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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Every one of 2,412 lines we hold for Lee Boon Yang, in date order, each linked to its source. Free to read, in full, without an account. Page 22 of 49.
“Mdm Claire Chiang See Ngoh asked the Minister for Community Development, for the next difficult 12 months, if his Ministry will (i) increase childcare and Before-and-After-School-Care subsidies for families who are faced with reduced income; and (ii) provide temporary financial support to vulnerable groups such as single parents who cannot work full-time, yet cannot earn sufficient money to upkeep their families and to families with main breadwinner imprisoned. The Minister for Community Development (Mr Abdullah Tarmugi): Mr Speaker, Sir, currently a subsidy of $150 per month is given to working mothers who have children in child-care centres. Normally they would lose their eligibility for these subsidies when they are no more working. But the Member may be pleased to know that our current practice now is to extend the child-care subsidy for a three-month grace period if the mother is looking for a job. In view of the difficulties in the job market now, my Ministry will review the 3-month extension period with a view to lengthening it. There are also other schemes to help families with young children needing child-care. For example, there is the Centre-based Financial Assistance for Child Care (CFAC) Scheme for low-income families administered by the National Council of Social Service. This scheme provides financial assistance of up to $200 per month depending on family income. This is in addition to the child-care subsidy provided by Government. Even if the mother is currently not employed, she is still eligible for the CFAC assistance as long as she is seeking employment. As for Before-and-after-school care centres, or BASCs, they are operated by voluntary welfare organisations (VWOs) which generally keep their fees at an affordable rate.”
“With regard to shop-cum-dwelling units (that means, shops on the ground floor, and another unit on the upper floor), HDB does not allow dwelling units to be used for other purposes as this is generally not catered for in the design of the units, and the surrounding infrastructure and facilities. It may also cause increased disamenity to the residents in the area. PREMISES OCCUPIED BY VOLUNTARY ORGANISATIONS (Waiving of 1999 rentals) 16. Mdm Claire Chiang See Ngoh asked the Minister for National Development if his Ministry will seriously consider waiving the 1999 rentals of premises under its charge which are occupied by voluntary organisations to ease their operation burdens so that staff and volunteers can focus on services to the needs of the vulnerable instead of spending their energy on raising funds to keep the operation going. Mr Koo Tsai Kee (for the Minister for National Development): Mr Speaker, Sir, HDB lets out void deck facilities at concessionary rentals to voluntary welfare organisations. The current rentals for these organisations are already low and below cost recovery. Instead of giving rental waiver for such facilities, the Government's policy is to provide explicit operating subsidies to voluntary welfare organisations to help ease their operation burden. The Government is already subsidising this at 50% of operating costs. Mr Speaker, Sir, the problem is not rent but salaries of professional workers in the VWOs. CHILDCARE AND BEFORE-AND-AFTER-SCHOOL-CARE SUBSIDIES (Increase) 17.”
“Mr Speaker, Sir, we will try our best to help those who want to look for part-time jobs. But, as I have said earlier on, during this economic downturn, with rising unemployment, very few employers are over-anxious about recruiting part-time workers to meet their requirements. In fact, they have a wide choice of full-time job seekers. So during this period, our focus will be, in fact, on the retrenched workers and those who want to seek full-time employment. As and when the economy recovers and the labour market tightens up again, I think employers will have to change their mindset and be more prepared to engage part-timers to supplement the full-time workforce. HDB'S COMMERCIAL AND INDUSTRIAL PREMISES (Review of rental policies) 15. Mr Tay Beng Chuan asked the Minister for National Development if he will consider (i) reviewing the Housing and Development Board's rental policies for commercial and industrial premises to allow tenants greater flexibility to sub-divide and sublet their premises for compatible multi-purpose usage and cost saving purposes; and (ii) relaxing the rule on HDB shop-cum-dwelling units to allow owners and tenants of these units to use the dwelling space for compatible commercial purposes. Mr Koo Tsai Kee (for the Minister for National Development): Mr Speaker, Sir, HDB does provide flexibility to its tenants in the subletting of their commercial and industrial premises. At present, HDB allows its tenants to sublet up to 50% of their premises. The present rule is liberal enough and should be of help to tenants who have excess space.”
“Mr Speaker, Sir, I do not have the specific details for all the 900 job seekers. But, in general, these were people who were looking for part-time jobs at the lower level. They were not highly-skilled workers. They want part-time jobs perhaps in the retail sector, restaurant, business or other commerce areas.”
“Mr Speaker, Sir, in the June 1998 Labour Force Survey, 49,000 economically inactive persons indicated that they intended to seek work within the next two years. About one in two persons in this group indicated that they preferred part-time work for one reason or another. Sir, my Ministry's Employment Service Department (ESD) provides employment assistance to Singaporeans and Permanent Residents looking for jobs, whether it is for full-time jobs or part-time jobs. As at 31st October 1998, there were some 900 job seekers registered with the ESD, who were looking for part-time or flexible work. However, there were only 64 part-time positions posted with the Department as at that date. About 40 of these vacancies have since been taken up. Part-time employment is not prevalent in Singapore. The June 1998 Labour Force Survey reveals that only 3.1% of employed persons are working part-time. While many economically inactive persons such as housewives favour part-time work, employers are still not keen to recruit part-timers. The current economic downturn has resulted in loosening the labour market. This has made it more difficult to promote part-time and flexible work arrangements. Once the economy recovers and demand for labour picks up, employers will have to review their position and consider part-time workers as a valuable supplementary workforce to meet growing demand.”
“The NTUC Education and Training Fund supports the training of union members who may not be able to benefit from training support by their employers but are prepared to invest in their own skills upgrading. The target set by the NTUC was to train 10,000 workers in the first year. As at end-October 1998, NTUC has already received 2,600 applications. This is an indication that there is strong interest in retraining among the union members. Sir, in conclusion, there is a range of retraining programmes in place aimed at various segments of the workforce, including those who do not have any formal qualifications. Despite the economic downturn and reduction in companies' training budgets, the enrolment figures indicate that these programmes have continued to maintain a healthy level of participation. My Ministry will continue to encourage and support participation in these programmes as part of the initiatives to enhance the employability of our workers. DATABASE OF PART-TIME AND HOME-BASED JOBS 14. Mdm Claire Chiang See Ngoh asked the Minister for Manpower (a) if a database of part-time jobs as well as home-based jobs is available for the benefit of those workers not seeking full-time jobs because of family commitments; (b) how part-time job seekers can have access to this information; and (c) how many persons have actually used the service and been successfully matched with the jobs that suit their circumstances.”
“Despite this, the number of workers being scheduled for training under the SRP has been growing at an encouraging pace. This is an indication that the SRP is making good progress, and has contributed to preserving jobs and making workers more employable during these difficult times. An important feature of the SRP is that whenever possible, training plans are worked out with the participating companies for their workers. This is critical to the success of the SRP as many workers lack the basic secondary education, or even basic literacy and numeracy skills, to qualify for training leading to skills certification. For this group of workers, SRP support is extended for retraining programmes such as the Basic Education for Skills Training (BEST) and Worker Improvement through Secondary Education (WISE). Training under these programmes will continue to help workers to gain certifiable skills. The BEST and WISE programmes are important segments of our retraining effort. BEST was introduced in 1983 to equip workers without any formal qualifications to PSLE level in English and Mathematics. To-date, the programme has reached out to 216,000 workers. The 1998 enrolment figure is 22,000 which is about the same as the 1997 enrolment. WISE was launched in 1987 for workers to upgrade English and Mathematics to GCE `N' level. Since its launch, the programme has reached out to 130,000 workers. The 1998 enrolment figure is 16,000 which is over 1,000 more than in 1997. Sir, I would like to highlight the progress of worker training supported by the NTUC Education and Training Fund (N-ETF), which was launched on 1st October this year. The Government is providing a grant of $9 million to the NTUC to match funds of $3 million being raised by the labour movement.”
“Mr Speaker, Sir, we have a wide range of retraining programmes to help different groups of workers to upgrade their knowledge and skill. The Skills Redevelopment Programme (SRP) is one of the key programmes to provide unskilled and low skilled workers with training leading to national skill certification. The focus of the SRP is on skill upgrading to enhance employability of the workers. SRP support is extended to companies that send their workers for the modular skill training programme by the ITE, which leads to the Certificate of Competency, NTC3 or NTC2 certification or for certificate programmes conducted by the polytechnics. Sir, as at end October, the total number of workers committed for training under the SRP stood at 10,500. This is more than half of the target of 20,000 workers that the NTUC aims to achieve by the next Labour Day. Of this number, over 2,800 workers have completed their training and another 3,300 workers are currently undergoing training. Participation of workers in the SRP has been boosted as a result of the sector-driven approach that has been recently adopted by the NTUC. In the hospitality sector, 59 hotels have signed up to retrain a total of 2,000 workers. These workers would have been vulnerable to retrenchment, but the SRP provided an opportunity for hotels to upgrade their skills at affordable cost during this lull period. The SRP for the marine sector was launched just this month, with 13 companies committing 500 workers to be trained. The SRP for a third sector, telecommunications sector, will be launched next month, and another 500 workers are expected to be retrained. The NTUC plans to launch the SRP in at least another 12 more sectors. As a result of the economic downturn, many companies have cut back on their training budgets.”
“As at end August 1998, 182,726 active CPF members have used 90% or more of their monthly CPF contribution to the Ordinary Account to service their housing loans. Of these 182,726 members: (i) About 31% are below age 35; 44% are between age 35 and 45; 20% are between age 45 and 55; and 5% are aged 55 and above. (ii) About 15% are earning less than $1,000 a month; 35% earn between $1,000 and $2,000; 19% earn between $2,000 and $3,000; 9% earn between $3,000 and $4,000; 6% earn between $4,000 and $5,000; 4% earn between $5,000 and $6,000; and 12% earn $6,000 or more. (iii) 89,301 (or 49%) members have $10,000 or more net balances in their Ordinary Account. (iv) The average Special Account balance per member is about $11,000 and the average Medisave balance is about $13,600. NEW FLIGHT DESTINATIONS IN INDIA 9. Mr Shriniwas Rai asked the Minister for Communications if the Government will request the Indian Government to allow Singapore Airlines or SilkAir to fly to new destinations in India, such as Bhuwaneshwar in Orrissa and Varanasi in Uttar Pradesh as both cities are well known tourist destinations.”
“Proper training would help to enhance the image and professionalism of social workers, and give a boost to our people to take such jobs. Similar to manufacturing and services sectors, government funding could be provided for the drawing up of curriculum and certification programmes, as well as training under such courses. CENTRAL PROVIDENT FUND 8. Mr Low Thia Khiang asked the Minister for Manpower, as of June 1998 (a) what is the number of Central Provident Fund (CPF) members who use 90% or more of their contribution to the Ordinary Account to service their housing loans and what is the income and age profile of these members; (b) how many members have $10,000 or more savings in the CPF Ordinary Account and what is the income and age profile of these members; and (c) what is the amount of savings in these members' Medisave and Special Accounts.”
“Despite the economic downturn, social services remain one of few sectors still in need of workers. Health and social work, community, social and personal services contribute to around 7% of total employment. In the second quarter, this group saw an increase of 800 workers against an overall reduction of 5,800 jobs economy wide. So far, through the Skills Redevelopment Programme, funding for training has been provided mainly in the manufacturing sector. The Ministry is also working closely with NTUC, SNEF and other agencies to identify training opportunities in other services sectors such as hotels and restaurants and IT. Similarly, funding would be extended to the social services sector where there is demand for workers with higher skills. To date, we have, however, not seen a significant trend of retrenched workers opting to go into social services. There remain vacancies in manufacturing sector and other services sectors such as transport and communications, education and IT. The priority would be to train workers to fill these vacancies. Furthermore, social work has not been popular with our workers due to the generally lower pay and uncertain career prospects. However, if the downturn worsens, social services would provide a good avenue to absorb surplus workers. More unemployed Singaporeans who lack skills for other jobs may have to consider social services jobs. The Ministry will evaluate the possibility of encouraging workers to take up jobs in social services. We have started a process of identifying training providers in such areas, for example, in professional cleaning services. Courses in counselling services, community development and awareness, etc, are other possibilities.”
“However, we should be mindful that such analyses would be more meaningful when the economic situation has stabilised. FUNDS FOR RETRAINING OF WORKERS 7. Mdm Claire Chiang See Ngoh asked the Minister for Manpower, in view of the growing demand for social services during the economic downturn, whether the funds set aside for the retraining and upgrading of workers will be used (i) for individuals who are training for jobs in the social services; and (ii) for those who are now working in or retrenched from the manufacturing sector and who wish to switch to the social services sector.”
“To date, none of these 4,100 workers have been retrenched. They are either still undergoing their training or have completed training and continue to be gainfully employed by their current employers. A further 400 workers were sent for training by companies prior to being retrenched. These were mainly companies that were winding down operations and had no choice but to let their staff go. They agreed to send these workers for training under the SRP in order to enhance their chances of getting another job. All the workers have since been successfully placed with new employers. The NTUC and the Singapore Hotel Association have just launched the sector-driven SRP for the hotel industry. To date, 55 hotels have signed up to retrain a total of 2,000 workers. Because of the economic downturn, these workers would have been vulnerable to retrenchment. Instead, the SRP has provided an opportunity for the hotel industry to upgrade its manpower at affordable cost during a lull period. The Ministry will continue to monitor the success of SRP training in enabling workers to retain their jobs. As the SRP is employer-based, the focus has been on persuading companies to send their existing workers for training. However, as the numbers of unemployed have risen, we have also embarked on an initiative to match unemployed workers with employers who are willing to take them on and support their training under the SRP. The Ministry will monitor the number of such unemployed workers who are successfully placed as a result of this initiative. In the longer term, the Ministry intends to study the overall effectiveness of the SRP in terms of the employability and increase in the earnings capacity of trainees.”
“Government support for worker retraining is primarily through a $50 million grant to the National Trades Union Congress (NTUC) for the Skills Redevelopment Programme (SRP). This grant is matched by another $50 million from the Skills Development Fund. Another $20 million was set aside by the Government as an off-budget measure in July this year to expand training facilities and other infrastructure in support of the SRP. The SRP was initiated to address the issue of long-term employability of lower-skilled workers, especially the older ones. For this reason, it is a requirement of training under the SRP that it should lead to skill certification. At present, this means certification conferred by the Institute of Technical Education and the Polytechnics. Courses leading to skill certification by these institutions have been formulated with the inputs from industry. Workers who are skills certified as a result of training under the SRP are in better position to benefit from the recognition in the market for such skills. For example, the gross median monthly salary for an NTC-2 graduate is $1,250, while for an ITC graduate it is $1,500. As 70% of SRP trainees have an educational level below `N' levels, the ability to obtain such skill certification is in itself an achievement. In the present difficult economic climate, when workers face retrenchment, the Ministry is more concerned with job preservation as an indicator of effectiveness. In this respect, the SRP has so far given encouraging results. As at end-September, over 2,800 workers have been sent by their companies for training under the SRP. Another 1,300 have been sent for training by companies, which had adopted a shorter workweek; in other words, they were sent for training as an alternative to being retrenched.”
“Let me assure him that this is not a case of discrimination. This is a case of doing what is necessary. There is no need for us to overdo it. Question put, and agreed to. Bill accordingly read a Second time and committed to a Committee of the whole House. The House immediately resolved itself into a Committee on the Bill. - [Dr Lee Boon Yang]. Bill considered in Committee; reported without amendment, read a Third time and passed. ADJOURNMENT Resolved, "That Parliament do now adjourn to a date to be fixed." - [Mr Wong Kan Seng]. Adjourned accordingly at Twenty Minutes to Seven o'clock pm to a date to be fixed. WRITTEN ANSWERS TO QUESTIONS FOR ORAL ANSWER NOT ANSWERED BY 1.30 PM USE OF MALAYSIAN AIRSPACE 15. Dr Ong Chit Chung asked the Deputy Prime Minister and Minister for Defence how the Malaysian Government's decision to terminate various arrangements governing the use of Malaysian airspace by the Republic of Singapore Air Force (RSAF) will affect RSAF training and operations and Search and Rescue, and what measures were taken up by the RSAF to deal with this development. 16. Mr Cyrille Tan asked the Deputy Prime Minister and Minister for Defence, with the restrictions imposed on the usage of Malaysian airspace, what measures are being considered by the SAF to (i) work around the restrictions; and (ii) improve on their search-and-rescue operations.”
“But he asked why is there this unequal treatment between employment pass holders and work permit holders. The reason, as the Member has mentioned, is that today the problems of abuses such as forgery of work permit card or work passes or working illegally exist mainly in the unskilled and semi-skilled level, in other words, work permit holder level. There are very few employment pass holders, who are in the professional, management and executive level, who end up in this kind of situation. Forgeries or infringements of the employment pass regulation in the employment pass sector are very few, because these are the better qualified and higher skilled people. We do not have so many cases of abuses or illegal workers or professionals coming into Singapore to work illegally. The main problem is with the two-year work permit holders who are mostly unskilled workers, and the bulk of the problem is actually in the construction sector. We have lots of foreign workers in the marine, manufacturing and service sectors. We have very few problems with these people. Most of the problems that we are encountering such as illegal workers, wrongful deployment and abandoning workers on the street, all come from the construction sector. Following this amendment, we will concentrate all our resources to ensure that fingerprinting of the construction workers takes priority. We will try to do it within one year because we must tackle this most serious problem first. If, at some point in the future, we find out that employment pass holders are up to no good and are also committing all kinds of breaches of the employment pass regulations, we can also bring them in. We only do things like fingerprinting if it is necessary. If there is no need to do it, why do we want to go through the trouble?”
“We have started in August this year to require all recruitments of non-traditional source construction workers to have at least 20% of them tested in basic skills in their home country before we grant approval in Singapore. In other words, if you want to bring in 100 foreign workers from Bangladesh, for instance, at least 20 of them must have been skill tested in Bangladesh itself first and they have been found to have a certain level of basic construction skill before we grant approval in principle for you to bring in 100 of these workers. This 20% figure will gradually be adjusted upwards to 100%. Our initial target was to do this over a period of three years, but we are looking at whether we can shorten this period and to speed up the process to force the contractors to recruit more skilled workers. There is likelihood that we can shorten the timeframe. The same can be said for many other sectors where, under the present circumstances, employers in fact have an opportunity to recruit more skilled workers because in the regional countries affected by the Asian crisis, there is massive unemployment. There is opportunity for them now to go out to look for the more skilled workers to come in to supplement the Singapore workforce in areas where we are lacking. We will continue to refine and improve our foreign worker policy to ensure that employers who bring in foreign workers will need them and they have suitable skills qualification. This will take some time because we have a large pool of quite lowly skilled foreign workers. This has got to be turned over gradually and, in due course, we can replace them with more skilled foreign workers. Sir, may I now turn to Mr Zulkifli who also supported the idea in the Bill to fingerprint the foreign workers.”
“Mr Deputy Speaker, Sir, I first want to thank both Members for speaking in support of the amendment Bill although they have some reservations. First, let me take the point raised by Mr Ahmad Magad. His main point is that foreign workers who are allowed into Singapore should be the ones who can do the job that is expected of them so that they can make a contribution to the company and the economy. Let me assure Mr Magad that this is the case and that foreign workers come to Singapore, either the skilled foreign workers who hold employment pass, or the semi-skilled workers who hold work permits, or even the unskilled foreign workers who hold a two-year work permit, because the employers require their services and they can help the company to enhance their competitive edge. It must be so because employers will not bring in these foreign workers just to stack up the manpower or the headcount in the company. They need these foreign workers because, in many instances, Singaporeans are not prepared to do some of the jobs which are available. As a result, the employers have no option but to turn to foreign workers. Let me give Members the example in the construction sector. Today, we have a large number of foreign construction workers because many Singaporeans are not prepared to work in the construction sector, although there are many jobs going begging within the construction sector. Employers or contractors recruit many foreign workers. In the construction sector, my Ministry is introducing new regulations to ensure that the foreign workers who come in have some basic construction skills.”
“These regulations will also empower law enforcement agencies to demand finger impressions from persons holding the work permit cards for purpose of verification. Sir, I beg to move. Question proposed.”
“However, if the foreign worker should lose the work permit card or damage it or deface it in some way and need a replacement card, a replacement fee of $20 will be charged. Foreign workers are currently given up to 14 days to report the loss of a work permit card to the Controller of Work Permits. With the introduction of the new identification card for foreign workers, we intend to shorten this reporting period from 14 days to 7 days. This will narrow the window period during which a foreign worker cannot be conclusively identified because he has not got the card and there is difficulty identifying him. Sir, I will now go through the key clauses of this Bill. Clause 2 of the Bill amends section 3 of the Employment of Foreign Workers Act to allow the Minister to appoint Deputy Controllers of Work Permits and Assistant Controllers of Work Permits to assist the Controller to carry out the functions of the Controller under the Act. This is necessary to expedite the management of a very large number of foreign workers present in Singapore at any one time. Today, we have more than 450,000 foreign workers in Singapore. So we need to have more officers who are empowered to deal with all the management matters concerning foreign workers in Singapore. Clause 3 amends section 14 to reduce the time within which a foreign worker must report the loss, destruction or defacement of a work permit from 14 days to 7 days. Finally, Sir, clause 4 of the Bill amends section 29 of the Act to extend the powers of the Minister to make Regulations to provide for the taking and recording of finger impressions of persons who have applied for or who have been issued with a work permit and for the dissemination of such records to the Police and other law enforcement agencies.”
“It is also our intention to make it mandatory for all foreign workers to carry the new identification card with them at all times, so that if they are stopped for checking at the worksite, they would be able to produce the original work permit card rather than a photocopy of the work permit card. The new identification card will be introduced from early next year, 1999. A phased approach will be adopted to capture the fingerprints or finger impressions of all foreign workers. For a start, all new foreign workers will be required to provide their finger impressions before they are issued with work permits to work in Singapore. Existing foreign workers who are already here, who are holding the old work permit cards, will be asked to provide their finger impressions when they come up for renewal. However, we will pay particular attention to the recording of the finger impressions of foreign construction workers. This is because cases of illegal employment and work permit forgeries are most rampant in the construction sector. The construction sector is also the largest employer of foreign workers, particularly those from the non-traditional sources. Existing foreign construction workers will be notified to have their finger impressions taken within one year of implementation of the new identification system, and it will take us about two years to complete the exercise. But we will focus on the foreign construction workers first, so that we get them all fingerprinted within the first year. The new identification card for foreign workers will be issued free-of-charge to the workers, in the first instance. Employers will be advised on the procedures to obtain these new cards in due course.”
“The increasing number of illegal workers and rising incidences of forged work permit cards has made it more difficult for enforcement officers to identify the foreign workers. The current system for identifying foreign workers has two shortcomings. Firstly, existing security features on the work permit cards themselves are outdated and make the cards easier to forge. Secondly, the finger impressions or fingerprints of the work permit holders are not captured on the card, making it difficult for enforcement officers to conclusively identify the person holding the card. Clearly, we need to make the present identification system more effective. Sir, to deal with this problem, the Minister for Home Affairs had already amended the Immigration Act on 4th September this year to provide for the taking of fingerprints or finger impressions from foreign workers in Singapore. The amendment before the House today is to enable my Ministry, the Ministry of Manpower, to work together with the Ministry of Home Affairs to jointly implement a new and more secure identification card for foreign workers. This card will combine the current work permit card, the Immigration Disembarkation and Embarkation card together with the Visit pass into one single card which will also carry the fingerprint record of the foreign worker. The new card will incorporate more security features to reduce the likelihood of forgeries. These security features will also be more up-to-date and more effective. The inclusion of fingerprint records will allow our enforcement agencies to conclusively identify the holder of the work permit as being the person who is authorised to enter Singapore to work.”
“Mr Deputy Speaker, Sir, I beg to move, "That the Bill be now read a Second time." The Employment of Foreign Workers (Amendment) Bill before the House today seeks to amend the Employment of Foreign Workers Act to provide for the taking and recording of finger impressions of foreign workers working in Singapore. Since the onset of the current economic downturn, there has been increasing incidence of illegal employment. For the first eight months of this year, more than 2,000 foreigners were caught working illegally without valid work permits. This is more than twice the number of such cases for the corresponding period last year. Furthermore, an increasing number of illegal workers were found to be immigration offenders. In fact, for the first eight months of this year, 50% of illegal workers were also immigration offenders compared to only 16% for the corresponding period last year. The Work Permit Department has also detected an increasing number of cases of forgeries of the work permit card itself. Since April 1998, the number of forged work permit cards detected by the Department has averaged about 40 to 50 a month. This is significantly higher than in the past when very few cases of forged work permit cards were detected. Most of the forged work permit cards came from the construction sector. They were work permit cards for foreign construction workers. The situation is not helped by the fact that many foreign workers do not carry their original work permit cards with them. Instead, they carry with them photocopies of the card as the originals are very often kept by their employers. These photocopies of the work permit cards are very often of poor quality and can also easily be forged.”
“Notwithstanding this and in the event that the MTUC does file a complaint with the ILO, the Singapore Government will respond accordingly. AIR TRAFFIC SERVICE ARRANGEMENT OVER SOUTHERN PENINSULAR MALAYSIA 9. Mr Cyrille Tan asked the Minister for Communications what is his Ministry's response to the Malaysian Government's proposal of reclaiming control of the air space surrounding the southern part of the Malay Peninsula.”
“Recently there was a newspaper report concerning a comment by the President of the Malaysian Trade Union Congress (MTUC) that he would be taking up the CPF withdrawal issue with the International Labour Organisation (ILO). He was also reported to have accused the Singapore Government of discriminating against West Malaysians in the CPF withdrawal rules. His accusation is completely baseless. As I have explained in this House, West Malaysian CPF members are distinguished from other foreign CPF members because of the historical links between Peninsular Malaysia and Singapore. West Malaysians in fact are given preferential treatment over Singapore members. They can withdraw their full CPF savings from age 50, without having to set aside the minimum sum, provided that they have not worked in Singapore for at least 2 years prior to the withdrawal request. Singaporeans can only do so at the age of 55, after setting aside the prevailing minimum sum. All foreigners working in Singapore, including West Malaysians, were well aware of these rules upon assuming employment in Singapore since 1971. They are therefore bound by the withdrawal rules that they had accepted when they first came to work in Singapore. Changes to the CPF withdrawal conditions for West Malaysians are being discussed between PM Goh Chok Tong and PM Dr Mahathir Mohamad in the context of wider co-operation between Singapore and Malaysia. Once an agreement is reached, this issue can be resolved conclusively. In our view, there is no basis for the MTUC to file any complaint with the ILO. As far as we are aware, there is no constitutional procedure under the ILO for a trade union of one country to file a complaint against the Government of another country on a bilateral issue.”
“The critical issue for executives and professionals is to continuously update and enhance their existing stock of skills in order to keep up with new developments and demands. My Ministry is studying ways to widen the opportunities to do so. For instance, in some countries universities and polytechnics have a system that allows their graduates to return every few years in order to update their knowledge in their chosen field. MOM and MOE will study the feasibility of providing more opportunities for such refresher courses or updating of knowledge for our skilled workforce. CHANGI INTERNATIONAL AIRPORT 27. Dr Toh See Kiat asked the Minister for Communications (a) whether there were any problems when Changi International Airport first opened; and (b) what numbers of luggage, if any, were lost on the first day of operation at the Airport. Mr Mah Bow Tan: Changi Airport commenced operations on 1st July 1981. Airport operation was smooth except for a problem with the Flight Information Display System (FIDS). A manual back-up arrangement was activated, airport staff were deployed to assist passengers and overall airport operation was not affected. Our records show that Changi Airport served 19,000 passengers and handled 29,000 pieces of baggage on its first day of operation. There was no problem with lost baggage. We received no complaints from airlines or passengers. Neither were there any media reports about lost baggage, although the opening of Changi Airport attracted a lot of media attention. TRANSACTIONS OF HDB FLATS 29. Mr Yeo Guat Kwang asked the Minister for National Development how many Housing and Development Board flats, both new and resale, were transacted during the period 1993 to 1997.”
“The Skills Redevelopment Programme (SRP) was launched to address the issue of long-term employability of less-educated workers. Workers with less than secondary education number almost 600,000 or 40% of the present Singaporean workforce. They are particularly vulnerable because they lack adequate skills and, as a group, face the most difficulty in coping with the economic restructuring. The SRP focuses on equipping them with basic, nationally recognised and portable skills so that they can move on to higher-skilled jobs. The Government is aware that in the present economic climate, executives and professionals are also concerned about their employment prospects. A number have lost their jobs and may be finding it difficult to secure alternative employment, at least at a salary or seniority equivalent to that of their previous job. However, the Government is of the view that a structured, broad-based retraining scheme similar to the SRP for executives and professionals is not necessary. The circumstances for executives and professionals are rather different from those of the less-educated workers. Unlike the less-educated workers, executives and professionals do not, as a group, lack skills. They are also expected to take greater responsibility for their own skills upgrading and career development. In this period of economic downturn, executives and professionals should be prepared to adjust their expectations. They should not be too choosy about jobs. If need be, they should be willing to accept lower salaries and more demanding duties. If they need assistance in finding jobs, they can approach the Employment Service Department of my Ministry, which will do its best to match them with appropriate vacancies.”
“BG Lee Hsien Loong: The Finance Companies Act was revised in December 1994 to raise the minimum capital requirement for finance companies from $0.5 million to $50 million. The aim was to enable finance companies to have the resources to compete more effectively and increase public confidence in them. The finance companies have been given up to year 2003 to comply with the $50 million minimum capital requirement. Since the raising of the minimum capital requirement, 3 finance companies with small capital funds have ceased to operate. Of the 18 finance companies currently in operation, five have capital funds of less than $50 million. If they fail to increase their capital funds by 2003, they would have to merge with larger financial institutions or cease operations. MAS has, through frequent dialogue, encouraged the smaller independent finance companies to merge to meet competition and upgrade their operations. However, this is a commercial decision left to the finance companies. They will have to judge how best to meet the pressures of the marketplace, particularly as we gradually liberalise the domestic financial system to allow for greater competition. POINTS OF AGREEMENT 18 Mr Shriniwas Rai asked the Minister for Foreign Affairs what steps will the Government take to implement the provision of the Points of Agreement signed by Malaysia and Singapore in view of the former's stand.”
“Employers are not allowed to repatriate their foreign workers who have outstanding salary claims. When a foreign worker files a wage claim with the Labour Relations Department, his employer is cautioned not to repatriate him before an amicable settlement is reached. If the employer repatriates the worker without settling the claim, he could be disqualified from applying for new work permits. The Foreign Workers' Unit of the Ministry handles employment claims and complaints lodged by foreign workers. The service is provided free of charge. Complainants do not need the service of lawyers to pursue their claims. To increase awareness of the protection accorded by the Employment Act and procedure to file employment claims, leaflets in various foreign languages have been produced and distributed to foreign workers. Since January 1998, the Unit has helped some 3,700 foreign workers who had lodged employment-related claims against their employers. Where an amicable settlement cannot be reached at the conciliation meetings, workers' claims which fall within the ambit of the Employment Act will be adjudicated by the Commissioner for Labour at the Labour Court. If the worker is unable to file his claims in person with the Ministry against his employer, he could lodge a written claim with us from anywhere, including from his home country. The Ministry has been able to help them recover their unpaid wages. In 1998, the Ministry's Labour Relations Department helped 35 such workers. MERGER OF FINANCE COMPANIES 17. Mr Shriniwas Rai asked the Deputy Prime Minister what steps the Government intends to take to encourage finance companies to merge so that these companies can actively participate in the growth of the financial sector in Singapore.”
“Mr Speaker, Sir, there is a Question for Written Answer on this subject. Nevertheless, if they do bring it up to the International Labour Organisation, we will respond accordingly, because we believe that there is really no basis for the ILO to adjudicate in such a bilateral issue. This is not within the charter of the ILO. 1.30 pm”
“While my Ministry did not receive such direct feedback, I understand that there had been calls made to the NTUC by West Malaysian workers who have expressed the sentiment that they prefer very much to leave their savings with the CPF than for it to be repatriated back.”
“All workers in Singapore, including those from West Malaysia, were well aware of these rules upon assuming employment in Singapore. They are therefore bound by the withdrawal rules that they had accepted when they first came to work in Singapore. From 1st August 1995, all foreigners, including West Malaysians, were not required to contribute to CPF. However, West Malaysians who have savings accumulated before this date must continue to be subject to the prevailing withdrawal rules. In January, Prime Minister Goh Chok Tong and Prime Minister Dr Mahathir Mohamad discussed a framework for wider cooperation between Singapore and Malaysia, including changes in CPF withdrawal criteria for West Malaysians. Although they have held further discussions since then, they have not yet reached an agreement on the framework for wider cooperation. Once an agreement is reached, this issue will be resolved. Recently, the Malaysian Minister of Human Resources wrote to me to enquire on this matter. I have replied to the Malaysian Minister to explain that the matter should be left to the two Prime Ministers when they resume their discussions on bilateral cooperation.”
“Mr Speaker, Sir, several Malaysian leaders have made statements, questioning why Singapore chose to treat East and West Malaysians differently with regard to CPF withdrawal conditions. There are reasons for the distinction between East and West Malaysians. West Malaysian CPF members are distinguished from other foreign CPF members because of the historical links between Peninsular Malaysia and Singapore. Geographic proximity enabled many West Malaysian workers to shuttle frequently between Peninsular Malaysia and Singapore. West Malaysians often returned to Singapore to work after a period of absence from Singapore. This was unlike other foreigners, including those from East Malaysia, who were fewer in number and seldom returned to work after they had left. West Malaysian CPF members, in fact, are given preferential treatment over Singapore members. Apart from enjoying the privilege of tax-exemptions on their CPF savings, West Malaysians can withdraw their full CPF savings from age 50, without having to set aside the minimum sum, provided that they have not worked in Singapore for at least two years prior to the withdrawal request. Singaporeans can only withdraw their CPF at the age of 55, and after they have set aside the prevailing minimum sum. Sir, CPF funds belong to individual account holders and not to governments. There is no question that the CPF savings of West Malaysians will always belong to the West Malaysians themselves. Only individual West Malaysians can withdraw their own CPF savings when they meet the age criteria. Their contributions were made in accordance with the prevailing rules and withdrawal conditions that have been in place since 1971.”
“Sir, should there be a need to cut employers' CPF contribution, we understand that it will cause difficulties to home owners who are servicing their home mortgage loans. This includes those who have bought HDB flats and those who have bought private properties. In the case of those who bought HDB flats, HDB will look into how to assist them over this period. When we made a similar cut in 1986, HDB offered rescheduling of their loans, longer repayment period and a ballooning repayment scheme. There is a whole host of alternatives that can be found and can be offered to home owners who have difficulties. In the case of the private properties, during the mid-80s when we had to cut CPF, Government offered them a soft loan pegged at CPF interest rate. It is a bridging loan to help them over this period. We will look at all these possibilities. We will look at all these means of helping home owners who are adversely affected and implement those that can help them to cope with the crisis. WEST MALAYSIAN WORKERS' CENTRAL PROVIDENT FUND 8. Mr Seng Han Thong asked the Minister for Manpower (a) what exactly was the Malaysian Government's call on the return of West Malaysian workers' Central Provident Fund; (b) what is our official response to the call; and (c) if there is any official response, what are the conditions attached.”
“The NWC, as I said, will be reconvened sometime next week. After the NWC has the chance to meet and to discuss and make its recommendation, the public sector will then announce its position. As to whether the 13th month annual wage supplement is part of the variable component, as I said in my answer, the NWC has already indicated that it will be considered adjustable. In the case of a company that is doing very badly and making losses, certainly the AWS may also be reduced.”
“Sir, as I mentioned in my main answer, the Committee on Singapore's Competitiveness will be looking at all these issues and to develop a new strategy for us to cope with the crisis. This would include how to seek new investments, how to look for new markets for Singapore, how to reduce our overall cost of business so that we can become more cost competitive in view of the changed condition. And it would include, of course, how much more effort and investment we must put into upgrading the skills of our workers so that they can take on the new jobs that are created by the flow of investments coming into Singapore. This will be settled by the Committee on Singapore's Competitiveness.”
“Sir, I will try to get the reconvening of NWC settled as soon as possible. I expect that we will be able to make an announcement by next week. The priority for NWC to consider would be the wage guidelines, what should be the wage guidelines for the rest of the year. NWC will also examine the background to the need for a CPF cut and make its recommendation in that respect. Mr Ahmad Mohd Magad (Pasir Ris): Sir, it is indeed laudable to note that the NTUC has taken the initiative by urging its members to go for wage restraint. In view of the worsening economic situation, what further measures are being considered to save jobs and to restrain and, wherever possible, prevent further retrenchments?”
“Sir, when the NWC made its recommendation this year, it was through a series of deliberations in April and May. The situation then was very different. The regional crisis has got worse over this period, between May and now. In fact, the regional crisis has not bottomed out yet. Changes are still taking place almost on a day-by-day basis. Malaysia has just introduced exchange control, as Mr Chiam has mentioned. This is a sign of the seriousness of their economic problem. And as the Prime Minister had said at the National Day Rally, when there are economic difficulties in Malaysia, it will have a serious impact on Singapore. We will be affected when they have difficulties. Likewise, Indonesia continues to face serious economic difficulties. A shortage of essential food supply continues to cause social unrest and create problems of law and order. This year and the next year will therefore be very difficult years for Singapore. There is a real likelihood that we will end up with much higher unemployment than we have experienced since the mid-80s. Reducing business costs, including wage cost, will help our companies to weather this crisis. It will help us to reduce job losses though it may not lead to a quick recovery because we are suffering largely from the impact of the regional crisis. Hence, I think it is necessary at this juncture for us to take another look at our wage policy. So by reconvening NWC to review its recommendations made in May this year will give the trade unions representing the workers and the employers who are component parties of the NWC to re-examine the whole changed environment and come to a new consensus on how we could improve our wage competitiveness.”
“Mr Speaker, Sir, Malaysia's imposition of currency control took place barely three days ago. We can wait a while to see the full impact on Singapore before we decide how it will affect us and what should be our response by way of improving our wage competitiveness.”
“Sir, in a nutshell, a cut in the employers' CPF next year is very likely, but we will have to wait for the report from the Committee on Singapore's Competitiveness to make its full recommendation.”
“This will be a major focus of the report of the Committee on Singapore's Competitiveness, chaired by Mr Lee Yock Suan. The report will be ready before the end of the year. In an overall plan to reduce costs, wages will have to bear its share of the reduction through the flexi-wage adjustments and, if necessary, a CPF cut.”
“The retrenchments in our electronics industry are partly caused by companies shifting production to other countries, including Malaysia, Thailand and South Korea. This goes beyond the normal process of industry upgrading. It is a sign that we are becoming less competitive. We must watch this carefully, and not allow our manufacturing sector to be hollowed out. Mr Speaker, Sir, as the Prime Minister said at the National Day Rally, our solution is not to depreciate the Singapore dollar to match that of our competitors. That would erode the purchasing power of workers' wages, and reduce the value of workers' CPF savings, through higher inflation. It is better to maintain a stable exchange rate, and tackle the components of business costs directly, whether they are wages, rentals and land prices, and Government taxes and charges. Indeed I understand this has been the MAS' policy - to maintain a stable Singapore dollar exchange rate, but within flexible limits that reflect our economic fundamentals. Mr Speaker, Sir, on a trade-weighted basis, the Singapore dollar exchange rate has risen only slightly since the crisis began, particularly if we discount the effect of the large depreciation of the Indonesian rupiah. The purchasing power of the Singapore dollar has been maintained, as seen in our very low consumer price inflation. Sir, the Government will reconvene the National Wages Council to update their recommendations in the light of developments since May, and issue new wage guidelines to help the economy cope with the continuing crisis. The Ministry of Trade and Industry is currently studying all components of costs in Singapore to establish how competitive we are in this changed situation, and what we must do to strengthen or restore our competitiveness.”
“5%-2.5%. At the same time, variable payments are likely to be cut. NTUC expects bonuses, including the Annual Wage Supplement, to average 1.0-1.3 months this year, down from the 2.3 months on average that were paid out last year. Sir, overall, total wages are likely to decrease by 5%-8% this year, compared to last year. This is a valuable contribution to cutting business costs, and helping firms to remain viable. The flexi-wage scheme is therefore working. Union leaders have been very responsible, moderating the expectations of members and negotiating realistic settlements. Many companies are already exercising not just wage restraint, but severe wage restraint. This is a prudent interpretation of the NWC recommendations in the present circumstances. But the question is whether flexi-wage adjustments alone will be enough. Flexi-wages are effective for making firm-by-firm adjustments, when individual companies are in difficulty. But if we need to lower wages across-the-board, as part of an overall reduction in our business costs, then flexi-wage adjustments may need to be supplemented by a cut in employers' CPF contributions. The regional crisis has altered the competitive landscape. Many Asian countries have seen large currency depreciation of 25%-75% against the Singapore dollar. With unemployment rising, their wages have not increased to compensate for the reduced purchasing power. This has sharply reduced their labour costs, and made them more cost-competitive compared to us. Our electronics exports have lost market share in the US. Other Asian countries have lost market share too, but by less than Singapore.”
“Mr Speaker, Sir, since 1987, we have built up a flexi-wage system to enable companies to adjust their wage costs through the variable component of wages, based on company's performance. This variable component now constitutes 16% of total wages. In the unionised sector, the variable component is 20%. This provides a cushion for companies to reduce wage costs in difficult times. The NWC recommendation for 1998 is wage restraint. It was formulated in May, when the forecast for economic growth was 2.5%-4.5% for the year. Since then the regional outlook has deteriorated. We now expect the economy to grow by 0.5%-1.5% for this year. The figure is still positive, but this does not truly reflect current reality. In a rapidly changing situation, quarter-on-quarter figures give a better indication of the direction of the economy, although they are more volatile. On a quarter-on-quarter basis, seasonally adjusted growth was only +0.3% in the first quarter, and was -1.7% in the second quarter. We can expect very weak or negative growth for the rest of the year and next year. These difficult economic conditions are already being reflected in wage settlements. My Ministry's data on wage settlement achieved so far showed that the weighted average basic wage increase up to July this year is only 2.5%, compared to 5.9% last year. The average increase agreed between management and unions has progressively dropped since January this year. Sir, NTUC data paint the same picture. NTUC has reported that over the last two months, 48 companies employing 4,490 workers settled for a wage freeze, out of which one company had a wage cut. Many more requests for wage freeze are now on the negotiating table. NTUC expects that for the year as a whole, the average basic wage increase will only be 1.”
“Mr Speaker, Sir, the civil service salaries are closely pegged to the private sector. If, in fact, the private sector's starting salaries are going down, in due course, the civil service will also make an adjustment. EMPLOYERS' CENTRAL PROVIDENT FUND CONTRIBUTIONS (Reduction) The following Question stood in the name of Mr Cyrille Tan - 7. To ask the Minister for Manpower, with regard to the Government's stand that a cut in the employers' Central Provident Fund contributions will only be considered as a last resort, what constitutes a "last resort".”
“Mr Speaker, Sir, this year's batch of new graduates has just entered the job market in the last 1« to two months. So I think it is still too early to gather such details. We will in due course have such information available.”
“Mr Speaker, Sir, I think it goes without saying that if a ministry or department is understaffed, whoever is in charge will look at this loosening of the labour market as a golden opportunity to fill up the vacancies that he has to live with for so long. Dr Wang Kai Yuen (Bukit Timah): Does the Minister have any statistics to show that the starting salary for new graduates has dropped and by how much has it dropped?”
“Mr Speaker, Sir, as the labour market loosens and employment creation slows down, we can expect that even graduates will find greater difficulty in getting jobs, particularly new graduates, and this is to be expected. I hope that this year's batch of new graduates will understand this position and also, more importantly, revise their expectations. On our part, we will assist graduates who need job placement assistance. They can register with the Employment Service Department if they have difficulty finding a suitable job match on their own. We will help them find a suitable job match because we have a team of officers in our employment facilitation team who will make contact with all the employers in the various sectors that we know are still recruiting staff. We will try to help the graduates who register with us to find a suitable job match. As to the statutory boards and Government departments, let me assure the Member that Government departments and statutory boards will continue to recruit manpower according to their needs. Faced with this crisis, we should not try to take the approach of using the Government as a sponge to soak up the surplus manpower as the economy slows down. There is a limit to how much the Government can do to soak up this surplus manpower. What we have to do is to create real jobs for them. We should not just randomly recruit graduates because we want to provide a refuge for them in this period of economic slowdown. That would be unwise. It would lead to Government inefficiency and, in the long term, it will hurt us more than it will benefit us. What we should do is to try to stimulate development, bring in more investments, and create more jobs so that the graduates can get employment and make a real contribution to the economy.”
“Mr Speaker, Sir, I do not have the figures on the re-employment rate. But I understand that the re-employment rate between the first and second quarters has not changed substantially. There may have been a slight lengthening in the period of unemployment among those who were retrenched or out of work. With regard to the profile of the unemployed persons, as most of the retrenchments in the last two quarters, about 68% to 69% of the retrenched workers, came from the manufacturing sector, you will expect to find more women. In fact, there could well be a higher proportion of the older or middle-aged workers, ie, those above the ages of 35-40 and above, and that in itself presents an added dimension to the problem. Because they are older, less educated and less skilled workers they have greater difficulty finding new jobs and that is why we are investing so much money and effort in providing them with skills upgrading opportunities so that they can take on the new jobs that are being created in the other sectors of the economy.”
“Mr Speaker, Sir, the labour market continued to soften in the second quarter of 1998. The seasonally adjusted unemployment rate was 2.3% in June 1998. This was slightly higher than 2.2% in March 1998 and substantially higher than 1.7% in June 1997. The actual unemployment rate without adjusting for seasonal factors was 3.2% in June 1998 compared with 1.9% in March 1998 and 2.4% in June 1997. Unemployment is traditionally high in June as this is the period that the new local tertiary graduates join the ranks of job seekers. An estimated 62,100 persons (seasonally unadjusted figure) were unemployed in June 1998 compared with 36,500 in March 1998 and 45,500 a year ago. The Employment Service Department of the Ministry of Manpower registered about 1,500 to 1,700 new job seekers per month in recent months. About 80% of job registrants were able to get job referrals from the Department. Based on companies' feedback, about 6% of the total job registrants were successfully placed in employment. The ESD records show that about 50% of the registrants were able to find employment on their own, or they rejected the job offers by the prospective employers. The reasons cited for rejection include the unsuitable nature of work, working hours, location of workplace, or salary. Dr Lee Tsao Yuan (Nominated Member): Will the Minister please enlighten the House as to whether the duration of unemployment has increased and also the nature of the unemployed, in other words, are these predominantly older and unskilled workers?”