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 Central Provident Fund (CPF) system is already designed to be progressive through limits on CPF contributions and differentiated interest rates. There are monthly and annual limits on the amount of CPF contributions a member can make. Mandatory CPF contributions from ordinary wages are capped at the salary ceiling of $6,000 per month. The maximum amount of mandatory and voluntary contributions that a person can make in a calendar year is subject to the CPF annual limit, currently at $37,740. CPF members with lower balances earn a higher effective interest rate than those with higher balances. This is because CPF interest rates are differentiated based on a member's CPF balance. Balances in the Ordinary Account earn 2.5% per annum, while those in the Special Account, Retirement Account and MediSave Account earn 4% per annum. On top of this, since 2008, an Extra Interest of 1% is paid on the first $60,000 of combined CPF balances. Since 2016, CPF members aged 55 and above also receive an Additional Extra Interest of 1% on the first $30,000 of their combined CPF balances. Hence, members aged 55 and above enjoy interest rates of up to 6% for the first $30,000, up to 5% for the next $30,000 and up to 4% for balances above $60,000. Members' balances can vary widely due to their unique circumstances, such as differences in age, employment, income and withdrawals for retirement payouts and housing payments. In 2018, for active CPF members turning 55, more than six in 10 had at least the Basic Retirement Sum (BRS) of $85,500 in their Ordinary and Special Accounts. Over time, we expect members' CPF balances to increase with rising income and labour force participation.”
“They have fiduciary interest and so they are minded to work with the Police to stamp out the possible infiltration of organised crime.”
“Mr Speaker, I appreciate the Member's concern. He has a particular worry that organised crimes, especially by foreign syndicates, will enter Singapore through casinos. If we look at the pattern of all the offences, the cases that I talked about, the vast majority of crimes committed in the casinos are mostly opportunistic and petty in nature. Actually, the number that relates to organised crime groups is very few. Among all the offences, theft and cheating account for the most. For the theft-related cases, they mostly involved theft of gambling chips belonging to other patrons at the game tables. So, this is not quite the behaviour of organised crime syndicates. Other common scenarios include theft of cash, valuables, unattended bags and wallets from patrons. So, there is a pattern and these types of theft offences are not representative of organised crimes. The cheating-related cases usually involve the past posting of bets. In other words, the outcome of the game is revealed and some of the patrons decide to try their luck, in case the croupier was not paying attention. They would place a bet on a location which would suggest that they won but, in fact, they did not. So, such cases also are one of the more common ones. There have also been cases where counterfeit chips were used by patrons. So, that gives us a sense. Since 2010, ever since we started the tracking when the operations commenced, there have been fewer than 20 in total that are related to syndicates. If you look at the amounts of money involved, they were between $14,000 to $1.3 million. But the Member's concerns are very well noted. We will continue to keep a close eye. In this instance, the operators obviously have an interest.”
“Mr Speaker, I agree with the Member. In fact, some of our social safeguards go beyond that. There are visit limits, for example, and we can even impose an exclusion order. And so, it is not a matter of paying the levy and then being able to enter the casinos. If you are under an exclusion order, then no amount that you offer will get you through. There is also a follow-up question relating to social safeguards and I believe that the Minister for Social and Family Development will be addressing it. So, I think we should let him share with us.”
“The other 20 cases were either dismissed as they were not substantiated or withdrawn by the employees. MOM takes a serious view of workplace discrimination, including discrimination on the grounds of gender. We expect all employers to comply with our legislation and abide by the principles of fair and merit-based employment practices outlined in TGFEP. We urge all individuals who feel that they have been discriminated against to approach TAFEP and MOM for advice and assistance. MOM will not hesitate to take strong actions against errant employers.”
“In the past three years, there were, on average, about 50 gender-related discrimination complaints reported to the Tripartite Alliance on Fair and Progressive Employment Practices (TAFEP) and the Ministry of Manpower (MOM) annually, constituting 12% of the total number of complaints each year. The vast majority of these 50 complaints related to employers specifying their preference for a particular gender in their recruitment advertisements. About half of these were substantiated following investigations. As a result, MOM imposed sanctions on the employers, such as curtailing their work pass privileges. For the rest, investigations did not substantiate the complaints. In the last three years, TAFEP received an average of about 10 workplace harassment complaints each year. For workplace harassment complaints which do not disclose a criminal offence, TAFEP notifies the employers and advises them to handle the complaint as an internal workplace matter by conducting an investigation, taking corrective actions and setting up mechanisms to handle future complaints appropriately, as outlined in the Tripartite Guidelines on Fair Employment Practices (TGFEP). All the employers so notified had conducted the necessary enquiries and instituted the appropriate corrective measures. Hence, TAFEP has not needed to impose any sanctions on employers for refusing to take action. MOM also received about 70 pregnancy-related dismissal appeals annually in the past three years. This includes appellants who felt that they were wrongfully dismissed or forced to resign or denied maternity benefits. The number of cases that were substantiated and resulted in compensation to the employees remained relatively stable at about 50 per year.”
“In the last three years, the Ministry of Manpower (MOM) and Central Provident Fund (CPF) Board received a total of 308 cases of suspected misclassification. In 160 cases, workers were assessed to be misclassified as self-employed persons (SEPs)1. Each case that MOM and CPF Board investigate into could involve more than one worker. On average, about 100 workers per year were found to be misclassified. In all but two of these misclassification cases, employers made good their obligations when informed of the misclassification and paid back the affected employees what they were due, including overtime pay and CPF contributions. Penalties, including warning and late payment interest charges, were meted out to the companies. The two companies which refused to make the necessary payments to the affected employees were prosecuted. One subsequently fully settled the arrears out of Court while the other is currently appealing against its conviction. The majority of these cases occurred in the contract labour suppliers, transport and logistics, construction and education sectors. The common occupations where such misclassification occurred include promoters, drivers, crane operators, service agents and carpenters. The proportion of SEPs has remained stable at 8%-10% of the resident workforce over the last decade. We have not observed a link between emerging technologies or business models and self-employment misclassification.”
“From 2015 to 2018, the number and proportion of resident households with at least one member aged 65 and above employing foreign domestic workers (FDW) are shown in Table 1 below. Households with members aged 65 and above who are Singapore Citizens (SCs) pay the concessionary levy rate of $60 per month1 for the FDW they hire. In addition to this, the FDW Grant2 provides support for eligible families to hire an FDW to care for loved ones who require permanent assistance with at least three activities of daily living. As at December 2018, about 9,500 households caring for seniors aged 65 and above were receiving the FDW Grant.”
“The cohort Basic Retirement Sum (BRS) is adjusted every year to take into consideration inflation and rising standards of living for successive cohorts of seniors in retirement. Even so, the proportion of active Central Provident Fund (CPF) members turning age 55 who had set aside their cohort BRS has increased steadily as shown in Table 1 below. This reflects higher labour force participation rates and rising incomes of successive cohorts of members. The BRS attainment for both male and female CPF members have improved over the years and the difference in their savings have also narrowed. A study published by the CPF Board1 showed that the male-to-female average CPF balance ratio has dropped from 1.20 in 2006 to 1.13 in 2016. We expect this trend to continue. BRS attainment tends to mirror property wealth. It is highest among active CPF members who own a private property, and lowest for active CPF members who own 3-room or smaller Housing and Development Board (HDB) flats. It is difficult to draw meaningful conclusions by looking at CPF balances of members who are economically inactive and thus not required to make CPF contributions. They are likely to have other means of provision which CPF Board has no sight of. Nevertheless, inactive CPF members who wish to save through the CPF system can do so through voluntary top-ups to their CPF accounts either through cash or CPF transfers from other members. These members can also benefit from several recent enhancements that make it easier for members to receive CPF transfers from their spouse, children and grandchildren.”
“Based on the Ministry of Manpower's (MOM's) 2018 Comprehensive Labour Force Survey (CLFS), of the 543,500 female residents aged 25 and above who are not in the labour force, about two in three cited non-caregiving reasons, such as retirement, poor health/disability/old age and housework. About one in four cited caregiving to families (including childcare) or relatives, as the main reasons they are out of the labour force. Those providing caregiving to families (excluding childcare) or relatives are generally older – 75% are aged 50 and above. The majority had work experience; the median length of time since they left their jobs was nine years. A vast majority of those who are providing childcare are aged between 30 and 49. Most had prior work experience. The median length of time they have not been working was five years. As survey respondents are different each year, the CLFS does not track the subsequent labour market outcomes of those who re-enter the labour force. To support the return of females back into the labour force, the Adapt and Grow initiative by MOM and Workforce Singapore offers a suite of job matching services and programmes to help jobseekers overcome mismatches in skills, wages or job expectations. One of the programmes is Career Trial, which provides opportunities for jobseekers to try out jobs and assess new careers. This year, we are enhancing Career Trial to include part-time jobs. This will benefit women who are considering part-time jobs, in particular, those with caregiving responsibilities.”
“Singapore is not in a position to support all Employment Pass or S-pass holders who wish to have their dependants with them here. Another important consideration is the sponsor's ability to afford the family's cost of living in Singapore. As there is no assurance that both parents will have continued employment in Singapore, the fixed monthly salary of the main pass holder is a more stable indicator for assessing the eligibility of the child to be granted a dependant's pass. We have no plans to review this approach.”
“The objective of Silver Support is to provide retirement support to Singaporeans who had low incomes throughout life. About 20% of elderly Singaporeans aged 65 and above receive quarterly Silver Support payouts of $300 to $750, with those living in smaller flat types receiving higher payouts. In 2018, about 51,000 elderly Singaporeans aged 65 and above received Silver Support payouts in addition to their Central Provident Fund (CPF) monthly payouts. Because it is targeted at those with low incomes throughout life, one of the eligibility criteria for Silver Support is low total CPF contributions. Understandably, all Silver Support recipients would, therefore, have low monthly CPF payouts. Many of these members could also have made lump sum withdrawals which now supplement their current payouts. The combined monthly payouts may, therefore, not be the only sources of retirement income for these members. Nevertheless, for those living in 1- and 2-room Housing and Development flats, the median combined payout is $500 per month, whereas for those in 5-room flats, the median combined payout is $350 per month. For reference, a 65-year-old member who had set aside the Basic Retirement Sum and started his CPF payouts this year would receive $520 per month. On top of their Silver Support and CPF payouts, seniors may receive benefits from the Pioneer and Merdeka Generation Packages, annual Goods and Services Tax Vouchers, concessions on public transport and caregiver support schemes. Those living in public housing may also receive subsidised rental or utility rebates. Elderly Singaporeans who need additional financial support can apply for ComCare and other assistance schemes.”
“This is a one-to-one session whereby a CPFB officer provides personalised guidance to the member, such as the various CPF LIFE plans they can choose from and the estimated payouts, depending on the amount set aside. I hope that Members can encourage their residents to make full use of this Service and to approach CPFB if they have queries about CPF LIFE.”
“He could even draw more from the interest pool than he put into it. The pooled interest ultimately benefits the members of CPF LIFE. Moreover, because the interest earned is risk-free and the membership pool is very large, CPF LIFE members receive one of the highest payouts per dollar of premium, compared to similar annuity products in the market. A member and his loved ones will also always get back his CPF LIFE premium in full, in the form of monthly payouts and/or bequest, no matter what age he lives to. When a CPF LIFE member passes on, any unused premium will be distributed to the deceased member’s nominees. This is clearly communicated to members in the CPF LIFE application form and the yearly CPF LIFE payout statement. CPF LIFE is a relatively young scheme. Members who currently receive CPF LIFE payouts have voluntarily opted into CPF LIFE at various ages. The first mandatory cohort of CPF LIFE members will only reach their payout eligibility age in 2023. However, in the long run, we expect a large majority of CPF LIFE members to draw payouts from the pooled interest. In any case, all members can be assured that their premiums are fully safeguarded for them and their loved ones. And what interest remains in the pool ultimately benefits members through lifelong payouts. CPF Board (CPFB) has stepped up its efforts to help members make informed choices on their CPF LIFE plans. For example, the CPF LIFE estimator on the CPF website allows members to estimate their payouts and bequest amounts at different ages. CPFB also offers a CPF Retirement Planning Service to all members reaching 55 years old, and their Payout Eligibility Age.”
“Central Provident Fund (CPF) LIFE has become a key pillar of our retirement system since it was introduced a decade ago in 2009. CPF LIFE protects Singaporeans against longevity risk, by providing them with a monthly retirement payout for life. This ensures that CPF members will not outlive their savings, even as life expectancy increases. Let me explain how it works. Members join CPF LIFE today when they are ready to start their monthly payouts. They do so by committing a sum of CPF savings to a CPF LIFE plan. This sum is known as a "premium", similar to how one would purchase an insurance cover. The interest that is earned on CPF LIFE premiums is pooled into the Lifelong Income Fund. This interest is up to 6% per year, comprising the base interest of 4% and 1% each from Extra Interest and Additional Extra Interest. Each member's premium is used to provide him with monthly CPF LIFE payouts. However, when the premium is exhausted, the member will continue to receive monthly payouts by drawing on the pooled interest. For example, if a member commits $60,000 to CPF LIFE under the Standard plan and starts payouts at 65, his premium will be exhausted at the age of 79 and he will then continue to receive payouts from the pooled interest for as long as he lives. In other words, through the pooling of interest, the member is effectively shielded from the risk that he will outlive his savings. In fact, Mr Png Eng Huat recognised this when he told this House in 2014 that CPF LIFE was a better scheme as it guaranteed payouts for life. But Mr Png is incorrect to describe the pooled interest as "forgone" because, as I explained, every CPF LIFE member has a chance to draw on it once his own premiums have been fully paid out.”
“Mr Speaker, we do not track the retrenchment numbers according to whether the employer was an MNC or a local company. But I understand where the Member's question is coming from. We do have a sense as to the size of the company. So, if we use the size of the company as a proxy and, say, for example, those that employ 200 and above employees, take them as a proxy for the MNCs, although that is not quite the case. The employers with 200 and above employees, typically, in a year, would be responsible for maybe about 66% or two-thirds of all PMET employment. But for this group, their share of the retrenched PMETs is less, at about 56%.”
“Mr Speaker, I respectfully request the Member to file a Parliamentary Question (PQ) for them. I do not have the data on hand. But I have qualitatively explained that the sectors involved are those that are undergoing restructuring to the largest extent.”
“About 5,000 of them participated in Professional Conversion Programmes. Nonetheless, there are PMET segments we are monitoring closely, such as mature PMET jobseekers as well as those who are long-term unemployed. Such groups receive more training or wage support under the A&G programmes. As announced at the Budget this year, we will extend the Career Support Programme for two years to continue providing salary support to employers who hire long-term unemployed or retrenched mature PMETs. WSG is also increasing capacity for Professional Conversion Programmes to help reskill jobseekers for new jobs and working upstream with economic agencies and companies to retrain workers at risk of retrenchment to take up new jobs within the company.”
“In 2018, about 5,400 local professionals, managers, executives and technicians (PMETs) were retrenched, the lowest level since 2014. This took place against a backdrop of local PMET employment growth of about 34,000. The resident long-term unemployment rate for PMETs, an indicator of structural unemployment, remained low at 0.8%. At present, there are also about 31,500 vacancies for PMETs. Maybe I should add also that the 31,500 figure is a higher level than in the past few years. To ensure retrenched workers receive timely employment support, companies are required to notify the Taskforce for Responsible Retrenchment and Employment Facilitation, led by Workforce Singapore (WSG), of the retrenchments. Based on the 2017 survey on retrenchment benefits, around 90% of retrenching establishments paid retrenchment benefits to their workers, slightly higher than in 2016. Among them, more than 70% paid retrenchment benefits of at least two weeks of salary per year of service, as recommended in the Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment. This was up from around 60% in 2016. Nearly two-thirds of PMET retrenchments in 2018 were in sectors undergoing restructuring, namely, Wholesale Trade, Financial and Insurance Services, Information and Communications and Professional Services sectors. About seven in 10 of retrenched workers who accepted assistance by the Taskforce found new jobs within six months. To help PMETs access job opportunities, the Adapt and Grow (A&G) initiative has a range of programmes that address gaps in skills or wage expectations. About 17,000 PMETs were placed last year, nearly double that in 2016. PMET placements made up 56% of all A&G placements, similar to the share of PMETs in the workforce.”
“Mr Speaker, may I have your permission to take Question Nos 15 and 16 together?”
“Today, employers are required to report work injuries resulting in medical leave of more than three days, hospitalisation for at least 24 hours or death. Common reasons cited for delayed or non-reporting are (a) the employer did not agree that the injury was work-related; and (b) the employee did not inform the employer of the work injury. Non-reporting of work injuries by employers are usually detected when an employee or his representative files an incident report to the Ministry of Manpower.”
“Non-reporting occurs mostly because employers disputed that the injury was work-related or was not informed of the injury. Before 2018, we focused on educating employers to have better systems to detect and surface injuries suffered by their employees, and to report injuries brought to their attention even if they believe the injuries were not work-related. Since the start of 2018, we have stepped up our enforcement efforts which led to an increase in the number of employers being taken to task for non-reporting. In addition to the 40 composition fine cases, a site manager was convicted in 2016 for attempting to cover up a workplace accident by abandoning the injured worker along an alley. The manager was jailed six months for the offence. There has been no other case of non-reporting which resulted in imprisonment.”
“In the past three years, around 75% of work injury cases have been seen by public healthcare institutions, while the remaining 25% have been seen by private healthcare providers. The industry and occupation profile of injured workers seen by the public healthcare institutions and private healthcare providers are similar. Nonetheless, a larger proportion of the cases handled by the public healthcare institutions involve serious injuries, such as fractures, dislocations and crushing injuries, compared to the private healthcare providers. Correspondingly, private healthcare providers have a larger proportion of less serious cases, such as bruises and sprains, compared to public healthcare institutions.”
“Eighty-five percent of the claims filed under the Employment Claims Act (ECA) were resolved at the Tripartite Alliance for Dispute Management (TADM). The remaining 15% of the claimants were referred to the Employment Claims Tribunals (ECT), and of which 5% were withdrawn while 10% filed for adjudication. Two-thirds of the adjudicated claims resulted in money orders issued to employers to settle the salary claims; this proportion is similar for both local and foreign employees. Of the ECT orders issued, about half of the claimants received full payment from their employers. Another 16% reported partial payment, while 36% reported no payment. Cases that resulted in partial or no payment usually involved employers in financial difficulty, or large accumulated salary arrears before the employee reported to TADM. In 12 cases, or 1% of ECT orders, the employer willfully refused to pay despite having the means to do so. The Ministry of Manpower is investigating and prosecuting these employers. One hundred and twenty nine low-income claimants who did not fully recover their salaries received additional financial assistance through the Short Term Relief Fund or Migrant Workers' Assistance Fund. We encourage workers to approach TADM immediately when they have salary arrears. This improves the chances of full recovery and prevents more workers from encountering the same problem.”
“Over the last three years, about 20% of the Work Permit Holders in the cleaning sector were higher-skilled (R1) workers. The Ministry does not provide data on foreign workers with breakdown by nationality.”
“Mr Chairman, on helping members understand what they can do to unlock the value of their property, it is not just CPF Board that can, through the retirement planning service, make this known to the members. In fact, HDB also provides quite wise counsel to HDB flat owners. So, there is room for these kinds of services to be improved. Usage levels can go up. But it appears to us that quite a lot of people also feel that they have the knowledge and they are quite confident about making decisions for themselves. The question is, are there people who would benefit from such services but are not aware that they are being offered? So, that is an area we need to work on. The Member's other question is a question of data. I am afraid I do not have that with me right now.”
“At the end of the maturity date, you should be able to take it out with interest? Thank you. That is exactly what the practice is. Members can withdraw their payouts anytime from 65. When the member is about to reach 65, we remind him. If he does not instruct us, we roll over his FD because it earns him more money. Then we write to him again and we remind him, year after year. If we do not do that but, instead, the moment he turns 65, I terminate his FD and let his savings go into the Current Account, which earns much less interest, it will cause him to earn less money. So, Mr Png, which bank will you be more happy with? The one that rolls over for you automatically because it earns more, or the one that quickly terminates it and let it earn less?”
“I will try my best. Actually, Mr Png Eng Huat compared CPF savings to something like a fixed deposit (FD), meaning whenever you want, you should be able to take it out. Am I right?”
“Actually, this is not new. The Workers' Party has called for it previously and the Government has also taken pains to explain what the considerations are. Essentially, it is to do with extended longevity and also being mindful of what other countries are doing. So, I happened to have addressed this question quite recently in Parliament, and my answer has not changed. So, with your permission, Mr Chairman, I suggest we move on. But Mr Png actually also made some other references to CPF in his earlier cut. Mr Chairman, I wonder if you would allow me to address them since I did not have time to address them earlier?”
“Mr Chairman, my observation is that I have seen some of these Deliveroo, Grab Eats service people. Some of them look very young. They look like they are students. And when I have asked, they are taking this on to earn some pocket money. I have also seen some other people do this on weekends. When I have asked them, not all of them are doing it on a full-time basis; some of them are earning something extra. In terms of boosting a person's income, in terms of giving him options, if that is what our individual wishes to do, they certainly should be entitled to decide for themselves. We will have to continue to monitor the trends. As it is, as the Member pointed out again that the SEP numbers went down. I would be very concerned if the numbers grew very quickly. As it looks right now, over all, the numbers have not changed. One other thing that we have noticed, and I shared with the House last year, is that SEPs are quite flexible. Their self-employment can take various forms. There were occasions where we noticed that people had chosen to switch into driving private hire cars because the incomes that they got was better than, for example, selling real estate, because the real estate market is quieter. So, there is some movement amongst the different occupations within self-employment.”
“Mr Chairman, I believe that there was a Motion on Caregivers and I am not sure whether this subject was discussed then. It is certainly an area that will continuously be reviewed. But, perhaps to address the Member's question on the retirement adequacy for women in general, not just those who are involved in caregiving roles, in fact, over the last 10 years, the average CPF balance for women has been growing slightly faster than for men. For women, it was 8.3%. This is per year. So, if you compound it over time, compared to the men's 7.6%, the gap is closing. We, of course, already have tax incentives to encourage cash top-ups and made it easier for members to transfer their CPF savings to their spouses, parents and grandparents, many of whom are women. So, in this way, we hope to help the women build up their retirement adequacy. There is one datapoint that is quite useful. We looked at the members who received top-ups, and after they received the top-ups, they reached the Basic Retirement Sum. Actually, 60% of them were women. So, it is a good thing. Thank you.”
“Mr Chairman, I thank the Member Mr Pritam Singh for this clarification. It is important and it is appreciated. What the Member has said is felt by all of us. Let us work together, let us make the workplace, let us make work, let us make job quality our priority, and let us make work satisfying to as many people as possible.”
“I was afraid the Member was going to say Batam and Johor, too! Mr Chairman, to the second question, if the company has a commitment, they want to find ways to become leaner and they are prepared to come under the Lean Enterprise Development (LED) scheme, we will be very willing to see how to help. To the first question on rebranding, absolutely yes. MOM is not alone in doing this. All the sector agencies that are involved in any of the services sector industry transformation, in fact, have it very much as a priority. They are aware that, with this tightening, there would be some firms that will be affected and they would want to take advantage of this opportunity, not just to rebrand. It is not just the rebranding effort. The actual job quality, the content of the work, the way the work is carried out, the work conditions, the hours and also the terms, all these must improve. The Chinese say 换汤不换药. If the substance of it has not changed, I do not think job seekers are unable to tell the difference. Ultimately, everyone wants to progress in their careers, and we should try our very best to ensure that, whichever sector they are in, they do have the opportunity to advance.”
“I thank the Member for his clarification questions. I will take the second one first. How did the workgroup overcome the concerns of the younger workers? The Member is right in pointing out that the younger workers did have a concern about whether there would be impediments to their own progression. But what eventually was able to swing the thinking of all the workers is that all of us will get there. The younger workers today will eventually, at some point in time, not be so young. And they would like the enhancements to apply to themselves, too. But there is still a very important consideration, which is, that in terms of how employers and businesses are going to manage their workforce, they are going to need flexibility in moving people around, meaning that employers are quite conscious of the importance of freeing up certain positions so that the younger ones have a chance to gain the experience and also have the opportunity to progress in their career. That is why it is still very important to give employers certain flexibility in managing their workforce and not try to impose too many rules on them. So, that is the second question. On the Member's first question, I am a little bit puzzled why the Member would consider that when a notice period is required and, indeed, forms part of the termination, then it is considered meaningless protection. Employees, too, can serve notice and tell the employer, "I am done". It is reciprocal. So, it is not meaningless. But in any case, the short answer to the Member's question is yes, MOM will investigate. As to whether the outcome of the investigation and as to whether it will order a reinstatement, in most cases, the worker does not want reinstatement either, because the relationship has soured and they would rather move on.”
“The answer is yes. The tripartite partners will be looking into it.”
“We will help you improve productivity, and assist you in redesigning some of the jobs to attract Singaporeans. In fact, there are many solutions in the market which are applicable for the services sector, and can help businesses transform successfully. I believe that as long as we combine the tenacity and fighting spirit of our companies and the multi-pronged assistance from the Government, our SMEs will be able to progress further and emerge stronger in the future. 4.45 pm (In English): With your permission, Mr Chairman, may I ask the Clerks to distribute the handouts?”
“The Finance Minister has announced that the DRC for the services sector will be tightened from next year. The purpose is to reduce reliance on foreign workers in the services sector and spur companies in the sector to transform. This time round, the tightening of DRC will only affect the services sector because some areas in this sector are still very labour-intensive. The DRC for other sectors will remain the same. The Government also did not raise foreign worker levies nor amend the conditions for EPs. The Government has not taken this decision lightly. I fully understand that this decision will impact the services sector. Some businesses may ask, "Minister, transformation is easier said than done!" I can understand their concerns but I am worried that if they do not transform now, would it not be harder to do so when they face more challenges in the future? Some other companies may say, "Minister, the work is very tough in this industry. Which Singaporean would want to do it?" To be honest, as our country and society develop, it is only natural that people will have higher expectations. My concern is that for those jobs which Singaporeans are unwilling to take up today, will there forever be foreign workers who are willing to do it? Will the day come when even foreign workers would not want to do these jobs? Where can our companies get their workers then? Hence, should we not redesign some of these jobs so that they become acceptable to local workers and, at the same time, spread out manpower risks? Hence, if we consider this from a longer-term perspective, we have had no choice but to accelerate the pace of transformation. I have this to say to the SMEs: let the Government help you and walk with you on this transformation journey.”
“Thirdly, the Workgroup also agrees that even after the retirement age and re-employment age have been raised, we must continue to ensure that our workplaces remain flexible and are able the meet the various needs of employers and the workforce. I found the initial conclusions of the Workgroup to be fairly comprehensive and balanced. After all, some tradeoffs are inevitable when we try to balance the needs and interests of both employers and employees. The timing, pace and other details with regard to raising the retirement age and re-employment age will have to be considered carefully, so that employers have enough time to make the necessary adjustments. The Workgroup will also review the CPF contribution rate of older workers carefully, so as to ensure that the final recommendations will help older workers in building up retirement savings without impeding their employment prospects. I look forward to the final recommendations from the Workgroup. We have strong tripartism at work in Singapore. This is why we can have constructive discussions on many labour issues and achieve a win-win outcome for workers and businesses. The close relationship among the tripartite partners is rare worldwide and has put Singapore in a good position to help workers and businesses seize the opportunities of global development. When businesses try to seize these opportunities, one consideration is how to maintain sustainable growth. Many local SMEs, especially those in the services sector, have been relying on foreign workers to supplement the local workforce. There is a need to change this practice. As other economies continue to develop rapidly, over-reliance on more and more foreign workers is not without risks.”
“In Singapore, two in three seniors aged between 55 and to 64 continue to work. Amongst seniors above 65, one in four is still working. In my view, we can do more and do better. If we can fully develop the potential of our older workers and make good use of their potential, we can turn it into our advantage. This is why I set up the Tripartite Workgroup on Older Workers last May to look into reviewing the statutory retirement age, re-employment age and CPF contribution rate of older workers. Before implementing any changes, the Government will consult various stakeholders, such as unions and businesses, and endeavour to achieve a win-win outcome. Last week, the Workgroup reported its progress to NTUC Secretary-General Ng Chee Meng, Dr Robert Yap from SNEF and myself. It will take the Workgroup a few more months to conclude the review. Nevertheless, members of the Workgroup have reached consensus in three important areas. Firstly, they agree that over the longer term, there is a need to raise the statutory retirement age. This will enhance job security for workers after the age of 62 and encourage employers and employees to upgrade skills more actively in order to maintain the efficiency of older workers. At the same time, the current re-employment age of 67 should be raised. This will ensure that employers have some flexibility in adjusting the jobscopes and salaries of workers who have reached the retirement age, after taking into account the overall economic situation and the performance of their respective businesses. Employers could then have peace of mind when re-employing older workers.”
“Retirement adequacy is improving, for both older and younger Singaporeans. In 2018, more than six in 10 active CPF members turning 55 have at least the Basic Retirement Sum. This proportion will grow with each successive cohort. In 2018, over 96,000 members received about $2 billion in top-ups to their CPF accounts. We are also stepping up outreach. Since the start of this year, all members turning 65 can get a personalised one-on-one CPF Retirement Planning Service at our Service Centres. One-on-one, personalised, with an infographic that tells you what you have and what you can do with it. Not what other people have, but what you have. So, for Ms Foo Mee Har, your residents, we hope will take advantage of this service and be more like Mdm Tan, who only got to know what she could do with your help. And we want to replicate what you have been able to do for Mdm Tan to everyone who wants it. We will address the issue of retirement adequacy more holistically when we discuss the Workgroup's recommendations on CPF contributions for older workers. To sum up, I am very pleased that we have developed a tripartite consensus to raise the retirement age and re-employment age. I hope Members realise what a significant milestone this is. The next phase of working out details is equally important. I look forward to receiving the Workgroup's final recommendations later this year. Mr Chairman, please allow me to conclude in Mandarin. (In Mandarin): [Please refer to Vernacular Speech.] Chairman, as our life expectancy increases, MOM will endeavour to provide more comprehensive support for senior workers. As a matter of fact, in the past 10 years, the employment rate of seniors has increased substantially and is quite high compared to developed countries.”
“This is because employers will need to make considerable adjustments. They must plan ahead and step up efforts to make workplaces more age-friendly. The Workgroup cautions that even as the retirement age and re-employment age are raised over time, it is critical to ensure flexibility of employment arrangements. Our economy is diverse, both in terms of business models and operational needs. Workers, too, have different preferences and health conditions. We must, therefore, avoid being overly prescriptive when setting new rules. I am heartened by the progress made by the Workgroup. I also agree that we should carefully consider the timing and pacing of these moves. In fact, countries looking to raise their retirement ages typically make their intentions known five to 10 years in advance. And each move is relatively modest. For example, Denmark’s retirement age is set to go up from 65 to 68 by 2030, over 11 years. For Singapore, we started talking about re-employment in 2007 before it became law in 2012. Five years. In the next phase of its work, the Workgroup will build a tripartite consensus on how far and how fast the retirement age and re-employment age should be raised. The CPF contribution rates for older workers will also be a topic of their consideration. They will balance the need to help improve retirement adequacy and sustain employability for our older workers. However, one thing is clear, even when the retirement age and re-employment age are raised, the CPF payout eligibility age of 65 will remain unchanged at age 65. CPF members will be able to withdraw their payouts any time from age 65. Ms Foo Mee Har, Mr Png Eng Huat and Ms Sylvia Lim have asked about financial security, flexibility in use of CPF savings and CPF top-ups.”
“It has also been meeting with employers, particularly the Singapore National Employers’ Federation (SNEF). It tries to balance views from both sides. It must also consider what is right for our country. At many points in the process, there were differences. The key question was, should we only raise the re-employment age beyond 67 but not the retirement age beyond 62? The answer was, in the beginning, not at all clear. Recently, the Workgroup updated me on their thinking, they provided the same update to NTUC Secretary-General Brother Ng Chee Meng and SNEF President Brother Dr Robert Yap. All three of us are Advisers to the Workgroup. The Workgroup needs a few more months before putting up their detailed recommendations. But we have a clear tripartite consensus. I am glad that the Workgroup believes we should raise both the retirement age and the re-employment age. [Applause.] I agree with the Workgroup and I will try my best to make it happen. Let me share now share their three-point agreement, which explains why. First, the retirement age remains relevant and should go up beyond 62. This is because our people enjoy more years of good health and remain productive at work well into their 60s. A higher retirement age will motivate both workers and employers to invest in skills upgrading and job redesign for their older workers. Second, the re-employment age remains useful and should also go up beyond 67. Although most workers who are eligible get re-employed in the same job at the same pay, the flexibility to reset jobs and terms help employers cope with business uncertainties. Employers are more willing to employ older workers because of it. Third, the increases in retirement age and re-employment age should be implemented in small steps over time.”
“Until 62, employers are not allowed to retire or, in other words, dismiss a worker on account of his age. This is why NTUC calls for the retirement age to be raised, not removed. This will give workers protection up to an older age. Besides considering the wishes of workers, we should also understand what employers want. One reason Singapore has been able to keep employment high and unemployment low is labour market flexibility. This flexibility ultimately benefits workers, because it does not discourage employers from hiring them. This does not mean we do away with rules completely. When rules are inadequate, workers’ interests may be compromised. But when rules become too onerous, employment may suffer, which is also not in workers’ interest. The Singapore way is, therefore, always to strike a balance, to be pro-worker and pro-business in all that we do. 4.30 pm On key issues which concern both workers and employers, we must build a tripartite consensus that is also sustainable for the future. This is why in May last year, I formed the Tripartite Workgroup on Older Workers. Among other things, the Workgroup has been reviewing the longer-term relevance of the retirement age and re-employment age. In many other countries, it has been very hard to move on these issues. Deep distrust and division prevent people from focusing on the future. They keep harping on the past why certain changes should not have been made. Why is it now compromising us? They are always still talking about what happened five years ago, 10 years ago, and they cannot get past that debate to move to the future. We must try and avoid that and do better. The Workgroup, therefore, consulted widely. It heard the views of workers and unions.”
“Beyond WorkPro, there is scope to review policy. Our employment rate for seniors has, in fact, risen steadily over the years. We had raised the retirement age before. In 2012, we introduced re-employment after Japan started the practice. On reaching the current retirement age of 62, a worker must be offered annual re-employment by his employer up to 67, even though the job and salary may change. In practice, well over 90% of workers eligible for re-employment and who also wish to continue working are offered re-employment every year – well over 90%. These policy changes over the years to retirement age and re-employment age have helped our seniors work longer. They have also helped our businesses tap on a wider workforce. Compared to the Organization for Economic Cooperation and Development (OECD) countries, we now rank third for our employment rate for persons aged 65 and above. Some people and even Assoc Prof Daniel Goh have called for the removal of the retirement age, but labour Members have not done so. Why is there a difference? When a company removes the retirement age from its HR policy manual, it is good news for its workers. It means the company gives a commitment it will not retire any employee at any age for as long as the employee wishes to continue working. That is what it is, at the company level. But if the retirement age is removed from the law, it is bad news. It means the employers no longer have any obligation to keep their workers up to any age. In other words, any employer can retire any worker at any age. Labour Members have studied the law and understand this crucial difference. The statutory minimum retirement age of 62 is actually protection for the workers.”
“Its local training programmes include online tutorials on food and workplace safety, Coursera subscriptions for its staff, and even curated courses with local universities. The company has also implemented role-specific career progression roadmaps for some of its frontline roles, which chart the skills they need at every level. Its progressive HR practices make it an attractive place to work in. Mr Chairman, let me now turn to the very important topic of supporting senior employment. Mr Chong Kee Hiong asked about the WorkPro Scheme which offers the Job Redesign Grant (JRG) and the Age Management Grant (AMG) to help employers make their workplaces more age-friendly. Over 1,750 companies and about 20,000 older workers have benefited from the Workpro, Job Redesign Programme since it was enhanced last year. Under the Workpro AMG, over 250 companies and 3,800 older workers have benefited. Progressive employers are making it easier for seniors to work. Take, for example, Mdm Lim Swee Choon, who is in her early 60s. She chooses to work flexi-hours on weekdays from 8.30 am to 3.30 pm at Sushi Express, a progressive employer that implemented job redesign and FWAs. A former housewife, Mdm Lim returned to work after her four kids grew up. This is her first job, and she enjoys being with her colleagues, many of whom are seniors as well. As everyone is well-trained in all roles, they take turns covering one another's duties and rotating between stations every week. What does she do after work? She enjoys her free time with her friends, doing volunteer work at the temple, singing karaoke or line dancing at the community club! The current WorkPro funding period will end by June 2019. We believe it remains useful. We are reviewing it and will share the results when ready.”
“It reached out to WSG on its training programmes and made plans to take on interns from local polytechnics and universities. As a result of its efforts, it hired an additional 14 locals over a period of one-and-a-half years. I know such actions by TAFEP are not popular. But I hope Members will back us up even if these companies appeal to you. I can assure you that TAFEP is not vindictive. It only seeks to ensure that our PMETs' interests are properly safeguarded. Employers who are fair to locals need not worry. But if they are not, please understand why we do not accept it. Members can also be assured that we deal firmly with employers who try to be funny. For example, we keep a lookout for employers on the watchlist who use related entities to apply for EPs to bypass our controls. For such cases, we can and have curtailed the work pass privileges of all the related entities. While we take unfair employers to task, we must also recognise fair and progressive employers. They make it a point to develop a strong local core, which is what we look for in the Human Capital Partnership (HCP) Programme. In 2018, we recognised about 130 new HCP firms. This brings the total number of HCPs to about 540, 40% of whom are SMEs. HCP firms' commitment to human capital development not only benefits their employees but also allows them to better attract and retain local talent. Today, they employ more than 190,000 locals, which is about 8% of the total workforce. Local PMETs account for about 90% of HCP firms’ total PMET workforce. Even at the senior to top levels, more than 80% are locals. BreadTalk is an example of such a progressive company. It invests heavily in human capital development through its inhouse BreadTalk University.”
“We identified these firms as their workforce profile suggested nationality bias. TAFEP also investigates feedback from the public about possible discrimination against Singaporeans. For employers found wanting, their EP applications are closely scrutinised. Since 2016, a total of 2,300 EP applications has been rejected or withheld by MOM or withdrawn by the employers – 2,300. While we take a firm stance against these companies, TAFEP also works with them to improve their HR practices and support local hiring. These efforts have helped. So far, 260 firms have improved their HR practices and exited the FCF watchlist. In addition, firms on the watchlist have hired more than 3,800 Singaporean PMETs to date – 3,800. One such firm operates in the Architecture and Engineering field. When it was placed on the FCF watchlist in June 2017, the firm was not interested to work with TAFEP. So, repeated attempts to engage the company failed. What could we do? We curtailed its work pass privileges. This got their attention. The HR manager sent in multiple appeals to her MP to be taken off the watchlist, in fact, called at the MP's Meet-the-People Session, which every one of us do. The company claimed that the EPs were critical because they were needed for a public project. So, MOM looked into the case. We consulted with the agencies overseeing the project. The company had barely tried to improve local hiring when it could have. You look at the kind of jobs that they are hiring for, and you asked "Are there Singaporeans who can do these jobs? Let us look at our jobs bank; let us look at our applicants." Yes, there are. Therefore, we had to reject their EP applications and also the MP's appeal. In the end, the firm realised that there was no shortcut.”
“This is a traditional family-run business that creates medals and decorations for royal families. While their business was doing well, their customer base was small and, not surprisingly, none in Singapore. Royal Insignia hoped to break into the luxury consumer market by producing new ornaments that require advanced enamelling techniques. Enamelling is the art of applying powdered glass to metal surfaces. As this was a rare technique, they had to consult with Russian universities and review many portfolios before they found the right expert, Daria. Over the course of three months last year, Daria trained 15 of Royal Insignia's local employees in advanced enamelling techniques, such as the creation of 3D forms and colour gradients. As a result, the company’s product range has expanded and it is now more competitive. As we keep our doors open, we must also find ways to raise quality. Members will recall that qualifying salaries for EPs were raised in 2017. As a result, numbers have come down because of exits at the lower end. The effects of these changes will continue to be felt in 2019. We are not planning more moves for now, but will review the need to regularly. In the meantime, we continue to be very serious about the FCF. It is to ensure local PMETs are given fair treatment in terms of hiring. From July last year, we expanded the FCF requirement. More firms must advertise more jobs to locals before MOM will accept the EP application. Mr Patrick Tay, Mr Lim Biow Chuan and Mr Pritam Singh asked for an update on the FCF watchlist. There are currently 350 employers from across all sectors and firm sizes on the watchlist. The top five sectors are: Administrative and Support Services, Education, Infocomm, Professional Services and Wholesale Trade.”
“Some may feel it is acceptable because we do not know their circumstances. They may not feel that they are up to other kinds of work. But for the purposes of meeting the quotas, MOM applies a simple test and that is whether the job pays above a certain level. We call this the local qualifying salary. As the wages of locals rise, the local qualifying salary must also be regularly adjusted. Given wage trends, the local qualifying salary will be raised from $1,200 currently to $1,300 in July 2019. 4.15 pm As in the past, when the Local Qualifying Salary was raised by a similar amount, the cost impact is expected to be small. As announced at last year's COS, the minimum qualifying salary for S Pass holders will also be increased to $2,400 from 1 January 2020. Some Members have concerns whether our businesses can still compete globally. This is why, even as we update our foreign workforce rules, we must remain open. There will always be expertise or specialist skills that are in demand globally but in short supply in Singapore. Our policies must enable Singapore-based companies to assemble the best international teams to compete on the world stage and create more quality jobs for our people while we build the local pipeline. This is why we piloted the Capability Transfer Programme (CTP), which Mr Patrick Tay asked about. It aims to help firms quickly develop and transfer new capabilities in growth areas to our local workforce. More than 100 companies are expected to benefit from CTP-supported projects. These include industry-level and company-specific projects in areas, such as precision engineering, logistics, lift maintenance, waste management and air transport. An example is Royal Insignia.”
“More critically, should we, as a society, accept that many jobs in Services are unattractive to locals? Should we, as a society, accept that? So many jobs. Every one of them not acceptable to locals? What does it say? Should we not invest effort to uplift some of these jobs to be more appealing to locals? I am glad some Members believe we should. Some firms are already leading the way. They have re-examined where routine work can be reduced, for example, stocktaking in retail businesses. Nowadays, with radio frequency identification (RFID), a quick scan and stock is taken. They may also reduce headcounts in backend functions but keep people deployed in frontend roles so as to maintain good customer service. As they need fewer staff, they may be able to pay each worker more. On the Government’s part, we will continue to support firms in their transformation journey, for example, through the Lean Enterprise Development (LED) scheme. This includes the enhanced and extended Enterprise Development Grant (EDG) and Productivity Solutions Grant (PSG) that Minister Chan Chun Sing talked about in his COS speech. Since 2015, we have helped more than 14,000 companies of all sizes and across sectors. If a firm commits to a transformation project that will make it more manpower-lean but needs extra workers in the transition period, we are prepared to help. We will also support firms in their efforts to build up their local pipeline through our A&G initiative that I spoke about earlier. From time to time, we hear about employers hiring locals just to meet the quotas. The local workers are not asked to do very much. I hope most people will agree with me. It is up to the workers to decide if they wish to take up such jobs.”