A Nithiah Nandan
Singapore
“On this, the Manpower Ministry has to give its Conciliation Officers more powers, so that they can take to task employers or their representatives who are not showing the kind of support that they should give to good industrial relations practices. It is not just by signing papers, because this is not a legal document.”
“This need for cash deposit should be reviewed, and the use of Medisave should be considered for expensive outpatient treatment. Another factor to be reviewed is the difficulty one faces if he chooses to downgrade to a subsidised ward later if he faces hardship.”
“If the economy continues to do well, they look forward to the Government announcing some rebates or benefits during the National Day Rally speech by the Prime Minister. Sir, I support the motion. Column No : 783 VISIT OF MR ARUN SHOURIE, MINISTER OF DISINVESTMENT AND COMMUNICATIONS & INFORMATION TECHNOLOGY, INDIA (Presence in Gallery)”
“I would like to thank the Deputy Prime Minister for his kind gesture. Column No : 3121 FINANCIAL LITERACY OF SINGAPOREANS (Improvement and education) 4.”
“It must look at the current costs of essential goods - medical cost, public transport, and the cost of education - and see how best it could be adjusted to defray the day-to-day expenses of the workers in taking care of themselves and their families. To what extent is the Government prepared to absorb such costs?”
“I hope the Agency will give its due consideration for job redesigning and retraining of workers so that Singaporeans could take up jobs currently done by foreigners.”
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“If the economy continues to do well, they look forward to the Government announcing some rebates or benefits during the National Day Rally speech by the Prime Minister. Sir, I support the motion. Column No : 783 VISIT OF MR ARUN SHOURIE, MINISTER OF DISINVESTMENT AND COMMUNICATIONS & INFORMATION TECHNOLOGY, INDIA (Presence in Gallery)”
“In this context, I have two suggestions to make: (1) Let us just not focus our attention on the childless couple, or the couple with one child, and the better educated. We should broaden the net and encourage all Singaporeans to have three children. (2) We should grant monetary assistance as follows: (a) $500 per month for the infant care of the 1st and 2nd child to the mother, grandparents, relatives or friends who look after the child; (b) $300 per month for the childcare subsidy of the 1st and 2nd child, either to the mother, grandparents, relatives or friends who look after the child; (c) $300 per month for the infant care of the 3rd child; and (d) $200 per month for the childcare of the 3rd child. The childcare subsidy could be given till the 12th birthday of the child. Sir, these suggestions may cost the Government a considerable amount, but then it is for a very worthy purpose, that is, our long-term survival as a nation, and it is similar to what we spend for defence of our nation. Sir, before concluding, I wish to thank the Government for raising the Skills Development Fund salary ceiling from $1,500 to $1,800, as this would benefit more workers. I am equally glad with the $100 million allocated by the Government into Medifund. But this alone is not sufficient. The Government should take every step possible to reduce healthcare cost so that Singaporeans by and large could manage their own healthcare cost. In this context, the introduction of a nation-wide health insurance is critical. Sir, workers in the 50 and above age group are grateful to the Government's gesture of topping up their Medisave account. But, at the same time, many low-income Singaporeans were saddened that a number of rebates given last year were not further extended this year.”
“I am sure Minister Lim Hng Kiang and his committee would consider them seriously. I wish to add two more suggestions. But before that, let me mention the feedback from a number of our young union members who have got married recently. Their reaction is that they are, of course, definitely passionate about having children, otherwise why should they get married, they asked me. They are definitely passionate, but besides being passionate, they need money to take care of their family. And cost is a critical factor, whether we agree or not. That is one of the important factors in raising a family and a child. If you look at our 2-child policy, even the Government has always said, "Stop at two. If you can afford more it, have more." Affordability is the critical issue. By passion alone, we cannot raise a family or, by compassion, family values. That is all critical, but beyond that I think you need to actually provide some financial assistance. It is good to have quite a lot of foreigners to come and live here and work with us. But that would not actually substitute our own Singaporeans having their own babies and making sure the nation continues, because this is the culture that we have built up for nearly 30-40 years. Foreigners would never come and fill up the gap completely. They may fill it up temporarily. So we should not totally rely on them. There were many suggestions made. Yes, of course, we can encourage more foreigners to sink their roots in Singapore. But I think it is equally important for Singaporeans to have their own children and make sure the nation progresses further. And that is very critical.”
“In this year's Budget, the Government has given its strong desire to address the issue of falling birth rate amongst Singaporeans. Earlier speakers have given many suggestions and I agree with most of them. I would not want to dwell on it, but I am concerned with some of the suggestions. The suggestions of granting six months' maternity leave and giving fathers parental leave are all very ideal proposals. I, too, wish this could be possible. But, realistically, as a trade unionist, I get very worried about its consequences. I am very concerned for our female workers. After going for six months' maternity leave, they may return to realise that their jobs have been out-sourced or best-sourced, and they have to look for another job, or permanently stay at home. As for the male workers, the employers already show their unhappiness when their workers go for their National Service training, and if we further add that with long paternal or parental leave, the companies may just pack up and leave Singapore. The whole family would then be in serious trouble. Sir, in Singapore, many are dual-income families for economic reasons. So whatever we do, it should not affect the employment of the male or female worker. Just to illustrate a point, even Government-linked companies strictly follow the Employment Act which states that employers need not have to grant paid maternity leave if the employee has worked less than six months for them. Now, this is the harsh reality of the business world. Sir, with all these constraints, what are the solutions? The solutions and funds needed for it must come from the Government to address a critical long-term issue of the nation. Yesterday and today, hon. Members of this House have give a number of suggestions.”
“Here, I wish to highlight several feedback I have received from many Singaporeans: (1) Many Singaporeans are worried that the introduction of the "S" Pass will further erode their chance of getting a job in a bleak job market. (2) Many are of the view that employers may opt for all foreigners as they do not have to pay CPF and other benefits when they hire foreigners. (3) Sir, even though there is a cap of 5%, it is still very worrying, especially in a bleak job market, where many Singaporeans still remain unemployed. The Government should take note that the "S" Pass is targeted at those earning $1,800 per month. This is close to the median level salary in Singapore. Currently, many Singaporeans who have lost their jobs in the middle level have great difficulty in getting back their job. The introduction of "S" Pass would further add to their woes. To make matters worse, outsourcing and best sourcing have made many Singaporeans lose their jobs. A number of these outsourced or best sourced jobs have gone to foreigners. Here, many Singaporeans I have spoken to wish that the Government would closely monitor employers who engage foreigners rather than Singaporeans. The Government could make it difficult for such employers to hire foreigners by saying this, "I am not suggesting that we should totally stop hiring foreigners. Neither am I against foreign talent. But we should not do it to the detriment of Singaporeans." What needs to be done is that the number of foreigners employed and their dependants who also seek jobs in Singapore should be maintained at a level at which it would not affect job opportunities of Singaporeans. Next, I wish to move on to a hotly-debated subject in this House.”
“Mr Speaker, Sir, thank you for allowing me to join in this debate. This year's Budget is a pro-business budget, particularly with the reduction in corporate tax from 22% to 20% which would cost the Government $800 million. Besides this tax reduction, there are a number of initiatives to help the business community. The way I and many workers view this year's Budget is one which is positioned to enhance our competitiveness and attract more investments. We hope all these will translate into ensuring job security and more employment opportunities for workers. I believe that this year's Budget and earlier initiatives, such as CPF cuts and wage restructuring, are very strong signals to the business community of Singapore's desire to remain a competitive place for their investments. Having done all this is not enough. The Government must ensure that Singaporeans benefit from the efforts and Government's initiatives. Here, I wish to make the following suggestions: First, employers should make every effort to train and employ Singaporeans in available jobs and newly created jobs. The Government and its agencies should proactively train Singaporean workers, especially in jobs coming from newer investments and in the service industry where there is a shortage for workers, especially in the IT and nursing services, rather than allowing employers the easy way out by engaging foreigners. Tax incentives in future should be targeted at companies which employ majority Singaporean workers or other Government assistance should be given to such employers to incentivise them to employ more Singaporeans. Next, allow me to touch on the newly introduced "S" Pass for foreigners.”
“I would like to thank the Deputy Prime Minister for his kind gesture. Column No : 3121 FINANCIAL LITERACY OF SINGAPOREANS (Improvement and education) 4. Mrs Lim Hwee Hua asked the Deputy Prime Minister and Minister for Finance, given the increasing concerns over financial agents acting on consumer's ignorance to market investment products and financial services, whether the Government has any plans to improve the financial literacy of Singaporeans and to educate them on how to better manage their financial resources, make sound investment choices and plan for their financial future.”
“It must look at the current costs of essential goods - medical cost, public transport, and the cost of education - and see how best it could be adjusted to defray the day-to-day expenses of the workers in taking care of themselves and their families. To what extent is the Government prepared to absorb such costs? This is what the public expects the Government to seriously think about. Sir, in conclusion, this is a very painful adjustment and Singaporeans will definitely rally behind the Government and the Government must equally give all the support. The employers must not be providing lip service but really clear-cut support to workers who are employed under their hands.”
“" The answer is actually they are not going to call them back. So, I think Government needs to do something drastic rather than just make statements. I really support the Prime Minister's call. I know he feels for such workers. But feeling alone is not enough, he must do more than feeling. So we hope that he would do more than that. Coming to the Minimum Sum and Medisave Minimum Sum, I have a quick look at it. By year 2013, a lot of lower-income workers will not be able to draw any sum when they reach 55 - it looks like that - unless there is a hefty wage increase. For such workers, they depend a lot on age 55 to withdraw for their essential needs, and they actually postpone these essential needs until 55. So maybe the Government should look at how it could help them. I am not suggesting help for those who are going to Batam or squandering their money with another family. I am talking about those who really need the help. So I think they have to take a look, and maybe the Government can give projection figures - in 2013, how much will such workers be able to draw out. That will give them some level of comfort. So just figures alone would not be enough. I hope the Government will come up with more information in these areas. Sir, Singapore workers have stood by the Government through a number of crises, and that has been our greatest advantage in attracting investments and keeping investments in Singapore. And we will continue to do so. There is no reason that the workers will react differently. We have the ground feel and we know that the workers will rally behind us. But, at the same time, the workers would also like the Government to do whatever it can to ease their pain.”
“Government should consider the reduction of interest rates to mortgage loans of HDB, and I think this is within the capacity of the Government. The Government has always shown a lot of concern for our Singapore citizens. Sir, I now come back to the announcement made by the Prime Minister earlier on on contributions rates, especially for workers aged 50 to 55. In fact, at the National Day Rally, the Prime Minister had again made a call for employers to employ older workers. But I do not like to use the term "older workers" because sometimes that puts off a lot of employers also. And I also belong to that age group. So I would rather use the term "workers aged 50 to 55 and beyond". The problem here is not just cutting CPF. Because if you can cut CPF and bring results, we will support it. If you want to bring it lower, that is a three-step reduction for such workers. And if it brings the desired results, we will definitely go all the way. It is better to have a job than not to have a job, and a lower CPF does not matter. But the problem here is because a lot of employers have a cheaper alternative, that is, foreign workers. They give all kinds of excuses in employing them. One of the excuses is that they say the workers are choosy. That is not true for every worker. We should not just across-the-board label all Singaporeans as being choosy. There are many workers who are desperately in need of a job, and I have come across many in my work as a unionist. And it really pains me because there are a number of people requesting and pleading for jobs, and they are even prepared to work for $800 to $900. But many employers just give all kinds of excuses, and they just give them a very political answer, "We will definitely call you back.”
“(2) The Government must go public on the full package of cost-cutting measures and introduce additional measures, if necessary, that it needs to put in place in order to maintain our competitive edge and not just highlight on wage cut, CPF cut and retrenchment only. The ground must be given a full picture, only then can they be convinced. (3) Employers, on the other hand, must not take advantage of the situation. They must acknowledge the sacrifice made by the workers during these hard times by compensating them equitably during good times. Employers who are currently profitable and accumulate additional gains because of the CPF cut, should give back to workers part of the additional gains in the form of special bonus or other methods. Profitable MNCs and Government-linked companies should publicly support this call, rather than giving lame excuses. In this context, I support and fully appreciate the Prime Minister's call for such companies to come forward to reward such workers in these industries. (4) The Government must give a clear signal to MNCs that they are really operating in our island state and to potential investors that it is prepared to look at all possibilities to help the companies maintain their competitiveness and that they have a stake in Singapore. Mr Speaker, Sir, it is very reassuring to hear that the Government expressly states that no Singaporean will lose his or her home or be denied of medical care because of the cut in CPF contributions, and that the banks have also stated that they will be flexible if it affects the servicing of the housing loans. The Government must introduce long-term help to those with mortgage loans rather than deferring the payments. Any deferment would cost additional expenditure in the form of interest.”
“Mr Speaker, Sir, first, allow me to thank the Prime Minister and his Cabinet colleagues for having a lower CPF cut by just 3%, and not all the way to 6%, and bringing progressive changes to other components in the CPF scheme. Sir, we have to accept the fact that under the current economic uncertainty and the increase in unemployment, any measure taken by the Government in order to save jobs and maintain our competitiveness and, in this instance, to cut wage costs through the CPF component, is done out of necessity. The workforce is fully aware of the volatile situation in the job market. We understand and fully comprehend how crucial it is to act now and, therefore, I sincerely endorse these recommendations. Yesterday night we had a discussion and a dialogue with our group of union leaders. We had a very frank discussion for two hours. At the end of the day, everyone realised how bad the situation was on the ground, and they realised that changes needed to be brought immediately, and they supported unanimously the changes. But they also highlighted a number of viewpoints. I wish to express some of my viewpoints and their concerns too: (1) It must be accepted that any cut in CPF would cause pain and hardship to workers. Workers are required to make sacrifices to save jobs and to help increase competitiveness. Workers understand these reasons and support the steps taken. But workers' sacrifice should not go to waste or just to increase the employer's profitability. Workers wish to see a drastic drop in the number of workers retrenched. To this end, the Government-linked companies and large MNCs must set an example in not resorting to retrenchment as far as possible.”
“I hope the Agency will give its due consideration for job redesigning and retraining of workers so that Singaporeans could take up jobs currently done by foreigners. Sir, for this Agency to succeed in its mission, I call upon the employers to play a greater role and give every assistance and adopt a proactive approach to workers' training and retraining. Finally, the Agency must set up certain targets for itself, otherwise it will be just words and statements. So I would like the Agency to come up with targets, especially for the 400,000 workers who have below Primary 6 education and low-skilled. They should set up targets, and after one year, in this House, we should take stock of what the Agency has done for such workers. Then we will be really approaching the problem head-on. Sir, on this note, I support the Bill.”
“In this respect, Sir; I wish to say that this has been a perennial problem for the shift workers; (6) To explore the possibility of setting up a database with information on the structural and technological changes in the employment and business sectors, which could be used as a guideline in formulating training programmes that would suit the requirement of the industries and hence the employability of the workers. Employers have a greater role to play in this respect, with the unions helping to motivate the workers to accept training. Sir, the most important challenge facing us today is the plight of the low income workers. Despite the affluence that we seem to see around us, we still have approximately 400,000 workers with low education and skills and amongst them, there are quite a number earning just above the poverty line. Sir, we need persistent efforts and find innovative ways to help these groups of workers, who are our citizens, to break out of the poverty trap and to allow them to have a stake in the economic progress of our country. Macro-level policy of providing training facilities and subsidies alone will not be effective to these workers. A much more holistic approach is needed, such as providing skills training during working hours and make provision so that family commitment will not be a stumbling block for them to go for training. I would suggest that a special task force be set up within the Agency to address this problem not only at the macro level but also at the individual worker's level. Sir, before concluding, I wish to also highlight another issue of work redesigning. This has become an important issue with the number of retrenchments taking place and the number of Singaporeans out of work.”
“Mr Speaker, Sir, I fully support the Bill for the formation of the Singapore Workforce Development Agency. Being a trade unionist, I am deeply concerned and involved in workers' training. I am very glad that we will now have a Government agency that would look into skills upgrading, training and retraining of our workers - the only natural resource of the nation. It is very timely and appropriate under the current industrial environment where workers need to keep pace with technological changes and the structural change of our economy. It would also add emphasis on the importance of training and retraining of workers to the employers. And, especially now, Sir, when we are experiencing an increase in retrenchment of workers in the various industrial sectors, the relevance and urgency to have such an Agency is very obvious. Sir, I would like to outline some of the areas that I hope the Agency would give additional attention when carrying out its functions. (1) Provide training for older workers on jobs that are available in the industry and suit their age profile; (2) Identify needed skills in the various industries and provide opportunities for multi-skill training for the workers which would enhance their employability; (3) To equip professionals and executives with relevant skills needed for the emerging economy; (4) Explore the possibility of providing entrepreneurial training; (5) Collaborate with the training providers, adult education agencies and employers to formulate a training schedule that would suit and allow the shift workers to be trained and upgrade their skills and potential.”
“Sir, the Minister has said that 9 out of 10 jobs went to residents of Singapore. Could he give a breakdown of how many of them are Singaporeans and how many of them are PRs, and whether there is any other category in these figures? The other point which I would like to raise is that he has mentioned that many Singaporeans do not wish to take up certain jobs. There seems to be a perception problem because, on the ground, the reaction is different. Many Singaporeans feel that they have not been taken in for jobs for various reasons. Even when retrenchments occur, particularly in our factory or workplace, Singaporeans are given the pink notice while foreigners are still working. So there could be varied reasons. But this kind of feeling creates a lot of unhappiness among Singaporeans. I think it is important to periodically advise employers to also explain how the retrenchment exercise has taken place. Besides that, there are a lot of jobs which the Minister has mentioned. Can he explain to us how best he could redesign jobs or is there any greater emphasis that is placed on redesigning jobs so that more Singaporeans could take up such jobs currently being taken by foreigners?”
“Sir, our education system has attained a very high standard. But still many are of the view that our education system is still too structured. It becomes, what is called, a paper chase learning, where what is important is achieving high grades. There is nothing wrong with that. But I think more than that needs to be done. And students are depending on rote learning and model answers to questions. Sir, the economic environment is rapidly changing and the employability of our future workers depends on the adaptability of the individual job seekers. This demands agility, creativity, innovation and an open mindset to continuous learning and multi-tasking. How well is our education system preparing our students for such an environment? Here, it is also crucial that our training strategy for the workers be modified to meet this increasing demand. We could improvise the curriculum of our vocational institutions that could help to bring out the creativity and potential of the workers who attend such training. Sir, I would appreciate it if the Minister could enlighten on the following. Is the Ministry relooking at the school curriculum at all levels to encourage students to be more creative, rather than conforming to model answers? Are schools given the flexibility to introduce creative learning at a pace that suits their students' intellect?”
“Sir, affordability for healthcare services has become a major concern of many Singaporeans. This has been highlighted by many Members who spoke earlier and I, too, share a similar concern. With the current economic downturn, many workers are retrenched and a vast majority of workers also experience wage cuts or a wage freeze. Sir, medical cost has become a major burden on the ordinary workers, especially for those who are affected by the economic downturn, and many Singaporeans are facing reality by seeking medical treatment at subsidised wards. I wish to ask the Minister whether more subsidised wards in Government or restructured hospitals would be provided if the situation warrants. At the same time, many workers have raised their concerns to me. Many workers who had sought medical treatment provided by their employers at non-subsidised rates before could no longer continue the same. They could have been retrenched or retired, and could not continue with the same treatment at non-subsidised rates. Would the Minister allow such Singaporeans, who have earlier sought medical treatment at non-subsidised rates at specialist outpatient clinics or wards, to switch to subsidised specialist outpatient clinics or wards? Finally, would he consider freezing all healthcare cost increases for the next two years for subsidised patients? Or, at least, if cost increase is necessary, can it be kept as low as possible? Sir, we need a humane approach in dealing with this human problem. This will go a long way in further strengthening the bond between the people and the Government.”
“Madam, I do agree with what Mr Othman said. Otherwise, I would be doing something totally unique. I do support all the other speakers. The number of speakers indicates the criticality and severity of the problem on the ground. I hope that the Minister, who has rejected it earlier on, will reconsider again the eligibility criteria and having more rental flats. I also wish that he would give more flexibility to those who still want to own their homes but have difficulty in paying.”
“So we should take extra effort in monitoring the situation. Another concern which needs to be addressed is that the unemployed are told that there are still jobs available, some of which are reflected on the MOM website. Unfortunately, this does not square with the perception on the ground. A number of unemployed workers have indicated that after many tries, they are still unable to get jobs. MOM needs to identify the reasons, whether it is skills mismatch, employers' preference for certain age groups of workers, or other reasons. MOM should put in place appropriate measures to resolve this issue of perception.”
“But, at the same time, more should be done in the area of redesigning jobs and multi-tasking, so that locals could do jobs, such as cleaning and others mainly done by foreigners, and earn decent wages. I am pleased with MOM's joint efforts with NTUC in helping retrenched workers, but more needs to be done during this difficult time. 12.15 pm I do not wish to dwell further on placement and training schemes, as the Minister for Manpower has adequately covered it. But one other area in training which I need to highlight is the training of shift employees. They have great difficulties attending training programmes, and this needs to be addressed by CET. Today, the challenges are different and daunting, and it needs more efforts. I do agree with Mdm Halimah Yacob that we should monitor the situation very carefully. We are not suggesting that all the foreign workers should be sent back. A lot of concerns have been raised. Workers are interested to carry on with their jobs.”
“Sir, unemployment is expected to hit the highest level this time and this is further aggravated with retrenchments. During such a time, what we should not do is to create confusion on the ground or, worse still, instill fears in the minds of the workers with loose talks. Such acts will only lead to the loss of morale and confidence. Then half the battle is lost in the process of repositioning Singapore. Employers should not take retrenchment lightly. Retrenchment should be carried out only when it is absolutely necessary, that too after exhausting all other avenues. I say this because the current unemployment situation is bad and it should not be further aggravated as far as possible. The social and psychological impact caused by unemployment could lead to other negative and sometimes tragic circumstances. So we should exercise care and, at the same time, help retrenched workers to find new jobs. Sir, during this bleak unemployment situation, the hardest hit are the old and the less educated. These are the workers who have contributed immensely during our formative years of nation building. I am glad to hear the Minister saying earlier that they are trying to do a lot to help these workers. I hope the Ministry will do more in helping them get jobs, especially by helping or giving a certain amount of subsidies to employers who hire them. We could also create some employment opportunities or reserve certain categories of jobs for such workers besides training them. The Ministry should also encourage more employers to use the People for Jobs Traineeship scheme. Would greater incentives be introduced to enthuse more employers? Sir, I do agree that workers should not be choosy.”
“Third, can the Minister update the House on the various steps taken to eradicate or minimise any terrorist acts, including the progress and cooperation levels from regional countries and intelligence agencies?”
“Sir, the threat of terrorism remains, and this may be further heightened with the possibility of war in Iraq. Has enough been done for our homeland security, especially in the area of engaging Singaporeans from all walks of life in taking ownership of the security of our country? I raise this question as a result of my experience as a union leader. Recently, workers in Jurong Island and other important installations elsewhere in Singapore were asked to fill up questionnaire forms, indicating their family background and other very personal data, for the purpose of security as required by the authorities. I represent some of these workers. The workers were reluctant to provide some of the information. They were reluctant because of a lack of awareness of the seriousness of the issue at stake. The union understood the importance of the requirement and met the workers to explain the issue, and eventually everyone came forward to provide the information willingly. Homeland security cannot be just left to the Government. Every Singaporean has a role to play. I sense a certain degree of apathy amongst many Singaporeans, and this was also pointed out by Prof. Chin earlier. This is the reality on the ground. Sir, this brings me to ask the Minister the following questions: First, what are the steps taken by the Ministry to educate Singaporeans on dealing with terrorist threats, including what to do if an incident occurs? Second, does the Ministry plan to involve the public on a greater level in dealing with the threats at places of work and public places, such as through community and work place watch activities?”
“What are the steps taken by his Ministry to eradicate or minimise such credit card fraud? Are the security features of credit cards issued in Singapore adequate? More importantly, will the problem of credit card fraud undermine Singapore's sound reputation and set us back in growing our financial services industry? Although credit card is only one small part of consumer banking in the broad range of financial services we provide, we must nonetheless stamp out such problems before they take root and cause permanent damage to our reputation as a stable, safe and credible international financial centre.”
“Sir, in this year's Budget, the intention to grow the service sector as the twin engine of growth has been given great importance. Financial services are an important component of the overall service industry. Sir, Singapore is today a major international financial centre. Over the years, we have attracted many reputable international financial institutions to set up operations in Singapore. We were able to attract them because of our sound economic and financial fundamentals. We have been ranked by agencies, such as the World Economic Forum, Global Competitive Needs Report, as among the top most sophisticated financial markets in the world. All these have translated into high value and good paying jobs. Sir, to further illustrate this point, the financial services industry accounts for 11.6% of Singapore's total GDP in year 2001, compared to 1978 when its share of GDP was 5%. As for employment, each share has risen from 2.7% in 1978 to 4.6% in year 2001. We have made sound achievements and we have the potential to go further in the area of economic growth and, more importantly, in the area of employment creation. It was reported in the media recently that some US websites have advised online merchants to stop accepting all Singapore issued credit cards. In fact, Singapore was put on the blacklist of countries prone to online fraud. I also read of a case where a man was sentenced in court on 28th February this year for using a fake credit card. When I read those reports, the immediate thing that came to my mind was that we must not allow a few unscrupulous individuals to delay our efforts to turn Singapore into a global financial centre. In view of this, I would like to ask the Finance Minister the following: to what extent is credit card fraud prevalent in Singapore?”
“The additional allocation of funds for Skills Redevelopment Programme, Lifelong Learning Fund and Medifund are steps in the right direction. Taken together with the earlier announcements of ERS and the phased-in introduction of GST, there is no doubt that there is help available. These various assistance schemes clearly show that the Government is committed to its social contract with the people of Singapore. For the future, I urge the Government to continue to target more help to the most needy, the unemployed, the poorer or unfortunate Singaporeans and their families. I suggest an opt-out donation mechanism to a central hardship fund be explored, so that better-off Singaporeans can donate the shares or benefits granted by the Government to those in greater need. Sir, in conclusion, the challenges ahead of us are formidable, one of the most difficult facing our nation since independence. In the past, we have worked together and remained focused on our objectives. This has led to continuous growth and prosperity for all of us. This is the approach we must continue to take. We must never allow minor problems or even setbacks to distract or discourage us. The greatest welfare to people is jobs. And I strongly urge the Government to do all that is necessary for the preservation and creation of jobs. Policies to bring about this should be implemented fairly and humanely, especially to those who are affected most. Together, let us seize the opportunity in uncertainty and strive for a better Singapore. I support the motion.”
“Enhancing human capital. I applaud Government's move to set up a new statutory board under MOM to promote adult continuing education and training. The new statutory board will oversee our continuing education and training efforts. The details of the statutory board have not been announced, but I would like to see the new statutory board addressing the following: (1) Enhance the employability of older workers who have mainly knowledge in job-specific or technology-specific skills. (2) Help workers make career switches. (3) Continual learning and skills upgrading for professionals, executives and self-employed. (4) Help the structurally unemployed gain new skills and find new jobs. (5) Manage a database of important information emerging from the rapid structural changes. This will ensure optimum investment in training and retraining, so as to enhance workers' employability and help them adapt quickly to changes. (6) Strengthen synergies with other important partners such as EDB, NTUC, SNEF, and others. These strong synergies will help identify the type of skills needed for the jobs that new investments will bring and help prepare workers through training and skills upgrading. With the concerted efforts of all partners working in tandem with the new statutory board, we can collectively and confidently address the issues of skills gap, wage gap and structural unemployment. Mr Deputy Speaker, Sir, during this period of uncertainty and tight budget position, the initiatives by the Government to help Singaporeans, especially the poorer ones, must be lauded. The measures would lighten the load of Singaporeans. Assistance such as Utilities Save and additional S&C rebates will help workers and Singaporeans.”
“First, wages and labour costs. We should continue to maintain labour cost competitiveness and raise productivity. We cannot just focus on cutting wages and retrenching workers. We have to build up the flexible wage component in our wage system, such as through monthly variable components and variable bonuses. To sustain employability of workers, wages must be directly linked to productivity improvement. I strongly urge employers to involve their employees in efforts to improve productivity for mutual benefit. Second, land and related costs. Are high land costs and other factors making Singapore uncompetitive? We have to further explore whether the land pricing and other related costs are artificially high in Singapore and not adhering to current market factors. Third, regulatory and statutory costs. As a union leader, I have come across concerns from businesses that regulatory and compliance costs on companies are high in Singapore. These have affected businesses and our competitiveness. Will more steps be taken to address these concerns? Sir, the Deputy Prime Minister and Finance Minister has announced a number of measures to make it attractive for businesses to invest in Singapore. At the same time, he has announced various rebates and reductions for businesses until year's end. Would it not be better if such rebates and reductions are extended for another three years? Further, why not freeze all other cost increases at the same time for another three years? I believe all these suggestions will greatly help businesses in Singapore and attract new ones, which will result in the preservation and creation of jobs for Singaporeans. Retrenchments can be minimised and not make the unemployment situation worse. This will boost the confidence level of Singaporeans.”
“Mr Deputy Speaker, thank you for allowing me to join in this debate. My main focus would be on enhancing competitiveness, thereby helping Singaporeans. This year's Budget is presented during a time when Singapore's economy is at a crossroad. We are undergoing a structural transformation and facing greater competition due to rapid globalisation. Ahead of us are the uncertainties prevailing in major economies and the possibility of war in Iraq. This is a tough time. In the last couple of years, many Singaporeans are severely affected by the economic downturn. Many workers have lost their jobs and finding it harder to be re-employed. Those in employment are very worried about job security. I will further elaborate on this during the debate in the Committee of Supply. Sir, the message of seizing opportunity in uncertainty in Deputy Prime Minister's Budget speech is timely, given the current situation. The measures proposed by the Deputy Prime Minister and Finance Minister in his Budget speech to restructure our economy are crucial for our economic survival. Some of them are painful, such as the deferment of CPF restoration, but I understand why they are absolutely necessary for retaining and attracting businesses to Singapore. These will create good jobs and ensure continued prosperity for all Singaporeans. Allow me to elaborate on strengthening competitiveness for the creation of jobs and wealth. When we talk about competitiveness and flexibility, we should not come to the immediate conclusion that the only factors are wages and labour costs. Yes, wages and labour costs are significant, but there are other factors such as land and related costs, regulatory and statutory costs, transportation, taxes and other business costs. Let me elaborate further.”
“This is to maximise our chances for the future. If we can do all these things, internally and externally, then I believe that, when the global economic cycle turns up again, we will move along quickly. The key is to be very alert to changing trends and to accept that the world in front of us will look very different from the world behind us. Can we make the adjustments? Can our workers make the adjustments? I believe that our younger Singaporeans who are very well educated can. Yes, they may have to accept lower wages when they enter the job market, some of them have got wealthy parents, so they prefer to take a few months off to see the world and to understand more things. Well, fine. Our big worry is the older workers, particularly those who are either used to much higher income, or those who never had the education because they grew up in a different period of Singapore's history. So we must do everything possible to help them. They must also make the adjustment and accept that conditions have changed and the things which they would not have considered in the past, they should now consider for the future. And we must help them, if they are in difficulty, and certainly help their children so that the next generation will be as well equipped as possible. If we do all these things, then I think we are in good shape.”
“So in the factory, there are mostly foreign workers, in the financial district, there are our lawyers, they work around the clock, and there are restaurants to service them, there are buses, trains, taxis, to bring them from point A to point B. We must make all the internal adjustments, where necessary, to ensure that our economy remains competitive in the new world ahead of us - lowering taxes, CPF restructuring, labour market flexibility, making sure that our infrastructure is tip-top, investing in education, in worker retraining, R&D. So all these issues will be addressed comprehensively by the Economic Review Committee. Externally, we have got to position ourselves to exploit new growth potential in the region. As Members are aware, we have been working very hard to establish free trade agreements with the major economies. We now have free trade agreements with Australia and New Zealand, with the European Free Trade Area, with Japan, and we recently concluded a free trade agreement with the US which, hopefully, should become operational early next year. And we are not stopping there. We are working to strengthen economic integration in the region, enhance our links to China, to India and to other parts of the world. Looking ahead, there will be two big balloons inflating - China, on the one hand, and India, on the other. And we must position ourselves so that whatever happens to the region around us, we will lift with them, in other words, strengthen, build upon our strong links to the US, Europe, Japan, build up new links to India and China, and then work our guts out to consolidate the region so that we will grow along with all the others. It is a diversified strategy. It does not depend on any one single link alone.”
“Sir, I would like to commend MTI and the economic agencies for all the efforts taken in attracting investments and for the creation of jobs for Singaporeans. But as the Minister has indicated, there are great uncertainties in this current period. What are the steps his Ministry has taken to keep investments which have come into Singapore to remain in Singapore? At the same time, what further economic stimulus packages can be introduced to attract investments, so that there will be greater job creation? And in this difficult period, what are the other measures being taken to help workers who sincerely could not find a job? BG George Yong-Boon Yeo: Mr Speaker, Sir, I thank the NMP for his question about the competitiveness of the Singapore economy. There are really two sets of issues which we have got to address. One is the internal factors which will enhance our international competitiveness and, second, our external economic linkages. The internal factors have been addressed comprehensively by the Economic Review Committee which report will be coming out quite soon. And I am sure when the report comes out, there will be a major debate in this Chamber. The basic ideas are quite simple. We have got to keep costs down, reduce taxes, improve labour market flexibility so that, as our economy becomes more sophisticated and variegated, our labour market is diverse and sophisticated enough to make adjustments. Just a simple example. Today, if you drive through the city in the middle of the night, it is alive and buzzing - so many lights are on, so many activities are taking place. To power such an economy, our overall labour market situation must adapt.”
“Mr Speaker, Sir, first allow me to applaud the Government's decision to stagger the GST increase. In fact, the views and concerns of workers have been adequately addressed. At the same time, I am also glad that the ERS shares will be paid accordingly as announced earlier. But I have one other request, which is that the Government will consider and monitor the economic conditions. And, if there is a need, make a further review whether there is a need to introduce GST further to 5% in 2004, but definitely the economic condition in 2003 has to be taken into account. I am also glad that the workers' views and points have been carefully considered by the Government and I do not think they have been put aside by the Government. They are very happy and I wish to thank, on behalf of all workers, the Government's decision and to bring about a relief to workers during these difficult times.”
“All right. Will the Senior Minister of State consider having a dialogue session with the unions and also at the same time to work out specific programmes where the FTAs can positively benefit workers in general and where are the areas we need to identify to train them up?”
“Sir, I am very glad to hear that the Senior Minister of State will be briefing the unions. As a suggestion, maybe we could try ---”
“UPAGE and SOASPOWER are now in the process of merging into a single union, representing the interest of employees in the power and gas industries. This will further strengthen the union and its strong links with the companies. The senior managements of Singapore Power, Power Seraya and Senoko Power, acknowledging the benefits of such a pact, lend further support by joining as general branch union members. Mdm Deputy Speaker, earlier on, Mdm Ho mentioned about repealing section 25. I disagree with her view. In fact, section 25 is no longer relevant. Besides that, she also mentioned about representation of non-union members. I think the way to go forward is for everyone to join a union. If there is no union in their workplace and if Members of Parliament are in senior positions in companies, they should encourage the formation of unions. I think that is the way to go forward and more should join the unions and representation of executives or even senior management can be properly handled through a union. On this note, Mdm Deputy Speaker, I fully support the Bill.”
“Therefore, I strongly believe that these amendments to allow the rank-and-file unions to represent the executives will pave the way to a smooth transition in effecting the changes. I say this with strong conviction because, as the Executive Secretary of the Union of Power and Gas Employees (UPAGE) and the Senior Officers Association of Singapore (SOASPOWER), a house union, I saw and experienced the practicality and effectiveness when one union represents both the executive and non-executive employees of the company. Mdm Deputy Speaker, please allow me to elaborate a little on this experience. In April 2001, the power industry was liberalised. As a result, the generation companies, namely, Senoko Power Limited and Power Seraya Limited were divested and no longer form part of the Singapore Power group. They each became an entity of its own. The managerial and executive staff of the companies thus could no longer be represented by SOASPOWER, a house union. Jointly, UPAGE and SOASPOWER highlighted this difficult situation to the management of the two companies. The senior management of Senoko Power and Power Seraya saw the merit of having one union to represent both the executive and non-executive employees. They allowed UPAGE, a rank-and-file industry union, to represent both categories of their employees. Thus, UPAGE made parallel representations for both the executives and non-executives on industrial issues arising out of the divestment of the two generation companies. The liberalisation and divestment process went very smoothly with no effect on the function and operation of the companies involved. Today, we have a highly productive workforce, working towards the betterment of the companies. Conflict of interest is a non-issue.”
“Mdm Deputy Speaker, I agree with the amendments that will allow rank-and-file unions to represent employees in managerial and executive positions. These amendments will provide protection to these executives, and encourage greater bonding and cohesion amongst different categories of employees. This bonding will, in turn, promote harmony at workplaces and generate an increase in productivity. I particularly support the intent of the Bill. It will avoid multiple unions in one organisation. A union representing executive and non-executive employees will be in a better position to understand the workings and needs of a company in the broader sense. It can work with the company to achieve its objectives without undermining the interests of all the employees. In a knowledge-based economy, the composition of our workforce constantly changes. The new entrants into the job market are mostly diploma and degree holders. They have different needs and aspirations. The economy needs them. It is therefore in the interest of the nation that they be given fair and adequate protection. Madam, as we are all aware, the only thing that is constant in the industry and business are the changes. Restructuring, liberalisation, mergers and globalisation become the norm in both the private and public sectors. These changes, if not handled properly, can destabilise the strong industrial harmony and stability that we have built and sustained through tripartie partnership. Hence, it is more critical now that we place a mechanism that can respond quickly and efficiently to address these changes, and minimise the impact on the workers.”
“Maybe it will help if the public transport operators appoint one or two laymen, people who can understand their customers, on the Board of Directors. Maybe it will also help if there is more than just one unionist on the Public Transport Council to provide a stronger voice for the working class.”
“Last year, for those who paid cash, feeder bus fares, ie, airconditioned buses, went up by a big jump, from 60 cents to 70 cents. That rankles, and it still rankles. Now, it goes up another 10 cents, together with other fare adjustments. The story is the same for non-airconditioned buses. It went up from 50 cents to 60 cents, and now to 70 cents. Those who use the ez-link card can now pay 58 cents for non-air-conditioned buses and 63 cents for airconditioned buses. After one week, most commuters find the change not so significant, but there are others who do. The feeder bus fare is still high in their view, especially for short distances. I think the problem is not whether the fare increase is large or small. It is how it is implemented. Why the hefty jump in feeder fares? Hardest hit are the housewives and retirees. Why not small steps? I cannot understand why the old fare card cannot allow increases of less than 5 cents. If there was a software or hardware problem, why was it not fixed earlier? Now, there is the ez-link card. It is new. Surely, the public transport operators must expect teething problems in implementation. If so, was it wise to raise fares at the same time? Do they know that those who do not use cards are the poorest Singaporeans? They cannot afford it. They do odd jobs, and so they do not have enough money to store in the card, or they are afraid to use it, especially the old. So they use cash. The fare increase is highest for those who pay cash. So those who cannot afford it are the ones who pay most. Should not the public transport operators do something for them? The basic issue seems to be not so much whether fares can go up, but the timing. How it is done, and whether public transport operators understand their customers?”
“Mr Deputy Speaker, Sir, I was a member of the Cost Review Committee. It was convened twice in 1993 and 1996. At that time, people were very unhappy about the cost of living. In 1996, people were concerned about transport cost. At the same time, they were concerned about other costs - medical treatment, housing, education. The Cost Review Committee also looked at the plight of the poor and the elderly. It also studied household debts and warned against over-consumption in housing. The impact of GST was also examined. The reports of the Cost Review Committee are still worth reading. Perhaps the relevant Ministries can update the information. This would tell us whether costs have gone up unreasonably and whether anything needs to be done. A study of the old reports would also tell us the basic components in the cost of different services. I think it would be good for all Singaporeans to understand these bread and butter issues. Sir, people are unhappy today because they are worried. Business in the HDB heartlands is still poor. Workers are worried about jobs. Wages have been trimmed. So, of course, they worry when prices go up. And public transport cost is a big item of expenditure. They have to spend on transport every day. So, when fares go up, they get very upset. They worry more about whether they can cope. Worse still, what if they lose their jobs? The feedback I got is not that they object to fare increase. They know that fellow workers in public transport also have to earn a living. What people are unhappy about is the timing. Is the fare increase reasonable? Sir, the Cost Review Committee recommended that fare increases be made in small steps so that people can cope.”