In an apparent move to avoid further job losses, the Singapore government may extend wage subsidy for employers.

Prime Minister Lee Hsien Loong, while justifying the move said, economic recovery is the top agenda of the government and it would not bear further retrenchments to derail city-state's economy.

Lee said, "The economy is now recovering, and some companies are hiring again. But if we withdraw the Jobs Credit completely and suddenly, companies may have difficulties adjusting."

Government will continue with its Jobs Credit program for another six months by spending $483 million for its extension. The program worth S$4.5 billion was originally designed for one year for providing subsidies to employers facing tough situations under the impact of global slowdown.

Singapore has been witnessing four year high unemployment rate with large number of job losses due to economic slowdown. The Jobs Credit program, designed by top economists, will definitely help to curb further job firings.