Lee Boon Yang
Singapore
“6 The other guidelines are that there must be a post office sited within 5 km of every private residential estate and within 1 km of any commercial or industrial estate. MAID LEVY CONCESSION (Applications by the disabled) 32.”
“Madam, can I quickly respond to the point on assistive technology? Certainly this is an area of interest. We cannot say that we have the capability at this juncture but we will certainly look into what is possible and work with our ICT sector.”
“Nevertheless, if the spouse of the homemaker is working, he will be eligible for WIS if he satisfies the criteria. Husbands of homemakers are further eligible for tax relief.”
“Sir, I do not think it is quite correct to say that we always expect our own artists to perform for free or do public service. There are, of course, occasions where we do seek Singapore artists and arts companies to contribute to the national causes. For instance, when we went international for Singapore Season in China.”
“Ms Sylvia Lim asked the Minister for National Development (a) what checks does the Ministry or the National Environment Agency have in place to prevent mistaken payments to hawkers who cease operations due to upgrading works at hawker centers; (b) how did the mistaken payment of $18,000 to Mdm Lee Ah Muey come about; and (c) what will the…”
“While it was also true that initially the reaction or the response of the licensing authority was that foreigners should not participate in such an event at the Speakers' Corner - because there is already an existing prohibition against any foreigners taking part in any activities at the Speakers' Corner - subsequent assessment resulted i…”
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“I am sure the Minister for Defence will give him a considered answer. Mr Tay supported the Amendment Bill and expressed strong support for the amendments that we have in this Bill, but he took it beyond the focus of this Amendment Bill. He spoke at length about how tripartite support was important for the CPF scheme. I agree with him. Our CPF scheme works well because we have tripartite support. Employers support it. Trade unions support it. Government continues to encourage, refine and improve the system. It is almost an institution in Singapore in our labour market. He expressed concern that employers are still facing difficulties although the economy has recovered sharply. We are aware that not all sectors of the economy have fully recovered. For instance, the construction sector is still not doing as well as the manufacturing or the services sector. We also understand that some of the SMEs are not doing as well as some of the larger companies. I hope that he understands that the CPF cut was, in effect, a blunt instrument to reduce cost overall across-the-board for the whole economy. It has worked in that it has allowed companies that were facing grave dangers to survive the crisis. Now that the economy has turned around, we should start to restore the CPF as soon as we could to the degree that the economy can support without doing grave damage to our own competitiveness. I think that is what we are doing. First, restoration of 2% in April of this year and from next year onwards a 4% restoration. We believe that these are changes that can be accommodated by the employers without seriously affecting their competitiveness. He asked whether we could introduce other more innovative measures to help employers to retain their competitiveness to moderate their wage cost.”
“And we definitely do not have to wait for the full five years. He also asked whether we could try to get more non-employees, the self-employed, for instance, to benefit from the CPF system. We have already, for some years, been trying to get the self-employed to contribute, starting with Medisave. There is a scheme by which self-employed people have to contribute to Medisave in order to be eligible for various trade licences and permits. It has worked quite well. Quite a large number of self-employed people are now contributing to Medisave. I also want to point out, Mr Deputy Speaker, Sir, that in fact self-employed people are constantly being encouraged to contribute even to the Ordinary Account and Special Account of their CPF by way of tax incentives. I believe they are entitled to claim, up to a certain limit, a tax exemption on about $14,000 a year as voluntary contribution to CPF. This is one way by which we can encourage the self-employed to become members of CPF and also to enjoy the benefits provided by the scheme. As the number of self-employed or contract workers increases, we will continue to publicise the scheme with such tax incentives so that more and more of them will voluntarily sign up with CPF and take advantage of the tax incentives. Mr Thomas raised another point which is really not connected to this Amendment Bill. This is on NSmen's allowance. NSmen are not employees. So NSmen's allowance is not a salary or wage in the normal sense. That is why NSmen's allowance does not attract CPF contribution. He asked whether we could increase NSmen's allowance to the market wage for people of that age group. I suggest that he take it up with the Minister for Defence at the appropriate opportunity.”
“Mr Thomas Thomas also supported the amendment and I thank him for his support, in particular, the amendment on the topping-up of grandparents' accounts, and also extending the definition of "related person" to a wider scope, so that there could be more family support. He had some concern about whether, in fact, giving the Minister the power to exempt certain payments from attracting CPF could become a loophole that could be abused by employers. Let me assure him that we are very conscious of this possibility. That is why when we crafted this amendment, we provided that the Minister can make conditions for such exemption, and the conditions will be very narrow. It will be specifically focused on long service awards and would not allow employers to take advantage of this provision to seek exemption from CPF for other payments which are normally part of wages or salary. He also asked, in the same vein as Mr Tay Beng Chuan, about the CPF cut and when will it be restored. Our position is that we will want to restore the employer's CPF contribution to the pre-crisis 20% level as soon as we can. When we introduced the cut during the economic downturn in 1998, we thought that it might take anywhere up to five years in order to be able to turn the economy around and to restore the CPF cut of 10 percentage points. But as it is, the economy has undergone a sort of V-shape recovery after hitting the bottom. I think we are able to speed up the process of restoration. That is why on 1st April of this year, we had introduced a 2% restoration, and we have already announced that on 1st January next year, there will be another 4% restoration. If the economy continues to bounce back and remain healthy and competitive, then I think we should be able to speed up the pace of restoration.”
“In other words, if a CPF member were to put cash into the parents' accounts, to top up the parents' retirement accounts, we are prepared to waive the need to have this 10-year time limit. It is not necessary. So it can be done away with. But in the case of those who may be using their CPF to top up their parents' accounts, this needs further study to see whether if you extend the 10-year time limit, would they be able to continue to maintain such top-up and how would it impact on the member's own accumulation of savings for his retirement. We need further study on this. For cash top-up, we will waive the time limit. But in the case of transfer from the children's CPF account to the parents' accounts, we need further study. Mr Charles Chong also asked about the one-year time bar for those who committed suicide or has committed intentional criminal act resulting in forfeiture of their insurance cover under the Home Protection Insurance Scheme and the Dependants' Protection Insurance Scheme, and he asked whether the Minister could grant exemption in some cases. Let me point out that section 36(5), as it is crafted, states that "the Board shall not be required to make any payment if death is by suicide." And with this amendment, the result of a court conviction within one year of taking up the insurance. I think the way the section is framed, "that the Board shall not be required .", would suggest that while the dependants cannot expect the Board to pay the insurance claim under such circumstances, if in examining the case the Board considers that there are special circumstances, it may decide then to proceed with the payment. There is no injunction against making such a payment. So there is some amount of flexibility on the part of the Board.”
“Mr Deputy Speaker, Sir, first, I would like to thank Mr Charles Chong, Chairman of the GPC for Manpower, and all the other hon. Members who spoke up in support of this amendment Bill. I would like to respond to the points that were raised by Members. Mr Charles Chong supported the provision for the cash top-up for grandparents, and I think most of the other Members who spoke on it also supported it. For instance, Mr Ang Mong Seng, who while supporting this provision for cash top-up for grandparents, pointed out what appears to be an inconsistency between the cash top-up for grandparents and the top-ups for parents. Currently, under the Minimum Sum Topping-Up Scheme, the children have 10 years to top up their parent's retirement account, from the age of 55 when the parent could have withdrawn the CPF money. The time bar was introduced when we first had this Minimum Sum Topping-Up Scheme to encourage children to top up their parent's CPF account as early as possible, rather than to drag it over a long period. In the case of grandparents, I think it will be very difficult to impose such a time bar. If you do impose such a time bar, then very few grandparents will be able to enjoy the benefit of this top-up. Because, if the age limit is 65, then there are going to be very few grandparents who have grandchildren old enough to be working and earning a salary and able to top up their grandparents' accounts before the grandparents are aged 65. So we have decided that for the grandparents' top-up scheme, there should be no time bar. Similarly, we will, in fact, waive the 10-year time bar for the parents' topping-up scheme in the case of cash top-up.”
“Last but not least, it will safeguard members' interests by extending the Home Protection Insurance Scheme cover to 65 years of age and ensure that the employer's arrears can be recovered more expeditiously. Sir, I beg to move. Question proposed.”
“We see no need for such awards to attract CPF contributions. In exempting such "long service awards", we will spell out conditions to safeguard employees' interest; (2) Clause 3 to empower the Minister to appoint a temporary Chairman during the temporary incapacity or temporary absence of the Chairman, and empower the Chairman to authorize any members of the Board to exercise any power or perform any function conferred on the Chairman by or under the CPF Act; (3) Clause 5 will allow CPF members to pledge their properties in lieu of part of the Minimum Sum if they co-own the properties with their immediate family members. This will enable such members to meet part of the Minimum Sum requirement by such pledges and enable them to withdraw some cash at age 55 from their CPF account; (4) Clause 18 will allow the court to order the recovery of CPF arrears, in addition to the fine and/or imprisonment under section 7(3) of the Act; and to recover the CPF arrears in the same manner as a judgement in civil proceedings. This will enable the CPF Board to help members to recover the arrears more expeditiously; and (5) Clause 19 will allow members who are legal owners of a piece of land or a property by way of inheritance to use their CPF savings for the construction of properties on the land and the servicing of outstanding housing loans. In conclusion, the amendments proposed in this Bill will allow CPF members to invest their Special Account savings to enhance their old age savings and enjoy tax benefits announced by the Finance Minister in the FY2000 Budget Statement. It will ensure that the provisions of the CPF Act continue to be relevant and in line with the objectives of the CPF system.”
“It also enables the Board to decide how a member is to make-up for any shortfalls in premium payment and allow joint owners of the property who are husband and wife, to pay for each other's share of the premium. Clause 13 repeals sections 34 and 35 which relate to when premiums under the Home Protection Insurance Scheme and Dependants Protection Insurance Scheme are due, and the period of cover for the Home Protection Insurance Scheme. Clause 14 clarifies that the Board's payment under Home Protection Insurance Scheme shall be in proportion to the member's liability for the repayment of the housing loan. It also clarifies the Board's payment under different scenarios of incapacity or death of the member. Clause 15 amends section 39 to enable the Minister to prescribe the mode of Home Protection Insurance Scheme premium payment. This will replace the repealed sections 34 and 35, and pave the way for the CPF Board to allow premium payments by instalments under the scheme in the future. Sir, this Bill also introduces other amendments to meet the administrative and operational needs of the CPF Board and to better serve members' needs. These include: (1) Clause 2 to amend the definition of "wages" in section 2 so as to enable the Minister to exempt certain payments from being included for the purpose of CPF contribution. This is not intended to change the basis for calculating CPF contribution which will continue to be based on remuneration in money, including any bonus, due or granted to a person in respect of his employment. The exemption introduced by this amendment is directed at occasional payments, such as "long service awards". Such awards are given by employers to reward employees for their loyalty, for having remained with the company for long periods of time.”
“In other words, there are CPF members who buy a HDB flat and say that they already have an existing private insurance policy which will ensure that they can pay up their mortgage and they ask for an exemption, and such exemption is then given. There is a real concern that some members may not be able to service their private insurance policies for a variety of reasons, maybe as a result of retrenchment, loss of job, or some other financial difficulties. It could easily happen that they would then let the policy to lapse. The result is that the member's dependants would then be completely unprotected in the event of untimely death or permanent incapacity of the member. Hence, while exemption will continue to be allowed, there should be some conditions so as to require the member to resume the Home Protection Insurance Scheme once he has allowed the private insurance or the personal insurance policy that he has to lapse. This will ensure that the family will continue to be protected and do not lose a home due to an unfortunate event. Sir, currently, there is an upper age limit for Home Protection Insurance Scheme. Clause 10 of the Bill will also extend the age limit of such a coverage from 60 to 65 years. This will provide older members who are still servicing their mortgage loans five extra years of coverage and protection. In particular, those who have upgraded to bigger HDB flats later in life, will now enjoy the Home Protection Insurance Scheme protection for a longer period. Clause 11 amends section 30 to clarify that the Home Protection Insurance Scheme will provide cover for only one property at any one time. Clause 12 amends section 32 to give priority to the deduction of premiums over other deductions.”
“In such cases, the CPF Board shall not be required to pay the insurance claims if the criminal act is committed within 1 year from the date that he is insured under the scheme(s). Clauses 14 and 16 of the Bill amend sections 36(5) and 49(4) of the Act to provide for the above. Let me qualify what I mean by intentional criminal act. I am not referring to minor offences or acts of negligence such as some offences committed while driving a car which could, in fact, result in the offender's injury or even death. In such cases, the CPF Board has been paying the claims and they will continue to do so. Intentional criminal act in this context means a premeditated act, which any citizen would know, will draw serious penalties such as drug trafficking, gang robbery and murder. For example, if a member was involved in robbing a bank and was shot dead in the exchange of fire with the police, the 1-year time bar will apply. Or, if he participated in gang robbery and murdered a victim in the course of the robbery and was subsequently convicted and executed, the 1-year time bar will also apply. Likewise if he was convicted of a drug trafficking offence and executed, the 1-year time bar will also apply. Sir, I now move on to clause 10 which amends section 29 to enable the Minister to prescribe conditions for members to be exempted from taking the Home Protection Insurance Scheme. The need for this arose from the Board's experience of a sharp increase in the number of cases applying for such exemption on account of their private insurance coverage.”
“This will help to strengthen the multi-generational family bonds and reinforce the Asian tradition of looking after our parents and grandparents in their old age. Clause 9 amends section 19 to provide for the monies paid to a member's grandparents' retirement account shall, on the grandparents' death, be returned to the account of the member who made the payment. Mr Deputy Speaker, Sir, I will now touch on the CPF Home Protection Insurance Scheme and the Dependant's Protection Insurance Scheme. The CPF Home Protection Insurance Scheme was introduced to protect CPF members and their families from losing their HDB flats should the insured die or become permanently incapacitated before their housing loans are paid up. The Dependant's Protection Insurance Scheme aims to provide CPF members and their dependants with financial assistance in the event that the insured member becomes permanently disabled or die prematurely. Currently, under both insurance schemes, claims are not payable if the death or permanent injury of the insured member arising from deliberate self-injury occurs within 1 year from the date that he is insured under the schemes. The 1-year time bar is imposed to prevent abuse where a CPF member may intentionally join the schemes before he attempts to commit suicide. This policy is valid and will be continued. However, there are cases where the act of suicide is committed within the 1-year period but the death happens after the period. Claims for such cases should not be accepted, as the intention to inflict self-injury within the time bar has been made clear. Similarly, the 1-year time bar would apply in cases where the insured member's death or permanent incapacity was the result of his own intentional criminal act.”
“But if CPF members do not wish to risk investing their CPF savings, they can keep their savings with the CPF Board which provides a guaranteed minimum return of 2 1/2% for savings in the Ordinary Account and 4% for savings in the Special Account. Sir, I will now touch on the amendments affecting the Budget 2000 measures. Currently, under the Minimum Sum Scheme, a member may, upon reaching age 55, leave his Minimum Sum with the CPF Board, deposit it with an approved bank or use it to buy an annuity from an insurance company. CPF savings in excess of the Minimum Sum can be withdrawn. To encourage more prudent financial planning with CPF savings, Finance Minister announced in the FY2000 Budget Statement that the current tax exemption for annuities bought with the Minimum Sum would be extended to annuities bought with CPF savings beyond the Minimum Sum. The same tax treatment would be accorded to interest income arising from CPF savings beyond the Minimum Sum deposited with approved banks. Clause 6 of the Bill introduces a new section 15B to provide that a member who is entitled to withdraw his CPF savings may set aside, in addition to the Minimum Sum, an additional sum and deposit it with any approved bank or use it to buy any approved annuity. CPF members will enjoy tax exemption on the monthly withdrawals from this additional sum set aside. In Finance Minister's FY2000 Budget Statement, he had also announced that the tax relief for cash top-ups for parents under the Minimum Sum Topping-Up Scheme would be extended to grandparents with effect from Year of Assessment 2001. Clause 7 amends section 18 of the CPF Act to extend the Minimum Sum Topping-Up Scheme to grandparents.”
“Products that are suitable for investment using the Special Account savings include long-term bank deposits; deferred annuities; endowment insurance policies; Singapore Government/statutory board and other bonds guaranteed by the Government; and selected unit trusts and investment-linked insurance policies. The list of approved unit trusts and investment-linked insurance policies will be based on the lowest three tiers of the Risk Classification System adopted under the CPF Investment Scheme. These comprise mainly money market, fixed income and balanced funds. Higher risk unit trusts and investment-linked policies, comprising funds wholly or mainly invested in equities, will not be allowed under the scheme. CPF members are also not allowed to invest their Special Account savings in individual stocks and gold. This is to prevent their Special Account savings from being exposed to unhedged risks. Sir, as the CPF Act currently does not have any provision to allow the withdrawal of Special Account savings for investment, clause 4 of the Bill amends section 13(1) of the Act to allow moneys from the Special Account to be withdrawn for approved investments under existing section 77(1)(m). This will give CPF members wider access to more investment options. However, as with any investment, CPF members would have to exercise careful judgement and decide for themselves the level of risk that they are willing to take in their investment decision. If they take a long-term view and exercise prudence in their investments, they are likely to enhance their old-age savings to better meet retirement needs.”
“In November 1999, the Inter-Ministerial Committee on Ageing Population recommended that Special Account savings in excess of the Minimum Sum be allowed for investments in retirement-related instruments. The Committee concluded that there are in existence today adequate avenues for low risk long-term investments which can help CPF members to enhance their old-age cash savings. The Government accepted this recommendation to give CPF members the opportunity to earn higher returns on their retirement savings. On closer study, my Ministry concluded that by restricting the class of retirement-related instruments, we did not even require CPF members to lock up the Minimum Sum. In other words, it was possible to allow members to invest all of their Special Account savings in such a retirement-related instrument. However, the basic principle that the Special Account savings should not be exposed to high investment risk remains valid. Hence, such investment should not go to high risk high return speculative instruments. We have to make a risk/return trade-off and balance the goal of enabling CPF members to earn higher returns against the fact that the Special Account savings represent the basic safety net for many Singaporeans. The advantage of allowing all Special Account funds, including the Minimum Sum, for approved investments is to encourage our citizens to take greater responsibility for their old age security and to take financial planning more seriously. Sir, to reduce the exposure of Special Account savings to investment risk, only lower-risk instruments would be allowed.”
“Mr Deputy Speaker, Sir, I beg to move, "That the Bill be now read a Second time." In August 2000, the Government announced that, with effect from 1st of January 2001, CPF members would be allowed to invest their Special Account savings in the lower-risk financial instruments that are suitable for retirement savings. The CPF (Amendment) Bill before the House today seeks to amend the CPF Act to allow for the withdrawal of moneys from the Special Account for approved investments. The Bill also seeks to amend the CPF Act to enable the implementation of new schemes announced by the Minister for Finance at the financial year 2000 Budget Statement and to give effect to other changes to better serve CPF members. First, on the investment of Special Account fund. Since its introduction in July 1977, the CPF Special Account had remained the most protected portion of a CPF member's savings. Over the years, we had gradually liberalised the CPF rules to allow members to use savings in their Ordinary Account to purchase homes, invest in shares, buy insurance policies, unit trusts, or even place in fixed deposits. Only the savings in the Special Account had remained untouched. Why? Because the Special Account was seen as a member's cash savings for his retirement. The Special Account complements the Minimum Sum Scheme. This is so because, for most of the CPF members, the cash needed to be set aside for the Minimum Sum would come largely from the Special Account savings. Most members by age 55 would have withdrawn a large part of the Ordinary Account savings to finance the purchase of their homes. Hence, the Special Account would provide most of the cash savings for their old-age needs.”
“A foreigner whose salary far exceeds the basic monthly salary of $2,000 will be considered favourably for a Q1 workpass which will allow him to bring in his dependants. Even if the foreigner does not possess the equivalent of a full NTC-2 certificate or 5 GCE `O' levels, we are prepared to consider him or her for a Q1 pass provided there is adequate and relevant expertise for the job in Singapore. The purpose of the workpass system is to allow us to differentiate the different levels of talents, e.g. P1/P2 for the top level and Q1/Q2 for the middle management. This will help us to focus our efforts and grant of privileges to attract the different groups of foreign talent. Making exceptions to certain groups of Q2 workpass holders will only distort the current system. It would not be advisable to do so especially when we can accommodate these groups of foreigners under the current framework. WRITTEN ANSWERS TO QUESTIONS PETROL DUTY 1. Mr Tay Beng Chuan asked the Minister for Finance (a) what is the total amount of additional revenue collected by the Government from petrol duty as a result of the petrol pump price hikes since the commencement of the current financial year; and (b) whether there is any proposal to plough back this additional revenue to the economy to ease the cost pressure on the sectors adversely affected by the oil price increases.”
“Since 1st July 1994, my Ministry had allowed foreign students above 14 years of age and who are full-time matriculated or registered student of approved institutions of higher learning (IHLs), post-secondary, and secondary schools to work during their vacation without having to apply for a work permit. Since January 1997, we had also allowed full time foreign students in our tertiary institutions to work part time without the need to apply for a work permit. The maximum hours of work should be no more than 16 hours a week and these students should first seek the permission of their tertiary institution before working. This is to ensure that their studies will not be adversely affected by their part-time work. As the number of foreign students in tertiary institutions who intend to take up part-time work is relatively small, the exemption from a work permit is not so much to help ease our tight labour market but to provide foreign students an avenue to finance part of their studies in Singapore. In June this year, foreign students from the Singapore Management University (SMU) have also been exempted from applying for a work permit if they intend to work part-time. FOREIGN WORKERS 36. Mr Tay Beng Chuan asked the Minister for Manpower whether his Ministry will consider granting dependant passes to spouses of Q2 employment pass holders with an income far exceeding the stipulated salary ceiling of $2,000, so as to encourage the more mature and experienced foreign talent to take up jobs where Singaporeans have no expertise.”
“As the world is our hinterland, a strong and effective multilateral trading system is in our best long-term interest. We therefore attach the greatest importance to multilateral liberalisation under the WTO. Liberalisation of trade and investments under the WTO takes time, as 138 members are involved. To catalyse the liberalisation process, like-minded countries can move ahead with bolder liberalisation measures. The benefits of such measures will have a demonstration effect and build momentum for further liberalisation. In this way, FTAs can serve as building blocks to the WTO. It is, however, important that FTAs do not lead to the formation of inward looking, protectionist blocs. Hence, our FTAs are consistent with WTO requirements, and are open to accession by other members. Singapore's FTA partners, which span different continents and regions, can help forge linkages across regions and avert the danger of a world fragmenting into distinct trading blocs. FOREIGN MISSIONS 34. Mr Simon S C Tay asked the Minister for Foreign Affairs whether it is timely to establish resident missions in the capitals of Canada and Mexico, in view of our increasing economic and trade links with those countries.”
“Such a Partnership will involve an enlarged market size of 530 million people, and a combined GDP of over US$1.2 trillion. A high level Task Force, led by Mr Cesar Virata, has completed an excellent report on the value of such an agreement. Mr Tay asked how such FTAs benefit our workforce and business community. There are substantive as well as strategic benefits. Substantively, FTAs provide for a higher level of liberalisation in trade in goods and services, and in investment. Our manufacturers and traders can enjoy lower tariff and better market access. Provisions to facilitate trade and to remove non-tariff barriers will also promote faster and more efficient flow of goods, thereby lowering business costs. These provisions include the mutual recognition of standards and conformance measures, and the simplification of customs procedure. Our consumers also benefit from a greater variety of products. Many of our businesses have also embarked on a globalisation strategy. FTAs help to open up markets, especially in services, and provide legal safeguards on investments. This facilitates our businesses in their overseas ventures. It also helps us to draw in investments and create jobs for our workers. FTAs can also have collaboration elements to deepen economic linkages between the partner economies. For example, the proposed Japan Singapore Economic Partnership Agreement (JSEPA) includes collaboration in high-growth, high-tech areas. These can help us create high value-added jobs in both countries, and enhance our competitiveness. FTAs are also of strategic importance for our long-term prosperity, and to our ability to create jobs. Singapore is highly dependent on trade, which is almost 3 times our GDP.”
“The joint study between Japan and Singapore officials on establishing a Japan Singapore Economic Partnership Agreement (JSEPA) was concluded on 29th September 2000. The report has recommended a "new age" FTA. Besides the traditional elements of liberalisation of trade in goods and services, and investment guarantees, new elements of collaboration in high-growth areas such as info-communications technology, financial services and life sciences have also been included. The report, which has been published, has been submitted to the Prime Ministers of both sides for a decision on the launching of formal negotiations. For the Mexico-Singapore FTA, we have conducted three rounds of negotiations since my visit to Mexico in May this year. As agreed between myself and my Mexican counterpart, Dr Herminio Blanco, we should try to complete our negotiations for a Mexico-Singapore FTA by November, in time for PM Goh and President Zedillo to witness its signing when the President is in South East Asia for the APEC Leaders' Meeting. However, if negotiations cannot be completed by then, we will continue the negotiations and aim to complete these by the middle of next year. The incoming administration of President-elect Fox has expressed his support for the free trade agreement. We have also held exploratory talks with Canada on a Canada-Singapore FTA. Singapore sees strategic value in such an FTA, that will build a further bridge across the Pacific. We hope to launch formal negotiations once the Canadian Cabinet gives its formal endorsement. At the AEM meeting in Chiangmai last week, the Ministers of ASEAN, Australia and New Zealand agreed to put on the official agenda the consideration of a Closer Economic Partnership (CEP) between AFTA and CER.”
“Employment agents in Singapore are licensed and regulated by my Ministry. They are liable to lose their licences and security deposit should they breach the regulations or conditions of their licences. Under the Employment Agency Rules they can charge a worker and an employer a commission of up to a maximum of 10%, and 80% respectively, of the first month's earnings of the worker, for each successful placement. However, foreign workers seeking work in Singapore typically first secure the service of "agents" in their home country. What these foreign "agents" charge for seeking jobs for their countrymen is totally beyond our laws and control. My Ministry is aware that some Singapore employment agents do help their counterparts collect the foreign "agents' " fees. However, this is a business agreement between the parties which the foreign workers have knowledge of and accepted. This is not a violation of the Employment Agencies Act. FREE TRADE AGREEMENTS 33. Mr Tay Beng Chuan asked the Minister for Trade and Industry what is the progress of the Government's efforts in the Free Trade Agreement negotiations with regional countries and how the business community and Singapore workforce will benefit from the Agreements Singapore has entered into with other countries. BG George Yong-Boon Yeo: Our Free Trade Agreement (FTA) negotiations are progressing at an encouraging pace. We completed negotiations on a free trade agreement with New Zealand on 18th August 2000. This agreement, known as the "Agreement between New Zealand and Singapore on a Closer Economic Partnership" or ANZSCEP, has been approved by the Cabinets of both governments. The agreement will come into force once the two governments sign and ratify it. We hope to do this within the next few months.”
“Unemployed individuals are also given some financial support to tide them over their financial difficulties during their training period. In 1999, more than 200 individuals attended full-time training and about 4,000 participated in part-time training through this arrangement. The approval for subsidy by SDF and SRP is based on the relevance and quality of the training courses. This is necessary to ensure that training leads to skills upgrading and better employability. Both the SDF and SRP are implemented with employer support and inputs so that there is a minimal rejection of training assistance. While the SDF and SRP cater to lower skilled workers, the Government also supports the training of skilled workers and professionals, especially in strategic growth sectors. Examples of such programmes include EDB's Initiatives in New Technology (INTECH) Programme for critical technologies, IDA's Critical Infocomm Technology Resource Programme (CITREP) for the infocommunication sector and MOM's Strategic Manpower Conversion Programme (SMCP), also for the infocommunication sector. Finally, to help the unemployed, my Ministry has set up a Career Centre to provide assistance and advice on employment and training opportunities. Those who are unemployed and have difficulty in securing a job can make use of the free services provided by the Centre. This includes advice on alternative employment opportunities and relevant training courses that will improve their employment prospects. FOREIGN WORKERS' AGENTS 32. Mr Thomas Thomas asked the Minister for Manpower whether he is aware of the practice whereby foreign workers pay huge sums of money to 'agents' to work in Singapore and, if so, what steps are being taken to stamp out this practice.”
“As at June 2000, there were a total of 95,700 unemployed persons. 37% (or 35,500) were aged 40 to 54 years of age. The proportion of job seekers aged 40 to 54 had increased compared with June 1997, before the onset of the economic downturn. In June 1997, this age cohort accounted for 26% of job seekers. The increase in share of unemployed persons for the mature workers was also felt across all educational groupings. Currently, the main focus of Government funded training is to enhance the employability of lower skilled workers because they are more vulnerable to structural unemployment. Most of training programmes for this group of workers are funded by the Skills Development Fund (SDF) and the Skills Redevelopment Programme (SRP). In FY98, the SDF committed about $82 million in training grants. This helped support the course fees for 530,000 training places in the areas of Technical Service Skills, Computer-related Skills, Productivity and Quality-related Skills, Technical Production and Engineering Skills, and Trade and Craft Skills. On top of course fee subsidy provided by the SDF, the Government also spent about $20 million per year to fund the absentee payroll for employers sending their workers for certifiable training under the SRP. The Government recognises that older workers face greater barriers to re-training. Therefore, the SDF and SRP also provide enhanced funding for training of workers aged 40 and above with higher course fees and absentee payroll subsidies. In the case of the retrenched, unemployed or self-employed, SDF and SRP assistance are available to them through the Community Development Councils and self-help groups acting as surrogate employers. Individuals can sign up for part-time or full-time training through these surrogate employers.”
“Mdm Claire Chiang See Ngoh asked the Minister for Manpower if he will give an update on (i) the current extent and nature of unemployment for workers between 40 and 55 years old; (ii) the amount of funds being disbursed for retraining purposes between 1998 and 1999 and the nature of the courses; and (iii) the reasons for rejecting funding assistance for training programmes outside of those determined by his Ministry, if any.”
“I have, on past occasions, mentioned that MOE will be more involved in PSE by paying particular attention on high leverage areas like designing a developmentally-appropriate curriculum, defining the minimum standards of teacher-training, conducting research and improving the regulatory framework. The set of desired outcomes will guide our efforts in these areas and ensure that our aim of preparing a child for lifelong learning permeates throughout the various strands of the review. However, how successful we are in providing an environment that is conducive for children's growth and learning is equally dependent on what takes place at home. The expectations and aspirations of parents have a direct impact on their children's learning experiences. Therefore, I would like to urge parents to help their children acquire the critical foundations of learning, instead of being overly focused on academic results. Annex A The Desired Outcomes of Pre-School Education At the end of pre-school education, children should: - Know what is right and what is wrong - Be willing to share and take turns with others - Be able to relate to others - Be curious and able to explore - Be able to listen and speak with understanding - Be comfortable and happy with themselves - Have developed physical co-ordination and healthy habits - Love their family, friends, teachers and kindergarten UNEMPLOYED WORKERS 31.”
“There are now more venture capital funds and joining a start-up is no longer unusual. The impact of the New Economy will eventually affect all sectors of our economy. The tradeable sectors have responded the most quickly. Many companies have shifted to higher value added activities in Singapore. These require workers who are innovative and better trained. It is a matter of time before the other sectors are similarly affected. We will continue assisting our less competitive companies, especially some of our SMEs, to respond to the challenges of the New Economy. PRE-SCHOOL EDUCATION 30. Mr Simon S C Tay asked the Minister for Education whether his Ministry's recently declared initiative to draw up guidelines for pre-school education will ensure that undue pressure and expectations are not exerted on children at too early an age. RAdm Teo Chee Hean: During the Committee of Supply debate this year, MOE announced a list of desired outcomes (see Annex A below) of pre-school education (PSE). Members may recall that the statement of outcomes focuses on values, attitudes and skills, but makes no mention of specific competencies in reading, writing and arithmetic. This is deliberate, as we want to emphasise that PSE is about preparing children for lifelong learning, rather than just preparation for P1. We are mindful that a child needs to learn in fun ways, and his motivation and interest in learning must be nurtured from a tender age. Feeding him a curriculum that he is not ready for and over-emphasising the academic domain of his development may raise his P1 performance, but it may also dampen his love for learning in the longer term.”
“This year, greater weight has been given to creativity, innovation, and technology in recognition that these are key drivers for sustained economic growth. A new Economic Creativity Index that measures these attributes was put together and given one-third of the total weight. The US was the runaway winner in this category, far surpassing second-placed Finland which ranked second and Singapore which ranked third. The US' number 1 ranking reflects its strength as the global leader in innovation and technology. The US has a large number of world-class research institutions in both the public and private sectors. It leads in technology sophistication and has a deep pool of talented knowledge workers. It also has very dynamic start-ups and strong availability of venture capital. As a whole, the Singapore economy remains competitive. We have in fact improved in many of the technology and innovation indicators this year. However, the competitiveness ranking this year is a strong reminder of the increasing importance of technology and innovation as determinants of competitiveness and growth in the New Economy. We still lag substantially behind the US in this area. Our competitiveness in the New Economy will be driven by how successful we are able to attract global talent and how we can enhance the creativity and enterprise of our work force. We will only know over the long term how successful we are. Judging from the initial response to the Technopreneurship 21 initiative which was launched in April 1999, I am not pessimistic. Rules and regulations to support enterprise have been changed. Start-ups can now list on our stock exchange, our taxation of the ESOP scheme is now more attractive and technopreneurs can set up offices in HDB homes.”
“There are about 800 tower cranes in Singapore serving the construction industry. The operators of these cranes are required to complete a course and test at the Construction Industry Training Institute (CITI). Currently there are about 1,500 licensed tower crane operators with approximately 37% foreigners. In the last two years, there had been a drop in income and job opportunities for crane operators. But this is not just the result of entry of foreigners into this area. During this period the construction industry went into a decline. For the first half of this year, the industry's output is only 81% of the 1998 output over the same period. Under such circumstances, it is unfortunate but not unexpected that workers in the industry will suffer wage cuts. Since there are fewer construction projects, fewer cranes would be deployed and jobs for crane operator is bound to suffer. The prospects for crane operators are closely tied to the prospect for the construction industry. Once the industry picks up with economic recovery, I would expect them to also enjoy wage increase and more work opportunities. GLOBAL COMPETITIVENESS REPORT 29. Mr Seng Han Thong asked the Minister for Trade and Industry what is the significance of Singapore being ranked 2nd in the global competitiveness report. BG George Yong-Boon Yeo: Singapore has performed well in the Global Competitiveness Report for many years. We have been ranked as the most competitive economy since 1996. However, this year, the US was ranked 1st pushing Singapore to 2nd place. MTI studied the Report to find out the reasons for this. We found that the change in our ranking was caused mainly by an important adjustment in the ranking methodology, rather than a deterioration of our competitive fundamentals.”
“Mr Low Thia Khiang asked the Minister for Manpower whether he is aware that Singaporean skilled crane operators in the construction industry are facing dwindling income and potential unemployment as a result of his Ministry's policy on employment of foreign workers.”
“The primary objective of the CPF is to help members save enough for their old age. At the long-term CPF contribution rate of 40%, CPF members will only have enough savings to pay for a home, hospitalisation expenses and basic old age needs. In fact, the Inter-Ministerial Committee on Ageing Population pointed out that CPF members should set aside more savings for old age and it is for this reason that the Government has decided that the Special Account allocation rate should be raised to 4%-8%, depending on the age groups. Workers who need to upgrade their skills, have many opportunities to do so with the support from their employers, the Skills Development Fund (SDF) and the Skills Redevelopment Programme (SRP). Employers who send their workers for training and upgrading courses certified under the SRP are eligible to claim subsidy of up to 70% of their absentee payroll, and 80% subsidy from the SDF on course fees. Individuals who take up training courses to upgrade themselves through their unions or the self-help groups can also enjoy the training grant of 80% from the SDF. In addition, the Government has committed $500 million into a Lifelong Learning Fund to help workers upgrade their skills and seek further training. This fund will be eventually increased to $5 billion. For individuals who pursue courses on their own, the Government also grants them a tax relief of up to $2,500 of course fees. In view of the above, we believe it would not be appropriate to allow CPF members to use their CPF savings for continuing education and training. CRANE OPERATORS 28.”
“Mdm Claire Chiang See Ngoh asked the Minister for Manpower, in our overall effort in promoting life-long learning and letting individuals decide their own career changes, whether he will allow the cost of continuing education to be drawn from Central Provident Fund savings even if the training courses are not what his Ministry considers critical for the new economy.”
“Visitors included school leavers, working adults, families, students, human resource and training managers and members of trade unions. Over 3,000 people took part in the Mind Sports Olympiad which featured mind games and activities designed to stimulate and develop thinking, innovative and creative qualities. The Learning Web which offered over 300 learning activities at various companies, community clubs and other public venues all over the island, also saw encouraging participation - approximately 60,000 participants. Over 80% of the activities achieved more than 50% enrolment. We have received requests from members of the public to have more activities conducted in Mandarin. There were also many suggestions to bring subsequent festivals closer to home. At this point, let me take this opportunity to share with you that the Ministry has commissioned Forbes Research to conduct a survey to determine the learning propensity of Singaporeans and to establish the attractiveness and effectiveness of the Learning Festival. The findings of the survey will be ready by year-end. We will use the findings from the survey to guide us in our planning for future learning festivals and other supporting learning activities. In conclusion, the inaugural Singapore Learning Festival 2000 is but a first step in our journey towards cultivating a nation of lifelong learners. We are doing a more detailed study of this first Festival and will use the lessons learnt to guide us in future activities to promote lifelong learning. CENTRAL PROVIDENT FUND SAVINGS 27.”
“The inaugural Singapore Learning Festival was held over two weeks from 27th August to 10th September 2000. The Festival was supported by 65 partners from the public, private and people sectors. Together we organised more than 300 learning-related activities. The Festival sought to demonstrate the opportunities for lifelong learning to people from all walks of life. It also highlighted the importance of lifelong learning for everyone - young or old, workers or professionals, children or adults and individuals or families and impressed upon Singaporeans the need to continuously acquire new skills and knowledge to remain employable in this highly competitive fast-changing globalised economy. Through the Festival and the other promotional activities, we hope to create greater awareness of the importance of lifelong learning and, over time, achieve stronger commitment and increased participation in lifelong learning. It has only been a month since the end of the Festival, so it is too early to tell if we have achieved the desired outcomes. However, we are pleased with the participation in the festival activities. In all, it is estimated that some 100,000 people participated in the various festival activities. The 2-day Singapore Learning Symposium focusing on creativity, leadership and lifelong learning had about 900 participants including CEOs of local and international companies, community and grassroot leaders, leaders from unions and professional bodies, government officials, and participants from training providers, schools and institutions. Ninety-six per cent (96%) of the respondents of the on-site survey indicated that they would attend the Symposium again. The Learning Expo attracted over 31,000 visitors.”
“All new schools and existing schools under PRIME upgrading will be provided with basic handicapped facilities to make the public areas on the ground floor accessible. In addition, in every school cluster, one school will be equipped with a lift, toilets for the wheel-chair bound and other handicapped facilities to allow accessibility to all floors and all rooms. The Ministry also provides lifts for vertical transportation of goods and people in new schools with buildings that exceed 4 storeys. SINGAPORE LEARNING FESTIVAL 26. Mr Seng Han Thong asked the Minister for Manpower how successful is the Learning Festival and whether it has achieved the desired outcome.”
“CELLULAR PHONES AND PAGERS IN SCHOOLS 23. Mrs Lim Hwee Hua asked the Minister for Education if he will state his Ministry's view on the extent to which cellular phones, pagers and other communicating devices can be used by students within and outside of the classroom, but within the school premises. RAdm Teo Chee Hean: The Ministry of Education does not prohibit use of cellular phones, pagers and other communication devices in schools. Schools have their own rules on whether pagers and mobile phones are allowed to be brought to the schools1 and their usage within the school premises. Schools that allow these devices to be brought to school do not allow usage during lessons, whether it is within or outside the classroom, to ensure learning is not disrupted. Usage is limited to during recess time, and before and after school hours. 1 A random survey indicates that 11% of the primary schools, 17% secondary and 75% of junior colleges and centralised institutes allow these devices to be brought to school. 89%, 83% and 25% of the primary, secondary and junior colleges and centralised institutes respectively, do not allow it. MULTI-PURPOSE LIFTS FOR SCHOOLS 25. Dr Teo Ho Pin asked the Minister for Education (a) how many physically handicapped children are studying in our schools, and (b) whether his Ministry will consider installing multi-purpose lifts in all schools to make them handicapped friendly and, at the same time, to facilitate the vertical transportation of goods. RAdm Teo Chee Hean: Currently, there are 177 physically handicapped pupils in schools. They are receiving therapy and support services from a voluntary welfare organisation, TEACH-ME Services, AWWA. Of these, 122 are in primary schools and 55 in secondary schools.”
“The CPF Board provides a risk free return on members' CPF savings. There is a guaranteed minimum interest rate of 2.5% per annum for savings in the Ordinary and Medisave Accounts and 4% per annum in the Special and Retirement Accounts. This has worked to the advantage of CPF members, especially during periods as in the current low-interest environment where the minimum interest rate paid by the CPF Board is higher than the 12-month fixed deposit and savings rates of the four major local banks used to compute the CPF interest rate. CPF members who believe they can generate higher returns and are willing to take on the investment risks, can invest their CPF savings under the CPF investment Scheme. They can invest in unit trusts, insurance, fixed deposits, bonds and shares. From 1st January 2001, CPF members are also allowed to use their Special Account savings to invest in appropriate retirement-related financial instruments. For CPF members who do not want to invest their CPF savings but wish to earn a higher interest on their Ordinary Account savings, they may top up their Special Account with Ordinary Account savings to the prevailing Minimum Sum. The prevailing Minimum Sum is $65,000 currently and will be increased by $5,000 every July to reach $80,000 in year 2003. With the above measures, CPF members are given the choice to earn a risk free guaranteed return by leaving their savings with the CPF Board. Those who want a better return should do so under the CPF Investment Scheme. But as with any investment, CPF members will have to exercise careful judgement and assess their risk tolerance before investing their CPF savings. If they take a long-term view and exercise prudence in their investments, they should be able to enhance their old-age savings.”
“LIBERALISATION OF TELECOMMUNICATIONS INDUSTRY (Compensation to SingTel and StarHub) 11. Mr Goh Choon Kang asked the Minister for Communications and Information Technology if he will quantify the benefits to be derived from faster liberalisation of the telecommunications industry and the $1.94 billion paid out to SingTel and StarHub. 12. Mr J. B. Jeyaretnam asked the Minister for Communications and Information Technology how the Government justifies the payment to SingTel and StarHub for ending their licences prematurely.”
“Mr Speaker, Sir, the CPF Board has consulted HDB on the impact of the total CPF allocation rates on the affordability of HDB flats prior to the announcement of the changes (I refer to the changes for the Special Account and the Medisave Account contribution rates). Sir, the conclusion is that the changes to the Special Account and Medisave allocation will not have a significant impact on first time HDB buyers. The vast majority of the first time 4- and 5-room flat buyers will still be able to service their entire mortgage instalments from their Ordinary Account contributions. Some first time 3-room flat buyers may need to pay a small amount of their mortgage instalments in cash. This amounts to typically less than 10% of their monthly household income and is manageable for most households. Upgraders will also face minimal impact as they can use the proceeds from the sale of their earlier flat to offset the price of their new flat. Nevertheless, there are measures in place to help CPF members who have difficulty paying for their mortgages. The various housing assistance measures, which were introduced to help members affected by the cut in employers' CPF contribution in January 1999, are still in place and will remain so until the CPF cut is fully restored. Sir, in addition, the Government had announced that from 1st October 2000, all young couples buying a 4-room HDB flat can pay their 20% downpayment in two instalments. The Government has also made available an additional $26 million per year to help low-income families buy their first flat or upgrade to a bigger flat under the Special Housing Assistance Programme (SHAP), which the Minister of State for National Development mentioned earlier on in response to Question No. 8.”
“The Committee held the view that this approach would enable the unions to maintain their membership base yet avoid conflicts of interest or loss of management effectiveness and flexibility. To ensure that its recommendations do not adversely affect labour management relations and Singapore's economic competitiveness, the Committee further proposed that a Tripartite Working Group be set up to study the implementation issues and to reach out to employer groups to explain the recommendations. In the meantime, the Ministry should consider appropriate legislative changes to the Industrial Relations Act to enable some executives to be represented by rank-and-file unions. Mr Speaker, Sir, I am pleased to inform the House that the Government has accepted the recommendations of the Tripartite Committee, including setting up a Tripartite Working Group and studying amendments to the Industrial Relations Act. I would like to take this opportunity to thank members of the Tripartite Committee for their contributions. SENIOR CIVIL SERVANTS (Policy on sitting on boards of private companies and Government-linked companies) 4. Mr Lew Syn Pau asked the Deputy Prime Minister what is the Government's policy on senior civil servants sitting on the Boards of Directors of private companies and Government-linked companies; and whether there are conflicts of interests and, if so, how are these conflicts resolved.”
“This could result in an employer having to deal with two or more unions in the company if executives opted to form their own unions. The NTUC was of the view that a single union at a workplace is preferable to multiple unions. A single union could better promote teamwork and closer labour management cooperation. NTUC also pointed out that a single union representing rank-and-file workers and executives would enable unions to draw good leaders from a larger talent pool. Good leadership in our union movement is critical to ensure that trade unions are able to serve workers and help to enhance tripartite cooperation. The Committee also noted employers' concern that unionization of executives in rank-and-file unions could affect management effectiveness and flexibility. Employers had expressed concerns that there could be conflict of interest, which may undermine business competitiveness. Some MNCs were worried about the unionization of their executives in the light of the adversarial labour-management relations in their home countries. The Committee noted the concerns of both employers and unions. It concluded that in view of our harmonious labour management relations, it would be desirable to allow some executives to join rank-and-file unions. The Committee proposed that executives who do not have senior management responsibility and substantial managerial functions such as hiring, promotion, dismissal and disciplinary functions, be allowed to join rank-and-file unions. They could be represented by the rank-and-file unions on an individual basis in respect of retrenchment and dismissal but not for collective bargaining purposes.”
“Mr Speaker, Sir, in August last year, I informed the House that the Ministry of Manpower would set up a Tripartite Committee to examine the issue of allowing junior and middle level executives to join rank-and-file unions. This Committee was chaired by the Minister of State for Manpower with members from the National Trades Union Congress (NTUC), Singapore National Employers' Federation (SNEF), the American Business Council, the Japanese Chamber of Commerce and Industry, the German Business Group as well as representatives from my Ministry and the Ministry of Trade and Industry. The Committee held consultations with union and employer groups for feedback and views on the issue. It has completed its study and submitted its recommendations to the Government for consideration. The Committee pointed out that Singapore has enjoyed a high level of industrial harmony and that our trade unions have adopted a cooperative approach to strengthen labour management relations for the benefit of employers and workers. For example, the NTUC and its affiliates persuaded workers to take a cut in employers' CPF contributions during the Asian financial crisis. They have been proactive in skills upgrading with initiatives such as the Skills Redevelopment Programme (SRP) to help workers add value to their companies and remain employable. The Committee noted that under existing laws, executives could form their own unions to represent their interests and engage in collective bargaining with employers. It also noted that the educational and occupational profile of Singapore's workforce has changed significantly over the years. With an increasing proportion of the workforce being better educated, more employees are expected to join the executive ranks.”
“Mr Speaker, Sir, a National Institute of Occupational Safety and Health was one of the proposals of the Manpower21 Report. Currently, my Ministry's Occupational Safety and Health (Training and Promotion) Centre carries out training in occupational safety and health (OSH) as well as implements programmes to promote OSH awareness. It conducts a wide range of training courses for managers, professionals, supervisors and workers. It also organises safety campaigns, seminars and workshops to promote safety and health in factories. We also have well-established private sector safety consultants to help companies improve their safety performance. In the case of research and development, we should tap the results of work by institutions in developed countries which are more advanced in OSH R&D. If there is a need to carry out researches on our own occupational safety and health issues, we can do that in collaboration with our institutions of higher learning, perhaps with funding from National Science and Technology Board. In other words, the major features of a National Institute of Occupational Safety and Health are already being addressed by the existing industrial safety framework. Hence we do not see an urgent need to establish an Institute on Occupational Safety and Health at this juncture. However, we will review the need for such an institute sometime in future. COMMODITIES TRADING FIRMS (Regulation) 6. Mr Noris Ong Chin Guan asked the Minister for Trade and Industry if his Ministry has any plans to curb unregulated commodities trading firms that advertise in the newspapers for job applicants and subsequently apply strong arm tactics on the respondents to invest in commodities trading.”
“Sir, I believe that the Member is referring to the group of foreign domestic workers who either take off from their employer's household and moonlight on their own in other occupations or are deployed by the employer to work in some other occupations. Let me assure the Member that while this problem exists and that, from time to time, my Ministry's enforcement officers come across such cases and take action against them, both employers and employees, the number of cases is small. It is not a growing problem. We are continuing to educate employers of foreign domestic workers on their responsibility, not only on the welfare part about treating the foreign domestic workers well and caring for them, but also to remind employers that they should not deploy them to work outside the household, whether it is to help out the employer in the hawker stall or in the provision shop in the neighbourhood. Such duties are obviously not part of the domestic duties of the foreign domestic worker and employers should refrain from sending their foreign domestic workers to work in such occupations. If they do and if they are caught, they face fairly severe penalties. NATIONAL INSTITUTE ON OCCUPATIONAL SAFETY AND HEALTH (Establishment) 5. Mr Ahmad Mohd Magad asked the Minister for Manpower what is the current status of the proposed establishment of the National Institute on Occupational Safety and Health.”
“Mr Speaker, Sir, in 1997, the Singapore Police Force recorded 157 substantiated cases of foreign domestic worker abuse. In 1998, the number of substantiated abuse cases reported by foreign domestic workers dropped to 89 cases and in 1999, it fell further to 82 cases. Members will recall that in May 1998, the Penal Code was amended to enhance penalties by 1.5 times for offences committed against foreign domestic workers by the employer or members of the employer's household. This appeared to have helped to reduce the number of cases of foreign domestic worker abuse. There are more than 100,000 foreign domestic workers working in Singapore. The number of cases of abuse or ill treatment is only a small proportion of the total number of foreign domestic workers working here. The vast majority of foreign domestic workers in Singapore are generally well-treated and enjoy a happy and rewarding working relationship with their employers. This is evident from the fact that Singapore continues to attract an increasing number of foreign domestic workers and many of them have in fact decided to extend their work permits beyond the normal two-year term.”
“Mr Speaker, Sir, the service sector has been allowed to recruit foreign workers from the traditional sources, up to 30% of the total workforce. Non-Traditional Source (NTS) workers are not allowed in general with a few controlled exceptions. This is because we have to balance employers' need for more workers with the impact of foreign workers from low-wage countries on our workers' wages. In the manufacturing sector, where companies face greater foreign competition, we allow up to 50% foreign workers. For the construction sector, which has the greatest difficulty to recruit local workers, we have taken a more liberal approach that allows up to 5 foreign workers for 1 local worker. We believe that the allocation limits are sound and provide a fair balance between employers' demands, our ability to compete and the concerns of Singaporean workers. Hence, we will not be generally relaxing our work permit policy on unskilled foreign workers for the service sector. But we will continue to welcome and facilitate skilled foreigners coming to work in Singapore under the various employment passes. LEGISLATION ON KILLER LITTER (Review) 4. Mr R. Sinnakaruppan asked the Minister for National Development whether it is timely to review the killer litter-related legislation in the Housing and Development Board estates, and whether it is the Town Councils' sole responsibility to educate residents in this regard and to enforce the legislation.”
“Sir, there is already an existing high-level committee led by the Permanent Secretary, Prime Minister's Office, who is looking into new ways and means of encouraging procreation. So we shall wait for the committee to consider various suggestions. UNSKILLED WORKERS IN SERVICE AND RETAIL SECTORS (Shortage) 3. Mr Tay Beng Chuan asked the Minister for Manpower whether his Ministry will look into the current shortage of unskilled workers in the service and retail sectors and review or relax the policies governing the issue of work permit for businesses which depend on foreign workers to survive.”
“Sir, while it is true that 70% of employees do not pay income tax, it is also equally important that for those who want to have more children, a bigger family, must be in a position to support and look after these children. The encouragement to have a bigger family is to have more than two, if you can afford to look after them. Therefore, our tax measure is closely related to this approach of encouraging those who are in a better position to provide the family environment and support for more children to do so, rather than to pass this cost of having bigger families to the employers and, therefore, loading them with a burden and, in a way, even affecting their competitiveness and business survival.”
“Sir, when an employer promotes an employee, it must be on the basis of the contribution that the employee makes to the organisation. I think it would be difficult for us to dictate that part-time female employees should be promoted on the same basis as a full-time employee. This has got to be left in the hands of the employer who would judge who within the organisation can best make a difference to the organisation's success and, in that case, promote the appropriate person.”
“Sir, it is the usual response from the Non-Constituency Member to set up a Board for this and to set up a Board for that. Let me suggest to him that if he has instances where he believes that a woman has been discriminated on the basis of gender or marital status, let us know. We have a comprehensive system to assist workers who have been so discriminated.”
“There is a lot of flexibility, in terms of childcare leave. Employers, particularly in the unionised sector, do consider granting additional childcare leave, especially in the case when the employee's child is sick, or for whatever reason. In terms of maternity leave, the law provides for paid maternity leave for the first two children. Or in the case of the third child, instead of imposing a requirement on the employer to provide paid maternity leave, the Government has provided a whole slew of tax benefits for parents of the third child. The tax benefits more than offset the loss of the paid maternity leave. So this is a preferable arrangement rather than to mandate that employers must also grant paid maternity leave to all employees in the case of the third pregnancy. Because by doing so, we will actually be shifting the cost of paid maternity leave to the employers. As it stands today, encouraging families to have more children is a very urgent national objective. Therefore, the Government has taken the approach that we should do so by giving tax incentives rather than to pass the burden to the employers. So if we want to encourage parents to have more children, we should not, in doing so, impose unnecessary costs on the employers affecting their business competitiveness. Where it is possible, for instance, promoting and encouraging a bigger family, the additional costs can be borne by the Government by way of a special tax incentive. And I understand that the Ministry of Finance and IRAS have a whole slew of very attractive tax incentives for parents who want to have more than two children.”