Jessica Tan Soon Neo
Singapore
“Thank you, Mr Speaker, and I thank the Senior Minister of State for his comprehensive reply. I am also very happy to hear that the Ministry of Manpower (MOM) will continue to review that. I agree with the writer that structurally, there are some challenges, and productivity is important.”
“And as global supply chains re-organise, how are we positioning Singapore as a trusted, stable hub so that businesses continue to choose Singapore, create good jobs and keep our economy strong?”
“Caregiving is not only a financial load. It is a time load and a well-being load. Employers have a role to play as well. Incentives for caregiving friendly workplace policies, such as caregiving leave, flexible hours and phased return-to-work schemes, would encourage more companies to adopt practices that keep caregivers employed and prod…”
“I thank the Senior Minister of State for her reply. The reason I am asking this is because I have seen an increasing trend of appeals with regard to these kinds of issues, especially mould caused by continuous use of air-conditioning by neighbours.”
“Mr Speaker, I do have a clarification for the Senior Minister of State. He says that the AV is not relevant for retirees. I would say it is relevant with regard to CareShield Life premium because the assumption is that people only retire at 67.”
“Yet, we must ensure that Singaporeans understand that CareShield Life does not stand alone. It is complemented by a suite of targeted schemes like MediSave Care, which allows monthly withdrawals for care expenses; the Home Caregiving Grant, which offsets informal caregiving costs; and the ElderFund, which provides discretionary support fo…”
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Every one of 823 lines we hold for Jessica Tan Soon Neo, in date order, each linked to its source. Free to read, in full, without an account. Page 14 of 17.
“Mr Speaker, Sir, thank you for allowing me to speak on this Bill. Before I begin, I would first like to declare my interest as I work in the infocomm industry. With most privacy frameworks around the world, "notice and consent" either have, or are perceived as having, become the dominant means of data protection. The data ecosystem is more complex than ever before. The growth of e-commerce, the explosion of social media, the evolution of cloud computing, the emerging world of "big data" and analytics, have caused industry, Government and community stakeholders to look at the need for new governance models for the collection, use and security of data. By understanding what it means to live in a highly-connected, technology-driven and data-rich world, we can craft principles that remain effective in protecting privacy but allow us to reap the benefits that only big data can bring. There is an increasing realisation that while still important, relying heavily on individual notice and consent is not sustainable, given the huge increases in the sheer volume and flow of information. It also places too much burden on the individuals who may not have complete information or knowledge in making the choice or, as my colleague Mr David Ong has said, whether they actually do take the effort to understand what is required before consent is given. To that end, we need to find a balance to allow for flexibility, transparency and confidence in these governance models; flexibility to the changes in technology, transparency around its collection, and confidence that the data will be used in a way consistent with our expectations.”
“Sir, I would like to ask a clarification with regard to the calibration of EPs and S Passes. Rightly so, companies are recognising the need to adjust, and in the process of adjusting and calibrating – as these are higher-skilled workers that many of their businesses are dependent on – will the Ministry also look at flexibility in allowing for extra time, in terms of short extensions, to allow them as they look for new workers to also do skills transfer, especially for EPs?”
“I would like to ask the Minister about the real wage increase and also better quality jobs. Can Minister share on whether there have been Singaporeans taking up these better jobs that have been created, and also what has been the real wage increase in terms of the jobs that have seen real wage increase?”
“I would like to ask a clarification centering around PMET training. I think more needs to be done in that space with regard to making Singapore a place where companies will, because of the talent base and the skills of PMETs, want to operate out of Singapore, whether large or small. And I think that is something we did not hear much about. Yes, there are more funds for PMET training, and there is more focus on it. But what exactly is being done to ensure that we are up-levelling the large base of skilled Singapore employees that we have, so that they stay relevant and can participate, and also be an attractor of companies to operate here?”
“He said that they used to just use the simple printing machines but because now the focus on productivity, the message is clear, he has actually bought a duplex machine. Now, at least for the same number of workers he has, he can do more printing and faster. But he also, in the same breath, shared with me that what he also saw was a decrease in the use of foreign workers, which is a good thing. But in that short time frame, to train the local workers or to be able to find local workers willing to do the kind of work was difficult. The strain then became on the local workers to work longer hours to produce the same amount of work. So, yes, their real income would increase with more overtime chalked up but there is an impact on the quality of life as well. We need to look at the balance of both in the short term. I think in the long term, this company is trying to move into that direction but in the short term, the impact is being felt. Hence, what measures does the Minister see as effective in addressing the challenges of the tight labour market whilst still being able to capture the opportunities for growth in the labour-intensive industries like F&B and hospitality? The overall dependency ratio for all categories of foreign workers, as we understand, will remain unchanged. Has MOM seen companies continue to hire to the dependency ratio or have they now reduced their numbers because of the higher costs? Quality of foreign workers”
“Mr Chairman, much has been said about the increase of the foreign worker levy and the impact on businesses. With the recent announcement to further raise the levy, the message is clear to companies, that they need to upgrade their operations, train the workers and reduce dependency on foreign workers. Businesses in Singapore do have high dependency on foreign labour with about 80,000 to 100,000 inflow of foreign workers every year. With the increase in the levy for foreign workers, which was introduced in July 2010, I would like to ask the Minister to share on the impact it has had on managing the high dependency on foreign labour. Has there been an effect on the quality of the foreign workforce in Singapore and what is the impact on the resident workforce? With the levy increase and focus on productivity and higher skills, has MOM seen the mix of foreign labour change? Has the profile of the foreign labour changed and are they of higher skills? Can the Minister share any early insights on businesses or sectors that have been able to manage the dependency on foreign workers while still being able to grow and capture the market opportunities through attracting local talent or successful measures to improve productivity for their businesses? As Mdm Halimah Yacob has talked about earlier, with the concept of total productivity – have we seen that from companies rather than just a focus on labour? Recently, at the Budget debate that I did with residents in our constituency, one of our residents actually said to me it is good that there is focus on raising the foreign worker levy because his company has finally decided to invest in machinery to help – he is in a printing company.”
“Despite the limited time, I must thank Minister Lim for sharing with us and responding to the questions that we have raised, sharing with us in a comprehensive manner about high performance Government, and looking at accountability. I was glad to hear about collaboration and an inclusive Government. We look forward to the Data.gov.sg co-creation initiative with first-stop portal as well as the One-Inbox because I think the One-Inbox definitely will be addressing not just the collaborative Government but really looking at how to make citizen interaction more effective. We also appreciate the measures that were shared with us with regard to continuing to make Singapore a competitive place to do business as well as developing capabilities in accountancy. So, with that, Sir, I beg leave to withdraw my amendment. Amendment, by leave, withdrawn. The sum of $598,335,700 for Head M ordered to stand part of the Main Estimates. The sum of $144,626,400 for Head M ordered to stand for part of the Development Estimates. Head K – Ministry of Education Educational policy and social mobility”
“While we continue to drive business-friendly processes and simplification for businesses to operate in Singapore, what more can be done to enable a competitive and conducive business environment to support greater innovation and sophistication of our companies and make Singapore the most competitive economy, both in Asia and globally? Export-Import (EXIM) Bank”
“Mr Chairman, Singapore remains one of the world's most competitive economies according to several reputable rankings. The World Bank has, for the last five years, ranked Singapore as the best place to do business. In early 2010, Singapore was also ranked as the most competitive economy in the world by Switzerland's IMD Business School in its 2010 World Competitiveness Yearbook, ahead of Hong Kong and the US, highlighting Singapore's resilience through the financial crisis despite the challenges on the volatile economic conditions we faced. The World Economic Forum's Global Competitiveness Report 2010/2011 has also recognised Singapore as the third most competitive economy in the world, after Switzerland and Sweden, and Asia's most competitive economy with our strong institutional environment, market efficiencies and quality infrastructure. Singapore was ranked highly for our goods and labour market efficiency and our financial market sophistication. It has, however, highlighted that to further strengthen Singapore's competitiveness, there could be stronger adoption of the latest technologies and policies to enhance the sophistication of our companies. Switzerland's economy, which is ranked first, is characterised by an excellent capacity for innovation and very sophisticated business culture. It has high spending on R&D and its scientific research institutions are among the world's best. The strong collaboration between academia and business sectors ensures that much of the research is translated into marketable products and processes reinforced by strong intellectual property protection. So, can Minister share the various pro-business measures that are in place to continue to foster a favourable business environment to support businesses operating in Singapore?”
“However, one feedback from the citizenry we hear from time to time has been on occasions, public funds have not been well accounted for in some of the Ministries with procedures that can be further improved. There were also occasions when Ministries have overspent their budget for projects, such as the recent Youth Olympic Games, and evidence of wastage has been detected during audit exercises. When such incidents are reported in the press, it affects public confidence in our processes. As such, I would like to ask the Minister, what are the initiatives for instilling discipline within public agencies? What measures are taken when there are instances of over expenditure from the amount budgeted for? Another related issue is with regards to the management of mega projects. In recent years, I can see that public development projects are getting larger and more complex. These include the development of the new MRT lines which may need to go deeper underground and are more complex. I would like to ask the Minister if there is a framework in place to ensure proper and prudent management of these mega projects. Perhaps the Minister can also share with the House examples of such measures. Collaboration through e-Government”
“Our expenditures have increased to 14.5% of GDP in the last five years. As Minister had shared in the Budget Statement, our expenditures are expected to increase further to 16.5% of GDP over the next five years. These projects are large and complex requiring sizeable financial commitments over the next five years. Can Minister share the measures put in place to ensure strong management of these projects to achieve intended outcomes and meeting fiscal accountabilities? How will fiscal disciplines be maintained while allowing for flexibility in the approach? Many of these projects are multi-year and, as we all know, the requirements will change and will need to be incorporated while managed effectively to ensure that the intended outcomes are achieved. Many of these projects will also require the whole-of-Government approach as they will involve multi-agencies to achieve the outcome. For example, the Remaking Our Heartland (ROH) projects will involve HDB, LTA, NParks, PUB, NEA, the Sports Council and even the Heritage Board, to name a few. What is in place to facilitate this collaboration and ensure effective and productive use of resources? How would we track our progress towards achieving the outcomes outlined in the Singapore Public Sector outcome review? What will the indicators of success be, as we are looking over a multi-year period? Fiscal prudence Assoc. Prof. Dr Muhammad Faishal Ibrahim (Marine Parade): Sir, it is widely known that our Civil Service is held in high regard by both the public as well as its counterparts in the region and other parts of the world.”
“Sir, I beg to move, That the total sum to be allocated for Head M of the Estimates be reduced by $100. Over the last week, as we debated Budget 2011 and in the various Committee of Supply discussions, the focus has been on productivity and building capability. As Minister Tharman has said, we are stepping up investments to transform Singapore into a high-capability economy and a global city that stands out for its liveability. So can Minister share how effective public agencies have been in achieving productivity gains? In December 2010, in the Singapore Public Sector outcome review, the Government outlined six broad strategies to take Singapore forward and how public agencies can work together to achieve these goals. The report recognised the need for the whole-of-Government approach to tackle issues rather than having each agency deal with a specific area. While agencies are effective and efficient in each of the areas of responsibility and competency, there is an increasing need to work across agencies to address the complexity of situations and scenarios that face us at the national and at the citizen level. Can the Minister share the progress that the Government has made to drive the whole-of-Government approach to achieve the strategic outcomes for effective citizen services and national issues? What measures have been put in place to ensure accountability across agencies? In the Budget debate, I had raised a question on our fiscal position given the several large projects in the pipeline: projects announced by the Government from our transport infrastructure, upgrading projects to rejuvenating our heartlands, our lifestyle projects and investments to further improve our health and educational systems to serve the need of Singaporeans.”
“Sir, first of all, let me thank the Minister, Senior Minister of State, Minister of State and Senior Parliamentary Secretary for providing us with the insights on the policies and sharing with the various strategies. We have covered from productivity, innovation for companies all the way to energy and even orchids. We looked at the needs of industries, SMEs, MNCs as well as the consumers. Thank you for that insight. It was heartening to hear from the Minister that apart from the policy approach, there clearly is a lot of thinking around the enabling aspects and it is at all levels: the economy, the sector, the firm and worker. With that, I beg leave to withdraw my amendment. Amendment, by leave, withdrawn. The sum of $655,126,100 for Head V stand part of the Main Estimates. The sum of $7,432,227,600 for Head V stand part of the Development Estimates. Head L – Ministry of the Environment and Water Resources Sustainable development”
“Sir, I would like to ask the Senior Minister of State with regard to the strategies for the efficient use of energy. I know he talked a lot about pricing and pricing it right to ensure that we drive the right behaviours. Beyond pricing, have we looked at other strategies in terms of use of technology, innovation, timely information-sharing to both industry and households to enable and develop more efficient energy consumption behaviour?”
“Mr Chairman, I would like a clarification with regard to the commercialisation of R&D. Could the Senior Minister of State share more about the IP framework in terms of how we will support and encourage development of IP in Singapore? He talked about commercialisation of IP, but could he share a little more about the IP framework to encourage companies to develop and base their IP in Singapore?”
“Mr Chairman, with the recent crisis in the Middle East and Northern Africa, what are the implications for Singapore's energy supply? We would expect that with the disruption in supply, oil prices will be pushed up and add to the inflationary pressures that Singapore is already experiencing. Singapore is highly reliant on energy imports, and any disruption of energy supply and prices will affect our industries and households. We have a developed market with high energy intensity and consumption. Our lifestyles and industries are extremely energy intensive – from our communication devices to entertainment, transportation industry. All aspects of our lives require energy. In fact, if we had a disruption for just a few hours in Singapore, I think you just cannot imagine what that would be. Can the Minister share our strategy to ensure Singapore's energy supply resilience and security? What innovations are we investing in for alternate energy sources and sustainability? Both in the short term and longer term, what measures are we taking to address these challenges and implications for Singapore and companies that operate in Singapore?”
“I think this is one area that we really, really need to invest and step change that because our whole economic reliance is actually shifting towards services, and that is an aspect that I really like to understand what more are we doing in terms of investing and really bringing that step change and know-how into this space. When we talk about leading in the industry and for Singapore to take the lead and we talk about innovation and productivity, I really go back to my point about the whole partnership of industry as well as the Government. I do not like to say this, but I think as much as our Civil Service likes to be able to help and lead the industries, the Civil Service cannot do it alone because they just do not have all the know-how. And, therefore, the partnership with industry, the sectoral approach, both at the services level as well as at the industry level is going to be very critical. Sir, I really like to hear about the progress and the strategies going forward. Access to the growth markets of Asia”
“Really, if we want to look at businesses being productive, if we look at BIM, for example, one company doing it will not have productivity. But actually it is the whole supply chain, the whole eco-system of construction companies, their suppliers, their eco-system. I have spoken to businesses and what they have asked for is help to really drive the sectoral-level changes because that cannot be done with one company. So I think that is the thing that will be required in the near future if we really want to accelerate it. The Budget has also introduced the $850 million Enterprise Development Fund (EDF) to support enterprise growth in the next five years. Businesses welcome the EDF and are hopeful that the EDF will help them as they expand internationally. Can the Minister share details on the EDF and the criteria and how companies can qualify and tap on the EDF? With the increasing role of the services sector in our economy, service excellence is key in ensuring that companies remain competitive and that they are able to raise service standards to continue to win and retain customers. What is the progress that we are making in this aspect? What initiatives are in place to ensure that we can step change and differentiate the level of service standards of companies in Singapore? It is great that we have MBS. It is great that we have great restaurants, eateries and we bring these great entertainments to Singapore. But what is more important is really the experience, the experience of both Singaporeans and visitors when they use these services.”
“Sir, I beg to move, That the total sum to be allocated for Head V of the Estimates be reduced by $100. Mr Chairman, as we have heard in Budget 2011 and the discussions over the last few days, Singapore's economic success over the next 10 years will depend on how companies operating in Singapore innovate and raise productivity to stay competitive to drive sustainable growth. With the constraints and challenges companies face with regard to access to labour and increasing cost of doing business, there will be adjustments required of businesses. These adjustments may be painful for businesses as they may involve structural changes that will take time to materialise. So what I like to ask the Minister is that looking beyond the funding support, can the Minister share the strategies that are in place to assist businesses in Singapore to make the changes required to innovate and increase productivity? Funding, while crucial for innovation, is not sufficient and actually what is more important is know-how. There has been much discussion on having much more targeted programmes and in having sectoral level approaches to achieving the intended impact. Can the Minister share the status of these sectoral initiatives? What roles do trade associations and chambers play in these sectoral programmes to help businesses? Because as Senior Minister of State Grace Fu has shared on the construction industry in the previous COS discussion, what drives innovation in construction is that it really requires know-how, investments and the ability for the industry to really take the lead in technology and implementing technology. Actually, there is a bigger piece to be played. There is also the whole supply chain.”
“Studio apartments are an excellent option for lower-middle income households. However, for those in the middle- and upper-middle income group, most manage with the help of a foreign domestic worker. It is not cost efficient for these households to try to independently resolve their needs requirements. I would like the HDB to consider the idea of an executive condominium concept for assisted living. These will be like the retirement communities in the United States where elderly residents own their own homes – they could be studios or 1- or 2-room apartments – which are located in a private community with on-site offices to provide for three key needs: healthcare, cleaning and nutrition. These will be affordable because if the HDB takes this up, these homes can be provided at cost. They will not be seen as "grey ghettos" because they will be private condominiums with security and maintenance. With the actualisation of studio apartments, the details and process for administration of these housing types, that is housing types with shorter lease terms, are already in place. We now need to extend the concept to a condominium setting and give older Singaporeans, who can afford better options, feasible options. We cannot depend on private developers to fill this gap as land cost in Singapore is too high. A for-profit model will result in pricing such establishments out of the reach of most Singaporeans. I hope the Government will see this as social enterprise and a service for ageing Singaporeans. The hallmark of a truly great nation is one where her citizens can look forward to graceful ageing and ageing-in-place, where community ties will be cherished and nurtured.”
“Considering the existing network of road systems we have, how does MND and its agencies decide on approval given for certain developments, such as residential high-rise buildings within this network? Let me illustrate with an example. In Haig Road/Tanjong Katong area, at least 10 new condominium developments have come up in the last two years. When approval was given to these developers, how were the issues of congestion, road bottlenecks, utilisation, access to the surrounding facilities and amenities taken into consideration? Assoc. Prof. Paulin Tay Straughan (Nominated Member): The ideal family structure that manages both childcare and eldercare is the three-generation family. However, as with the emergence of contesting norms and demographic challenges, we have to accept and prepare for a society where older members will grow old in their own homes, either alone or with an aged spouse. The proportion of singles is set to increase. For those who marry and have children, normative shifts result in the preference for nuclear families, especially among the younger married couples. In addition, with globalisation, many young Singaporeans now have the privilege of working overseas and living away from their parents. Taken together, this means that we have a growing pool of empty-nesters – retirees who are likely to have sufficient set aside for retirement and who own larger homes (4-bedroom HDB flats and better homes) and, therefore, this group enjoys the potential of downsizing to a smaller unit to facilitate ageing-in-place. As they grow older, they will need assistance to manage everyday activities to facilitate ageing-in-place. Currently, there is a gap in the market when we look at assisted living facilities.”
“Mr Chairman, with our increasing population and density in Singapore, as we push towards continual growth and progress, how do we ensure that we can continue to provide a conducive living environment and sustain the quality of life for Singaporeans? We will continue to see growing demands on our limited land, increasing stress on our infrastructure, for example, roads, trains, common living areas. Will our homes get smaller, roads get more congested, train and bus rides get more crowded, noise levels increase, and amenities in common areas being built in closer proximity? With physical intensification, the chances of conflict increase and tolerance levels will be tested. What measures are in place to ensure that as we drive economic growth and upgrading for Singapore, this is not done at the expense of the quality of living environment for Singaporeans? How will we ensure that we will continue to be able to meet the changing needs of our community and provide Singaporeans with healthy living environment, and personal and social space? While we drive more productive use of land, what are the criteria that are used to assess that living conditions are conducive and the quality of living is maintained? Land and infrastructure planning Assoc. Prof. Fatimah Lateef (Marine Parade): Mr Chairman, being a small country, land is scarce and a precious commodity. Thus, Singapore is planned as a compact city. The majority of our housing developments are built at high densities and we even carry out reclamation of land by extending our coastline. How is the coordination done on land allocation, whether it be for residential, parking, commerical or other social facilities? What are the strategic formulae to ensure our diverse land needs are met for balanced and sustainable growth?”
“Mr Chairman, with the recent trend of shoe box units supply in the market, many Singaporeans are rushing to buy these small units despite the substantially high price per square foot (psf) of these units. This could be in part due to the fact that the shoe box units are small and the amount of money that they have to pay for the units may not be seen as high. Purchasing a house is not a trivial investment. While recognising that individuals should make their own buying decisions, can more be done to help Singaporeans make informed choices? Do buyers fully understand what they are buying? As reported in today's Straits Times, a recent URA analysis of views of industry researches suggests the market could see a surge of new homes, both public and private, in the next two to three years' time, given the good supply of units in the pipeline. Can more be done to provide more information to buyers to help them appreciate market demand and supply situation to enable them to make better buying decisions, whether for occupation or investment? This will definitely complement information of what they see and hear from the agents, or hear in the marketplace, and ensure that there is a better matching of supply and demand of housing. A well-functioning property market”
“I would be very happy to take up her suggestion and get PSD to get in touch with her. Indeed, Public Service officers work very hard, and often long hours so that Singaporeans can enjoy good service and Singapore can grow and progress. We do try to take care of their well-being. We have implemented work-life and family-friendly measures for many years such as childcare leave and staggered working hours. Other work-life measures include flexible work arrangements such as telecommuting, no-pay leave and part-time work. We also offer marriage, maternity, paternity and childcare leave to enable officers to spend time with their family. But we cannot be rigid in applying these measures. Each agency has its own needs and requires flexibility in implementing measures that best suit them. In fact, the Public Service Division has adopted a Blue Sky policy for PSD itself, where on Fridays, officers are encouraged to leave the office by 6.00 pm while the sky is still blue, while there is still sunlight. But we are careful not to make such a scheme mandatory. Some officers may prefer to finish their work so they have less to worry about before heading out for a big weekend, starting late on Friday night. But for those who prefer to leave by 6.00 pm, they can do so without guilt. Notwithstanding this, I do share Assoc. Prof. Straughan's point that we can do more to create a more work-life friendly culture in the Service and we will do more to do so. PSD will help agencies better implement the measures that we have and educate supervisors and officers on the range of flexible work arrangements that we have available.”
“These 3Cs are underpinned by a culture that embraces change and continuous improvement. All our public agencies have come on board the 3Cs strategy last year. The Permanent Secretaries and Heads of Agencies will be personally responsible for driving the 3Cs in their respective organisations. The Ministry of Finance and the Public Service Division will also coordinate central efforts to drive inter-agency collaboration for our productivity push. 3.45 pm Mdm Halimah also asked about re-employment of older workers. The Public Service recognises that older workers form an important part of its workforce. Over the last two years, 2009 to 2010, 1,400 officers or eight in 10 retiring officers have been offered re-employment and 83% accepted. Of those who accepted, four in 10 were re-employed at last drawn pay while the remaining had their wage adjusted to reflect the value of the jobs. No Employment Assistance Payment (EAP) was paid as these guidelines were only finalised early this year. Our approach is to focus on getting officers re-employed so that the payment of EAP would be minimised. One important emphasis is to engage officers at least six months before their retirement so that they have ample time to make their decisions. We have various ways of helping retiring officers. One is that the Public Service Division (PSD) launched a special module in the careers portal, Careers@Gov, for officers to deposit their resumes, search for job opportunities and apply for Public Service jobs. For the small number of officers who cannot find a suitable public sector job, the Public Service will help them with job search skills, training and networking opportunities. Assoc. Prof. Straughan had various suggestions, very interesting ones, on work-life balance.”
“So Mr Low should not be surprised that the Civil Service pay, with significant variable components, has moved up this year in line with the economy, as we moved down in the last two years in line with the economy significantly. In fact, Mr Low welcomed such a variable pay structure for the Civil Service. Let me now move on to other aspects of the Civil Service that the Members have brought up. Ms Jessica Tan asked about diversity in the Public Service. We value diversity in views and experience, and welcome mid-career officers who have worked in the private or people sectors. This group has grown from 49% of newly-appointed officers in 2008 to 54% in 2010. These were the new officers coming in. We have also introduced internship programmes for junior college (JC), polytechnic and undergraduate students. We would, of course, be delighted if they eventually join the Service, but if not, at least they have gotten a first-hand experience of public sector work. Mdm Halimah asked about public sector productivity. Our public sector has been consistently well rated internationally. But notwithstanding this, the Public Service is making a concerted effort to improve productivity by enhancing organisational efficiency. Our strategy is summarised as 3Cs: Customer-centric, Connected and Creative government. Customer-centric government is about understanding our customers better and taking their perspectives into account in designing policies, regulations and services. Our agencies should also operate in a more connected manner, so that our customers can benefit from an integrated approach to policies and services.Our agencies also need to be more creative, by allowing new ideas to surface and experimenting with them quickly.”
“The Supplementary Estimates that Mr Low Thia Khiang referred to on Monday are, therefore, a reflection of the way that our variable salary system is designed to function, falling and rising in line with the GDP. All this was fully explained and debated in this House when the Government last made major salary revisions in 2007, and there has been no change to the system since then. In 2007, Mr Low Thia Khiang took part in the debate and he said: “While we accept that basic salary may be benchmarked broadly with the private sector in line with international best practice, we believe that performance pay should also be introduced to establish a visible correlation between performance and pay. Currently, the Civil Service has no financial bottom line in ensuring good outcomes, although part of the senior officers’ salary is linked to GDP growth. " Sir, as Mr Low Thia Khiang said: "... while it is necessary to link a percentage of salary to performance, it is also imperative to provide a performance regime whereby it is possible to discriminate performance for non- performers or under-performers, and to reward them accordingly". And, Sir, in this respect, Mr Low added, "I welcome the adjustments in Ci vil Service pay structure just announced by the Minister.” That means, by me. So, Sir, we can see that Mr Low accepted two key principles – benchmarking to the private sector and variable performance-linked pay. These are two key important principles and although we had discussions of which models to follow and what KPIs to follow, I think that we appreciate Mr Low’s acceptance that benchmarking to the market and variable pay is, in fact, the way to go.”
“As announced last year, a Special Variable Payment (SVP) of 1 to 1.6 months will also be paid in March 2011, to those with good performance. By design, the annual remuneration of senior officers contains a significant variable portion dependent on the officer’s performance and that of the economy. The more senior officers, including Ministers, have more variable annual salary packages. The main salary component for senior officers that varies with economic growth is the GDP Bonus. GDP Bonus is zero if GDP growth is 2% or below, but accounts for a maximum of one-quarter of the annual salary of senior officers, or eight months, when the GDP growth exceeds 10%. This links the annual salary automatically to GDP growth which makes it more responsive to actual market rises and falls than having the salary relatively fixed. Hence, during the downturn in 2009 and 2010, no GDP Bonus was paid. This contributed to a 18% to 22.5% reduction in annual salaries of senior officers for the two years. This year, in 2011, based on the exceptionally high 2010 GDP growth, officers will get the maximum rate of GDP Bonus. Nevertheless, I should emphasise that their total annual salaries, including all the variable components, remain within the market benchmarks, and that was the way the salary structure was designed. Annual salaries of senior officers have therefore moved down for two years and up again, in line with our policy of keeping pace with, but not leading the market. For 2011, we expect GDP growth to be lower than 2010, hence, in all likelihood, GDP Bonus paid next year will be lower, too. These are year-to-year fluctuations, and not permanent pay increases.”
“Together, we can make the Civil Service a most "happening" destination for Singapore's brightest and best and the civil servant will surely evolve into a cool icon for Singapore. The Deputy Prime Minister and Minister for Defence (Mr Teo Chee Hean): Sir, let me first address Ms Jessica Tan’s question on talent attraction and retention. In 2010, the Singapore economy recovered strongly and the labour market tightened. The resignation rate for the Civil Service rose, from 3.5% in 2009, to 4.7% in 2010. For the Management Executive Service, resignations rose in 2010, with attrition rate highest at 17% for the younger graduate officers. To attract and retain able and committed officers, Civil Service wages must be competitive. Salaries are therefore benchmarked against the private sector. Civil Service remuneration fell during the recent recession. But as private sector wages rise, the wages of civil servants must also rise. Otherwise, we will lose capable officers and suffer an overall decline in the quality of the Civil Service. In June last year, the Civil Service raised starting salaries for the Management Executive and professional schemes. We also made significant revisions to Legal Service salaries, especially for the younger officers, to ensure that we retain good officers despite a hot market for lawyers. We are also restoring the cuts to annual increments made during the downturn. Overall, the annual salaries of civil servants this year, ie, in 2011, will return to the pre-downturn level in 2008. Variable salary components which fell during the recession have increased in tandem with the strong economic recovery. An Annual Variable Component (AVC) of 1.5 months (plus a $300 one-off payment) was paid to all civil servants.”
“To reduce the opportunity cost, I urge that we should revisit the performance-based evaluation system and set clear and fair measurable indicators of what constitutes good work. The existing system is too competitive – outstanding performance depends on who runs faster and further. We should have a fixed distance platform and reward those who manage to work more efficiently within office hours. We should not encourage those who insist on going the extra mile at the expense of a healthy social life. To avoid the stress induced by short-term goals where performance outputs are measured year-on-year, where applicable, we should set a two- or three-year cycle for performance evaluation. Sustained good work is best measured in more meaningful longer-term cycle. How do we stop die-hards from overworking? To protect private time, have a mandatory shut-down once a week. I suggest closing the office at 5 pm on Friday evenings. Lingerers will be forced to leave the office and be allowed to return only on Monday morning. In this way, the organisation can also save on electricity. To facilitate the broadening of social circles, the Social Committee of each unit will be tasked to organise activities for weekends. For example, wine and cheese at The Fullerton, bring a friend and enjoy the sunset. The KPIs for the Social Committee will be very specific: how many events were organised, the attendance for both employees and friends, and feedback from the attendees. Once all these are put in place, we will just pray over them and leave nature to take its course. I challenge the Civil Service to trial this holistic approach – I will even offer my services free-of-charge to Deputy Prime Minister Teo.”
“Mr Chairman, in the war for talent, the Civil Service too needs its fair share of talent, not only for policy-making and good governance but also talent that understands and is able to support a diverse population and the execution of effective policies. With the competitive talent market, both in Singapore and internationally, does the Prime Minister see the Civil Service as being able to create a conducive and stimulating environment to attract talent and enable them to pursue their interests and ambitions? What has the impact been on the recruitment and retention of talent in the Civil Service? What is the attrition rate of this talent? How effective has this talent been, in enabling the Civil Service to achieve positive impact and quality service for Singapore? In Budget 2011, we have been stressing that for Singapore to continue to drive sustainable growth, businesses must innovate and be productive. What has been done in the Civil Service to drive innovation and what has been the impact on rising productivity? A diverse talent base is becoming an important factor in the business strategy of many organisations to support innovation and to understand the needs of the market. Does the Civil Service share this view? And does it have a diversity strategy and is it viewed as a crucial part of the talent strategy? Arrest marriage decline trends Assoc. Prof. Paulin Tay Straughan (Nominated Member): Sir, the root cause of ultra-low fertility is late marriage. How can we improve the infrastructure to make it conducive for singles to invest in courtship? I think I may have the answer in a three-pronged approach: reduce opportunity cost for not overworking, protect private time, and broaden social circle.”
“There is higher expenditure on the ageing society including projects like the Jurong General Hospital, the enhancement of the quality of health services by increasing the number of doctors, nurses and allied health professionals and the upgrading of long-term care sector as announced in the Budget. With all these projects in the pipeline, what is the overall fiscal position versus the expenditure required? Will revenue be sufficient for the long term? Will there be a need to raise taxes? Will we expect to see the GST increased? Sir, Budget 2011 is an inclusive Budget with measures that address the concerns of Singaporeans on the rising cost of living while making investments to strengthen our society and build capability to grow real income of Singaporeans. To be successful in achieving these objectives, there is a need for partnership with industries and Singaporeans. The Government cannot do this alone but will play a crucial enabling role. The Government must continue to provide the vision and the environment for Singaporeans to contribute and to share in the success of Singapore’s progress. Sir, with that, I support the Budget. 12.38 pm”
“For some young graduates, even after working for a few years, they are unable to purchase a home with the high private property prices and are also unable to qualify to purchase an HDB flat. For many, this affects their decision to settle down and to start a family. Before I end, I would like to ask a question on our overall fiscal position. There have been several large pipeline projects announced by the Government to make Singapore a top quality home. For example, in the area of our transport infrastructure, there are projects like the Downtime Line (DTL) Project, Eastern Region Line (ERL), Thomson Line (TSL) North South Expressway (NSE) and the Marina Coastal Expressway. Ten billion dollars, as announced by the Minister, will be spent over the next 10 years for the Neighbourhood Renewal Programme (NRP) and the Home Improvement Programme (HIP), and the Remaking of our Heartlands (ROH) Programme in Hougang, East Coast and Jurong Lake. In the area of lifestyle, there are also several large projects like Gardens by the Bay, the Active Beautiful Clean (ABC) projects, National Arts Gallery, and the new commercial and lifestyle hubs in Jurong Lake District as well as Kallang River and Paya Lebar. There are also several large projects for tertiary education, for example, the Singapore University of Technology and Design (SUTD), the Singapore Institute of Technology, the Polytechnic expansions, the Imperial College London-Nanyang Technological University Medical School, and the third ITE Regional Campus. There are also the Upgrading Programmes for Schools with the Primary Education Review and Implementation (PERI) and for the provision of the Indoor Sports Hall for Schools.”
“5 million and the setting up of the new Community Silver Trust of $1 billion with matching grant for donations to the long-term care sector will also be important to help catalyse community support and the capability of the long-term care sector. The announcement of support programmes to provide additional support for low-income elderly people to improve their mobility and independence, for example, the assistive devices like wheelchairs and walking frames, are definitely welcomed. The Special Employment Credit (SEC) for workers currently covered by the Workfare Scheme will encourage employers to attract and keep older workers, and this will help our older workers who want to work and can work stay employed and active. During our Budget dialogue with residents, the concern of medical cost was raised with emphasis for the elderly. Although many recognise that Budget 2011 is inclusive, with rising cost of living and the impact of inflation, retirees who do not participate in the economy and depend on their savings and CPF may not fully benefit from the Budget measures. The question is how CPF and savings of retirees can be protected from inflation to meet the retirement needs of Singapore? Another area that was highlighted during Budget discussions with residents that I had was housing. The feedback was that there should be more aggressive and out-of- the-box measures to address housing. Some felt that the 2011 Budget had not done enough for the sandwiched class in the area of housing. For example, the HDB income ceiling is still $8,000 for many years, yet salaries and other costs have increased. The suggestion is for the Government to consider raising the income ceiling for first-time buyers to purchase HDB flats.”
“There are sentiments that this year’s Budget is a budget for the SMEs and there were very little measures to assist larger businesses to enhance Singapore’s international competitiveness as a location to do business. While I do agree that the measures of Budget 2011 will benefit smaller companies more, we must not forget that SMEs do form an important backbone of the economy and are key to the ecosystem for MNCs and larger companies to succeed in a market. In fact, many MNCs when making a decision to locate their operations in a country, do consider the capability of the local ecosystem of companies to support their businesses. However, I do agree with the point that was expressed that we need to continue to enhance Singapore's international competitiveness as we are an open market and we do have to compete for business with other markets, especially in Asia. I will now like to touch on the measures in the Budget that look to strengthen our society. With Singapore’s population ageing, it is imperative that the Budget measures address long-term elder care to provide our seniors with the best care possible to stay healthy and active in their retirement years. Apart from continuing the investments for new acute care hospitals, building on the long-term care sector to provide comprehensive and quality care for the elderly beyond institutional care is crucial. I am glad to see that the Budget measures will take a more integrated approach to build expertise and resources for care in the community and home-based care for the elderly and disabled. This will allow the elderly and the disabled to stay active and continue to be close to their families and friends. The topping up of the ElderCare Fund to $2.”
“This was shared with industry and drove innovation and productivity. HDB can also set the "benchmark" to drive productivity by requesting and awarding construction tenders to companies who innovate and use more productive methods. There were also other measures introduced to support enterprise growth. The $850 million Enterprise Development Fund (EDF) which will be available over the next five years, to be administered by SPRING and IE Singapore, will help high-growth industries in their overseas expansion. This is a substantial increase of about 45% from the previous five-year programme. Foreign tax credit pooling will simplify and reduce the taxation of foreign income. This will support companies that are globalising and earning a larger share of their income overseas. The Budget also touched on several initiatives to catalyse trade finance solutions to better support the needs of SMEs which will be announced later this year. So aligned to this subject, I would like to discuss the Angel Fund investment deduction scheme that was introduced last year. This was a welcome initiative for capital investment. The feedback, however, has been that the conditions make it difficult to qualify for the scheme. The application process for a maximum tax savings of $50,000 in two years is also an administrative challenge. The request is to simplify the angel investor tax deduction scheme and to increase the investment ceiling. This would make Singapore more attractive for high net worth investors to help build an ecosystem for SMEs to tap on funding required for growth.”
“Unlike larger companies, SMEs may not be able to absorb the increase in levy as easily. There was a concern that some small companies who are effective may be "pushed out" of the economy as a result of the inability to absorb the impact of the increase in cost in the short term. Another suggestion was for the Government to assist SMEs by allowing quarterly payments instead of monthly payments of levy charges. This will help the cash flow of SMEs. There was a suggestion to amend the levy such that it only impacts new recruitments and not the existing pool of foreign workers already hired and assigned to projects. This will help companies maintain stability and manage their current projected cost of operation. What companies require is clarity and certainty to allow them to plan their operations. The foreign worker levy changes will impact longer-term, multi-year projects that companies have already contracted for and are committed to. Another suggestion is to improve the image of some jobs to attract more locals. Reference was made to the skilled plumbers in Australia and skilled workers in Japan. There was also suggestion for the Government to apply the "productivity rule" to foreign talent and foreign workers. As the intent is to grow capability of companies and to ensure that when companies do hire foreign workers, they are productive. The suggestion is to consider allowing the levies collected to be pooled together and the funds tapped into for the training for foreign workers. This will help increase the effectiveness of the foreign labour and improve productivity of companies. Another suggestion is for the Government to take the lead on improving the productivity in the various industries and sectors. HDB's implementation of pre-cast is a very good example.”
“But for businesses, I must say that there were, however, mixed reactions to the Budget. Challenged with rising cost, the rise in foreign worker levy and the restoration of the employers' CPF contribution rate by 0.5% were met with some disappointment. While businesses recognise the need to innovate and increase productivity to reduce the dependency on low-wage foreign workers, and the need to restore CPF contributions to workers in better times, the short-term impact of these will result in the rise of the cost of doing businesses. Especially for current labour-intensive industries, it may not always be possible to realise productivity changes in the short term. So not only will they face a rise in costs, they may be challenged with filling jobs with the tight local labour market, and in some industries, as we all know, the unwillingness of Singaporeans to do these jobs. This may impact their ability to meet their operational requirements to keep their businesses and services running. The impact of the foreign worker levy increase will be felt most by smaller businesses as they face greater challenge and competition in this tight labour market to attract and retain talent. It is therefore important that the impact of the effectiveness of this policy be monitored over time to check if it is achieving its original stated objectives. During the several dialogues and feedback sessions that we had with business leaders, there were suggestions made for the refinement to the foreign worker levy scheme to support the longer-term objective of productivity and capability building of businesses. One suggestion is for the Government to roll out a tiered approach to the levy increases as it may not be easy for some companies to cope with the cost increase.”
“There are several measures in the Budget to benefit all Singaporean households under the "Grow and Share" Package, eg, the Workfare Special Bonus, U-Save and Service and Conservancy Charges (S&CC) rebates, personal income tax rebate of 20% capped at $2,000, to help offset inflation as well as permanent shifts in taxes (eg, the removal of the radio and television licence fees), subsidies and support given to benefit all, with continued emphasis on benefiting the lower-income more. The inclusion of benefits to the "sandwiched" middle-income group was well received. I was pleased to see the restructure of the personal income tax schedule to make it more progressive. Some may argue that this increases the complexity of the tax schedule. But this allows tax savings to be enjoyed at all income levels, and especially the middle income that form 60% of households. I must also make mention of the efforts made in this Budget to do away with the need for the application of some of the rebates and top-ups, hence, making it easier for Singaporeans to benefit from these measures. Generous but fiscally prudent. I cannot reiterate how many times the Minister had reminded me of this prudent position. The $4 billion will be put back into the past reserves, which were drawn earlier to fund the Jobs Credit Scheme and the Special Risk-Sharing Initiative under the Resilience Package. Past reserves had allowed us to act decisively during the economic crisis and it is fortunate that we are able to put back what was drawn earlier. This will ensure that we can continue to build on past reserves for future generations of Singaporeans to benefit from. The one-off income tax rebate for businesses and SME cash grant were appreciated by businesses.”
“It is heartening to see that the feedback was taken seriously. Generous enhancements have been made to PIC in this year's Budget. The enhancements to PIC allow for flexibilities in the categories of investment/activities which companies can enjoy tax deductions for investments that they make as well as the amount of tax deductions. This has been increased to 400% of expenditure up from the 250% for the first $400,000 spent on each qualifying activity. What this means is that for every dollar that a business spends on innovation/productivity, they are effectively getting 68 cents subsidy for that expenditure. What is required now is to ensure that there is greater awareness amongst companies especially the smaller ones of schemes like PIC. This will ensure that they use the schemes to build and innovate and ensure that there is capability for their businesses for the long term. I believe that awareness of this scheme is still not extensive enough. The Budget measures gear towards building inclusive growth and recognise that while sustained growth is key for Singapore, it is not sufficient. I was particularly pleased that the Minister reiterated the need for inclusive growth to enable all Singaporeans to be able to contribute and to share in Singapore's progress. I had mentioned previously in this House that we must ensure that all Singaporeans are able to aspire and can achieve better quality of lives for their families, regardless of individual circumstances/status. We must never reach a stage as a country where dreams and aspirations become out of reach of any sector in our society.”
“"A People's Budget", "An Inclusive Budget with something for everyone", that is the general reaction for Budget 2011. Mr Speaker, thank you for allowing me to join in the Budget debate. In the various dialogues that we have had over the last week and from the feedback received, the measures in the Budget that addressed the rising cost of living and the focus on inclusive growth are welcomed. Many share the view that Budget 2011 is good and generous and I would like to thank Minister Tharman Shanmugaratnam for this. But as with all Budgets, and in typical Singaporean style, I will say that there is always a desire for more and suggestion on areas for refinement, and I will touch on this in my speech. Measures in the "Grow and Share" Package to address the rising cost of living and inflationary pressures faced by Singaporeans by helping to offset the increase in household expenditure (especially for the lower and middle income) are indeed welcomed. I am glad to see the continued focus on building sustainable growth, capability of businesses and a skilled workforce with the emphasis to significantly increase real wage for Singaporeans by 30% in 10 years. In our discussions with businesses, many asked for the continuation of existing schemes for innovation and productivity, eg, the Productivity and Innovation Credit (PIC) scheme which was introduced last year. This will allow sufficient time for businesses to better understand the scheme and realise the impact of the efforts to raise productivity as this takes time. The feedback was that PIC, while useful, was complex. The request was for the scheme to be more flexible and easier for businesses to utilise, and to increase the scope of the scheme for greater impact for companies.”
“If it is set at the wrong level, it might actually have repercussions; set at the right level, it might give the worker the right amount of additional income but that can be achieved in other ways. I think Workfare, WIS, these are measures that effectively achieve that objective without taxing the employer and without discouraging the employer to hire the worker. Another thing about minimum wage: it does not guarantee the worker. We talked about income inequality, we talked about Gini coefficient. We always worry about whether that is going to be too high or too low. I think it is a factor we have to consider and we must still consider it but, again minimum wage does not guarantee that we will narrow the income gap. Therefore, I believe that CET and opportunities creating and ensuring that we sustain the growth opportunities will empower workers to take advantage of the opportunities and therefore be able to share and enjoy inclusive growth. If Members would allow me to end my speech with a quote from the United Nations International Policy Centre for Inclusive Growth. I quote: "Inclusive growth implies participation and benefit sharing; participation without benefit sharing will make growth unjust; and sharing benefits without participation will make it a welfare outcome." With that, Mr Speaker, Sir, I support the motion. 4.54 pm”
“I have done some work with the Society for the Physically Disabled and with the Infocomm Accessibility Centre. I must tell you that we always think giving help is the right answer. I will say that I am firm believer that enabling is the best answer; and that is why I am a believer of CET and a firm believer of enabling. The Government plays an enabling role. The Infocomm Accessibility Centre focuses on training and finding employment for physically-disadvantaged individuals who still has capability and this was focused on the IT industry that I am in. I spoke to some of these individuals who managed to get jobs. I asked one young lady, a web designer. She said to me when I gave her the certificate and congratulated her that what was the most enlightening for her was the ability after she acquired the skills to apply for a job, competing with able-bodied Singaporeans or maybe non-Singaporeans for that matter, and she got the job on her ability, earning the same income that an able-bodied person was going to make. There was no special concessions needed for her but what we needed to give her was this accessibility to training and ensuring that she played on her strengths. I can give Members many examples and I think Members have heard many examples. Of course, we can tell the other side, too, when people struggle. On the point of minimum wage, I would just like to touch on this point. I am not going to debate on the pros and the cons, but I am going just talk about why I am against minimum wage. I do not think it will work because it does not necessarily change the condition for the worker.”
“There will also need to be social support and sound governance to provide social safety nets to mitigate the effects of external and sometimes transitional life changes and shocks that all individuals go through and, especially for the chronically poor, to meet the minimum needs and break the poverty cycle, I believe there are many measures available today. I want to emphasise on the topic of – beyond access and participation – hope and aspirations for Singaporeans. The concept of meritocracy has been frequently used to describe the Singapore system. At the risk of sounding incorrect, I would however point out that it is more than meritocracy that has made Singapore what it is, and it has allowed many Singaporeans to improve their lives and those of their families. Singapore, as all of us know, is a small nation, dependent on its people and talent. It has often been described as the improbable nation, the Little Red Dot. The areas that I touched upon – the intervention that the Government has put in place and needs to continue to put in place like sound policies on investments in education, health, the social support networks – must be deliberate to ensure that we sustain the environment and growth for Singaporeans to have the opportunity to enjoy and have inclusive growth. I want to stress that true inclusive growth is not just about equal income distribution. It must mean that all Singaporeans will be able to continue to aspire and can achieve better quality of life for our families regardless of individual circumstances or status. We must never reach a state as a country where the dreams and aspirations become out of reach of any segment of our society. I do not think we will be there. I will give you an example.”
“Government intervention and support for CET in a holistic manner like what we saw with SPUR during the economic downturn was an effective policy intervention to help us ensure that we not only drove inclusive growth, but addressed the needs of the lower income. To drive a culture of a mindset change of encouraging workers to stay relevant requires programmes like SPUR and now the expanded CET system to be continued. This will help workers participate and capitalise on new opportunities that are available. While we look at the quality of CET centres, resources and programmes, we must ensure that they address the changing demographics and diversity of the workforce and business requirements. CET must be comprehensive and targeted in approach and focus on employee training and development that is aligned to the market demands. To ensure a mindset change in attitude towards CET, I want to stress that a holistic approach like the one that SPUR took, was important because it is not about just employees being trained and the impact on employees but also the impact on employers. In order for employers to be encouraged and enthused to have their employees trained, they need to be able to manage the impact to the disruption to work while the employee is being trained and also the financial impact. I think that programmes like IGP will also help to encourage employers to recognise and change jobs, re-design jobs, but that also requires employees to be trained and their needs to be CET.”
“Mr Speaker, Sir, I rise in support of the motion. Inclusive growth must mean high and sustainable growth that leads to the following: availability of good quality jobs for Singaporeans and access for Singaporeans to participate in this growth, to take advantage of the job opportunities and enjoy the fruits of the growth. There must also be access to quality education and healthcare for all Singaporeans to ensure that Singaporeans will remain relevant and have the ability and health to participate effectively in the economy. Mrs Josephine Teo talked about the need to focus on the low-wage worker. As much as the progress we have made, this is an important point because the lower 20% does still face challenges in terms of income level. However, I think that we also must not just focus on that one group because there is also, as Mrs Josephine Teo said, the no-wage worker. People who are to date not effectively in the economy, but have the ability and the opportunity to be. They may not be in the job cycle today because they have been displaced and we need to also look at that. So while we do ensure that there are quality jobs, we must also ensure that our workers are adaptable and stay relevant to be able to be suitable for these jobs. I believe that the emphasis and the strategy on quality education, together with the focus on Continuing Education Training (CET) in Singapore, is important for inclusive growth and sustainability. Singapore is an economy in transition and we are working on addressing the changes and the opportunities of the global market. Here is where, I believe, the role of Government is key.”
“If this is the case, we asked whether it was fair to deny Singaporeans from drawing their CPF savings. So, it is not that we object.”
“One other group that I feel that is not addressed in this Bill – and probably it is a much bigger discussion – is the contract workers. It is important for us to recognise that as companies increasingly move to contract work, this Bill and this Act does not cover that group. There are also older workers in this group. How do we help them if they choose and want to work beyond 62 or the retirement age? What framework is there for them to be able to also get some re-assurance that there will be re-employability? I believe that the amendments proposed in this Bill and the objective of encouraging and enabling the re-employability of older workers are also beneficial for employers as they provide them access to that pool of valuable labour. At the same time, it will provide the option for employees who wish to work and want to work and are able to work beyond the retirement age, the ability and the framework to be able to be re-employed. But I also point out that it is important to ensure that this spirit is realised in the actual implementation of the policy as I believe that it will encourage greater trust and confidence between employers and employees. With that, Mr Deputy Speaker, I support the Bill. Mr Low Thia Khiang: Mr Deputy Speaker, I wish to make a clarification. What we said was not so much of opposing the Bill as a framework for re-employment after the retirement age. But we noted that the Bill also empowers the Minister to, via Gazette, increase the retirement age from 62 to 67, which means that that will also affect the draw-down age for CPF savings. We simply asked if this Bill is not something which provides job security for workers who have reached the retirement age.”
“I hope that the example of SATS and companies which have adopted similar practices with regard to the criteria used for fair wages for older workers helps to highlight that just because a worker turns a year older, it does not necessarily mean that his or her value and contributions to the organisation decrease. On the part of employees though, I also hope that there will be a recognition that there may be situations for them to be open and flexible to changes in their jobs. These changes may not be due to the fact that they are not performing, according to the criteria we talked about, but these are the criteria for productivity. It could mean that the market conditions have changed and, therefore, job scopes may need to change. So, re-training may be required, jobs may need to change and then re-deployment may need to happen and, therefore, adjustments and flexibility on the part of the employees are also necessary. There is one more point that I would like to touch on. I think the hon. Members, Mr Low Thia Khiang and Ms Sylvia Lim, have touched on this point. They had concerns about re-employability and they talked about the CPF and the ability for workers to draw on the CPF. The point is that we all recognise that there is a need for workers to have sufficient funds. So whether the workers are allowed to draw on the CPF or not, I think the point is about re-employability. What is the Member's recommendation if he is not supportive of re-employability? What if a worker wants to work? What options does he have for re-employability? What framework and assurance does he have that he can be re-employed if these recommendations are not adopted? I would like to hear the Members' views on this and the recommendations.”
“It is this last point of fairness and the spirit of re-employment that I would like to touch on. As mentioned, the amendments proposed in the Bill and the clarity of the guidelines thus help in providing a framework for fairness for both employers and employees. However, as is often highlighted, the effectiveness and impact of any policy is really in the implementation and the actual execution of these policies. For example, before making downward wage adjustments, when employees reach the minimum statutory retirement age, I do hope that employers will review their wage and benefit policies and not just make automatic downward adjustments. The Retirement Act, as it stands today, has already given employers the legal right to adjust wages downwards for workers who reach the retirement age. However, as many companies have moved or are moving to the performance-based wage system, adjusting workers' pay downwards when they reach retirement age may not be fair if they meet the criteria of at least satisfactory work performance and are medically fit to continue to work. I think MOM has reiterated this point about the fact that it should not be automatic in terms of wage adjustments downwards. A positive example is the Singapore Airport Terminal Services (SATS) as many Members have mentioned. This was reported in the Straits Times on 5th January 2011, where SATS made a decision to move away from an automatic 10% cut to determine wage adjustments for their workers who turned 60 years of age to ensure a fair remuneration and benefits policy based on performance.”