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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“Sir, thank you for allowing me to respond to the Members who have spoken. First, I would like to thank Mrs Yu-Foo Yee Shoon, Chairman of GPC for Labour, and the other seven Members who have spoken in support of our efforts to raise the retirement age, and also to get more Singaporeans, particularly housewives and older Singaporeans, to rejoin the workforce. Let me first respond to the remarks on the extension of retirement age. In November 1995, my Ministry formed a Tripartite Committee on the Extension of Retirement Age. This Committee is chaired by the Permanent Secretary of the Ministry of Labour. The charter of the Committee is to study the extension of the retirement age beyond the current minimum level of 60 years. The Committee carried out thorough studies of all the issues connected to the retirement age and also conducted extensive consultations with union leaders and employers, so that their views and concerns could be taken into consideration. Sir, I am pleased to inform the House that the Tripartite Committee has completed its study and has submitted its Report to the Government for consideration. The Government has considered the Committee's Report and accepted its recommendations. Before I report on the Committee's recommendations, permit me to reiterate the reasons for a mandatory minimum retirement age and the need to raise it beyond the present 60 years of age. With increasing life expectancy and declining birth rates, our population is ageing rapidly. As the GPC Chairman for Labour noted moments ago, currently, eight economically-active persons support one aged person who is 60 years and above. In fact, if we project this in the years ahead, the number of economically-active persons supporting one aged person will decline sharply.”
“This year alone, my Ministry has issued stop-work orders to 100 work sites for them to spruce up the work sites and eliminate all potential mosquito breeding grounds. With effect from June this year, contractors who persist in flouting environmental laws and requirements run the risk of being debarred from tendering for any Government construction projects. My Ministry will also consider tougher penalties against households and other premises, if necessary. We will also continue with efforts to educate the public, and to remind Singaporeans of the need to translate their high level of awareness into individual responsibility and action. So long as the Aedes mosquito can find places to breed, the threat of dengue will always remain. We will need the support of every Singaporean to stamp out the Aedes problem. We must take dengue fever seriously and collectively act against it.”
“Although the overall incidence of 1.2% appears low, the percentage of homes found breeding Aedes has gone up to as high as 8% in certain neighbourhoods. The threshold for residential premises beyond which an epidemic is likely is 5%. Out of the 196 schools checked this year, 53 or 27% were found to be breeding Aedes, compared to 19.9% in 1995, and 20.5% last year. Breedings detected in construction sites also remain high. Out of the 5,320 sites checked this year, 440 or 8.3% had breedings detected, compared to 9% in 1995 and 8.2% last year. Another major source of Aedes breeding is litter, for example, discarded drink cans and bottles. In the first four months of this year, Aedes mosquitoes were found breeding inside about 1,300 discarded receptacles. The increased breeding of Aedes mosquitoes in Singapore has led to an increase in the number of dengue cases. In the last six months, we have seen an average of 283 cases per month, compared to 260 cases per month last year, and 167 cases per month in 1995. Since eradication of the Aedes mosquito is the key to solving the dengue problem, my Ministry has conducted a number of surveys over the past few years to test public awareness. The surveys showed that the public generally understands the danger of dengue fever and also knows what causes it. They also know about the Aedes mosquito and the measures to take to prevent it from breeding. Unfortunately, there are still many who do not make the effort to check their work sites, premises or homes and take the necessary corrective measures. My Ministry will continue to take enforcement action against those who breed the Aedes mosquito in their homes or premises under their charge.”
“Mr Speaker, Sir, currently, my Ministry allows contractors to pay a lower levy of $200 per month for each foreign worker certified skilled by the Construction Industry Development Board (CIDB). This is a significant saving compared to the levy of $440 for unskilled workers. This policy is aimed at encouraging contractors to employ more skilled workers. The levy savings take effect immediately once the worker is certified skilled. There is no need for a qualifying period. Furthermore, foreign workers that are certified skilled can work here longer for up to 10 years, unlike unskilled workers who can only stay a maximum of four years. Contractors should also encourage their foreign workers with five years' work experience in Singapore to further upgrade their skills by obtaining NTC certification so as to qualify for the 3-year Work Permits and be exempted completely from foreign worker levy. My Ministry has therefore provided ample avenues for contractors to employ skilled workers on lower foreign worker levy or even be exempted completely. BREEDING OF AEDES MOSQUITOES IN PREMISES (Percentage) 9. Encik Harun bin A. Ghani asked the Minister for the Environment what percentage of premises checked for various types of mosquitoes were found to be breeding Aedes mosquitoes from 1995 up to the latest available date and what action is being taken by his Ministry. The Minister for the Environment (Mr Yeo Cheow Tong): Sir, landed properties, flats, vacant premises and school compounds have all registered an increase over the last two years in the number of occasions when Aedes mosquitoes were found breeding. For the six months of this year, my Ministry staff checked almost 95,000 homes. Of these, 1,150 or 1.2% were found breeding Aedes, compared to 0.7% in 1995 and 1% last year.”
“Some Members of this House may say that we have already allowed CPF savings for the HDB Upgrading Programme, so why not allow CPF savings for renovation too. I wish to point out that the HDB Upgrading Programme is a national asset enhancement programme. The programme involves improvements in the entire block and its surroundings, not just renovation in the flats. Government also grants a large subsidy to meet the total upgrading cost. There is less risk that the home-owner will not be able to recover his share of the upgrading costs. Hence, we have allowed CPF savings to be used for the home owner's share. However, if a HDB flat owner wishes to renovate his HDB flat, he cannot use his CPF for the renovation. FOREIGN WORKER LEVY (Waiver) 8. Dr Teo Ho Pin asked the Minister for Labour whether his Ministry will consider waiving the foreign worker levy for contractors who employ direct skilled foreign workers for a minimum period of 5 years.”
“Mr Speaker, Sir, this matter has been raised in this House on several occasions previously. I have explained that allowing CPF savings to be used for home repair, maintenance and renovation would be contrary to the objective of building up savings to meet old age needs. Allowing such use of CPF savings would lead to depletion of the old age savings of CPF members. At the current 40% contribution rate, CPF savings can only provide a retired member 20% to 40% of his last drawn pay, which is by no means excessive. Any new ways to help a CPF member to use his CPF savings before the withdrawal age will mean that his retirement income would be even less than expected. Hence, my Ministry has decided not to allow the use of CPF savings for home renovation, whether it is private properties or HDB flats. Although some renovations may enhance the value of property, it is extremely difficult to ascertain which renovation work will lead to permanent enhancement and which are consumption to keep up with changing tastes. It would also be difficult to decide what is upgrading work and what is just part of cyclical repair and refurbishment. There is also no limit to the amount and frequency of home renovation which can easily lead to premature consumption of old age savings. I would like to urge CPF members not to see their CPF savings as a goose providing them with an unending stream of golden eggs. CPF savings are your hard-earned savings put aside for the future when you retire. CPF members should think of prudent ways to invest CPF savings so that when you retire, you have a bigger nest egg, not ways of using up precious savings long before retirement.”
“The Town Council cleaning contractors must also undertake to provide housing for NTS workers, that is, proper accommodation, and not temporary structures at work site or in estates, or in non-residential premises such as bin compounds or utility rooms in the HDB flats. My Ministry will be consulting MND, HDB and Town Councils on the implementation details. I expect the scheme to be ready in three to four months' time. I hope that this measure will help Town Councils meet their short-term needs for more cleaning workers without undermining the long-term objectives of upgrading the industry, increasing its productivity and reducing its manpower requirement. Finally, I also hope that Singaporeans living in public housing estates will take it upon themselves to keep their estates clean. By doing so, they will cut down on the number of foreign workers needed and reduce the social problems caused by a growing number of foreign workers. LAND TRANSPORT AUTHORITY (Rationale for publicity campaigns) 6. Mr Low Thia Khiang asked the Minister for Communications what is the rationale for the Land Transport Authority spending $3 million on publicity campaigns.”
“Mr Speaker, Sir, currently, cleaning contractors are allowed to employ foreign workers from traditional sources. Our review indicated that despite the 25% foreign worker dependency ceiling, Town Councils still face a shortage of manpower. Our review also indicated that there is still scope for further mechanisation, automation and application of labour reduction methods in cleaning and refuse collection work. New technologies that reduce manpower requirements have not been fully exploited in Singapore, compared to developed countries. Our strategy should therefore be to step up our mechanisation efforts and look into areas to reduce manpower needs in the industry. Liberalising the supply of unskilled non-traditional source (NTS) labour should not be our only or long-term solution. Nevertheless, to achieve the long-term objectives and yet meet the short-term needs of Town Council cleaning contractors, my Ministry has decided to implement a special scheme to enable some Town Council cleaning contractors to employ foreign workers from non-traditional sources. Under the scheme, Town Council cleaning contractors that are registered with the Construction Industry and Development Board and have at least $500,000 paid-up capital will be allowed to employ a limited number of NTS workers. They are also required to have an investment of at least $100,000 in labour-saving equipment. Eligible Town Council contractors will be allowed to hire NTS workers depending on the number of housing units they are servicing and subject to a 25% dependency ceiling. The levy for these NTS workers will be $440 per worker monthly, in line with the levy for a majority of other NTS workers.”
“Mr Low Thia Khiang asked the Minister for Health whether there are sufficient doctors and nursing officers in Government restructured hospitals and Accident and Emergency Units at night and whether the workload imposed on doctors, nurses and housemen is reasonable.”
“Mr Speaker, Sir, in 1994, 386 illegal foreign workers were arrested at construction sites. This rose to 932 in 1995. In the first nine months of 1996, 938 illegal workers had already been arrested. Besides the construction industry, illegal foreign workers are also found in service industries, such as foodstalls, cafeteria, coffeeshops, provision shops and cleaning services. As the problem of illegal employment was most serious in the construction industry, the Employment of Foreign Workers Act was amended to hold principal contractors in the construction industry responsible for illegal workers found at their work sites and to facilitate prosecution of employers of illegal workers. Besides the amendments to the Employment of Foreign Workers Act, my Ministry in conjunction with the Police and Immigration Department has also stepped up enforcement action to detect and arrest illegal construction workers. The marine industry and construction industry are two areas which have the most difficulty in recruiting local workers. In view of this, we have allowed higher dependency ceilings for these two industries. The dependency ceiling for the marine industry is one local worker to three foreign workers, while that for the construction industry, it is one local worker to five foreign workers. Currently, 96% of the marine companies and 92% of the construction companies are operating within the prevailing dependency ceiling. There is no need to raise the dependency ceiling at this juncture. DOCTORS AND NURSING OFFICERS IN GOVERNMENT RESTRUCTURED HOSPITALS AND ACCIDENT AND EMERGENCY UNITS 5.”
“Mr Speaker, Sir, I think that is the purpose of giving a double tax relief, ie, to encourage those women who are able to make a substantial contribution to the economy and earning a higher salary to come back to work and, if they need to, then they can engage the services of a foreign domestic worker. That is the whole purpose of it. In fact, if the woman's income is so low that she cannot even afford to pay the maid the wages and the levy, then perhaps the woman should consider alternative arrangement instead of employing a foreign domestic worker to look after the household needs and to care for her children. There are many other such options or alternatives available. In fact, most Singaporean families do not depend upon foreign domestic workers to look after their children. The majority use the traditional avenues like in-laws, parents or other family relatives to care for their young children. So there are other alternatives. The foreign domestic worker is not the only solution to this problem. PHYSICAL INJURIES SUFFERED BY EDUCATIONALLY SUBNORMAL BOY WHILST IN POLICE CUSTODY (Commission of Inquiry) 3. Mr Low Thia Khiang asked the Minister for Home Affairs how a 13 year-old educationally subnormal boy who was arrested by officers from the Ang Mo Kio Division/Chong Boon Neighbourhood Police Post on 24th February 1993 suffered physical injuries whilst in the custody of the police for more than 7 hours and whether he will consider appointing a commission of inquiry to inquire into the circumstances.”
“Mr Speaker, Sir, the foreign domestic worker levy is necessary in order to moderate demand for foreign domestic workers. At today's rate of levy, $330 a month, we already have more than 90,000 foreign domestic workers in Singapore. If we further reduce the foreign domestic worker levy, the demand is liable to shoot up. We may then have a much larger problem to manage and cope with such a large number of foreign domestic workers in Singapore. In order to encourage married women to work, the Government has, in fact, given them a double tax relief on the foreign domestic worker levy that they pay. Whether the woman or the husband employs the domestic worker, they can now claim a double tax relief of the woman's income so that it more or less substantially reduces the woman's real payment for the foreign domestic worker.”
“This confirmed our observation that married women prefer part-time or flexi-work arrangements. Employers who have difficulty recruiting staff should be aware of the constraints faced by this pool of potential employees and make the necessary adjustments. My Ministry and the Productivity and Standards Board are currently working with employers, particularly those with many vacancies, to examine ways of restructuring some jobs for part-timers, thereby widening their recruitment pool. Over the longer term, we hope to attract more and more married women back to the workforce, with jobs which allow them to supplement their family income and at the same time attend to their homemakers' responsibilities.”
“Sir, as at June 1996, 59,000 or 3.4% of employed persons were working part-time. Part-time workers refer to persons whose regular working hours are less than 30 hours per week, including those who work on a flexi-time basis. Two-thirds or 39,700 of the part-time workers are females. This constitutes 5.5% of the female workforce. The percentage of women working part-time has not increased significantly in recent years. Sir, the percentage of women in part-time employment in Singapore is lower than that of the developed countries. My Ministry encourages employers to provide more part-time employment and flexi-work to attract the economically inactive, particularly housewives, to return to the workforce. Part-time and flexible work arrangements would enable housewives to balance work with domestic commitments. The promotion of part-time and flexi-work is therefore the main thrust of the "Back to Work" Programme launched recently by my Ministry, the Productivity and Standards Board, the NTUC and Singapore National Employers' Federation. We hope that this tripartite effort would bring about a greater awareness of its benefits among employers as well as the economically inactive, and facilitate their return to the workforce. Within a month after the launching of the "Back to Work" Programme, a total of 1,655 applications have been received. These applicants are being referred to the participating companies to be interviewed. For those who require core skills training, the Productivity and Standards Board and their employers will send them for suitable training courses. Of the 1,655 applicants, 1,069 or 65% are married women in the 30 to 54 age group. 83% of these women have also indicated their preference for part-time and flexi-work arrangements.”
“Mr Speaker, Sir, with your permission, may I take both Question Nos. 1 and 2 together since they are both related.”
“If it is brought to our attention that companies have violated the law, appropriate action will be taken against them. SHELTERS LINKING HDB FLATS WITH BUS STOPS/TAXI STANDS/MRT STATIONS 6. Mr Cheo Chai Chen asked the Minister for Communications if he will state (a) the number of units, to date, of shelters linking HDB flats to bus stops/taxi stands/MRT stations which have been constructed and under construction and the total cost of these constructions; (b) the number of such units constructed and under construction in the four opposition wards; and (c) the number of such units constructed and under construction in Sembawang GRC and Nee Soon South Constituency.”
“The Employment Act stipulates that an employee shall not work more than 12 hours in any one day. This is to protect the health and safety of workers. However, the Employment Act does allow for two exceptions. Firstly, if there is an emergency situation such as when an accident has occurred or is threatening to occur and secondly, if the employer has been granted exemption by the Minister. Employers who are seeking exemption must however provide valid grounds to support their applications. I would like to point out that exemptions are granted only under exceptional circumstances. We will scrutinise such applications carefully and take into consideration both the operational needs of the employer as well as whether the extended working hours are likely to affect the health and safety of the employees. Other than the two exceptions above, my Ministry also recognises that given our tight labour market, there are certain situations, from time to time, whereby employees may be requested to cover the duties of their colleagues who have fallen sick, and hence may have to work more than 12 hours. Such arrangements, however, will require the consent of the employees and are usually restricted to jobs involving shift work where the continuity of operations is needed. In such situations, to ensure that the smooth operations of the companies are not affected, my Ministry would take a more flexible approach and not apply the law rigidly, so long as the health and safety of workers are not compromised. I must however point out that this is an exception rather than the rule. Under normal circumstances, a company is prohibited from requiring its employees to work for more than 12 hours a day. The Ministry hardly receives any complaints of this nature.”
“The `Back to Work Programme'is the first step in this direction but it is not intended that this programme alone will be able to raise our workforce by 150,000. It will take time and changes in the mindsets of both employers and prospective employees before we can fully tap this pool of potential employees and make better use of our available manpower resources. SERANGOON GARDENS FOOD CENTRE (Construction of roof) 11. Dr Lau Teik Soon asked the Minister for the Environment whether his Ministry will consider constructing a roof for the Serangoon Gardens Food Centre and, if so, when.”
“Mr Speaker, Sir, the `Back to Work Programme' was launched by my Ministry on 13th September at the `Choice Employers 96 Exhibition', in conjunction with the Singapore Productivity and Standards Board, the National Trades Union Congress and the Singapore National Employers' Federation. The objective of this tripartite initiative is to raise the local labour force participation rates so as to better utilise our indigenous manpower resources. The programme is directed at potential employees outside the workforce. These are mainly the housewives and older persons. Under this programme, employment assistance will also be extended to retrenched workers. Sir, since the launching of the programme at the exhibition, the Employment Service Department of my Ministry has received many job applications and telephone enquiries. Between 13th September and 21st September 1996, a total of 1,053 job applications were received. Of these, 643 or 61% were married women in the 30 to 54 age group while 309 or 29% were persons aged 55 and above. Some 68% of the applicants have also indicated their preference for part-time and flexible work. Over the same period, a total of 968 telephone enquiries were also received. Sir, there are a large number of women in the 30 to 54 age group and persons aged 55 and above who are economically inactive. The labour force participation rates of these two groups are much lower than that in the developed countries. For example, the labour force participation rate of women in the 40 to 49 age group is only 52% compared to 71% in Japan. Likewise, only 41% of persons aged 55 to 64 are working compared to 66% in Japan. If we could achieve Japan's labour force participation rates for these two groups, we could increase our workforce by 150,000.”
“Mr Speaker, Sir, in fact, I have told this House that the domestic worker levy has got to be reviewed from time to time in accordance with the wage increase in Singapore. We have got to keep a certain parity. As wages and incomes in Singapore go up, more and more people will find it affordable to have a foreign domestic worker unless the levy is at the same time adjusted to reflect the rising affluence. 3-ROOM HDB FLATS (Building) 3. Mr Goh Choon Kang asked the Minister for National Development, in view of the substantial demand for 3-room flats, whether it will be more cost-effective for the Housing and Development Board to build rather than buy back such flats in the open market to sell them to the applicants.”
“Mr Speaker, Sir, the purpose of the domestic worker levy is to dampen the demand for foreign domestic workers. The Government needs to ensure that the number of foreign domestic workers remains manageable as there are various social and political costs in having a large pool of foreign workers here. With rising income and affluence, more and more Singaporeans are finding it affordable to employ foreign domestic workers as evidenced by the rapid rise in the number of such workers over the years. Even with the levy, there are currently more than 90,000 foreign domestic workers in Singapore. Lowering the levy would send a wrong signal and lead to a surge in demand for foreign domestic workers. This would undermine the Government's efforts to manage the foreign worker population here. I would like to inform the Member that the Government encourages married women to work by granting them a tax relief on the domestic worker levy. They can claim a tax relief of twice the amount of levy paid for one foreign domestic worker employed by the married woman or her husband in the preceding year. The tax relief is deductible against the earned income of the married woman. In this way, married women are encouraged to continue working by reducing their cost of employing foreign domestic workers. Furthermore, the Government provides working mothers with child care subsidy of up to $150 per month for each child placed in a child care centre. Most families also rely on grandparents or other relatives to help out with child care. Hence, employing a foreign domestic worker is not the only answer to the working woman's need to balance career with household burden.”
“We are prepared to look into such cases if the employer has obtained a clear or written undertaking from an agency which would take on the responsibility. Because, as I said earlier on, until the domestic worker is repatriated, the employer is, in law, responsible, because he has given us a security bond. But if the agency is prepared to give him a warranty of some kind or an undertaking that they will be responsible, then we can look into how to make the agency accept this responsibility. SMALL FAMILIES IMPROVEMENT SCHEME (Number of families who benefited and number disqualified) 9. Mr Imram bin Mohammed asked the Minister for Community Development how many families are benefiting from the Small Families Improvement Scheme; and how many families had subsequently disqualified from the scheme and for what reasons.”
“If the employer has information on the location of the maid, they can provide it to my Ministry. We will see how we can assist to repatriate the maid. Of course, we will also need the assistance and cooperation of the Immigration Department in doing so. But we will work together. The employer can provide the information to the Work Permit Department of my Ministry or to the Immigration Department. We will act to locate the maid and repatriate her.”
“Sir, if the employer discovers that the domestic worker has absconded and he chooses immediately to cancel the work permit, then no levy is payable. He does not have to pay any levy. But if the employer says that he is going to make his own effort to look for the maid and in the meantime keeps the work permit valid, then of course the levy has got to be paid. Because there is no way for my Ministry to go round and check on every household to see that the worker who has absconded is not working there or working for somebody else in the neighbourhood. It is impossible for us to check on every household considering the number of such foreign domestic workers. So, as long as the work permit is still valid, the employer will have to continue to pay the levy. As I said, the moment the employer discovers that his maid has absconded, it is up to him to decide what to do. He can cancel the work permit, in which case all obligations to pay the levy stop and then the security bond will be invoked. And he will be given, as I said in my explanation, up to six months to look for the maid or to provide information that could lead to the repatriation of the foreign worker, in which case the bond will be refunded to him.”
“Sir, we are equally concerned with these missing workers. Where have they gone to? What are they up to? Which is why we have a system to minimise the occurrence of such cases. The Immigration Department and the Work Permit Department from time to time come across these workers who have left their employers and who are just hanging around in Singapore. Those who are discovered, we repatriate them as soon as we can obtain the proper documents for them. Some of these so-called missing workers have also taken refuge and shelter. In some cases, they may have taken shelter in their own mission. These are cases which are resolved quite easily because we have good working relationships with all the missions here. And if the workers report to them and are unwilling to go back to their employers, we will intervene to resolve the disputes with the employers and the workers can then be repatriated quickly.”
“As I said, when an employer applies for a work permit for a foreign worker, whether it is a foreign construction worker or a domestic worker, he undertakes the responsibility of repatriating the foreigner on completion of the contract. That is very straightforward. The employers have taken on the responsibility to repatriate the foreigner. If they choose to pass this responsibility to somebody else who subsequently fails to discharge the responsibility, it does not absolve them of the responsibility. Therefore, in cases where the employers have passed the domestic worker to some agent and expect the agent to do what is right, and if the agent fails to do that, unfortunately, under those circumstances, the bond may well have to be forfeited, unless the maid is subsequently located and repatriated.”
“Even after forfeiting the security deposit, a refund can be considered if the missing worker is found within three months and the employer has assisted or furnished information to my Ministry or Immigration Department leading to the location of the missing worker. This could be extended to six months on the merits of the case.”
“Mr Speaker, Sir, the security bond is a safeguard to ensure that employers take responsibility for their foreign workers, including domestic maids, and repatriate them upon the cancellation of their work permits. The security bond is forfeited if the employer fails to repatriate the foreign worker regardless of the circumstances. Sir, this condition is made very clear to applicants for work permits. Without the security bond, employers may not exercise proper control over their foreign workers, resulting in more missing workers who may end up creating social problems. There could also be problems of irresponsible employers abandoning their foreign workers under the guise of missing or runaway workers which could lead to friction with labour-exporting countries. The problem of missing maids is not rampant. In fact, my Ministry's record showed that as of April 1996, the cumulative number of missing maids was only about 200. This is minuscule compared to the hundreds of thousands of foreign domestic workers who had come to Singapore over the years. We should not change a system which has worked well and enabled the vast majority of foreign domestic workers to return to their home countries expeditiously after their contract with their employers was completed. Nevertheless, my Ministry is not completely inflexible in cases where the domestic workers have absconded. As a practice, we do not forfeit the security bond immediately. We understand the unhappiness of employers who are faced with the problem of absconding domestic workers. We have, since November last year, extended the grace period from 14 days to one month after the cancellation of the missing worker's work permit for employers to search for their missing workers before forfeiture of the security bond.”
“Mr Speaker, Sir, the answer is no. COMPULSORY ACQUISITION OF LAND FOR NORTH-EAST MRT LINE (Alternative accommodation for affected residents) 3. Dr Lau Teik Soon asked the Minister for Law whether he will allow the residents who have given up their homes as a result of the compulsory acquisition of land for the North-East MRT line and comprehensive development to stay on in the acquired homes at a nominal rental until they are able to relocate to their new homes, and, if not, whether he will consider providing alternative accommodation at a nominal rate to the residents affected.”
“Mr Speaker, Sir, some property owners have also taken up bank loans apart from withdrawing money from their CPF accounts to finance the purchase of their properties. Therefore, it is not only a case of settling the issue with the CPF Board. There are other lending institutions involved too which have also placed equal charges on these properties.”
“Mr Speaker, I have tried to explain to the Member that even if the CPF Board were not to proceed with the charge to seek the reinstatement of the CPF savings that have been withdrawn, it does not mean that the member can enjoy the full 20%. It may well be that he has to meet his obligation under his mortgage. The banks may also want to make their claim. So the solution as advocated by the Member is incomplete because although the CPF Board may be prepared to waive the charge, private lending banks may not want to waive the charge. So the member will still have the same problem. The real solution for the member who has a cash flow problem now in trying to find alternative premises is to take up the offer of the Land Office: take full compensation, remain on the property for as long as he needs to during the transitional stage and then move out when his new property is ready or when it is required for development.”
“Mr Speaker, Sir, of course, I am very sympathetic to those property owners whose properties have been acquired. The question of why these properties have been acquired had been discussed at length on other occasions. I think right now we are talking about whether the 20% upfront compensation should be left entirely to the discretion of the property owner or should be utilised as he had already committed himself to, ie, when he took money from the CPF account to purchase this property, he had allowed a charge to be placed on the property. Whether the property is subsequently sold, transferred or acquired by Government makes no difference. He should refund the money that he has first received in payment for the property to the agency which has a charge on the property. We have to maintain this principle. Otherwise, we could allow ourselves to be caught in all kinds of situations. In future, there will be other claims and requests and the protection of the CPF savings will not be complete. Our concern right now is to ensure that the members' CPF savings are properly protected. I agree that he is in a difficult position because his property has been acquired, but the solution to his problem cannot be to waive the protection that is necessary for his CPF savings. The solution for him is, as I said earlier on, to take the 100% compensation that is available to him immediately. It would be made available as soon as his case is reviewed by the Land Office. The Land Office has assured me that they would expedite all such cases to ensure that compensation awards are paid expeditiously. I think that is the only solution.”
“Mr Speaker, Sir, in fact, we have considered all these factors that the Member has brought up and, as I said in my main answer, the solution to members who are affected by cash flow problems is to now opt to surrender the property to the Land Office and to collect the 100% compensation award which, as I said earlier on, the Land Office will expedite the processing of such claims and the affected land owner or property owner can get the full payment quickly and he can proceed to make arrangements for alternative premises, whether it is a shop or a home. But in so far as the CPF money that has been used for the purchase of this property is concerned, the present rule must apply because, as I said, not only will such owners face similar claims by the lending banks, they also have to ensure that they are able to meet their obligations to the banks that have loaned them the money. Even if the CPF Board does not want to make a claim, the banks may well proceed to make the same claim. So there is no assurance that this method will solve the problems of the affected property owner. The best solution is to opt to surrender the property, collect the full compensation and then make arrangement to buy an alternative property. In the interim, he can continue to occupy the premises and pay a small rental to the Land Office.”
“Mr Speaker, Sir, CPF savings are meant for a member's retirement needs. That is why all moneys withdrawn under the CPF housing schemes must be returned to the member's CPF account, together with any accrued interest, when the property is sold or transferred. The rationale is no different for properties acquired under the Land Acquisition Act. When the advance payment of compensation package was introduced, Government made a conscious decision not to interfere in the financing arrangements that affected land owners may have made for the acquired properties. This position is applied equally to all parties which have claims on the compensation awards, including the CPF Board and the lending banks. Those who face a cash flow problem already have a way out, which is to surrender the title and undertake to deliver vacant possession before they are paid the full 100% compensation award, part of which they can use as payment for an alternative property. Let me add that Land Office will expedite the processing and payment of the awards. Priority will be given to individual owners with genuine cash flow problems. If the land owners wish to, they can occupy the same property on rental until it is required by the authorities for development. In view of the above, my Ministry is unable to accede to the Member's request for CPF Board to refrain from restoring CPF moneys from the 20% advance compensation payment to CPF members.”
“Dr Lau Teik Soon asked the Minister for Labour whether, in view of the financial need to initiate the relocation process, the Central Provident Fund (CPF) Board will refrain from recovering CPF moneys from the 20% advance compensation payment of those affected by the compulsory acquisition of land for the North-East MRT line and comprehensive development and to do so only after they have received the remaining compensation.”
“Mr Speaker, Sir, when the CPF Investment Scheme was first introduced in 1986, CPF members were generally unfamiliar with investments in the stock market. Government decided to restrict CPF investments in shares to companies which meet the criteria in the Trustees Act. The intention was to exclude non-trustee companies which are smaller and without a track record. When the Investment Scheme was liberalised in 1993, non-trustee shares were allowed subject to some limits under the Basic Investment Scheme. As for the Enhanced Investment Scheme, no restrictions were placed on non-trustee shares. Companies which meet the trustee criteria have generally been stable. However, this cannot be taken to mean that investment in trustee stocks is guaranteed to be safe and sound. That is why CPF members are urged to exercise prudence and judgment in investing their CPF savings. By requiring CPF members to set aside their Minimum Sum and limiting them to investing 80% of the remaining balance, the CPF Board has helped to reduce members' exposure to risks in the stock market. In January 1997, the CPF Board will merge the Basic and Enhanced Investment Schemes into a single CPF Investment Scheme. Under this Scheme, eligible members will be able to invest up to a maximum of 20% of their available savings in non-trustee stocks. This was announced on 19th March 1996 when I informed this House of the merging of the Investment Schemes. CENTRAL PROVIDENT FUND BOARD (Recovery of CPF moneys from people affected by compulsory acquisition of land) 2.”
“Mr Speaker, Sir, I think we should look at the system in totality rather than on individual cases. The CPF Board's interest rate is already higher than what the banks normally pay out for savings in the savings accounts. On top of that, for the participants of the CPF investment scheme, they can always programme their withdrawal so that it is after the monthly interest computation period. In fact, the CPF Board notes that many of its members participating in the investment scheme tend to withdraw more money than they actually need to purchase shares. As a result, the Board had to institute a mechanism since last year to sweep back all the unused CPF savings that are deposited in the members' investment accounts and hence earning less interest than what they would earn if they had been left with the members' CPF accounts. On balance, I think the present system is fair. The CPF Board offers its members an interest rate which is already higher than what they would earn in the savings accounts in the commercial banks. 3-ROOM HDB FLAT DWELLERS (Review of rebates) 5. Dr Ow Chin Hock asked the Minister for Finance whether a review has been made on the rebates granted to 3-room Housing and Development Board flat dwellers, in terms of rental, service and conservancy charges as well as the rebates on public utilities bills; and, if so, whether he will inform the House of the outcome of the review.”
“Mr Speaker, Sir, the interest paid by the CPF Board for savings in the Ordinary and Medisave Accounts is computed on a monthly basis and the rate is pegged to the average of the savings and 12-month fixed deposit rates of the Big Four local banks. Although the CPF savings are readily withdrawable by CPF members for housing, medical and investment needs, not unlike deposits in savings accounts, the CPF interest rate has been consistently higher than the banks' savings rates. Furthermore, while banks may pay daily interest rates on savings deposits, they do not guarantee a minimum interest rate of 2.5%. Hence, during periods when the average of the savings and 12-month fixed deposit rates dips below 2.5%, CPF Board continues to pay members the guaranteed interest of 2.5%. This was the situation between July 1993 and December 1994. It is therefore not appropriate to compare the CPF Board's practice with that of banks. Sir, as the CPF Board's present interest formula and computation provide a guaranteed and reasonable rate of return to its members, it is unnecessary to review the basis for computing and crediting interest rates for CPF balances.”
“The foreign worker levy collected in the calendar year 1995, including those collected for foreign domestic workers, was $1.5 billion. My Ministry does not have the breakdown for the domestic worker levy. CERTIFICATES OF ENTITLEMENT 7. Mr Low Thia Khiang asked the Minister for Communications what were the revenues collected from Certificates of Entitlement for each of the years from 1992 to 1995.”
“In fact, my Ministry does permit the employer of a runaway or missing domestic worker to employ another domestic worker as long as he cancels the work permit of the missing worker. We are flexible in dealing with such cases. We do not forfeit the security bond immediately. We have, in fact, since November last year, extended the grace period from 14 days to one month after the cancellation of the missing worker's work permit for the employer to search for his missing worker before forfeiting the security deposit. Even after we have forfeited the security deposit, a refund can be considered if the missing worker is found within three months and the employer has assisted by furnishing information to my Ministry or the Immigration Department leading to the location and repatriation of the missing worker. As the numbers affected are small and the measures are effective in managing the foreign worker population, my Ministry will continue with the current practice of forfeiting the security deposit upon failure to repatriate the foreign worker.”
“Sir, the security bond is a safeguard to ensure that employers take responsibility for their foreign workers, including foreign domestic workers, and to repatriate them upon the termination or the expiry of their work permits. The security bond is forfeited if the employer fails to repatriate the foreign worker for whatever reason, including disappearances. This condition is made very clear to every applicant for a work permit. They enter into the bond with full knowledge of their responsibility. So without the security bond, employers may not exercise proper supervision over their foreign workers, resulting in more absconding workers who may end up working illegally elsewhere or creating more social problems. We could also create a different problem if we do away with the security bond, or if we take the approach that it could be waived. The problem is that we could encourage more unscrupulous employers to abandon their foreign workers under the guise of missing or runaway domestic workers. Sir, my Ministry's experience shows that the security bond has been effective in ensuring that foreign domestic workers are repatriated at the end of their period of employment in Singapore. As at December 1995, a cumulative total of 119 foreign domestic workers were reported missing by their employers, which is a very small number compared to the more than 80,000 domestic workers working here currently. My Ministry understands the unhappiness of employers who are faced with the problem of runaway domestic workers. I would however like to point out that the Member could have been mistaken in one respect, that is, the opportunity for an employer to recruit another domestic worker.”
“Sir, the section also carries out other projects to assist job seekers, such as special service to retrenched workers and part-time job seekers. As part of our efforts to encourage more economically inactive persons, ie, housewives and retirees, to rejoin the workforce, my Ministry is considering a revamp of the Job Placement Section. As I have mentioned this earlier on, we want to widen its role to seek ways to increase our labour force participation rate, especially women and older workers. We will look into promoting flexible and part-time work arrangements and seek the support of employers to adopt flexible and innovative working arrangements. We will expand the job matching service, counselling service for potential workers and look into the training needs to prepare people who have stopped working for many years to prepare them for re-entering the workforce. We hope that our efforts to promote better utilisation of labour resources by increasing the labour force participation rate and better job match will help to alleviate the problem of labour shortage.”
“Sir, the Job Placement Section in the Department of Work Permit and Employment assists the unemployed to find jobs expeditiously through the employment assistance programme. Under this programme, an employer can notify the section of his job vacancies by providing information on his requirement for the job and the terms of employment that he is willing to offer. When a job seeker registers with the section, he or she is matched with the available jobs. When there is a match, a referral is made to the relevant employer for an interview at a time which is convenient to both parties. Registrants who are not matched initially or who are not selected after the interview by the employer would have their names retained on the database for future matching with other job opportunities as and when they arise. Sir, a registrant's name will be removed after six months unless he or she re-registers. My Ministry also keeps a close tab on job referral results. The services provided for both job seeker and employers are free and voluntary. There is no restriction on the type of company or qualification of job seekers that can make use of the service. In 1995, a total of 2,676 persons registered for our service. This is a reflection of the tight labour market which means that most people who need jobs have minimal problems finding jobs by themselves. As at December 1995, there were 1,358 registrants in our data bank. In the same year, 955 companies made use of the service by providing notification of a total of 9,470 job vacancies, ie, during the year, there were 3 1/2 jobs per registrant on our unemployment register. We made 4,532 job referrals, excluding referrals for part-time employment, resulting in 532 placements.”
“Mr John De Payva also mentioned a point, which he has raised previously, that the law is silent on the right of workers to retrenchment benefits. Our present arrangement is to leave it to the unions to negotiate for such retrenchment benefits within the ambit of the collective agreement. I think it has worked well. If 75% of the employees are presently not unionised, and if they feel that they do not have the protection of a union behind them when it comes to negotiating retrenchment benefits, I would urge such workers to quickly seek union representation. I think we do not have anything in the law that prevents workers from getting such a union representation. And if the trade unions are already aware of this problem faced by 75% of the employees, then I think this is a very important point which should highlight to the non-unionised sector and this is a point which could help to persuade many non-unionised workers to join trade unions. 2.45 pm With regard to his earlier remark that the IAC does not recognise a collective agreement that has allowed executives to join a rank-and-file union, as I mentioned yesterday, there are already several house unions where employers have allowed their junior management and even executives to be members of these unions. It is a question of what specific provisions are contained in the collective agreement. Does it include collective bargaining for wages and such like within the terms of a collective agreement? Perhaps this is where the IAC would have difficulty if there is a provision whereby managerial staff are also involved in collective bargaining on wage matters.”
“We have a special conciliation service to look into such applications or appeals. If no agreement can be reached by way of conciliation, then the worker can ask for the case to be adjudicated by the Commissioner for Labour at the Labour Court. Sir, the Ministry's conciliation service is not confined to helping retrenched workers. They include conciliation of disputes on wage increase, terms and conditions of employment and disciplinary matters. We also provide advisory service on various employment laws such as the Employment Act and the Industrial Relations Act, and generally help to promote the adoption of good industrial relations practice both by employers and workers. As part of our preventive conciliation service, my Ministry has recently introduced a programme to visit trade unions and selected companies to promote harmonious industrial relations and to ensure that problems, if any, do not escalate into serious industrial disputes. The aim of all these efforts is to foster closer labour-management cooperation in different sectors of the economy, including the manufacturing sector. Sir, both Mr Zulkifli Mohammed and Mr John De Payva had brought up this subject of retrenchment benefits for older workers. This is a matter that is being studied by the tripartite committee on the raising of the retirement age, as I had reported to this House earlier. It is an important matter. It is an issue that has extensive ramifications. When we raise the retirement age beyond the present age of 60, how should we deal with this subject of retrenchment benefits? I think we should leave it to the committee, which is represented by both union leaders and employers, to discuss and find a solution to this very thorny problem.”
“The harmonious industrial relations climate is a precious economic asset built up by a strong NTUC. I take this opportunity to once again remind employers that they should appreciate the efforts of NTUC in fostering this harmonious industrial relations climate and they should continue to support and give encouragement to the labour movement. Sir, Dr Wong Kwei Cheong asked what service we offer to retrenched workers if the employers failed to provide them with sufficient retrenchment benefits. This point was also made by Mr John De Payva. Sir, in the case of unionised employees, their unions could invoke the relevant provisions under the Industrial Relations Act to request for my Ministry's intervention in order to pursue workers' claims for retrenchment benefits, ie, if the employer's offer of retrenchment benefits was not acceptable to the union or contrary to the agreed position in the collective agreement. If the issue on the retrenchment benefits could not be resolved through conciliation at my Ministry, it could then be referred to the Industrial Arbitration Court for arbitration. The decision of the Industrial Arbitration Court will be binding on the parties concerned. In the case of non-unionised employees, they could also enlist the help of my Ministry. Contrary to what Mr John De Payva has said that 75% of the employees are non-unionised and they are completely at the mercy of their employers when it comes to retrenchment benefits, my Ministry does in fact offer assistance to non-unionised employees when they have to make a claim for retrenchment benefits provided in their terms of employment. Non-unionised employees could refer their claims to my Ministry's Labour Relations Department.”
“Sir, Encik Othman asked whether I could provide some information on the number of industrial disputes that had been referred to my Ministry for conciliation and what is the nature of these disputes and how long does it take us to resolve them. In 1995, a total of 305 unionised disputes were referred to my Ministry for conciliation compared to 333 in 1994. So there is a slight reduction. These cases were referred by unions or employers to the Ministry for assistance when they could not resolve the issues on their own. Out of the 305 cases, 174 or 57% concerned wage increase and terms and conditions of services, 32 or 10.5% were on retrenchment benefits and 24 or 7.9% were on bonus and gratuity payment. The remaining 75 or 24.6% of the cases were on issues relating to workers' grievances and disciplinary proceedings. With the exception of three cases, which had to be referred to the Industrial Arbitration Court for arbitration, all the cases were resolved amicably at my Ministry. Sir, from the nature of the dispute, it can be seen that the main areas of concern of the unions and the management are on wage increase, terms and conditions of employment and retrenchment benefits. In general, each case will take some two to five meetings to settle, depending on the complexity of the case and the number of items that are the subject of the dispute between the union and the employers. The time taken to resolve the disputes ranged from three to eight weeks. With the majority of the cases of dispute being amicably resolved through conciliation and with only three cases having to be arbitrated, I am of the view that the present industrial relations climate in Singapore is very good. This has also been the assessment of foreign agencies such as BERI in assessing our labour force.”
“Furthermore, refurbishment and renovation may not lead, as I said earlier on, to lasting value enhancement. It would also be equally difficult to decide which is upgrading work and which is just part of cyclical repair and refurbishment. I would like to point out that in HDB estates, town councils have to set aside part of the service and conservancy charges to meet cyclical R&R work, as the hon. Member who runs a town council is well aware of that. CPF savings cannot be used for such cyclical R&R work. Private property owners are mostly in the upper income group and they have less difficulty meeting renovation expenses from their discretionary savings.”
“Mr Leong Horn Kee asked whether CPF savings could be used to upgrade private apartments and condominiums. Dr John Chen asked whether it could be used for housing renovation. Sir, in considering whether CPF can be used for upgrading or renovation, we must not lose sight of the primary objective of CPF, which is to provide for members' retirement needs. Renovations, on the other hand, are consumptive in nature. And decisions on specific renovation works are very often a matter of taste, which cannot be presumed to automatically result in any lasting increase in the value of a property. Therefore, my Ministry has always disallowed the use of CPF savings for renovations or refurbishment. This applies both to HDB and to private properties. An exception was made for the nation-wide HDB Main Upgrading Programme as it is a Government-initiated and executed programme. With HDB's involvement, the items and cost of improvements could be standardised and the upgrading programme would be properly managed. In this way, it is likely that the market value of the flats will be increased with improvements, particularly when the entire block and precinct are given a facelift. This is especially so when the Government will be subsidising most of the cost of the Main Upgrading Programme. There is therefore very little risk that the home owner will not be able to recover his share of the upgrading cost. In the case of privately initiated refurbishment or upgrading, it does not have the element of Government subsidy. The amount of CPF savings that has to be withdrawn could be quite large. This upgrading or renovation works could also be done at more frequent intervals. Withdrawal of CPF for such purpose will result in more CPF members not being able to meet the revised Minimum Sum scheme.”
“Because, if I remember correctly, only last Monday, by way of a Question for Oral Answer, he asked whether we would allow CPF members to use their Special Account savings in order to meet payments for their housing mortgages, implying that there is inadequate saving in the member's Ordinary Account. So if we reduce the CPF contribution rate, would the situation not be aggravated? Sir, a reduction in CPF contribution rate would also adversely affect many people who have already bought their homes. Currently, about 61,000 CPF members use more than 90% of their monthly contribution to the Ordinary Account to pay their housing mortgage loans. A reduction in the CPF contribution rate would require these members to use their cash savings to service their housing loans. This is precisely the position that Mr Chiam was concerned about in his Question for Oral Answer. Furthermore, CPF members consider the 40% CPF contribution as part of their wages. Any cut in the CPF contribution rate will be seen as a wage cut. Earlier on, we were discussing the Retirement Age Act and Members would have heard how Mr Zulkifli pointed out that unions are in fact concerned with employers' call for a cut in CPF. Even if employers pass on their savings to employees as additional take-home pay, the employees will still have to pay additional income taxes on higher take-home pay. So we should not reduce the 40% CPF contribution rate, because this 40% rate is required to meet all the objectives of the CPF scheme. Mr Speaker, Sir, with your indulgence, I will proceed to take up the points raised by Mr Leong Horn Kee and Dr John Chen. This is not a new request. It has been raised on several occasions.”