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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“My point is that there must be a definite attempt and there must be serious efforts made to redesign jobs. And we need to redesign jobs to take care of these three areas: one, the aging workforce; second, to redesign jobs to take care of the poor image in some sectors; and, third, to redesign jobs to enable more women to get into the labour market and, therefore, to supplement the family income.”
“In this respect, MOM could even consider coming out with guidelines on what constitute good human resource management practices, one indicator of which could be whether or not an employer has imposed a non-job related requirement for employment. I would appreciate the Minister's reaction on my suggestion.”
“I am aware that there are fussy workers but, on the flip side, there are also many discriminatory employers although the older worker may be prepared to take lower pay, work shifts or work in 3D jobs. A unionist in the banking sector told me about a retrenched bank worker who went for a job interview, but was told that he did not qualify because he was simply too old, despite the fact that he was prepared to take a huge pay cut. 6.15 pm I am aware of the People-for-Jobs Traineeship Programme, but this programme appears to have limited reach and application. So my second question to the Minister is whether there are ways of enhancing this programme to strengthen its reach and application. Also, whether there is a way that we can facilitate employment for our older workers in some jobs in the non-trading sectors, for instance, in the schools, hospitals and other Ministries. I remember in the early days of Singapore's development, we did reserve hawker licences for the needy and poor. The objective then was not just economics, but social considerations also played a part. It may not be necessary for the Ministry to outsource some jobs, which many Ministries are currently doing, probably to save cost, when these jobs could then be left for the older workers to do. My third point is that no matter how much we train people, if employers still insist on imposing non-job related conditions for employment, such as language, then it would be difficult for those retrenched to find employment. Hence, I would like to suggest that the Minister consider putting in place a more proactive mechanism to enquire into such practices, and to do more to educate employers not to impose non-job related requirements for employment.”
“Sir, there are many training schemes in place to assist the unemployed workers, generously funded by the Government. In fact, in this year's budget allocated to MOM, a high percentage, 28%, I note, will be allocated to lifelong learning, skills upgrading and other training programmes. However, based on the feedback which I have received, individual workers still find it difficult to find out what programmes are in place and are confused on the objectives of the different schemes, as well as how they are funded. Also, those wishing to prepare themselves for other jobs because their own jobs are at risk do not know where to find such information. Hence, there appears to be a gap between the information on training and other labour market information that are available and workers' understanding and knowledge of it. I am aware that MOM has set up a website to assist workers called CareerLink. But, Sir, we have not reached the level yet where everyone in Singapore is IT-literate so that they can easily access such information. My first question to the Minister is what more can be done to ensure that important labour market information, such as training, job opportunities and new job areas are accessible to all workers. Sir, secondly, there is a need to link training to jobs. If people still cannot find jobs, even after they are trained, over time, they will get very disillusioned and the value of training and skills upgrading will diminish. This is particularly problematic for older workers because of employers' strong bias against them. No matter how well-trained the older worker is, he may not be employed simply because of his age.”
“We recognise Mr Heng's point that in this modern age, data mining is very commercially lucrative but it is not the intention of Government having access to this data from the people to make use of this for commercial purposes. Our main focus is how to provide better service to the people. 4.00 pm”
“In a liquidation process, the company has gone bust and you want to distribute the assets and there is a clear order of ranking to distribute the assets. In a judicial management process, they are still hoping to revive the company. The judicial manager is appointed and his task is not just to wind up the company and distribute the assets. His primary objective is really to revive the company and get it started so that the employees continue to have jobs. Under such circumstances, the focus is not on how to distribute your assets, but really how to get the company going again. Because of this objective, the Act is framed in such a way that we give more flexibility to the judicial manager to reorganise the company and rearrange the liabilities and the assets in such a way that the company can be revived as a going concern. So I hope the workers understand the objectives of judicial management. Mr Heng Chee How raised the issue about data confidentiality. I agree entirely with him that any data which the Government agencies have obtained should be treated confidentially, whether this data is obtained through IRAS, or through the hospitals, or through MINDEF. But at the same time, we must recognise that we do not want the Government to develop into silos that every department and every Ministry and agency collects its data and refuses to share its data with other agencies. If we do that, then I am afraid the level of service provided by the Government will deteriorate. So the question is: how do we strike a balance? And within the civil service, we have very strict rules and a set of principles of how we maintain data confidentiality but at the same time we do share information across Ministries and across agencies so that we provide a better public service.”
“But we have this stable of very good companies, good leadership, good management, so how do we transit? Some we will keep for strategic reasons and others we will gradually divest to the private sector. The challenge is to find investors and, more importantly, management teams to lead these entities. We agree entirely with Mr Inderjit Singh that these GLCs should move out of their comfort zone, that they should go regional or global, and that they should observe strict corporate governance in the way they operate. We subject them to very strict financial targets and goals and the Government has a role as a shareholder, through Temasek, to make sure this happens. As to the management of these GLCs, we leave it to the individual companies and Temasek to pick the best people for the team. We do not run a system where we parachute civil servants, or ex-SAF officers, into these companies. It is up to the companies, it is up to Temasek, they evaluate these people on their own merits. If these people are suitable, then they recruit them. Similarly, the boards running the GLC companies, again, the GLC companies and Temasek ensure that the board is a good board that can lead the company. There is not a very high percentage of civil servants on the board. It is less than 10%. The GLCs and Temasek now make a deliberate attempt to bring in foreign talent into the board. Currently, the boards of our GLCs are largely made up of private sector people who serve on these boards. Mdm Halimah asked about the employee's rights during a judicial management process. I would like to explain that the liquidation process and the judicial management process are slightly different.”
“It is very difficult for us to compel or incentivise the commercial banks. They must be allowed to do so on their own commercial calculations. Among the various banks that we have, some would take this up as a niche market, that the SMEs is the sector worth servicing, no doubt it is higher risk. But if you build up a core competence and domain knowledge of the SMEs, this is an area where you can do well and be competitive. We should leave it to the commercial banks to respond to the commercial needs of the SMEs. As to the specific suggestion about banks which are set up just for SMEs, like what they have in Hong Kong the SME Loan, this is something that we would definitely explore. Basically, MAS would facilitate or encourage such financial entities to Singapore as long as they meet the MAS' regulations. Mr Inderjit Singh's other suggestion about the bulletin board is also a good suggestion. We would ask SGX to look at his proposal. Basically, both the Mainboard and Sesdaq, the rules for listing and the rules for raising capital are already fairly liberal. But if there is scope for a bulletin board which allows other companies to raise capital, in principle, we do not see any objections to it. If it is viable, we will allow this to be operated, again as long as they meet the MAS' regulatory requirements. The final segment is on the GLCs and the role of the GLCs. I am much encouraged by Mr Inderjit Singh's preamble about the GLCs. Again, as DPM said last night, most of the GLCs we have grew because of our developmental history, because of the way Singapore developed. As a matter of principle, we will be much more reluctant now to ask our statutory boards, or our departments, to build up new companies.”
“So The Enterprise Challenge was set up in March 2000. This is a $10 million fund and so far it has sponsored 32 projects with the private sector accounting for 13 of these projects. To recognise innovation, The Enterprise Challenge also recently created this $1,000 Innovator Award which is given to every approved project for test bedding. So it is an idea that we will definitely pursue further. The next set of suggestions from Mr Inderjit Singh is on how to plug the various gaps in our financial environment. All the suggestions are very good suggestions. We will definitely evaluate them. I would just like to make a few short comments. By and large, whether or not we use Temasek as a vehicle to provide this financing of risk capital - that has been addressed by DPM last night - basically, our approach is that Temasek is the holding company for the Government's equity investment in companies and it must operate on commercial principles. So we should not ask Temasek to do national service. If it is a public policy to encourage or provide, or to seek some of this type of money for financing, then this ought to be done by the Government, through the statutory boards, or through the various agencies within the statutory boards. So that is the first principle. Having said that, you will realise that Temasek has a company to invest in venture capital fund and that, as DPM explained last night, together with what EDB is doing, is really to provide the seed or the catalyst. And once we kick-start the venture capital sector, we will expect the private sector to be on its own. The other suggestion which Mr Inderjit Singh raised is about encouraging or compelling the banks to provide loans based on cashflow principles, rather than on collateral or guarantee.”
“That component reflected the central Ministries - Ministry of Law, Ministry of Finance and also Organs of State - and within that big element, there is also a budget set aside for land reclamation under the Ministry of Law. That explains the 5.6% of GDP. By and large, if you look at the Singapore Government expenditure, our operating expenditure at 10% of GDP is one of the lowest among the developed countries. But that does not mean we are complacent. It is just to give you a benchmark that we are very conscious of the level of spending within the Government, and we will keep this as low as possible. Mr Inderjit Singh also suggested that even though we strive for the lowest tenderer in all our procurement procedures we should sometimes facilitate the development of the SMEs. He knows that we are doing so in a limited way, although we do insist on proper procedures in calling of tenders and the awarding to the lowest tender. We do allow public sector agencies to contract start-up companies with no company's track record for IT and technology projects of up to $5 million. So in normal tender procedures, if you do not have any track record, you will be disqualified. But we do recognise that in such areas, if you want to encourage a start-up, then you should give such companies a fighting chance and therefore we waive the need for a company's track record. Mr Inderjit Singh also suggested a test-bed for projects so as to give these companies a leg-up in their development. He acknowledged that we do have this entity called The Enterprise Challenge which provides sponsorships for test bedding and we try to identify suitable pilot test sites. Whether the idea comes from the public sector, or the private sector, or the people sector, it really does not matter.”
“45 pm So, I do not think the issue is whether the name is retained. I think the issue is that when they privatise, we deal with them at arm's length and that they compete fairly and without special privileges. If you look at it from the perspective of the other Government agencies which are being served by PWD, they have all these years had an inhouse consultancy department. When we privatised PWD, we also want to make sure that the various Ministries running the school programme, the road programme and the various other infrastructure and building programmes, are still getting proper service, and therefore this moratorium period allows all the various Government agencies to be assured that when the whole thing is opened up, they still have the service which they originally enjoyed from inhouse but now by PWD Corp. Anyway, this is only for five years and after that, it will be free competition, and all the projects will be awarded based on merit and open tender. The situation is similar for PSB Corp. As I have explained earlier, it started off as an inhouse training for productivity education and for the productivity movement. Having built that up, do we destroy the value, or do we privatise it? And as we privatise it, why not allow them to keep the name "PSB Corp"? Mr Inderjit Singh also asked for Government to be lean and to emphasise on productivity and efficiency. I think that is indeed our intention and the civil service has been in the forefront of many innovative changes to make the Government more efficient and more productive. Mr Inderjit Singh questioned the 5.6% GDP spending on Government.”
“From the private sector perspective, having PWD going out to the private sector means more competition, and they are not very happy. The counter-argument is, if we have not privatised PWD, all these jobs that PWD is now doing outside would have been done in-house. So the private sector is not going to get a bigger cake, in any case. But when we privatised PWD, in fact, the moratorium is a limited moratorium. PWD was given the moratorium for projects above $20 million. Anything below $20 million, it is free competition. So when we moved PWD to the private sector, we did not give PWD the full slate of its original mandate. We give them only those projects which are above $20 million, and we say that anything below $20 million is free competition. And the reason why we decided on the cut off at $20 million is because during this period, there is huge development in schools, and most of the school projects and infrastructure projects of that level (roads, etc) are below $20 million. So that gives more work to the private sector. But, unfortunately, of course, in the present decline in the construction sector, one can understand the private sector being unhappy that they only get the $20 million part of the cake. They probably wish to have a bigger part of the pie. If you look at it from the perspective of the people who work in PWD, they have built up PWD for so many years, it is not fair, as Mr Inderjit suggested, that when we privatise such entities, that they should not carry their name. This is goodwill; this is value. PWD has a name. Why should they now adopt a new name and destroy value? It is just like PSA. When we corporatise, and later on we privatise PSA, are you suggesting that PSA should not use "PSA" (the name)? We are just intentionally destroying value. 3.”
“PWD has been around for more than 100 years; PSB, when they first started, we did not have the same equivalent private sector infrastructure and support providing all this training. And when PSB launched the productivity movement, this concept was very new, and to provide the training, they have to do it in-house. Having done so for many years, and having built up the capability in-house, we now realise that this can be better done by the private sector. I think everybody agrees that there is no reason why the Government should continue to have an in-house consultancy department, like the PWD, or that Government should have training courses done in-house by PSB. The question is, how do you move this to the private sector? There are many options. One way is to just close down PWD, even though they may have 100 years of history; or close down PSB training department. But you demolish value in doing so. In the case of PWD, we decided that in future, Government departments will buy services from outside and that PWD should be corporatised and privatised. The question is, how do you transit to that stage? So we decided that, in order not to destroy value, we allow PWD to be privatised. In doing so, we give them a five-year moratorium. So it is not a situation, as Mr Ang Mong Seng described, of PWD setting up a subsidiary and being given a five-year protection. I can understand why some Members have raised this issue because they are presenting the perspective from the private sector. But let me also tell Members there are two other perspectives that we can look at. One is from the perspective of the Government - the other departments which are being serviced; and the second perspective is actually the people who work in this organisation themselves.”
“Again, as Singapore progresses in the area of e-commerce and as we encourage development in this area, the enhancement of our laws in this area would further add to the robustness of our economy. The Second Minister for Finance (Mr Lim Hng Kiang): Sir, first, I would like to take the issue about Government's role in business, an issue that is raised by Mr Inderjit Singh, Dr Tan Boon Wan and Mr Ang Mong Seng. As a general principle, we agree that statutory boards and Government departments should stay away from business. It is not the role of the Government to compete with businesses. As a general principle, we agree with that. But the Government's role goes beyond just regulating the system. So it is not possible to follow what Mr Inderjit says and just ask the statutory boards to stick to regulation. Because the statutory boards and Government departments also do promotion and provide services. Sometimes, in the process of promoting an industry, they need to get involved with the industry. For example, EDB, IDA, they are promoting that particular sector, so they have to get involved in the industry. Other statutory boards provide services. You can either provide the services in-house or you can buy the services from outside. Again, as a general rule, we tell our departments and statutory boards that they should outsource from the private sector. But, on the other hand, our departments and statutory boards also want to be efficient, and if in their calculation, providing it in-house is more efficient, I think we should not stop them from doing so. The two examples, which the Members raised about PSB Corp and PWD Corp, they are a different type of problem. These are departments or statutory boards which have been providing these services for many years.”
“In recent weeks, there have been cases that we see in the media where information provided to certain Ministries seems to have been passed on or related for certain commercial uses, such that members of the public may receive in their mail information about commercial services that originate out of that information being passed on by certain Government bodies to whom the information was supplied in the first place. This gives rise to the concern among some members of the public as to the confidentiality of this information. No doubt, the information is necessary for those statutory purposes for which they are supplied in the first place. And through the use of information technology, there is much to be gained in terms of efficiency through the channelling of this information, and the coordination of this could also save much trouble for members of the public when services are provided to them. The key then would be how best can we further improve on our laws in the area of data confidentiality such that information that is provided by members of the public, by the citizens of the State, could then be dealt with in total confidence, so that members of the public would know that without their express consent, that this information would then not in any way be channelled to parties for which they do not wish the information to be made known. Sir, I also mention this because, with the increasing use of economic value of such information, we have seen in other societies where information purchased through e-commerce have been amassed by companies in the private sector and subsequently sold for economic reasons.”
“For these reasons, I wish to urge the Minister to consider amending the Companies Act to give workers' claims when a company is placed under judicial management preferential treatment, on a similar basis as section 328 of the Companies Act. This last recession has affected many workers badly. Many companies went into liquidation, receivership or are placed under judicial management. Workers' hard-earned salaries should at least be given some priority in these situations, without having to go through the hassle of persuading the judicial manager to secure a court order to pay. In fact, many of these workers continue to work with the company even after it is placed under judicial management. Hence, it is only logical that their claims be given preferential treatment. I would like to urge once again that the Minister consider amending the Act to give workers in companies which are placed under judicial management the same status as those under liquidation under section 328. Mr Heng Chee How (Jalan Besar): Sir, data and information are the lifeblood of an information economy. Singapore is in the forefront in this area. The Government is the repository of much information provided by the public through many of its services that it provides. It asks the public to supply particulars and information about themselves. Sometimes, it is also statutory, such as information that might be provided to various Ministries, such as the Ministry of Defence, for example, for enlistment purposes and recall purposes, and so on. Sir, the value of such information, both to the State as well as to the economy, is immense, and in a knowledge-based economy, this is increasingly so.”
“Sir, under section 328 of the Companies Act, if a company goes into liquidation, workers' claims will be given priority as they will be treated as preferred creditors. This means that their claims for any remuneration will have priority over other unsecured creditors. The same situation applies when a company is placed under receivership. Workers' claims will have priority over unsecured creditors under section 226 of the Companies Act. The rationale for this is clearly to mitigate the hardship that workers face when a company winds up and they are left without a job and without any means of sustenance. However, the preferential treatment for workers' claims does not apply when a company is placed under judicial management. Hence, employees are treated as unsecured creditors for any remuneration which has accrued prior to the making of the judicial management order. This is because employees do not fall under any of the exceptions specified under section 227G (6)(b) of the Companies Act. Section 227G (6)(b) authorises the judicial manager to discharge the debts of certain secured creditors, but workers' claims are not included. In practice, what happens is that the judicial manager would usually seek an order of court to give the employees preferred creditor status with respect to their pre-judicial management claims. In such a case, the payments will be considered as preferred payments made out of the assets of the company. The Court has usually granted such an order but it is cumbersome, time-consuming and actually means that unnecessary costs are incurred which could instead be used to settle the debts of the company.”
“The flat type distribution among these cases is similar to that of new cases assisted during this period, ie, with 3, 4 and 5-room mortgagors accounting for 28%, 42% and 30% respectively of these cases.”
“Sir, can the Minister give us a profile of the families at risk, ie, the families that are involved in such cases? Assoc. Prof. Yaacob Ibrahim: Sir, from the data we have, we see no significant trend in terms of the types of families which are involved. Some cases do not get reported. HOUSING AND DEVELOPMENT BOARD FLATS (Deferment and loan restructuring of mortgage instalments) 3. Dr Amy Khor Lean Suan asked the Minister for National Development (a) what is the number of applications received by the Housing and Development Board for deferment and loan restructuring of the mortgage loan instalment payment since 2001 by size of flats; (b) how have the numbers changed over time; and (c) the number of such outstanding cases also by size of flats. The Minister of State for National Development (Dr Vivian Balakrishnan) (for the Minister for National Development): Mr Speaker, Sir, HDB's existing financial assistance measures for mortgagors in financial hardship include: (i) conversion to a reduced repayment scheme, under which a mortgagor can pay 75% of his normal instalment for a period of five years, (ii) deferment of instalments for a period of 6 months, and (iii) extension of loan repayment period. Between January 2001 and March 2002, HDB received 18,200 applications for assistance under these measures. Of these, only 14 were rejected because these households were not in genuine financial hardship. 3, 4 and 5-room mortgagors accounted for 29%, 41% and 29% respectively of the successful applications during this period. 14,200 of these new cases were assisted in 2001. This compares against 15,000 new cases in 1999, and 10,000 new cases in 2000. As at 31st March 2002, 15,300 of the cases assisted since January 2001 remained active.”
“On this hopeful note, Sir, I thank you and I support the motion.”
“I note the Minister for Health's explanation on this recently, but I am not clear whether the assurance which he had given is in relation to the GST specifically, or whether it was on healthcare cost as a whole. There is also a concern expressed over the proposed means testing of subsidised healthcare. I hope that this will not make it much more difficult for those who are really in need of help to get subsidised medical care. Before I end, Sir, there is one old ghost which I would like to revisit since this is a new Parliament, I think it is only appropriate that we must look at some of the old ghosts and resurrect them for some discussion. The policy which I would like to see changed is the medical benefit policy for female civil servants. I must declare my interest because we do have many female civil servants in our membership in the NTUC. Presently, unlike their male counterparts, family members of female civil servants do not enjoy subsidised medical benefit. With a high percentage of women now in the workforce - we have two women Permanent Secretaries, we have many women Judges, we have several women Lieutenant Colonels - I really do not see why we need to continue with this policy which is quite unsustainable and the rationale for which is becoming more and more murky as we go on. Sir, I certainly think that it sends a contradictory signal about the Government's position on women. On the one hand, the Government encourages and supports women's full participation in the labour force but, on the other hand, it continues to preserve outdated policies. Sir, I am quite sure that the new Minister for Finance is a very progressive, in fact, fair-minded person and that perhaps, this time, we will actually see a change in this policy.”
“IT and computer literacy courses run by NTUC see a larger number of Malay workers attending them. Higher educated Malays are now no longer contented only with basic degrees. Many have gone on to acquire post-graduate degrees and post-diplomas in various areas. Self-help bodies, like MENDAKI and AMP, have also rallied around this cause and have been actively promoting skills upgrading courses. But more remains to be done, as I fear that, as the economy moves into higher gear, there will be more displaced workers. Sir, in this respect, I call upon the community to focus on the key points mentioned in the community of excellence vision outlined by the Minister in charge of Muslim Affairs. They should avoid getting side-tracked by specific issues of how to interpret some of the points made in the vision statement. Instead, focus on the core issues, believe that change is necessary, galvanise all our resources and work together with one heart and one mind. Sir, before ending, I would like to urge the relevant Ministries, statutory boards and GLCs to exercise great restraint before increasing the prices of their services. We are not out of the woods yet. We still have 100,000 people unemployed and, therefore, I think this call for restraint is necessary and pertinent. The recent increase of HDB car park charges by $15 to $90, for instance, has created a lot of unhappiness, because it has also affected the small time businesses and the retailers. The dust on the GST has not yet settled and people are still trying to digest the impact when this increase comes about. Sir, of particular concern to Singaporeans will be healthcare cost.”
“The way ahead for us is to make sure that everyone who aspires is given a chance to be placed on the ladder and, thereafter, he or she decides how fast or how slow he or she wants to climb up the ladder. Sir, the question which I raised at the beginning of my intervention, has been answered. Yes, the 2% GST increase will be painful. But the offset package of measures will take care of the adjustment needs of low income Singaporeans in the short term. And in the long term, the heavy investment in developing capabilities through education and skills training and upgrading will enable all Singaporeans to acquire better jobs and a better life. This Budget is clearly not for high income Singaporeans only, but will benefit all Singaporeans today and in the future. Sir, as we move ahead, there will be serious challenges faced by all Singaporeans. For the Malay community, the challenges will be even more serious. As it is a known fact that the community lags behind others in education and skills upgrading, there is anecdotal evidence to suggest that there are more Malay workers in low-end and unskilled jobs. Sir, there are many training opportunities available and funds is not an issue. The Minister in charge of Muslim Affairs has also outlined a vision for the Malay community. In this vision of a community of excellence, upgrading the skills and employability of Malay workers is a key focus. For this community of excellence vision to take place, there must be a quantum leap in the thinking in the Malay community about the importance of learning and skills upgrading. I must stress that, over the years, we have seen some progress. Many more have enrolled in the various training programmes.”
“An employment contract cannot be treated as purely commercial contracts due to the unequal bargaining strengths of individuals as against companies. In Singapore, we are fortunate to have a farsighted Government that understands these imperatives. We have a comprehensive social safety net in the form of subsidised education, health and housing. And there is heavy investment in human resource development. Although the social contract with companies has weakened, the social compact between our Government and the people has strengthened. I am pleased, Sir, to note that in this year's Budget, 45% of the expenditure will go to social development. I agree entirely with the Minister for Finance that the substantially increased budget allocation for education, health and community development are necessary foundations for a strong, cohesive and resilient society. I believe that without such heavy investment in human and social capital, changes will be more bumpy and there will be greater social disruptions which, at the end of the day, will impoverish everyone. I also note that the allocation for the Ministry of Manpower's operating expenditure has increased by 22%. Of this, the largest percentage, or 28.4% of the total budget allocation of $220 million allocated to the Ministry, will be spent on life-long education and skills upgrading programme. I strongly welcome the Minister for Finance's statement that, despite budgetary constraints, the Government will not stint on its support for workers to upgrade themselves. We are on the right track, Sir. Our priorities are well-placed.”
“Often, Sir, we question whether there is any meaning to the word "loyalty" at all. What is the meaning of loyalty when you cannot even be assured of a job? As the business environment becomes more competitive and companies come under pressure to reduce cost, the social compact with their workers can weaken. Not so long ago, I remember we had a different discussion about loyalty. The debate then was how to penalise job hoppers by forfeiting their CPF contributions if they leave a company after only a short period of service. Today, we have to deal with issues of outsourcing, contract work and part-time work, all of which are on the increase and are temporary in nature. The fact that we are having this discussion shows how dramatic the changes have been. We are no longer talking about how to retain people but instead our focus is now on how to educate and train people to manage frequent changes in jobs and careers. We know that change is inevitable. But we also know that the impact of such changes on Singaporeans will have to be managed, so that those who are affected during the transition will not bear the cost of such changes disproportionately. In a free market and an open economy like Singapore, the Government has a very important role to play. Openness is clearly good for growth and employment. But for such openness to benefit everyone, there must be a comprehensive policy on human resource development and a social floor in the form of effective labour legislation and social protection. This is because labour markets are different from markets for goods and services. Labour markets are about people, their skills and competencies and their aspirations and motivations.”
“We have seen how globalisation has come under attack world-wide. Abating somewhat only after the September 11 incident, the debate on globalisation has not ended. In many countries, people feel that globalisation and free trade have not benefited them. The fiasco in Seattle is a case in point and it is not likely that such objections will disappear if the key issues of inequity are not addressed. The real problem though is not globalisation or free trade. Rather it is the failure of many governments to invest in their people and have an effective social safety net. Without heavy investments in human capital and programmes to help those who are displaced to cope with the transitional adjustment problems, there will be strong reactions to change and the chorus of protest will grow louder. Sir, we, in Singapore, are no strangers to change. Over the last few years, the pace of change has in fact quickened considerably. Many of us have had to revisit our old assumptions and beliefs. Job security and life-long employment no longer carry the same meaning as before. Today, nobody can reasonably expect to retire from the very first job that he or she was employed in after school. Individuals now have to take on the responsibility of managing their own careers and ensuring their own employability. Many companies today do not wait to retrench until they are in the throes of death, but regularly review their cost structure in order to stay competitive. In many ways, individuals now carry more of the risk of labour market downturn and a company's poor performance compared to the past. Workers can no longer afford to remain indifferent to issues of cost and returns to shareholders, as these have a direct link to their job security and wages.”
“Sir, over the last one week, I have been asked many times how I would describe this Budget. Many also asked whether the tax measures would help to create jobs as promised, or is this just a Budget to take care of the rich in our society. These may sound like simple questions, Sir, but there are serious issues which underpin them. This Budget reinforces the shift that has taken place over the last few years in our tax and regulatory systems. It is not something new, as many other countries are also doing the same. Among the OECD countries, for instance, most have been reducing their corporate tax rate since 1990. In fact, concerned by the revenue consequences of tax competition, the OECD has even established a task force to look into the matter, as it recognises that capital mobility opens up the risk of competitive bidding between countries for mobile business. Sir, the key words here are capital mobility. Companies can vote with their feet and will relocate to countries where they can reap the most returns. It is a serious challenge for states limited by geographical and manpower constraints to draw and retain capital within their boundaries. To do so, they have to create attractive tax and regulatory systems. We know that capital mobility is due to a convergence of factors, such as globalisation and deregulation of trade and investment and technological advancement. But, Sir, having an attractive tax and regulatory system alone is insufficient to sustain our long-term progress and prosperity. We can have an attractive tax system, but we will still not be able to attract and retain investments if there is no support for such initiatives, because people do not understand nor appreciate how these measures can improve their well-being.”
“Sir, the Minister has mentioned that PSA is looking into ways on how to innovate its operations, its business, as well as how to share the productivity gains. The situation is now much more competitive. Competitors are giving things like lower rates. They are also allowing a share in the port operations. Does it suggest that PSA has failed to look at all these areas of innovation before? I also want to ask the Minister what useful lessons can other Singapore companies draw from PSA's experience, and what are the implications to workers and management in PSA as a result of this development.”
“Sir, the difficulty most of the foreign workers face after they have been repatriated in making claims is that they are no longer in Singapore. So I think this question of putting up evidence, filing claims, calling for witnesses will not be available to them. Can the Minister give a little bit more information on how the Ministry is helping the foreign workers to make their claims, bearing in mind that these are difficulties that they face?”
“Sir, I would like to ask the Minister what is the assessment of the Ministry of Manpower as to the extent of the problem. I think the real issue here is that people are being employed on a contract for service when actually they are employees. The Minister has mentioned that a survey was done among 2,000 employment agencies. I would like to know what is the extent of the problem in the Ministry's assessment and whether he foresees that this will be an increasing problem, bearing in mind that there are now many more people employed as contract workers. My second question is: what measures are being taken to educate people, both the employers as well as the workers on their rights and obligations under the law?”
“Sir, it has been quite difficult catching your eye. In some way, I hope that we can improve this process of catching your eye. Sir, thank you for giving me the floor. I just want to clarify one point which Mr Ahmad Khalis mentioned just now about retrenchment and the workers. I want to assure Mr Ahmad Khalis and all the Members of the House that when workers are retrenched, we in the trade unions do take great pains to ensure that the retrenchments are not for frivolous reasons. And if we are not comfortable with the reasons for their retrenchment, which we think are not valid, we would challenge it in the Ministry of Manpower or in the Industrial Arbitration Court.”
“On that note, Sir, I support the motion of thanks.”
“The situation will worsen if Malay workers fail to seize the opportunity now and seriously upgrade our skills and qualification level. We have to bear in mind that even after the economy recovers, old jobs will not return. New jobs will be created which require new skills, aptitudes and qualifications. Even a simple manufacturing job today will require the ability for workers to read English and perhaps some Mathematics as well. MOM's statistics have shown that, on average, those without skills find it more difficult and take a longer time to find another job. If Malay workers do not want to end up doing the kind of jobs that are currently being done by work permit holders, then we must treat the President's message as a strong wake up call for the community to urgently and immediately get into action to prepare ourselves for the future. Mr Speaker, Sir, the economy itself is undergoing rapid changes. From now on, the race will assume a completely new dimension. It is no longer even a brisk walk but we have to actually run in order to achieve not a higher level but perhaps even a lower level of growth, compared to previous years. This is the real challenge for all Singaporeans. The President's Address has highlighted many issues and challenges. I would like to urge all Singaporeans to study these carefully and consider the impact on Singapore and on our lives. They should guide us as we plan and prepare for the future. Mr Speaker, Sir, in conclusion, I wish to call upon all Singaporeans to rally together, stand united. Although we may have different views and approaches, we should be prepared to defend what we hold sacrosanct and dear to us as an independent nation - values, such as meritocracy, multi-racialism and help and support for the poor and less able.”
“This is very much like the discussion that has taken place in the Chinese community and the strong sense that Mandarin is critical in ensuring that Chinese Singaporeans retain their cultural and traditional linkages. Lest I give an erroneous impression, Sir, let me assure Members that these concerns of the community have not resulted in a withdrawal, rather Malay Muslim Singaporeans have participated actively in Singapore's development and nation-building process and have benefited from it. The median monthly income of Malay workers, for instance, was $954 in 1990, but has increased to $1,790 in 2000. But I think that it is important that we understand what are some of the concerns and stresses that affect the Malay Muslim community, so that there will be a more meaningful and effective dialogue process when we discuss issues and formulate responses. Sir, the Malay Muslim community can carve a very strong niche for ourselves provided we continue to invest heavily in education and skills upgrading. A critical factor will be in creating a conducive home environment where parents provide adequate supervision over their children's activities and a learning environment. There is clearly greater scope for parents, schools, Ministries and organisations to cooperate on this. Sir, an equally important issue that we must focus on is the impact of the economic restructuring on Malay workers. As there are more Malay workers in the lower end jobs and in certain sectors, such as manufacturing, Malay workers have been affected quite badly as a result of the recent downturn, and will continue to do so as the economy restructures and goes into even more higher value-added activities.”
“A review of the Employment Act will not be complete without a review of the other labour legislation as well, in particular the Trade Unions Act and the Industrial Relations Act. I call upon the Ministry of Manpower to consider reviewing these laws as well. In particular, for the reasons mentioned earlier, it will be opportune to assess whether there is a need to restrict the scope of unions' coverage so narrowly to only those with employment relationships. As I have mentioned, as more and more people are employed as contract or portfolio workers, we have to look at this aspect of covering them as well, in relation to our social security legislation, in this instance, the CPF Act. Mr Speaker, Sir, the President's statement that the Government will protect the minority communities, their cultures and their ways of life is most reassuring. At the same time, the President has called upon groups to adjust and compromise in order to live harmoniously in a multi-racial, multi-religious society. This is a timely reminder as events around the world show time and again just how precarious racial relations can be. Sometimes people of different races and religions that have co-existed peacefully for many years could fall apart when certain events take place. Mr Speaker, Sir, Malay Muslims in Singapore are in many ways at the crossroads. Globalisation and modernisation have brought about new opportunities but also cultural changes that have caused some concerns in the community, fearful that this would erode its values. There is therefore a greater fall back on religion to provide the ballast and counter what are perceived as negative influences.”
“Secondly, the present restriction which allows only employees, that is, non-manual workers earning not more than $1,600 to benefit under the Act, is unrealistic as income levels have risen over the years, and the Act runs the risk of covering an ever shrinking base of workers. We should work out a mechanism that will be self-adjusting so that the salary ceiling can move automatically. Thirdly, the Act covers only those employed under contract of service. Increasingly, there will be more portfolio workers or those employed under contract for services. Such portfolio workers may not be formally classified as employees but their relationships with companies retain a major component of an employment relationship that is dependent on the user company and brings to the contract only their own labour or expertise and nothing else. So, even if there is a review of the income ceiling, as more contract or portfolio workers are employed, they will fall outside the ambit of the Act and will not have the protection of the Act. It is therefore imperative that we review the scope of this legislation to ensure that enough numbers of workers are covered under the legislation. The laws of many countries extend coverage to all workers, regardless of whether there is an employment relationship. In this respect, the UK's Trade Union and Labour Relations Consolidated Act of 1992, for instance, defines a worker as someone who is employed under a contract of service or a contract for service. Likewise, the position in Japan where under both the Labour Standard Law and the Trade Union Law, a worker is defined as a person who lives on his wages, salaries or other remuneration, regardless of the nature of his employment contract.”
“The traditional lifelong employment model that characterised the industrial era is now increasingly being replaced by contract, part-time and temporary work. In Japan, about 23% of those employed are in this kind of work. In the Netherlands, it is 37%; in the United Kingdom, 24%; and in Korea, almost 50%. Singapore is no exception although at present the number is still small. A key employment legislation is the Employment Act, which was passed in 1968 during the first phase of our industrialisation programme. It was one of the most progressive pieces of legislation of its time. Many of the aspects that other countries are grappling with today and are trying to include in their labour laws, causing much industrial strife in the process, were already included in our laws at that time. Key among these is discipline at work and labour flexibility, but with clear basic protection for workers. Mr Speaker, Sir, whilst the overall framework of the legislation remains very much relevant today for the reasons I have mentioned, refinements are necessary. Our economy has shifted from being labour intensive to capital intensive to one which is increasingly knowledge intensive. One critical area of review would clearly have to be the scope of coverage of the Employment Act. There are three issues here. Firstly, the Act makes a distinction between workmen and employees. But as we can no longer classify jobs so neatly into manual and non-manual, the underlying rationale for the distinction, it will be increasingly difficult to implement.”
“So, quality and pricing of medical services impact on the accessibility of health care in Singapore and remain a key concern of Singaporeans. I therefore urge the Ministry of Health to ensure that medical services continue to be affordable and within the means of the average Singaporean. I also call on the Ministry to ensure that all existing hospitals, as well as the two new ones that are being built, contain enough C class and B2 wards to take care of the needs of the low income. Mr Speaker, Sir, on the Ministry of Manpower, I support its mission and objectives wholeheartedly. Tripartite cooperation and industrial harmony have been the cornerstone of Singapore's industrialisation strategy. Many countries envy our good track record and many have studied our system in an attempt to duplicate it. Our unique system has functioned well because the Government treats employers and trade unions as social partners. Trade unions are consulted not only on issues affecting workers but also on economic and social policies. This has provided us with an effective channel to voice workers' concerns and aspirations and to play a significant role in Singapore's progress and development. If trade unions had been ignored or marginalised, as it is happening in many countries, I am sure that we will have a completely different outcome today. We, in the NTUC and the trade unions, will continue to do our part to ensure Singapore's competitiveness, focus on jobs, articulate workers' concerns and ensure a fair distribution of the rewards. Sir, I also support the call for a review of our employment regulations to ensure their relevance. Tremendous changes are taking place in the world of work. Employment relationships are being redefined.”
“In this respect, the Ministry of Finance's aim for a modest budget surplus over this financial year so that it could deal with the social challenges of economic restructuring and ageing population in a sustainable way is greatly welcomed. This is an important policy consideration, as I note that the President had also mentioned that taxes should be kept as light as possible to provide incentives for corporations and high-income Singaporeans to work hard. If there are changes, I do hope that adequate measures will be put in place to help our lower-income Singaporeans to adjust. It is my strong belief, Mr Speaker, Sir, that long-term economic development is only sustainable if it is also complemented by an effective social development programme. For most Singaporeans, education and health care are key concerns. In this respect, I note in the Addendum of the Ministry of Health that the Ministry intends to introduce a selective means testing to ensure that health care subsidies which are targeted for low-income groups actually reach them. While I welcome this move, as it can weed out undeserving cases, I would also like to advise caution in its implementation so as not to result in a system which is very rigid, and make it difficult for people to enjoy the subsidy. Means testing of public assistance programmes is a difficult issue. While the intention is to assist those in need, and income level is one yardstick, too much procedural red-tape can cause delay and frustration and limits access to what many Singaporeans would consider as basic needs. At the same time, a lot of middle-income Singaporeans also need help, as health care cost has been rising and medical treatment can cause a squeeze on their finances as well.”
“Mr Speaker, Sir, I rise to speak in support of the Motion of Thanks moved by Mrs Lim Hwee Hua. Mr Speaker, Sir, I wish to join the other speakers before me in congratulating the President for a significant and comprehensive speech touching on issues of national security, economic survival and social cohesion which deeply concern all Singaporeans. I also welcome the President's reminder on the need to engage all Singaporeans, including those who disagree with specific Government policies, so long as they have Singapore's interest at heart. I agree that there is no monopoly on wisdom and those who are not represented in this House or who do not agree with us must still have a role to play. So I would like to encourage all Singaporeans to come forward and participate actively in debating policies and contributing ideas. Cynics and sceptics should dispense with their judgements and allow this maturing phase of our political process to develop. Mr Speaker, Sir, we face serious challenges as we move ahead. So we need to bring everyone on board in our quest for better solutions and ideas. It is my belief that we stand a much better chance to succeed if there is a greater sense of involvement and ownership of the changes that take place which affect all our lives. We share a common destiny and whether or not we reach our destination rests in our hands. Mr Speaker, Sir, I note the President's concern that as we restructure our economy, there will be dislocations. And I completely agree with him that we have to intensify efforts to help lower-income and low-skilled Singaporeans.”