Foo Mee Har
Singapore
“What we need to ensure, therefore, is a better alignment of training and the graduates that we churn out. Loosening the criteria for entry, while simultaneously tightening the conditions for graduation will help keep our tertiary offerings nimble, since we need to worry less about how failing out already small intakes could pre-emptively…”
“Sir, strong R&D support has been central to attracting and retaining MNEs. MNEs have long been a cornerstone of Singapore's economy, driving innovation, investment and job creation. They contribute significantly to GDP, high-value employment, R&D and global trade connectivity.”
“Thank you, Mr Speaker, I have two questions for the Prime Minister. The first question is, with the generous support measures, including the SG60 vouchers, I would like to ask the Prime Minister what impact these measures will have inflation on inflation?”
“So, the Singapore brand has become so exceptional that it is well worth faking, much like a Rolex watch or a Louis Vuitton handbag. And, like these global brands, you know you have made it when imitation becomes the greatest form of flattery.”
“Thank you, Speaker. I thank the Minister of State for the details. I am encouraged to hear the usage but I would like to ask the Minister of State two follow-up questions.”
“Thank you, Speaker. I thank the Minister for his response. I have two supplementary questions for the Minister. First, how does the Ministry plan to leverage the insights from the PIAAC findings, to refine the SkillsFuture programme, particularly in identifying critical skills gaps and developing targeted interventions that enhance the re…”
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“On weekends and public holidays, a large number of workers may congregate in one flat when foreign workers' friends visit each other and enjoy each other's company and some home-cooked food. Foreign workers also gather in our neighbourhood parks and void decks, where drinking often takes place. Lifestyle differences have caused social tensions between them and their Singaporean neighbours. Sir, I would like to suggest to the Minister to review subletting rules for foreign workers in HDB estates. I would like to propose that we set a limit of not more than 10% of flats in any particular block be allocated for rental as housing for foreign workers. We must institute the same discipline as we have in EIP to prevent the formation of foreign workers enclaves in our HDB estates and also disamenity to local residents. We should also think carefully about the housing options for these foreign workers on a longer term basis, especially if their numbers are to grow to fill jobs that are not attractive to Singaporeans. We are thankful for the job they do. These foreign workers are here on a temporary basis to do a job and will leave Page: 137 when their contracts are over. They come from very different backgrounds and cultures and they are not expected to integrate. We should question if they should be housed in our HDB flats in the first place. I urge the Minister to consider purpose-built apartments or dormitories to house these foreign workers, with dedicated facilities and amenities to serve their needs, including retail, sports and entertainment. 6.00 pm Not only will these preserve the communal space for Singaporeans, but they will also set aside places for foreign workers to enjoy the social and cultural environment tailored to them.”
“Much more can be done to raise awareness of the merits of the Lease Buyback Scheme. Cap Foreign Workers' Rental in HDB Flats Mr Chairman, our HDB flats are more than a roof over our heads. It is our home, our sanctuary, a place where we bring up our children, a place where we Page: 136 look forward to return to at the end of a hard day's work, to rest and relax. Given that we live in close proximity to each other, having good neighbours makes a big difference to the quality of our life. Furthermore, in Singapore, we have a unique Ethnic Integration Policy (EIP) implemented to promote racial integration and harmony. This is also to prevent the formation of racial enclaves by ensuring a balanced ethnic mix amongst the various ethnic communities living in public housing estates. Notwithstanding the challenges faced by those selling their flats in the secondary market due to the ethnic quotas, most Singaporeans accept that the EIP is in place for a good reason. Many recall lessons learnt from racial tensions and conflicts arising from racially segregated neighbourhoods in other cities. Yet, despite our strong efforts in EIP, we do not have the equivalent policy to guide the management of foreign workers who rent HDB flats in our estates. Whilst there are subletting rules limiting the number of sub-tenants allowed for each flat type, flat owners are free to rent out their flats after the minimum occupation period (MOP). Sir, we run the risk of allowing foreign worker enclaves of significant numbers and size to form in HDB estates. Large groups of up to nine workers tend to share one flat. There have been complaints from residents about encountering poor habits, such as excessive noise, smoke and littering, amongst other issues.”
“Sir, Singapore has one of the highest home ownership rates in the world, with 90% of Singaporeans owning a HDB flat that they stay in. So, much of their assets are locked in their properties. The Lease Buyback Scheme (LBS) was introduced in 2009 to help lower income elderly households in 3-room or smaller units unlock their housing equity to meet their retirement needs. This is to enable them to age comfortably in their own homes whilst the scheme provides them with a steady income for the rest of their lives. However, to date, only 471 households have taken up the scheme. The scheme was further enhanced in February this year to allow more cash payouts. I hope the Minister could consider further improvements to make the scheme more accessible and attractive to a wider group of seniors, help them be self-reliant and live a fulfilling life in their retirement. I would like to make the following suggestions for the Minister's consideration. One, extending the scheme to 4-room and 5-room HDB owners, so that these flat owners also have the option to age gracefully in the homes that they are accustomed to, rather than to have to downgrade or move to a smaller flat if they feel the need to monetise their flat they currently live in. Two, offering different tenures beyond the standard 30-year lease, ranging from 10- to 30-year lease tenures, to cater to seniors of different age groups. Three, removing altogether the income criteria to make this scheme a universal option available to all HDB owners so that more are able to tap life savings locked up in the value of their homes. Four, and most importantly, providing better financial counselling and outreach to help seniors understand the scheme and its benefits.”
“I also urge MOM to consider that, in industries where there are few qualified Singaporeans, companies are obliged to invest in the training and development of Singaporeans to fill future openings and guard against vulnerability from over reliance on foreigners in selected sectors. Mdm Speaker, as companies go through the pain of restructuring, we must be prepared that not all companies will make the transition and there will be companies that will close. There will be vulnerable Singaporeans in this transition, whether they become unemployed or structurally underemployed, due to their skills sets. I ask that the Government set up a Restructuring Fund to help affected individuals and their families tide over such difficult times, whilst supporting them with schemes to rebuild their livelihoods. Mdm Speaker, I would like to reiterate that the Government can only create an enabling environment, rich with opportunity and facility. I urge SMEs to step up, organise themselves, and leverage the available schemes as much and as quickly as they can in order to take their businesses to higher levels of productivity and competitiveness. SMEs are the backbone of our economy and key providers of jobs. This restructuring must result in a revitalised SME sector that is strong and vibrant, for the sake of Singapore's future. In conclusion, Madam, I thank the Deputy Prime Minister for a balanced and progressive Budget. I support the Budget. 1.20 pm”
“This will help employers offset the cost for on-the-job training for these women as they re-integrate back to the workforce as well as any necessary redesign of work arrangements. This scheme could work in conjunction with an "Internship Programme", where women re-entering the workforce after a long break could adjust and gradually re-integrate into the workforce. Internships allow women and employers to "try things out" without the fear of committing to something that may not work out in the longer term. A Government agency should be assigned the task of proactively facilitating job matching, career re-entry and pre-placement training. Mdm Speaker, as part of the foreign manpower tightening measures, I am very pleased to see, for the very first time, the Government shifting its position on the need to make changes to the Employment Pass (EP) framework, to Page: 36 ensure Singaporeans are given fair consideration in companies' recruitment process. I have spoken in this House on numerous occasions, calling for enhanced rules. With progressively larger number of Singaporeans holding PME jobs, I have asked that the EP framework must ensure that Singaporeans are considered first for vacancies before employers are allowed to bring in foreign professionals. Such labour market test practices are already in place in many leading international centres such as Hong Kong. Whilst it is critical that Singapore can continue to move up higher value sectors leveraging on international talent that brings expertise, companies' access to foreign professionals must not adversely impact job prospects for locals. I look forward to MOM instituting a labour market test.”
“I urge the Government to follow the footsteps of other countries in making the integration of work and family a national concern, and not left to the best Page: 35 efforts of individual companies or the occasional campaign and promotion by different Government agencies. The large majority of industrialised countries, such as UK and Australia, have some statutory regulations that make it easier for individual employees to request for flexi-work to balance their caregiver responsibilities. Pro-family employment practices should be set as an integral part of the Tripartite Guidelines on Fair Employment Practices. Whilst not all jobs are suited for flexi work arrangements, the Government should consider legislation in the future to give employees, both men and women, the right to request for flexi work and have their requests seriously considered by their employers. I am very pleased to hear that NTUC is calling for the same set of actions from the Government, as we in the PAP Women's Wing are. Besides helping companies get access to a wider pool of talent, sensible work-life policies make good business sense as companies with such policies have observed increased employee engagement and productivity, and reduced turnover. Furthermore, it can be a real competitive advantage to companies as a recent NTUC survey found that work life balance is a key factor that makes workers happy. Mdm Speaker, it would be a big win for Singapore if this restructuring provides more opportunities to enable women not in the workforce to return. The Government should consider extending Back to Work Employment Credit Scheme (BWEC), offering up to 30% to 50% of wage subsidy depending on wage levels, to employers who hire women returning to the workforce for up to a year.”
“Improving the welfare of staff must be a key cornerstone of any productivity drive. Mdm Speaker, what is missing in this year's Budget is measures to boost local workforce participation to ease labour crunch. Efforts to tighten foreign manpower must be undertaken alongside initiatives to help employers tap local manpower pools. I was surprised to read in The Straits Times that two-thirds of 500 SMEs surveyed said that inclusive practices such as hiring women and seniors are irrelevant or unimportant to them. Yet women and older workers form a large pool of talent that many employers can tap into. However, to tap into this source of talent, the workplace needs to be family friendly enough to enable women to work and raise their families at the same time. Also the lack of attractive flexi-work opportunities, including part-time work and home-based work, is a barrier to getting women and older workers back to the workforce. Our success in making flexi-work prevalent in the workplace will unleash a significant pool of Singaporean talent, whilst helping to boost household incomes and reduce income disparity. The current tight labour market is an opportune time to give pro-family employment practices the impetus it deserves. The Government should accelerate its efforts to champion the benefits of work life balance and provide the know-how and incentives to help companies implement work-life balance and provide the knowhow and incentives to help companies implement work-life strategies. Much more needs to be done to change mindsets and the trust between employers and employees.”
“This is to ensure wage increases are tied to productivity gains for sustainability beyond the Government assistance period and serves as an incentive scheme to spur higher employee productivity. Madam, no scheme is perfect, and I am glad that the Government is channelling much of the revenue collected from the foreign worker levy back so that all companies will at least have a chance to have a go at restructuring with strong support from the Government. Mdm Speaker, as the Government rolls out more and enhanced assistance programmes to spur productivity, it is just as important to increase outreach and simplify access to schemes in order to facilitate adoption. Many SMEs still claim that they are not familiar with the support programmes and find them difficult to access. I urge the Government agencies to be relentless in their outreach, in order to help companies adopt best practices, innovate and upgrade their capabilities, access global opportunities, leverage shared Page: 34 facilities, and adopt new technology. SMEs will benefit greatly if "one-stop" centres are set up for companies to access a wide range of Government-support schemes. Beyond process and technology improvements, I believe Singapore companies can do a lot more in people management for higher productivity. Studies have found that happy employees to be the most productive. Singaporean workers work one of the longest hours in the world. According to Gallup's research, only 2% of Singapore's workforce describes themselves as engaged by their jobs compared to the global average of 11%. So, there is much employers can do to go beyond treating their employees as simply a pair of hands, but more as valued talent that needs to be motivated, nurtured and rewarded for high performance.”
“It provides the twin benefits of helping businesses cope with higher wages in a tight labour market as they upgrade, as well as encouraging firms to prefer Singaporeans and pay them better. Many raised the valid concern that this wage subsidy scheme is not tied to productivity growth, hence the risk of wage inflation without a corresponding productivity gain. I have heard some workers are already expecting a wage increase. This is a real risk, but I see the power in the simplicity of the WCS so that every business from right across the sectors can easily draw on. There is no need to apply for it; wage credits will be automatically paid out to employers. I have argued that businesses need time to transition their operations to find new levels of productivity as it takes time to establish new processes, familiarise workers with new machines or induct and train them. The WCS helps companies cushion wage increases in a tight labour market, giving them the "breathing space" they need to ready themselves for the gains that are to come. The Government subsidy is also helpful to buffer inflation in a tight labour market to prevent cost pressures to be passed on directly to consumers. Hence, this Scheme is therefore an economic measure as well as a social one. Madam, the WCS will help those who are genuinely on their journey to higher productivity, but it will also mean delaying the closing down of uncompetitive firms through an undeserved cost subsidy from the Government. I urge companies to have the discipline of putting in place their respective productivity gain sharing schemes tailored to their own business.”
“They are in urgent need of finding new ways to grow, invest in productivity, reduce their dependence on foreign workers and design better jobs that are attractive to locals. I would like to focus my speech on this restructuring journey that Singapore companies especially the SMEs need to undergo to emerge stronger and leaner, and in this process create better lives for Singaporeans. Whilst few will dispute the need to increase productivity, most of the concerns voiced have been about the rate at which changes have been imposed. Companies need time to attract Singaporeans to replace foreigners in lower value jobs. Yet significant foreign manpower tightening measures have been announced across sectors and skills levels even as businesses are struggling to cope with previous cuts. This is amidst a tight labour market, escalating business costs and continued uncertainty in the external environment. There is heightened anxiety about the compressed period of transition expected of companies, and whether it poses an unnecessary risk to their viability. To ease the pain of transition, the Budget is packed with "sweeteners" to help companies, including a generous three-year transition support package, especially targeted to help SMEs. Clearly, the Government is not trying to pick the winners but is focussed on helping every SME that wants to upgrade itself and help them take advantage of every scheme. Page: 33 The WCS is innovative, and unique to Singapore. The Government co-pays 40% of wage increases for Singaporeans earning up to $4,000 per month, for three years. The Scheme covers 70% of Singaporean workers; the wage subsidy goes directly to them.”
“Mdm Speaker, thank you for allowing me to join the debate. Deputy Prime Minister Tharman has announced a Budget which sends a clear signal that the Government is determined to pursue what it had set out previously as the strategic roadmap of Singapore's future. Restructure for quality growth and build an inclusive society, with a clear focus on Singaporeans. This year's Budget feels like last year's Budget, but at a higher Page: 32 intensity. Despite a much lower GDP growth of only 1.3% in 2012 and a strong push-back by various business groups, the Government has persisted with its long-term strategy of building quality growth driven by increasing productivity. It maintains its unequivocal position to wean businesses off their dependence on foreign workers. But companies can take comfort that ample help is at hand to support the restructuring – Deputy Prime Minister Tharman has announced a comprehensive Quality Growth Programme aimed at helping businesses upgrade, create better jobs and raise wages for locals. I am heartened by the series of measures that build on previous years' efforts to bridge income gaps and promote social mobility towards a more inclusive society. This year's Budget has been even more progressive, with wide ranging measures to help lower income groups move up the ladder, and also a larger tax liability for the affluent on luxury homes, investment properties and high-end cars. The Government has made a concerted effort to address inequality in this Budget. Mdm Speaker, the pain of restructuring our economy is further intensified with this Budget. Companies have no choice but to take the bitter pill.”
“Just imagine – no homework and no tuition after dinner! Mdm Speaker, even as we agonise over the declining birth rates, we should be reminded that 12,000 babies are aborted each year – this amounts to about one-third of total live births. Is there room for the Government to step up efforts in counselling women who wish to terminate their pregnancies? Can the Government play an active role in encouraging the adoption of children from unwanted pregnancies?”
“Employers should put in place progressive HR policies that are pro-family, and recognise that they need to cater to the changing priorities of their employees at different Page: 107 stages of their lives, whether they are men or women. Flexi-work arrangements should be readily available and widely adopted, where employees are allowed to request for a change in the number of hours, when and where they work. And employers should measure job performance in terms of outcomes expected of the jobs rather than in terms of the time an employee spends in the office. The Government should help companies, especially SMEs, with the implementation of flexi-work arrangements and debunk the myth that flexi-work is detrimental to productivity. Many companies have experienced how sensible work-life policies make good business sense, as these lead to increased employee engagement and morale, low turnover, and access to a wider talent pool. Mdm Speaker, the recently announced childcare subsidies are useful, but couples struggle to get a place for infant-care or childcare to start with. To ensure accessibility, the Government should consider setting building guidelines for developers to dedicate space for childcare centres in places of a certain density in residential and commercial hubs. Our Primary schools should offer after-school care programmes within the school compounds so children have the option of remaining in a safe and supervised environment up to 7pm. They can rest, receive supervision to complete their homework, or participate in enrichment classes. Apart from better aligning the child's school hours with their parents' working hours, this arrangement will help promote family time in the evening as all the homework would have been done by the time everybody reaches home.”
“First, take bolder steps to improve Total Fertility Rate. Second, tap on our own talent pool, especially amongst the economically inactive women and older workers. First, I would argue that reversing the decline in birth rates should be the key plank in our population strategy. As the White Paper states, I quote, "Strong families are the bedrock of our society, through which we pass on our values and sense of belonging from one generation to the next." Although the ultimate decision to have children lies with the individual, the Government should take bold steps to support child birth and the raising of children. We should not be discouraged by what we have observed in East Asian countries, but thrive to learn from the Scandinavian countries and France, on how they reversed declining birth rates with strong pro-family and work-life balance measures provided by their governments. Mdm Speaker, the recent Marriage and Parenthood package is definitely a step in the right direction, but it needs to be much more transformational to materially change the trajectory. We need to develop a culture in which would-be parents are motivated by the sheer joy and excitement of parenthood, and encouraged by the persuasive pro-family employment practices and easily accessible childcare. Singaporeans work amongst the longest hours in the world, and one of the biggest concerns amongst couples contemplating parenthood is how they will juggle work and family commitments. We must change this. So, I propose that the Government set clear guidelines on pro-family employment practices as an integral part of Tripartite Guidelines on Fair Employment Practices.”
“We have heard much about the "hardware" improvements, such as infrastructure developments, but little on "software" considerations, such as the impact on our national identity and social cohesion. Mdm Speaker, one of the biggest concerns that many people have expressed is how we can ensure a strong core of Singaporeans. The White Paper projects that the ratio of citizens to total population may be diluted from 62% to 55%, with the number of foreigners ballooning from 1.5 million to 2.5 million, by 2030. These numbers are alarming; they conjure up images of Singaporeans being crowded out of their own home. There will be even greater dependency on low-skilled foreign workers in 2030, to deliver services in many areas of society – construction, manufacturing and social services. This heavy reliance on foreign labour carries with it a high risk. As economies in these workers' countries grow and develop, will a low-skilled job in Singapore continue to be attractive? What is the social impact of having so many of these foreigners with different social and behavioural norms, on our culture, security and way of life, as they live in close proximity to us? We should re-assess how some of these jobs are rewarded to make them attractive Page: 106 to Singaporeans. The Government has said that their projection of 6.9 million is a "worst case" scenario, to guide infrastructural development so that we are well provided. This implies that determined and sustained interventions are needed to put Singapore on a different trajectory. To this end, I would like to call for urgent action to ensure a stronger Singaporean core in our population strategy. I offer two key priorities for the Deputy Prime Minister's consideration so that we do not arrive at 6.9 million people.”
“Mdm Speaker, thank you for allowing me to join the debate. The release of the Population White Paper is indeed timely – matters of birth and ageing are not dealt with by near-term planning or sudden course corrections. They take years to effect, so we have to begin to shape today the Singapore that we want to see years later. I congratulate the Government for having the courage to raise this difficult but important subject for debate – it was always going to be controversial, but we need to tackle the issues head-on without pushing the burden to future generations. Page: 105 Ever since the release of this Paper, the media and public have focused on the "magic number" of 6.9 million people by 2030. Many are worried about what this would mean in terms of the influx of foreigners, changes to their lifestyle, increased competition for education, jobs, health care and transport. They find it difficult to embrace this vision of the future, particularly in light of the unresolved pain points resulting from rapid population growth over the last 10 years. To some, it is unthinkable to accommodate any more people on this small island of Singapore. But what is less often discussed is the hard truth behind the headlines: That if birth rates remain low, and with no immigration, as Deputy Prime Minister Teo shared, the ratio of working-age citizens to those above the age of 65 would reduce drastically from 5.9 to 2.1 by 2030. If we do not address this situation, we will head towards the dire consequences associated with a shrinking and ageing population. The White Paper sets out a roadmap to steer Singapore away from the path of stagnation and decline, and paints a vision of how our nation may continue to be a vibrant global city to accommodate the likely population trajectory.”
“When implemented effectively, they should augment our efforts to further strengthen Singapore's position as a leading international financial centre and improve consumer confidence and trust. Mr Speaker Sir, I support the Bill. 2.23 pm”
“Such an approach will generate a pool of Singaporean graduates who are able to serve the needs of increasingly sophisticated investors. They will be able to tap into the huge opportunities presented by the rapidly growing mass affluent segment throughout Asia who are attracted to bank in Singapore. Sir, I support the amendments under section 98C, which empower the Court to have regard to the claimant's reasonable effort to minimise his loss and resolve the dispute before commencing civil action in court. With this amendment, I would like to suggest that the jurisdiction of the Financial Industry Disputes Resolution Centre Ltd, FIDReC, be expanded to cover cases beyond $100,000 for claims on insurance companies and $50,000 for disputes between consumers and banks. Lifting the cap to higher amounts will help to make sure that investors have access to a low-cost dispute resolution scheme that is both independent and impartial. Finally, I believe that the best protection against mis-selling is a knowledgeable investor. Investors should understand their rights, what they can expect from a financial adviser, and questions they should always ask of any product they are considering, to ensure complete understanding. They should absolutely be jointly responsible for ensuring the suitability of products that they purchase. In this regard, I believe there is much we can do to educate the investing public on risks, pitfalls and the importance of sharing their own details with the FA to allow proper assessment of what is best for them. In conclusion, I believe that the proposed amendments will enhance market conduct. They are in line with the standards set in other leading financial centres.”
“In reality, raising the standards of market practice can only be achieved by raising the skills, knowledge and expertise of practitioners within the financial industry. It is often the case that when FA representatives provide inaccurate information to clients, they do so not out of wilful intent but rather because of a lack of knowledge and expertise. Sir, currently, the entry requirements for anyone seeking to be an FA representative are four GCE "O" level passes. I find these to be inadequate, and not in keeping with the rising complexity of financial products, and also the intricacies involved in financial planning and the rising service expectations of a more educated and sophisticated public. I hope that MAS will review the competencies of FA representatives critically as part of the wider Financial Advisory Industry Review, in consultation with the industry players and also benchmarking them against other jurisdictions, such as Australia and the UK. I believe there is room for a higher standard in academic preparedness for a select group of FA representatives, so that they can serve the burgeoning wealth management market in Asia. I would like to ask that MOE consider introducing a course of study leading to a Degree in Applied Banking and Finance, which, in turn, would lead to a professional qualification for the Financial Advisory industry. This practice-oriented degree, which should be developed in close consultation with MAS and the financial industry, should equip students with a strong understanding of financial products and deep expertise in financial planning. Page: 1365 The programme should aim to produce graduates with a very special focus on understanding Asian investors and investment opportunities in Asia.”
“Page: 1364 To facilitate the implementation of this Bill, I urge MAS to guide FAs in their interpretation of the changes so as to strike the right balance between building appropriate levels of safeguards for the investing public and unnecessary bureaucracy with no value added outcomes for investors. Another point of caution, I urge MAS to ensure that, in tightening the regulations, they do not inadvertently constrain consumers' access to advice and products that meet their financial planning and retirement needs. Allow me to illustrate this danger with the sweeping reform of the UK's financial advice industry, known as the Retail Distribution Review. This reform, currently underway, will raise the costs and requirements for dispensing financial advice so sharply that industry players believe they can no longer afford to advise less affluent consumers in retail settings. These consumers will have to turn to non-advised service or use online "do-it-yourself" channels to navigate their own financial planning and retirement planning alone. One major UK bank has announced that they will no longer offer retail customers financial advice at their retail bank branches. And several other key players have decided to stop servicing mass market customers, preferring to only offer holistic financial planning services to clients with a minimum level of investible assets because they believe it is no longer commercially viable to serve smaller clients. So, MAS should ensure that the proposed amendments do not adversely impact the average consumers' access to the much needed financial advisory services that help to secure their financial future. The changes should not limit access to quality and variety of products to meet their needs.”
“The amendments extend liability from "intention to deceive with false and misleading statements", to include recklessness and negligence. Given that the technical elements in financial products are assessed by specialists, I am concerned about the challenges in ascertaining if an FA representative "knows or ought reasonably to have known that the statement is false or misleading", per the Bill. Sir, as MAS implements this series of tightened regulations, and also a slew of measures set out in the 2010 Consultation Paper, I would like to sound a cautionary note about imposing overly onerous requirements. These could well stifle the development of the financial market and have unintended consequences for investors, in terms of product choice, costs and convenience. I have observed how FAs in other Asian markets, in their efforts to comply with regulations, end up building safeguards into their client investment processes that are bureaucratic and inconvenient. This ends up becoming a frustrating experience for their clients. One example is the insistence that financial transactions can only take place in person at the FA's branches where interactions with clients are fully recorded. Another example is clients being subjected to lengthy documentation, confirmations, double confirmations and independent checks in order to guarantee that compliance can never be disputed. And each time the client buys the same product, he is subjected to the same lengthy disclosure process, as if he is buying the product for the first time.”
“Mr Speaker, Sir, first, I wish to declare my interest as an employee of Standard Chartered Bank. I speak in support of the Bill. The Financial Advisers (Amendment) Bill seeks to improve the protection of the investing public by extending civil liability to FAs on their obligations to furnish product information to investors, and not to make false and misleading statements. Page: 1363 The introduction of this Bill is timely in the wake of the Mystery Shopping exercise commissioned by MAS. In their report released in July 2012, MAS found the quality of financial advice and information provided by FAs to be "inadequate". Up to 30% of the products recommended did not match the client's financial objectives and investment horizon, and there is significant room to improve market conduct. The amendments proposed are in line with expectations that FAs are to exercise due care and diligence when making representations of products that they recommend to clients. Only when clients have thorough and accurate information will they be able to properly evaluate financial products in terms of suitability, risk exposure and expectations of investment returns. This Bill will further raise the standards expected of FAs in disclosure requirements. However, Sir, section 26 of the Bill may have gone too far in imposing liability with the range of prohibited conduct as it relates to FA representatives, not so on FA firms. I would like to seek clarification on the level of due diligence that one can reasonably expect from a licensed FA representative. Product information is prepared by financial product specialists, and it may be asking too much of an FA representative to judge whether every piece of information provided in the Product Highlights Sheet is correct.”
“I would like to ask a simple supplementary question. Is there a time frame that the Minister is looking at for this conceptual framework and whether it is possible to be implemented in Singapore soon?”
“Sir, I thank the Minister of State for his comprehensive answer on productivity, and I appreciate the many schemes we have in Singapore to support the productivity initiative. I have two supplementary questions. One relates to whether the Ministry will consider consolidating and simplifying the many assistance schemes under the productivity improvement efforts to make them more accessible. This is in relation to the feedback that many SMEs have given that they actually feel lost in the sea of complexity of schemes and the paper work. The second supplementary question is whether the Ministry will consider doing more to proactively reach out, especially to the SMEs with tailored sector level intervention and support, and help them replicate best practices quickly, just like what we have seen recently in the food manufacturing sector.”
“Sir, I would like to thank the Minister for the clarification and answers. May I ask more specifically on affordability, and if the Minister could share what planning parameters the Ministry uses to determine prices? And how is average household income used as an indicator to determine affordability?”
“Whilst I agree that additional measures may impact labour market flexibility, I am not convinced that employers, relying only on guidelines by the Tripartite Alliance for Fair Employment Practices, have delivered the desired outcomes. Our EP framework should ensure that as we welcome foreign professionals who bring specialised skills and expertise, Singaporeans are first considered for the jobs they can perform and they want to perform. This is currently missing. Sir, I find it puzzling and ironic to read in the tripartite guidelines for hiring and developing a Singaporean Core that employers are advised, and I quote, "to ensure that jobs advertised must be open to Singaporeans". In most other countries, it will be taken for granted that locals should be considered first for jobs, and employers are expected to demonstrate that they had made a great effort to do so, before considering foreigners. Employers are also mandated to pay foreign workers the prevailing market salaries for locals so that the same occupational group, are not compressed by the presence of foreigners in the workplace who are willing to take less for their work. Many other countries even require employers to comply with dependency ratios for nationally strategic sectors, such as banking in Dubai. So, for a start, I urge the Minister to consider including a broad statement of principles in the EP framework designed to send a strong signal to employers regarding their obligations and responsibilities in developing a strong Singapore Core in the workforce. This is to ensure that the access to foreign executives does not result in Singaporeans being adversely impacted in job opportunities. With this, Mr Speaker, Sir, I reiterate, once more, my support for the Bill. 5.15 pm”
“If whistle-blowers can be assured by MOM that they will assist them in finding another job in Singapore, it would help remove the fear amongst these vulnerable workers of being punished when they help to bring errant employers to book. In this spirit, I applaud the amendment that requires employers to maintain the upkeep of workers who are awaiting resolution of their complaints, prior to repatriation. Sir, the proposed Bill focuses mainly on lower level foreign workers who enter Singapore on Work Permit. I am disappointed that no measures were introduced to address concerns in regard to employers' obligations and responsibilities in hiring foreigners on EP, who compete for professional, managerial and executive jobs. I had spoken in this House on this subject in the past, urging the Ministry of Manpower to moderate our liberal policies for EP holders. Unlike those on Work Permits who are subject to levies and dependency ratios, EP holders simply have to meet a minimum salary threshold of $3,000 per month with specified education qualifications. To ensure that companies develop a strong core of Singaporeans amongst PME jobs, I had called for employers to be obliged to show that they had attempted to employ Singaporeans first, before they consider foreign executives. I had further urged the Ministry to consider that, when employers cannot find a qualified Singaporean for the job, they are then obliged to invest in the training and development of Singaporeans to fill those jobs. Page: 761 In response, the Minister had expressed concerns that these measures would subject employers to additional administrative hurdles, lengthen hiring process and add more friction, costs and rigidities to their procedures.”
“Page: 760 Apart from stronger laws, I hope the Ministry will also consider addressing the problem of unscrupulous intermediaries, by setting up the necessary infrastructure to link job seekers directly with their potential employers. Such disintermediation also increases productivity and improves communication between legitimate parties. Other problems commonly faced by non-domestic foreign workers include provision of acceptable accommodation, prompt salary payment and excessive working hours and overtime over sustained periods that could be detrimental to health and safety. Would the Minister please share how the proposed amendments will help address this set of common problems faced by foreign workers? Sir, enforcement efforts can be further enhanced by foreign workers themselves, if they come forward to expose errant employers. Unfortunately, too many do not understand their rights, their avenues for redress or the procedures for reporting abuse. Many foreign workers suffer exploitation in silence, fearing the loss of their jobs; and often not without justification. For example, one Bangladeshi worker related how he had once joined a group of 25 workers to complain about their errant employer to MOM – in the end, 20 of the complainants lost their jobs as they were terminated shortly thereafter. There is a hotline at the Ministry for callers to report on worker abuse, and the illegal employment and deployment of foreign workers. Would the Ministry share with us how effective this hotline has been and how many cases have surfaced through it? Could the Minister also let us know how many cases have surfaced as a result of whistle-blowing and if there are any schemes to assist whistle-blowers who may have lost their jobs as a result of their brave acts?”
“I hope this presumption clause goes a long way towards deterring the illegal practice by employers and their intermediaries, both foreign and local, of demanding exorbitant fees from foreign workers. I get consistent feedback from foreign workers, from Bangladesh, China, India and Myanmar, that this practice is persistent and widespread. They are expected to pay thousands of dollars, often in cash, to secure or renew their employment in Singapore. These transactions often involve multiple parties, all part of well-organised syndicates. Not only do such practices subject poor foreign workers to long servitudes of crippling debt, but they also deceptively position Singaporeans at an unfair disadvantage to foreigners, by distorting the true level of foreign worker wages. I also hope that the other amendments in the Bill to enhance the investigative powers vested in the enforcement officers in the conduct of their investigations; to enhance the prosecutorial powers as well as to increase the severity of penalties for infractions will all help put a stop to such pernicious practices. Sir, the new regulations are welcome. But the tighter regulation must be coupled with effective enforcement in order to have any meaning for those who are bent on circumventing the law. My concern is whether or not the Ministry has the necessary manpower and resources in place to conduct investigations and checks. The Ministry may wish to time their implementation of these rules with their readiness to step up checks, using a special enforcement task force. I believe it is important to send a strong signal: heighten deterrence early on and leave employers in no doubt as to the Ministry's resolve to weed out errant players, in order to achieve the maximum effect of the legislative amendments.”
“Mr Speaker, Sir, I speak in support of the Bill. This Bill contains amendments that are urgently needed to shore up the integrity of the work pass framework, and further strengthen the enforcement regimes against unscrupulous employers that exploit vulnerable foreign workers. Page: 759 The Employment of Foreign Manpower Act (EFMA) prescribes the responsibilities and obligations pertaining to the employment of foreign workers. The foreign worker population in Singapore is significant – it currently stands at 1.2 million, or one third of the total workforce. So, it is critically important to regulate the conditions of their employment. Given our current reliance on foreign labour in many industries, we have to ensure Singapore can continue to attract the right number and quality of foreign help. This includes the protection of foreign worker's basic rights and well-being. At the same time, we need to safeguard the interests of Singaporean workers, and to ensure that employment conditions of foreign workers do not adversely impact local job opportunities, wages and working conditions and that our citizens remain at the core of our workforce. This amendment Bill comes as a welcome addition to on-going efforts by the Ministry to improve the plight of work permit holders, including the recent range of measures catering to foreign domestic workers, such as mandatory rest days; safety rules on the cleaning of windows and the new Settling-in Programme. Sir, the Bill's new presumption clause on "kickbacks" presumes that any monies collected from foreign workers are collected as consideration for employment, and will attract a maximum fine of $30,000 and/or two years' jail.”