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.”
The complete record
Every one of 3,841 lines we hold for Gan Kim Yong, in date order, each linked to its source. Free to read, in full, without an account. Page 65 of 77.
“Sir, Mdm Ho is correct that there are about 27,000 or 28,000 jobseekers in our databank. But, today, we have 25,000 jobs available for them. The issue is how we can match them better. Over the last few months, the CDCs and the Career Centres that we have set up have enhanced the job-matching capability by providing job counselling, training and upgrading. It is important for us to remind our jobseekers and employers that they must have realistic expectations. Some of the jobseekers are not job ready. And when they are not job ready, our career counsellors will profile them, identify their needs, and some of them will need to go through some basic employability training to acquire the basic skills in employment, such as how to attend interviews, how to prepare their CVs, how to present themselves, and how to be more self-confident. Through some of these programmes, we are gradually helping these workers find jobs. I mentioned earlier that we have placed close to 20,000 jobseekers over the last six to seven months. I think we are making progress, but there is still a lot of work to be done and we will continue to press on with our efforts to reach out to these unemployed and help them adapt to the working environment and match them to jobs. The second question refers to PMETs who have established new businesses. When we look at unemployment data, we are basically asking the surveyed candidates whether they are looking for a job and whether they already have a job. If a PMET has started a new business, he will be concentrating on his business and will not be looking for a job. Therefore, when we do the survey, he is unlikely to reply that he is looking for a job. In that case, he will not be in the unemployed data when we do our survey. That is how the survey is done.”
“Sir, in fact, we have a community programme together with the self-help groups. In particular, the Chinese Development Assistance Council (CDAC) in conjunction with Holland-Bukit Panjang has set up employment services on the ground with the Community Development Council's (CDC) support. This will help to reach out, at the local level, to workers. But we need to be very careful because it is important for us to ensure that the job matching services that we offer are relevant and effective. That is why I went to great lengths to explain just now how we do job-matching. It is not effective to simply match CVs with jobs I think it is important for us to make sure that we profile the workers and understand their needs. This is professional work. The Workforce Development Agency (WDA) works very closely with CDCs at the local level in conjunction with the self-help groups. We do recognise that there may be a need to reach out more effectively at the local level and in specific areas, we will be happy to work with grassroots leaders, for example, in organising local job fairs, and so on. We will also be working with community organisations like the CDCs to be more effective in reaching out on the ground. So if a Member has any specific needs, I would suggest that they can, perhaps, approach the CDC and discuss with them what would be the best way to reach out to the jobseekers at the ground level and at the community level.”
“Sometimes, the training may not be specific technical skills, but basic employability skills like how to attend an interview, how to groom yourself to look more confident, to be able to write the CV effectively, and so on. So through these many programmes, we help to enhance employability of the workers and, by doing so, we will be able to improve the success rate of our job placement. By and large, the job consultants in our CDCs are better trained, more targeted and focused. Even in our various job fairs, for example, we are focusing more on specifically targeted job fairs, rather than general job fairs where you have large volumes of people going through but may not be very effective. We go for specific job fairs with very targeted jobs and we bring in selected jobseekers, so that there is a higher chance of matching. These are the many measures that we put in place to enhance the success rate of our job placement efforts.”
“First question about the 45,000 jobs. Many of the jobs in fact are created by the Government institutions. Out of these 45,000, at least 18,000 will be from the Government and part of these 18,000, a majority of them are PMET jobs, good paying jobs, requiring degrees and diplomas. Among the rest of the 45,000, they will continue to be regulated by our foreign worker quota system. So most of these jobs will go to Singaporeans. With regard to your second question on the success rate of the training programme, out of the 94,000 people who have committed to SPUR, 50,000 of them are now undergoing training. Some of them have completed training. Among these 50,000, about three quarters of them are sponsored by companies, so they are still employed. About 12,000 to 13,000 of these 50,000 are self-initiated trainees. Some of them may still be working. Among the CDCs, as I remember, we have placed about 10,000 or so workers over the last three to four months. Those are the rough numbers that will give you a sense of the placement rate, I do not have the exact numbers with me. Of course, some of the 10,000 that we placed out may not all be from the SPUR programme. Some are still working; some are straight placements and job matching. What is more important I think is to explain that in our placement efforts now, compared to previously, we do it slightly differently. Rather than simply matching the jobs and sending the CVs to employers. We do a lot more by profiling the workers, understanding their strengths and their weaknesses, understanding their interests and also try to match the skill sets that employers need. If there are skill gaps, we will send them for training.”
“This way, the journey through the recession can be a positive and constructive one, and we will emerge stronger and more united.”
“We must create good, high-value jobs for Singaporeans, improve their skills and raise their productivity. To do that, we must continue to invest in education to help each of them realise their potential. We must also promote lifelong learning through our CET system, so that they can constantly upgrade themselves, as Miss Penny Low pointed out. This desire to acquire new skills and knowledge must continue beyond the recession. There is a Chinese saying, 学无止境 (xue wu zhi jing). This way, we can building a learning workforce and ensure that the quality of the local workforce will continue to improve over the long term. As we upgrade the quality of our local workforce through our CET framework and SPUR, we are also fine-tuning our foreign manpower regulatory framework to encourage our employers to bring in better quality and better skilled workers. We have announced some changes in this regard during the COS this year. We will continue to monitor the situation closely and make further adjustments, if necessary. Mr Speaker, Sir, even as we manage the recession in the short term, we must not lose sight of our long-term vision of building a globally competitive workforce, enhancing income security and lifelong employability, and building globally leading workplaces. Tripartism plays an important role in addressing short-term challenges of the downturn as well as in realising this long-term vision. The strong partnership among unions, employers and the Government gives Singapore a unique advantage. We must continue to make conscious efforts to cultivate and strengthen this partnership. By working together as a team, we can leverage on our strengths to position our economy and workforce for the upturn.”
“Mr Speaker, several Members – Mr Ang Mong Seng, Mr Yeo Guat Kwang, Er Lee Bee Wah, Dr Muhammad Faisal, Ms Eunice Olsen and Mdm Halimah Yacob – spoke on the need to strike the right balance in our foreign worker policies. The Prime Minister has explained that foreign talents and workers have helped us grow our economy, by building our infrastructure, bolstering our workforce and filling critical gaps. They form an integral part of our labour market and provide us with an important competitive advantage. The key is balance. This requires careful calibration of our foreign worker policies such that Singaporeans have jobs and our companies continue to have regulated access to foreign workers to remain competitive. Mr Low Thia Khiang asked if we are putting Singaporean's interests first. Indeed, we have always been by adopting a win-win strategy. We have tilted the balance in favour of local workers during this downturn, by improving their employability through SPUR, and enhancing their cost competitiveness through Jobs Credit and WIS. In this downturn, we expect the number of foreign workers to fall but demand for these workers will grow again when the economy recovers. However, the overall size of our workforce cannot grow indefinitely. There is a natural limit to the size of the local workforce. There are also limits to the size of foreign workforce given the constraints on our infrastructure and critical resources such as land. We should not become overly dependent on foreign workers. My Ministry will support the new Economic Strategies Committee in looking at how we can strike a balance and maximise the contributions from our workforce, both local and foreign.”
“Mdm Koo started work as a Healthcare Assistant in early May 2009 and is adjusting well to her new job. I urge job seekers to follow the example of Mdm Koo and be prepared to switch to other new careers. Mdm Halimah, Ms Cham Hui Fong, Dr Lim Wee Kiak, Ms Eunice Olsen and Mr Heng Chee How brought up the challenges faced by older workers in this downturn. Some of them have lost their jobs and are indeed finding it more difficult to get a new job. I agree with Mr Heng, Ms Olsen and Ms Cham that we need to press on in our efforts to encourage employers to recruit and retain older workers even though it is more challenging in a recession. However, the labour market will tighten again once the economy recovers and it is important for employers and companies to realise this and maximise their ability to tap on the contributions of older workers. We must also help older workers up-skill and re-skill in order to seize the job opportunities that are still available even during this downturn. Mdm Winnie Tong, who is 52 years old, is a good example. She worked as a clerk-cum-typist for seven years until November last year when her company closed down. She signed up for a WSQ Higher Certificate in Healthcare Support to be trained as a Clinical Administrative Assistant. Mdm Tong secured a job at Raffles Hospital while undergoing training and has now started work upon completion of her training. The Tripartite Partners have been working together to help employers prepare for the introduction of the re-employment legislation in 2012. The Tripartite Advisory on Re-employment of Older Workers will be updated later this year.”
“As Mr Zainul Abidin Rasheed has mentioned, our career centres at the Community Development Councils (CDCs) and NTUC's e2i play a critical role in helping people overcome their employment barriers and acquire skills in demand. Career consultants do more than just job matching. They work with job seekers to provide them with labour market information, prepare them for interviews, enhance their job search skills and also refer them to the relevant skills upgrading programmes. Mr Zainudin Nordin commented that workers and job seekers must adopt the right mindset. I am encouraged to see that job seekers are increasingly flexible and adaptable. Many of them are also taking advantage of the wide range of training available to acquire new skills that will help them to be productive and stay employable, or take on new jobs so that they can continue to work. In the first four months of this year, the career centres at the CDCs and NTUC's e2i have collectively placed about 10,500 job seekers into jobs. Another 500 PMETs have also undergone career and employability workshops organised by the CDCs. Let me give Members an example. Mdm Koo Hua Yong was retrenched from her job as a production worker. When Mdm Koo first approached the North East CDC for assistance, she was rather apprehensive about making a transition into a different sector as she had been working in the manufacturing sector for the past 20 years. After being counselled by the career consultant, she was more confident and willing to switch to a job in another sector. She went for training at the Health Management International (HMI) where she received a WSQ Higher Certificate in Community and Social Services in April 2009.”
“For those who lose their jobs, the unemployment rate is 100%. We are not out of the woods yet. We will continue to help those who need help and we will also closely monitor the effectiveness of our various programmes and make refinements where necessary. We have already introduced several enhancements to SPUR. Mdm Ho Geok Choo will be glad to know that, recently, we increased the Absentee Payroll capped under SPUR to better support training for Professionals, Managers, Executives and Technicians (PMETs), a group that several Members have expressed their concerns about. We also introduced the Professional Skills Training Programme under traineeship scheme for companies to build new capabilities in growth sectors as well as SPUR-JOBS, a scheme to encourage recruitment and retention of local workers. Even in this downturn, there are still new jobs being created. We can expect at least 45,000 jobs to be created during these two years, including many for PMETs. Many sectors are still enjoying good employment growth. The creative industries sector, for example, is a bright spot in the PMET job market. Companies, such as Koei, plan to double the size of their operations and add 60 new staff over the next two years. Ubisoft, is looking to expand its headcount from 70 to 300. Other sectors that are hiring include social services and childcare which will have some 1,000 new jobs over the next few years. Positions such as social work and teaching professionals are in demand in this industry. There are presently more than 21,000 job postings immediately available in NTUC's and WDA's job databases. Both Mr Ang Mong Seng and Mr Christopher de Souza highlighted the need for effective job matching. I agree.”
“I agree with Mdm Halimah Yacob that it is important to have a comprehensive training blueprint for our workers and that is why we have launched the CET masterplan last year. Under this plan, we will invest significant resources to build up a CET system that will help employers enhance the quality and productivity of their workers. Help workers acquire industry relevance skills and seize opportunities in new growth areas. This has also allowed us to quickly roll out numerous programmes such as SPUR and the Professional Skills Programme (PSP). Together with our tripartite partners, we have revised the guidelines to help employers and workers on managing excess manpower during this downturn. I thank Mdm Halimah, Mdm Ho Geok Choo, Ms Cham Hui Fong and Mr Christopher de Souza for their support for SPUR programme and the various measures we have put in place. Indeed, the response to SPUR has been very encouraging. As at end of April 2009, that is, within five months of launching SPUR, about 94,000 workers have been committed to training under SPUR. SPUR and the Resilience Package have had a positive impact in helping companies reduce retrenchments, keeping our unemployment rate low. Despite our GDP declining by 10.1% (year-on-year) in the first quarter of 2009, our seasonally adjusted unemployment rate of 3.2% remains lower than in many other countries, including the US, Germany, Australia and Hong Kong, which are facing higher unemployment rates of between 5.2% and 8.5%. The chart on the screen will show Members a comparison of the various countries. Our strategies are sound and our tripartite efforts have been effective in saving jobs. Nevertheless, we must not be complacent. There are still 3.2% of workers unemployed.”
“Mr Speaker, Sir, I would like to thank MPs who have spoken on manpower issues during this debate. Over the next few years, MOM will focus on three key priority areas. Firstly, we aim to develop a globally competitive workforce. In this downtown, we will help companies cut costs to save jobs, train workers to retain their jobs or move into new jobs, create employment opportunities and help the unemployed find jobs. We will also leverage on the Skills Programme for Upgrading and Resilience (SPUR) to build up the capabilities of our workforce. We will focus on raising productivity and encouraging our enterprises to innovate as highlighted by Mr Cedric Foo. We will promote progressive HR practices to develop local talent and attract foreign talent. Secondly, we will enhance the income security and life-long employability of Singaporeans. We will implement CPF LIFE from September 2009 and enact re-employment legislation by 2012. We will review the Workfare Income Supplement Scheme in 2010, taking into consideration the suggestions raised by Members of this House and other feedback. Thirdly, we will develop globally leading workplaces through improving safety and health, building progressive workplaces and promoting good employment practices. Mr Speaker, during the debate, many Members have spoken on the more immediate concerns on the current economic downtown as well as on the longer term challenges and strategies in developing our workforce. Let me touch on these two issues in greater detail. Sir, this is the most challenging economic downturn we have encountered but we are facing this recession from a position of strength. We have been building up our continuing education and training (CET) infrastructure over the last few years.”
“Er Edwin Khew Teck Fook asked the Minister for National Development what plans his Ministry has (a) to preserve and restore the edges around the seven fragmented patches in our nature reserves; and (b) to conserve the remaining unmodified 10% of our coastline to protect our reefs and their rich biodiversity.”
“An employer is required under the Work Permit conditions to provide safe working conditions for his foreign domestic worker (FDW) and ensure that she performs her duties in a manner which does not endanger her life or personal safety. The employer will still be held liable even if he has left the direct supervision of the FDW to other family members. A breach of Work Permit conditions constitutes an offence under Section 22(1)(a) of the Employment of Foreign Manpower Act (EFMA). If convicted, the employer could be fined up to $5,000 or imprisoned up to six months or both. MOM will also debar convicted employers and their spouses from employing FDWs. In addition, prosecution action may also be taken against the employer’s household members if they were responsible for creating the unsafe work environment or had instructed the FDW to perform work in an unsafe manner. They may be charged with abetment of the breach of Work Permit conditions under the EFMA. They may also be prosecuted for endangering safety through a rash or negligent act which is an offence under section 336 of the Penal Code, which carries a fine of $2,500 or imprisonment of six months or both. Whether a prosecution for abetment of Work Permit Conditions or under section 336 of the Penal Code is mounted will depend on the facts of the case. My Ministry will not hesitate to prosecute employers and their household members who endanger the safety of FDWs. PRESERVATION OF NATURE RESERVES AND COASTLINE 34.”
“The foreign domestic worker levy concession was first introduced in August 2004 as part of the marriage and parenthood package. The objective then was to help families with elderly members or young children hire foreign domestic workers. This concession was later extended in 2007 to households with disabled persons. Since its inception in September 2007 until December 2008, 1,365 employers have applied for the levy concession on the grounds that there is a disabled person in the household. Including families with young children or elderly members, the total number of employers granted the FDW levy concession rose from 113,700 in 2007 to 119,500 in 2008. This is close to two-thirds of the total number of FDWs here. The coverage is already quite extensive, and there is no compelling reason to further expand the scope of this concession. WORKPLACE SAFETY OF DOMESTIC HELPERS 33. Mr Hri Kumar Nair asked the Acting Minister for Manpower what his Ministry's position is with respect to the prosecution of family members and others who are authorised by the employer to give instructions to domestic helpers and who fail to ensure that the helpers perform their work in a safe manner.”
“These numbers are only estimates, as LIFE payouts are dependent on actual CPF balances, interest rates and mortality experience. Members who would like to find out more can contact the CPF Board. They may also use the CPF LIFE Payout Estimator on CPF Board’s website. UNDERGRADUATES ON SCHOLARSHIP 23. Dr Ong Seh Hong asked the Minister for Education (a) whether the Ministry tracks the educational performance and psychological well-being of undergraduates on scholarship; (b) what are the numbers of undergraduates who have lost their scholarships over the last 10 years; and (c) whether counselling was provided to these undergraduates who had lost their scholarships, to help them cope financially and psychologically.”
“On top of this, he receives $1,200 in V-Bonus for purchasing an annuity, in this case, a CPF LIFE plan. Without the 1% extra interest and the bonuses, his CPF LIFE monthly income would be $360-$390. With the 1% extra interest and the various bonuses, his monthly income could be up to $450-$480. This is about 25% more. We have also made it easier and more attractive for family members to top up their Retirement Accounts through the Minimum Sum Topping-Up Scheme. Givers will be eligible for tax relief for top-ups in cash. Top-ups, whether in cash or in CPF, will help the recipients participate in CPF LIFE, enjoy the 1% extra interest, the L-Bonus, and possibly higher D- and V-Bonuses. In addition, older low wage workers will receive additional CPF contributions from Workfare. Lastly, Mr Siew asked about the bequest amounts at different ages, under the various CPF LIFE plans. The bequest amount is the sum of the member’s remaining CPF savings and the CPF LIFE premium less the monthly income received. It will therefore decrease as payouts are made. Let me illustrate with the example of a 55-year-old male member who joins CPF LIFE in 2013 with $67,000 cash in his Retirement Account. Under the LIFE Balanced Plan, if he passes away at the age of 75, his beneficiaries will receive a bequest amount of between $51,000 and $52,000. However, if he passes away at the age of 80, the bequest amount reduces to between $21,000 and $23,000, as he has received five additional years of LIFE income. For the LIFE Plus Plan, the bequest amount will be between $1,000 and $8,000 at age 75, and reduces to $0 by age 80. For the LIFE Basic Plan, the bequest amount will be $72,000 to $77,000 at age 75, and $54,000 to $58,000 at age 80.”
“As recommended by the National Longevity Insurance Committee (NLIC), CPF LIFE will be administered by the CPF Board. Mr Siew asked about the adequacy of the CPF LIFE monthly payouts. CPF LIFE is intended to provide members with a monthly income from age 65, for as long as they live. The level of monthly income will depend on the amount of savings members have in their CPF Retirement Account, as well as interest rates. The more savings the member has and the higher the interest rates, the higher the payout will be. This is fair to members, and will also ensure that CPF LIFE remains self-funded and sustainable. Although actual interest rates for the Retirement Account and CPF LIFE will move with the market, members should be assured that these will not fall below the guaranteed floor of 3.5% on the first $60,000 of CPF balances and 2.5% for amounts above that. We have introduced several measures to help members accumulate more CPF savings. First, we have given an extra 1% interest on the first $60,000 of members’ CPF balances since January 2008. Next, we have introduced various bonuses, namely, the D-, V- and L-Bonuses. To recap, the D-Bonus is given to members whose Minimum Sum Draw-Down Age has been deferred beyond age 62. The V-Bonus is given to members who voluntarily defer their Draw-Down Age or purchase annuities. The L-Bonus is given to eligible members who participate in CPF LIFE. Let me illustrate the impact of these measures using an example. Mr Lim is 59 years old this year and opts in to the LIFE Balanced Plan with $67,000 cash in his Retirement Account. Let us also assume he qualifies for the maximum L-Bonus of $4,000 and also receives the D-Bonus of $1,500.”
“Sir, I think some of the growth came from sectors where there is still growth. In fact, there are also opportunities for Singaporeans in these sectors. So, I think it is important for us to focus on how to help Singaporeans capture these opportunities. Through SPUR we will be able to equip our Singaporeans with the necessary skills and it is also important for us to ensure that while we continue to be flexible in our labour market, the quality of our workforce will continue to be upgraded. We have introduced SPUR to help local workers to upgrade and we want to tighten the criteria for the foreign workers so that the foreign workers' quality will also be upgraded in line with the overall quality. To answer her question, there is still growth in the S Pass overall numbers but I think going forward, with the economy continuing to slow down, we expect the numbers to come down as well.”
“Sir, I think from the Ministry's point of view, we have to be careful in micro-managing our overall manpower policy. It is important for us to look at the manpower policy with an overview so that the various quotas are imposed on various sectors. If we start to micro-manage each different business, each different service, each different industry or company, I think we will run into many difficulties and problems, and there will also be a lot of abuse and leakages in between the different businesses because companies are not well defined. So, I think it is important for us to maintain overall sectorial control in the regulation of foreign manpower quota system. At the same time, we also have to step up enforcement efforts which the Ministry is doing to ensure compliance to our regulatory system and to make sure that our overall framework of foreign manpower management will not be undermined by unscrupulous employers. Sir, I think that is an important element of our enforcement.”
“If they are no longer able to support the foreign workers because they have lost their contracts or the contracts have been terminated, I think these employers will then have to repatriate these workers after settling all the salary issues and employment issues. So going forward, we will continue to see volatility in the labour market, some sectors will be doing better than the others and we will monitor the situation carefully and, if necessary, we will come out with additional measures to help Singaporean workers.”
“Mr Speaker, Sir, in response to the question, the overall number of foreign workers including work permit holders will be released on a quarterly basis. The number will be available sometime in April for the first quarter. With regard to the number of foreign workers here who have no jobs, I think I have answered that parliamentary question (PQ) sometime ago. The number of foreign workers that have employment disputes in Singapore remain very small compared to the overall size of the foreign worker population in Singapore. It constitutes about 0.4% – I am recalling from memory – 0.4% of total foreign worker population in Singapore. Therefore, the conclusion is that overall, the vast majority of foreign workers who are working in Singapore are productively engaged. They do have work and they are paid according to their contracts with their employers. There is a small number of workers who have employment disputes – the Ministry will do what we can to help them resolve their disputes. We do expect that this number to grow over time given the economic slowdown, just like Singaporean workers who may face retrenchment problems and we have just answered the earlier question on the foreign workers who may have to be released or made redundant. So, increasingly we do see an increasing number of foreign workers who may not have jobs going forward. Some of the contracts may have been terminated or may have been delayed, or some of the new contracts, new projects may not have commenced. So, I think we have to expect that to happen. What is important for us is to ensure that the workers who encountered such problems should approach the Ministry and we will help them wherever we can. The employers should continue to act responsibly.”
“This not only will help us in the short term during the recession, it will also build resilience and capability for the economy in the long term within our local workforce. So, that has been the approach that we are looking at. With regard to the specific question on S Pass numbers, I think the growth in S Pass numbers is slowing down in line with the economy. As I mentioned in my reply, if the economy continues to slow down, the overall number of foreign workers will come down.”
“Sir, let me thank the Member for the questions. The proportion of foreign workers versus local workers being retrenched or being made redundant depends to a very large extent on the sectors that are affected, as Members have pointed out. In particular where services and banking sectors are concerned, I think by and large they are manned by local workers and therefore whenever these sectors are affected, we tend to see local workers being affected. In the manufacturing sector, for example, we see a mix of local and foreign workers. We also have to take into consideration that for some of these foreign workers, their contracts were not renewed. Redundancy only takes into account contracts that are terminated prematurely. So we have to take all these factors into account. I would advise Members to take these numbers with a pinch of salt, and try to understand the factors that are affecting retrenchment process rather than looking at the numbers coldly. Secondly, with regard to the question on foreign worker quota, as I mentioned in my reply, it is important for us to ensure our economy remains robust, vibrant and flexible so that we will continue to attract new investments. It is important for us not to send the wrong signal to the investors,otherwise it will affect our long-term cost competitiveness and attractiveness for foreign investments. I would rather look at how we can help Singaporeans become more competitive rather than to stop the foreigners from coming. We have two choices. I think the approach to help Singaporeans is more effective. We have done so through Jobs Credit, we have done so through the SPUR programme and by helping Singaporeans become more attractive, more employable, this will enhance their employment opportunities.”
“It will also build new capabilities in our economy to prepare for the recovery. Sir, in summary, even as we address the short-term challenges of the downturn, we should not undermine our competitive advantage of a flexible labour market. Singapore has to remain an attractive place for businesses in order to retain those which are here and to continue to attract new investments and bring in more and better jobs for Singaporeans.”
“Sir, with the recession and falling demand for workers, the number of foreign workers will naturally go down. Foreigners' share of redundancies in 2008 was roughly in line with the proportion of foreigners in our workforce. The impact of foreign workers is likely to be felt more in sectors like manufacturing than in other sectors like construction which still has several projects on hand. As I mentioned in Parliament during the Committee of Supply (COS) debate, MOM will fine-tune our regulatory framework to improve the skills and quality of our foreign workforce. I mentioned that we will raise the criteria for S Pass to improve the quality of S Pass workers coming here. We have also reviewed the qualifying criteria for skilled work permit holders to ensure that only better skilled and better qualified workers will benefit from the lower tier of levy for skilled workers. We will brief the various industries on these changes. Sir, faced with the downturn, some may think that by sending one foreign worker home, one more job will be created for Singaporean workers. This is not necessarily the case. Sending foreign workers home may mean losing the business altogether and all the Singaporean jobs along with it. Instead, it is far better to help Singaporean workers become more cost competitive and resilient so that they are more attractive to the employers and they can take advantage of the opportunities still available. The Government's assistance has been significant. The Resilience Package, which includes SPUR, Jobs Credit and WIS Special Payment, will help companies cut costs, remain viable and save jobs. It will help Singaporean workers to re-skill and up-skill so that they are better able to retain their jobs and to find new jobs.”
“Whenever there are job losses, we find different ways to help those that are affected so that they can find jobs faster, and we also work together to give them training and upgrade so as to enhance their employability. I think this is the focus of the Ministry. ECONOMIC DOWNTURN AND FOREIGN MANPOWER 7. Mrs Josephine Teo asked the Acting Minister for Manpower (a) how has the economic downturn impacted the number of foreigners in the workforce; and (b) whether the Ministry will review the need to fine-tune our policies on foreign manpower in light of the downturn.”
“Sir, let me first answer the first question on obstacles to employment. As I mentioned earlier, I think the challenges faced by PMETs and the rank and file are quite different and we need to address them differently. From our experience, we find that some of the jobseekers really do not possess basic employability skills and we need to train them, and to help them acquire these skills. Some of the jobseekers may need to be prepared to switch industry because the industry they were in was no longer growing so they have to look for opportunities in other industries. This conversion process will also take sometime and we will continue to help them to do so. There are also jobseekers who are less flexible and we need to help them and encourage them to be more flexible. I will just give Members an example. I think we read in the newspapers over the weekend that the bus companies are looking for bus captains and bus leaders. They have, I think, 280 vacancies, 220 applied and only 77 turned up for interview. I think jobs are still available at different levels and different categories of jobs. If we are more flexible, we will encourage our jobseekers to be more flexible and we will be able to help them find jobs faster. With regard to the second question on unemployment rate, I have mentioned repeatedly that rather than focusing on projection and estimate, it is more important for MOM, our various agencies and tripartite partners to focus on the ground on helping individual jobseekers find jobs. So we have been working together through Jobs Credit as well as through the SPUR programme to minimise job losses.”
“Sir, indeed, I think the challenges faced by PMETs are quite different from the rank and file. We recognise that and, in fact, over the last few months we have been beefing up our CDC Career Centres, as well as our various Continuing Education and Training centres, so that we will be able to provide career counselling and support for the PMETs. I think many of these PMETs will also need to be flexible and they will have to consult our career consultants so that we can help them profile their needs, expertise and capabilities. I think by doing so, we will be able to enhance the matching process between the jobseekers and the jobs.”
“Sir, I think a number of schemes have been announced recently. EDB, for example, has a number of schemes, including PREP-UP which is targeted at the Science and Technology graduates to retain their expertise within the industry and to capture the necessary manpower for our economy to continue to grow. MOM, together with the various agencies, will continue to explore ways to help graduates to secure employment and to find opportunities for them to continue to develop themselves, including further studies and further education.”
“Sir, with the economic slowdown, I think it will take longer for many of the jobseekers to find new jobs and new opportunities. But it is also important for us to re-emphasise the need for them to go through training. As many of these workers have been in the same employment for many years, now that they have to switch jobs and look for new jobs, it is important to make sure we find ways to enhance their employability. There are many basic employment skills which some of the jobseekers do not possess. So I will encourage these jobseekers to approach our CDC Career Centres or they can approach e2i under NTUC. The career counsellors there will then be able to help these jobseekers more specifically – to identify their needs for training and opportunities in the various sectors. I think by doing so, we will then be able to enhance their employability and help them find jobs faster.”
“I will need to explain that if this is a commercial arrangement, then it is up to the customer to negotiate with the contract supplier, ie, the agencies, for a lower fee because the benefit has gone to the agencies. Eventually, if the agencies are not going to lower their fees, it is up to the customer to look for other agencies that are willing to lower their fees. Overall, the Jobs Credit will make Singaporean workers cheaper and this benefit will flow through to the employer of these workers. And whether these employers eventually pass it on to the customer, whether the customer is another company's engaged service, or whether the customer is a buyer of this product, is eventually a business transaction between the customer and the supplier.”
“So long as they are employed by someone, ie, there is an employer who pays the CPF, the employer will receive the Jobs Credit and, therefore, the employer will benefit from the Jobs Credit Scheme that is given to the contract worker.”
“For contract workers, so long as they are on CPF, they would benefit from Jobs Credit Scheme and, therefore, it is important for us to continue our effort to reach out to the contract and informal workers to make sure that they contribute to CPF. So contract workers by law will still be required to pay CPF unless the Member is talking about contract for service which is basically the self-employed.”
“The detailed breakdown of foreign/local workforce data would be available when we have completed our annual labour force survey. I would ask for Members' indulgence and wait for the data to come by. But from anecdotal feedback, we do see a mix of local and foreign workers being affected. Some foreign workers, as the Member rightly pointed out, were not retrenched but their contracts were not renewed, so they were released and went back home. I think there was evidence that this is also happening.”
“I would like to thank Dr Ahmad Magad for his comments and suggestion. I think it is a very good suggestion. But as the Minister for Finance has explained earlier, the whole Resilience Package was designed on the basis that we want to keep it simple and effective so that we could extend the help and support for the businesses and workers as soon as possible. It is for this reason that we have kept the Resilience Package simple and easy to implement. It is for the same reason that we have kept Jobs Credit very simple. Even for the PMETs, they will also be entitled to the 12%, up to $2,500. The $2,500 benchmark is actually our median wage and it is already catering to the middle-income group. Therefore, it is not necessary for us for the time being to think about another tier. Also, the Finance Minister explained that there is a trade-off with the given package. If you want to give more to PMETs, we will then end up in having a trade-off to give less to the rest of the workers. Therefore, on balance, Dr Magad's suggestion has merits, but we have decided to go on a simple package, focusing on the middle and lower-income of up to $2,500. I think that is most effective in helping to save jobs, especially for this group of workers.”
“Of course, yes. Certainly, as I mentioned in my speech earlier on, we have already linked up all the data among all these institutions so that when you go to anyone of them, they will be able to make referrals effectively. Second question on PCP. Over the last two years, the economy has been growing very rapidly and training has been very difficult to promote because people are short of time, short of workers and therefore there have been some difficulties and some friction.On top of that, PCP, in particular, is not an easy programme because it involves conversion, meaning we are looking at people who want to switch jobs from one career to another, going into an industry that they may not be familiar with. It is like going back to school. For many of them, their mindset needs to be changed. And we are making progress in helping them overcome this change of mindset. We are now seeing more workers coming forward to join us in our training programmes, especially during the downturn. This is encouraging. I have earlier on given some indication of how many were on our SPUR programme. 4.15 pm On the last point on CPF contribution rate, I have also explained in my answer that to tweak the contribution rate and allow more to be drawn out to pay for housing may, in the long term, undermine the retirement adequacy. It is more important for us to help them through many other different schemes. MND has just recently announced several measures to help needy residents who are unable to service their housing loans, including the Lease Buyback Scheme. We have sufficient help schemes for them. And if they have financial difficulties, we will be very willing to look at them. There are the CDCs, ComCare and many other schemes which will be available to them.”
“I think the Member means CPF. First and foremost, in terms of assistance given to residents. Many institutions are available to them. They can go to CDCs, they can go to the Continuing Education & Training Centres (CETC) if they know specifically which particular industry they are interested in. They can also go to NTUC's e2i if they are familiar with e2i. But I would imagine that most residents will be more familiar with CDC where they used to go to for assistance. And of course if all else fails, they can always go to the MPs for help and MPs can then refer them to CDCs or the relevant institutions. So I would suggest that for residents who need help, the most convenient point would be the CDCs for them.”
“So I think we will continue to tighten that.”
“Sir, in reply to Mdm Halimah's question on tripartite guidelines on managing excess manpower. Today we have a tripartite collaboration with SNEF as well as NTUC. For those who are not unionised, we will continue to work through SNEF through their employers as well as SPF through their employers federation. At the same time we also be working with the companies directly because as companies face difficulties, when they need to retrench their workers, we also have an understanding that they will inform us. And when these companies inform us of their intention to retrench workers or when they inform us that they are facing problems, difficulties with their businesses, we will then work with them through the problems and we will also introduce them to the tripartite guidelines. It is also important for us to continue to organise outreach programmes to reach out to companies which are not unionised so that they too will be familiar with various options that are available under the tripartite guidelines for managing excess manpower. I think it is work that we need to continue to do and we will look forward to working together with SNEF as well as companies that are facing difficulties. For S-Passes that the Member has mentioned, I mentioned in my speech earlier that we would be tightening the criteria for S-Passes in order for us to improve the quality of S-Pass workers coming to Singapore. It was introduced a few years ago to allow companies to have more flexibility to have access to higher skilled workers, especially those with diplomas and high school qualifications. And now, we need to tighten the requirements so that we want to ensure that S-Pass workers who come to Singapore have a set of certain skills that we need, of certain qualifications that we are looking for.”
“What is more, they can of course qualify for the Medisave Contribution Draw and benefit from Workfare as well; especially since this time the Special Payment will be made in cash. Sir, we have to continue to help employers and employees prepare for re-employment. We have to continue to help Singaporeans understand CPF LIFE, and to help more members participate in the scheme so that they can benefit from lifelong income. And, we will help and encourage low-wage workers to continue working through Workfare. We cannot wait for better times to deal with these important issues. I am confident that with the strong support from our tripartite partners – NTUC, SNEF, SBF and others – we will make good progress on these fronts, even during the downturn. Contract Workers”
“Dr Ahmad Magad suggested that WIS should pay informal workers in cash, and to give greater flexibility to those with less regular employment. I would like to thank Dr Magad for this suggestion. We have done that for the WIS Special Payment which I talked about earlier. But for the regular WIS, we should be more cautious about making changes that could affect work ethic and self-reliance, because unlike the Special Payment, Workfare is a permanent scheme. Nevertheless, we will review the WIS scheme in 2010, and will take into account feedback from MPs and others. During the Budget debate, Mr Christopher de Souza also suggested doing away with the requirement to make Medisave contributions to qualify for WIS. We must remember that the responsibility of looking after one’s retirement and healthcare needs lies first and foremost with the individual worker, even during an economic downturn. Waiving the requirement to make CPF contributions would be sending the wrong message. Ever since Workfare was introduced, our tripartite partners and grassroots leaders have been hard at work reaching out to the self-employed and informal workers to explain the importance of CPF and encouraging them to contribute to Medisave. We also introduced the Medisave Contribution Draw as an additional incentive. In fact, the grand draw for workers who had worked in 2007 was held just two days ago. The grand prize winner is a 50-year-old taxi driver; he won $5,000 cash. Over 500 others also won cash prizes ranging from $200 to $3,000. I strongly encourage self-employed and informal workers to make regular Medisave contributions, not just to win the Lucky Draw, but to save up for their healthcare needs.”
“By then, these members may be less able to work to support themselves even if they want to. The Minimum Sum is also not the only asset that CPF members have. In fact, some of them have withdrawn significant portion of their CPF savings when they reached 55 years old. Many would have substantial housing equity in their HDB flats as well and may be eligible for the Lease Buyback Scheme. They can also seek help from their family members, such as through the Minimum Sum Topping-Up Scheme which we have just liberalised further. Those who still face difficulties can approach the CDCs, which will assess their situation and see if they are eligible for financial and other assistance. The CPF system has undergone a set of major reforms in the last two years and will better prepare Singaporeans for the challenges that we face in the future from an ageing population. The second long-term challenge that our society faces is the impact of globalisation on the lower-skilled workers. While we must press on with our economic strategy to stay globally competitive, we must do our best to ensure that all Singaporeans can enjoy the fruits of our economic progress. 2.45 pm In 2007, the Workfare Income Supplement (WIS) was introduced as a long-term scheme to supplement the income of low wage workers and build up their CPF savings for long-term needs. Over 300,000 workers benefited from the WIS payment for work performed in 2007, receiving an average $1,000 each. This is a substantial amount. For 2008, close to 270,000 workers have already received their provisional WIS payment for work done in the first half of last year. More are expected to benefit when the final payments are paid in March and May for employees as well as self-employed persons respectively.”
“Beginning 1st January 2011, CPF Board will require all existing funds under CPFIS to also meet these criteria to be allowed to accept new investments. This is to lower the cost and improve the quality of the funds in CPFIS. Next, with the implementation of the extra 1% CPF interest rate since 1st April 2008, only monies in excess of $20,000 in the OA and $20,000 in the SA can be invested under CPFIS. Given the higher interest rate on the SA and the uncertainty of CPFIS returns, it is better to be more conservative. Hence, we will raise the threshold of SA from $20,000 to $30,000 effective 1st May 2009. This means that members can only invest amounts in the SA in excess of $30,000. Existing investments will be unaffected and the restriction on the first $20,000 in the Ordinary Account (OA) remains unchanged. Third, Ms Sylvia Lim asked if the floor Minimum Sum payout could be reviewed so that it is comparable to that of the Public Assistance scheme. As has been reiterated before in this House, the CPF system is premised on self-provision and self-reliance. Members can only withdraw what they put into the CPF. This is what makes the CPF system sustainable. The Minimum Sum Scheme is designed to allow members to receive monthly payouts that will last for 20 years. Increasing the withdrawal amount must mean less for the member in future, that means their savings will not last 20 years, it will be much shorter. Already, many members currently receiving the floor payout of $297 a month would not have enough savings to last the intended 20 years. In fact, with longer life expectancy, we should stretch the payout period further. Raising the floor payout would be irresponsible as it would mean that their savings would run out even faster.”
“Dr Lim Wee Kiak was concerned that members who suffered reduction in wages during this recession could have difficulties servicing their housing loans. He suggested that these members be allowed to use their Special Accounts (SA) to service their housing loans. I wish to reiterate that savings in the SA are meant for retirement. Allowing CPF members to dip into their SA to finance their homes could seriously affect their retirement adequacy. We had in the past allowed limited usage of the SA for housing when CPF rates were cut, but only to the extent where the members were affected by these cuts. However, in the current economic downturn, CPF rates have not been reduced. Instead, the Government has introduced the Jobs Credit Scheme. MND had earlier also announced measures to help home owners who may encounter difficulties with paying their mortgages. It is, therefore, not necessary to dip into their SA. Dr Lim also suggested allowing a one-off withdrawal of CPF for training under SPUR. It is not advisable for the same reasons I mentioned earlier. Furthermore, training programmes under SPUR are generally affordable. Let us monitor the situation and consider additional help and support in future when the need arises. I will also address some initiatives to refine the CPF Investment Scheme (CPFIS). Under CPFIS, members can invest their OA and SA savings. But these members must take individual responsibility and accept the risk of their investment choices. Since 2006, new funds have to fulfil more stringent admission criteria which take into account the fund’s relative rating, track record and expense ratio, before they can be included under CPFIS.”
“If Mr Veloo opts for the LIFE Balanced Plan, starting from January 2010, he can expect to receive between $380 and $400 every month, not just for 20 years, but for as long as he lives. Mdm Halimah asked how we are helping CPF members including contract workers who do not have sufficient savings to participate in CPF LIFE. Firstly, let me clarify that there is no minimum balance required. Therefore, those with lower balances than $40,000 can still opt into CPF LIFE. Secondly, we want to encourage families to help their older family members by topping up their CPF. Last year, we made it easier for CPF members to receive top-ups to their Retirement or Special Accounts from family members and other individuals under the Minimum Sum Topping-Up Scheme. This year, we will liberalise the rules further. Previously, we only allowed those with at least 1.5 times the prevailing Minimum Sum in their CPF balances to make top-ups using their CPF savings. From 1st April 2009, they need only have CPF balances of at least the prevailing Minimum Sum, to be allowed to make CPF top-ups. From 1st August 2009, we will also remove the age restriction that CPF top-ups to parents and grandparents can only be made to those aged 55 and above. Top-ups, whether by cash or CPF, can help older CPF members participate in CPF LIFE, enjoy the L-Bonus, CPF 1% extra interest and possibly higher D- and V-Bonuses as well. Naturally, if CPF members continue to work after 55, this would be the best way for them to continue building up their balances to participate in CPF LIFE. Contract workers who are older low-wage workers will receive additional help in the form of Workfare. I will now briefly touch on other issues regarding CPF. First, on the use of CPF for housing.”
“Members who prefer to rely on commercial annuities may also be exempted from CPF LIFE, provided that the annuity gives them benefits that are not less than that offered by CPF LIFE. We have, therefore, decided not to capture the effect of socio-economic differences on CPF LIFE, to keep the scheme simple. LIFE premiums will only be based on gender and age, which is the standard practice in many existing annuity schemes. Most insurance schemes around the world have also not adopted SES factors in pricing their premiums. Let me move on to opt-in for older members. While those who are aged 51 and younger this year will be automatically included in CPF LIFE, older members can also opt in. I am pleased to announce that from September this year, the CPF Board will start inviting older members aged 55 and above to opt into CPF LIFE. LIFE payouts for the older members will start as early as January next year. Younger members will be invited when they turn 55. When members opt in, they can also receive up to $4,000 from the L-Bonus, and up to $1,800 from the V-Bonus. Participants of the Lease Buyback Scheme, which was announced earlier, will be automatically enrolled into CPF LIFE to provide them with a lifelong income. Let me give Members an example. 61-year old Mr Veloo has $67,000 in his Retirement Account. Under the Minimum Sum Scheme, he would have received $390 for about 20 years. Let me show you why it makes sense for Mr Veloo to opt in to CPF LIFE. If Mr Veloo earns less than $1,200 per month and lives in a small flat, he will receive the maximum L-Bonus of $4,000. He will also receive a V-Bonus of $1,800.”
“However, the Committee felt that the structure of CPF LIFE should be kept simple and easy to administer, yet fair to all its participants. Therefore, it decided to recommend only age and gender for the purposes of pricing, and not to take into account other factors such as whether a person smokes and whether he is obese, and so on. The NLIC also noted the possible effects of different socio-economic status (SES) on a person’s lifespan but found that there was no robust local data on SES. The NLIC, therefore, recommended that the Government study this further. The CPF Board has completed its preliminary study of the possible relationship between SES and mortality. The study showed that there is a correlation between mortality and the selected proxies representing a person’s SES. However, it also showed that the age to which a person in any SES grouping will live, can fall in a very wide range. This is because life expectancies are affected by many factors including those related to a person’s health and lifestyle, for example, whether a person smokes, consumes alcohol, exercises regularly, and not just SES. It is unclear what the actual effect of the SES proxies would be, unless we could segregate the effects of health and lifestyle factors from these proxies in the study. If we did so, the effect is likely to be smaller. More importantly, the approximations involved in assessing an individual’s SES could in fact place some people in the wrong category. This would be unfair and run contrary to the objectives of the scheme. The refundable option in CPF LIFE will mitigate to some extent the anxiety of some members that they may not live as long as others. With this option, members who die early will have a bequest amount as illustrated earlier.”
“The monthly income and bequest amounts are given as ranges because the actual amounts will depend on actual interest rates and mortality experience. If Mr Tan prefers a higher monthly income, he can choose the LIFE Plus Plan but the trade-off is a lower bequest amount. If Mr Tan wishes to leave more for his beneficiaries instead, he can choose the LIFE Basic Plan but he has to accept a lower monthly income. If Mr Tan does not wish to leave behind any money because he has no siblings or for whatever reason, he can opt for the LIFE Income Plan, which offers the highest monthly income but has no bequest amount. The LIFE payout ranges under the four plans are shown on the slide for Members' reference. Mr Teo Ser Luck asked how a protracted economic downturn will impact CPF LIFE payouts. As I have mentioned, apart from mortality, LIFE payouts will depend on actual interest rates. A lower interest rate would lead to lower payouts. Likewise, if interest rates rise, payouts will be higher. Therefore, we expect CPF LIFE payouts to be adjusted from time to time. This is in line with the principle that the scheme should be self-funded and sustainable. It is for this reason that I have given the monthly payouts and the bequest amounts in ranges. Nevertheless, the CPF interest paid by the Singapore Government will not fall below the guaranteed floor rate of 3.5% on the first $60,000 of CPF balances and 2.5% for amounts above that. This guaranteed interest rate is something that commercial providers are not able to offer. When the NLIC deliberated on the pricing structure of CPF LIFE, it noted that many factors affected the lifespan of an individual.”
“For such plans, depending on the member’s age when he passes away, his beneficiaries would receive a bequest amount, which is the remainder of his CPF savings plus a refund of any LIFE premium that has not been paid out. To give members flexibility and choice, the National Longevity Insurance Committee (NLIC) had recommended offering members 12 different plans, six refundable and six non-refundable. Mdm Halimah asked how we can help members choose an appropriate CPF LIFE Plan. The original 12 plans gave members a choice but, at the same time, made it more difficult to decide. We have therefore reduced the number of plans from 12 to just four that are meaningful, simple and clear. For avoidance of doubt, let me clarify that payouts will start at age 65 for all four plans. I will now elaborate. Two key factors that members need to consider are the level of monthly income and the bequest amount for his beneficiaries. These four plans will offer members a range of trade-offs between these two factors. The default plan is called the LIFE Balanced Plan. As the name suggests, it will provide members with a balance between a reasonable level of retirement income, and yet at the same time some bequest amount if they were to pass away early. Let me give an example to illustrate this. A person, Mr Tan, 55 years old, who chooses the LIFE Balanced Plan. Let us assume he has $67,000 in his Retirement Account. Mr Tan can expect to receive between $570 and $620 every month from age 65 for as long as he lives. If Mr Tan passes away at the age of 70, just an assumption for discussion sake, his beneficiaries will receive a bequest amount of between $76,000 and $79,000.”