Speech by SMS Mr Tan Kiat How at Singapore Computer Society Splash Forum

Speech by Mr Tan Kiat How, Senior Minister of State for Digital Development and Information, At Singapore Computer Society (SCS) Splash Forum (4 October 2024)

Good morning, everyone, and a very warm welcome to the inaugural SCS Splash Forum. It is my real pleasure to be here today.

Today's theme is "Careers and Internships", and I think it's a very apt theme as described by Mr Sam Liew just now. I hope that all of you here today will embrace the many opportunities for learning, collaboration, and growth that lie ahead.

Singapore Government is committed to nurturing a skilled tech workforce amidst a changing tech landscape

Within the evolving landscape of the tech industry, different roles and competencies in the workplace are emerging and evolving at a rapid pace, reshaping our understanding of work and education. We have seen this take place most recently against the backdrop of the advent of generative AI, or GenAI. From AI-driven coding tools to automated content generation, GenAI has not just created new job roles, it has also enhanced the capabilities of existing ones.

Sectors such as finance, healthcare, and retail, and many more, are actively seeking tech-savvy professionals to drive innovation in areas like digital payments, telemedicine, and e-commerce. These are exciting opportunities for tech professionals in Singapore.

We have seen the demand for tech professionals in Singapore grow over the years. The number of tech jobs grew from 155,500 in 2017 to around 208,300 in 2023, just last year. This is a compounded annual growth rate of 5% per annum.

These are good jobs with good prospects. Our Infocomm Digital Technology (IDT) university graduates took home the highest median gross salary at $5,500 in 2023. This is compared to $2,900 for Polytechnic graduates and $2,100 for ICT ITE fresh graduates. More generally, the resident median wage for tech professionals was $7,000 per month, much higher than the overall median wage for the general economy of $4,500. So, good jobs, good starting pays, and good career prospects in the tech industry. These are exciting opportunities for all of you.

In Smart Nation 2.0, which was released just a few days ago, we have said that we intend to empower our workers to adapt, succeed, and realise their aspirations in a changing economy. The Government will remain committed to developing a strong pipeline of tech talent to meet our industry needs.

IMDA's TechSkills Accelerator (TeSA) programme, for instance, supports our workers'

transition into tech roles and ensures that our existing tech workforce remains equipped with relevant skills. It offers targeted training, job placements, and career support in ICT jobs. Through this, nearly 18,000 locals have been placed and trained in in-demand tech areas, and another 243,000 individuals have been upskilled.

And we are doing more for a specific group of graduates from ITE and polytechnics. The TeSA for ITE and Polytechnics (TIP) Alliance is an industry-led initiative driven by IMDA and supported by industry partners.

It supports the development of end-to-end pathways to strengthen Polytechnic and ITE graduates' employment outcomes in tech, which starts from enhanced year-long internships while the students are still in school, progressing to apprenticeships and work-study upgrading after graduation.

We started this effort two years ago because we noticed that the starting pay of our polytechnics and ITE graduates were lagging behind the starting pay of university graduates, and the gap was getting wider and wider. Understandably, there is a premium attached to a university degree. But over time, we saw that while the prospects for university graduates grew, graduates from ITE and polytechnics did not have as much opportunities, and their salary gap widened.

That was the genesis of why we started the TIP Alliance. And I'm very glad that Mr. Sam Liew, as President of SCS, and Mr. Wong Wai Meng, president of the SGTech industry association, have come forward to co-lead this effort together with us. It has brought together like-minded partners from across government, school leadership, tech industry associations and leading employers of tech manpower such as NCS and ST Engineering. Together with representatives from schools and different government agencies, this alliance aims to provide students with industry-relevant skills and to help them transition from education to employment in the tech sector.

Since its inception in September 2022, the TIP Alliance has been instrumental in changing the way organisations think about hiring and developing tech professionals, by giving sufficient weight on skills rather than just looking at academic qualifications. As of 2024, leading employers in the TIP Alliance have committed 800 good tech job opportunities for ITE and Polytechnics graduates.

I would like to draw on three objectives we set out to achieve under the TIP Alliance. First, to build new and alternative pathways and opportunities around training and employment. Second, to catalyse a change in mindsets around hiring and development. And third, to foster a vibrant ecosystem around skills-based hiring.

New and alternative pathways

It is important that we engage students early in their education. Under the TIP Alliance, industry partners can collaborate with Polytechnics and ITEs to shape their curriculum, ensuring that the curriculum stays relevant with industry trends.

At the same time, by starting upstream and providing students the opportunity to take on internships, students like all of you here are exposed to how the tech industry operates and can actively apply what you study in school in a practical manner. And this is so important as it sets a very strong, good foundation from the outset.

However, securing enriching opportunities can be challenging. Students may find themselves in roles that do not fully utilise their skills. Schools may find it difficult to forge partnerships that provide value to their students, while companies struggle to find interns with industry-relevant skill sets. The TIP Alliance has been instrumental in addressing these issues.

First, the TIP Alliance has helped to facilitate longer, more thoughtfully designed internships. This ensures that students are not just seen as temporary help but become integral parts of the teams they join.

These internships are curated to balance company contribution with student learning. Mentors also help to guide students through projects, which allow students to develop skills and build up the relevant competencies necessary for their careers. It's not just about technical skills; it's also about the softer aspects of how you work in teams, work with colleagues, address problems, and be confident of yourselves.

There has been a steady supply of such internships; over 260 companies from 13 sectors, including OCBC and Accenture, have come onboard the enhanced internship programme.

I am glad to see that students recognise the benefits of such internships, despite the need to dedicate more time to such programmes.

Participation in these year-long enhanced internships increased in 2024, and I am pleased to share that more than 900 Polytechnic and ITE Students have participated in these internships. This is double the participation from last year. In fact, more than 1,300 students have benefitted from these internships in the last two years.

I encourage for all of you, if you are about to embark on your internships, do consider the longer 12-month internships if those opportunities are available to you, I've met many interns at their workplace, and all had wonderful things to say about the internship. They learned a lot and really appreciated the opportunities.

Such enhanced internship programmes are valuable as they allow for on-the-job training, allowing students to apply their skills to real-world applications and develop soft skills for the workplace. The programme benefits organisations too, as these internships allow firms to recognise and retain talent. So, to employers that have not come aboard this programme - please do so. It is a golden opportunity for you to identify talent early.

Take for example, Ms Evelyn Foo, who spent a year at Accenture in a software engineer role. Evelyn performed well during her internship, and she is now employed full-time in Accenture as a custom software engineering associate.

Second, the TIP Alliance has also encouraged organisations to offer apprenticeships to promote continuous professional growth and development.

When properly structured, apprenticeships help to align the interests of graduates and employers, by ensuring that graduates can excel in their chosen fields. OCBC's Ignite programme, which was developed in collaboration with Singapore's five polytechnics, offers tech students a structured 18-month career pathway. This includes a 12-month internship and a six-month full-time apprenticeship after graduation. Upon successful completion of the programme, participants can leapfrog to an assistant manager position at the bank. So, a win for both the students and the organisation.

Many of them find having such experiences rewarding. Arash Nur Iman, an Information Technology student at Ngee Ann Polytechnic, who is currently taking part in OCBC Ignite, shared that it was an eye-opening experience to be able to see first-hand how things were run. In his stint, he's had the opportunity to interact with different groups of people and improve his soft skills.

I am happy to see that our participants are enjoying the journey and making the most of the time they have invested in these programmes.

Change in mindset

By championing a skills-based approach, we hope to steer mindsets away from traditional academic qualifications and towards the competencies and abilities that candidates can contribute to an organisation.

In November last year, we launched the Skills-Based Hiring Movement together with the Employer Pledge and Handbook for Tech Roles, which provides guidance for firms to attract, assess, and develop tech talent based on competencies.

Over 200 companies have pledged their support for the movement today, and certain progressive companies have integrated their commitment into their hiring practice.

For example, Oracle has removed the education requirement in its job postings for technical roles in Singapore, and Accenture has adopted a multi-stage assessment focused on skills, competencies, and growth potential. In Accenture's case, the move has reduced their Time-to-Hire by 75%, and increased quality talent pipelines by 40%.

Such efforts help to broaden the talent pool by providing equal opportunity to those with non-traditional backgrounds and fosters a more inclusive and dynamic workforce. Our industry partners agree and have started to recognise the benefits of adopting a skills-based approach.

CEO of Inspire-Tech, Sharon Teo, has said that embracing a skills-based hiring mindset enabled them to build a more diverse team, and that the diversity helped to generate fresh perspectives that improved their business.

We remain committed to further expanding this pool of talent, and the TIP Alliance will be exploring further efforts to help assimilate other individuals into the tech workforce.

I want to especially call the next group of individuals that we hope to support - the gentlemen here going to National Service (NS). When you come out of NS, many of you have different pathways, but we want to reach out to you and provide more opportunities and options for you to consider. If you are keen to pursue your next steps in tech, whether it is through further studies or taking on a job, we want to be there to walk the journey with you, together with employers.

Part of this would include developing relevant apprenticeship and Work-Study Programmes to bridge the skills gap and enhancing your industry readiness and capability to undertake available job roles.

Cultivating a vibrant ecosystem

I am very encouraged by the strong support of TIP Alliance members and organisations that have come onboard this broad movement.

This is a testament of the hard work by TIP Alliance co-chairs, members, and the individuals involved. Importantly, it speaks to the importance of this unique Singapore approach of bringing stakeholders together to align interests, build trust, and jointly develop pragmatic solutions to common challenges.

By uniting different stakeholders, the TIP Alliance has facilitated the exchange of knowledge and best practices, ensured that school curriculum remain industry-relevant, and that graduates are well-prepared for the demands of the workplace. These partnerships have also enabled the creation of platforms for networking, mentorship, and professional development, thus further enriching the tech ecosystem.

However, as we look to the future, we will have to keep pace with new developments and scale our initiatives to meet the demand for tech talent.

One of the biggest challenges we face is the sheer speed of tech advancement, which is evolving at a pace that outstrips traditional educational and training models. We will need a more agile approach to curriculum development and skills training, to continuously anticipate skills gaps, and develop and integrate certifications that are valued by employers. And we will need to do this in a collaborative manner, to ensure that the ecosystem can grow.

The search for and development of top tech talent is critical for Singapore to stay ahead of the curve. To the representatives here today on behalf of Industry, I would like to encourage you to join the Skills-Based Hiring movement by pledging your commitment and transitioning your hiring focus from just looking at academic qualifications to also look at practical competencies and skills.

Let's not forget the students that are also here with us today. Your skills are your currency in the tech job market, and I hope you will embrace the shift towards skills-based hiring by honing the skills that employers value most.

The rebranding of the Splash Awards to the Splash Forum is intended to spark conversations between our industry partners and yourself. There will be more networking and career opportunities for students in technical roles such as software engineering and cybersecurity, and less tech-centric roles such as in business analyst internships.

I encourage you to take the opportunity to talk to people and understand the requirements of your desired job roles. Should you find an area that you might be interested in, please proactively engage with the industry members and understand the industry-relevant courses and certifications that they are looking for.

SCS has partnered with Google to introduce Google Career Certificates to their student chapter members. Through the 500 Google Career Certificates scholarships provided by Google under the Skills Ignition SG Programme, students have access to self-learning opportunities on the Coursera platform. The number of registrations have almost doubled, from 700 last year to 1,300 this year. Many students have benefited, so if not done so, please quickly do so.

These initiatives are meant to allow you to hone your interests, further develop your skills, and allow you to gain hands-on experience and expertise. For instance, Google also has its Skills Ignition SG Traineeship Programme to help Singaporeans acquire in-demand skills for the digital future - and the Traineeship Programme continues to evolve with the integration of AI modules into the 2025 iteration.

Some graduates, such as Muhammad Syahiran Bin Abdul Jamal who joined the Digital Marketing track last year, have seen it as a springboard to land themselves a job. Syahiran is now at GroupM as a Search Performance Executive. I am very glad to hear of many of such stories, where individuals, perhaps those with more traditional IT or digital backgrounds, deciding to pivot into the tech industry. They have secured good jobs and now enjoy very good prospects.

So, it gives me encouragement, and I wish all of them the best and encourage those of you who are thinking about it to give it a try. There are many opportunities, many exciting development prospects, but you must take the very first step yourself.

Closing

I end off by thanking the TIP alliance for your commitment. It is the second-year anniversary, and we hope to have many more years ahead of us, which means that many more years of hard work by everyone. So please give them a round of applause. Thank you so much.

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