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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“Mr Speaker, Sir, I just said in my answer that NWC has recommended that wage increase must be linked to company and individual performance. Therefore, if a company performs exceptionally well and chooses to give its workers a big bonus, I think the Ministry will not object to it.”
“Mr Speaker, Sir, Members may recall that the Economic Committee formed in 1985 had recommended that our wage systems should be made more flexible to cope with both good and bad years. In response to this, the National Wages Council (NWC) had, in 1986, recommended that companies should implement flexible wage systems. It also recommended that for Singapore to remain competitive, wage increase must always lag behind productivity growth and that it should be closely linked to company and individual performance. Implementation of flexible wage systems began in 1987. Since then, Sir, we have made significant progress in implementing flexible wage systems. The unionised sector, in particular, has taken the lead with more than 80% of companies having implemented some form of flexible wage systems. In the non-unionised sector, the extent of implementation has also reached 70%. The NWC envisaged a phasing-in period of five years for companies to develop their flexible wage systems. We are at the end of the 5-year phasing-in period. It would be timely to carry out a review to study whether the objectives of the flexible wage system have been achieved, and to recommend improvements to the system. For this purpose, my Ministry will be requesting the NWC to set up a tripartite Review Committee when the NWC is convened early next year.”
“Mr Speaker, the answer is yes. COLEX COMPOST PLANT AT OLD TOH TUCK ROAD (Measures to abate stench) The following Question stood in the name of Dr Wang Kai Yuen - 16. To ask the Minister for the Environment what steps are being taken by his Ministry to abate the stench emanating from the Colex Compost Plant at Toh Tuck Road.”
“Mr Speaker, Sir, I agree with the sentiments expressed by Dr Soin on the need to show compassion and concern for a father who wants to take leave from work to look after a sick child, in the case where the mother is unable to do so. I would ask the Minister for Finance, as the Public Service Department comes under his portfolio, to look into this suggestion. CRUISE SHIPS (Measures to ensure safety) The following Question stood in the name of Dr Wang Kai Yuen - 11. To ask the Minister for Communications what measures are or will be taken to ensure the safety of cruise ships which pick up passengers from Singapore.”
“Mr Speaker, Sir, while the civil service does grant full-pay unrecorded leave to a female employee to look after sick children below the age of six, Government does not intend to introduce legislation to compel all employers to offer similar benefits to their employees. Employees are already entitled to various leave benefits under the Employment Act. Some companies provide leave benefits beyond the minimum spelt out by the Act, such as compassionate leave. We should leave the private sector to work out suitable childcare leave scheme for each company.”
“The foreign worker levy collected in the calender year 1991 was $880 million. The amount collected for the first 4 months of 1992 was $325 million. On this basis, I estimate the amount to be collected for the whole of 1992 would be about $975 million. FINES COLLECTED BY THE COURTS, GOVERNMENT DEPARTMENTS AND STATUTORY BOARDS UNDER THE MINISTRY OF LAW 20. Mr Ling How Doong asked the Minister for Law what was (i) the total amount of fines collected by the Courts and (ii) the amount collected by the Government departments and statutory boards under his Ministry by way of composition offered, for the years 1990, 1991 and 1992 (up to June).”
“Mr Speaker, Sir, I would like to thank Mr Chiam for raising this point. In fact, he is correct. We are only extending this contribution to the CPF by the self-employed for Medisave at this present moment. In fact, we would like to encourage all self-employed persons to contribute to the other accounts in the CPF, ie, Ordinary Account and the Special Account. I am very pleased that Mr Chiam supports this move. In due course, perhaps we can take up his suggestion and move in the direction to extend the entire CPF scheme to all self-employed persons. Anyway, at the present moment, CPF does encourage all self-employed persons to contribute to the CPF as any other employee. It is voluntary. And in order to encourage them, CPF actually provides all self-employed persons who make contribution to their CPF account tax exemption on CPF contributions up to a limit of, I believe, about $12,800 a year. So this is a gesture to ensure that the self-employed are not left out of the CPF scheme and they are also able to save from their current income to put aside money which they will need for their old age. 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. RECLAMATION (TUAS)”
“The Government has no other intention of allowing CPF to be used for purposes other than what has already been stated, which is for retirement, for housing and for medical expenses.”
“In effect, HDB is saying that it is prepared to advance a second loan to the home owner to enable the owner to take part in the upgrading exercise, and that the payment of the loan would be deferred until the flat is sold. HDB will, of course, have to charge an appropriate interest on such loan. With this offer by HDB, there is no need for CPF members to use their savings to top up their parent's CPF account in order to enable them to meet their share of the upgrading cost. Sir, Mr Chiam has said that the Government is straying from the original purpose of CPF by requiring the self-employed to contribute to Medisave. Medisave is not a new scheme. Medisave has been in existence since 1984. It is very much part and parcel of the original concept of the CPF Act to enable all wage earners, all workers, to put aside some of their income in anticipation of their future requirements, whether it is just retirement expenses, living expenses, but also to meet their future medical expenses. Therefore, extending the Medisave scheme to include the self-employed is very much in line with the objectives of the CPF scheme. The extension of the CPF scheme for home ownership and to allow members to use their balance to invest in stocks, shares or gold is again part of the concept of allowing Singaporeans to increase their asset value. They are allowed to use their CPF savings to build up their assets, so that in future when they retire and when they are not working, they will have sufficient savings to provide them with income to meet their living expenses. I do not think there is a need for me to answer the point about Government extending the use of CPF, because it is highly speculative.”
“Mr Speaker, Sir, I wish to thank Mr Goh Chee Wee, Chairman of the GPC for Labour, for his support on the extension of the Medisave scheme to the self-employed. He asked whether a CPF member would be allowed to use his CPF saving to pay for the owner's share of the upgrading cost for his parent's flat. Mr Goh mentioned that there is already a Topping-Up Scheme for the children to top up their parents' CPF accounts. I would like to point out that the Topping-Up Scheme is only for the purpose of establishing the minimum sum for their parents' accounts. In other words, at the point of retirement, if their parents do not have sufficient balances in their CPF accounts to maintain a minimum sum, the children can use their CPF savings or cash to top up their parents' CPF accounts to the minimum sum level. In most cases, the parents are already owners of HDB flats and therefore they would be able to meet the Minimum Sum Scheme by pledging their HDB flats. Therefore, the Topping-Up Scheme is not applicable in this case. As to whether we could allow members to use their CPF to top up their parents' CPF accounts to pay for their share of the upgrading cost, my feeling is that this is not necessary because the Minister for National Development, when announcing the HDB upgrading programme, also offered to assist the older home owners who lack CPF or cash savings to pay for their share of the upgrading cost. The Minister then said that the HDB will proceed with the upgrading for such people who may not have the cash or adequate CPF to pay for their share. But HDB will impose a condition that the owner must reimburse HDB when the flat is subsequently sold.”
“In practice, the licensing authorities will require the self-employed to show proof of their Medisave contributions before licences are issued or renewed. Clause 11(a) of the Bill empowers the Minister to make regulations to provide for the appointment of agents for the assessment, collection and recovery of CPF contributions. For instance, the Inland Revenue Department could be appointed under this provision to assess and, if necessary, collect CPF contributions for the self-employed as an agent of the CPF Board. Sir, the Government is now embarking on an upgrading programme for older HDB flats. Upgrading will enhance the value of older HDB flats. It is, therefore, in the long-term interest of owners of such HDB flats to be allowed to use their CPF savings to pay for their share of the upgrading cost. Clause 11(c) of the Bill empowers the Minister to make regulations to allow CPF members to withdraw CPF savings for this purpose. Finally, Sir, the Ministry is also taking the opportunity to amend section 11 of the Act to strengthen the existing financial and auditing provisions as requested by the Auditor-General. These new provisions, as well as the existing ones, are in the new Second Schedule created under clause 7 of the Bill. Sir, HDB, URA and TAS have similar provisions in their Acts. Sir, I beg to move. Question proposed.”
“The interest charged will be credited into the Medisave account of the self-employed to make up for the loss in interest that would have accrued had he contributed his Medisave payment on time. Clause 8(b) provides for the crediting of contributions made by the self-employed to the Medisave, Ordinary or Special Account as the Minister may direct. Sir, such contributions will initially be channelled entirely to the Medisave account. However, should the amount accumulated in the Medisave account exceed the prescribed limit (which is $15,000 currently), the excess will be channelled to the Ordinary Account, as is the practice for employees. Sir, clause 8(c) is a new provision. At present, there is a prescribed upper limit of $15,000 for each CPF member's Medisave, and I have mentioned this earlier. Upon reaching this limit, monthly contributions are credited to his Ordinary Account. Clause 8(c) will enable such overflows into the Ordinary Account to be transferred back to the Medisave account. However, applications for such transfer are subject to approval by the Minister. This provision is intended to help those CPF members who have exhausted their Medisave savings after reaching the prescribed limit, but continue to have large balances in their Ordinary Accounts. Sir, many of the self-employed require licensing by the various authorities to carry out their trade or business or to practise their profession or vocation. To ensure that such self-employed persons do contribute to Medisave, clause 9 of the Bill gives the licensing authorities the power to impose contribution to Medisave by the self-employed as a condition for the granting or renewal of any licence, certificate or permit.”
“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." Sir, the Bill proposes additional provisions for the collection of compulsory Medisave contributions from self-employed persons and the use of CPF savings by CPF members to pay for their share of the cost under the HDB upgrading programme. The Bill also seeks to provide for the appointment of a Deputy Chairman for the CPF Board who, in the absence of the Chairman, will carry out his duties. Mr Speaker, Sir, as announced by the Minister for Health during the 1992 Budget Debate, self-employed persons will be required to contribute to Medisave. This will enable self-employed to provide for their hospitalisation needs. It is in the interests of the self-employed to save in anticipation of their future needs. Sir, from 1st July 1992, all self-employed earning more than $200 per month (or $2,400 per year) were required, under section 77(1)(e) of the existing CPF Act, to contribute 3% of their earned income into their Medisave accounts. The rate of contribution will increase to 4% in January 1994 and thereafter by 1% per year until it reaches the same rate of Medisave contribution as for employees. Sir, the new provisions to be included in the CPF Act for the collection of Medisave from the self-employed are in clauses 4, 5, 8, 9 and 11. I shall elaborate on these clauses. Clause 4 amends section 5 of the Act to extend the investigation powers of the CPF Board's inspectors to cover the self-employed. Clause 5 of the Bill provides for the charging of interest on late payment of CPF contribution by the self-employed.”
“Mr Speaker, I did say earlier on that, at the end of last year, there were only 556 members left in the Fund, and for any unclaimed funds, the administrator of the Redundancy Payments Fund will mount a special exercise to locate and to pay all the members the amount that is due to them. If the member has passed away in the meantime, then the money will be paid to the nominees. However, if the member has no nominees, or he is not traceable, the money that is standing in his account will be transferred to the Public Trustees to be disposed of in accordance with the law. 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. CENTRAL PROVIDENT FUND (AMENDMENT NO. 2) BILL Order for Second Reading read. 2.18 pm”
“Mr Speaker, Sir, the question is whether the surpluses in the RPF should be distributed to the existing members. Sir, as I said earlier on, the surplus came about because over the years the rate of return earned from investment of the Fund was consistently higher than the interest rate of 5.25% provided for under the Redundancy Payments Fund Act. Most of the investments were in the form of government bonds. In 1968 when Government fixed the interest rate of 5.25%, the prevailing interest rate ranged from 5.5% to 6%. All the payments from the RPF were also exempted from income tax. Therefore, the 5.25% guaranteed under the Redundancy Payments Fund was significantly better than the prevailing interest rate in 1968. Furthermore, the Government also undertook to pay this amount of interest even if the revenue from the principal in the Fund amounted to less than 5.25%. So the 5.25% is a guaranteed return on the money held in trust for the members of the Fund. Hence, all members have been adequately compensated and transfer of the surplus to the Workers' Fund is fair and equitable. Furthermore, the Workers' Fund will be available to help the workers who have been unsuccessful, for a variety of reasons, in their claims for workmen's compensation.”
“Government has decided that the citizen members be paid their balances in full before dissolution of the Fund. This is provided for in clause 4 of the Bill. As for the non-citizen members, they are provided for in clause 5 of the Bill. Non-citizen members who are already residing abroad, or about to leave Singapore permanently, will be given a final opportunity to withdraw the balance due to them. If they fail to do so, the balance will be transferred to their Medisave accounts. The clause also provides for the balances of non-citizen members, who reside in Singapore, to be transferred to their Medisave accounts. Sir, clause 9 of the Bill provides for the transfer of the remaining balances in the RPF, including accumulated surplus, to the Workers' Fund established under the Workmen's Compensation Act. Amongst other uses, the Workers' Fund provides financial assistance to injured workers who have failed to secure workmen's compensation. Finally, Sir, clause 11 of the Bill seeks to repeal the RPF Act. Sir, I beg to move. Question proposed.”
“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." The Bill seeks to dissolve the Redundancy Payments Fund (RPF). This Fund was established in March 1968 under the Redundancy Payments Fund Act to administer the retrenchment benefits paid to employees affected by the withdrawal of the British forces from Singapore. Under the Act, all such benefits must be paid into an account in the RPF. If the retrenched employee is a citizen, he can withdraw monthly amounts from this account until it is exhausted. However, if he is a non-citizen, his monthly payments stop when two-thirds of the original balance are exhausted. The remaining one-third is paid to him only when he leaves Singapore permanently or when he acquires Singapore citizenship. There were originally a total of about 25,000 members in the Fund. As at the end of last year, only 556 members were left. Eighty-nine of these are citizens, of whom three are still receiving monthly payments from the Fund. The remaining 467 are non-citizens who will receive their one-third residual balances when they leave Singapore permanently or when they acquire Singapore citizenship. Sir, with only three citizen members still receiving their monthly payments, the RPF is now practically dormant. The Government has decided to dissolve the Fund as it has outlived its purpose. As at the end of last year, the Fund has a balance of $4.4 million, of which $1.1 million belongs to the existing 556 members, while the remaining amount is surplus. The surplus came about because investments of the Fund between 1968 and 1986 were earning higher returns than the interest rate of 5.25% per annum paid to members in accordance with the Act.”
“Ghani asked the Minister for Communications (a) what are the preventive measures taken by the Singapore Bus Service (1978) Ltd to protect persons from being knocked down by SBS buses at bus stops and interchanges and (b) how many persons were knocked down by SBS buses at bus stops or interchanges since 1990.”
“Mr Speaker, Sir, the CPF contribution rate of 40% is based on a member's old-age, housing and health requirements. Most CPF members have used part of their savings to purchase HDB flats or private residential properties. They also use the monthly CPF contributions to meet their mortgage repayments. The result is that more than half of the CPF members have net balances of less than $22,000. It is therefore not feasible to allow CPF members to withdraw their savings to finance repayment of housing loans taken by their relatives, or to pay conservancy charges and living expenses incurred by their relatives. Sir, on medical expenses, the current Medisave Scheme allows the CPF member to use his Medisave to pay for the hospitalisation expenses of his dependants which include his spouse, children, parents and grandparents, provided their grandparents are either Singapore citizens or permanent residents. Extending this to include other relatives will only make it more difficult for the member to save for hospitalisation needs in his old age. Essentially, the CPF concept is based on family self-reliance. Each employee should save to meet his future requirements. Sir, the House will today consider extending this concept to the self-employed by requiring them to contribute to Medisave. This is far better than to encourage a system where personal old-age savings are being used prematurely to pay for relatives' living expenses. BUS STOPS AND INTERCHANGES (Measures to prevent accidents) 10. Encik Harun bin A.”
“Mr Speaker, Sir, I do not quite understand Mr Chiam's question. If he is asking a question on the review of the criteria for permanent residents, may I suggest that he take it up with the Minister for Home Affairs. FOREIGNERS MARRYING SINGAPOREANS The following Question stood in the name of Dr Tan Cheng Bock - 6. To ask the Minister for Labour whether he will consider allowing foreigners, who had registered to work in Singapore but who, for some reason, have not taken up employment here, to marry Singaporeans.”
“Mr Speaker, Sir, I have said in my answer that we will be prepared to consider and approve applications from all Singaporeans who meet the same criteria for Hong Kong residents. The criteria for Hong Kong residents have been announced previously, ie, people with 5 'O' levels or equivalent trade qualifications or certificates or people with an income of $1,500 per month for the past five years. These are some of the basic criteria. But for the vast majority of work permit holders in Singapore, a large number of them are unskilled workers and they may not be able to meet these criteria. Then their applications are considered on other basis, ie, whether they have made the effort to upgrade their skills by attending skills training and taking a trade test which will demonstrate that they are able to look after themselves and that they can contribute economically to Singapore after they have been allowed to settle down here.”
“Mr Speaker, Sir, in the past two years, the success rate of applications made by Singaporeans to marry work permit holders has been about 70%. As for the rules governing the approval of marriage applications, I am pleased to inform the Member that we do take into consideration the work permit holder's family roots here and whether he has upgraded his education or skills. Members may be interested to know that, since 1989, my Ministry has adjusted the marriage criteria to be consistent with the relaxation in the immigration policy for Hong Kong residents. So long as Singaporeans who wish to marry foreign spouses meet the same criteria, we will approve them on the same basis as the Hong Kong immigrants.”
“Mr Speaker, Sir, my Ministry has reviewed its policy which requires Singapore permanent residents who earn not more than $1,500 per month to obtain work permits. I have decided that Singapore permanent residents will not have to apply for work permits even if they earn not more than $1,500 per month. My Ministry has simplified the employment procedures because it is in our interest to ensure that these Singapore permanent residents are economically active. The revision is also consistent with the practice of the Ministry of Home Affairs which does not require Singapore permanent residents who earn more than $1,500 per month to apply for employment passes. Furthermore, it will reduce inconvenience for employers and Singapore permanent residents. SINGAPOREANS MARRYING WORK PERMIT HOLDERS 5. Encik Othman bin Haron Eusofe asked the Minister for Labour (a) what is the current success rate of applications made by Singaporeans to marry work permit holders and (b) whether he will consider reviewing the rules to enable applicants to marry work permit holders, who have family members who are Singapore citizens or who have upgraded their education or skills, to be more favourably considered.”
“In fact, out of the total pool of foreign workers in the economy, excluding foreign maids, three quarters of these foreign workers are employed by our local companies. Mr Chng might recall that the foreign workers policy was liberalised in March 1990 to allow companies in the service sector to employ foreign workers from the traditional source. Initially, we only allowed them to employ up to 10% of their local workforce. Following appeals from Members of this House, my Ministry raised the dependency ceiling to 20% in November 1990. We are, in fact, quite flexible in applying this 20% dependency ceiling for small and medium-sized businesses, particularly for those which have less than 10 workers. As part of the Retail Sector Development Plan announced by the Senior Minister of State for Trade and Industry, Mr Lim Boon Heng, on 2nd March, my Ministry has further allowed small companies in the service sector, mainly local companies, to hire one foreign worker as long as they employ two full-time local workers. This is equivalent to a dependency ceiling of 33%. In other words, small companies are allowed a higher dependency ceiling for foreign workers than larger companies. As I have just explained, there is no truth to this perception that the Government is dealing with SMEs in an unfair manner in so far as the allocation of foreign workers is concerned.”
“This will be implemented on 1st July this year. The marine industry, by and large, accepts the need for control on the foreign workforce. In fact, this dependency ceiling of one local worker to two foreign workers was arrived at as a result of a survey. The survey was done with input and assistance from the Association of Singapore Marine Industry (ASMI). The Association provided the Ministry with names of resident, common and irregular contractors of 15 shipyards. So my Ministry conducted a survey among these 15 shipyards to ascertain the manpower profile of the industry. We found that the majority of the marine companies, in particular, most of the shipyards and their resident, regular contractors, will be able to operate within this dependency ratio of one local worker to two foreign workers. Since the survey was conducted during a boom period, the result should be a fairly realistic dependency ratio, not one which is unreasonably low and likely to curtail the marine industry's ability to compete or to adjust to business demand. I would like to urge the Member and those in the industry to allow some time for the control mechanism to work. If, in the light of experience, there are operational problems, my Ministry will be prepared to discuss with the industry's representatives to make refinements to the scheme. Sir, the Member has also raised another question on whether there is this impression that the Government is only keen to assist big companies in its allocation of foreign workers. It is not true that Government is only assisting big companies in allocating its foreign workers. We also assist local companies, our home grown SMEs, for instance.”
“The Ministry has also, as I mentioned earlier on, revised its regulations so that child care centres can now take in more children. This means that the services should become more affordable to working mothers. And I believe that in the matter of promoting, encouraging and developing child care services, the Ministry of Community Development is in the best position to help out the private sector. 3.45 pm Sir, in conclusion, if we do not control the influx of foreign maids and adjust the levy from time to time, the tendency is for more and more people to employ maids for a variety of reasons or needs, as they put it. In the longer term, this could lead to the presence of hundreds of thousands of maids in Singapore. We are also likely to have large numbers of foreign workers in the economic sector. So we are really talking about having several, three to four hundred thousand, foreigners working and living here. Such a large resident population of mostly unskilled foreigners is likely to create all kinds of problems, including some which we are not able to anticipate today. Sir, I do not believe that it is in the interest of Singapore for us to take a hands-off approach and to leave the foreign maid population to grow according to demand. Sir, Mr Chng has also raised another question on the introduction of a dependency ceiling for workers in the marine industry. At the present moment, the marine industry does not have to work under a dependency ratio for the foreign workers. As the industry is booming and the demand for foreign workers is growing very rapidly, we feel that there is a need to regulate the influx of foreign workers to this sector. Hence, my Ministry recently announced the dependency ratio of one local worker to two foreign workers for the marine industry.”
“Without similar control over domestic maids, we will see more and more unskilled workers joining the workforce. This will have long-term implications on our efforts to move away from labour-intensive and low technology industries. Our effort to upgrade the economy and enhance our competitiveness with higher skilled and more productive workers is the only way for Singaporeans to improve their income and upgrade their standard of living. We simply cannot compete successfully in labour-intensive industry because our population is too small and imported labour may not always be available. Sir, whichever set of need criteria used would cause unhappiness to some people who feel that their need has not been adequately considered. Hence, the levy as a pricing mechanism is fairer, far more effective, and less likely to be subjected to abuse. It is also a way to ensure that foreign maids entering Singapore will help to increase the number of skilled women rejoining the workforce. However, not all working mothers need maids. As I have said during the Budget debate, less than half of the working mothers with children below the age of six are employing foreign maids. This confirms that there are other solutions to the problem of combining home with work. This is where I agree with Mr Chng Hee Kok that there is a need to provide more comprehensive child care services. If we want more married women to work and have children, child care services should be improved and made more accessible. In this regard, I understand the Ministry of Community Development has already put in much effort, resulting in more than a three-fold increase in child care places in the last five years.”
“Furthermore, different families have different needs. Some are apparently quite simple at first glance, such as that of a working mother with young children. But then even such apparently straightforward criterion has its pitfalls. We will have to define what are young children. Should the cut-off point be at two years when they can be admitted to a child care centre? Should it be at six years when they are ready to go to primary school? Or should it be at 12 years when they have completed their primary education? Who is to be accorded more points? The three-year old or the six-year old? Is the Ministry in the best position to determine which group of children has greater need for a foreign maid to look after them, to watch over them, while their parents are at work? What about people whose children are older and they have aged parents living with them? Not all aged parents are incapable of looking after themselves. Some are still hale and hearty and indeed can contribute to looking after the household of the working mothers. Again, is the Ministry in the best position to assess whether aged parents of the applicant are in need of assistance of a foreign maid? Sir, the need for foreign maid is a continuous spectrum. Wherever we draw the line will mean depriving some people of the service of domestic help which they want and which they can afford. Furthermore, will we be doing the right thing economically by allocating maids on the basis of need? We are controlling the entry of unskilled foreign workers in the manufacturing, service and construction sectors. The levy for an unskilled worker in the manufacturing or service sector is $300 per month. For unskilled worker in the construction industry, it will be $400 by 1st July this year.”
“Thank you, Sir, for making the time available. Sir, I want to thank the Members for pointing out that generally people do not disagree with the need to control the inflow of foreign maids into Singapore. The question is whether there are better alternatives to the control that we have been using up to now. Sir, the foreign domestic servants scheme was introduced in 1978. Before the scheme was introduced, there were hardly any foreign maids in Singapore. The number was probably several thousands, mainly from traditional sources. Within a short span of 14 years, the number of foreign maids has grown to more than 65,000, almost one maid in every 10 households. Maids from some countries are prepared to work for as low as $150 only, and at this rate, without Government intervention, several hundred thousand families in Singapore could easily afford to employ maids. Will Singaporeans be better off with several hundred thousand foreigners living in our homes, and on our streets during their days off? I have no doubt that all kinds of problems will emerge, by which time it would be too late and too difficult for us to change our habit. What are the options that we have available to regulate the influx of foreign maids? I have explained during the Budget debate why my Ministry is unable to replace the levy system with a system based on a family's need, for instance, and such needs could be the number of children, the presence of aged parents in the family. I appreciate that the suggestion to look into the needs of the employer is very often well-intentioned. The problem with such an approach is that need is very subjective. Each person is naturally inclined to see his own needs as being more pressing and more important than somebody else's needs.”
“Sir, since the case in the High Court in 1989 resulting in the Court's decision that retrenchment benefit is not payable in a winding up situation, several MPs have expressed their concern that workers' interests are inadequately protected. Let me reassure the Member for Marine Parade GRC that my Ministry shares this concern. And to address this problem, we will be amending the relevant legislations soon. My Ministry's approach is to make retrenchment benefit a statutory payment in a winding up situation. This means that retrenchment benefit together with salaries and wages will be treated as priority claims. The intention is to provide protection for as many categories of employees as possible. Also, where the quantum of retrenchment benefit is not spelt out in the collective agreement or terms and conditions of employment, we will have to empower the Commissioner for Labour to decide on the quantum. Details of the amendment will be made known to Members at a later date.”
“When we come across such cases in our conciliation work, we find that both parties are usually quite amenable to our suggestions and they have always been able to resolve their disputes amicably. So far, no dispute involving information sharing affecting the terms and conditions of employment has to be referred to the Industrial Arbitration Court for arbitration. In conclusion, greater information sharing will help to facilitate labour-management negotiation and bring about a more speedy and amicable settlement of disputes. It will also help to enhance mutual trust and confidence which is essential to the promotion of good labour-management relations in Singapore. On the question of raising the ceiling of $1,250, as spelt out in the Employment Act, as the Member has indicated, the current ceiling of $1,250 for non-workman employee was established in 1980. Last year, this ceiling was providing coverage for about 73% of all employees, according to the labour force survey. It has been 10 years since the ceiling was last revised. I have therefore asked my Ministry to review the ceiling to ensure that workmen and the other lower wage employees should be adequately protected. In such a review, we will have to bear in mind the impact on labour cost and try to strike a balance.”
“Sir, the Member for Marine Parade GRC has asked what would the Government do to encourage companies to be more open in information sharing with their employees. Sir, I agree with the Member for Marine Parade GRC that companies should be more prepared to share relevant information with their workforce. Sir, in recent years, with the introduction of the flexi-wage system, employers, by and large, are more willing to share information relating to the company's performance and the challenges that the company has to face. According to a recent survey, 82% of the unionised companies and 69% of the non-unionised companies have adopted a flexible wage system or some form of variable payment linked to a company's performance. With flexible wage agreements, the amount of bonus to be paid to workers would depend on the profitability of a company. Hence, these companies are obliged to share information relating to their performance with their union and workers at least once a year. Sir, the more enlightened employers are also periodically keeping their union leaders and workers informed of the company's performance and prospects and, by doing so, these companies have helped to strengthen labour-management relationship. On the other hand, I note that there are still some companies which are not prepared to share information with their workers. These are mainly confined to companies which, for whatever reasons, have not yet adopted the flexible wage scheme. These companies should seriously consider implementing the flexible wage system and share information with their unions and employees. Of the 323 disputes which were referred to the Ministry for conciliation in 1991, there were only a few incidents where employers were unwilling to disclose information as requested by the unions.”
“Sir, the CPF for education scheme, as it is designed at the moment, is only for people to pay for the fees for full-time education at our local tertiary institutions. The CPF for education scheme is really meant for full-time students who have no income of their own. Therefore, Government has allowed parents to borrow from their own CPF savings to meet their children's educational expenses. Under the scheme, the use of CPF savings for part-time studies is not allowed, and this is because part-time students are usually working adults who have incomes of their own. And being wage-earners, they will also have other savings besides CPF savings. Students of the proposed Open University will be no different from today's part-time students. OU students will also be working adults studying part time. They will be able to pay for the course fees on their own out of their own cash savings. Sir, currently, there are thousands of part-time students in various institutions which are offering all kinds of continuing education. All these part-time students have been able to pay for their course fees without resorting to their CPF savings. In fact, if the proposed OU follows the practice of the British Open University, the students need not complete the course within a specified time period. This means that the student would have the flexibility of taking the course in parts, as and when he has saved up enough money to pay for the fees, which means that it will be easier for people to work, save and study at the same time.”
“In some instances, CPF members can be withdrawing close to 200% of the posted price of the flat, that is, by the time they complete paying up for the flat. This is already very generous and to extend the scheme as suggested by the Member would be far more generous than intended and it could lead to the depletion of CPF members' savings which are needed for their old age. 2.45 pm”
“A property with 55 years of lease left is likely to have some market value for resale or, if not, at least for rental. This means that if the CPF member has no other savings and has pledged his property under the minimum sum scheme, he is still in possession of a valuable asset. So the question is whether 75 years is being too conservative. Would a less stringent cut-off point be equally effective in safeguarding the retirement saving of an owner of a leasehold property? This question must be answered before we make any changes. My Ministry will look into whether the unexpired lease period can be reduced while not compromising the objective of old age security of CPF members. Sir, the Member has also proposed several modifications to the CPF scheme for the purchase of HDB flats. One of his suggestions is that we raise the limit of the 140% posted price for HDB resale flat. Under the present rule, the 140% of posted price, being the upper limit for CPF withdrawal, is applicable in the case of those who want to draw a whole lump sum from his CPF savings to buy a resale flat which could cost more than 140% of the posted price. In this case, the CPF member would then have to, as Mr Heng has suggested, borrow from other sources to top up his savings to purchase the flat. However, I would like to point out that for a member who has insufficient savings to pay for the whole purchase price, or up to 140% of the posted price for the HDB flat that he intends to buy, he will be able to use the CPF exceeding the 140% limit to pay for his flat. The reason is that in the case of the HDB flat scheme, members are allowed to use their future CPF monthly contributions to pay for the loan as well as the interest.”
“Sir, I would ask the Board to take up the Member's suggestion and to examine whether the reminder in the half-yearly statement of account can be made more prominent. Sir, I next turn to Mr Heng Chiang Meng's question. He felt that the CPF Board has been too protective in disallowing the purchase of leasehold properties with less than 75 years lease by borrowing from their CPF savings. The primary objective of CPF is to ensure that workers have sufficient savings for their old age. Most members have, in fact, used up a large proportion of their savings for purchasing residential properties. The value of the CPF saving invested in such property must, therefore, be protected. We must help to preserve the value. To ensure that CPF savings are available for old age, a private property bought with CPF money must retain its value when it has to be sold to finance a member's old age requirement. If we allow a CPF member aged 35 years to invest his CPF saving in a property with only 20 years of residual lease, it will have no value by the time he reaches the age of 55. However, as he is likely, as the Member said, to live to the age of 70 or more, he will still need a roof over his head and savings to cover his expenses for the next 20 years. So the question is: will such a person still has sufficient CPF saving to last the next 20 years or so? Sir, it is for this reason that the CPF Board does not allow CPF savings to be invested in private properties with less than 75 years of unexpired lease. If we use the same example of the person aged 35 buying a property with a residual lease of 75 years, he would still have 55 years of residual lease when he retires at the age of 55.”
“Sir, the Member for Mountbatten, Mr Eugene Yap, has referred to a case of a CPF member's relative having difficulty claiming the member's savings with the CPF Board. I think the case has been adequately explained in the newspaper. Suffice for me to say here that the member, when he was alive, did make a nomination to CPF Board and, therefore, the Board has to abide by the nomination. The Board is in the process of locating the nominees and will distribute the savings in the deceased member's account to the nominees once they are located. Sir, Mr Eugene Yap also raised the point about asking the Board to remind members about making nominations. In fact, the Board has made it a practice to send reminders to all CPF members to update their nomination. The Board also sends to each new member a set of nomination form as soon as he opens an account. In recent years, a reminder of the nomination is also inserted in the half-yearly statement that each CPF member receives from the Board. In the case of older members, those above the age of 55, the Board has also made it a point to remind them to nominate a beneficiary by sending them special reminders. Last year, the Board sent out about 8,000 such reminders. Members are also reminded that they should make new nomination after their marriage as nomination made before a marriage would be invalidated. In 1991, the Board sent more than 3,000 nomination forms to members whose previous nominations were nullified by marriage. Sir, CPF members are also urged to check the particulars of their nomination by calling the CPF Board. For the convenience of CPF members, they can obtain a copy of the nomination form through the CPF Personal Autolink System.”
“It is, of course, expected that in these companies, not all the employees will in fact retire at age 60. Some may retire earlier at 55 or at any time below the age of 60. Sir, my Ministry is reviewing the progress made to extend the retirement age and we are now assessing whether legislation is necessary at this point of time to further speed up the shift from a norm of retiring at 55 to 60. In view of the tight labour situation and the greying of our workforce, it is imperative for employers to make the move quickly. 2.30 pm Sir, a healthy 55-year old employee should be seen as an experienced worker who can continue to contribute to the company's performance. We will try to determine the concerns of the non-unionised sector and find ways to get these employers to follow the lead of the unionised sector, failing which legislation may have to be introduced. The Member for Marine Parade GRC, Encik Othman Haron Eusofe, has suggested that we link the employment of foreign workers with raising of the retirement age by a company. I think this is a suggestion which we will consider. It is perhaps one of the administrative measures which could be implemented between now and the decision to proceed with legislation. It is worthwhile considering.”
“Sir, if it is true that there are employers who are prepared to extend such benefits to their female employees, my Ministry will review the situation to see whether the restriction in the Employment Act is still relevant and necessary today. Mr Othman Haron Eusofe and Mr Lew Syn Pau both spoke on the need to extend the retirement age and asked whether my Ministry would proceed to legislate for this extension. Sir, the unionised sector has made good progress in extending the retirement age for bargainable employees. The retirement age norm in the unionised sector is now 60 years. More than 75% of the collective agreements certified by the Industrial Arbitration Court in 1991 provided for a retirement age of 60 years. This compares favourably with 36% in 1988. In other words, within three years, the unionised sector has succeeded to double the number of companies with retirement age of 60 years. The public sector is also retiring its employees at age 60. My Ministry estimated that about 400,000 employees, mainly from the unionised sector, are now able to work up to 60 years. This constitutes about 35% of the 1.1 million local paid employees. The situation in the non-unionised sector is somewhat different, as described by the two Members. A small number, about 4 1/2% of companies, provided for retirement at age 60 by way of a written contract or company policy. However, Sir, this does not provide a complete picture. A preliminary survey by my Ministry shows that a significant proportion, about 29% employing a total of about 380,000 workers, however, do allow their employees to work beyond the age of 55 on a case-by-case basis, without putting down in their terms and conditions of employment that the age of retirement is 60 years.”
“On the Member's suggestion to raise the child care subsidy, I would like to ask the Member to take this up with the Minister for Community Development whose Ministry is actively assisting the child care sector to expand its service and capacity. I understand that the child care service is an important part of our overall policy of encouraging more women to re-join the workforce. The Ministry of Community Development has recently amended its rules on the space allocation so that child care centres can now accommodate more children. They have also been working very hard to increase the capacity of child care services in Singapore. I think more service will be made available as a result of these changes and it would also be more affordable to a larger number of working mothers. Sir, on the point about the Employment Act and the maternity leave for the third child, the Government has on several occasions in the past explained the rationale for not amending the law to provide for paid maternity benefit for the third child. Providing paid maternity leave for the third child could send the wrong signal to those who are not in the best position to afford a third child. Sir, having said this, I must quickly point out that Government does offer assistance to those who want to have a third child. For instance, a working mother who wants to have a third child can take advantage of an additional tax rebate, equivalent to 15% of her earned income. This tax rebate can amount to two months of a working mother's earned income and should help to make up for the loss of income while she is on unpaid maternity leave after delivering the third child.”
“On the Member's suggestion on training or re-training of people who want to re-enter the workforce, I agree with the Member that such re-training would be useful. There are already many opportunities, many avenues, for people who want to re-join the workforce to get some form of training, particularly for those who may have in their younger days missed out on basic educational opportunities. There are already existing avenues for them to make up for these losses, for instance, the NTUC in conjunction with the PAP branches organises BEST, WISE and Fast Forward classes which will be of great benefit to mature workers who now want to re-join the workforce. I would in fact urge those who have missed out on their basic education to make use of these courses to upgrade their own marketability in the labour force. On the other hand, if the Member is referring to specific skill training related to a particular job, I believe the best way to address this would be for the person who is thinking of re-joining the workforce to get a job first. Because it is not quite practical to develop a generic skill training that will be tailor-made for a particular company's requirement. Where additional training is then required, the company will certainly be able to either train the employee in-house or externally. And when the company provides such training, then it can of course apply for assistance from the Skills Development Fund. Sir, I believe that with this two-pronged approach, we would be meeting the needs of those who are planning to re-join the workforce. We have to do it effectively and in a practical way.”
“In general, the guidelines seek to protect the interest of the part-timers without being unnecessarily restrictive on the employers. Benefits for part-timers follow closely the Employment Act provision for full-time workers on a pro-rated basis. Sir, employing part-timers enables an employer to tailor his staffing requirements to meet the fluctuations in work patterns, such as those seen in several service industries. Part-time work is also ideal for mothers with young children, especially if they want to combine work with family. Sir, I would urge all employers who are short of workers to consider offering more part-time employment opportunities. There are many good reasons for supplementing their workforce by employing part-timers. If a working woman wants to resign because of inability to cope with home and work, it is certainly better to keep her on a part-time basis than to lose her completely. In fact, part-time employment is seen by some companies in the United Kingdom as a means of retaining skill, experience and organisational knowledge within their companies. They can be just as productive per hour worked as a full-timer. Admittedly, the administrative effort to employ part-timers is a little more than for the same number of full-time workers. Sir, ultimately, whether part-time or flexible working arrangement can expand in Singapore is related to how firmly we regulate the entry of foreign workers. If foreign workers are readily available, fewer employers would be inclined to tap the reservoir of potential part-time workers. This will make it more difficult for the Member's suggestion to expand flexible working arrangement to be put into practice.”
“Sir, I will first take up the points raised by Mrs Yu-Foo Yee Shoon, the Member for Yuhua. She spoke of the need to encourage more women to join the workforce. I agree with her. I think in the context of Singapore, with a very small labour force to start with, the more women we can encourage to join the workforce the better off we are. Members may wish to know that our present female labour force participation rate at 50.5% in 1991 is comparable to that of Japan, the USA and the UK. In fact, female labour force participation rate has been steadily increasing over the last few years, with the most significant increase taking place in the category of women aged 35 to 59 years. This indicates that more and more married women are re-joining the workforce after marriage and child birth. I also agree with the Member that we should try to encourage more flexible working arrangement because flexible working arrangement is ideally suited to the needs of a working mother. Part-time employment, for example, that is, people working for less than 30 hours per week, is one form of flexible working arrangement which my Ministry would like to encourage. At present, part-timers only comprise about 3% of the employed workforce. In other countries, such as the United Kingdom, they have a much higher percentage of people working part time. In fact, in the UK, among all the women employees, about 45% are actually working part time. In the case of Japan, 10% of the labour force is made up of part-timers, mostly females. Sir, in August 1990, my Ministry published a set of guidelines for part-time employment. The objective was to help employers and employees to work out part-time employment which meets the needs of both parties.”
“However, we will revise the maid levy from time to time to ensure that the maid population does not grow beyond manageable numbers.”
“I understand that in the last five years, the number of childcare places has gone up from 6,000 to 19,000. That is quite a high rate of growth for childcare services. On the flexible working hours, the Government has taken the lead by offering part-time employment opportunities for married women in the civil service. Even though the response has not been overwhelming, such schemes are viable options which working mothers ought to consider. My Ministry has also been encouraging private companies to offer part-time employment. In August 1990, we issued a set of guidelines for part-time employment to safeguard the interests of part-time workers while providing employers with flexibility to offer more part-time employment opportunities. Sir, we must see this rising demand for foreign maids for what it really is. It is a problem arising out of our success and prosperity. Because of our strong economy, a strong Singapore dollar, coupled with the relatively low wages and lack of employment opportunities in neighbouring countries, we are facing a sharp rise in the influx of foreign maids. Problems of success must also be managed, just like problems of stagnation, unemployment and falling standards of living. If we fail to manage this problem of success, it could seriously affect our long-term competitiveness and social development. If we manage it well, we can be assured of continued economic progress and cohesive social development. In conclusion, Sir, my Ministry favours taking a cautious approach to the inflow of foreign maids into Singapore. We do not intend to stop Singaporeans from enjoying the benefits of having the services of foreign maids.”
“This means that even if we stop people from employing a second maid, we will not solve the problem of the maid population growing at the rate of 20% a year. The demand from the one-maid employer was the principal cause of the increase, not the small number of people who need a second maid. Sir, there are of course the "don't tax me, tax the other employer" type of suggestions. One wrote in to suggest that instead of regular increases for all foreign maid employers, new employers should be the ones to pay a higher levy. Current employers, those who already have maids, should be exempted from the new levy. This seems to be fair to the current employers, and I am sure they will support it, but is it really fair to all other employers? Is there a difference in the social and economic costs between a new maid and an old maid? Yet another suggestion goes this way: let us have incremental adjustments of the levy instead of sharp increases. Sir, this is in fact what we are doing periodically by adjusting the foreign maid levy to dampen demand when that demand goes up exceptionally high. I will not tax Members by going through all the 20 suggestions. The great variety and number of suggestions show that any one measure which we adopt cannot please all who are affected by it. Hence, we should always rely on neutral measures like the levy and allow Singaporeans to make their own rational choices. Sir, we have also received useful suggestions on how alternatives to foreign maids, such as childcare facilities and flexible working hours, could help to solve the problem. I have no doubt that the Ministry of Community Development will do its best to speed up the development of more childcare centres.”
“What it means is that our economy is healthy and it is a matter of time before wages of Singaporeans will rise and overcome the increase in levy. Obviously, if we had not increased the foreign maid levy regularly over the years since 1989, we would have many more foreign maids than the 65,000 who are in Singapore today. My Ministry has over the years received about 20 suggestions on how we should regulate the demand for maids. These include allocation based on the needs of the households. However, we have to bear in mind that different people have different needs. Do Singaporeans want a system such that even if they can afford to pay for a particular service, the State tells them that they cannot have it because they do not fall within a particular category of families, or that their needs are less important, or that they have not chalked up sufficient points? My Ministry regularly receives appeals from people trying to explain why their particular need should be considered and approval for maids granted above others. Sir, there is no way for us to decide the merits of all of such cases. Is the need to look after a child stronger than that of an aged parent? Should the Government tell a highly-skilled woman with one child that her need for a maid is less than that of a lower-skilled women with two or three children? This would not seem to be fair or acceptable to the woman with one child. Sir, I hope Members will ponder over these questions in judging the merits of the levy system. There have also been requests to impose a higher levy on the second maid, or even to ban employers from having more than one maid. As I explained yesterday, less than 3% of the foreign maid employers have more than one maid.”
“In many developed countries, where maids are not readily available, some working women even revert to part-time employment or stop work temporarily after child birth and return to the workforce only after the child is old enough to be placed in a childcare centre. This should certainly be worth considering, especially for working mothers who find the total costs of employing a foreign maid to be such that it leaves behind very little real income or net gain for them from their own salaries. If maids are so readily available at low cost, the tradition of having older family members and close relatives helping to look after young children will be eroded or even lost. Furthermore, alternatives to foreign maids such as childcare facilities will not develop fully or at the pace that is desirable to meet the demand. The Government has therefore taken measures to moderate the growing demand for foreign maids so as to minimise their long-term socio-economic cost. When demand continues to grow, as shown by the more than 20% increase last year, the levy has to be revised to moderate the trend. Sir, I would now want to address the question on how we should control the demand for foreign maids. Is the foreign maid levy the best option? Some disagree as they feel that it favours those who can afford. We operate a free market economy. Like all other resources, we should, as far as possible, leave the allocation of foreign maids to market forces by using a neutral pricing mechanism, such as the levy. Others point out that the impact of a levy increase is likely to be short-term. This is true, but it does not mean that the levy is ineffective over a longer period of time or in the longer term.”
“To do so would be to further slow down our efforts to upgrade the economy and to move to a higher technology level and greater value-added output. Sir, we are not yet able to ascertain the extent of the problems from having such a large number of foreigners residing and working in Singapore. But Government should take a conservative approach. We should not wait till there is an overwhelming number of foreign maids in Singapore before we decide to revise the foreign maid levy. By then, it may be too late and there will be too many maids around. As I said earlier, Sir, there are 260,000 married working women actively contributing to the economy. According to the 1990 census and my Ministry's estimate, less than half of the working mothers with children below the age of 6 years (actually 6 years and below) are employing foreign maids. Sir, this confirms that, contrary to the popular impression, more than half of the working women have been able to cope with young children and career. It also indicates that employing foreign domestic servants is not the only solution. Sir, other countries, such as Japan, the UK and the USA, are countries where there is no ready supply of low cost foreign maids available, yet the female labour force participation rates for these countries are about the same or even higher than in Singapore. We should perhaps learn from the experiences of these countries and see how they cope. Foreign maids cannot and should not be the only viable option available to women who have to work and look after a family. The other alternatives are getting part-time local help, help from other family members and making use of childcare facilities.”
“Mr Chiam has said that the increase in foreign workers levy led to an increase in business cost. But, Sir, we have not increased the foreign workers levy with the exception of the levy for the unskilled workers in the construction industry. The increase of $50 for the unskilled construction workers was necessary to slow down the intake of unskilled workers in this sector. The higher levy only applies to unskilled foreign workers. Contractors who employ skilled foreign workers continue to pay the low levy of $250 per month. Sir, let me now address the concerns expressed by Members over the increase in the foreign maid levy. Much of these concerns centre around employers of maids who are working mothers. Many have said that the increase in levy contradicts the Government's policy to encourage women to work and to have children. Underlying this is the premise that foreign maids are the only solution for such working mothers. Sir, if we were to accept this argument, then we must be prepared to allow in much larger numbers of foreign maids than we have here in Singapore today. Currently, there are about 260,000 married women in the workforce. If we do not revise the foreign maid levy regularly, more and more of these women can afford to employ maids and will want to do so. Since maids come from very low-wage countries and are prepared to work for as little as $150 per month, the foreign maid population could rapidly grow to unmanageable scale. Sir, this is the likely result if we were to adopt the approach of making foreign maids affordable to even lower income working women. What we must avoid, Sir, is to bring in large numbers of unskilled domestic servants so as to release equally unskilled Singaporean women into the workforce.”