontier skills and industries. Just as earlier manpower initiatives in IT and finance helped build critical mass, todays efforts must be focused on growth sectors.

The new traineeship programme can become more than a stopgap measure it can be a cornerstone of Singapores next phase of economic transformation. With biomedical sciences advancing rapidly, and quantum computing poised to transform industries from finance to logistics, Singapore has the opportunity to channel young talent into the sectors shaping the economy of tomorrow.

Faizal Yahya is Senior Research Fellow at the Institute of Policy Studies, National University of Singapore.