Heng Chee How
Singapore
“And in the case of overseas training, then there will be specific link-ups into the systems of our overseas partners, for example, if there is a need to further send the injured NSman to the local hospitals for more specialised treatment, that, too, was all planned in as well in terms of the protocols.”
“In addition to conducting regular exchanges with their professional counterparts, SAF personnel in our overseas training detachments participate actively in local community life and contribute back to the local communities, thus contributing to the strengthening of bilateral ties.”
“Mr Chairman, I thank Mr Giam for his question. The NS allowance, the nature of it, it is in a form of honorarium and for that, CPF is not payable. However, I just wanted to emphasise two points. One, within the NS journey, they are actually eligible for NS HOME Awards, which are paid out in the course of the NSmen's journey.”
“Mr Chairman, as we look forward, MINDEF/SAF’s commitment to NS and to our NSmen remains steadfast. We will continue to enhance the NS experience, maximise the contributions of our NSmen, and strengthen recognition for their service.”
“Mr Speaker, we have shown care for our older workers as a Government, as tripartite partners, not only in words but in deeds. As a result, we have made very substantial progress for our older workers, often bucking global trends. The environment we must deal with will be increasingly challenging.”
“Ultimately, fighting age discrimination is not only a legal matter nor is it just a moral imperative. It is also an economic necessity that will help sustain long-term prosperity for all.”
The complete record
Every one of 862 lines we hold for Heng Chee How, in date order, each linked to its source. Free to read, in full, without an account. Page 7 of 18.
“Madam, with an ageing local workforce, it is critical that proactive actions be taken to strengthen employment and employability. For Page: 91 employment to take place, there must be a job and there must be a suitable worker. One key question to be addressed is whether jobs in Singapore are sufficiently ageless or age-neutral. The less age-neutral jobs are, the higher the incidence of mature workers not being considered capable of doing them. Conversely, the more we are able to render the jobs age-neutral, the more we can accommodate the continued employment and re-employment of mature workers without turning that into a cost or performance concern for companies, or a tall order for mature workers. Experience and ground feedback suggest that there is much scope for rendering jobs and work processes in Singapore much more ageless so as to achieve age-barrier free access. Three reasons are often cited for the relative lack of action in this area. First, is the unwillingness on the part of companies to redesign jobs or work processes. There is much inertia in entrenched systems and there is a tendency to fix the jobs and look for people who fit the jobs rather than to dynamically evolve jobs to maximise the fit with the largest possible pool of workers. The second is money. Companies also cite the cost of such redesign, whether in consultancy or implementation, to be a hurdle, given intense, ongoing competitiveness pressures and the complexity of grant-seeking. Thirdly, companies cite a lack of know-how in this area. The knowledge gap reduces the likelihood of companies taking action to improve in this area. Madam, MOM has introduced, among other schemes, WorkPro, part of which is to incentivise companies in the area of workplace and job redesign toward agelessness.”
“Mdm Chair, under the Retirement and Re-employment Act, a mature worker reaching age 62 is eligible for re-employment. Where disputes occur between such workers and their employers, they may notify the Commissioner of Labour (COL) in writing, no later than a month after the last day of employment if he is not offered re-employment, or if he disputes the employer's grounds for not offering re-employment, including not meeting the re-employment eligibility criteria of satisfactory work performance and medical fitness, no suitable job vacancy or dismissal during re-employment. Or he could inform the Commissioner of Labour no later than six months after the last day of employment if he feels that the terms and conditions of the re-employment offer or the Employment Assistance Payment (EAP) amount offered are unreasonable. This law took effect from 1 January 2012. 3.30 pm I wish to find out, in the three years since it took effect, how many such disputes have come to the notice of MOM and what have been the outcomes? I also wish to ask for an affirmation from MOM that it is not the intent of the law or of the tripartite partners for companies to use the EAP freely in lieu of re-employment without first making every effort to effect re-employment. In addition, I seek a confirmation from MOM that in situations where companies have excess manpower and have to retrench, that they should abide by the tripartite guidelines on managing excess manpower and base their decisions on picking who to retrench on performance and not on age, and that re-employed or re-employment eligible employees are to be treated on the same basis as other employees in such circumstances. Ageless Jobs My second cut is on ageless jobs.”
“I wish to ask for an assessment of this situation and whether there are sufficient mechanisms in place for job matching, for place and train arrangements and professional alternative career conversion arrangements to help this group of PMEs to minimise unemployment and under-employment. Employment Trends and PMEs”
“Madam, the numbers and proportion of PMEs within the Singapore's workforce continues to grow. Today, it constitutes about one in three that are within the workforce, and by the year 2030, perhaps one in two. This is because of the changing structure of the economy. The growth Page: 49 in the size of the PME pool comes from three sources. Firstly, school-leavers joining the workforce and they come with better qualifications, working adults who are upgrading themselves into PME level jobs as well as foreign PMEs working in Singapore. As the pool of PMEs grows, the competition within it will intensify. If we were to consider who are likely to be the relatively more vulnerable amongst the PMEs, we can surmise that those working in declining industries as well as those in middle-management levels who have attained their positions after many years of work. These two groups would stand out. Economic restructuring that de-layers middle levels will put additional pressure. As a result, we have seen an increasing number of middle-level, middle-aged PMEs displaced from their positions over the years. It is not easy for a mature worker, including a PME who is a mature worker, to find work should he become unemployed. A tight labour market helps but it is no guarantee for a fast re-entry into work. PMEs, with their relatively higher pay compared to rank-and-file workers and likely larger financial commitments, face additional emotional and practical adjustment challenges. There is a risk of structural unemployment and under-employment for this group.”
“The first question I have, therefore, is whether such outcomes have been measured for different types of businesses. Do we know, for example, if older businesses are more likely than newer ones to apply for the Capability Development Grant, Innovation and Capability Vouchers, and PIC? For those who do apply, do older businesses benefit more than new ones? Finally, do we know the cessation rate for businesses after they have received grants? The results of tracking outcomes in this way can be used to provide benchmarks for what businesses can hope to achieve by tapping on the schemes. They can also be used to fine-tune the application of such schemes to improve their effectiveness. Therefore, my other question is if we do track these outcomes, whether it would be possible to exploit the information to tailor follow-on assistance to suit the needs of specific types of businesses, such as for instance micro-enterprises versus larger ones? Productivity Drive”
“Also, what lessons can we learn from other countries as they also try to improve their processes and their productivity, especially the developed countries, and how can we learn from their example. Outcomes from Productivity Schemes Assoc Prof Randolph Tan (Nominated Member): Mr Chairman, the objective of the current restructuring should not just be to improve productivity. It should be to elevate performance across all sectors, in a way which will allow Singapore to exploit future growth opportunities by relying on productivity growth and not have to restrict to factor accumulation alone. Page: 155 In the period between the last two recessions, Singapore relied mainly on manpower growth because earlier productivity drives had, I believe, stopped short of the enduring transformation required to develop productivity into a reliable growth engine. Although seizing the opportunities presented by that period of growth rewarded us with surpluses well into recent years, but it also left businesses with a lingering overhang from the foreign manpower reliance. If Singapore does not complete the restructuring needed to elevate productivity performance before the next growth wave reaches us, then we will once again be limited to choosing factor accumulation or foregoing the growth opportunities altogether. That is why I believe we must learn from the previous productivity drives and this time around, persevere on the difficult path of deep restructuring. What more can the Government do that it has not already done? The Government can take a more active role not simply by giving, but by asking firms about what they have received, monitoring firm performance as well as measuring the outcomes from the productivity incentives at the firm level.”
“Mr Chairman, productivity of the Singapore economy has been lacklustre, after a spurt following the Global Financial Crisis in 2009-2010, when excess capacity within the economy was taken up. I find that to be worrying. Why? Because countries that may be less productive and cheaper than us have been improving, so they are catching up on us. And then if you look at the more advanced economies, they may be more productive than us, more expensive than us, but they have had technological breakthroughs and they are also garnering their forces. So, in some sense, their unit cost may be coming down. To quote the often-said words from my colleague, Mr Lim Swee Say: "The cheaper are getting better and the better are getting cheaper". Singapore risks getting caught between the two forces like a pair of scissors closing in on us if we are not careful. From our standpoint, should that happen, our worry is that will real wages be affected, and it could lead to stagnation and even decline, and this is definitely something that we do not want to see. Therefore, the question is what we are going to do about that. We are glad that the Government has also seen the risk of this happening and has formed the National Productivity and Continuing Education Council, which has since been restructured into the National Productivity Council or NPC and the SkillsFuture Council. I would like to ask MTI for an update on the work of the NPC. We have heard much about what we are going to do about SkillsFuture, but I think it is important for us also to pay the attention of the NPC and how that is translating into outcomes within the different sectors of our economy.”
“Mdm Speaker, I fully support the Budget. 12.35 pm”
“They are left un-updated but they are still part of your workforce. They are not going to be able to help you move forward. In fact, they may become a drag on it. Therefore, you will get a self-fulfilling prophecy: you create the inability that you assumed about them which is something you can therefore also reverse by reversing your thinking, reversing your investment stance and continuing to believe in and to invest in the capabilities of your older workforce, not out of sympathy, not out of coercion by law, but out of enlightened self-interest because they are part of the workforce. That part is also growing. The better skilled they are the better off your company will be. I, therefore, am in full support of SkillsFuture in all its aspects and, in particular, the Budget measures to subsidise training for workers 40 years and above at 90% and also to empower initiative by workers to upgrade themselves through the SkillsFuture Credit individual training accounts. I spoke at length about what I believe to be the important attitudes of companies, but of course it takes two hands to clap. Where such opportunities are made available, where the funds are made available, workers must step up and help themselves. Page: 22 And on this, I call on all employers and the HR professionals to play their part, especially given the strong funding by Government, to continue to invest in the training and updating of their mature workers as a key and lasting part of their total workforce. Mdm Speaker, we must press on with and redouble our efforts to create ageless jobs and evergreen workers. This is the surest and, ultimately, the only way that we can make best use of our total potential as a nation and a people, and create that Better Future that we all hope for.”
“Therefore, in this light, I want now to draw attention to and emphasise the importance of continuing to invest in the capabilities of our workers but I will focus my speech here in particular on the importance of investing and continuing to invest in the capabilities of our mature workers. My fellow labour colleagues in Parliament will be elaborating on the Page: 21 different profiles of workers. Many organisations may still not have evolved their human resource and operations functions to fully appreciate the meaning of having workers who will continue to work with their companies into their more senior years. They still think, plan and operate as if workers will retire at age 55, maybe 60. But that is no longer the reality. By having not evolved and still stuck in that mindset, then many would reason that there is no point investing in the training, updating and up-skilling of older workers because they say that they do not have the long payback period left with the company, so it is harder to justify the training investment compared to if they were to put the money investing in a younger person. I think that employers who think and act this way would be mistaken on two counts. Firstly, research show that mature workers are much less likely to switch jobs, compared to their younger counterparts. What this means is that the effective runways for older workers are not necessarily shorter than those of younger workers in the company. I urge companies to seriously reconsider that assumption. Second, if you have an ageing workforce overall and if you take the attitude of stopping to invest in them at some stage, prematurely, then what happens is that they are then left under-skilled but they are still part of the workforce.”
“We have to redesign and get that better saw. I, therefore, call on the Government, industry and tripartite partners to continue with and to increase our efforts and resources to spur Job and Process Redesign across the different industries, and in particular, in the light of an ageing workforce, to review and enhance the WorkPro programme for greater reach and impact. In this Budget, one key focus has been on SkillsFuture. While building skills is certainly a critical success factor, it is a strategic complement to, and it is not a substitute for restructuring, creation and innovation in products, jobs and processes. The momentum of the National Productivity Council (NPC)'s work in spurring national and sectoral productivity growth and revival remains absolutely crucial. At the same time, we must make sure that workers are able to take on these higher valued jobs. Otherwise, you have the better jobs but if the workers are not able to take them on, then these workers will drag down productivity through being less than adequately skilled, or having their potential wasted through rigid worship of paper qualification, or we see a continued over-reliance on low-skilled foreign manpower. To the extent that we are not doing enough of job and process redesign and not putting enough focus and effort in investing in our workforce of all profiles to make them evergreen, then we would in effect be slowing the growth of our value-add down unnecessarily. That would be an "own goal" that we score against ourselves that we can scarcely afford.”
“It is in our own national interest to continue to encourage and facilitate a higher labour force participation rate so that more people may earn income over more working years to provide better for their retirement. We certainly do not want to see a growing pool of unemployed citizens, many of whom older, just so that those who remain employed can enjoy a better life. At the same time, we also do not want to see a growing workforce that risks getting stuck in real wage stagnation or decline. Those two things, we do not want to see and therefore, the only viable way forward for us is to improve both the employment rate and real wages so as to enhance value-add faster than workforce growth rate. To enhance value-add, we must make sure that jobs, work processes and technologies are designed and redesigned in that direction. Clearly, we are not seeing enough outcomes Page: 20 in this area. Of course, the picture is not even and there is faster productivity growth in the export-oriented sectors because it is subjected to international competition – it is do or die there. The picture is much more mixed and feeble for the domestically oriented sector. When we look at another aspect of job redesign, this time about WorkPro, with regards to redesigning for an ageing workforce – I will come back to this point because it is important. It is not that part that it is ageing but it is at growing characteristics of our work or so. What we do there, our ability to do what we are doing, matters. When we look at that, we also do not see a strong take-up, as of now. And unless and until we can move this piece of the jigsaw, what we end up doing is just trying to cut more wood by sawing harder with the saw that we have, instead of changing to a better and sharper saw.”
“So, that was the trend for median real wage Page: 19 growth. If we were to look at the trend for labour productivity, according to the statistics from the Department of Statistics: in 2007, it was 0.4%; in 2008, -7.2%; in 2009, -3.3%; then there was a rebound after that sharp recession, so, in 2010, 11.6%; followed by 2.2% in 2011; then three years of minuses; -1.4% in 2012, -0.2% in 2013, and -0.8% in 2014. So, in other words, for the period 2007 to 2014, labour productivity was negative for five out of eight years and for three out of the four most recent years. What are the implications? First, we can see that prolonged negative labour productivity will eventually drag down the prospect, or in fact, the reality of real wage growth. The two are inevitably linked. This will then constrain improvements in the standards of living. As real wages are what ultimately matters to workers, the Labour Movement wants to see a turnaround of this pattern as soon as possible. Second, unless the numerator of labour productivity, namely the value-add, grows at a faster rate than the denominator, labour productivity will continue to be low and sliding and with it, again, it will pull down the real wage growth. The question is how do we get this labour productivity up? It being a ratio, really, there are only two ways. One, you try to shrink the denominator. You do that by trying to shrink to workforce. And the second one is, you try to improve the numerator and that is by enhancing value-add. What is our reality? Our stark reality is our demography and that is our small population and one that is rapidly ageing.”
“Mdm Speaker, thank you for allowing me to speak in this debate. The Labour Movement has been advocating for the strengthening of mature workers' CPF savings through higher employment contributions, equal contribution rates at least for workers up to age 55 and to further improve on CPF interest rates and the contribution ceiling. We have also called on the Government to take steps to strengthen the incentive for employers to keep employing workers even beyond the age 65. We are very happy and grateful that the Government has responded positively and substantively on all these fronts. Mdm Speaker, I would to now like to speak on two concerns as we consider the transformation journey thus far. I hope that this will help us continue to focus the attention and efforts of the Government and tripartite partners on this very critical undertaking. When Singapore became independent in 1965, the median real income of a worker then was only one-sixth of what it is now. So, in other words, in 50 years we grew sixfold, not only nominally but in real terms. This is a real achievement by any measure, by any comparison for any country. That said, I think it is important that we be aware of the challenges that we continue to face as we make our journey forward toward greater success. According to MOM statistics, the annualised Real Median wage growth rate for the period 2004 to 2014 – that 10-year period – was 2.2% per annum. If you break that 10-year period into two five-year periods, the first five and the next five, then the median real wage growth was 2.5% per annum between 2004 and 2009 and slowing to 1.9% per annum for 2009 to 2014. And if were to look at the most recent one year period, that is 2013 to 2014, that one year, the rate was even lower, at 0.7%.”
“Mr Deputy Speaker, I support the Bill. 5.37 pm”
“At the same time, mature workers reaching the statutory retirement age want Page: 95 to have the chance and choice of continuing to contribute and earn income. Under the re-employment law, individual workers who feel that they have not been fairly treated by their employers can take up the matter themselves with MOM and there is a conciliation and arbitration mechanism in place to deal with such complaints. Rank-and-file workers may already be represented by their unions, if they are members, for re-employment issues. As for managers and executives who are members of rank-and-file unions, they cannot, at this point, be represented by their rank-and-file unions for re-employment issues as only four categories have been legislated for such individual limited representation, namely, retrenchment, unfair dismissal, victimisation and breach of contract. Therefore, as the ranks of the PMEs swell and as more baby boomers reach retirement age in the coming years, we should be proactive in working out viable systems arrangements within the tripartite framework to handle this important area promptly and with fairness. The proposed amendment to include re-employment as a fifth category under the limited representation is, therefore, both timely and prudent. Mr Deputy Speaker, Singapore has to find ways to maintain our attractiveness to investments and businesses so that our citizens can make a better living and have good prospects. The world is a volatile, uncertain and complex one. Our own demography and workforce structures are changing. In the midst of all these, we must devise arrangements to maintain fairness, stability and advantage so that our people's future will continue to be hopeful. These amendments to the IR Act will help us move in that direction.”
“The deep mutual trust nurtured among the three parties to this relationship is both a lubricant and a safety catch. This is not theory that I am talking about. This is a proven fact here in Singapore over many years. So, the core question is this: would allowing general unions or rank-and-file unions to also represent managerial and executive members, subject to the exclusions for conflict of interests, be more likely to crimp management and make running businesses harder, or more likely to bring the fast-growing number of PMEs within the benign and, I would say, even benevolent coverage and care of Singapore's proven win-win tripartism, thus reinforcing the prospects for continued industrial peace and attractiveness to investments? To me, the historical evidence over these past decades is so clear – inclusion within tripartism is the wiser choice for all. The alternative to this would be to deal with challenges in industrial matters on an ad hoc and scattered basis, making such handling not only more complicated for companies but also beyond the ability of tripartism to help should things go haywire. Mr Deputy Speaker, I move on to my second aspect, which is on the inclusion of re-employment. We all know that the Retirement Age Act was amended in January 2011 to include re-employment as a general statutory obligation on employers when their workers reach 62 years of age. That law took effect from January 2012. It is common knowledge that the labour market is very tight and many companies face genuine difficulties in meeting their manpower needs. This tightness is forecasted to continue. Re-employed manpower is not only a good source of headcount, but also of experience and networks.”
“So, if you were to rely on the Employment Act alone, I think you will tend to gravitate to the lowest common denominator and, in fact, create and suffer a high degree of rigidity. The IR Bill, therefore, offers a viable way forward. Building upon the requirements of the Employment Act, it allows companies and their unions to work together flexibly for win-win outcomes that benefit both shareholders and employees. It allows for the customisation of arrangements that best address the needs and concerns of the stakeholders at the enterprise level. Some employers may hold the view that allowing unions to represent their workers in industrial relations will reduce the degree of management freedom and feel that, really, if it was not possible to not have unions, then it might be better to limit the role of the unions as much as possible. While I can understand this point of view, especially if these businesses have had prior negative experiences elsewhere in the world, it is not the situation here in Singapore. Page: 94 This brings me to a key point. I think amending the IR Act in the manner proposed is an absolutely necessary step. However, I also wish to say that the effectiveness and value of the IR Act in operation depend critically on the effectiveness of tripartism because it is tripartism that gives Singapore's industrial relations its spirit. How can we then describe this Singaporean spirit of tripartism? Tripartism in Singapore has been painstakingly fostered, tested and strengthened over the past four to five decades – through good times and crises – to manifest that collaborative and forward-looking essence. It is both pro-business and pro-worker at the same time and it can adapt dynamically as companies, industries and the economy go through ups and downs.”
“Whether we look at land, labour or utility – over the longer period – they have risen. And it is fair to say that we are no longer considered a low-cost investment location. Page: 93 Since it is clearly becoming harder for Singapore to compete purely on factor cost, it means that Singapore must focus on two key areas in order to maintain our attractiveness to good investments and the good jobs that they bring. We must improve productivity and continue to climb the value-added ladder in order to offset the cost impact directly. We must also ensure that our systems-level advantages are continually safeguarded and enhanced to help keep up our total attractiveness. Sir, today's amendment of the IR Act, in my view, comes under strengthening this second thrust of safeguarding our systems-level advantages through enabling the continuation of industrial peace. How is industrial peace achieved and how is it maintained? Some people may think that maybe industrial peace can be legislated, for example, if you make a law to outlaw strikes and work stoppages. This, clearly, is a naive view. Believing this would be like believing that you can keep the pressure in just by keeping the lid on. You do it this way and in the end what you get is really a pressure-cooker bomb. Some others may think that industrial peace maybe can still be legislated and, this time, you find another law, perhaps the Employment Act, and then you put all the terms under that and you guarantee that. In my view, that would be an impractical view because what the Employment Act can do is to specify minimum standards for all companies and industries; in other words, every business that operates in Singapore. It will not be able to be all things to all kinds of employees, companies and situations.”
“Mr Deputy Speaker, thank you for allowing me to speak on this Bill. I wish to declare that I work in the NTUC and am involved in the running of a number of unions. Today, I wish to speak on two aspects of this Bill. First, I want to discuss how this Bill will impact Singapore's attractiveness to investment and to good jobs. Second, I want to give my explanation as to why I think it is right and timely to include re-employment matters into the scope for limited individual representation. First, my comments on these amendments in the Bill on Singapore's attractiveness to investments and good jobs. Sir, when Singapore was a much cheaper location to base investments in, we could use factor cost advantages compared to the more developed countries in order to attract the companies to come and put their investments here and to expand their operations. That relative cost advantage, together with a hardworking and fast-learning workforce, allowed Singapore to make up for what we lacked at that point in skills, capabilities and market to some extent. In addition to these factor costs, Singapore also offers what I would term "systems-level attractiveness". By this, I mean, in particular, the ease of doing business, zero tolerance for corruption that enables transparency of costs to businesses, predictability of Government policies over a longer horizon and industrial peace through tripartism. Businesses know that these systems-level considerations are not trivial when they compare country with country, city with city, in deciding where and when to site, expand or move their investments and operations. They decide based on the composite assessment of cost plus these other systems advantages. They know that; Singapore knows that as well. Over time, costs in Singapore have risen.”
“We must be quite clear about this. Having a degree is not itself an entitlement to career success. Likewise, not having a degree is also not a sure-fire way to job success. Success ultimately rests on outcomes and is built on integrity, initiative, competence, contribution, determination and adaptability. In other words, merit. So, you have got to deliver that value, whether you have a degree or not. Having a degree is not a guarantee and, obviously, given the need for Singapore to make the best of every person that we have, we must strongly encourage all employers to design and see to career progression based on merit, and to remove glass ceilings. In this way, companies allow themselves the biggest possible pool of talent and contributors to develop and tap, while all workers have the chance to advance by proving their worth through their performance and merit. Page: 52 This will, in turn, make the best use of the enhanced education and CET eco-systems to develop workers with better and more relevant skills to meet the demands of the better jobs that we hope to create and bring in. The Tripartite Committee to be chaired by Deputy Prime Minister Tharman Shanmugaratnam will, thus, have a critical role to play to bring all these pieces together into a coherent, working whole. We must make this work so that Singaporeans can and will look forward to a better, brighter future at work for themselves and their children. With a clear mission and road map, strong tripartism and progressive industrial relations, I think we are ready for the journey. Mdm Speaker, I support the Motion. 3.40 pm”
“Page: 51 These entities and capabilities across different industries must be fully harnessed to work in tandem with the ASPIRE initiatives for the best and smoothest overall outcome for Singapore and Singaporeans. Third, the link between "Work Right" and "Reward Right". The most advanced car wash that will give the car the best and most lasting shine is of no use if there are no cars going through the car wash. The best intentions of the ASPIRE report will come to nought if there is poor follow-through at the workplace, or if companies are not able to or not doing their best to retain or to upgrade the talent, skills and experience of their workforce. To guard against this, aside from ensuring that the CET system and players are proficient and proactive, there is also an important role for Government agencies and industry associations spearheading the development of the different sectors, and industries must also proactively paint exciting visions for their industries to catch the attention of students, parents and workers seeking better futures. Yet another key ingredient is the role of management in using, motivating, rewarding, retaining and developing their scarce manpower truly as assets. In this respect, there is another area of potential waste that we must look at and avoid. Some employers view paper qualifications as a proxy for a person's capability at the point of recruitment, and progress thereafter depends on the person's performance, value-add and demonstrated potential to advance. Then there are others who rigidly destine a person's ability to advance within their companies and organisations, largely on the basis of their paper qualifications at the point of entry, sometimes almost to the extent of running a caste system of sorts.”
“My point is, as we do and improve things from the schooling end, we should tap fully the CET part of the eco-system and join the two up in a very seamless way. Just to give an example, it is a real challenge faced by companies in the electronics industry to find and keep skilled personnel. This particular challenge is felt, for example, by the wafer fabrication industry. It is made all the harder by intense international competition and fast-changing technology inherent in that industry. There are also issues of intellectual property protection that companies need to address. All that, when unresolved, became hurdles to industry development as each company tries to address its own manpower shortages by attracting people from other companies, otherwise known as poaching from one another. Such action does not grow the pool of skilled personnel, but just intensifies job switching and create a wage cost spiral. Through the hard work and partnership of various players – companies in the wafer fabrication industry and subsequently in the different WSQ, those in the Assembly and Test industry, the union in this industry which is the United Workers of Electronics and Electrical Industries, the WDA and EDB – barriers were overcomed and industry-wide WSQ upgrading frameworks were then put in place. As a result, hundreds have already graduated through that process and thousands more stand to benefit from structured training that will upgrade their competencies for which they are certified and ways in which these competencies are recognised industry-wide and receive recognition and have market value. The companies benefit from a more stable and expanding pool of manpower and the people who graduate from these programmes see better prospects as well. There are many advantages.”
“In order to meet their requirements for these skilled technicians, Rolls-Royce worked with our Polytechnics and ITEs to design courses on aero-engineering, and the students in these programmes were given the opportunity to intern with Rolls-Royce at their Seletar campus in order to deepen their understanding with regard to the production process. Many of those who subsequently graduated from their programme were employed by Rolls-Royce as technicians and engineers and enjoyed good career prospects. This is a good example of how industry and our local Institutes of Higher Learning can jointly co-create certification programmes to meet an emerging, ongoing or expanding industrial need. Page: 50 The benefits of such partnerships are, indeed, two-fold. First, that these tertiary academic programmes are structured based on in-depth consultation with industry players, and that these programmes are, therefore, highly relevant to the real needs of industry and are able to produce graduates who are immediately employable. These industry-sponsored programmes offer also our diploma and ITE graduates the opportunity to undergo structured training and internships which are aligned and value-add to their tertiary education. But after a person starts work within the workspace, then we talk about CET. Here, also, we have strong frameworks and entities, such as the Devan Nair Institute of Employment and Employability (DNI) which is run by NTUC's e2i, the WDA-run Lifelong Learning Institute (LLI), the modular Workforce Skills Qualification (WSQ) upgrading framework, the numerous industry-focused union clusters at the NTUC and their counterparts at SNEF, and many strong industry-based skills and capacity-enhancing entities. Some of these are already creating value.”
“An ideal CET system would be one with strong institutions and service providers within itself, that these providers are able to train, upgrade, retrain and match and rematch workers efficiently into good and well-fitting jobs. It must also be one that interacts actively with education institutions in a two-way loop to mutually update and upgrade on needs and capability-building. When that happens consistently and pervasively, then the investments of time, effort and money that each person and the country put into pre-employment education will yield a longer stream of good returns throughout a person's working years and will not be wasted mid-stream. In this regard, the Labour Movement fully supports the proposed improvement to ITEs and Polytechnics in strengthening the industrial link through purpose-focused internships and Place-and-Train programmes. We also support the enhancement in the capability to provide more accurate and timely job-market information and also job counselling. I would just like to also quote an example with regard to how companies and the education institutions can work closely together in order to make this happen. Here, I quote the example of Rolls-Royce. Rolls-Royce has a longstanding relationship with Singapore, and when they decided to invest in an Asian-based production plant for their state-of-the-art Trent engines, they chose Singapore, and we are very glad for that. While Singapore had offered Rolls-Royce more than production infrastructure, Rolls-Royce, at the point of investment, was concerned about the possible lack of skilled technicians with the expertise to produce the aircraft engines.”
“The first one is the link between "Teach Right" and "Learn Right". This is about ensuring that courses of study being offered are themselves valuable and relevant to current and emerging industry needs, and also in helping students choose the right course of study that best fits their talent, their aspirations and their abilities. This is conceptually easy to understand, but it is actually not easy to put into practice correctly and continuously because there are many different parts that are moving. To articulate them and to synchronise them will be challenging. But it is a very important part for this enhanced capability to link between the ITE, the Polytechnics on the one hand, and industry on the other, in order for both sides to better understand the job requirements and the job opportunities, and also the training that must be put in place to link the two. This must be properly resourced and carefully built up. The second link is that between "Learn Right" and "Work Right". This part concerns the workplace. In today's reality, lifelong learning and lifelong updating of knowledge and skills are not just nice add-ons for those people with extraordinary aspirations. In fact, it is a basic action: for all workers, in order to preserve employability for themselves; and for companies, Page: 49 in order to preserve their competitiveness. The better Singapore is at ensuring updating and relevance of skills, the more resilient and attractive our workforce and economy would be for the future. This is precisely why the Labour Movement is very keen. This is at the core of the future of our workers. Thus, it is vital that substantial attention be paid to, and significant investments be made in Continuing Education and Training (CET).”
“But for the students that we do have, there could also be challenges because students could be studying courses that mismatch with industry needs, or because the industry needs change and their catch-up process in terms of what is being taught to the students is not quick enough. Students may also choose to work in industries that need competencies that are totally different from their course of study. So, they study in one thing but they choose to work in Page: 48 a different line. All that investment does not convert into value. Companies also may be part of the problem because some companies may not be able to retain the workers by providing challenging work, competitive rewards or attractive prospects. So, even if they have the right students coming to work for them, they do not keep them long enough. And, again, they lose the experience. In other words, if we are already short of people, we really, as a country, cannot afford to waste anyone, waste the talent or the skill, through any sub-optimal matching of training and work requirements, or through the premature loss of talent and skilled personnel. It is, therefore, imperative that we "Teach Right, Learn Right, Work Right and Reward Right". I believe that if we do these four things right, we will then put ourselves on a virtuous cycle of skills building, value creation, good rewards and, eventually, ever improving living standards. In this regard, I welcome and support the recommendations of the ASPIRE Committee as they seek to strengthen our ability to cut waste and maximise value with respect to students studying and working in relevant and related areas. I think that for the full value of the ASPIRE report to be realised, we must focus on three critical points.”
“Mdm Speaker, thank you very much for allowing me to join this debate. I fully support the recommendations of the ASPIRE Committee's report and the Motion before us. To the Labour Movement, a better future for Singaporeans must include good prospects for Singaporeans to get good jobs and to enjoy an improving standard of living. And for that to happen, good jobs must be created in the first place in Singapore, and then Singaporeans must have the aptitudes and competencies needed to take on those good jobs. Indeed, the two are inter-linked. If companies find that Singaporeans do not have the competencies needed for the better jobs that they intend to create – and here it applies to companies both big and small, MNCs and SMEs – then they find less reason to create those jobs in Singapore or to bring those better jobs into Singapore. So, the ability and the availability of skilled manpower and talent are very critical to ensuring the availability and the creation of good jobs in Singapore and that better future for Singaporean workers and Singaporeans. Should that be a worry for us? Could there possibly, potentially, be not enough Singaporeans with relevant competencies to attract or to undertake and to anchor these better jobs for the future? I think it is possible and I can think of a number of possibilities of why that might happen. One challenge would be our small population and our low fertility. There may be a constraint in sheer lack of numbers, though, to some extent, progress in our efforts to improve job design, value-add and total productivity will help to ameliorate the challenge.”
“The periodic review Page: 25 to determine the optimal allocation among these sub-accounts, taking into account factors like the different needs of different life stages, will help determine what is optimal in the entire portfolio and help to ensure that what is put aside as one goes through life, saving up for retirement, would, in fact, be adequate, which was the core purpose of CPF in the first place. Aside from the apportionments and changes to the apportionments across time, it is also important to remind CPF account holders of impending changes, for example, as they cross from one age band to another and the arrangements change. For instance, many people may have forgotten or may not be aware that they can pledge their property, subject to conditions, for up to 50% of the Minimum Sum at age 55. And if they do so, then it lessens the need to transfer Ordinary Account savings into their Retirement Account. If the communication and administration aspects within the CPF system like these could be further enhanced, then it will certainly help to smoothen the process for many and also reduce the confusion. Mdm Speaker, with an ageing population, retirement adequacy is an important matter to take care of. Adequate retirement is certainly contingent upon the money being found for it, and it does not happen on its own. Accumulating and growing the CPF part of that retirement nest egg require the clear-headed and determined joint efforts of workers, employers and the Government. We must make every effort and seize every opportunity to do so. Mdm Speaker, I support the Motion. 2.23 pm”
“5% per annum and the interest rate for the Special Account is 4% per annum, both of which are significantly higher than what CPF account holders will get if the money is placed in low-risk bank fixed deposits. In addition, there is a one percentage point mark-up on the first $60,000 saved within CPF. The Government has maintained these rates against a very low interest rate environment for quite a number of years. These preferential interest rates and the compounding effect of interest rates will help boost CPF savings over time. The Government should keep a keen eye on the rates and ensure that the best possible preferential rates are used to aid workers' retirement adequacy. The next measure would be the payout rates for CPF LIFE annuities. If the payouts from CPF LIFE can be enhanced in sustainable ways, then the retired persons would have more funds each month at their disposal. There are different ways of doing this. I am no expert but perhaps one suggestion is for the Government to consider future CPF top-ups, as discussed earlier, and increases in contribution rates if these would come about, to prioritise the Special Account, because that would then eventually convert into the Retirement Account. An increased flow into and extra preferential interest rates for Special Account savings will then best enable the compounded growth of such savings. Allocation among the different sub-accounts of the CPF is another area where the individual can have more for retirement. Today, we know that there are three sub-accounts – the Ordinary Account, the Special Account and the Medisave Account. Savings in the Special Account will eventually become the core Retirement Account savings for CPF LIFE. The current CPF rate structure already has differentiation by age bands.”
“Of course, higher rates mean more CPF savings for the worker. At the same time, it would mean a higher unit manpower cost to employers. So, a win-win sustainable set of rates would have to be determined from time to time. The current structure of rates was set in 2003, that is, 11 years ago. The rates have either been reached or surpassed – I think that is a point that the Labour Movement has made before – and we Page: 24 remain committed to our call to the tripartite partners to work together to update this. Next, CPF contribution ceiling. The current ceiling is $5,000 per month, up from the previous $4,500 per month set, and this change came about in September 2011. The review of such a ceiling periodically will help those earning just above the current ceiling save more in their CPF. And, for this, because we are talking about the higher end of the salaries, it would particularly help PMEs. There is another source and, that is, ad hoc top-ups. The Government grants top-ups to individual CPF accounts from time to time from its Budget surpluses, and for the low-wage workers through the Workfare Income Supplement payouts, which are 60% CPF and 40% cash. Individuals and companies also have avenues to do their own top-ups and some have done so. These top-ups will also help increase their CPF savings. We should continue to encourage this, especially by the Government, for lower-income workers and by the more financially able for family members who are not working. The next bucket is that of making the CPF savings work harder for a worker's retirement, and, on this, the interest rates on CPF savings. The current Ordinary Account interest rate is 2.”
“The ULive@Work department, which is the NTUC's department championing older workers' issues and interests, had asked affiliated unions to categorise their partner companies with regard to employing workers beyond age 65, according to a five-point scale. This survey is ongoing but I would just like to share some preliminary results. So far, out of 313 companies rated, 75% of them are employing workers beyond age 65. Some do it on an ad hoc basis whilst others are systematic, and the best ones have policies to back up their intent. Sixty percent of the rated companies re-employ older workers as a matter of norm, that is, better than ad hoc. So, whilst the survey is ongoing, I can see that such a strong labour market result goes to show the recognition by both workers and companies of the value-at-work that our older workers create. I am optimistic and convinced that a calibrated move from 65 to 67 is doable. And as I explained earlier, doing so would certainly also benefit earnings and CPF savings. Next, MediShield Life, employer health insurance, Medisave contribution. Many employers provide some form of health insurance for their employees and pay a premium for that. MediShield Life will be a national, universal health insurance programme for all our citizens. It will cover pre-existing illnesses as well. When the details of MediShield Life are released, I think there is an important opportunity for employers, workers, unions and insurers to work together to minimise duplication of coverage, if any. More importantly, where savings can therefore be derived from the cut-down of duplication, then these savings must go into additional Medisave contributions for the workers, thereby helping to strengthen this part of a worker's CPF savings. Next, CPF contribution rates.”
“As CPF is a percentage of a person's base pay, an increase in base pay will increase one's CPF savings. So, in this regard, the Labour Movement's push for the Progressive Wage Model, a call which is now supported by the Government, will help enable sustainable improvements in wages through skills, productivity and career enhancements. It would also help to improve CPF savings on a long-term basis. Second, minimising episodes and duration of unemployment. There is no CPF to be earned during periods of unemployment. Hence, efforts to minimise unemployment, for example, through skills upgrading and employability capacity-building, and enabling more economically-inactive citizens to return to work, will help workers derive more CPF savings. Page: 23 Next, more working years. If we can lengthen the working runway for our older workers, there will be additional years of salary to increase overall earnings and overall savings. Not only that, but the additional savings would also themselves earn additional CPF. This would certainly also improve the working years to retirement years ratio. So, again, using the earlier example of starting work at age 22 and continuing to age 67, instead of 65, and with a life expectancy of 82 years, then the support ratio will improve from 2.5 to three. This is why I have been pushing hard to raise the re-employment age ceiling from 65 to 67. This will give older workers, who wish to do so, such a choice. Even as the Tripartite Committee continues in earnest to reach a consensus on when and how to raise the re-employment age ceiling, I am very encouraged by a survey that NTUC's ULive@Work department is conducting.”
“And then if he is re-employed till age 65, then it would have been 43 years of working for 17 years of retirement, Page: 22 that giving a ratio of 2.5. This is the reality that we must together face. There are two main ways one can save more for longer retirement years: first, by earning more during working life. This increases the chance for savings being accumulated, for a given level of consumption expectations and choices. Second, by maximising the pool of savings meant for retirement. For the more one can do that individually and for the population as a whole, the more adequate would retirement funding be. What is Retirement Adequacy? One way of looking at it is – it is the relationship between available funds and the level of expenditure for a given level of standard of living. If you look at the money side of things, on the funds side, one source of money would be CPF savings. It is not the only source. For example, there could be other sources, like private savings outside the CPF, contributions from family members as well as the ability to monetise assets like renting out rooms or right-sizing to a smaller flat. These are the other avenues. But, for today, I wish to discuss ways to strengthen the pool of CPF savings for workers, so as to help as many workers as possible build the means to an adequately provided retirement. And for this, I have divided the measures into two buckets: one, the measures that maximise the flow of money into a worker's CPF savings; two, how to make the CPF savings work harder for the worker's retirement. So, the first bucket, that is, of maximising the flow of money into the worker's CPF savings. There are different ways. The first way would be to increase the base pay.”
“Mdm Speaker, thank you for allowing me to join this debate on the President's Address and I fully support the motion to thank the President. To me, the President's speech amplified the values of Courage, Commitment and Confidence. Courage and grit of the pioneers in laying the foundation and building this country. Commitment of the present generation to a progressive, inclusive, compassionate nation. Confidence that Singapore and Singaporeans will do well in a future of opportunities amid a rising Asia. The Government has recently brought about the Pioneer Generation Package to give our pioneers peace of mind in healthcare. In his speech, the President also touched on the wider subject of retirement adequacy. This goes beyond the Pioneer Generation. Citizens of all ages must prepare for their eventual retirement. Every person hopes to be able to enjoy a good standard of living in retirement, preferably not too different from that before retirement. When Singapore became independent in 1965, life expectancy then was around 65 years. If a person starts work at age 20 and retires at, say, age 55, he would have worked 35 years and then must provide for an average of the remaining 10 years in retirement. So, if you divide one by the other, 35 by 10, then the ratio of working years to retirement years is 3.5. Today, life expectancy is around 82 years. If a person starts work at age 22, say, after National Service, and works till he retires at today's statutory retirement age of 62, then he would have worked 40 years to provide for the remaining 20 years in retirement. And once again, if you divide the working years by the retirement years, then the ratio would have changed to something that is already less. So, it would have been three.”
“Mdm Speaker, may I seek your consent and the general assent of the Members present to move that the proceedings on the item under discussion be exempted from the provisions of Standing Order 48(8) to remove the time limit in respect of the Minister's speech?”
“We are, therefore, working with the HPB to deliver health promotion programmes at the workplace to reach out to seniors better. And we will take an occupation-based approach to customising the programmes to the health issues that are unique to each occupational type. So, for example, we could design ergonomics programmes for retail assistants as they tend to develop musculoskeletal disorders. We aim to start with sectors with a large proportion of mature workers, for example, in taxi driving and retail. Madam, in Mandarin, please. (In Mandarin): [Please refer to Vernacular Speech.] Many Members have mentioned that an elder at home is a treasure for the family. In fact, our older workers have rich experiences, hence, they are also treasures at the workplace. For a senior, having a job means better financial security and a more fulfilling life. However, in order to continue working, one must stay healthy. Page: 123 In order to help these older workers to stay healthy and continue to be employed, we will launch specifically-designed health programmes in various workplaces. This year, we are going to launch a special programme to help taxi drivers and supermarket staff to stay healthy. These programmes will benefit the employees and their family, as well as the employers. In summary, we need the whole society to give recognition to our seniors, no matter whether they are workers or our family members. We hope the elders in Singapore not only live long, but also live well and be free from worries. 5.00 pm Healthy Living Master Plan”
“Through these talks, we hope to help our seniors plan better for their retirement and healthcare needs so that they can enjoy ageing with the assurance that their financial needs are taken care of. We will also work on attracting seniors back into the workforce through various initiatives, such as the Place-and-Train Page: 122 programme mentioned earlier by Senior Minister of State Dr Amy Khor. Taking care of our seniors' health. We will strengthen health promotion, screening and management of our seniors in the community and at the workplace because it is only through having good health that really one can enjoy ageing. We are already tapping on senior volunteers to promote healthy lifestyles to other seniors within the community. Some 1,100 seniors have come forward to volunteer as community health ambassadors under the HPB's Health Ambassadors Network programme. They attend courses to learn more about healthy living and help spread this knowledge to influence others into also leading healthy lifestyles. As several Members have highlighted, preventive health screening is key to good health – I think Mr Gerald Giam mentioned that in particular. Community health screening is already a core component of the Wellness Programme. Thirty thousand seniors have benefited from Wellness screening thus far. And we will continue to strengthen our community health screening efforts, including improving the rate of follow-ups by seniors who are detected with a health risk, and, of course, keep the entire exercise very affordable. Six hundred and forty thousand workers aged 50 and above are in our workforce today. They need good health so that they can continue to work if they can and want to.”
“In recognition that many seniors have skills and experience, and can and will want to continue to make meaningful contributions, C3A has also funded senior volunteerism programmes, such as those by the RSVP's senior guiding programme where seniors can volunteer as guides at public places, such as airports and hospitals. The YAH! College also encourages graduates from its programmes to volunteer in different capacities. To share another example, 68-year-old Che Ah Kau attended a YAH! programme in 2008 and, since then, has been an active volunteer. Before he retired in 2006, he worked in the previous 25 years as a hawker. At that point, he was reserved and had difficulty expressing himself freely and fully. But, after attending the YAH! College course, he became more confident and articulate. And he was inspired through that programme to volunteer and is now helping in Taman Jurong to serve elderly residents within that community. He even joined 99 other seniors and students from the Republic Polytechnic in a fun activity, a flash mob at the Jurong Point Shopping Centre, last October. So, certainly, he is much less reserved now; he is enjoying life a lot more, and he has shown us that ageing can hold many fun and exciting opportunities. We also want to help our seniors work longer if they can and want to. The C3A collaborates with employers, unions and organisations, such as HPB, to provide talks for mature workers. These talks are aimed at encouraging workers to adopt a positive mindset towards ageing and to stay employed. It has reached out to more than 900 mature workers since June of 2013.”
“By December last year, the programme had reached out to more than 310,000 seniors, and is on track to the goal of reaching out to one in two citizens aged 50 and above by 2015. Next, on keeping our seniors mentally engaged and active, several Members have highlighted the subject of lifelong learning and seniors' development. We are, indeed, making available more lifelong learning programmes and opportunities for senior volunteerism and employability. By participating in these programmes, seniors can stay mentally engaged and enjoy greater mental well-being. Seniors can also gain a greater sense of purpose and show that ageing is a fulfilling process. And this will improve our overall societal mindsets towards ageing, which is like a point that Members like Mr Seng Han Thong and Mr Yeo Guat Kwang also emphasised. We will continue to work through the Council for Third Age, or C3A, to promote and support lifelong learning activities. C3A collaborates with like- Page: 121 minded VWOs like YAH!, which stands for Young-at-Heart!, Community College and Fei Yue Community Services to bring lifelong learning courses to the community. C3A itself also launched the Intergenerational Learning Programme, or ILP, in 2011. The ILP pairs senior learners with student "teachers" in subjects such as Information Technology and photography. It bridges intergenerational gaps and promotes mutual understanding. A survey of 804 senior and youth participants on this programme showed encouraging results. Ninety-seven percent of the youths said that the programme improved their perception of the older generation, while 94% of the seniors on the course felt the same towards the younger participants. To date, 1,040 youth and 830 seniors have participated in and benefited from this programme.”
“So, that would be an example of a ground-up interest group, and as Members can see on the screen, they are having a great time. Page: 120 A 12-month impact study conducted last year in collaboration with Duke-NUS validated that seniors benefited from their participation in the Wellness Programme. Compared to the general senior population in Singapore, those seniors who participated regularly in the Wellness Programme became more physically active and socially connected. They increased their participation in physical activities by an extra 48 minutes per week, compared to the general population which reported an increase of 23 minutes a week. Wellness Programme participants also felt healthier and adopted more positive health behaviours. They were also more likely to participate in health screening – which is a point emphasised by various Members – and to follow up on any abnormal screening results. So, to give an example, 54-year-old Mdm Jenny Yim Yuen Chun is one of the seniors who benefited from the Wellness Programme. She keeps herself healthy through brisk walking. She has also stretched herself personally by going beyond just being a Wellness participant. She now contributes as the Bukit Panjang Divisional Coordinator for the North West Brisk Walking Clubs where she organises activities for the many club members. Mdm Yim has attended leadership and first-aid courses to better fulfil the coordinator role. Mdm Yim has demonstrated that one can certainly continue to grow personally and to lead an active, happy and purposeful life even as one ages. Being in the brisk walking club, she certainly has gone the extra mile The Wellness programme is spreading with more seniors like Mdm Yim benefiting from the programme.”
“Madam, also for avoidance of doubt, I am rising not to make further cuts on MOH but to help answer some questions on active ageing. Madam, I thank the various Members for speaking in favour of and highlighting the importance of active ageing. All of us are ageing because that is part of life, part of growing up. Instead of associating ageing with disease or disability, we should focus on how to keep ourselves healthy, active and happy, because all of us will likely be leading longer lives going forward. In fact, a 65-year-old in 2012 has a life expectancy of 20.4 years, compared to 14.2 years for a 65-year-old in 1982. We should make the most of this increased longevity. Ageing can be happy, fulfilling and enjoyable, if our seniors keep themselves healthy and active. Indeed, many of our seniors are already leading active lifestyles. For example, more seniors are choosing to stay employed, with the labour force participation of those aged above 65, growing from 10.4% in 2004 to 22% in 2012. An active lifestyle keeps our seniors mentally engaged and adds a sense of purpose to their lives. We will continue to support our seniors in ageing actively and I am happy to provide an update on our programmes in response to Mr Chen Show Mao, Mr Yeo Guat Kwang, Mr Zainal Sapari and other Members who have spoken on this subject. First, an update on the National Wellness Programme. To promote health and wellness in seniors, the People's Association has rolled out the Wellness Programme to all 87 constituencies in Singapore since 2012. Seniors can stay physically active through activities, such as brisk-walking, and socially connected through ground-up interest groups.”
“Mdm Chair, may I have your permission to show some pictures on the screen?”
“I would also like MOH to update on whether it is planning to do such a review and, if so, over what dimensions and timeframe? MediSave Assoc Prof Fatimah Lateef (Marine Parade): Madam, there has been a gradual enhancement and liberalisation to MediSave use over the years. One of the major evolutions was its use in CDMP and the gradual extension of the list of medical conditions up to the 15 today. However, looking at the trend of our chronic illnesses, ageing population dynamics, medical and technological developments as well as the rate of complications, I think we are going to have to review this as well. As such, can MOH consider extending the allowable ceiling or cap per MediSave account per year to be utilised for this; also to extend the repertoire of diseases that can be covered to include more psychological or mental illnesses, dental care as well, which can be costly, causing many of our seniors to have poor dentition, which affects chewing of food and thus digestion, connective tissue and rheumatic diseases; and also doing away with the co-payment of 15% and the $30 deductible? Finally, allowing MediSave use for outpatient tests, such as MRI, MEDI scans and Cat scans, will also help because Page: 61 these are costly investigations. Use of MediSave”
“Mdm Chair, with MediShield being reviewed and transformed into MediShield Life, citizens will enjoy lifelong, inclusive and affordable health insurance coverage and greater peace of mind. There is another national health-related insurance programme that I wish to draw attention to. This is the ElderShield programme, which was conceived as a form of disability insurance for citizens above the age of 40. When an Page: 60 ElderShield policyholder is no longer able to perform three or more Activities of Daily Living (ADLs), the policy will make cash payments of a certain amount over a given duration, according to the version of ElderShield purchased. While the cash payment is certainly helpful for general purposes, I note that there is no guidance or recommendation to consider using the money for eldercare or disability care purposes. I see that as a gap. With ever increasing longevity, we must also prepare for the possible scenario of a more prolonged disability amongst some. This will include evolving better guidance to help insured persons and their caregivers on how and where to get help for disability care and stepping up the supply of such services to cope with anticipated growing needs. This will help slow down the rate of deterioration of disability conditions and help the disabled seniors maintain a better quality of life longer. I feel, therefore, that ElderShield needs to be reviewed from its current parameters in terms of payout amount, and whether the Government could also consider ways to ensure affordability as well as how the ElderShield payouts should be directed toward appropriate eldercare services instead of just general expenses.”
“Second, the cost of drugs. I know that generic drugs cost less than patented drugs and are encouraged to be used to keep cost down. I also know that the Government subsidises certain drugs to make them more affordable for patients. Page: 46 I would like to ask how we can examine the benefit of national procurement and the pricing of drugs. In countries such as Australia, I understand that there is a national drug procurement scheme to keep drugs sold to hospitals and medical establishments low and known. In this regard, I would like MOH to update on whether there could be national procurement of drugs to derive more benefit from bulk buying and also clarify whether the prices of drugs at public hospitals and polyclinics are kept at the lowest possible levels.”
“Mdm Chair, MediShield Life and the Pioneer Generation Package aim to relieve citizen anxiety over the affordability of healthcare. These are very bold and important moves that the Government is taking to assure citizens of peace of mind in an essential area of life. Yet, this is just one half of the story. It helps answer the question of where the money for treatment will come from when a person falls ill. It does not answer the question of how the cost of medical treatment can be kept as low as possible. We all know that healthcare cost inflation is very real. At the same time, it is not true that nothing can be done to keep it as low as possible. In particular, experience in other countries point to two areas that I believe merit close attention. First, what treatments are necessary, appropriate and most cost-effective for patients? While we generally expect and trust the medical fraternity to think in the interests of patients, we must also be practical to know that there are many commercial and pecuniary incentives that attach themselves to the promotion and use of certain treatments, drugs and equipment. Furthermore, patients themselves are becoming more informed over time and may demand certain treatments, drugs and tests even when their doctors have not recommended them in the first place. The risk of this happening will increase further when insurance is seen as covering the payments and premiums are assured to be affordable. I, therefore, feel that more proactive steps need to be taken to set out as clearly as possible what necessary, appropriate and cost-effective treatments are, at least for the key diseases that experiences elsewhere show the potential of cost runaways. I would like MOH to update on whether such steps are being taken.”
“Mdm Chair, at the COS last year, I suggested that NEA also looked at tapping on the video captured by in-car cameras of littering from moving vehicles. That way, you can definitely get the number plate. I hope that that can also complement MEWR and NEA, as they tap into the CCTV network of the Government agencies and make use of the public's spiritedness as well. Page: 36 1.00 pm”
“Chairman, Sir, the Minister has just heard from many Members' reports and feedback on so many problems. For a change, I bring in something beautiful. According to information on the website, over the years, Singapore has gradually developed a pervasive network of some 8,000 km of waterways and 17 reservoirs for our water supply; and to realise the full potential of this infrastructure, the PUB has launched the Active, Beautiful, Clean Waters (ABC Waters) Programme back in 2006. By integrating the infrastructures like drains, canals and reservoirs with the surrounding environment, this programme creates not only clean and beautiful streams, rivers and spaces, but also more importantly allow the public access into these areas, and they can make use of them for recreation and improve on the quality of life. I fully support this very meaningful programme. I would like to ask MEWR for an update on the status and progress of this programme, and also on how many more projects are slated to be implemented in this coming financial year under the programme. As Whampoa also has a stretch of river, I have also been asking it to be included under the programme. May I also ask whether we can be included this year?”
“The Tripartite Alliance for Fair Employment Practice (TAFEP) was set up to promote fair employment practices and to help echo discrimination at the workplace. This work is important both to register the tripartite resolve to maintain fairness in the labour scene, as well as to investigate into reported cases of discriminatory practices vis-a-vis national laws and guidelines. I believe that we can do even better. For example, besides urging companies to stay on the right track of fairness, can TAFEP play a more proactive role in enabling companies to better manage and unleash the full potential of a more diverse workforce that comprises employees of an increasingly wide spread of ages, experiences, qualifications, nationalities and expectations? I say this because I believe that this is key to our national drive to transform our economy and productivity performance. Progressive employment practices are no longer "nice to have" items on this journey of ethical management, innovation and competitiveness. Technology, technical skills and equipment aside, the critical ingredient in separating winners from the others is how they galvanise the human spirit towards unity and excellence. Doing so is easy to say but it is very hard to achieve. Page: 95 I, therefore, would like to ask for MOM's plans to enhance the work of TAFEP to include the promotion of progressive employment practices and, thereby, make a more direct contribution towards national economic and social transformation. Strengthening Tripartite Alliance for Fair Employment Practices”