Gan Kim Yong
Singapore
“Consumer complaints relating to the secondary resale market for tickets to major events and concerts have generally remained low. Nonetheless, to protect the public from scams on secondary ticket resale platforms, the Police have imposed Code of Practice requirements under the Online Criminal Harms Act to require designated online service…”
“Singapore does not condone the use of forced labour. We criminalise forced labour in Singapore under various laws. Relevant Government Ministries and agencies, such as the Ministry of Manpower, Ministry of Home Affairs and Singapore Police Force, play their part in investigating complaints of suspected breaches in domestic laws that relat…”
“The Association of Banks in Singapore (ABS) discontinued the PayNow nickname feature as scammers had been exploiting the use of nicknames to impersonate legitimate entities and trusted individuals.”
“As of end-2025, around 6,900 private residential buildings have registered their solar installations with SP Group for the export of excess solar-generated electricity to the grid. The installed solar capacity of these residential buildings is 115.3 megawatt-peak (MWp), or around 5.5% of all current installed solar capacity in Singapore.”
“The one-year pilot extension of liquor trading hours has seen strong interest from businesses. As of 31 May 2026, the Police have approved 88 applications for the extension of liquor trading hours from public entertainment outlets in these areas.”
“The Government does not make projections of domestic or regional demand for renewable diesel or sustainable aviation fuel. Demand depends on commercial considerations, evolving market conditions and regulatory developments across different jurisdictions.”
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“We must press on with our efforts to enhance the retirement adequacy of Singaporeans by strengthening our CPF system. I am confident that with the strong support from our tripartite partners – NTUC, SNEF, SBF and other stakeholders – we will make good progress on all these important fronts. PMETs and CET Centres”
“Straughan and Mr Nordin have asked how various types of workers, such as self-sponsored, self-employed, casual and contract workers, can benefit from WTS. They can benefit from highly subsidised course fees. They can also sign up for Workfare-Skill Up and receive training allowances. In addition, they are eligible for the TCA if they are WIS recipients. Workers who are not sponsored by their employers can also approach the various self-help groups such as MENDAKI, SINDA, CDAC, under the Surrogate Employer Programme to qualify for higher course fee subsidies. Mr Lee expressed concern that low-wage workers will not know how to apply for such schemes. I would like to assure him that we will be reaching out to low-wage workers through mass media and community events. They can also approach the usual contact points such as CDCs, e2i and CET Centres to sign up for training. We will also be providing a dedicated toll-free number, in all four languages, that they can call for more information. The WTS will be rolled out from 1st July 2010. It will run for three years at an estimated cost of $190 million over the period. We are aiming for a stretch target to benefit an average of 30,000 low-wage workers annually over the three years. Madam, it will be a significant challenge to shift our economy towards productivity-driven inclusive growth while at the same time addressing the issues of an ageing population. We will need to maximise the skills and potential of every single worker – including those who are older or earning lower wages so that they are not left behind. This will also help build up a sustainable pipeline of skilled workers so that businesses can continue to grow.”
“Mdm Zarina is one of them. She only had Primary 2 education and was unable to find permanent employment. Upon seeking employment assistance from the CDCs last year, she took up the WSQ F&B Certificate. Owing to her work ethic and positive attitude, she eventually secured a permanent position with Dunkin' Donuts which pays $1,000 a month. She also completed her literacy training. In total, she received about $2,400 in course fee subsidies and training allowances. Workfare-Skill Up is introduced to formalise these structured training programmes so that more workers like Mdm Zarina can benefit. Employers and workers, including contract and casual workers, which Mdm Halimah was concerned about, can both receive significant benefits under WTS. Let us take as an example, a 60-year-old worker, Mr Yeo, who earns $1,000 per month and is a WIS recipient. His employer decides to send him for a WSQ Certificate course which takes 48 hours. If the cost of the two modules is $2,000, his employer will enjoy 95% course fee subsidies of $1,900, as well as absentee payroll of about $240, a total benefit of $2,140 for the employer. If Mr Yeo obtains two SOAs and the full WSQ certification within a year, he will receive a total of $400 in Training Commitment Award (TCA). Under the enhanced WIS scheme, Mr Yeo himself will also receive $2,800 in WIS per year. In total, Mr Yeo will receive $3,200 this year. With better skills and qualifications, he will be able to move on to larger job scopes which can justify higher wages over time. Several MPs like Mdm Halimah, Mr Low Thia Khiang, Dr Amy Khor (during her speech in the Budget Statement debate), Assoc. Prof.”
“He can also receive an additional $200 TCA when he has completed enough modules for a full WSQ qualification. The total TCA he can receive each year will be capped at $400. Mdm Halimah may wish to note that the TCA goes directly to the employees. To recognise low-wage workers' recent training efforts, we will allow a one-off recognition of up to two SOAs completed in the 12-month period between 1st July 2009 and 30th June 2010 for the first payout. So there is still time for workers to go for training and meet the requirement before 30th June 2010. WIS recipients need not apply for the TCA as it will be assessed and paid out automatically with their WIS. Apart from the Employer Grant and TCA, we will be introducing a structured training component, Workfare-Skill Up, to further lower barriers to training for low-wage workers who lack the literacy and workplace skills to take on better paying jobs or go for further upgrading. This programme takes a holistic approach, including customised classes, mentorship, and structured training pathways. Training will be customised to address the needs of low-wage workers who may have difficulties taking time off work or have family commitments. To further lower barriers to training, Skill Up will provide milestone awards of $200 to specially reward low-wage workers for each advancement in literacy level that they attain, as this is typically an area of greater difficulty for them. In addition, to help offset the various costs associated with training, training allowances will also be provided. After training, e2i, CDC career centres and CET Centres will help to place the trainees into better jobs. 7.00 pm Low-skilled, low-wage workers have benefited from similar structured training arrangements in the past.”
“This is due to various obstacles to training such as the lack of confidence, family and work commitments, or the lack of basic literacy and numeracy skills to take up vocational training. The opportunity cost may also be quite high for some low-wage workers who may depend on overtime income or two jobs. Their employers may not be motivated to send them for training in view of the costs involved. We will make a bigger push to encourage this group of older low-wage workers to upgrade their skills, and to incentivise their employers to send them for training. We will introduce a three-year Workfare Training Scheme, or WTS, to complement WIS. To be eligible, the trainee must be a Singapore citizen aged 35 and above. WTS will comprise three components. First, to encourage employers to send their older low-wage workers for training, we will provide an Employer Grant to further subsidise employers' net absentee payroll and net course fee outlay. Specifically, if an employer sends his worker who is earning $1,400 and less a month for training, he will receive 95% course fee subsidy and absentee payroll; and 90% for a worker earning between $1,400 and $1,700 a month. This is higher than the usual course fee subsidy of about 80% funding at CET Centres and absentee payroll before SPUR was introduced. Second, we will introduce the Training Commitment Award (TCA) which will encourage workers to attain a certain level of training. For every two Employability Skills (ES) or Workforce Skills Qualification (WSQ) Statements of Attainments (SOAs) that a WIS recipient obtains within a period of 12 months, he will receive $200. The time requirement of 12 months is meant to encourage regular training.”
“The enhanced WIS scheme will apply to work done in 2010 onwards. The first payment for work done in the first half of 2010 will be made in September this year. Self-employed persons and informal workers who declare their income for the first half of 2010 and make their Medisave contributions by 31st July can also receive their first WIS payments in September. Mr Seng asked if WIS can be paid to self-employed persons automatically. Self-employed persons will receive WIS automatically once they declare their income and make the required Medisave contributions. The enhanced WIS scheme is expected to benefit up to about 400,000 workers. This is higher than the 320,000 expected recipients for 2009. To fund the enhanced scheme, we will increase the budget allocated for WIS to $440 million a year. As Mr Seng pointed out, we need to ensure that older workers are included in the national productivity drive. For workers, productivity is about raising skills to take on higher value jobs which justify higher wages over time. Therefore, besides encouraging firms to develop productive work processes supplementing workers' income, we must also help older low-wage workers move out of low-wage employment through training and upgrading. Lower-income workers generally have a lower incidence of training. Of employed residents aged 35 to 64 in 2009, the training participation rate of those earning $1,700 and less was 14%, less than half the rate of 30% for those earning above $1,700. Training incidence also drops as workers age. There is thus a double whammy for the older low-wage workers when the effects of both age and income are combined.”
“Currently, we make a provisional payment in the middle of the year based on work done in the first six months. However, once we assess the worker's overall eligibility at the end of the year, he may qualify for lower WIS, or none at all, resulting in a need for us to recover the excess WIS payments. This is not ideal. Henceforth, the first six-month period will be assessed independently from the end-of-year annual assessment. This means that recipients will be able to keep the mid-year WIS payment they receive, regardless of their income in the second half of the year. Ms Ellen Lee, Dr Khor, Mr Terry Lee and Mdm Halimah asked about adjusting other eligibility criteria so that the WIS can benefit more workers. Mr Lee proposed using per capita household income. As WIS is a broad-based scheme, we have to keep the scheme and the criteria simple. Existing criteria are easy to administer and serve the purpose. There are other schemes available to help those who may have unique family profiles. Mr Terry Lee and Mdm Halimah suggested excluding overtime pay from WIS eligibility. Basic salary, overtime pay or bonuses are all income that helps support the worker and his family, and should be taken into consideration. We also do not wish to motivate employers to reduce basic pay and increase overtime. WIS is designed such that the sum of a worker's pay and WIS will always increase if a worker earns more. Let me explain with an example. Mr Huat is a 45-year-old pipe fitter. He earns $1,200 a month and will receive $1,283 in total average income, after adding an average WIS of $83 a month. If his salary increased by $200 to $1,400, his average WIS drops to $50 per month, but his total income of $1,450 is still higher than the $1,283 he used to receive.”
“My Ministry has completed this review and found that WIS has worked as intended by supplementing low-wage workers' incomes while preserving work ethic through its emphasis on rewarding work. The design of the WIS is fundamentally sound, but it can be strengthened further. The strong growth in 2007 and early 2008 has enabled the bottom 20% of workers to enjoy real wage growth over the past three years. However, they remain more vulnerable to economic shocks than other income groups. We can do more to help them. First, we will increase the maximum WIS that a worker can receive. A low-wage worker aged 60 and above can now receive up to $2,800 in WIS, $400 more than before. We will also extend the income ceiling to qualify for WIS from $1,500 to $1,700. The factsheet that I will circulate shortly will provide more details. Dr Amy Khor, during the debate on the Budget, has asked for more WIS cash payments. I understand her wishes but let me stress that it remains an important objective of WIS to help workers save through their CPF. With the increase in WIS payment quantum, the cash component will correspondingly increase. For example, a worker aged 60 with an income of $1,000 will receive $686 cash currently. With the adjustment, under the enhanced WIS, he will receive $800 in WIS in cash. This is $114 or 17% more in cash. Mdm Halimah, Dr Khor and Mr Inderjit Singh suggested paying WIS quarterly. Mdm Halimah also suggested shortening the work period criteria. WIS is meant to encourage regular work. Hence, the current criteria of requiring at least three months of work for every six-month period and making two WIS payments a year are more appropriate. We will, however, adjust how the first payment is made.”
“On average, each self-employed person contributed 12% more to their Medisave in 2009 compared to 2008. This has helped raise the average Medisave balance of self-employed persons to $15,900 as at end 2009, 6% higher than in 2008. The proportion of self-employed persons who have met their Medisave liabilities also increased from 78% in 2004 to 81% last year. I must stress that it is the personal responsibility of self-employed persons to provide for their healthcare needs by contributing to Medisave. But the Government will help encourage them to do so. Those with low wage can receive the Workfare Income Supplement if they meet their Medisave liabilities. There is even a Medisave Contribution Draw (MCD) where those who make Medisave contributions stand to win cash prizes of up to $5,000. The Government will continue to work with our tripartite partners and grassroots leaders to reach out to the self-employed, and encourage them to save for their healthcare needs through Medisave contributions. I will now turn to Workfare, a key programme to help older low-wage workers. We introduced the Workfare Income Supplement or WIS scheme in 2007 to help older low-wage workers who are more vulnerable to wage stagnation. The WIS scheme rewards work by supplementing the workers' incomes and building up their CPF savings. Since 2007, the Government has given out over $300 million in WIS every year to about 300,000 Singaporeans. When WIS was introduced, we said that we would review it in three years. The ESC has also recommended that WIS be reviewed as it is an important part of our approach to bring about inclusive growth.”
“This is because CPF Board has taken a more prudent approach and used top-ups beyond the cohort's Minimum Sum to extend the payout duration rather than to raise the payout amount. However, some members would prefer to have the benefit of higher monthly payout after making top-ups, rather than stretch their payout durations out beyond a reasonable period. 6.45 pm We have taken on board their suggestions. From July this year, we will allow members to apply for an upward adjustment in their CPF monthly income provided that their payouts can last at least 20 years from their Draw-Down Age, or at least another five years from the time of application, whichever ends later. Another aspect of CPF policy which we will fine-tune is how CPF members may distribute their CPF monies following their demise. We have received feedback that some members would like to use their CPF monies to provide for the retirement needs of their dependants. To facilitate this, we will amend the CPF Act to allow members the option of transferring their CPF monies directly to their nominees' CPF accounts when they pass on, rather than to pay their nominees in cash. In addition, we will be introducing the Special Needs Savings Scheme announced by MCYS yesterday. This scheme will allow parents of children with special needs to stream out the CPF monies they bequeath to their children monthly, rather than as a lump sum. By leveraging on existing CPF infrastructure, we can keep the administrative cost low to benefit parents and encourage them to save for the long-term needs of their children with special needs. Details of the scheme will be announced later. Mr Seng Han Thong asked for an update on the CPF Medisave contributions by self-employed persons.”
“Mr Sam Tan asked how we are helping members who are not auto-included in CPF LIFE at age 55. Between age 55 and the draw-down age of 65 years old, members' CPF balances typically continue to grow. If a member has $40,000 in his Retirement Account at 55, he would have about $60,000 at 65, due to interest income alone. Members who have lower balances and are not auto-included at 55 may also be able to increase their CPF savings significantly by age 65, especially if they continue to receive CPF contributions from work or refunds from the sale of property. We will therefore also auto-include those with at least $60,000 in their Retirement Account at age 65. This will apply starting from the first auto-inclusion cohort, ie, those who will turn 55 in 2013. Mr Zainudin Nordin asked what else can be done to improve the CPF system, besides implementing CPF LIFE. First, we will refine the CPF Investment Scheme (CPFIS). Today, monies in excess of $30,000 in the Special Account can be invested under CPFIS. Given the higher interest rate on the Special Account and the volatility of CPFIS returns, we should take a more conservative approach. Hence, we will raise this threshold to $40,000 with effect from July 2010. This means that members can only invest Special Account monies in excess of $40,000. Existing investments will be unaffected until they are liquidated. This adjustment will affect 2.7% of all CPF members. Next, we will enhance the Minimum Sum Topping-Up Scheme to further encourage top-ups to family members' CPF accounts. Some members have given feedback that our top-up rules do not allow payouts to be raised beyond the maximum cohort payout level, and may result in excessively long payout durations.”
“She did not mind a smaller bequest, as her children are able to support themselves. As Mdm Lee's Retirement Account balance was low, her children topped up her account to increase her LIFE payout and to maximise the L-Bonus entitlement, while taking advantage of the tax relief offered in the process. Both Mr Yesudason and Mdm Lee had carefully evaluated their financial circumstances before signing up for CPF LIFE. I encourage other older members to do the same, if they have not already done so. To qualify for the L-Bonus, they would need to join CPF LIFE by 31st December this year. We agree with Mr Chong that public education is important. Since September last year, CPF Board has sent direct mailers to every eligible opt-in member with information on CPF LIFE. The Board has also reached out through various media channels, the CPF website, as well as regular talks and road-shows on CPF LIFE. Members are encouraged to approach the CPF Board for help and advice if necessary. From 2013 onwards, members turning 55 with at least $40,000 in their Retirement Accounts (RA) will be automatically included into CPF LIFE, together with additional savings in their RA which they may receive between 55 and 65. CPF LIFE will provide them with a lifelong monthly income from age 65 onwards. Members with lower balances can still opt into CPF LIFE. Mr Chong asked about private annuities in lieu of CPF LIFE. The National Longevity Insurance Committee had recommended that members who will receive a pension or annuity with benefits equivalent to CPF LIFE, and is either irrevocable or recoverable by CPF in the event of termination, be exempted from auto-inclusion. Such pension and annuity schemes will need to be approved by the CPF Board.”
“Mr Charles Chong asked about those who have yet to sign up. Let me explain that the early introduction of CPF LIFE was in response to public feedback that some older members would like to join LIFE ahead of the mainstream implementation in 2013. However, many older members would have withdrawn a significant portion of their CPF savings when they reach 55 and would have less savings in their CPF. Furthermore, those past their Draw-Down Age would already be receiving payouts under the Minimum Sum Scheme. Some of these older members could also have made other plans for their retirement finances such as buying private annuities. CPF LIFE may not be suitable for all of them. Hence, I would advise members to consider their individual situation, such as their personal finances, family support available and other factors before deciding whether to opt into LIFE or which LIFE plan to opt into. To give members a sense of how such decisions were made, let me share a few examples. Members would recall that CPF LIFE offers four plans, allowing members to choose their preferred level of monthly income and bequest. The most popular plans have been the LIFE Plus Plan and the LIFE Balanced Plan, with more than half choosing the former and about a third choosing the latter. Mr Yesudason surrendered a private annuity plan to join CPF LIFE. He did the sums and found that he would get a higher payout from CPF LIFE because he could benefit from the L-Bonus. He approached CPF Board for advice before selecting the LIFE Balanced Plan which will provide him with a balanced level of payouts and bequest. Another member, Mdm Lee, chose the LIFE Plus Plan, which provides a higher monthly income but a lower bequest compared to the LIFE Balanced Plan.”
“Toppan Security Printing is one such example. It has invested in more automation to aid their older workers. It has also organised a workshop to encourage employees aged 55 and above to remain relevant in the workplace. Their employees who have reached the retirement age will have their contracts renewed on a yearly basis, subject to health clearance. Wages of re-employed employees are reasonably adjusted, taking into account their workload and job responsibilities. Besides the employers, we also need older employees' commitment to re-employment. Mr Kunalan, a 69-year-old coach at NIE, shows that age is not a barrier as long as one has the passion and desire. Not content to retire at age 55, he extended his contract for five years and has continued working since then, way beyond the initial five-year contract term. Mr Kunalan says he wants to continue working as long as he can contribute and share his experience. To further promote re-employment, and up the readiness of all stakeholders, the tripartite partners will be kicking off a public campaign next month. Besides preparing for re-employment, the Government has also introduced changes to the CPF over the past few years to improve the retirement adequacy of Singaporeans, including the introduction of CPF LIFE. In September last year, CPF LIFE was made available for older members aged 55 and above to sign up. About 37,000 members have signed up since, committing a total of $1.7 billion. More than $120 million top-ups were made into members' Retirement Accounts to raise their LIFE monthly income. Of those who signed up, 72% qualified for the L-Bonus and 74% qualified for the V-Bonus. These members will receive a total of $96 million in bonuses from the Government.”
“We will introduce a Capability Development grant of $10,000 under ADVANTAGE! for SMEs to develop HR systems to implement re-employment. They will first undergo the PREPARE programme by the Association of SMEs (ASME), which will guide them through the implementation of good re-employment practices. They can use the grant to defray some of the implementation costs. All companies will continue to be eligible for up to $400,000 grants from ADVANTAGE! if they recruit, retain and re-employ older workers. They can also tap on the fund for job redesign initiatives targeted at enhancing the employability and productivity of older workers. Examples include automation as well as industry-sponsored projects like the Security ADVANTAGE! programme. Companies can refer to the case studies on the SNEF web portal for more ideas. Prof. Paulin Straughan would be happy to note that companies can also use the ADVANTAGE! grant to train their HR managers and older workers, including older PMETs. In addition to job-specific training, employers can also prepare their older workers for re-employment by sending them to the READY programme by the Centre for Seniors (CFS). To further spearhead job redesign, we will set aside $5 million to fund industry-specific projects. We encourage companies from similar industries to work with their industry associations and partners, like the polytechnics, to use the fund to develop solutions that will enhance productivity across the industry. In all, we will commit an additional $50 million for the enhanced ADVANTAGE! scheme from April 2010 till the end 2011. Awareness of re-employment legislation is already high amongst employers. We must now move our outreach programme beyond awareness to readiness. Some employers are already re-employment ready.”
“Nonetheless, we recognise that some employers may not be able to do so despite their best efforts. In such situations, employers should provide employment assistance to these employees, including career counselling, training, as well as an EAP. The EAP should be carefully calibrated so that it neither imposes an undue burden on employers nor becomes an easy alternative to re-employment. Feedback from tripartite partners indicates that three months of salary could be a practical "reference point" for the EAP quantum. To provide further guidance, the Tripartite Guidelines will stipulate a minimum EAP of $4,500 and a maximum EAP of $10,000. The $4,500 mark is roughly three months of salary for the 25th percentile of workers while the $10,000 mark would cover three months of salary for about two-thirds of our workforce. Employers and employees should exercise flexibility in determining the actual EAP amount, using these levels as references. The Tripartite Guidelines will be released today. They will set the parameters and norms on how re-employment should be implemented. I strongly urge all employers and employees to adopt the recommendations in the Guidelines so that they can be re-employment ready by 2012. A key tool companies can tap on for help in becoming re-employment ready is the ADVANTAGE! scheme. Since its introduction in 2005, over 1,300 companies have signed up for the programme. They have committed to recruit nearly 5,400 older workers, retain 21,000 and re-employ almost 9,500 older workers. A total of $33.2 million has been committed so far. To encourage more companies to become re-employment ready ahead of the 2012 deadline, we will enhance the ADVANTAGE! scheme. SMEs, in particular, may need more help.”
“MOM's Labour Force Survey in 2009 also found that the employment rate of older residents aged 55-64 has remained stable at 57.2%, despite the economic downturn. This shows that employers generally value older workers. We agree with Mdm Halimah that it is useful to monitor the progress of re-employment in Singapore. We will consider providing regular updates moving forward. A set of draft Tripartite Guidelines on Re-employment was released in November last year. Feedback on the Guidelines has been encouraging. Key stakeholders have affirmed their support. There were a few useful and practical suggestions. Some employers said that it was more realistic to start engaging employees on re-employment issues six months before they reach retirement age, rather than 12 months, as originally suggested. Some employers also suggested having greater clarity on the quantum for the Employment Assistance Payment (EAP). Tripartite partners have carefully considered these suggestions and have addressed them in the revised Guidelines. Mdm Halimah and Mr Ang asked for an update on the EAP. Let me take this opportunity to elaborate further on the proposed EAP that is to be paid to eligible employees when employers are unable to offer re-employment. While employees generally welcomed the concept of the EAP, they were concerned that employers might use it as a convenient way to avoid re-employing their older workers. Employers, on the other hand, expressed concerns about the possible cost implications. As I had explained in Parliament earlier this year, we expect that the majority of the employers will be able to offer re-employment to eligible employees, given the flexibility re-employment offers.”
“It gives companies the flexibility to make necessary adjustments in their workers’ salary, subject to a cap of 10% and taking into account various factors such as performance and experience of the workers. This flexibility should be retained as it helps older workers remain cost competitive and employable, as some companies still practise seniority-based wages. However, as Mdm Halimah pointed out, employers should not implement the 10% wage cut at 60 automatically. Tripartite partners have been advising companies to exercise flexibility and fairness in adjusting the remuneration package of those reaching 60, taking into account the value of the job and the worker's contribution. Based on a survey by SNEF in 2005, most companies did not make any wage adjustments when their workers turn 60 and only 15% of employers reduced the wages of their workers at age 60. As part of our efforts to enhance the employability of older workers and encourage re-employment, we will continue to urge employers to move away from seniority-based wage systems and towards performance-based wage structures. Mdm Halimah asked for an update on the progress made in preparing for the re-employment legislation. The tripartite partners have been working closely over the last two years to help our companies and workers implement re-employment as early as possible. 6.30 pm The results so far have been encouraging. More than 800 unionised companies have already implemented some form of re-employment policies and practices. According to preliminary findings from a 2009 survey by the Ministry of Manpower (MOM), nearly two-thirds of companies surveyed already allowed their employees to continue working past age 62.”
“Madam, even as we strive for sustainable growth through the productivity drive, we must help every worker to benefit from our progress and enjoy financial security when they retire. One of the more vulnerable segments of our workforce is our older workers. Singapore's population is ageing rapidly. By 2020, just 10 years time, about one in six Singapore residents will be 65 years or older. Life expectancy has improved over the years and will continue to improve. A person retiring at 65 in 2008 can expect to live for another 20 years or more. Mr Wee Siew Kim asked about our efforts to provide opportunities for older workers. We do so by improving the employability of older workers and by introducing re-employment. Other agencies and self-help groups also offer a range of activities to cater to the social needs of our senior citizens. The legislation for re-employment will be introduced in 2012. Re-employment allows able older workers to continue contributing to their organisations. It provides flexibility to employers and helps them retain older workers beyond the minimum statutory age of 62 and continue to tap on their experience. A higher employment rate of older workers also benefits our economy as a whole by providing the much needed manpower resources to support our economic growth. Mr Ang Mong Seng suggested the abolishment of the retirement age to remove limits to employment. I think re-employment is a more flexible approach. Let us focus our efforts on implementing re-employment by 2012. Mr Low Thia Khiang asked if the Retirement Age Act will be amended to remove the provision for wage adjustment at age 60. As he pointed out, the provision was introduced in 1998 in response to the seniority-based wage system which affects the employability of older workers.”
“As Mr Teo Siong Seng said, and I quote, Zhai da hai shang hang xin, bu dan yao kao chuan zhang he lun ji zhang, ye yao kao shui shou, kao da jia qi xin xie li de tuan dui jing shen. (在大海上航行, 不但要靠船长和轮机长, 也要靠水手, 靠大家起心协力的团队精神.) Each of us has a critical role to play: the Government providing the help and support, enterprises taking the lead in innovation and investing in productivity, workers and unions responding proactively to upskill and reskill the entire workforce. We have weathered the economic downturn together as a team. I am confident that we have the strength and determination to build on this momentum and shift to a higher gear, decisively transforming ourselves into a productivity-driven economy and developing Singapore into a leading global city in Asia. Retirement age”
“It has made efforts to make the marine sector more attractive – an issue that Mr Charles Chong has raised – by taking part in the Place-and-Train programme to attract workers to make a career switch from other industries to train and become supervisors in the marine sector. To tap on the experience of its older workers, Jurong Shipyard extended the official retirement age for many of its local workers. Its oldest serving employee is 74 years old and it has another 120 employees who are aged 62 and above. These initiatives that I have just described have worked together to increase Jurong Shipyard's productivity – its value added per employee has almost tripled from $53,900 in 2004 to $150,000 per worker in 2009. Over the past few years, Jurong Shipyard has shared the gains from productivity and cost savings with its employees by giving out an average of 5.5 months of bonuses. Going forward, its parent Sembcorp Marine has set up a Productivity and Innovation Committee with a full-time secretariat to look at productivity improvements in all aspects of its operations. It has also set aside $10 million over the next two years to fund productivity and innovation projects. Jurong Shipyard has showed us how to make productivity and innovation an integral part of a company's core values. Similarly, we need to mobilise the entire nation to make productivity-driven growth a key priority over the next decade. The journey will be a challenging one but it promises to be a rewarding one. This will require a concerted effort by everyone – workers, unions, Government and employers alike.”
“Mr Heng Chee How has suggested that MOM allow hotels to cross-deploy foreign workers within defined job groups in the same hotel. We are aware that selected businesses may require workers to multi-task or perform a secondary job function. We have always taken a practical approach on this issue of cross-deployment. While MOM can and does exercise flexibility on a case-by-case basis, we also need to ensure that each foreign worker has a specified and primary job function so that cross-deployment does not inadvertently result in exploitation or fatigue. I am glad Mr Heng understands our concerns. MOM will study this issue further in consultation with the relevant agencies and industries. Let me end by returning to the challenge of raising productivity and share with the House an example of how a company can constantly reinvent itself to boost its competitiveness and raise its productivity. Since Mr Charles Chong asked about the marine sector and the construction sector, and since MND has already addressed the construction sector, I will use a shipyard as an example. Jurong Shipyard has, over the decades, grown from the traditional ship repairing and ship building business into new markets like rig building. By investing in innovation and productivity, it has successfully developed an innovative rig construction process that allows it to build more than one semi-submersible rig concurrently, thereby improving its productivity. Jurong Shipyard has also invested in the upgrading of its workforce to complement its innovation efforts. In 2009, it received a total of $100,000 in subsidies through Government schemes such as SPUR.”
“This movie was what Mr Ong was working on and many other blockbusters. After graduating with a Diploma in Film, Sound and Video from Ngee Ann Polytechnic, Mr Ong moved to the US to work in the visual effects industry. After spending several years abroad, he returned to Singapore in October last year and brought with him many years of experience working on feature films such as Night at the Museum 2 and Spider Man 3. He is now the Lead Digital Artist at Lucasfilm Animation Singapore. As we seek to attract both local and foreign talent, I agree with Mrs Josephine Teo and Ms Jessica Tan that we need to raise the quality of the foreign workforce. We have already implemented some initiatives to address this. In June last year, we raised the S Pass criteria so that only more qualified, skilled and experienced applicants are eligible. From July 2010, Work Permit holders in the hotel, retail and F&B industries will also have to pass the Service Literacy Test to qualify for the lower levy paid by skilled workers. Companies could also consider training their foreign workers alongside their local counterparts so that they can all become productive. Although course fee subsidies are not available to foreign workers, companies can still send their foreign workers for training courses and benefit from the Productivity and Innovation Credit and the National Productivity Fund announced by Minister Tharman earlier. As highlighted by Mr Ang Mong Seng and Mrs Josephine Teo, companies that require foreign workers should also retain better skilled and more experienced foreign workers since they will be able to contribute to greater productivity. Skilled workers can already work in Singapore up to a maximum of 18 years compared to six years for unskilled workers.”
“Singapore can ill afford to turn its back on talent, local or foreign. We need them to realise and even expand our economic potential and thereby creating good jobs for all Singaporeans. I agree with Ms Jessica Tan that we need to ensure that Singapore continues to be able to compete with other economies to retain local talent and attract global talent. We will continue to deepen our engagement with both local and foreign talent who want to establish and grow their careers in Singapore. Indeed, we have found that some of our foreign talent have not only contributed economically to Singapore, they have also made significant contributions in other ways. Dr Law Wei Seng, a Malaysian who came to Singapore on an ASEAN scholarship in 1991, is now a Permanent Resident and works as a Consultant at KK Women's and Children's Hospital. Apart from his professional work, he has taken part in a number of medical missions to disaster areas such as the Aceh tsunami area and the earthquake zone in Padang. For his valiant efforts, Dr Law has received two Ministry of Health awards. We are proud to have global talent like Dr Law amongst us. Local talent are important to us too. MOM has reached out to overseas Singaporeans by tapping upon the global networks created through Contact Singapore's worldwide offices to keep them connected to their homeland. In 2009, Contact Singapore organised about 200 information sharing and networking sessions with overseas Singaporean communities to update them on the latest industry developments and career opportunities available in Singapore. Mr Steven Ong is one local talent who has returned to Singapore. Most Members will not know Mr Ong but many Members would be familiar with this movie.”
“The levy tiers will allow growth companies to continue to have access to foreign workers but encourage employers to improve their productivity and reduce their reliance on foreign workers. Third, we will further differentiate the levy rates between the skilled and unskilled Work Permit holders to encourage companies that need foreign workers to employ better skilled and thereby more productive ones. The changes will be implemented gradually and in steps between 1st July 2010 and 1st July 2012 to give companies sufficient time to adjust and invest in measures to boost productivity. We will be briefing the industries on the details of the changes. I have circulated a factsheet that summarises the changes to Members for information. I will not go into the details of the changes because they are quite complex. The details should be in the factsheet. Mdm Halimah was concerned about errant employers who may exploit their foreign workers as a result. MOM will monitor and step up enforcement efforts against errant employers. Mr Ong Ah Heng is concerned that a company's levy bill will increase by a significant proportion as a result of these changes and the company may pass on the costs to consumers. Let me put things in perspective. The levy adjustment to be effected on 1st July this year represents an average of less than half a percent of the overall wage bill. If companies are able to improve their productivity and reduce dependence on foreign workers, the cost impact on them will be lower and, in some cases, companies may have net savings, especially if they tap on the various schemes announced by the Minister for Finance earlier. As we work to reduce our dependence on foreign workers, it does not mean that Singapore no longer welcomes global talent.”
“Let me illustrate with a story of how CET has benefited both individuals and companies. Ms Jasmine Tan is a senior restaurant manager at Yoshinoya who excels in both professional and horizontal skills. Even though Ms Tan has been working in the F&B industry for the past seven years, she is keen to pick up new skills. Ms Tan has undergone Yoshinoya's in-house training programmes and attended a variety of WSQ courses. She is now expanding her horizontal skills by starting on the WSQ Diploma in F&B Management at the University of Nevada, Las Vegas. Ms Tan is not only a keen learner herself – she is also passionate about helping others upgrade too. When Yoshinoya achieved the Certified On-Job-Training Centre status, Ms Tan was appointed as an On-Job-Training Instructor by ITE. She has since helped Yoshinoya grow by training crew members and new managers. For her excellent efforts in providing a holistic customer experience, Ms Tan was recently nominated as a finalist in the inaugural Singapore Experience Awards 2009. Both Yoshinoya and Ms Tan are winners as a result of CET. Let me now move on to foreign workforce. As part of our efforts towards productivity-driven growth, MOM has announced earlier that we will raise the levy rates and adjust the levy tiers for Work Permit and S Pass holders come 1st July 2010. These changes have three key features. First, we will increase the levy rates for Work Permit and S Pass holders to moderate employers' demand for foreign manpower and to encourage investment in productivity. Second, there will be no change in dependency ratios across all sectors, but we will adjust the levy tiers so that companies with higher dependency on foreign workers will have to pay higher levy rates. I have explained last week how this works.”
“We anticipate that there will be greater demand for more productivity managers and consultants who can help drive overall productivity efforts at the enterprise level. SPRING has approached the Singapore Productivity Association to launch a revamped Certified Productivity Practitioners Programme in April this year to cater to this need. WDA is also working with the Singapore Manufacturers' Federation to develop a WSQ Certified Productivity and Innovation Manager programme in the second quarter of this year to help enterprises in the manufacturing sector raise productivity and pursue business innovation. 5.45 pm We will roll out productivity-related skills training programmes for employers and workers. As Ms Denise Phua has pointed out, this should include the Chief Executive Officers (CEOs) with training suited to their needs. We will work with industry partners such as industry associations, training institutions and business consultants to help enterprises understand productivity concepts and implement global best practices. WDA has started discussions with the Singapore Productivity Association, the Logistics Institute Asia Pacific and Georgia University of Technology in this regard. Ms Denise Phua is right that we need to grow a culture of life-long learning so that workers will be motivated to re-skill themselves throughout the course of their working lives. I am therefore encouraged that more than 85% of WSQ trainees surveyed in 2009 indicated that they would continue to take up WSQ training in future. We will capitalise on this strong interest in CET and work closely with industry, unions, community groups and other Government agencies to sustain the momentum of our CET efforts.”
“You can think of the CET campuses like a medical hub, where specialists providing different medical services such as laboratory testing, radiology and specialist doctors like cardiologists, etc, are grouped together under one roof. They work together to provide comprehensive services to their patients. They can also share common services such as operating theatres. Similarly, the CET campuses will have clusters of related training providers working in tandem and tapping on common facilities to provide a holistic learning experience for our adult workers. Like the health screening centres at medical hubs, the career centres at the CET campuses too can provide holistic screening and advice to trainees and employers on what courses are most suitable for them. I have described so far how CET will form the foundation to make our workers better skilled, and therefore, more productive. Mr Heng Chee How and Ms Denise Phua have asked how we intend to build up productivity knowledge and develop the productivity DNA in our workforce. First, let me highlight that each enterprise and every worker must take responsibility for developing the productivity DNA in their workplace and proactively improving the productivity in their own areas of responsibility. Nonetheless, we recognise that companies may need some assistance in getting started on improving their productivity. They can leverage on the suite of capability development programmes that SPRING provides. Enterprises can also call upon SPRING's Centres of Innovation for technology consultancy and advice. At present, there are many business consultants in the private sector, though only some have specific productivity expertise.”
“To bring our CET system to the next level, we will develop two CET campuses by 2013 at Paya Lebar Central and Jurong Lake District. When ready, the two CET campuses will deliver a total of 150,000 training places and train up to 50,000 workers annually. Within each CET campus, we will bring together training providers of related sectors so that they can benefit from resource sharing and the collective expertise of the CET community. As our economy evolves, we can also expect the focus and clusters covered by the campuses to also evolve. WDA recently signed a Memorandum of Understanding with NTUC's e2i to operate and manage the West campus. WDA itself will operate the East campus. Through this collaboration with NTUC, we hope to make CET even more accessible. With the CET campuses, workers can go to the same campus to take different courses in related fields. For example, a person working in the hotel industry may want to take courses in service excellence, F&B service and hotel front service so that he can be multi-skilled. Currently, he might have to go to different training providers at different locations. With the setting up of the CET campuses, we will bring together all these training providers under one roof. He can undergo training in all three areas in one location. Similarly, an employer can customise courses by combining modules from different training providers located in the same CET campus for his employees. This creates greater value and improves productivity in training. Employers can also tap the career services available at the CET campuses to recruit workers.”
“Second, we will develop deeper expertise among other CET practitioners such as curriculum and assessment developers, assessors and administrators of training providers. By 2011, two more programmes will be added – a Specialist Diploma in Training Management and a Graduate Diploma programme for leaders of CET institutions. To encourage and support ground-up research projects as well as experiments and pilots of new CET approaches, WDA will launch a $3 million Research and Innovation Fund. This is on top of the $2 million that has already been earmarked for IAL to provide research grants and pursue collaborative research projects. The Fund will support efforts in areas such as curriculum design, training methodology and use of learning technology. Details of the grant scheme will be announced later. Next, we will make CET even more accessible to workers. We will develop new career services and find new ways of reaching out to workers to encourage them to go for training and facilitate their access to the CET system. WDA is working on an online integrated database where an individual can view his personal training records and skills pathways. This will make it easier for an individual to search for related WSQ training and find out more about courses that are relevant to his skills pathway. He can also use this system to search for jobs that match his skills and the training he has undergone. The system is scheduled for implementation next year. Let me assure Mr Hri Kumar that CET will always remain affordable to workers. Today, courses under the CET system are already heavily subsidised by the Government, with up to 90% of course fees subsidised under SPUR.”
“To add diversity and further raise the overall standard of our training providers, WDA will bring in best-in-class institutions, in partnership with local CET centres where appropriate. These institutions can complement our local providers by offering training in specialised skills sets and raising the quality bar. Some of them are already here in Singapore. These include DigiPen Institute of Technology for game design, Box Hill Institute for community and social services, and the University of Nevada Las Vegas for tourism and hospitality. More recently, NTUC's Learning Hub has linked up with the Fashion Institute of Technology at the State University of New York. WDA is also collaborating with Siemens Technik Akademie Berlin, a leader in Mechatronics engineering, to deliver a series of WSQ Mechatronics Systems Certification programmes that will deepen the technical competencies of our workforce in industries such as precision engineering, medical technology and marine. A total of 500 trainees are expected to benefit from this collaboration. We will also need to raise the quality of CET professionals, especially adult educators. Over the past year, around 1,400 trainers have obtained the WSQ Advanced Certificate in Training and Assessment (ACTA). Moving forward, we will further our efforts in two areas. First, to cater to the differing needs of CET professionals, we will move beyond ACTA to provide a full range of capability building programmes and an upgrading pathway for CET professionals. IAL will be introducing a suite of courses, including a Diploma in Adult and Continuing Education, to deepen the skills of adult educators in specific areas such as curriculum design and a Masters Degree in Lifelong Learning in collaboration with the University of London.”
“They can now choose to enrol in a polytechnic, take up a technical diploma offered by ITE, or enter a CET centre to obtain a WSQ Diploma, depending on the area that they are interested in. Another example is the Diploma in Horticulture and Landscape Architecture from Ngee Ann Polytechnic that has incorporated the WSQ Certificate in Landscape Operations in the programme in collaboration with the Centre for Urban Greenery and Ecology, a CET centre for the landscape industry. Ms Benjamin Sharmi Santhana Mary, for example, was able to use her NITEC Certificate in Digital Animation to enrol in the Egg Story Digital Arts School. She recently graduated with a WSQ Diploma in Animation and has received many job offers. In another example, 41-year-old Ms Irene Lim was able to use her WSQ Diploma in Retail Management to successfully apply for the Bachelor in Marketing in SIM University (UniSIM) after failing to do so earlier when she had only 'O' level and partial 'A' level qualifications. Ms Lim has since graduated from UniSIM and is now working as a Manager in charge of product development and sales at Tensai Pte Ltd. We will build more linkages and pathways so that more people like Ms Sharmi and Ms Lim can benefit. A third thrust, moving forward, is to enhance the quality of our CET providers and trainers. Today, we have in place a quality assurance system for WSQ training providers. All training providers conducting WSQ courses must first be accredited by WDA to ensure that they meet the pre-requisite standards. We will progressively raise the required standards to ensure that the quality of our training providers meets the rising expectations of employers and workers.”
“Mr Low Thia Khiang has asked how we intend to raise the productivity of this group of workers. My Senior Parliamentary Secretary will elaborate on how we intend to help them. Let me just give an example. The landscape sector has many contract workers. Gardeners used to earn monthly salaries of around $850. Through the Job Re-creation Programme, these gardeners have now enlarged their job roles. Our CET system provides courses such as the WSQ Certificate in Landscape Operations and courses in niche areas such as chainsaw operations. As a result, landscape workers now earn higher gross monthly wages of between $1,000 and $1,300 and enjoy better working conditions. Landscape companies also benefit from lower worker turnover and higher productivity. Contract and casual workers can also benefit from the Workfare Training Scheme (WTS) that the Minister of Finance announced during the Budget Statement. I will elaborate on WTS later. Second, we will build more pathways and cross linkages between Pre-Employment Training (PET) and CET which Ms Sylvia Lim talked about. We will study other countries' models, which will involve European countries as well, such as Denmark and Finland. They have a very well-developed system and we can learn from them but we must bear in mind that they took decades to come to where they are today. We have started building such bridges by mutually recognising learning achievements from both systems. For example, ITE graduates from seven disciplines such as retail, food and beverage (F&B) and tourism, can seek credit exemption when pursuing a WSQ certification or upgrading to the WSQ Diploma level, and vice versa. This means that ITE graduates will have more choices in pursuing further education and training.”
“Three key principles will underpin our CET system – industry-driven, adult-centric and outcome-based. CET skills standards and courses will be developed with strong industry input through our Industry Skills and Training Councils. This way, we ensure that our CET system will equip workers with portable and relevant skills that are recognised and valued by their employers. Our programmes will be learner-centric, with courses that are short, modular and practice-oriented in order to cater to the learning patterns of adult workers. WDA set up the Institute for Adult Learning (IAL) in 2008 to carry out research and build knowledge in adult pedagogy. IAL will also train our adult trainers to raise their quality and professionalism. CET must also be driven by outcomes. It must make a positive impact on companies and workers. A recent survey by WDA showed that more than 60% of companies reported improvement in work productivity as a result of training. More than 90% of trainees applied the skills they had learnt with better work performance and 45% of trainees took on more or new job responsibilities after the training. Let me now turn to the key changes to our CET system. First, we want to maximise the skills and potential of every worker – men and women, young and old, rank-and-file and PMETs. We will therefore expand the scope of the CET system to serve a wider range of workers. PMETs now make up more than half of our resident workforce and their share will continue to grow as the quality of our workforce improves. We need to expand our CET system to cater to them. My Minister of State will elaborate on this later. The CET system will also need to cater for the 197,000 contract and casual workers in Singapore.”
“In recent years, we established a network of CET centres which go beyond offering WSQ courses to champion national skills standards, develop curriculum, engage the industry to understand their needs and provide career services to workers. We now have nearly 50 CET centres, up from just 19 in 2007. These include our polytechnics, Institute of Technical Education (ITE) and the private sector institutions. In 2009, three of our CET centres were awarded the status of National CET Institutes (NCIs) in recognition of the high quality of training they provide. NCIs are expected to lead the way in developing innovative methods of adult training, responding to skills gaps and providing a holistic solution to workforce development initiatives in their respective sectors. 5.30 pm On top of training providers, tripartite partners came together to set up the Employment and Employability Institute (e2i) to help job-seekers and workers assess their employability gaps and upgrade their skills. The entire CET system was put to a test during the economic downturn. In 2009, more than 200,000 workers were trained under the WSQ system, which is about the same number of workers trained over the previous five years combined. Mdm Halimah and Mr Zainudin Nordin have asked about our plans to further develop the CET system. The Government will invest $2.5 billion in CET over the next five years. We will reinforce the four key components of our CET system – skills standards, quality of training providers and trainers, career services and physical infrastructure. We will expand our programmes and reach out to help all workers, both rank-and-file and PMETs, to upgrade their capability and pioneer new approaches in CET, so as to create a highly skilled workforce.”
“The Civil Service has been recognising ES since 2007 and includes ES programmes as part of its core training framework. We will continue to build on this, just as how the education system was built up over several decades. Apart from WSQ programmes, the Government also supports CET courses that fill gaps in the CET landscape and are relevant to industry. These programmes may be conducted by our institutions of higher learning or other training institutions recognised by industry. For example, we fund Nanyang Polytechnic and Ngee Ann Polytechnic's CET diploma courses in nursing and allied health. The Centre for Urban Greenery and Ecology (CUGE) offers professional courses to train certified arborists and horticulturists for the landscape industry. In some instances, what started out as non-WSQ courses eventually became aligned to WSQ. Apart from training courses, we also introduced various programmes to address specific issues of structural unemployment and skills mismatch, which Mr Zainudin Nordin has raised. For example, we introduced the Place-and-Train programme to better match job seekers with employers, and the Professional Conversion Programme to help PMETs acquire new skills or to make a career switch into growth sectors. To support the various training programmes that we introduced, we have built up a comprehensive infrastructure for adult learning. Starting at the basic level, we have public and private service providers of non-WSQ courses that are funded by the Skills Development Fund. Next, we have about 450 approved training providers, including in-house training facilities, which provide WSQ courses to cater to industry needs.”
“Since the formation of the Workforce Development Agency (WDA) in 2003 and the launch of the CET Master plan in 2008, we have made significant progress in expanding the training programmes and infrastructure of the national CET system. We now have a national training framework – the Workforce Skills Qualification (WSQ) system – with different levels that cater to the different training needs of our adult workers. This starts with Employability Skills (ES) that equip workers with basic, portable skills like numeracy, literacy and communications. Workers without basic academic qualifications such as "O" levels can also be assessed for their workplace literacy and numeracy so that they can secure better jobs and pursue further upgrading. The next level is WSQ vocational skills which establish structured skills progression pathways in key growth industries. These are based on competencies that companies are looking for. For example, in retail, retail associates can enrol in the WSQ Certificate in Retail Operations to improve their sales and service skills, and take up WSQ Advanced Certificate in Retail Supervision when they move on to a supervisory position. They can further enrol in the WSQ Diploma in Retail Management to improve their managerial skills if they are promoted to retail or store manager. WSQ now covers 24 areas such as aerospace, wafer fabrication, security, digital animation, community and social services, and tourism. Mr Zainudin Nordin has asked about the level of recognition of ES and WSQ qualifications. Although WSQ was launched only in 2003, we have achieved some success. A 2009 WDA survey showed that more than one-third of surveyed companies were aware of either WSQ, ES or both.”
“There will be jobs available for both rank-and-file workers and PMETs in various sectors of the economy, such as financial services, retail and food and beverage (F&B), biomedical sciences, IT and security. However, we have to bear in mind that employment growth typically lags recovery. In Singapore, many employers have heeded our call to hold on to excess workers during the downturn. These are the workers that companies are likely to tap on before they start to recruit more workers. With better job prospects, the pool of job seekers may rise as more are encouraged to return to work, including those who have just completed their training. Nevertheless, barring new shocks to the economy, we can expect the labour market to remain stable for the rest of the year. As the recovery picks up momentum, employers should review whether measures taken during the downturn should be phased out, taking into account the business outlook. As our economy emerges from the recession, we need to review our economic strategy in response to fundamental changes in the global landscape. We need to make a strategic shift to achieve sustainable and inclusive economic growth through productivity improvement. Chairman of the National Productivity and Continuing Education Council, Deputy Prime Minister Teo Chee Hean, has outlined key initiatives that the Government will take to accelerate enterprise productivity and raise the capabilities of our entire workforce. Ms Sylvia Lim asked if the Council would include educational professionals. We are still finalising the composition, and the composition will ensure that we have broad representation. Continuing Education and Training (CET) is the key driver to up-skill the workforce.”
“I strongly encourage employers to continue tapping on SPUR and the various Government support to re-skill, up-skill or multi-skill their workers as part of their companies' long-term strategy. We have managed the downturn well and avoided massive job losses largely because of the collective efforts of the tripartite partners, as pointed out by Mdm Halimah. The close relationship among the Government, employers and unions enabled us to come together and act swiftly to help companies stay viable, cut costs and save jobs during this difficult period. This would not have been possible without the high level of trust, cooperation and shared purpose underpinning this strategic partnership. I agree with Mr Seng Han Tong that we should continue to strengthen this partnership, through formal platforms like the Singapore Tripartism Forum and informal trust-building at all levels – tripartite leaders and rank-and-file members. Indeed, we have come a long way in building strong tripartite cooperation. Mdm Halimah asked about Convention 144 and 122 of the ILO. We are reviewing them and will consider ratifications in due course after consulting with tripartite partners. But Mdm Halimah would be pleased to know that in the recent General Survey on Employment released by the ILO, Singapore was highlighted as a positive example of how tripartism played an important role in driving long-term initiatives and managing shorter-term priorities such as the economic downturn. Going into 2010, our economy is projected to grow by 4.5% to 6.5%. In tandem with the economic turnaround, hiring sentiments have also improved. We expect the number of jobs created this year to exceed that of last year.”
“The percentage of locals holding Professional, Managerial, Executive and Technician (PMET) jobs increased from 51% to 52% over the past year. (3) Wages have remained stable despite the economic downturn. The median monthly income among full-timers rose slightly by 0.5% from $2,590 in June 2008 to $2,600 in June 2009. While the overall employment rate of the resident population aged 25 to 64 declined from the peak of 77% in 2008 to 75.8% in 2009 due to the economic slowdown, I am encouraged that the employment rate of older residents remained at the record high of 57.2%. The better-than-expected performance of our labour market can be attributed to the coordinated efforts by our tripartite partners to save jobs, complemented by key initiatives such as the Jobs Credit scheme and Skills Programme for Upgrading and Resilience (SPUR). Since the inception of SPUR in November 2008, 204,000 workers have completed or are undergoing SPUR training at the moment. We also beefed up our career centres in response to the recession. The career centres at the Community Development Councils (CDCs) and National Trade Union Congress' (NTUC) Employment and Employability Institute (e2i) placed about 47,600 unemployed into jobs from December 2008 to January this year. Mr Heng Chee How has asked what will happen after SPUR ends in November 2010. My Ministry is reviewing this and will announce the details in due course. But I can assure the House that training will remain affordable. We will retain those programmes that are still relevant beyond the recession, such as programmes that address critical skills needs.”
“Madam, allow me to first give an overview of the state of the labour market. 2009 was a challenging year. It began with a sharp contraction in the global economy. Many countries suffered unprecedented job losses. The International Labour Organization (ILO) estimates that over 20 million jobs have been lost since the onset of the economic crisis. In Singapore, we were affected by the global downturn as well. Thirteen thousand eight hundred jobs were lost in the first two quarters of 2009 and unemployment rate reached 3.4% in September 2009, the highest in five years. Nevertheless, our labour market stayed resilient despite falling external demand and uncertainties in the economic outlook. During the 1997/1998 Asian financial crisis, we lost 42,100 jobs. During the 2001 economic downturn, we lost 79,500 jobs following the dot-com bust and September 11. In 2009 however, a total of 38,800 jobs were created for the whole year due to the recovery of the labour market in the second half, which had more than offset the job losses in the first half. For the first time, Singapore experienced employment growth amidst an economic recession. For the whole of 2009, there were 22,700 redundancies, significantly lower than previous peaks in 1998 and 2001. The overall unemployment rate eased to 2.1% in December last year, lower than that in many countries. In the US, eg, unemployment rate was 10% in December last year. In the EU, unemployment rate likewise rose to nearly 10% by the end of 2009. The job market for Singaporeans also remained resilient in 2009: (1) Local employment rose by 43,000 compared to a net loss of 4,200 in foreign employment. (2) The quality of jobs held by locals continued to improve.”
“Sir, let us stay focused and work together to find more ways to fill the jar further. 1.17 pm”
“Instead, it is part of the overall coordinated efforts by the Government to strive for productivity-driven growth. As Mr Heng Chee How has mentioned, companies will need to change their mindsets on the way they use their foreign workers and drive productivity improvements. Sir, let me end by sharing a short story. One day, a teacher went into a classroom with a big jar. First, he put some rocks into the jar and asked the students, "Is the jar full?" So, when the rocks were piled up, the students said, "Yes, it is full." The teacher then picked up a box of pebbles and put the pebbles into the jar, and asked the students, "Is the jar full?" The students said, "Well, I think it is now really full." But to the surprise of the students, the teacher now took up a box of sand and poured it all into the jar. Then, the teacher asked the students again, "So what do you say? Is the jar full?" The students now became very hesitant, but after a while, they conceded, "I think it is quite full." Now finally, the teacher took up a cup of tea and poured it into the jar. And now, when the teacher asked the students, "Is the jar really full?" There was dead silence. Sir, when I talk to companies on the need to moderate demand for foreign workers and raise productivity, some claim that it is not possible to improve their productivity any further. They say, "My jar is full." Those who always think the jar is full will not make efforts to fill it. But they are surprised every time when others manage to fill it up further. Sir, of course, productivity improvement is much more challenging than filling a jar. We should not underestimate the challenges of productivity improvement, but neither should we underestimate its potential.”
“This way, we allow market forces to operate so that we can efficiently allocate foreign manpower resources, give enterprises some flexibility while motivating them to improve productivity and minimise reliance on foreign workers. It is not a perfect system, but it is a practical system. Mr Michael Palmer has asked why we are increasing that S Pass levy by a higher amount than the Work Permit levy increases. Sir, since the introduction of the S Pass in 2004, the number of S Pass holders has grown more rapidly than any other work pass groups. Although S Pass holders are considered mid-skilled workers, they are still part of the foreign worker landscape. The S Pass levy has remained at $50 since 2004, and is currently significantly lower than the Work Permit levy. We will need to increase it to moderate demand. I should also point out that S Pass holders are expected to receive higher wages to qualify for S Pass. The new levy rate is still in relatively smaller proportion of the S Pass holders' wages compared to that of the Work Permit holders. Ms Irene Ng, Ms Audrey Wong and Dr Amy Khor have raised the concern that errant employers may exploit their foreign workers by passing the levy increases on to them. Sir, current Work Permit and S Pass conditions explicitly prohibit employers from recovering levies and other employment-related costs from their workers. The Ministry of Manpower will continue to monitor and take enforcement actions against employers who attempt to do so through salary deductions and kickbacks. Sir, let me reiterate that the levy changes should not be seen as a standalone measure to moderate the growth of foreign manpower, as Mr Inderjit Singh has pointed out.”
“Therefore as Mrs Josephine Teo has pointed out the Dependency Ratio system requires an accompanying pricing mechanism to allocate foreign workers. Mr Low has initially suggested adjusting the Dependency Ratio by industries to achieve this. The question is how can the Government be in a position to decide which industries are more deserving of foreign workers? For example, how do we determine whether the pharmaceutical industry requires more or fewer foreign workers than say, the food industry? Even within the same industry, food and beverage, for example – how do we decide whether a coffee shop requires more or fewer foreign workers than, say, a French restaurant? So instead of the Government making decisions on the number of foreign workers in each industry, each business and each company, we should leave it to market forces to do that through a pricing mechanism. In fact, Mr Low conceded as much when he subsequently suggested a "COE" system to allocate foreign workers, which, in fact, is another form of pricing mechanism. However a "COE" allocation system for foreign workers is fraught with many difficulties. For one, it creates uncertainty for employers, in terms of price and availability of foreign workers. The "COE" system would be no simpler than the levy system and could end up creating other problems. Sir, the foreign worker levy is a pricing mechanism that works in tandem with the Dependency Ratio. Together, the system gives flexibility to companies so that they can have access to foreign workers but they have to hire locals to meet the Dependency Ratio requirement. They have to pay higher levy rates if the ratio of foreign to local workers is high.”
“Companies should consider how they can streamline business processes, improve their products and services, explore new markets with higher value and upgrade the skills of their workforce. This way, they will see real productivity gains. Mr Low Thia Khiang has suggested that we remove the foreign worker levy completely and use Dependency Ratios instead as the sole lever to control the foreign worker numbers. Let me explain why we need the two levers – Dependency Ratios and foreign worker levy – to work in tandem to moderate demand for foreign workers and allocate them efficiently. If we use Dependency Ratio alone to regulate demand for foreign workers, we will need to reduce it significantly. I have earlier explained why this could impact high value growth companies and new investments that may require foreign workers. The challenge is how we can support these high growth companies and new investments without increasing the total number of foreign workers here. The issue is therefore one of allocation. We want to encourage companies which can operate with fewer foreign workers to reduce their dependence, while those who need more will have to pay a higher levy rate but still keeping within the overall Dependency Ratio requirement. I have illustrated earlier how the levy works to achieve this. If we only have Dependency Ratio system with no levy, it would not make much of a difference to a company, like the example I gave just now, whether it hires one foreign worker or 10 foreign workers. In the end, most companies may well decide to hire as many foreign workers as they can, right up to the limit of their Dependency Ratios. This will be contrary to our objective to moderate demand and facilitate efficient allocation of foreign manpower resources.”
“Ms Jessica Tan and Dr Ahmad Magad have also cautioned that some companies may not be able to implement productivity improvements immediately. Mr Michael Palmer has also asked if we could align the pace of the levy changes to the 10-year productivity target. We understand that companies will need time to adjust. This is why the levy changes will be implemented in steps over three years. The first increase in levy rates on 1st July 2010 will be a modest one, ranging between $10 and $30 for most Work Permit holders. This represents an average of less than half a percent of the overall wage bill. But we need to get companies to start thinking about improving the productivity and take steps to reduce their dependency on foreign manpower now, so that they have enough time to realise productivity gains. The longer we delay, the more painful the adjustment will be later. Several Members, such as Mr Teo Siong Seng, Ms Irene Ng, Dr Ahmad Magad, Mr Ong Ah Heng, Mr Sin Boon Ann, Mdm Ho Geok Choo, Dr Amy Khor and Mr Zainul Abidin Rasheed are also concerned that some jobs may be shunned by locals and companies may have difficulties in recruiting enough locals to replace the foreign workers. Let me clarify of the aim of the levy changes is to motivate companies to increase their productivity and deliver higher value-added products and services with fewer foreign workers. The increase in levies alone will not necessarily lead to productivity improvements if companies merely replace foreign workers with locals and employ the same number of workers. Let me borrow a phrase from a colleague, Mr Lim Swee Say, "with same-same input and same-same output, productivity will remain same-same, with no real improvements".”
“Let me explain how this works. The levy tiers are structured such that the higher a company's dependency on foreign workers, the higher the levy rate and the bigger the levy bill it will have to bear. For example, a services company with 10 local workers may employ up to 10 Work Permit holders because the Dependency Ratio is 50% – 10 locals for 10 foreign workers. Let us assume that the foreign workers are all skilled workers to simplify the example. The first Work Permit holder it employs will be subject to a levy of $160 from 1st July 2010. It will pay $160 levy for each of the Work Permit holder it employs up to a total of five. That is the first tier. However, the sixth Work Permit holder it employs will be subject to a levy of $300, and the ninth Work Permit holder will be subject to a levy of $450. That is the second tier and the third tier. We will further tighten the levy tiers over the next three years. This way, companies will have a strong incentive to reduce their dependence on foreign workers. A number of Members, including Mr Liang Eng Hwa, Mr Teo Siong Seng, Mr Sin Boon Ann, Mdm Ho Geok Choo, Dr Amy Khor and Mr Michael Palmer, have expressed concern about the impact of foreign levy changes on businesses, especially the SMEs. Let me stress that the levy changes should not be viewed in isolation. They should be seen in the light of the various initiatives and measures announced by Finance Minister Tharman to help companies, especially SMEs, to improve productivity. As Deputy Prime Minister Teo mentioned yesterday, productivity is not just about cost reduction and efficiency, it is also about how businesses can create value. I will not elaborate further as the Ministry of Trade and Industry will address how it intends to assist SMEs at a later stage.”
“Yesterday, Deputy Prime Minister Teo talked about the National Productivity and Continuity Education Council and our strategy on raising productivity to achieve sustainable and inclusive economic growth. I will talk more about Ministry of Manpower's strategy during the COS. But let me just focus on one particular area this afternoon. To make the strategic shift, we are making adjustments to the foreign worker levy to encourage employers to use their foreign workers more efficiently and to motivate them to invest in productivity improvements. I think it is useful to share with Members the thinking behind the levy changes and respond to some Members' concerns about these changes. First, let me thank Members for their comments and support of the changes. We have taken a calibrated approach in adjusting the levy, so as to maintain a balance between supporting economic growth and ensuring that we do not become over-reliant on foreign manpower. As Ms Jessica Tan has pointed out, we must ensure that Singapore remains as an attractive place for businesses so that we can continue to create jobs for our workers. That is why we have not reduced the top line Dependency Ratio so that growth companies can have access to foreign workers they critically need to support their operation and expansion. This will also allow us to attract high value new investments that will raise our productivity, spur our growth and create good jobs for Singaporeans. However, we cannot continue to grow our foreign workforce at the same pace we did in recent years. We need to moderate the overall inflow of foreign workers and motivate companies to invest in productivity improvements. To achieve this, starting from 1st July 2010, we will increase levies across the board and adjust the levy tiers.”
“As some cases of medical bills have far exceeded the minimum coverage of $5,000 set initially, MOM announced in September 2009 that the Government will increase the minimum insurance coverage to $15,000 a year with effect from 1st January 2010. However, employers may choose to obtain higher coverage on their own accord if they wish to have greater protection. CHILD FOSTERING SCHEMES (Current capacity) 17. Ms Sylvia Lim asked the Minister for Community Development, Youth and Sports (a) what is the current capacity of the child fostering schemes administered by the Ministry, in terms of the numbers of children fostered per year and the numbers awaiting fostering, and the pool of foster parents known to the Ministry; and (b) whether the current steps taken to select foster parents and to monitor the progress of existing fostering arrangements are adequate to safeguard the welfare of the children.”