'I am sorry': GovTech chairman on retrenchment exercise

"I am sorry." 

That was the message from Government Technology Agency of Singapore (GovTech) chairman Chng Kai Fong to all affected staff in the agency's retrenchment exercise. 

"I am sorry for the disruption to you and your families. Thank you for what you have given GovTech and Singapore," he said.

GovTech announced on Wednesday (July 15) that it will be reducing its headcount by up to nine per cent over the next two years, as it shifts to build and manage its own digital products.

In a note to GovTech officers, which was seen by AsiaOne, Chng acknowledged that this was "difficult news" and thanked the affected staff.

"The systems you built are running in production today and serving Singaporeans. That contribution endures and it will remain part of GovTech's story," he said. 

He also addressed the officers who remain, saying: "To colleagues who are staying: we owe it to those leaving to make this transformation real, not another reorganisation on paper." 

A total of 305 staff from GovTech headquarters and in project and vendor management roles are affected by the first of three planned waves of job cuts.

Of these, 102 will remain in their current roles and 110 will take up apprenticeships to transition into other capabilities. The remaining 93 officers are leaving the agency. 

Chng, who also holds permanent secretary appointments in the Ministry of Digital Development and Information and the Prime Minister's Office, stressed that the reorganisation was "not an AI-driven downsizing exercise".

He also defended the decision to move ahead with the transformation instead of stretching the transition out over a longer period. 

Explaining the decision, Chng said delaying the changes would "leave critical systems ageing" and "widen the gap" between what Singaporeans need and what GovTech's current operating model can deliver. 

"That is why we have had to make difficult choices. The GovTech leadership team and I made these decisions. I stand behind them," he said.

He also stressed in the letter that the layoff targets roles identified as redundant, and affected officers are not evaluated based on performance.

Chng also noted that "many" staff have wanted GovTech to shift its operating model for years.

"You now have the mandate: fewer layers between you and the product, clear ownership and direct responsibility for outcomes," he added.

"This means better products, stronger security, faster improvements and clearer accountability to the public."

Officers who are being let go will receive one month's salary for every year of service, capped at 25 years, as well as a three-month ex-gratia payment and a pro-rated performance bonus.

In the note, Chng also said he and GovTech chief executive Goh Wei Boon would hold an ask-me-anything (AMA) session on July 16. 

"Ask us what is on your mind. We will answer directly. Where we do not yet have an answer, we will say so," he wrote.

The scope of the next phase of the restructuring will be announced by November 2026. 

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