MANPOWER Minister Ng Eng Hen yesterday rejected calls by MPs to reserve jobs for older workers, arguing that it would make the labour market inflexible.

However, he will consider another suggestion: Setting up a centre that is dedicated to finding work for older Singaporeans.

The job woes of older workers were highlighted by five MPs yesterday during the debate on the Manpower Ministry's budget.

Among them, Madam Cynthia Phua (Aljunied GRC) and Ms Irene Ng (Tampines GRC) had suggested reserving certain jobs for older Singaporeans who were finding it difficult to get work.

Relating the plight of older workers who had sought help from government job-matching agencies but were still jobless after a year, Ms Ng made the impassioned plea:

'Could we 'chope' a few jobs for older workers without adding rigidities to the system?'

In response, Dr Ng said he did not agree with implementing a 'quota system' because it will make the labour market rigid.

'If there is a quota for older workers, why not quotas for women or other groups. In the end, you're left with a very small group without quotas, so that is really reverse discrimination.'

Such quota systems have also not worked in other countries that had them, he added.

Dr Ng believes the way forward is for companies to realise that it makes business sense to employ older workers. He cited examples such as IBM in the United States which is looking at engaging its retirees on a project basis.

The Government is also helping companies adapt to an ageing workforce with the ADVANTAGE! scheme which will give funding to companies that want to change work processes to accommodate older workers.

So far, 31 companies have come on board. Together, they have committed to hire more than 800 older workers, retain 480 workers approaching or above the retirement age of 62, and implement job redesign projects that will improve the work of 4,400 older workers.

One company the minister cited was SingHealth which has set up a Silver Connection Office.

It is managed by older workers who run activities and counselling services for its 5,200 older employees.

In fact, the Office hired a 60-year-old programme consultant on a one-year contract to manage it.

Noting several MPs' suggestion to develop cottage industries for older and less educated workers to set up their own business, Dr Ng said the Workforce Development Agency (WDA) is piloting a 12-month programme to do just that.

One participant is Madam Toh Ah Tuan, 45. She joined the programme last November and was put through a three-month job attachment at McDonald's fast-food company. She also attended a retail course. Armed with her new knowledge and the guidance of a mentor, she rented a stall in a coffee shop to sell fish soup last month.

'Her business is doing quite well and she takes in about $180 a day,' related Dr Ng.

He also assured the House that there were jobs for older workers. But workers too need to understand the need to work longer, including accepting adjusted terms and conditions such as a lower pay or reduced benefits, he added.