Josephine Teo
Singapore
“The Government's risk-calibrated approach to data security in artificial intelligence (AI) systems was explained in a written reply, given on 9 January 2024, to related questions asked by Dr Tan Wu Meng and Mr Gerald Giam.”
“Access to frontier models is helpful for specific use cases, such as advanced research and cybersecurity. However, these form a small proportion of artificial intelligence (AI) demand. For most industry, Government and research uses, capable models are already available.”
“The Government tracks the development of technical standards for identifying artificial intelligence (AI)-generated content, including watermarking and digital provenance approaches, as part of broader efforts to manage AI-related risks.”
“Upon receiving a valid report of intimate image abuse, the Commissioner of Online Safety is empowered by law to direct Online Service Providers (OSPs) to disable access by Singapore users to the specified harmful online material. This direction may be extended to cover identical copies found on the platform.”
“The Government is committed to keeping children safe online. We have announced plans to extend age assurance requirements to designated social media services, including requiring platforms to keep users under 13 off their services.”
“Under the Online Safety (Relief and Accountability) Act 2025, the Commissioner of Online Safety is empowered to issue directions to platforms to remove specified harmful content, including intimate image abuse.”
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“The Ministry of Manpower (MOM) has been actively engaging employers to inform them about the new requirements under the Work Injury Compensation Act (WICA). We have advertised the new requirements in mainstream newspapers and social media platforms and provided resources on the MOM website to guide employers. Together with the Singapore National Employers Federation, National Trades Union Congress, U Small and Medium Enterprises, and the Singapore Institution of Safety Officers, we have briefed close to 2,000 employers, human resource practitioners and safety officers in the past two months following the passing of the WICA amendments. We have also worked with them to disseminate information regarding the new requirements to their broader membership base. We will be briefing more employers in the coming months. Through the mandatory Settling-in Programme for foreign workers, we have been educating workers that they should approach their immediate supervisors if they sustain work injuries. We have published guides in the workers’ native languages and have been working with partners, such as the unions, to raise awareness. On the question of errant doctors, we received seven complaints in the last three years, of which four were referred to the Singapore Medical Council (SMC). They are pending SMC’s investigation. We do not track the outcome of civil claims, although the Commissioner of Labour awarded compensation to about 45,000 WICA claims in the last three years. We will continue to refer cases of suspected professional misconduct by doctors and lawyers to SMC and the Law Society of Singapore respectively for investigation and disciplinary action.”
“The unemployment rate of resident professionals, managers, executives and technicians (PMETs), which is released annually, fell from 3.1% in 2016 to 2.9% in 2018. The 2019 PMET unemployment rate is not yet available. However, latest available data suggests that there are still job opportunities for PMETs. As at June 2019, there were over 28,000 PMET job vacancies. Total employment grew by 22,400 in the third quarter of 2019, largely in Community, Social and Personal Services, Professional Services and Information and Communications, sectors where PMETs make up the majority of the workforce. From January to August 2019, Workforce Singapore (WSG) and its partners placed 11,700 PMETs through the Adapt and Grow (A&G) initiative. Nonetheless, there are PMET segments we are monitoring closely, such as mature PMET jobseekers, and those who are long-term unemployed. These groups may face greater challenges entering new jobs due to more cautious hiring and mismatches in wage expectations or skills. Under the A&G initiative, WSG provides a range of programmes to address such mismatches. For example, the Career Support Programme provides salary support to employers who hire long-term unemployed or mature retrenched PMETs. There are currently over 100 Professional Conversion Programmes (PCPs) which provide employers with training and salary support to reskill and hire mid-career local jobseekers. These programmes provide higher support to mature or long-term unemployed jobseekers. WSG is working closely with economic agencies and companies to increase capacity for PCPs as well as to pre-emptively retrain workers at risk of retrenchment so that they can take on new jobs within their companies.”
“Our Central Provident Fund (CPF) system aims to help members meet three basic needs in retirement – housing, medical care and day-to-day spending. The bulk of members' CPF contributions goes into the Ordinary Account (OA), which may be used to buy a home. MediSave helps them pay for MediShield Life premiums and major medical expenses not covered by insurance. The primary purpose of Special and Retirement Accounts (RA) savings is to ensure that members have a stream of retirement payouts to fund basic day-to-day spending. Generally, members can only use their RA savings for housing after setting aside their Basic Retirement Sum. However, the CPF Board does exercise flexibility on a case-by-case basis. Over the last five years, CPF Board approved around 80% of such appeals per year on average. These are mostly cases where some of members' OA savings had been transferred into the RA when they turned 55. To help members whose appeals were rejected, CPF Board works with the Housing and Development Board (HDB) to assess if other more appropriate forms of assistance can be provided. For example, HDB may consider reducing or deferring the housing instalments to help flat owners who have difficulty repaying their HDB loan.”
“For example, they can access information on industries and occupations as well as other resources on MySkillsFuture to chart their career development. They can also search for jobs best suited to their skills on MyCareersFuture. Although businesses are facing greater uncertainty, the advance third-quarter labour market data indicate that employment continued to grow in sectors, such as Professional Services and Community, Social and Personal Services. MOM and MOE are monitoring the labour market closely and will ensure ITE and polytechnic graduates are well supported in their job search.”
“Mr Speaker, most Institute of Technical Education (ITE) and polytechnic graduates continue to do well when they enter the labour market. In 2018, around nine in 10 graduates who entered the labour market were employed within six months after their final examinations. This figure has remained stable for the past 10 years. Notwithstanding economic headwinds, overall employment has continued to grow and job vacancies remain available for ITE and polytechnic graduates. The Ministry of Manpower (MOM) and the Ministry of Education (MOE) have various ways to help our students prepare for and find employment. ITE and the polytechnics run structured and comprehensive career guidance programmes to help graduating students make informed employment choices. In addition, we offer SkillsFuture Work-Study programmes for Diplomas and Post-Diplomas. These allow ITE and polytechnic graduates to deepen their industry-relevant skills even as they pursue further academic education. In January this year, Workforce Singapore (WSG) rolled out the Career Starter Programme, comprising workshops and personalised coaching to help both graduating ITE and polytechnic students and fresh graduates boost their job search skills and be more employable. The Career Starter Programme complements existing Education and Career guidance efforts in schools by targeting final-year graduating students who may require additional support when seeking employment. After leaving ITE or the polytechnics, graduates can also find assistance at WSG's Careers Connect or the National Trades Union Congress' Employment and Employability Institute career centres. They may also tap on online resources, such as MySkillsFuture portal and the MyCareersFuture digital service.”
“Childcare leave is a statutory entitlement. While childcare leave requests are subject to employers’ approval, employers should grant them unless they have good reasons for not doing so. Any employee who thinks that he or she has been unreasonably denied childcare leave should report the employer to the Ministry of Manpower (MOM). Over the last five years, MOM has not received any case where an employee had applied for childcare leave and the employer had unreasonably rejected the application. If a report is filed, MOM will look at the specific circumstances of each case and determine if childcare leave has been unreasonably withheld.”
“In 2016, the Ministry of Manpower (MOM) introduced the Advance Placement Scheme (APS) to reduce the time taken for households with urgent caregiving needs, such as eldercare and/or childcare, to hire foreign domestic workers (FDWs). There are currently 32 employment agencies (EAs) on APS. The EAs on the APS are carefully selected based on their track record and training plans for their FDWs. In addition, MOM also monitors carefully the number of FDWs placed successfully by the EAs through APS. On average, about 3,000 prospective FDWs were brought in under APS each year. The vast majority (90%) of them were successfully matched with employers. For the remaining 10%, the EAs will make arrangements to send them home. There is another scheme, the Eldercarer FDW Scheme administered by the Agency for Integrated Care (AIC), which specifically helps households that require FDWs trained in eldercare. There are currently 55 EAs under the scheme. Households that require faster deployment of their FDWs can also select EAs participating in APS. There are 15 EAs that are on both APS and the Eldercarer FDW Scheme. Since the introduction of APS, MOM has progressively expanded the number of participating APS EAs to meet the demand from households. MOM will review APS regularly to ensure its effectiveness.”
“There are also many ongoing efforts by EAs and non-governmental organisations (NGOs) to promote a positive working relationship between employers and FDWs. The Association of Employment Agencies Singapore gives out awards to honour and recognise FDWs and employers who have maintained healthy long-lasting relationships. NGOs like the Centre for Domestic Employees (CDE) and the Foreign Domestic Worker Association for Social Support and Training (FAST) also organise fun and social activities to encourage bonding between FDWs and their employers. CDE and FAST now also offer dispute resolution services to help employers and FDWs work out their disagreements. Many of our employers do make the effort to ensure that their FDWs are adjusting well. An FDW survey conducted in 2015 showed that the vast majority (97%) of FDWs were satisfied with working in Singapore. MOM will continue to work with EAs and NGOs to promote a healthy working relationship between employers and FDWs.”
“A healthy and strong working relationship requires the cooperation and effort of both employers and foreign domestic workers (FDWs). An important first step towards this is improving the chances of employers being matched with FDWs who can suitably meet their household needs. With this aim in mind, the Ministry of Manpower (MOM) recently announced that from October 2020, employers and employment agencies (EAs) will be provided with more information on the past work experience of prospective FDWs to help improve matching outcomes. This would include the FDW's previous job scope, the residence type and household size of the FDW's former employer, as well as the FDW's reason for leaving her past employments. Besides these efforts, MOM regularly reaches out to employers and FDWs through electronic direct mailers and newsletters that often feature best practices and tips on how to develop good working relationships through mutual understanding and support. For first-time employers and FDWs, entering into a new work arrangement entails substantial adjustment. This is why MOM requires all first-time employers of FDWs to attend the Employers' Orientation Programme (EOP), which helps them understand their roles and responsibilities as employers. The EOP emphasises the importance of developing a good employer-FDW relationship and reminds employers to be understanding and patient when guiding FDWs on their household chores and integrating them with the family. Similarly, first-time FDWs have to attend the Settling-In-Programme, which introduces them to the social norms in Singapore and teaches them how to maintain open communication with their employers.”
“Members are likely to have a combination of means to fund their retirement, of which the Central Provident Fund (CPF) is a component. The others include private savings, housing monetisation through the Lease Buyback Scheme, as well as support from their family. Nonetheless, with the Basic Retirement Sum (BRS) designed to provide members with monthly payouts in retirement that cover their basic living expenses, the BRS attainment is one indicator for retirement adequacy. Over the last decade, the proportion of active CPF members attaining their cohort BRS at age 55 has improved from about two in five to more than three in five. We are optimistic that retirement adequacy will continue to improve for younger cohorts. Among other things, their CPF balances have grown with rising incomes and labour force participation. This can translate to higher CPF monthly payouts in retirement. In fact, a recent study by the Ministry of Finance showed that the median real income of younger Singaporeans born in the 1970s was double, compared to those born in the 1950s when both were in their 40s. The younger generation also had a labour force participation rate 10% points higher. As a result, the median real Ordinary and Special Account CPF balances of the younger generation was three times higher than the older generation, with balances at the 20th percentile more than seven times higher.”
“The Ministry of Manpower (MOM) attended to about 60 re-employment disputes annually between 2016 and 2018. The extension of the re-employment age from 65 to 67 in 2017 made more workers eligible. This, together with heightened awareness on re-employment rights and obligations, may explain the recent uptick of disputes. Nonetheless, the number of re-employment disputes remains very small relative to the number of employees aged 60 to 691, with fewer than one in 3,000 employees filing reports with MOM. The disputes were mainly over whether employees met the performance criteria or the medical fitness required for re-employment or dissatisfaction with the re-employment terms offered. Close to 70% of the cases handled by MOM were resolved through mediation, with the remaining mostly withdrawn. About four cases each year proceed to adjudication. The tripartite partners are committed to achieving productive longevity in Singapore. Even as our workforce ages, it can remain competitive and adaptable. While employees need to have the right mindset and be willing to pick up new skills to adapt to the changing environment, employers should redesign jobs and provide the necessary training to their older workers. This will minimise re-employment disputes and ensure that older workers continue to thrive in the future economy.”
“I thank Assoc Prof Daniel Goh for his clarity and, in the goodness of time, if this should come to pass, I hope he will give his strong support, too. [(proc text) Question put, and agreed to. (proc text)] [(proc text) Bill accordingly read a Second time and committed to a Committee of the whole House. (proc text)] [(proc text) The House immediately resolved itself into a Committee on the Bill. – [Mrs Josephine Teo.] (proc text)] [(proc text) Bill considered in Committee; reported without amendment; read a Third time and passed. (proc text)]”
“Deputy Speaker, I thank Mr Ang Hin Kee for following up on this suggestion. Mr Ang knows the taxi drivers very well. I think he fully understands that when the issue of PML insurance was raised in discussions with them, the issue of cost and who will bear it, was prominent in their minds. Mr Ang is correct to point out that the cost has to be carried by someone. It is potentially the company that leases out the taxis. But he is also very right to say from the taxi companies' point of view then, it is entirely possible that they choose to recover these costs through higher rental costs which would impact the drivers without necessarily giving them an opportunity to recover this cost from the commuters which is why, I think, our thinking is not to be hasty about making PML insurance compulsory. I think the fact that the individuals choose to be SEPs, we have to give them the ability to decide for themselves what kinds of protection are relevant to them. If they were comfortable with the present arrangements and do not see much need for this kind of protection to be made compulsory, it may not be right for us to insist on it for now. Keep in mind the vast majority of SEPs, including taxi drivers and private hire car drivers, have chosen this livelihood as a preference. It does not mean that all of them do not wish to move into regular employment. So, our approach right now is to keep it voluntary and then, with a good base load of insured persons – in fact, the insurance premiums could be brought down, and if the insurance premiums have been brought down, then to the SEPs, they will do their sums and see whether it is useful to them, considering the benefits that come with it.”
“For members reaching milestone ages, CPF Board provides personalised face-to-face guidance as part of the CPF Retirement Planning Service. This is available to members turning 54 or reaching their payout eligibility age of 65. Members who have attended these sessions found it very helpful. Over 97% said that they would recommend it to others. CPF Board has also recently redesigned its mobile app, giving members easy access to their CPF details and transactions like making top-ups. About 350,000 members use this app. We are also constantly updating our outreach. For example, CPF Board will be putting out a series of educational posters in housing estates to clarify common CPF misconceptions. We are working with the Silver Generation Office to engage older members. We will also link these members up with other Government agencies, if necessary, such as the Social Service Offices, HDB or the Ministry of Health. In summary, Deputy Speaker, communicating CPF has been and will remain a top priority for us. We welcome suggestions from Members of the House on how we can do better. With this, Deputy Speaker, I hope that I have addressed Members' questions and suggestions. And with your permission, I beg to move.”
“Many members still prefer one-on-one discussions about their specific circumstances. For most members, their first point of contact will remain one of our five CPF Service Centres in Bishan, Jurong, Maxwell, Tampines and Woodlands. In 2018 alone, these centres received one million customers. On average, that is nearly 800 every day at every service centre. Staff at these service centres are equipped to engage members in vernacular languages, even in some dialects. To bring CPF services nearer to members, especially the elderly, CPF Board sets up mobile service centres. These mobile centres move around to a new heartland location, usually the Community Centre (CC) or library, every two months. Members can make enquiries and perform a range of CPF transactions without having to travel to a service centre. In 2019, mobile service centres were set up at six locations – Kampong Chai Chee CC, Yew Tee CC, Geylang Serai CC, Bukit Merah CC, Toa Payoh Library and the one currently running at Potong Pasir CC until the end of this year and, of course, Nee Soon CC can be considered, too. Since this initiative started in 2016, more than 36,000 have been served. For those who prefer phone clarifications, they can contact the CPF call centre. The call centre is staffed by experienced CPF officers who can manage queries in a variety of languages. In 2018, the call centre received about 660,000 phone calls. That is about 2,750 calls per day. Other communications that go directly to members, such as the package members receive at age 55, or letters on their RSS or CPF LIFE payouts, have been simplified and enhanced over the years. Where the member is required to take action, this is clearly indicated for the member's attention.”
“In 2019 alone, CPF Board conducted over 60 engagement sessions for more than 6,000 grassroots leaders (GRLs) and residents. The Board trained 300 GRLs in 2019, enabling them to reach out to more than 3,000 residents right in their neighbourhoods. I would like to especially commend grassroots advisors who have been proactive in organising CPF briefings for their GRLs and residents. Dr Maliki Mohamad, for example, has personally conducted 10 sessions in Siglap and engages his audience with flipchart diagrams and slides. I think this must be continuing in the good tradition of former Minister Lim Swee Say who was just here earlier. He also conducted many sessions in the whole of Bedok area where he serves as a Member of Parliament. Ms Foo Mee Har has personally done six briefings this year alone in Ayer Rajah. Mr Murali Pillai and Ms Sim Ann have actively supported CPF ground engagements in Bukit Batok and Bukit Timah. I personally have done more than 20 sessions in Bishan North and joined in sessions organised by advisors like Er Dr Lee Bee Wah. These sessions go a long way in educating the public about CPF schemes that are relevant to them and clarify their doubts. CPF Board also conducts talks that target member segments, such as young members who have just started work, the self-employed and employers. The talks cover topics that are most relevant to each group, such as housing matters for young members who are purchasing their first homes. To provide members some idea of the materials available, CPF Board has compiled information packs which are available for your collection in the Parliament Library. Thirdly, besides mass media and segmented outreach, CPF Board uses direct personalised communications.”
“On top of all that, members may be included in the many Government schemes administered by CPF Board on behalf of other agencies. Such schemes include the Workfare Income Supplement, Silver Support Scheme, MediShield Life, Goods and Services Tax Vouchers and so on. At the same time, CPF rules have to evolve to stay relevant. Quite often, new rules have to co-exist with old ones to honour commitments to older members. As a result, even when family members compare notes, they may get confused. Let me assure members that CPF Board is constantly striving to communicate better. This is done at three levels: through mass media channels; segmented outreach; and direct personalised communications. First, mass media. CPF Board uses multiple media channels to reach out to as many Singaporeans as possible and increase their understanding of CPF. The Board conducts regular campaigns, including in vernacular languages, to clarify details of schemes, such as nominations and top-ups. The Board also uses social media to share bite-sized information with followers. Besides Facebook and Instagram posts, video series explain retirement issues in a light-hearted, easy-to-digest manner. Second, segmented outreach. The Board tailors its content to the needs of various groups. Ground outreach in the heartlands is especially important. For example, many of us would have seen CPF Board's Retirement Planning Roadshows in our neighbourhood centre or mall. These roadshows are held over five weekends across the island. This year alone, the roadshows received about 170,000 visitors. To further expand its reach, CPF Board also works with other agencies and grassroots organisations.”
“Shorter payout durations mean higher payouts but this comes at the expense of increased risk of outliving those payouts. In 2018, more than half of Singapore residents aged 65 were expected to live past 85 years old. This means that if RSS payouts ended just after 20 years, at age 85, more than half – the majority – of RSS members may have no CPF payouts for their remaining lives. In comparison, extending RSS payouts until age 90 at most will protect up to two in three members from outliving their payouts. This provides a reasonable level of assurance for members, while still increasing their payout amount as compared to the current RSS rules. Members also have the option of joining CPF LIFE before the age of 80 if they are personally worried about outliving their RSS payouts. To Members of the House, I seek your help to reassure your residents of the following, that there is no change to when they can receive their RSS payouts. Those who are 65 today can instruct CPF Board to start their payouts anytime. With the new rules, members already receiving RSS payouts will either get the same or higher payouts. No one will get a lower payout than they are already receiving. Members who are on CPF LIFE will not be affected at all and will continue receiving monthly payouts for life. Mr Speaker, let me say something about helping members understand how CPF works for them. The CPF caters to 3.9 million members, and 150,000 employers interact with it regularly. Each member and employer is unique. Most members at different times of their lives interact with CPF Board on housing, healthcare and retirement matters. They may also use their CPF savings for investment, education and insurance.”
“Mr Patrick Tay also asked if SEPs who are concurrently employees are still required to make CAYE contributions. Well, they are actually no different from people who hold two employee jobs. The employee will also make two streams of contributions from the two jobs. Keep in mind, however, that for all members, there is a cap on total CPF contributions. SEPs who are concurrently regular employees will not need to contribute beyond this cap if they make an application to CPF Board. So, if they want to cap it and treat it as though he was one regular employee only, they can apply to do that. We will also study Assoc Prof Walter Theseira's suggestion on allowing SEPs to vary CAYE contribution rates according to their income peaks and troughs. I must say that I find that a very interesting idea. Let us study how we can implement it. To summarise again on CAYE, there is no change to the CPF obligations of SEPs. We are simply breaking up the contributions into smaller, more manageable parts as and when the SEPs earn. Only a small proportion of SEPs are part of the pilot. These SEPs can choose to opt out and set the CAYE contribution rate to zero if they have contributed to their MediSave in full or are keeping up under an instalment plan. We have also not taken a decision whether to extend CAYE any further. Let me deal with other feedback. We will always welcome feedback on how to make our CPF system better. Therefore, I would like to thank Members of Parliament who shared their feedback on the Retirement Sum Scheme (RSS). Mr Zainal Sapari asked if members could have the option to end their payouts even earlier than what it is today. We are primarily guided by life expectancy.”
“Some of the factors used by our Courts include the degree of control exerted by the company and its ability to decide on the hours of work. I think the concept is not very different from dependency. MOM has applied this approach to determine the classification of work arrangements. For example, MOM reviewed the contract arrangement of online matching platforms, such as food delivery riders from Deliveroo or FoodPanda. Based on the factors spelt out by the Courts, the workers were assessed to be self-employed. But as Mr Ang Hin Kee pointed out, depending on actual work arrangements, some of these workers could be employees, too. So, the employees and the SEPs can co-exist on work that look very similar. We really need to drill down into the specific work arrangements and we are committed to doing so. In cases where employees have been misclassified as "Self-Employed Persons", please be assured that we will take the employers to task. In one case which we handled recently, a transport and logistics company was issued with a stern warning and had its work pass privileges suspended for misclassifying its driver as an SEP. Based on our investigations, the driver was in effect an employee because his employment terms indicated an employer-employee relationship in terms of the amount of control that the company exerted. The company was asked to rectify and pay back the worker what he was due, including CPF contributions. Mr Patrick Tay asked about the number of SEPs who provide services to the Government. SEPs tend to be concentrated in certain industries which the Government does not regularly procure services from, for example, real estate agents and insurance agents. So, the 3% should not be considered alarming in any way.”
“I should say that, currently, the Government has no plans to extend CPF contribution obligations for SEPs to the Ordinary and Special Account. However, we will continue to encourage voluntary CPF contributions from SEPs. Assoc Prof Daniel Goh's suggestion on incentives to boost retirement savings is really not new. It is something we have been studying and I hope to be able to give Members an answer in the goodness of time. Ms Jessica Tan, Mr Zainal Sapari, Mr Ang Hin Kee, the Labour Movement and leaders of the SEP associations suggested providing support for SEPs when they participate in CAYE. As I had said earlier, the Government is studying their suggestions seriously and will provide more details when ready. Ms Jessica Tan and Mr Zainal Sapari also raised an important concern that SEPs may face cash flow constraints as they transition to this new scheme. We will allow SEPs to opt out if they have been keeping up with their contributions. For the small group of about 600 affected SEPs who are not keeping up, CAYE will certainly help them to avoid snowballing arrears. If any one of them needs additional support, we are prepared to help based on the specific circumstances. We can, for example, look at their instalment plan and see whether there is room to stretch it out. Mr Patrick Tay, Assoc Prof Daniel Goh and Mr Ang Hin Kee raised the question of whether SEPs can be reclassified as employees, if I heard the Members correctly. Let me just explain that the Singapore Courts have given clarity on determining whether an individual is an employee or an SEP. The difference is Contract of Service or Contract for Service. Those are the technical references.”
“Also, for some of the SEPs, it will always be the case that they assess that their risks are very low and they would rather not have to incur the upfront costs of PML. To complete the follow-up to the Tripartite Workgroup's recommendations, we are now piloting CAYE. The pilot allows us to try out this new system among a small group of about 6,000 SEPs, gather feedback from users and iron out any glitches, as Mr Ang Hin Kee pointed out. Mr Patrick Tay, Ms Jessica Tan and Mr Zainal Sapari asked if CAYE could be extended to the private sector. Mr Arasu Duraisamy asked if they can volunteer instead. Currently, there are no plans to extend CAYE to the private sector. We can decide later, depending on the results of the pilot. But those who wish to volunteer are welcome to approach us to explore. Similarly, we can consider Mr Patrick Tay's suggestion to explore extending the scope of the Trade Unions Act to SEPs if supported by the associations. Assoc Prof Walter Theseira is in favour of extending compulsory CPF contributions to Ordinary and Special Account savings. But he also said in the goodness of time, but not 24 years. As I was listening to him, Assoc Prof Daniel Goh's expression of concerns about SEPs' retirement adequacy came to mind, and I wondered if he or the Workers' Party has a view on Assoc Prof Walter Theseira's suggestion. Does the Member also feel that in order to boost retirement adequacy for SEPs, he would support and would call for the extension of their contribution obligations to the Ordinary as well as the Special Account? It would be interesting to hear from the Member, since he expressed a concern about SEPs' retirement adequacy.”
“I would humbly remind him that, actually, sometimes the buyers of services of SEPs are individuals like you and me, such as the plumber that comes to the home, someone who does an odd job. If we think about it, actually, it would be quite unrealistic to expect individual service buyers to sign on to the Tripartite Standard. The fact that already so many service buyers have come on board is not a small step that has been accomplished. Of course, we will continue to build on it. But I hope the Member will not dismiss it too lightly. There is a lot of effort involved, and if he would like to get involved with promoting it, we welcome it, too. In addition, we have supported the development of skills training, both technical and non-technical, for SEPs. Relevant Skills Framework that SkillsFuture Singapore puts out now takes into account the needs of SEPs. To protect SEPs from the loss of income due to prolonged illness or injury, we have worked with insurers to introduce prolonged medical leave (PML) products. I am pleased to update both Mr Arasu Duraisamy and Assoc Prof Daniel Goh that close to 30,000 SEPs are now covered by PML insurance. Keep in mind that this product is relatively new to the market. So, 30,000 is really not a bad start. This is already about half of those in occupations like private hire car drivers and taxi drivers. As to whether the take-up can increase, certainly, we will be keen to promote it. But we have to leave it to the SEPs to decide for themselves whether and to what degree self-employment is their main source of income, for which PML protection is important. Keep in mind that quite a lot of them have other sources of income.”
“Mr Deputy Speaker, let me thank the Members for their comments and for supporting this Bill. I also want to thank Assoc Prof Walter Theseira, in particular, for his extensive research that allowed him to share a very interesting piece of legislative history concerning intent for SEPs. I must say that Members' enthusiastic comments are going to make my response a little longer than I originally expected. Some comments, of course, perhaps, are not directly related to this Bill. I invite Members to file Parliamentary Questions so we can address them properly. One of Assoc Prof Daniel Goh's questions was recently addressed by my colleague, Minister of State Zaqy Mohamad, during the debate on WICA. I believe the Member did not speak on the Act but he had quite a lot of questions there and they have also been addressed, so I shall not repeat them. Let me now turn to the comments related to this Bill. Members of the House have acknowledged that the CAYE pilot will help SEPs meet their MediSave obligations more easily through smaller and more regular contributions. We continue to work on addressing other common challenges faced by SEPs, as identified by the Tripartite Workgroup on SEPs in 2018. Member Mr Arasu Duraisamy raised the point on payment delays. These and other payment-related disputes can happen because of unclear contract terms. As such, we have launched the Tripartite Standard on Contracting with SEPs to reduce payment-related disputes. We also introduced a template on the key terms of engagement to shape contracting norms. Assoc Prof Daniel Goh seemed to dismiss the number of companies that have already signed on to this standard.”
“Relevant RSS members who are receiving their payouts will receive this letter, which will inform them whether and how they are affected. To conclude, the changes will see RSS payout duration last to age 90 at most. All RSS members who are currently receiving payouts will get either higher payouts or the same payouts. Mr Speaker, the CPF (Amendment) Bill provides workers and employers with more flexibility, in particular, flexibility to adapt to future employment practices. It also clarifies the administration of the CPF Act. Together with the changes to the RSS payout rules, we are making CPF processes more member-centric. This is not a one-off task. As Members will appreciate, we will have to continue updating the CPF system to better serve the changing needs of its members.”
“In other words, the majority of members on the RSS will still receive payouts for as long as they are expected to live. For those who prefer a longer payout duration, they have the option of joining CPF LIFE before age 80. This will guarantee that they receive payouts for as long as they live. Allow me to also add, for avoidance of doubt, that there is no change to the payout eligibility ages or withdrawal rules for RSS members. If you are 65 today, you can start to get your payouts. That remains the same. I would also like to be very clear that members who are currently receiving payouts will either get the same or higher payouts as a result of these changes to payout rules. No one will see a reduction in the payouts that they are currently receiving. Separately, we will adjust the RSS payout computation so that when members defer their payouts, or make a top-up, they will generally see an increase in their payout amount. The changes to how RSS payouts are computed will take effect in 2020. All RSS members who turn 65 from 1 July 2020 will be on the new payout rules. Let me repeat that there is no change to when they can start their payouts, only how those payouts are computed. As per usual practice, members will receive a letter six months before their 65th birthday. This letter will inform them that they can choose to start their payouts from 65 if they wish. As for older RSS members who have already chosen to start their payouts under the current rules, we will apply the new payout rules to them from 1 January 2020 if the resulting payout amount is higher than their current payout. Around 60,000 members will see their payouts increase as a result. To communicate the change clearly to RSS members who have started their payouts, CPF Board will send a one-time letter.”
“While this approach is fundamentally sound, it does mean that for the members who had remaining balances in their Retirement Accounts when they passed on, their RSS payouts could have been slightly higher. We will change the RSS payout computation to address members’ feedback on long payout duration. The key change we will make is to design RSS payouts such that they will last to age 90 at most, instead of age 95. The base payout will continue to last up to 20 years. Today, all of the Extra Interest and Additional Extra Interest that a member earns from age 55 goes towards extending his RSS payouts beyond 20 years. We will adjust this. Extra interest earned from age 55 until the member starts his payouts will now be used to increase his payout amount. Extra interest earned after the member starts his payouts will continue to extend his payout duration. Moreover, the extension will go to age 90 at most, instead of age 95. Particularly for RSS members whose payouts were originally projected to end past age 90, these changes will increase their payout amounts. Let me illustrate with an example. Let us say Mr Tan is aged 65 today and starting his RSS payouts. Based on his Retirement Account savings and the current RSS payout rules, he will receive a payout of about $470 for 30 years. His payout duration comprises 20 years of base payouts and an extension of 10 years from the extra interest earned on his savings. In other words, his payouts will end when he is aged 95. Under the new RSS payout rules, his payouts will increase from $470 to $520. However, the payouts will end at age 90. The new RSS payout rules will continue providing longevity risk protection for up to two in three members.”
“Although we have introduced CPF LIFE, the RSS is still the main CPF retirement income scheme today. Most members aged 65 and above today receive their retirement payouts through the RSS. More members will start receiving their retirement payouts through CPF LIFE from 2023 onwards, when the first cohort of mandatory CPF LIFE members reaches their payout eligibility age. Members will be automatically included in CPF LIFE if they have at least $60,000 in their Retirement Account at age 65. CPF LIFE will provide them with payouts for as long as they live. On the other hand, RSS payouts are designed to last up to 20 years from the payout eligibility age. This takes into account the base interest rate earned on Retirement Account savings, which is now 4%. We call this the “base payout”. In 2008, the Government introduced Extra Interest and, again in 2016, the Additional Extra Interest. This benefited all members and especially those with lower balances. It was deliberately designed as a progressive move. All this extra interest earned from age 55 is used to stretch the payouts beyond the usual 20 years, up to age 95 at most, to protect members from outliving their RSS payouts. So, the base payouts would have lasted up to 20 years, but with the extra interest, they last longer, can be up to 95 for some members. We have received feedback from some members who felt that the RSS payout duration of up to age 95 was too long. Designing payouts to last up to age 95 will cover the longevity risk of up to four in five members. In other words, only one in five members is expected to outlive his RSS payout.”
“I will take this opportunity to briefly talk about changes we are making to the Retirement Sum Scheme (RSS) in response to feedback from Members. I shared in a written Parliamentary reply in October that MOM and CPF Board were reviewing the RSS payout rules. We have completed the review. With your permission, Mr Deputy Speaker, may I ask the Clerks to distribute a factsheet on the changes to RSS payouts?”
“With the changes, regulations can be made to allow members and employers greater flexibility to accept and offer such payments, knowing they can obtain a refund of their CPF contributions if the payment has to be returned. The second and final set of amendments provide greater clarity and efficiency in the administration of the CPF Act. I will provide one example. The Home Protection Scheme (HPS) is a mortgage insurance scheme. It protects CPF members and their families from the risk of losing their home if the breadwinner meets with an unforeseen event, like death. When this happens, it understandably takes some time until the claim is paid. The grieving family will need time to report the claim. CPF Board will need time to process and make the claim payment to the mortgage bank or to the Housing and Development Board (HDB) in the case of HDB loans. Meanwhile, the interest on the mortgage loan continues to accrue. In practice, CPF Board has always paid the interest accrued on the outstanding loan all the way until the claim is paid. In other words, families have not needed to make further payments because of the time it took to report and process the claim. This amendment simply regularises this practice in the legislation. This sums up the key amendments to the CPF Act. Mr Deputy Speaker, I beg to move. Mr Deputy Speaker, may I also seek your permission to respond to the supplementary question raised by Mr Chong Kee Hiong?”
“For example, a sign-on bonus with a minimum service period condition. If the employee chooses to leave before the minimum completion date is up, he is required to return the sign-on bonus to his former employer. This practice is allowed under the Employment Act. To restore both parties to their original positions, the employee also needs to return the CPF which his former employer paid on the sign-on bonus. However, the CPF Act does not allow the CPF Board to grant refunds for this repayable component. Regulations prescribed under the amended CPF Act will give employees flexibility to apply for a refund for the CPF portion within one year of having to return the conditional wage. Employers may also apply for the refund, with the employee's consent. Let me illustrate with an example. Suppose Daniel receives a sign-on bonus in January on the condition that he works for one full year. He gets $4,000 in cash and $1,850 in his CPF, which is the contribution on the sign-on bonus. If he so happens to leave his job in March, he has to return a total of $5,850 to his employer. Of which, $1,850 is actually in his CPF account. Under today's rules, Daniel will be out-of-pocket for the $1,850 as CPF Board is unable to refund this amount from Daniel’s CPF to pay back his employer. With this amendment, Daniel may apply to CPF Board to refund the $1,850 from his CPF account to his employer if he wishes. With Daniel’s consent, his employer may also apply directly to CPF Board for the refund. Let me state for the record that we neither encourage nor discourage the practice of sign-on bonuses.”
“However, they are also concerned with some of the SEPs who are already falling behind in payments. Specifically, Mr Ang Hin Kee and leaders from the National Instructors and Coaches Association (NICA), the Professional Photographers Association (Singapore) (PPAS) and the Singapore Association of Motion Picture Professionals (SAMPP) suggested that the Government provide some matching of the SEPs' MediSave contributions when they participate in CAYE. I have discussed with my colleagues and we agree this is a good suggestion. The Government will look into providing some support for SEPs participating in the CAYE pilot. Some Members may ask if we can extend CAYE so that, like regular employees, all of Sam's contributions would have been made as and when he earned an income. Let me emphasise CAYE is a pilot. We have not taken a decision on whether CAYE will be extended to include payments made to the SEPs by private sector companies or intermediaries, such as for insurance and real estate agents. Some of the intermediaries have already indicated interest. They can see the benefit of helping their agents make MediSave payments as and when they earn an income. This is especially if the lump-sum payment happens to be required during a lull period the next year when the agent earns less income. However, let us try out CAYE first, see how well it works and decide later if and how other SEPs can also benefit. Mr Deputy Speaker, let me now turn to employment practices which are also changing and, therefore, require that we keep pace by updating the CPF Act. We, therefore, plan to amend the CPF Act to be more responsive to the evolving needs of employers and employees. Let me explain. Today, employers may structure wage components that are tied to certain contractual obligations.”
“This is helpful as his income may be seasonal due to, for example, less work during examination periods. CAYE will also help Sam grow his MediSave monies. By contributing earlier, he will accrue more interest on his MediSave contributions. Some SEPs are more comfortable with the current model of MediSave contributions and may prefer not to be on CAYE yet. SEPs who have made their MediSave contributions in full or are keeping up via an instalment plan will be allowed to opt out of this pilot. Such SEPs can set their CAYE contribution rate to zero. For SEPs who have not been keeping up with their MediSave contributions, we will continue to give them time to clear their back payments. But it is better that they make contributions through CAYE. This will help them keep up with the current MediSave obligations and prevent their obligations from snowballing. Let me just make clear a number of things since it concerns CPF. There is absolutely no change to the obligations of the self-employed for CPF contributions. Even after Parliament passes the amendment, the obligations are the same as before. The only change concerns how those contributions are made. Instead of a lump-sum payment once a year, small contributions will be made from SEPs' income each time the income is earned. As this pilot only involves SEPs who provide services to the Government, only a fraction will be affected. If these SEPs have, in fact, been up to date with their payments, they can also opt out of the pilot. As part of our consultations for the Bill, we had in-depth discussions with the National Trades Union Congress (NTUC) and leaders of the SEP associations. They have generally welcomed the introduction of CAYE and recognise its benefits.”
“Let me illustrate how CAYE works. Take, for example, Sam, who is a 48-year-old self-employed soccer coach. A primary school engaged Sam to conduct a two-hour soccer clinic. The primary school paid Sam $120 for the session, of which $20 was the expense that Sam incurred. Effectively, his income from this session was $100. Under the current contribution model, the school would have paid Sam the full service fee amount of $120. With CAYE, the school will help Sam make a contribution of $10 for the two-hour soccer clinic. Why $10? Well, this is because Sam has estimated that his income from this job is around $100 after taking out the expenses. Based on his income in the previous year, the MediSave contribution payable is 10% of the income he earns and not the total service fee, which can include expenses. At the same time that it contributes the $10 to Sam’s MediSave Account, the school pays out to Sam the balance $110 for this particular assignment. We can expect Sam to take on various jobs throughout the year, not all of them with the Ministry of Education (MOE) schools. Supposing his net trade income in total is $30,000. He would have to make a MediSave contribution of $3,000. Suppose also that $13,000 of his income came from work done for MOE. By the time the CPF statement arrives, the schools would have helped him contribute $1,300, or 10% of $13,000, throughout the year. And so, as a result, the remaining contribution is no longer $3,000 but a reduced amount of $1,700. How does Sam benefit from this? We can see that his risk of not being able to make the contribution in full is now lower – it is $1,700 instead of $3,000. Like regular employees, Sam can make smaller and more regular contributions to his MediSave as and when he receives a payment.”
“Unlike regular employees, SEPs do not have a simple process to make small regular contributions as and when they earn income. When the time comes to make the out-of-pocket lump-sum contribution the following year, SEPs with cash flow constraints face difficulties. This happens more often than not. In any given year, about 60% of SEPs do not make their MediSave contributions in full in a lump sum. This is very significant, or about 130,000 of them. As a result, some choose to pay via a 12-month instalment plan. Nonetheless, a significant number do not sign up for an instalment plan or have stopped paying their instalments. The root cause of this may be that these SEPs have irregular income. Should they wish to get back into regular employment with more steady income, we have many schemes to help them do so. In fact, last year, more SEPs switched to regular employment. But for those who remain in self-employment, we should also find a way to help them avoid slipping further back. This is what the pilot is about – helping SEPs keep up with their MediSave contributions to strengthen their protection against health shocks. The first set of amendments will allow for a pilot "Contribute-as-you-Earn" (CAYE) scheme. This will be for a small group of about 6,000 SEPs who provide services directly to the Government and public sector agencies. As a service buyer, the Government can help SEPs directly transmit their contributions to their MediSave Account and then pay the rest of the service fee to them. The Government plans to start this pilot from 1 January 2020. With your permission, Mr Deputy Speaker, may I ask the Clerks to distribute the CAYE infographic?”
“Be that as it may, CPF should continue to evolve to meet the changing needs of our people. This Bill is part of that evolution. It will amend the CPF Act in two broad areas: first, to cater to changes in employment practices; second, to clarify and streamline the administration of the CPF Act. With the Deputy Speaker’s permission, I will also use this opportunity to respond to Mr Chong Kee Hiong’s supplementary question earlier this afternoon and provide an update on the changes we are making to the RSS in response to feedback from members of the public. In 2017, the Ministry of Manpower (MOM) had set up a Tripartite Workgroup on self-employed persons (SEPs) to look into the concerns of SEPs and make recommendations on how to address them. In both the Committee of Supply (COS) debates of 2018 and 2019, I gave updates on the Workgroup's recommendations and their implementation. One recommendation was to help SEPs save for their retirement and healthcare needs through the CPF system. Today, SEPs must make contributions to the MediSave Account. Unlike regular employees, there is no requirement for them to contribute to the Ordinary and Special Accounts. Members know how MediSave Account balances can be very helpful. They can be used to pay for medical treatment and MediShield Life premiums, which help with hospital bills. The converse is true: a depleted MediSave Account exposes the SEP to risks of not having the support for healthcare expenses when he or his family needs it most. Currently, SEPs make their MediSave contributions every year based on their earnings in the previous year. This approach of making yearly contributions for past years' earnings can be improved.”
“Mr Speaker, I beg to move, "That the Bill be now read a Second time." The Central Provident Fund (CPF) system has evolved to meet the changing needs of each generation of Singaporeans. It started as a retirement savings scheme in July 1955, when many workers in small- and medium-sized companies did not receive retirement benefits from their employers. CPF helped them to have something for retirement. In 1968, in order to improve housing affordability, CPF usage was expanded to help members buy HDB flats. From 1981, CPF savings could also be used to buy private properties. This made home ownership a reality for over 90% of Singaporean households and helped them to share in Singapore’s growth. It also gave them an asset to rely on in retirement. In 1984, in order to meet rising healthcare needs, we created the MediSave Account. This helped Singaporeans cope with big healthcare expenses, such as hospitalisation. As life expectancy continued to rise, so did the risk of Singaporeans outliving their savings. In 2009, we started to transition from the Minimum Sum Scheme, now known as the Retirement Sum Scheme (RSS), to the CPF LIFE annuity scheme. Members on CPF LIFE have the assurance of a constant stream of retirement income for as long as they live. [Deputy Speaker (Mr Lim Biow Chuan) in the Chair] The CPF system is a continuous work-in-progress. Its three-in-one feature is also unique. No other retirement system tries to help people fulfil three basic needs in retirement – housing, healthcare and day-to-day spending. Comparisons with other systems often neglect this important fact. There is also considerable complexity mainly because new rules have to co-exist with previous rules for earlier cohorts.”
“Mr Speaker, it would not be unusual for foreign governments to inform us if someone were to have passed away. Sometimes, they may not inform relevant parties in Singapore, they may inform our missions overseas. And our missions overseas can then get in touch with the CPF Board. But, most likely, it is the next-of-kin who would trigger the payouts. So, the rest of the processes follow. As Ms Sylvia Lim explained, usually, it is quite efficient. But if she is aware of any specific cases where these disbursements have not been done in a timely manner, I invite her to let me know about it and I would be happy to look into that.”
“Mr Speaker, to Mr Chong Kee Hiong's question on whether we can make personalised outreach, the answer is yes. We already do so, through the yearly Statement of Account. Can we make it more prominent? The answer is yes. However, at the end of the day, I am also mindful that people need to think a little bit about who they wish to nominate and the appropriate thing to do, therefore, is that when they are ready to do so and to enable them to do so in a seamless manner. From the statistics, it is quite clear that it is the younger individuals who may not have thought so much about it and, therefore, they have not made a nomination. What we intend to do is to make this nomination process even easier for younger persons who are very tech savvy through a technology platform. Perhaps, they will find that maybe if they make a nomination today, and tomorrow, if they change their mind, it is not so difficult to do as well. This electronic means of doing so, we will be launching in the first quarter of next year. So, I am hopeful that it will help to promote nominations. To Mr Chong Kee Hiong's second question on the Retirement Sum Scheme payouts, Mr Speaker, may I have your permission to take it within my Second Reading speech later in the Sitting that deals with the CPF (Amendment) Act?”
“Mr Speaker, I thank the Member Mr Seah Kian Peng for his suggestion. If we break down what the problem really is, as long as the person has a next-of-kin, even if the person did not make a nomination, the Public Trustee's Office will try and search for the next-of-kin and trace the person's whereabouts and make an effort to return the unused CPF monies. So, where there is actually someone that you can give the money to, even if the person did not make the nomination, that is not the most difficult thing. The most difficult thing is where there is a next-of-kin but we have difficulty tracing them. The correct thing to do is, therefore, to make sure that the monies are never forfeited. The person could be overseas, the next-of-kin may have lost touch with the deceased member and may not even be aware that the person has passed away and that there is unused CPF monies to be distributed. There is a very small group where even with the best efforts, the Public Trustee's Office will have difficulty tracing. The question of how to deal with this group is not so much a matter of nomination, it is whether we can find more effective ways to do the trace and search. There is also another question that has been posed to MinLaw and I would like to suggest that perhaps we can let MinLaw answer that question and then we can follow up.”
“To Mr Chong Kee Hiong’s question, what if a member has no next-of-kin, for members on the Retirement Sum Scheme, the payouts are computed taking into consideration life expectancy, which is unrelated to whether a person has next-of-kin. Therefore, such members may wish to join the CPF LIFE scheme and choose the Standard Plan which generally offers higher payouts for life. After all, they have no next-of-kin to fall back on if they outlive their savings. At the same time, we focus on helping every member get their nominations done well in advance.”
“The third question is whether CPF Board makes an effort to reduce the incidence of unclaimed monies. The answer is yes, absolutely. CPF Board adopts a three-pronged approach. First, educating members; second, reminding members regularly; and third, making it easy for members to nominate. Firstly, education. CPF Board raises awareness on the importance of making a CPF nomination through annual island-wide CPF roadshows. It also works with other industry stakeholders, such as lawyers and insurance agents, to advise their clients on making a CPF nomination. Secondly, to remind members regularly, the Yearly Statement of Account given to all CPF members highlights in text whether or not the member has made a nomination. If one has been made, CPF Board also lets the member know when the nomination was made, in case the member wants to change his mind. Members may be aware that CPF Board runs a CPF Retirement Planning Service for members before they reach age 55, and a second time before they reach age 65. At these planning sessions, if a member has not already made a nomination, the CPF Board officer will remind the member. Thirdly, as Ms Foo Mee Har alluded to in her question, CPF Board strives to make it easy for members to nominate. At the CPF Retirement Planning Service, if a member decides to make a nomination, it can be done on the spot. Today, a nomination can be made in-person at any of the CPF Service Centres or via post. CPF Board is also exploring providing a new electronic nomination system in the first quarter of next year. In 2018, CPF Board processed about 120,000 nomination applications, more than double the 50,000 nominations made in 2013.”
“I thank the Members who have raised important questions. There are several key issues I hope to address in this reply. The first question is whether most Central Provident Fund (CPF) monies go unclaimed. The answer is no. In fact, about 98% of all unused CPF monies belonging to deceased members were distributed by CPF Board or the Public Trustee’s Office (PTO) over the last five years. Around 2% are unclaimed. The vast majority of deceased members had made nominations as to who they wish to receive their unused CPF monies. Their monies were distributed to beneficiaries according to these nominations. This is typically done within a month of CPF Board being notified of the member's passing by the Immigration and Checkpoints Authority and where the nominees’ bank details have been submitted. Mr Chong Kee Hiong asked about the profile of those who nominated, compared to those who did not. The clearest difference is that members below the age of 45 who pass away are much less likely to have made a nomination. But even if a member did not make a nomination for anyone to receive his unused CPF monies, it may still be distributed to his next-of-kin according to the intestacy and Muslim inheritance laws. How does this happen? CPF Board will pass the monies to PTO typically within three weeks of notification of the member’s passing. PTO will then trace and search for the next-of-kin. The Ministry of Law (MinLaw) will be answering a separate question on the efforts taken to return the un-nominated CPF monies to members’ next-of-kin. The second question is whether unclaimed CPF monies are then forfeited. The answer is again no. As MinLaw will explain in greater detail, the next-of-kin can approach PTO at any time to submit their claims. There is no time limit for them to do so.”
“Mr Speaker, with your permission, may I take Question Nos 3 to 5 together, please?”
“The Ministry of Manpower (MOM) exempts foreigners conducting workshops or speaking at seminars or conferences from the requirement to apply for a Work Pass, as such activities typically take place over a short period of time and the individuals do not become part of our regular workforce. The exemption does not cover foreigners who are employed on a more permanent basis as faculty or instructors of an educational institution. Such faculty or instructors would typically also perform other administrative duties, such as setting and grading of assessment materials. In these cases, MOM requires the educational institution to apply for a Work Pass for the particular instructor.”
“The Ministry of Manpower (MOM) and the Central Provident Fund (CPF) Board are currently reviewing the payout rules for the Retirement Sum Scheme (RSS). RSS is the main retirement payout scheme for CPF members born before 1958. RSS payouts are designed to last up to 20 years from the payout eligibility age, taking into account the base interest rate earned on Retirement Account savings, which is now 4%. Rising life expectancy over the years has increased the risk of members outliving their payouts. In 2018, more than half of Singapore residents aged 65 were expected to live beyond age 85 and about one in five were expected to live past age 95. Therefore, when Extra Interest and Additional Extra Interest were introduced by the Government in 2008 and 2016 respectively, they were used to extend the RSS payout duration beyond 20 years. This extension reduces the risk of members running out of savings in old age. Even with the extension, CPF Board ensures that RSS payouts do not stretch beyond age 95. We have received feedback from some members who feel that a payout duration up to age 95 is too long. The ongoing review of RSS payout rules will consider how to address this concern. We expect to complete the review before the end of 2019 and will announce the outcome thereafter.”
“The Citizens' Panel on Work-Life Harmony was just formed for Singaporeans to partner the Government to develop new ways for society and workplaces to better support families in Singapore.”
“The Government is strongly committed to support Singaporeans in their parenthood journeys. To better support working parents, childcare leave provisions have been enhanced progressively over the years. Today, parents of Singaporean children are eligible for six days of childcare leave per year when their children are aged below seven years old. This was raised from two days in 2008. Since 2013, parents with children aged seven to 12 are eligible for two days of extended childcare leave per year. Childcare leave is given on a per parent basis today to balance between supporting parents in their caregiving responsibilities, and meeting employers' manpower needs. We need to take a practical approach on this matter. Employers are concerned that increasing these leave provisions could adversely impact their manpower costs and operations. Giving more childcare leave on a per child basis can also inadvertently affect the employment prospects of parents with more children. Beyond leave provisions, the Government encourages and provides support to companies to implement Flexible Work Arrangements (FWAs), to develop a more family-friendly work culture. Employers may access the enhanced Work-Life Grant, which has been raised to $100 million recently, and make use of the new job-sharing implementation guide to offer FWAs to employees. We have also launched two Tripartite Standards in 2018 to encourage companies to provide additional support for employees' personal or caregiving responsibilities, namely, the Tripartite Standard on FWAs, and on Unpaid Leave for Unexpected Care Needs. We regularly review leave policies and other workplace arrangements to better support parents to manage their work and family commitments.”
“If the workplace bullying amounts to criminal intimidation or involves physical violence, the Police can also take action under the Penal Code. At MOM's Committee of Supply debate this year, we announced that the Tripartite Alliance for Fair and Progressive Employment Practices (TAFEP) would be a help and resource centre for workplace harassment for both employees and employers. Since our announcement earlier this year, TAFEP has received 27 cases4 relating to workplace harassment. For these cases, employers have taken the necessary corrective measures upon advice from TAFEP. TAFEP has also provided support to complainants and advised on their options, such as making a Police report or seeking civil remedies. We urge individuals who face harassment at the workplace to call TAFEP at 6838 0969 or write to TAFEP for advice and assistance.”
“Based on a Ministry of Manpower (MOM) survey conducted in 2018, 2.4% of Singapore's resident labour force reported having personally experienced bullying or harassment in their workplace1. The MOM survey’s definition of bullying and harassment was specific. It asked respondents to recall actual incidents where they were subjected to verbal abuse, threats or assault during the course of their work. MOM's survey adopts a similar methodology used in the European Working Conditions Survey, where the corresponding figure for Italy is 3% and Spain's is 3.2%, for instance. The average among European countries is 5.7%2. In Canada, the average incidence of employees experiencing threats, violence and harassment is similarly low3. Kantar's study was based only on results from 14 countries but claimed that 19% of employees from around the world have been "bullied, undermined or harassed", compared to 20% in Canada, and 24% in Singapore. It also claimed that Italy, the Netherlands and Spain fared better but did not offer statistics for comparison. Notably, the Kantar press release conflated bullying, harassment and being "undermined". This possibly explains the large gap between their reported figures and the official statistics that were just cited. Various media outlets that reported off the Kantar press release thus presented the same skewed picture. We would caution readers to exercise judgement when reading such reports or indices. We take a serious stance towards workplace bullying or harassment, against which we have stringent criminal laws. For example, the sending of unwarranted lewd messages to co-workers with intent to cause harassment, alarm or distress, would be a criminal offence under the Protection from Harassment Act. The Police can investigate such cases.”