Halimah Yacob
Singapore
“Thank you. I think that is certainly a very good idea and that is what we want to do and wish to do, to have the integration of the facilities. As the Member said, it is to encourage inter-generational bonding and support. In fact, we have already started one in Mr Seah Kian Peng's constituency.”
“I thank the Senior Parliamentary Secretary for the clarification, and for his information, I have written twice to LTA. The answers have been negative. My question is, what is the alternative because the purpose of the overhead pedestrian bridge is for people to cross over but the elderly has difficulty crossing over?”
“Mr Speaker, Sir, I am really happy to hear about the immense investment in helping households cope with the rising cost of energy. There will continue to be households that, despite these assistance measures, will face difficulty in paying for their electricity bills.”
“Sir, I would like to ask the Minister: if the problem in Japan is not resolved within the next few months, what measures will be in place to assist sectors that are affected, notably, sectors like electronics?”
“Madam, I have two concise clarifications. My first concise clarification is to ask the Minister about the very low unemployment rate. Given this very low unemployment rate, does MOM have strategies in place to help people who want to find jobs, not just those who are already displaced but those who are currently employed?”
“Madam, on behalf of the House, I would like to thank the Minister, the Minister of State and the Senior Parliamentary Secretary for the very comprehensive and detailed responses given. This year, the Ministry of Manpower did not have the highest number of cuts. That honour went to the Ministry of National Development.”
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“15 pm Secondly, I would also like to find out what will happen to the various training programmes that are currently run by the various non-Government agencies, such as NTUC and the self-help groups. Will all these now come under the new statutory board? Perhaps, this may be a premature question, because the board has yet to be formed, but these are some of the issues the board ought to look into when it is formed. Thirdly, I want to stress on the need for continued strong partnership of labour, Government and employers, and the community on the various areas to be covered by the CET. Fourthly, I also feel that there is a need for the board to remain focused and to help those who are most vulnerable and at risk, such as older and less-skilled workers. I also feel, Sir, that there is a need for better outreach programmes, as anecdotal evidence, particularly in the Malay community, seems to suggest that those coming for training are generally those who are better educated, and also those who have better skills. Sir, despite all our efforts, there will always be a group that will be untrainable, for whatever reasons. I would like also to find out what will be the CET's approach to this group of people, how it proposes to help them. Sir, another group of people that I hope the CET will address will be self-employed Singaporeans who do not have access to training funds. I urge the CET to look also at how to allow them to gain access to training funds, as I feel that this number will grow as our ---”
“Job assistance, for instance, had developed more as an ad hoc programme as a result of the Asian financial crisis. It is obvious now that we need a more permanent structure in view of the changed environment and the problem of structural unemployment. Sir, it is important that the courses the people go through remain relevant and useful. There is also a need to make sure that those who have undergone training have jobs. So there must be a link between training and job placement, otherwise people will get quite disillusioned. For this, employers must also play their part, not participate in programmes, just because they feel obliged to, but actually are not too committed to the programme. I have received some complaints from retrenched workers who are placed on the People for Jobs Traineeship Programme, for instance, that employers are reluctant to employ them after the training period is over. Such examples will discourage people from taking up training courses and act as a disincentive. I hope that the Ministry will continue to monitor the situation closely. Sir, I will not repeat the points which have been raised or mentioned by my colleagues, the other labour MPs. But I have a few points to make with regard to the work of the CET. First, is the point about drivers. I think all training programmes need drivers. So having a statutory board and parking the training programmes under the board itself, I do not think that alone will be effective. So I think it is necessary that the board continues to have drivers to drive individual training programmes similar to the schemes which we already have right now. 6.”
“Sir, the announcement that a new statutory board is being formed for continuing education and training has rasied a lot of expectations. Many people expect the statutory board to fill up all the gaps that are currently found in our training programmes and job assistance plans. I hope the statutory board will live up to this expectation. It is an important development and we should give it a chance to take root. To me, it is an important milestone in our efforts to develop human capital. Sir, a key challenge for this statutory board will be to help people to remain employable. If jobs are no longer guaranteed, then it is important that we help people to acquire the means to remain employed. If we want labour market flexibility and workers' mobility, then we must have a system in place to help workers acquire skills, competence and the frame of mind that will prepare them for change and help them remain continuously employed. With this, Sir, adjustment process will be chaotic, painful and will cause social disruption. The CET must help workers to develop wings so that they can navigate through the rough wind of adjustments that is blowing through our economy. It must also act as a contractor between workers and jobs as displacement will become more common. Sir, I believe that the CET is a move in the right direction and will strengthen our social safety net. As I had argued on the first day of the debate, as we examine how to make our labour market more flexible, we must also continue to ensure that our existing social protection system is adequate and move in tandem with the other changes in the labour market. Sir, this new statutory board will provide greater focus and coordination for worker training and job assistance.”
“Investments will come in but these will be high-value added and high-skilled jobs. So, I think it is necessary that we revisit this issue, even though we may not immediately change the quotas, but I think there is really a need to revisit and see what we need to do. Because it does not really make sense for us to continue to have large numbers of foreign workers when Singaporeans themselves are unemployed. Sir, recently, at my MPS, a 75-year old lady came to see me and she asked for a job as a cleaner. I was rather surprised because I thought she earned the right to retire at the age of 75. But she told me that her son had lost his job, and as he could not get another job, she had no source of income. So, I think the situation is getting pretty desperate for some people, and I do urge that when we look at statistics and figures, we remember there are faces, there are families, there are problems behind those statistics and figures, and that we will really put in a lot more effort to ensure people get work and remain employed. As it is, my firm belief is that the greatest dignity that we can give to a person is a job. On that note, Sir, I do hope for a response from the Minister.”
“Sir, there are larger numbers who are being retrenched, but the indications are that there are less jobs being created. In fact, the EDB said that 20,900 jobs will be created over the next five years. Out of these, 18,000 jobs will be created by sectors like bio-medical sciences, chemicals, infocomms and the media sectors. But if we look at the bio-medical cluster, for instance, they employ only about 7,000 jobs. So, jobs are created but the numbers are smaller and these are also higher value added jobs. So, the questions that I would like to ask the Minister are these. What is the general employment outlook, where are the jobs being created, and what kind of jobs are these? Will there be enough jobs to absorb all the unemployed workers? What about prospects for the older and semi-skilled workers? Are there jobs for them? What is the manpower planning and projection for the next three years? Sir, as the situation is not getting better - in fact, it sounds pretty grim - I would like to ask the Government to revisit this issue of quotas for foreign workers. I know, sometimes, if we raise this issue, it is almost heretical, and I think there will be a lot of unhappy employers. But I would like to argue a case for us to revisit the quotas for foreign workers. My argument, basically, is this. The quotas were set at a time when we had high economic growth, low unemployment and, therefore, the situation was much more different. Structural unemployment was not a major issue. But now, as the situation worsens, we are expected to have slower growth. The long-term unemployment will increase between 3-5%, and structural unemployment will be a major issue for those who lost their jobs. There will be jobs created in Singapore.”
“Sir, the Home page of today's Straits Times really sums it all, as far as jobs are concerned. This will be another bad year for the jobless, and firm recovery is expected only next year. Fundamentally, the issue is really one of poor economic growth. The economy is not growing fast enough, and therefore fewer jobs are created. In fact, for every 28 job openings, there are 100 job seekers. In other words, for every one job, there are four workers chasing that one job. Sir, it is easy for us to identify the reasons for the poor job growth. But we have to think of the plight of those who remain unemployed. As the situation worsens, many will get desperate and this will cause instability. The signs that the situation will get worse are there. Out of a total of 89,900 people who are unemployed, 23,900 or 27% of them are long-term unemployment, meaning that they have been out of work for at least six months. Sir, what is cause for concern is that, traditionally, those who lost their jobs in the manufacturing sector could find jobs in the services sector. Over the last few years, for instance, for every four workers who were retrenched, only one came from the services sector. But last year, almost one out of every two persons who were retrenched were from the services sector. Even the services sector is not spared. As the services sector retrenches more people, the profile of those who are retrenched has also changed. More professionals, managers and executives have lost their jobs last year. In fact, it comprises about 42% of the total of those who were retrenched. And what is worrying also is that those who were retrenched take a longer time to find jobs, particularly the older workers.”
“Madam, because of our position, I think, increasingly, Singapore will be asked to perform a wider role in the community of nations. Increasingly, I think we will be called upon to provide financial aid or other forms of assistance to less developed countries. Indeed, for many developed countries, official development assistance (ODA) has become a strategic tool in order to generate goodwill and build allies - important bridges in international diplomacy. But we are not in the league of the big OECD countries when it comes to foreign aid, and our resources are finite. We should, first and foremost, be focused on developing our own resources for our own people. However, having a clear idea of our stand on this issue and where we are heading is, I believe, useful. In that context, I would like to ask the Minister the following questions: Firstly, what is our foreign aid policy and how effective have we been? I define "foreign aid" broadly to include both direct and indirect aid, such as medical supplies, technical expertise, resources general to civic organisations, as well as programmes which are sponsored and run in Singapore to help other countries develop their expertise or manpower. Secondly, how much aid have we provided in the past, to which countries and for what purposes? Thirdly, I would like to ask the Minister whether there are any plans to provide aid to the Iraqi people in the event that a war breaks out. We will pray very hard that this does not happen but, if it does, then I believe that we can help to lessen the sufferings of the Iraqi people by joining the UN or other international aid agencies in their humanitarian efforts to help the people and to rebuild Iraq.”
“Yes, Sir. On MSO, I must argue from another angle, ie, hardship. In the current employment situation when husbands are expected to lose their jobs more frequently, the money can be used to take care of, maybe not the sick husband, but at least the sick child, this will reduce hardship. Also, when it goes back to the Medisave account, she can use it for her husband and her children. But for outpatient treatment, she cannot use it. The logic seems to be inconsistent. Sir, on that note, I do appeal, once again, on behalf of the civil servants, to review this policy and to extend equality to all the civil servants.”
“Sir, we have been hearing about this word "mindset" for a very long time. In fact, over the last few days, the words "mindset change" have been mentioned about 50 times. So I hope that there will be a mindset change on the part of the Government. I would like to argue that this is inequitable, unfair and discriminatory. In this sense, it also devalues the contributions of women. And I must say that the civil service has been exemplary because the first employer to start with the equal pay for equal work policy in 1962 was the civil service, and not the private sector. That was a huge milestone, and it set a very clear public policy of what to expect on how the female workforce should be treated. The civil service is also exemplary, in terms of the benefits it provides for the family, the extended childcare leave and paid sick leave for taking care of young children, and so on. So I hope this exemplary behaviour of the civil service would be extended to the last bastion of inequality and it would be removed. And I must argue in particular that if the civil service could ---”
“Sir, the issue that I am raising is not a new one. I think it has been raised in many Budget debates before and I also raised it in last year's Budget debate. I think everyone in this House has probably heard all the arguments, all the trite arguments and all the trite responses. The reason why it continues to be raised is because the issue itself has not been resolved. The issue is one of inequality and discrimination against female civil servants, in terms of the medical benefits that they are entitled to enjoy. The reason why I am raising it again this year is because we have been given some hope by the Deputy Prime Minister last year when, in the Budget debate, he said that the whole thing is not set in concrete and the civil service will continue to review the MSO scheme periodically, as our society evolves. I think this statement has given some hope, in fact, a lot of hope to all the female civil servants and female parliamentarians and, I hope, all the male parliamentarians in this House as well who have been hearing this debate over and over again for many years. Sir, the argument that is used here is that the norms in the civil service should not change, if society has not changed its norms. But social norms have changed. In the old days, girls did not go to school, women did not work and, in the Chinese community, the tradition of feet-binding prevailed. But today, girls go to school, and the Compulsory Education Act even compels them to do so, and large numbers of women are in the workforce. In fact, the female labour force participation rate today is 54%. Therefore, one comes to the conclusion that the only feet-binding that remains is in the mindset of the Government with regard to the extension of the medical benefits to female civil servants.”
“The challenge for Singapore really is how to bridge this perception gap so that we have more people thinking on the same wave-length. At the end of the day, Sir, what will hold us together as a people and enable us to overcome these huge challenges that we are now faced with is the trust and confidence that people have in the Government. This trust and confidence is not something that is developed by chance or that came about overnight. It arose because the Government has repeatedly kept faith with the people and delivered on its promises. I am confident that a new partnership is now developing between the Government and the people. Trust and confidence is still a key consideration, but in this new partnership it also requires greater ownership and responsibility on the part of all Singaporeans. On this note, Sir, I support the Budget. 2.08 pm”
“Does championing workers' interest mean that we have to take the popular line and shout slogans or do we adopt a more responsible attitude, analyse issues, think out the strategies and work out the programmes to help our workers? We in the labour movement have decided to cut the rhetoric, roll up our sleeves and get down to work. Singapore's progress is in no small measure due to this responsible part that we have played in protecting workers' interest. After much soul searching, we agree that, difficult though some of these ERC measures may be, they are necessary for the short-term as well as to protect the long-term interest of workers. At least with these measures we now stand more than a fighting chance to make a break and to recover strongly. If we had stuck to our guns, we may not even have that fighting chance. Take the case of the 2-year CPF deferment. Sir, I must tell you that there was also a lot of soul searching on our part. Some would have preferred to wait and have it assessed on a yearly basis. But at the end of the day, many of us are persuaded that we are not dealing with normal times. We are dealing with unusual times. And unusual times require unusual measures, unusual ways of doing things and unusual sacrifices. Sir, there are so many threats and challenges that Singapore is faced with. It is as if our entire resolve as a nation is being tested. I must say that we have kept the flag flying high. It has not been easy to get people to think and see the long-term. Sometimes, I think that there is a perennial disconnect between the Government's long-term plans and visions and desire for people to think long-term and people's concern over their short-term needs.”
“Some had said that this is a pro-business and pro-employer Budget. They pointed to the many incentives given to businesses, compared to some of the painful measures for workers. So, as a unionist, why am I arguing that this Budget is pro-worker? Mr Speaker, Sir, this is because we, in the labour movement, understand the realities down the ground. Ask any worker today and he will tell you that his major concern is about employment. Those who are employed are worried that they will lose their jobs. Those without jobs are worried about how fast they would secure another one. After the retrenchments in PSA and the restructuring in HDB, many wait anxiously and watch out for signs that will tell them whether their company is next on the line. There is an air of uncertainty and general anxiety in the atmosphere. Sir, having spent more than two decades in the labour movement, I must say that this is the most challenging period that I have experienced. In such a climate, any measures that will help to preserve jobs or to delay retrenchments are welcomed. Any measures that tell us how new investments will be drawn in and new jobs created are welcomed. Will the measures announced in this Budget guarantee that no jobs are lost? Will it guarantee that new jobs will be created to soak up new entrants to the labour market and the retrenched? Will it guarantee that older workers will continue to be employed? The reality is that no one can guarantee anything, as there are just too many imponderables. But then we, in the labour movement, ask ourselves whether we would be worse off or better off without these measures. Sir, if we stick steadfastly to old paradigms and rules, will it help the workers or make their situation worse? How should we champion and articulate workers' interest?”
“I also agree with Mr Inderjit Singh that there is a need to further promote the monthly variable component. I strongly support the Deputy Prime Minister's call that employers should pass on part of the cost-savings to deserving workers through the variable component of wages. During these difficult times, it is important that we continue to maintain the trust and confidence of workers. If companies that are still doing well do not reward workers, or try to exploit the current economic downturn, then I am afraid that irreparable damage will be done, and people will be less willing to accept change or to make sacrifices. It is also important that while we ask workers to tighten their belts and accept harsh measures for their own future, the Government continues to ensure that the cost of living does not escalate. If wages do not increase, or the pace of increase is very moderate, but healthcare, housing, transport or other cost increase, then this would cause hardship and affect workers' standard of living. Hence, I urge all service providers, whether public or private, to heed people's anxieties and concerns and do not indiscriminately increase their charges. Sir, I also call upon the Government to continue to monitor the situation of low income Singaporeans. This is to ensure that they receive the assistance that they need. There are help schemes that are already in place but we need to review these schemes from time to time, to ensure that they are adequate and are accessible to those who are really in need. In conclusion, Sir, how would I describe this year's Budget? To me, this year's Budget can be summed up in three words - pro-growth, pro-job and pro-workers. This is not an assessment that everyone would agree with.”
“Sir, let me move on to the public sector. I must say that there are a lot of anxieties when the Budget Statement mentioned that there would be a review of public sector's services with the possibility of privatising some of these services. There are two points which I would like to make. First, in line with our strong tripartite tradition, I would like to urge the relevant Ministries and statutory boards to consult and involve the unions before restructurings are carried out, so that workers' concerns can be addressed and the restructurings can be properly carried out. In this regard, I must commend the HDB management for involving the union and the extensive consultations that they had with the union and the workers before the restructuring. Sir, managing change effectively is critical to ensure that we do not end up with a demoralised public sector and to ensure that the outcomes which are desired are actually achieved. Secondly, Sir, I hope that the Government will put in place a system to monitor the quality and delivery of the services which have been hived off or may be hived off to the private sector to ensure that the same level of quality in good service is maintained. A key reason why there is strong opposition to privatisation of public sector services in many countries is because after privatisation, people find that the cost of the services either went up or the quality was affected. Hence, we need to ensure that whilst the objective of outsourcing services that can now be provided by the public sector to the private sector is cost, this should not result in a lower or more costly service Sir, I agree with Mr Leong Horn Kee that there are concerns among the older workers, whether they have enough savings in their CPF.”
“Many women today work not for aesthetic reasons or for self-fulfillment but because they have to. Women's income constitutes a significant percentage of the total family income. Many companies have found that helping their employees balance work and family means greater job satisfaction, less turnover and higher productivity. So, I call upon the Government, Sir, to give a stronger push to initiatives to promote work and family balance. As the issues affecting the family is multi-faceted, it may be timely to consider setting up a National Family Council, akin to the National Youth Council, to take care of all matters pertaining to the family. The National Family Council can act as the coordinating body, as well as the body to champion all matters pertaining to family. I would also like to request the Government to consider increasing the subsidy for parents who put their children in childcare centres. The last time that the subsidy was increased was some years ago when it was fixed at $150. Since then, childcare fees have gone up but the subsidy has not been reviewed. Mr Speaker, Sir, I also call upon the Government to pay special attention to the plight of older workers. Ageism is alive and well and employers continue to discriminate against older workers who are considered unproductive, slower and not adaptable or trainable. Such stereotypes are not only demeaning but also untrue. I have met many older workers who are unhappy that despite the efforts to upgrade and change mindsets, employers continue to discriminate against them. We need to highlight and recognise best practices among employers. The Ministry of Manpower can perhaps work out a scheme to recognise efforts of employers who have successfully integrated their older workers in their workforce.”
“If a worker is trained only if he can be placed in a job, this would also act as a disincentive to training. I want to applaud the Government for setting aside $500 million for the Lifelong Learning Fund and another $37 million for skills upgrading efforts. Singapore's huge investment in education and skills training is the envy of many countries. Many countries aspire to educate and reskill their workers as we do. Our efforts have been cited in many international publications, such as ILO's or the United Nations' publications, but few countries could come close to what we have done in terms of our heavy investment in our people. The real challenge in reskilling our workforce is how to ensure that those who really need the training attend training courses. Based on anecdotal evidence in the Malay community, for instance, my sense is that, in terms of percentage, the better qualified ones are those who are more likely to undergo training. We should have a more in-depth understanding and analysis of the training profile of our workers so that we could have a more targeted and focused approach in our training efforts. I hope that the statutory board charged with Continuing Education and Training would be able to deal with this issue in a more focused and coordinated way. Sir, another aspect of balance which is necessary, in my view, is to look at how to help employees balance work and family. For years, we have been trying to increase the birthrate. But we have made very little progress. Last year, despite all the incentives given to families to have more children, we had the lowest birthrate in 14 years. The underlying reason is clearly the inability of many dual-income families to cope with the increasing demands of work and family.”
“I accept the argument that there is no way that the 600,000 foreign workers can be replaced by the 80,000 Singaporeans who are unemployed. To send back even 10% of these foreign workers will significantly impact on our economy and cause loss of jobs among Singaporeans if companies pull out due to a shortage of labour or because of the lack of skilled workers. But at the same time, I feel that there is a need for balance and for the Government to monitor this issue more closely. The quotas were fixed during periods when unemployment amongst Singaporeans was lower. But with the current high unemployment rate and the projected long-term unemployment rate of up to 5%, these quotas may not be sustainable. Hence, I call upon the Government to review the foreign worker quota more frequently and at shorter intervals, depending on the economic and employment situation, to ensure that Singaporeans are not disadvantaged. Sir, a core element of ensuring that there is a balance between flexibility and protection is workers' training and skills upgrading. I strongly support the formation of a statutory board to undertake the Continuing Education and Training and job assistance programmes. This is an important milestone in our effort to upgrade workers' skills. The current measures on job assistance were developed primarily over the last few years, arising out of the economic downturn. However, structural unemployment will be a long-term phenomenon. Hence, a more coordinated and more encompassing approach is needed in dealing with workers' training and job placement. There is certainly a need to establish a closer nexus between training and job placement. But, on the other hand, some flexibility is necessary.”
“Under the guidelines, employers are required to consider implementing a shorter workweek and other measures for reducing costs before resorting to retrenchments. But there is no means of ensuring that employees comply with these. There are two measures which I hope to seek a response from the Government. One possibility of further strengthening our social safety net is the setting up of a fund which could be used to pay some benefits to workers who are retrenched. I know that, in the past, this idea had been shot down. It had not been well-received but I think there is some need now for us to rethink about this issue. A key issue here is, of course, financing. But I would like to suggest also that when a review of the CPF is conducted, the Government could consider setting aside a portion of the CPF into this fund. Also, instead of giving out shares or topping up the Medisave, perhaps the Government could consider contributing into this fund. Sir, I do not have ready answers on this. But this is an issue that we need to discuss and forge a consensus on how to move ahead. As the long-term unemployment rate will remain high with structural unemployment complicating the issue, there is clearly a need to engage in further discussions on this. In order to prevent this fund from becoming a disincentive to work, there can be conditions attached, such as the maximum that can be withdrawn and the need for the retrenched worker to make serious efforts to find a job. Financing, as I said, is a key issue, but I am quite confident that if we can continue to discuss, we may be able to forge a consensus. On the issue of foreign workers, Sir, I agree that there must be flexibility.”
“For example, older workers can be given a higher tax exemption instead of a blanket exemption of $1,500 for everyone. Secondly, I would also like to ask the Government to consider pegging the additional 1% contribution into the Medisave account to the median wage of our workers. This would ensure that lower income workers have a basic floor. Otherwise, the contribution that they receive will not be meaningful enough to encourage them to adopt the portable medical benefits scheme and would not provide effective protection. Pegging the 1% contribution to the median wage is a fair and reasonable suggestion. So, I would like to ask the Minister to seriously consider this proposal. Sir, along the line which I have argued earlier on the need for refinements to our existing system to ensure a balance between flexibility and protection, it is important that we continue to strengthen our social safety net. As the economy restructures and jobs are shared, there is a need to ensure that workers get some form of compensation to tide them over their unemployment period. While news reports are full of high profile cases, like the PSA and HDB where some have lamented that the benefits are generous, there are cases where workers are not paid when the companies retrench or wind up. While there is flexibility for employers to shed workers, we also have to ensure that employers exercise this right fairly and in a responsible manner. So, I call upon the Government to monitor the retrenchment situation closely to ensure that employers comply with the tripartite guidelines when dealing with excess manpower and ensure that workers are paid retrenchment benefits when they are retrenched.”
“Currently, other than the CPF, the other employment benefits are rigid in two ways. They are mostly tied to workers' present job and are not movable. Secondly, they also depend on a person's length of service. A case in point is the medical benefits, which are important to workers as healthcare cost is a grave concern for many. But as the Finance Minister correctly pointed out, once a worker moves out of a job, he loses the benefit. For older workers, this is particularly hard as employers do not want to hire them because of concerns over higher medical costs. Sir, I am very happy that the Government has accepted the ERC's recommendation on portable medical benefits and decided to raise the tax exemption limit for additional Medisave contributions from private sector employees from 1% of an employee's monthly salary at present to a lump sum of $1,500 per employee per year. But, Sir, I would like to request that the Government consider two refinements. First, I would like to ask that the Government consider providing incentives for older workers to move into the portable medical benefits scheme. This is important, as they would otherwise not find the scheme attractive enough, as the portable medical benefits scheme is essentially a savings scheme and the earlier you come on board the scheme, the better. Hence, for older workers, because they have fewer number of years to work before retirement, they may find the scheme less attractive. Having any support from the Government will be very helpful in terms of extra premiums or other incentives. Another possibility is for the Government to consider providing different scales of benefits for tax exemption for workers of different age groups.”
“While I agree with her on this and the many other good points which she had made, I am a bit concerned about one point which she had raised. She had argued that the employment relationship should be treated as a purely commercial contract, and one should not look beyond that. If we accept this argument, I fear that one day, we will even have to do away with core legislation which protects workers' interest and welfare, such as the Employment Act or the Workmen's Compensation Act, as the argument would then be that workers should take care of these needs through individual contract negotiations. Is this a desirable development from our society's point of view? I clearly submit that it is not, as the fact remains that there are inequalities in the labour market which cannot be completely removed by adopting a strictly commercial approach. Hence, some form of legislation and system has to be put in place to ensure fairness and to balance the interest between enterprises and workers. I would argue, Sir, that this approach is good, not only for individuals and families, but also for the economy and for employers too. Workers who are more stable and secure can contribute more effectively and efficiently to the company and our economy. Sir, I want to make one point clear though. I am not suggesting that we should become even more protectionist. But I am arguing on the need for a balance. I also wish to make the point that as we review and refine the present structure that is in place in order to achieve labour market flexibility, we also need to update and refine the existing system that is in place to protect workers' welfare. A key refinement that is sorely needed is clearly portability of core benefits.”
“Mr Speaker, Sir, thank you for allowing me to take part in this Budget debate. This year's Budget contains a clear and unequivocal message for workers. There has been a significant shift in the labour market, and this has vast implications on workers. Although manufacturing remains one of the two key engines of our economy, it is no longer the largest provider of jobs. Most of the jobs are found in the services sector, but even this sector is not spared. Some jobs have shifted out of the services sector to lower cost locations. The public sector, which has undergone a lot of changes over the last few years, is also no longer a safe haven. In a nutshell, the employment market has drastically changed, and painful adjustments have to be made. Sir, we can see these changes that are taking place and know and understand why they are happening. Jobs are less permanent now, and shorter-term, compared to the past, and no one can expect to retire in his first job any more. But, at the same time, we must also understand that workers have families and commitments which are regular, permanent and long-term. Hence, they need income stability and job security. How do we ensure that we continue to maintain a flexible job market but at the same time do not cause such huge fluctuations in our workers' lives as to destabilise families and our society? Can we achieve these twin objectives of a flexible labour market, which means that more of the ups and downs would have to be borne by workers, as against their need for balance and stability? Ms Chua Mui Hoong, in her article in the Straits Times dated 8th March 2003, argued that people should stop lamenting about job losses and instead should focus on how to manage job shifts.”
“Sir, could the Minister give us a bit of the profile of employers who defaulted? Are they MNCs, local companies and which sectors are they from?”
“Two supplementary questions, Mdm Deputy Speaker. First, I would like to have the Minister's views as to how he sees what has happened between Singapore and Malaysia, how has that impacted upon the relationship in ASEAN. Because many outside ASEAN look upon ASEAN as being not a very strong organisation, particularly in this era of multi-lateral organisations where people get together in order to put up a great supposition of strength. How has this impacted ASEAN? My second question is whether the Minister considers that there is a need or possibility to develop a channel for dispute settlement among the ASEAN countries itself because, up to now, there appears to be no channel for such a settlement of disputes, if such disputes develop within ASEAN? And whether this would be something useful for ASEAN to consider, particularly, since the ASEAN countries like Singapore and Malaysia are very important countries in the grouping?”
“Mr Speaker, Sir, let me join my other colleagues in thanking the Deputy Prime Minister and Minister for Finance and the Government of Singapore for listening to the voices of the people in asking the Government to take into consideration the current economic downturn and the hardship that they are faced with. I can quite agree that it is not really ikan bilis, it is a lot of money that the Government has to forgo in terms of the budget as a result of this 1% increase. I would like to ask, and I am sure, Mr Speaker, Sir, that the small businesses, the retailers, are the people who would be very happy because now, with the smaller increase, their sense of consumers not buying enough would be somewhat abated. But I would like to ask the Government to continue to look into this area: how to help the small businesses and retailers. And, in particular, I would like to ask the Deputy Prime Minister and Minister for Finance that for those who are having transactions with the Government, or who provide the Government with goods or services, or do any form of construction or public works for the Government, the Government could also consider expediting payments for them, for instance. I am not suggesting that payments are slow but, I think, many are faced with cash flow problems and for those dealing with the Government, if the payments are made much more promptly, that will certainly help them.”
“I appreciate, Sir, that in recent years, attempts have been made to reduce the workload in the non-teaching areas for our teachers, but I believe that more could be done to help teachers prepare for the new methodologies and concepts that they are now required to teach. I also hope, Sir, that the Ministry of Education will come out with effective communication materials, so that parents understand these reforms and will not be so bewildered. Some parents I have spoken to do not quite understand what is going on. This is because there have been many changes to our education system. This has caused a certain amount of confusion and concern among parents. I would like to suggest that schools work through their PTAs to reach out to parents, particularly those who have children in secondary schools. In conclusion, Sir, our education system has served Singapore well. It has brought us to the present level of development and helped us overcome several crises. The path ahead is fraught with uncertainties, both for the economy and the labour market. People have asked what do we hope to get out of our education system. My hope, Sir, is very simple - that we will continue to provide students of all social backgrounds and capabilities with the opportunity to develop their potential to the fullest and, at the end of the day, have the skills and capacity to weather change, remain employed and live a good life. I believe, Sir, that the current reforms will contribute towards that outcome. On that note, Sir, I support the motion.”
“It described the role of general education as providing individuals with the minimum requirements to function productively in the workplace. The focus should be on basic skills, including the ability to identify, analyse and solve problems, the capacity to learn new skills in order to adapt to new work tasks, the ability to communicate with others and use information independently, planning skills, computer literacy and a grasp of simple scientific knowledge and technology. Sir, the World Bank research has shown that, in some countries, workers who have completed secondary school have a 50% greater chance of receiving on-the-job training than those with a primary school education alone. The World Bank also suggests that training in specific skills is more effective when trainees are already literate and numerate and have problem-solving skills that they can build upon. In this regard, Sir, the reform of the JC curriculum and those at the top 10% of the cohort would better place such students to acquire higher skills and integrate effectively into our economy. In order to allow students of all achievement levels to benefit, I would also ask that the Ministry of Education look into the curriculum of the whole secondary school. Sir, there are two other brief points that I wish to touch on. I would like to ask that the Ministry of Education also pay adequate attention to the needs and training of our teachers. In this regard, I am not sure whether 2004 will give us sufficient time to prepare the teachers for the Integrated Programme, and I do ask that the Ministry review regularly the staffing requirements, so that teachers would not be overloaded and will be able to deliver the changes in the education system effectively.”
“Based on what I have said earlier, I think we need to pay some attention to this issue and critically examine whether the existing system, in particular, our secondary education, meets the needs of these students and adequately prepare them with the necessary skills. On a related point, Sir, I would also like to join other colleagues in asking that not only JC students and those in the top 10% of the upper secondary cohort be equipped with thinking skills. There is, in my view, a certain amount of over emphasis on preparing students for university education. It is as if only those who are clearly demarcated for university education need to have thinking, communicating and other process skills when one would argue that all students who come out of our education system need such skills, if they are to meet the needs of an innovation driven economy. For example, Sir, if we have a technician who has no university education, do we not want him to have the same abilities to think, apply and communicate as the engineer with whom he is working? I would argue that all who enter the workforce would need such skills. And there is therefore a need to review the entire school curriculum from primary school onwards. Although the Minister of State for Education has said that such core skills are already being taught in primary and secondary schools, the fact that we are now reforming our JC curriculum clearly shows that there is insufficient focus placed on such skills. The importance of having foundation basic core skills cannot be over emphasised. In the 1990s, Sir, a US Commission on achieving necessary skills defined the role of education and identified the kind of core skills that should be taught in American schools.”
“I have been told that some of these have been collapsed to about a broad band of 15 to 20 categories of certificates and skills. I am not saying, Sir, that the Norwegian system is a better alternative. They revamped their education system in 1994. But I certainly think that there is scope for us to rethink the way in which our secondary education is structured and ask the question whether it really meets the needs of the students and the economy. In our case, although a Normal (Technical) student would have spent five years in secondary school, at the age of 17 years, he would still have insufficient basic skills and be inadequately prepared for a job. Only when he has gone through another two years in ITE, then would he acquire basic skills and a certificate to enter the workforce. I really think that there is greater scope for the MOE to examine this issue. It can perhaps look into how to better integrate the Normal (Technical) education with ITE education so as to ensure a progressive and consistent build up of skills and competency. I frankly do not see much of that continuous flow now. I would like to suggest that MOE examine this aspect and consider the feasibility of creating better pathways from the Normal (Technical) education with ITE. Sir, we are currently spending a lot of resources, time and effort to re-skill and find jobs for our lower-end workers who are retrenched or unemployed. We have to ensure that 10 to 20 years down the road, this pattern is not repeated. The answer to that, of course, lies in our present education system and, in particular, the education for those who are less academically inclined.”
“In this regard, it is therefore important that our school reforms also adequately focus on the need of the majority, and not just increasingly the small band of students at the top. A key question I would like to ask is whether the reforms have gone far enough and fundamentally examine the way we have structured our primary, secondary and JC education. Although this Report is meant to initiate reforms to upper secondary education, I note that it has basically left upper secondary education intact. In fact, the only reform to upper secondary education will affect only the top 10% of each cohort who qualifies for the Integrated Programme where seamless upper secondary and JC education is provided for them. Sir, in the present system, students are streamed into different streams after their PSLE examination results. Those who are academically inclined go to the four-year Express Stream. Whereas those who are less academically inclined, or need more time, are streamed into the five-year Normal (Technical) or Normal (Academic) programme. Some countries have integrated general and vocational education in unique ways and, in this way, better prepare students for either an academic or vocational path. An example is Norway, where the first two years of education are given at school. The students in Norway must choose different, more specialised courses during the second year. These are provided in schools, whilst others are workplace-based. The academic track entails three-year courses. Under the vocational track, students have two years of school-based education and another two years of apprenticeship training. The concluding specialised training takes place in the workplace. In total, there will be 190 different craft or journey-man certificates.”
“Let me elaborate, Sir, a bit about how job segmentation has taken place based on education and skills. This is really a global and not just a local issue, and why we have to pay close attention to the education system if we do not want to perpetuate the problem of unemployment among the unskilled or low skilled. The US Department of Labour, Sir, estimated that in the 1990s, occupations that required a college degree were growing twice as fast as others. At the European Union level, the 1995 White Paper on Education and Training had identified the need for all citizens to develop a knowledge base that would help them find their way in the information society. It warned against the danger of social exclusion among some groups in society based on lack of knowledge. In developed countries, the patterns of employment have changed dramatically. Within firms in such countries, the labour market has become more and more segmented. Employers have reorganised their work into two categories - core and non-core work. Core workers are those with high skills and non-core workers are those with little or no education, or possess obsolete skills. Needless to say, core workers receive better pay and have greater stability of employment. Whereas non-core workers treated as the peripheral workforce enjoy low status, low pay, and absolutely no security of employment. As multinational companies operate across borders, we cannot isolate ourselves against such employment practices. I see the role of our education system as ensuring that our workers remain as core workers. Otherwise, we may end up as non-core workers and the foreign talents become core workers on our own shores.”
“Thank you for allowing me to join in this debate. Being the 21st speaker, I think it is extremely difficult at this late hour also to enthuse anybody to continue to focus on what anybody has to say after this. But I do beg your indulgence. [Mr Deputy Speaker(Mr Chew Heng Ching) in the Chair] 5.35 pm This report, Sir, on reforms to our junior college and upper secondary education is indeed timely and necessary. Moving this debate to a broader plane, this is not just about how we educate our students in secondary schools and junior colleges. More importantly to me, it is about how we develop our human resources to fully benefit from a global economy that is, today, highly integrated, and when the key differentiating factor is no longer technology and capital but keyboard. Those with the right education, skill sets, aptitudes and capabilities will be able to fully maximise opportunities. In many countries, the income gap is widening. Singapore is no exception, although our situation may not be as bad as other countries. Increasingly, a clear and distinct line is drawn between those with education and skills and those without. Indeed, it is our obligation and duty to ensure that everyone can aspire to a higher income and a better life. I see education and training as critical factors, not only in achieving economic efficiency but also in ensuring social equity. In fact, education has been the greatest social leveller in our society. In Singapore, it does not matter what social background one comes from as opportunities are provided for all to transcend social barriers and climb up the ladder. This is one major contributing factor for the high level of social cohesion that we enjoy in Singapore today. And this is something that we must continue to emphasise and propagate.”
“I hope to ask an intelligent question, Sir. My question to the Minister of State is that since there is a gap that needs to be filled, and that is why there is an increasing demand for foreign domestic workers, what has the Ministry done in order to promote local industry services to fill this gap?”
“Mr Speaker, Sir, I think the Minister has missed my point. My point really is not that we should encourage people to use the Medisave flexibly and freely, but that for life-threatening procedures, such as angioplasty, there should be some flexibility to let the individual decide, if he has enough Medisave savings that he wants to use for that purpose, without too much restriction on the use, ie, for life-saving procedures, not just any frivolous kind of procedures.”
“My question is: would the Minister also take into account in the review the point that when someone has enough Medisave savings and he wants to use it for a stent and angioplasty procedure which is expensive and he thinks that it is useful for him, then he should be given some flexibility to take care of his own interests, although I understand the basic premise of some of the principles there?”
“Mr Speaker, Sir, I understand what the Minister is saying. I hope that in the review the Minister would also take into consideration this point that while the Government wants to try and persuade people to be prudent in the management of their hospital bills ---”
“What we have in the Ministry of Health is a procedure by which we review what are considered standard treatment, standard devices and standard drugs. These will be subsidised and these are the kinds of things for which we will allow Medisave to be withdrawn. Medical technology changes very rapidly, and there will be non-standard procedures, non-standard devices and non-standard drugs. So, how do we address this? We could take a very strict approach and say, "If they are non-standard, they will not be allowed in our hospitals. If you want, you will have to go to the private hospitals." Or we could take a more liberal approach and offer the patient some choice, eg, "This is the standard that we will subsidise and will allow Medisave withdrawals, but if you want a non-standard drug or non- standard device, then you will have to pay the full cost of that", in which case, we must make sure that there is proper financial counselling and that the patient understands what he is in for. On the ground, with thousands of such operations, there could be lapses, and there will be the kind of cases that the hon. Member raised, ie, where the patient may not understand that by selecting a particular stent, he is selecting a very expensive one that costs $6,000 and, later on, when he has to pay for it in cash, he then finds that he cannot afford it. This is the kind of issue we have to address. We are reviewing this and we will lay out the parameters sometime next year.”
“I would like to ask the Minister whether the review, where the payment will be based on diagnosis-related illnesses, will still be subject to a maximum claim amount. The Minister did mention that the costs of the stents vary. To my knowledge, very often, the patient does not have enough understanding to know what the cost of the best kind of stent that is necessary for an angioplasty procedure is and, therefore, would take advice from the doctors. So, the cost of the procedure and the stent is something that is very much not within the control of the patient. Could the Minister therefore consider that point as well? Mr Lim Hng Kiang: Mr Speaker, Sir, the hon. Member has raised three related issues. The first issue, as I explained, is the way we structure the withdrawal limits of the claims. Today, it is a very blunt instrument where we have a table of operations with seven categories. When we change over to the DRGs next year, this will be a more responsive system, with over 600 categories. So, the claims will be more related to the type of medical treatment undertaken. But that alone will not solve the problem. The second issue is what is the withdrawal limit that we allow. As long as we have Medisave, which is a compulsory savings scheme, it cannot be a free-for-all. So, the Ministry will continue to set some kind of a maximum, because the whole idea of Medisave is to be able to provide savings for the future medical needs, especially when one grows old. So, we cannot allow free use of the Medisave. There will continue to be some limits. Of course, we will review these limits regularly to make sure they keep up with the medical technology and changes in medical procedures. The third issue is how do we address very expensive medical devices and medical technology.”
“Sir, in view of the fact that we have a very high unemployment rate now of 4.8%, I would like to ask the Minister what mechanism is in place right now in the Ministry before approving any work permit applications, to ensure that the employers actually exhaust all possibilities in recruiting local employees who are Singaporean workers first? I feel that there could be a possibility that there could be abuse, in the sense that employers look to foreign workers as an easy alternative, instead of exhausting all avenues and possibilities, in terms of trying to redesign work, or in terms of trying to retrain workers before resorting to foreign workers.”
“Sir, when the GST increase proposal was made, I think one of the assumptions was that the economic situation will be much better next year. In view of the scenarios that have just been painted and the fact that the economic situation and outlook next year will still be quite uncertain, will this not form the basis for the Government to consider deferring the GST for at least a few months?”
“Sir, could the Minister tell us what is the amount of investments that has been committed for next year, and how does that compare with this year? Secondly, based on what he has just described for our economic outlook for next year, what is the Minister's assessment of the impact on jobs for next year?”
“Perhaps, I would also go and visit them, when I need dental treatment. Mdm Deputy Speaker, in conclusion, I agree with the Motion that we should examine all ways to ensure that our local SMEs stand a chance and can benefit from Singapore's economic growth. I do not think that the debate should be about either promoting GLCs or SMEs, but rather on how both can partner each other and compete in the global economy. Both have a role to play, and they can certainly complement each other in order to promote and strengthen the Singapore brand. Most certainly, NTUC cooperatives will and must continue to play the role of a social leveller and guardian of the interests of the vast majority of Singaporeans who have benefited from our presence in the market.”
“It has helped to mitigate the effects of a widening wage gap as it helps to level up workers. Madam, NTUC empathises with the problems faced by small retailers. Without sufficient economies of scale, they will find it difficult to operate. However, it is unfair to place the poor prospects of small neighbourhood retail shops on the growth of NTUC cooperatives. In the absence of NTUC cooperatives, small retailers would face the same competition by other big retailers, including the foreign ones. Of the supermarkets, only Sheng Siong and PRIME are owned by Singaporeans. The rest are foreign owned. We do not think that dismantling NTUC cooperatives would improve the position of SMEs, or that it would promote greater innovation and entrepreneurship among local companies. There are clearly many other factors that are at play, such as access to capital expertise and size which affect the growth of our local companies and not because of the presence of NTUC cooperatives or NLCs. Mdm Deputy Speaker, someone has suggested that some of our cooperatives are too small and have little impact. In this case, is the answer not to grow bigger, to develop the clout? But if we do so, then we will be accused of crowding out the local companies. Even so, a small player, such as Denticare, exerts an influence. Denticare executives have been asked from time to time to raise their prices so that other dentists can follow suit. Does Denticare crowd out other dentists? It cannot be so, as the people in Denticare are themselves dentists. If other dentists wish to compete with Denticare, they are free to grow together and offer the public prices lower than the table of rates set by the Singapore Dental Association. There is nothing to stop them. And the public would applaud them, and so would I.”
“Since 1999, we have been publishing a set of social indicators together with our statement of accounts. This is an example of the transparency requirement, which was mentioned by Mr Inderjit Singh earlier on. Just as companies account to shareholders each year, in terms of equity, we publish social indicators to show that we are not just businesses, but that we believe in social responsibility and will do our part to help improve workers' lives and ensure that their basic needs are met. Although our cooperatives belong to the workers and unions, shareholders do not profit from our cooperatives. In fact, under the Cooperative Societies Act, the maximum rate of dividends that cooperatives can pay is capped at 10%. This means that whatever benefit is reaped by the cooperatives, these are largely ploughed back to consumers and society. Madam, I am proud to be associated with socially responsible employers who care not just for their bottomline, but also enlarge their role to care for the community. Cooperatives can serve as a check against the excesses or failures of the market. They are bound by their admission, values and traditions to consider the wider interests of society. Each and every cooperative that the labour movement has set up is founded upon a clear social objective. For example, NTUC Income was set up in those days because there is no insurance company that is prepared to provide low cost, low premium insurance coverage for workers. NTUC FairPrice was set up in those days because there was rampant inflation and profiteering, and that was eating into the hard earned cash and money of the workers. The presence of our cooperative movement has contributed towards social stability.”
“In fact, NTUC also appoints prominent businessmen on the board of NTUC cooperatives and many have, to their credit, willingly served on our boards which have benefited not only the NTUC cooperatives but, in many ways, have contributed towards a conducive industrial relations climate, as such co-option of business leaders has provided the opportunity for business and union leaders to integrate and understand each other's position better. The fact that many prominent businessmen agree to serve on our boards indicates that they too subscribe to the social objectives of NTUC cooperatives and want to contribute towards this larger community objective. Madam, NTUC cooperatives are truly mass movements and we play a social role by providing real and tangible benefits to Singaporeans. During good times, the NTUC cooperatives moderate cost increases by setting benchmark prices. And during bad times, they help workers tide over the difficulties, such as the 1998, 2001 and 2002 relief packages. In fact, they collectively provided $26 million in relief package in 1998 and $52 million in relief package in 2001 and 2002. NTUC cooperatives are not set up for profits alone although, in order to stay viable, they have to be profitable so that they can continue to contribute to society. Wherever possible, NTUC cooperatives also strive for win-win strategies by working with small businesses to help them grow. For example, FairPrice and Healthcare work closely with small retailers through their franchise schemes. Madam, recently, the cooperatives, such as FairPrice, Foodfare, Healthcare and Childcare, have also announced their commitment to help cushion the impact of the GST increase on Singaporeans next year.”
“The priority of NTUC cooperatives must be the ordinary consumers, and the 400,000 or so Singaporeans, many of whom are low income workers, who collectively own the cooperatives. How many of our workers could afford to invest in companies and hold shares on the same basis as their management counterparts, or better-off Singaporeans? NTUC cooperatives will be measured by whether they have helped to make a difference to the lives of ordinary Singaporeans. Our responsibility is to help workers stretch their hard-earned dollar and improve their quality of life. Madam, in fact, our NTUC cooperatives too face intense competition from major foreign retail chains many times their size. It also has to contend with business alliances by private sector players. Since the 1980s, for instance, FairPrice had to tender for sites in open competition. In new suburban malls, FairPrice would not get a chance to even put in competitive bids, as some developers prefer to award the tender to supermarket operators with whom they had special relationships. Residents, as Prof. Koo Tsai Kee has said earlier on, have complained to their MPs when they do not have an NTUC FairPrice outlet near their home. This is clearly evident that people, ordinary Singaporeans, average workers, support the idea of cooperatives and find them useful and meet their needs. Madam, it is true that NTUC appoints some Government Ministers, Members of Parliament and Government officers on the board of directors of our cooperatives. But this is to enable our cooperatives to benefit from the experience and expertise and, not as implied, to gain any undue or unfair advantage compared to other businesses.”
“Rather, of greater significance to us is whether such companies create jobs, incomes and bring in new technologies and skills, in other words, whether more jobs are created through such investments and whether these are well-paid jobs. Madam, it is a fact that, overall, GLCs and MNCs provide greater job stability to our workers and offer more attractive terms of employment. This is because they are generally bigger, have more resources and are more professionally run. In my view, promoting GLCs need not be at the expense of SMEs. In fact, there is no guarantee that pulling our GLCs from certain sectors would automatically result in a mushrooming of more and stronger SMEs. What may happen, instead, is that the vacuum would be very quickly filled up by bigger, more competitive and globally-savvy foreign competitors. This is evident by looking at the retail sector. In Thailand, for instance, the competition comes not from the State-owned enterprises but big foreign retailers, such as Carrefour and Taxco. There are local companies, but they are weak and not competitive. In Taiwan, the supermarket scene is all foreign, with Carrefour being the biggest. Madam, let me come to another point which has been raised by previous speakers. I think it is unfair and unwise to brush the NTUC companies in the same stroke as other private enterprises. In the first place, NTUC companies are, in fact, cooperatives set up by the workers. The capital for each and every one of our cooperatives comes from shareholders which are our trade unions and individual members. Hence, these cooperatives belong to the unions and workers, and not the Government. We do not receive Government funding or capital to set up any one of our cooperatives.”
“But of greater significance is the issue of how Singapore companies, whether they are GLCs or SMEs, can compete in a very competitive world economy which has become even more aggressive with the admission of China into the WTO. Recently, with my colleague, Mr Nithiah Nandan, we led the SLF model workers delegation to Shanghai and we visited the Philips optical storage factory there. The plant's General Manager, who briefed us, told us that the operating environment in China is very flexible and fast, and there is good support from the authorities. The factory was sited on a huge piece of land and the huge factory took only one year to build with the workers working round the clock come rain or shine. He said that in Europe, it would have taken two to two-and-a-half years to build a similar factory. The education system, according to him, is good and among the non-production staff, almost 90% are degree holders. And of these, 15% are PhDs. Among the production staff, the average level of education is at least upper secondary education. The point I wish to make is that, instead of debating about how GLCs are crowding out local companies and to add to that, I must add NLCs, a new term that has just been developed today, perhaps we should concentrate more on how GLCs, NLCs and SMEs can partner each other as one united force to compete in the international market and to be more efficient and productive domestically. From the workers' viewpoint, what is important is not so much whether companies operating in Singapore are GLCs, SMEs, or foreign-owned.”
“Madam, I wish to thank you for giving me the opportunity to participate in this debate. And in fact, I would also like to thank the movers of the Motion, my parliamentary colleagues, Mr Leong Horn Kee and Mr Inderjit Singh, for tabling this Motion. In doing so, I think they have provided this House with a great opportunity to debate on a topic which is obviously of great interest to Singaporeans and which is also important for our future growth and development. Indeed, I have listened very carefully to the comments and viewpoints made by the speakers before me on this issue. Generally, I do not disagree that we must help our local enterprises to develop and grow. And to this end, we should examine existing schemes, policies and regulations to determine whether there are any impediments standing in the way of full participation by our SMEs, of which we place them at an unfair disadvantage compared to GLCs and MNCs. In this respect, the recommendations of the EISC should be seriously looked at and the Government should seriously consider implementing useful and practical suggestions that will strengthen our economy and make Singapore even more competitive globally. I am all for a level playing field. But I believe that we should not have protectionist policies, not only for GLCs and MNCs, but also for our own SMEs. As such, protectionism will not, in the long term, help our domestic industries to be resilient and to compete globally. Madam, having listened to this debate, I am not sure whether we are identifying the issues correctly. There is a tendency to compartmentalise GLCs and SMEs into different boxes and to assume that one can only grow at the expense of the other. To me, the issue is not whether GLCs should be competing with SMEs.”