Douglas Foo
Singapore
“It is therefore important that in the current circumstances, that we keep communication channels open and transparent between workers, employers and the Government. After all, we are all working collectively towards a common goal of emerging stronger as a nation after this pandemic.”
“Mr Deputy Speaker, Sir, notwithstanding the concerns that have been raised above, I would like to state that this whole-of-Government effort to address the wide-ranging effects of our economic crisis is herculean and it is deeply appreciated by business owners and investors in Singapore.”
“Mr Chairman, as Singapore prepares to roll out 5G network this year, there are companies that are concerned about the security measures of 5G deployment.”
“In the circumstances, how does the Ministry intend to encourage TACs to pool knowledge and resources together both locally and in overseas markets to help businesses seeking to internationalise?”
“It is important that we continue to show our appreciation to our Servicemen for their commitment and contribution to defence. How does MINDEF continue to ensure that recognition of our National Servicemen remains both updated and adequate? Precautionary Measures for COVID-19”
“Mediation actually embodies the key tenets of open communication and trust that lie in the foundation of our Tripartite Partnership. My hope is for mediation to continue to be seen as a viable first approach to not only resolve employer and employee disputes but as an avenue to resolve business disputes as well.”
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“5% of wages. Insurers would now be required to share policy and claims information with MOM. The objective of this proposed change is to allow centralisation and sharing of data amongst insurers to allow them to offer insurance plans of differentiated premiums to employers of different risk profile and claims history. This, in my opinion, is a step forward for the WIC insurance market, taking after the current practice in the motor insurance market. This differentiation would necessarily influence employers who are "not so safe" now, to reduce their exposure to workplace injury risks. "Safe" employers will be motivated to continue to maintain their high level of WSH standard. This is also one of the strategies laid out under "Strengthening WSH Ownership" in the WSH2028 report, released in April this year. That being said, with this requirement, MOM will now be yet another repository of information. It is important, therefore, that access to such information must be safeguarded and employers should be informed what information could be shared with insurers. In relation to this, I would like to suggest to the insurers to introduce a preferential rate or incentive scheme, similar to the no-claim bonus concept in the motor insurance market. This would now be viable, with the sharing of past claim data with the insurers. This would provide employers an incentive to place greater emphasis on WSH. This would be a win-win-win situation for the employees, employers and insurers. Second, and on a separate note, according to a recent report, the annual medical inflation rate for Singapore is expected to be 10% for this year. Of course, this includes non-work-related medical expenses.”
“Employers will need to factor this increase into their total business cost. This is especially important, in the context of today's challenging business climate and this information will go some way towards assisting us to assuage the fears of employers. Another avenue which is likely to lead to increased costs for businesses is the requirement for employers to report to MOM for all instances of work-related injuries, including light duty incidents. This will increase administrative work and compliance costs. Employers hope that MOM will look into how to operationalise this efficiently and perhaps offer financial incentives for employers with a clean record. The next aspect I would like to touch on in my speech is a call for better outreach and education to businesses for compensation for employees on light duty due to work-related injury. Employees who are injured due to work-related accidents are compensated based on AME for the first 14 days of outpatient sick leave or 60 days of hospitalisation leave, and two-thirds AME thereafter, up to one year. With the proposed extension of WIC to employees on light duties, the concept of AME will also apply to this group of injured employees. I hope MOM will engage businesses better to educate employers who have trouble in understanding or operationalising this new requirement. One commonly asked question would be how this requirement would apply to an employee who is on light duty but fails to report for work with valid reasons. Mr Speaker, Sir, I would like to move now to address the proposed regulatory regime for WIC insurers and to make a couple of suggestions in this area. One of the proposed changes under this Bill relates to the licensing regime for insurers. WIC insurance premiums currently range from around 0.3% to 1.”
“However, employers, at first sight, feel that the increase in coverage is too drastic as it will inevitably mean that companies will have to spend more in insurance premiums covering more employees. Secondly, I note that the proposed increase in the maximum and minimum compensation limits for death and total permanent incapacity is around 10% and 25% for that of medical expenses respectively. Employees who are on light duties, are also proposed to be compensated. An employer who bought WIC insurance may not be able to claim compensation due to policy exclusions, for example, injury sustained from an accident which happened at a certain height. Thus, the proposed change to have the insurers offering a standard WIC insurance policy, helps to prevent disputes and provides more certainty to employers. This is, indeed, welcomed. Yet, according to MOM statistics, there were 14,585 work injury cases in 2018, amounting to $21.89 million in compensation for medical leave wages and $89.84 million for permanent incapacity and death compensation. With the change, the licensed insurers will take over MOM's claim processing role. The standard insurance coverage and the taking over of the claims process by the insurance companies, together with the higher compensation limits, point to a potential increase in insurance premiums. This is a major concern for employers. May I ask the Minister if there is an estimate of the number of additional workers that will have to be covered under the increased salary threshold and, if there is, is the Ministry able to provide an estimate of the total increased insurance cost for Singapore businesses as a whole? Is the Ministry also able to provide clarity on what is the expected increase in premium for a business?”
“I would, therefore, urge the Ministry to continue its efforts to engage the employers and, through the different labour unions, the employees, in constant dialogue. In manifestation of this tripartite partnership, the Singapore National Employers' Federation, representing employers, has briefed and consulted 900 of our members on the proposed changes to WICA. Several areas of concerns were raised from an employer's perspective. These concerns pertain largely to the proposed increase in the compensation limits and the likely corresponding increase in insurance premiums, the extension of compensation to employees on light duties, and the requirement to report any instance of work injury to MOM. While we, as employers, will continue to engage the Government through MOM, and our employees through our communications in the office and through the unions, please allow me now to share with this House the main inputs from employers alongside some of my own humble observations and suggestions. Mr Speaker, while the objects of the Bill should be lauded, we cannot shy away that some of the provisions will probably lead to increased cost for businesses, firstly, by way of increasing insurance coverage for more workers and, secondly, by way of increased premiums for higher compensation limits. I will now address each of these in turn. First, all employees doing manual work, regardless of salary level, and all employees doing non-manual work, earning $1,600 or less a month, are currently required to be insured under WIC insurance bought by the employer. MOM has proposed raising this salary threshold to $2,600. It is heartening to note that MOM has proposed implementing this change in steps to give employers more time to adjust and re-evaluate their current WIC insurance plans.”
“Mr Speaker, Sir, please allow me to declare my interest as Chairman of Sakae Holdings Ltd, President of the Singapore Manufacturing Federation, Vice Chairman of the Singapore Business Federation and Vice President of the Singapore National Employers' Federation (SNEF). I rise in support of the Bill. The Workmen’s Compensation Act was first enacted in 1975, an Act related to the payment of compensation to workmen for injury suffered in the course of their employment. In 2008, the Act was reviewed and renamed as the Work Injury Compensation Act (WICA), which aims to provide low-cost and expeditious resolution of work-related injury claims. The coverage of the Act was in general extended to all workers, compensation limits were increased and processes were streamlined. WICA was last reviewed in 2016 where the maximum and minimum compensation limits for death and total permanent incapacity were increased. The cap for compensation on medical expenses was also raised. In this Bill before the House, MOM has taken a more comprehensive approach. The proposed key changes cover four areas, namely, (a) enhanced protection of injured employees, (b) enhanced protection of employers' interests, (c) faster and simpler claims processes, and (d) increased deterrence against WICA contraventions. Mr Speaker, Sir, I have always advocated for the strong tripartite partnership between the Government, employers and the employees. It is my belief that, especially in areas with potentially wide-ranging implications, such as those which this Bill touches on, it is the collective strength of our tripartite partnership that will engender the buy-in of all stakeholders.”
“Mr Chairman, Sir, according to the Global Cybersecurity Index 2017, Singapore topped the list as the country that was prepared against cyberattacks, surpassing the United States (US). However, despite the robustness of our cybersecurity strategy, attacks, such as the one on MOH, demands that we continue to be vigilant and steadfast in our defence against cyberattacks. Just like the other pillars of Total Defence, Digital Defence involves everyone, from individuals to businesses to the Government. Therefore, can the Ministry explain how it intends to encourage collaboration amongst industry partners to harness local cybersecurity expertise to develop secure, high-quality products that contribute towards a safe and trusted cyberspace for Singapore?”
“Also, what are the Ministry of Communications and Information's (MCI's) long-term plans to attract talents to become ICM professionals?”
“Mr Chairman, Sir, on SMEs Go Digital, since the launch of the SMEs Go Digital programme during Budget 2017, the programme has helped and has developed many initiatives with the aim of helping local SMEs use digital technologies, build capabilities and participate in the digital economy. Through partnerships with trade associations and chambers (TACs), such as the Singapore Manufacturing Federation, the programme provides SMEs with consultancy advice from specialist digital project managers to help them implement pre-approved digital solutions to transform their businesses. As announced by Finance Minister Heng Swee Keat in Budget 2019, the programme has seen some 4,000 SMEs adopt pre-approved digital solutions offered under the programme. While this number is indeed encouraging, it is a drop in an ocean of nearly 200,000 SMEs in Singapore. Therefore, can the Ministry provide a progress update on the SMEs Go Digital programme, particularly with respect to the minimum number of SMEs the programme is intended to reach, and how the Ministry intends to get SMEs to accelerate the adoption of digital solutions? Talent Development As the manufacturing sector advances towards Industry 4.0, the sector will increasingly require the skillset of info-communications media (ICM) professionals to harness frontier technologies to help the sector reach Industry 4.0's standards sooner. The ICM Industry Transformation Map (ITM) was launched in November 2017 with the goal of employing more than 210,000 ICM workers and create more than 13,000 professionals, managers, executives and technicians (PMET) jobs by 2020. Can the Ministry provide an update on the ITM's employment goals so far?”
“Mr Chairman, Sir, all 23 ITMs covering 80% of the Singapore economy have been launched since March 2018. In my capacity as the current President of the Singapore Manufacturing Federation (SMF), we work at different levels to encourage manufacturing businesses to explore the different industry roadmaps. Within our 10 industry groups, we hold regular dialogues and focus roadmap sessions without members having to provide resources and support from the transformation journey. However, almost a year on from the launch of the ITMS, from conversations with the broader SMF member base, it is apparent that awareness on the specifics of the ITMs is still lacking. Businesses also need help to cope with rapid changes in technology and new business models. Can the Ministry share if it has plans for more impactful communications and assistance to reach a wider audience and, in so doing, lend a hand to the ground efforts of TACs? Electric Vehicles”
“Mr Chairman, Sir, the Association of Southeast Asian Nations (ASEAN) Economic Committee 2025 plan is well underway. And ASEAN is poised to be the fourth largest economy by GDP in 2030 as the other countries in ASEAN hit their stride in terms of economic growth. In addition to any initiatives and support from the Government, it is imperative that Singapore's well-calibrated approach to regulation is maintained so that our businesses continue to stay competitive to tap on opportunities in ASEAN. Can the Ministry provide an update on the initiatives that the Ministry has undertaken to prepare our businesses to better seize the opportunities presented by the impending ASEAN expansion? Additionally, given that businesses face greater uncertainty and a weaker economic outlook in part due to the geopolitical uncertainty with the United States (US)-China trade conflict, is the Ministry able to share information on how it has helped our businesses seize opportunities presented by the Belt and Road Initiative (BRI) since it was first announced by China in 2013? Are the planned initiatives to help businesses explore the ASEAN region different from those of the BRI? Enhancing Singapore as a Key Node in ASEAN”
“It is encouraging that there is increased focus at the micro level, with support to accelerate the adoption of innovative solutions, building of global partnerships, upscaling of the workforce and business transformation. It is pro-business, pro-worker, and we look forward to a strong united Singapore. With that, I affirm my support for the Budget Statement 2019.”
“Being able to attract new local workers with more welfare demands and higher costs is yet another aspect which these businesses have to deal with. For these businesses, no matter how technology may alleviate operational demands, a lack of readily available human resources, which will invariably in turn drive up already increasing labour costs, will work in tandem to drive businesses out of Singapore or out of business altogether. It is in this context that I would like to caution against an over-reliance on legislation for more and more rules. Members have, in recent debates before this House, lobbied for mandatory PWMs, eldercare leave and FWAs. While all of these are, indeed, legitimate interests which enterprises are also concerned about, legislating them may not necessarily be the best way forward. I would like to humbly urge this House to better support the efforts of the Tripartite collaboration and MOM's efforts to promote a strong culture of shared responsibility, rather than to adopt a legalistic and prescriptive approach. On the part of TACs, we will continue to urge companies to move towards their digitalisation journey with greater alacrity to adapt to staffing realities. However, as labour demands vary with each industry across different time periods, I would urge the Ministry to consider adopting a flexible policy of review, closer to when the cuts are to be made effective, or to allow flexibility to consider on a case-by-case basis, the labour needs of individual businesses. Mr Deputy Speaker, Sir, in conclusion, the business community is of the opinion that this Budget is a forward-looking Budget, preparing and galvanising Singapore businesses for the challenges and opportunities ahead.”
“It is, therefore, increasingly imperative that our businesses are enabled to move up the value chain to generate higher value output and, more importantly, position ourselves as a gateway to the rest of ASEAN. Digitalisation and Industry 4.0 are the way forward and, with the different financial packages and assistance schemes, the Government is, indeed, helping our businesses along the journey. (In English): Mr Speaker Sir, my speech today would be incomplete if I do not talk about the main concern that the business community has in relation to Budget 2019. The Foreign Workforce Policy to reduce the DRC in the services sector is definitely something that businesses are very concerned about. Businesses can appreciate the policy reasons for such cuts, for example, with the declining birth rate in Singapore, having a continued inflow of foreign manpower at the current or increased rate may eventually result in a Singapore with more foreigners than locals. Businesses also note that the reduction is being rolled out progressively over two years to cushion the harshness of such a reduction. However, the fears and the difficulties for businesses have already begun. Firstly, businesses already have to deal with global trading uncertainty, rapid changes in technology and business model changes, as well as changes in legislation. For example, last year, changes made to the Employment Act provided more protection and welfare for employees but incurred additional costs for businesses. Secondly, the services industry, such as the F&B industry, relies on unique and familiar experiences to attract new customers and retain old ones. Building a relationship with customers takes time, as does training.”
“] At a regional level, myself as one of the three Singapore Appointed Representatives to the ASEAN Business Advisory Council (ASEAN-BAC), together with the business community, we are in strong agreement that the Government has, in this Budget, rightfully identified opportunities in ASEAN to be an area that our local businesses should consider expanding to. As the strategies from the ASEAN Economic Community (AEC) Blueprint 2025 take shape, Singapore businesses need to better define our competitive space and to leverage the potential of ASEAN as an economic block. ASEAN is currently the fifth largest economy in the world by GDP, overtaking the UK in 2017. With the AEC Blueprint in place, ASEAN is, indeed, well-poised to be the fourth largest economy in the world by GDP in 2030. Many factors converge in ASEAN's economic favour. Firstly, the median age of the ASEAN population as at 2015 is 28.9 years. This is a relatively youthful workforce when compared to the median age of more advanced nations, for example, 40.8 years for the US and 36 years for China. Secondly, increases in urbanisation rates drive economic growth. The urbanisation rate in ASEAN is expected to hit 55.8% in 2030, about 12 percentage points up from 44.5% in 2010. Thirdly, according to estimates from the Asian Development Bank, by the year 2030, about 65% of the ASEAN population will be classified as middle-income class, up from 29% in 2010. As income rises, so will standards of living. ASEAN will, therefore, become an important market for businesses. That these would take place within a short span of slightly over a decade presents our Singapore businesses with many opportunities at our doorstep.”
“We welcome the support that the Government is pledging to transform the industry further under Budget 2019 towards Industry 4.0 standards. In this regard, SMF has taken the initiative to develop a Manufacturing Digital Plan to assist SMEs on their transformation journey. In 2019, we will continue our focus on assisting companies to digitalise and sooner realise Industry 4.0. We have since launched the Go Digital Project Management Services to help SMEs that want to go digital take their first step to digitalisation. Under the programme, SMEs can tap on "mentors" to help them deploy technology. The support announced by Minister Heng Swee Keat will go a long way towards facilitating the process. These are just some examples of how TACs can contribute effectively to bringing the business community in line with the Government’s vision, and thereby creating a united Singapore. SMF, SBF and SNEF have a very healthy collaborative relationship and supports one another in our respective efforts and stand strong ready to work with NTUC and the Labour Movement. TACs are not in competition with one another and, like businesses, more can be done when acting in concert where there are greater resources to draw from. I would, therefore, like to call on TACs to further break down individual walls and work with one another to accelerate our common national interests. Mr Deputy Speaker, in Mandarin, please. (In Mandarin): [Please refer to Vernacular Speech.”
“SMF currently administers two types of PCPs – PCP Broad-based manufacturing and PCP-Overseas. I am pleased to report that under these two programmes, SMF has assisted close to 1,200 workers on their professional conversion journey as at January 2019. SMF is, therefore, excited with the announcement of two further PCP programmes and stand ready to collaborate with Government agencies on them. Practising Management Consultants (PMCs). As the leading certification body for PMCs, SMF provides a certification process to train and enable workers, especially PMETs undergoing a career change, to be professionally certified as consultants. The total number of PMCs certified by the SMF Singapore PMC Certification (SPMCC) currently stands at over 500. Following certification, these consultants are then better enabled to assist SMEs identify issues in business processes and the right type of support they can receive from the Government as well as to bring them on the internationalisation efforts. SMF has signed more than 180 memorandums of understanding (MOUs) with local and overseas TACs and government agencies for better collaboration on commercial development. The Enterprise Europe Network (EEN) representative office in Singapore, tasked with bringing local companies closer to doing business with EU companies, has between 2016 and 2018 organised 56 brokerage events and signed 25 EEN partnership agreements. It currently has 200 active businesses on the network. SMF regularly leads member delegations to local and overseas trade exhibitions. In 2018, SMF led more than 600 enterprises to participate in 41 trade exhibitions, securing trade sales of over $222.3 million.”
“Mr Deputy Speaker, Sir, I would first like to declare my interest as the President of the Singapore Manufacturing Federation (SMF), Vice-Chairman of the Singapore Business Federation (SBF) and the Vice-President of the Singapore National Employers Federation (SNEF). I rise to affirm my support for the recently delivered Singapore Budget 2019 and to provide a response from the business community. On behalf of the manufacturing community in Singapore, I applaud the Government's recognition of the contributions of the manufacturing sector to our economy. In addition, the three TACs that I represent are also pleased that the Government has also recognised the important role played by TACs. I wish to affirm that TACs, as partners in nation-building, remain committed to the cause of enhancing the business community’s capabilities and look forward to continuing its stellar collaborative relationships with our members, government agencies both local and overseas, as well as our Labour Movement, NTUC. Minister Heng Swee Keat's speech on enterprise and workforce transformation lends Government support to the beliefs that TACs have been advancing to our members and to the work we do over the last few years. For example, SMF has programmes to actively assist the manufacturing community in the three thrusts defined in the Budget for moving the Singapore economy forward. Some of these programmes are: Deep Enterprise Capabilities. Our SMECentres@SMF have proven to be an effective partner to SMEs seeking customised advice and guidance on the latest Government grants, to give our SMEs better opportunities of success. We, therefore, eagerly await the additional $200 million in funding for SMEs expected to be brought in by the SME Co-Investment Fund III. Deep Worker Capabilities.”
“" "Singapore has succeeded so far because the Government, employers and workers have worked together. Where there is industrial harmony, there is social and economic development; where there is constant strife, it is difficult for businessmen, local or foreign, to make long-term plans. A strong tripartite relationship is not just critical in maintaining this industrial harmony. It is also a key competitive advantage to help us become a developed economy early in the 21st century," unquote. That these words made more than 20 years ago are still strongly relevant in today’s economic climate is a standing testament to the wisdom of the late Cyrille Tan. Today, the Tripartite Partnership has worked tirelessly and largely smoothened the sometimes-difficult amendments made to the EA over the years and continue to do so. It is important, therefore, for these partners to be ever aware of the important roles they play in Singapore's future and so, accordingly, continue to educate their members on the same, zealously safeguarding the values to be imparted to their members and pick wisely those elected to their respective councils. Mr Deputy Speaker, Sir, I would like to end my speech by taking this opportunity to borrow from the Motion tabled by the late Cyrille Tan and passed by this House in 1998, to call upon, quote, "the Government, employers and unions to further strengthen the tripartite relationship, partnership, in Singapore so as to enhance Singapore's competitiveness as we face new and greater economic and social challenges," unquote, in the current and future economic climate. On this note, I affirm my support for the Bill.”
“But more important, enterprises must develop agility so that they can navigate the challenging seas to sustain and grow their business, create jobs and boost the economy. A key strategy for the future of Singapore's commercial viability will be our brand of tripartite partnership. It is clear that where employers, workers and the Government come together, there are often competing interests among parties, notwithstanding the overarching purpose of advancing Singapore's interests in the world. The fundamental precept that there must first be a strong and stable country, before a business can prosper and the individual live well is clear. Yet, this seemingly simple precept hides away the inherent principle that where there are competing interests, sacrifices and compromises have to be made. (In English): It is, therefore, by no means a simple feat for the tripartite partners overseeing labour relations and employment matters to have kept the peace since 1968 when the first version of the EA was passed, whilst at the same time canvassing the interests of their respective stakeholders. In a Motion tabled in this House in 1998, the late Cyrille Tan elucidated the important basis of tripartite partnership in Singapore, and I quote, "The tripartite framework has served us well. Our objective as trade unions is to safeguard the interests of workers. We can do so effectively only if companies become more productive and competitive. The Government must continue to provide good infrastructure, transparent regulations and stable conditions to attract investors. Then workers can continue to have good jobs and look forward to fair wage increases. This is the basis of our tripartite relations.”
“] Mr Deputy Speaker, while many of the proposed amendments are not new obligations, as they merely extend benefits to a wider pool of workers, it is in and from the context of an employer’s viewpoint that I hope that the Ministry will consider my suggestions. I also verily believe that a focused educational campaign, together with a light-touch enforcement approach in the first year of the amendments, can be undertaken by the Ministry, together with its stakeholders, for the benefit of employers. I now move on to my next point – the role of the tripartite partners. In recent times, many other countries are reforming their labour laws to make their labour markets more flexible and, therefore, more competitive. For example, Greece and Spain, which had high unemployment rates, undertook labour market reforms to grant employers more flexibility in hiring, firing and determining working hours to create jobs. Even more recently, French President Emmanuel Macron attempted to liberalise France’s rigid labour laws to allow companies to negotiate specific deals on working hours and pay to reduce unemployment. Going forward, our businesses will operate in a more volatile, uncertain and complex environment. To borrow the words of the Minister for Manpower Mrs Josephine Teo at the Ministry's workplan seminar in May this year, we will need an agile workforce, agile businesses and an agile Government. An agile workforce will enable workers to adapt to company restructuring and transformation. This means workers will have to pick up new skills and take on new jobs. An agile Government will be responsive to changing economic disruptions and emerging employment demographics and structures.”
“Third, of all the proposed amendments, employers have most concerns with the section 14 amendment of the EA on dismissal, whereby all employees will be able to make a claim for wrongful dismissals following the proposed amendments. Moreover, the eligibility service period of managers and executives to claim for wrongful dismissal has been reduced from 12 to six months. Employers are concerned with frivolous and vexatious claims by disgruntled employees as it is unproductive and a drain on resources and time. While there are, indeed, criminal sanctions provided for the giving of false information in the Act, there is little else by way of compensation to employers who are wrongly accused of breaches by unhappy employees. While criminal sanctions may deter such wrongful accusations, it cannot make up for the anxiety and loss of time which employers who have been dragged through a lengthy investigative process undergo. It would, therefore, be important for the Ministry’s officers to continue to be cognitive of this and continue to handle each investigation with promptness, efficiency and even-handedness. However, quite apart from criminal sanctions, there is also a need for a framework to operationalise section 14 when it is extended to all employees and shifted to the ECT. I understand that TADM is working on this and employers will be briefed on this in due course. While we await the same, businesses will need to step up and put in place a strong HR system with more rigorous performance appraisals and engage the employees regularly in discussions regarding their performance. This will prevent unreasonable and unfounded claims from arising. Mr Deputy Speaker, Sir, in Mandarin, please. (In Mandarin) [Please refer to Vernacular Speech.”
“In addition, if greater acknowledgment and incentives can be given to employers who adhere to the EA provisions, I am sure it will prove to be a win-win situation for both the workers and the employers. If I may humbly suggest, such incentives can come in the form of one-time tax rebates or publicised awards for exemplary employment practices over the course of five years or such time as the Ministry may consider appropriate. I acknowledge that some will argue that there is a need to incentivise someone for following the law. Yet, the effect of having such a scheme cannot be underestimated. Even for the simple act of driving, a clean demerit-free record can result in so much savings for insurance premiums for drivers. I, therefore, put forward this for the Ministry’s consideration. Second, in today’s fast-changing business environment, businesses must be lean and nimble to be able to move and adapt quickly or be left behind. Consequently, they must not be impeded unnecessarily by rigid laws and high compliance and restructuring costs. PMETs, who now make up 56.1% of the local workforce, would rise to about two-thirds, or 65%, by 2030. The nature of their jobs is, however, changing. Many will need to be reskilled. Some may need to be redeployed or face the prospect of being retrenched. Regional roles may mean travelling over weekends or working odd hours. At the same time, companies are meeting the work-life demands of such employees by providing flexible work arrangements (FWAs). It is, therefore, imperative that management flexibility to develop their human capital to their full potential must not be impeded by rigid employment regulations.”
“While the sector is transforming to raise productivity, the increase in overtime coverage would have an immediate cost impact. What can then be done to assist employers mitigate the effects of these changes? I believe that providing ample time for employers to adjust would be crucial. Yet, employers cannot dally and will need to be proactive and start to take steps to manage their manpower better now. This can be done through job redesign, better manpower planning and scheduling, multi-skilling employees for flexible deployment and other innovative ways. Employees, on their part, should adopt a more open mindset and remove any inertia they may feel about learning new things, and undertake new responsibilities. This may include cross-industry training to better their understanding of supply chain processes, and employees must be ready to eradicate any traces of silo-mentality thinking in relation to their job scope. Hence, I hope the Ministry will lend enhanced support to employers to undertake lean and agile manpower planning. While the Lean Enterprise Development Scheme (LEDS) has moved towards ready-to-go solutions rather than bespoke solutions to benefit more small and medium enterprises (SMEs), many of the SMEs may still not know how and where to start. A pre-LEDS assistance scheme to evaluate work processes and job roles will help SMEs develop their own lean manpower plan and understand which technologies could help them in their transformation. In this regard, Trade Associations and Chambers (TACs) can also take the opportunity to offer their inputs and suggestions to the Ministry and work more closely with their respective members to provide a cogent and relevant framework.”
“First, rising costs in today's global business economy, coupled with the uncertainty of trade wars in the world, place our business leaders in a highly stressful environment where thinning profit margins have to be carefully managed against rising costs. Except for Part IV of the EA, all managers and executives will now be covered by the Act after the amendments are passed. Accordingly, managers and executives will all receive the same protection as rank-and-file workers. It is happy to note that most employers already provide this minimum coverage of benefits, if not better, for all their employees. However, it is in the different ways in which companies manage these benefits that operational issues may arise, leading to some employers having to repackage their compensation and benefits for managers and executives. Such repackaging may take into account their roles and responsibilities, the demands of their jobs and the workplace flexibilities accorded to them. For example, with globalisation and 24/7 operations, it is common for managers and executives to travel or work during a public holiday and, in essential services, the exigencies of service to work outside office hours. Such repackaging will inevitably incur actual or opportunity costs for employers. In addition, with the removal of the salary cap of $2,250 for overtime rate and raising of salary threshold to $2,600 in Part IV of the EA, employers would also be impacted by higher overtime costs. For example, in the food and beverage (F&B) and accommodation services sector in which I operate, labour cost accounts for 42.8% of the operating cost, one of the highest amongst the different industries.”
“Mr Deputy Speaker, Sir, please allow me to declare my interest as Chairman of Sakae Holdings Ltd, President of Singapore Manufacturing Federation, Vice-Chairman of Singapore Business Federation and Vice-President of SNEF. I rise in support of the Bill. Since its enactment in 1968, the EA has been the backbone of workers’ rights as well as a marker of employers’ obligations. The revisions proposed in the current Bill will extend the protection offered and, at the same time, bring the Act in line with economic changes since its last amendment in 2013. I rise to speak on two points. The first, changes to the Act from the viewpoint of employers and, the second, the role that the tripartite partners play in today's changing employment landscape. This Bill has been lauded by many employees who see the extension of benefits proffered under the Act now extended beyond any arbitrary salary cap. Some of these well-known benefits include guaranteed seven days' paid annual leave, 11 paid public holidays, paid sick and hospitalisation leave, as well as the timely payment of salary. Extension of these benefits to roughly an additional 400,000-plus workers is, indeed, a step in the right direction for labour welfare in Singapore, a country strongly dependent on our human capital. Yet, there are valid concerns by employers. SNEF, of which I am privileged to be one of the Vice Presidents, was deeply involved in the review of the EA. Spreading over 12 months, SNEF engaged over 3,000 employers and HR practitioners before reaching consensus with our tripartite partners on the proposed amendments. Please allow me to share with this House the main feedback that employers gave during the review, alongside some of my humble observations and suggestions.”