Lee Yi Shyan
Singapore
“When Prime Minister Lee Hsien Loong opened the Heartbeat@Bedok on 4 February 2018, we unveiled a locally-installed art work named “Pulses”. Singapore is no Florence but we could still envision our version of renaissance. Given this context, would the Minister enlighten us how MCCY views arts and culture development in the community?”
“Sir, I would like to ask the Minister if the Government has a framework to review and reduce outdated and obsolete regulations on a regular basis to keep the regulatory burden light. Would the Ministry consider applying expiry dates or sunset clauses to newly introduced regulations?”
“How would the Ministry encourage Singapore entities to capture the intellectual property created, so that we can monetise them and invest in our future? Does MOT see the need to champion research and development (R&D) activities in intelligent transport technology?”
“How would a wide range of solutions be coordinated amongst different agencies responsible for service delivery? Mr Chairman, just as the Government rolls out the 23 Industry Transformation Maps (ITMs) to transform our industries, is there a similar masterplan to transform our Public Service to be a smarter Government?”
“Now that the region has caught up, China has risen, we need to make continual and further adjustments to our strategy to sharpen our competitiveness. Being multilingual and deeply connected to the regional hinterlands must be our strategic priority. I support the Budget.”
“It is not just physical connectivity that we need to build, but the psychological bridge to understand the world, to reach out to complex issues and to deal with them tenaciously. There is no silver bullet but hard work aplenty. Mr Deputy Speaker, there is great urgency. I support the Budget.”
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Every one of 438 lines we hold for Lee Yi Shyan, in date order, each linked to its source. Free to read, in full, without an account. Page 7 of 9.
“However, I would like to encourage progressive EAs to adopt standards and best practices beyond the minimum standards in the legislation. Towards this end, MOM will be working with the industry to develop a new voluntary trustmark scheme to recognise agencies that pursue higher level of service excellence. Updating provisions and process Our new framework will also be updated to ensure that it is relevant in today's context. We will create a new office of Commissioner for Employment Agencies, assisted by Deputy and Assistant Commissioners, to assume the responsibility for the overall administration of the EA Act. Currently, the Commissioner for Labour appointed under the Employment Act has this responsibility. Introducing this new office under section 3 will ensure clearer accountability of the functions and powers conferred on the Commissioners under the various Acts. At the same time, we have reviewed the caps under the subsidiary legislation on fees that EAs can charge employers and jobseekers. We will remove the fee cap for employers as it is not necessary. There are many EAs willing to supply them labour and employers are free to make contracts that protect their interests. We will retain and update the cap on fees charged to workers, in order to protect vulnerable rank-and-file workers who have relatively weak bargaining power. In the case of foreign workers from rural villages, they also suffer from information asymmetry and often have no say in choosing their Singapore EA. We will update the fee cap for workers to take into consideration the need to be fair to EAs for the services rendered, and to workers with respect to their income.”
“In addition, clause 12 requires all individuals who wish to engage in any specified EA work to be suitably certified by attending and passing the course identified by MOM. The EA these individuals are affiliated with must also issue them with registration cards in accordance with MOM's specifications. These requirements will give employers and job seekers the assurance that their EAs and their personnel are properly qualified and equipped to help them. To clarify, it is not our intention to require all EA staff, including drivers or cleaners, to be certified and registered. My Ministry will put up guidelines on the kinds of staff who need to be certified and registered. Currently, it is the licensee who takes all responsibility for malpractices committed under the EA's name. To further increase the accountability of industry stakeholders, the new sections 28A and 28B will also allow MOM to take punitive actions against individuals other than the licensee to task for the malpractices they have committed. Sir, the next change I will talk about will only affect the subsidiary legislation and is thus not reflected in this Bill. Currently, EAs that place FDWs must be accredited in order to renew their EA licence after one year of operation. Mandatory accreditation entails meeting certain service standards. To raise minimum service standards in the industry, MOM will incorporate into the subsidiary legislation some of the minimum service standards, such as being explicit about the agency's dispute resolution mechanism and using standard service agreements. The subsidiary legislation will apply to other types of EAs, not just those placing FDWs. With certain minimum service standards enforced by MOM, accreditation will cease to be mandatory.”
“Should they need to make applications on behalf of other EAs, they must verify that other EAs are similarly licensed and allowed to make such applications. To allow for a more calibrated action, depending on the gravity of offences, the Bill expands the range of enforcement actions. Whereas MOM's enforcement options are currently limited to only prosecutions or licence revocations, under the new framework, MOM will also have the discretion to compound offences or suspend licences of errant players. Meanwhile, to ensure sufficient deterrence against malpractices, amendments to sections 18, 19 and 20 will enhance the range of MOM's investigatory powers. These are largely based on similar powers granted to MOM under the Employment of Foreign Manpower Act. Increasing professionalism and accountability of industry stakeholders Sir, apart from weeding out unlicensed and errant agencies, we will enhance the professionalism and accountability of EA key appointment holders and personnel. These new features will raise the entry barrier and build confidence in the industry. It will benefit legitimate EAs in the long run. The new section 7(4) allows the Commissioner for Employment Agencies to debar any person or company deemed unsuitable from obtaining a licence. In addition, the new section 22C prohibits certain classes of persons, such as those with criminal records, from conducting specific EA work as defined in clause 2. Persons intending to assume key appointment positions such as partners, chief executive officers and directors, or other positions involving management or administration of EA work, will be held to even higher standards.”
“To stem the supply of unlicensed agencies, we will raise the penalties for unlicensed agencies to ensure that they are commensurate with the potential gains from malpractices. The most significant increase in the maximum penalties under the Act will be for operating an unlicensed EA in section 6. The first offence will warrant a fine of up to $80,000 and/or up to two years of imprisonment, and subsequent offences are liable for penalties of up to twice that amount. In addition to raising the penalties for operating an unlicensed EA, we will also hold an unlicensed agency accountable for the same offences as a licensed agency under the Act. To stem the demand for unlicensed EAs, the new section 22A introduces a new offence for persons who engage unlicensed EAs. We will require individuals to exercise due diligence in checking whether the EA they intend to engage is licensed, via an EA directory on our Ministry's website. The requirement is not an onerous one. However, my Ministry will be reasonable in dealing with employers who have limited access to the Internet, such as elderly persons hiring foreigh domestic workers (FDWs). The new section 22B introduces another offence prohibiting licensed EAs from making applications on behalf of EAs which are disallowed from making such applications. We are aware that some licensed EAs allowed unlicensed EAs to thrive by submitting work pass applications on their behalf to the Ministry of Manpower (MOM) since their access to the work pass application system is only granted to EAs that are licensed. Licensed EAs should only make applications on behalf of employers or job seekers.”
“They are, in effect, conducting EA-related work and should be held to the same level of accountability that other EAs are held to, in order to protect the interests of job seekers who seek their help. Yet, it may be difficult to prove whether the foreign workers conducting EA-related work had benefited in cash or in kind. It is thus important to ensure that the Act covers and regulates these activities. Clause 4 empowers the Minister to exempt individual entities, certain classes of persons or EAs from the provisions of the Act. This exemption list will include activities or entities which we clearly do not intend to regulate, such as web-based job portals and job bulletin boards as they are not usually actively involved in the actual placement work. Sir, the Government takes unlicensed EA activities seriously. They undermine the regulatory framework by competing with licensed law-abiding EAs. They also tend to exploit the vulnerable workers from developing countries by charging them exorbitant fees and may not give them the promised jobs in return. The current penalties pale in comparison to the potential profits from illegal or errant EA activities. The existing maximum penalty for first-time offenders under the Act is $5,000. But foreign workers, as you know, are willing to pay agency fees of between $3,000 and $10,000 in order to land a job in Singapore. They did so, perhaps, by selling land or taking up loans to pay these fees. Moreover, licensed EAs would have to furnish a security deposit of up to $60,000 and the same requirement is not there for unlicensed EAs. Therefore, all these add to strong incentives for unlicensed EAs to remain unlicensed.”
“The need for stronger regulations to tackle errant and unlicensed EAs has therefore become a key consideration in our review. Sir, this Amendment Bill is the result of many rounds of consultations and refinements with key stakeholders such as EAs themselves, employers, workers and non-Government organisations. The enhanced regulatory framework achieves four objectives. Firstly, to weed out unlicensed and errant EAs that give a bad name to the industry. Secondly, the new framework will hold all stakeholders involved in conducting EA-related work to higher professional standards and accountability. Thirdly, we will update the provisions and processes to ensure their relevance. Finally, we will enhance the flexibility of the EA regulatory framework. I will first explain who the Employment Agencies Act is intended to cover. Clause 5 clarifies that we wish to regulate all EA-related activities conducted in Singapore, regardless of whether they are for job placements in Singapore or outside Singapore, whether the activity is conducted by locals or foreigners, or on a long-term or short-term basis, or whether for gain or otherwise. I would like to assure the House that it is not the intention of my Ministry to penalise persons who make casual recommendations to link job seekers to employers. The new provisions are deliberately kept broad to ensure that all types of EA-related activities that may give rise to malpractices are covered. For instance, there are foreigners who earn extra money by regularly linking up acquaintances from their hometown with various employers in Singapore.”
“Mr Deputy Speaker, Sir, I beg to move, "That the Bill be now read a Second time." Sir, the Employment Agencies (Amendment) Bill seeks to strengthen the regulatory framework of the employment agency (EA) industry. The outcome will be an EA industry that is better qualified, more professional and effective in matching employers and workers. As intermediaries that link job seekers and employers, EAs play a critical role in the smooth and efficient functioning of the labour market. A well-functioning EA industry helps match employers with workers with the right skills, ultimately raising the productivity of our workforce. It will also support Singapore’s vision of being a centre of talent with fair and responsible recruitment practices. For our EA industry to be effective, we need a regulatory framework that is relevant to today’s labour market requirements. My Ministry had therefore embarked on a review of the EA regulatory framework to ensure its robustness and accountability of all stakeholders. Today, I am pleased to present the outcome of the review in the form of this Bill. Changing EA landscape Sir, the current version of the Employment Agencies Act was last amended in 1984. Since then, our workforce has grown in size and mix. Correspondingly, the number of licensed EAs has also increased by more than seven-fold to over 2,500 last year to meet labour market demands. Where many EAs have conducted themselves professionally, some have been found to be wanting. Malpractices have unfortunately also become more widespread. In 2010 alone, my Ministry took enforcement actions against 147 licensed EAs. The number of complaints we received against licensed and unlicensed EAs in the last few years has also risen.”
“Sir, with the rapidly changing industry structure in the economy, I think it will work for everyone if we take training seriously and acquire the habit of life-long learning, and this applies to younger workers, older workers in different sectors of the economy. I think this attitude should help our people adjust to the new environment. So, under the CET master plan, we have plans to ramp up our current training capacity for PMETs to about 250,000 in 2015, and this a five-fold increase in about five years. As we make available more training places, we will also provide learning opportunities, both for upgrading vertically as well as to switch over to new industries. As I mentioned in my speech earlier, there will be other services such as counselling and EQ-type of training that will help older workers to either switch to a new job or to make them more rounded and more desirable as employees. 2.58 pm”
“Forty-four percent of them earned below $800 a month while 56% earned between $800 and $1,500 a month. The Government will continue to help those in need. In recent years, HDB has stepped up the building plan for rental flats. The number of rental flats will increase from 45,000 units today to about 50,000 units by 2012. HDB introduced the Interim Rental Housing (IRH) scheme in 2009 to provide temporary housing options to needy families who could not afford open-market rentals. This scheme offers flats at below-market rent to families who need temporary accommodation while waiting for their rental flats, BTO flats, or need more time to build up their finances. Under this scheme, two families share a 3-room flat to keep the rental low. HDB regularly reviews the supply of rental and sold flats to ensure that it caters to the different needs of Singaporean households. It will continue to ensure that HDB flats remain affordable to Singaporeans. Assoc. Prof. Paulin Tay Straughan (Nominated Member): Thank you, Senior Parliamentary Secretary, for your response. May I follow up with two supplementary questions? First, what is the proportion of applicants who are aged 62 and above – the elderly group? Second, will the HDB consider renting out studio apartments to this group of Singaporeans because there is a gap between being needy and being able to afford open-market purchases? I hope the HDB can consider plugging this gap, particularly for the aged Singaporeans.”
“Sir, I agree with Mdm Halimah's point that the qualitative aspect and the maturity of the FDW to be brought in are our ultimate concerns. Given that many of these workers do not grow up in our kind of urban environment and are not necessarily exposed to the requirements of modernity, some of them really have problems just operating washing machines, microwaves, and so on, not to mention working in high-rise buildings and cleaning windows. This is a very different environment from where they came from. So I think that age is one important criterion but it is not the only criterion. We have to look at a number of factors. We have no intention of changing the age limit to lower it to qualify FDWs, but it can be a factor for future consideration. APPLICATIONS FOR HDB RENTAL FLATS 10. Assoc. Prof. Paulin Tay Straughan asked the Minister for National Development (a) how many applications have been received for HDB rental flats annually in the past three years; (b) what is the demographic profile of such applicants; and (c) if there are plans for the HDB to make available a wider range of rental flats to augment the housing needs of Singaporeans and residents. The Senior Parliamentary Secretary to the Minister for National Development (Dr Mohamad Maliki Bin Osman) (for the Minister for National Development): Mr Speaker, Sir, HDB public rental flats cater to the needy citizens households who are unable to afford home ownership flats and who have no family support or no alternative housing options. There was an average of 2,700 rental applicants per year registered by HDB in the last three years. In 2010, 83% of these applicants were family households while the remaining 17% were registered under the Joint Singles scheme.”
“We are working with foreign embassies to ensure that the source document can be verified. However, we also want our employment agencies to go beyond just relying on documentary proof, and to conduct investigative interviews upfront so that through interviews, we can find out if the workers have the right experience, if they indeed have finished school, if they indeed have worked for a number of years, and whether the evidence presented by them is contradictory. So we have to rely on a number of measures to make sure that the under-aged workers do not come in. Over the last few years, we have repatriated about 50 FDWs each year because they were underage.”
“Sir, I thank the Member for raising the two clarifications. I think it is common logic to say that if the requirement age is 23 years, to judge whether someone is under-aged against 23 years will be easier than to judge against 21 years, for the same under-aged worker that one intends to bring in. Already today, given that this is the requirement, many employment agencies and potential employers cannot really tell the difference in age if the under-aged person is not far from the requirement age. Therefore, we do not see how by reducing the age from 23 years to 21 years can help in detecting under-aged FDWs. Our past data also suggested that many FDWs who had a great deal of adjustment problems were FDWs of age 23 years and below. In fact, a number of them who fell to death from heights were around that age band. So cutting the requirement age at 23 years was a deliberate move in 2005, and I think we should stick to that. The Member also raised a supply issue. We do not think supply is an issue at this point. I think quality of supply is what we should pay attention to. In fact, for FDWs who want to work in Singapore, we have introduced a number of measures, including requiring them to take a basic test to show their literacy and numeracy skills, and their ability to understand basic instructions on safety. Also, we require first-time FDWs to take a four-hour orientation programme to be aware of their rights and to understand safety precautions surrounding their work environment. So these are additional measures that we have introduced to help first-time FDWs adjust to the Singapore environment. As to employment agencies saying they are relying on official documents as proof of age, we know that the source document is very important.”
“We have made it quite clear that the strategy for sustained growth for Singapore is through raising productivity. Therefore, my colleague, Senior Minister of State Iswaran has detailed a number of initiatives guided by the NPCEC, as to how various sectors can continue to map out their plans for productivity improvements. An appropriate supply of foreign workforce and workers in the right number at the right quality will help us achieve that purpose. IMPACT OF WIKILEAKS REVELATIONS (Home Affairs perspective) 5. Mr Zaqy Mohamad asked the Minister for Home Affairs (a) whether there are plans to implement any new measures to prevent classified information or communications from falling into unauthorised hands, following the WikiLeaks incident; and (b) what is the Ministry's assessment of our current information security policies and tools used in the Civil Service.”
“We will continue to educate members of the public and consumers on the need to exercise caution and discretion when choosing their products. We hope to see better labels on toy products, for instance, how they can be used safely and the suitability for different age groups. So, overall, we can look forward to a stronger regime for toy safety next year. SCREENING OF WORLD CUP MATCHES 16. Er Lee Bee Wah asked the Minister for Community Development, Youth and Sports (a) what were the criteria used in the selection of the 16 community clubs to screen the recent World Cup matches; (b) whether the Ministry will consider extending the screening of high-profile sporting events to all community clubs in future; and (c) how can a repeat of the issues in securing World Cup broadcasting rights be prevented in the future.”
“Sir, I want to thank the Member for her suggestions on how to improve the safety regime on toys. Toy safety is obviously very important to many parents and consumers. But we must also realise that, on a daily basis, we come into contact with many things, like the toys for the children, the clothes we wear, the dye and the gel we apply on our hair, the wallet and the cellphone cover that we carry. All of them are potential risks. And toy safety is just not whether it contains certain chemical, like the plasticiser or lead in bright painted products but, also, what if it falls apart and could the small parts pose a danger to children. So far, if you want to certify a particular toy that is safe for a particular age group, there is elaborate testing needed. And what is safe for a 12-year-old to a 15-year-old might not be safe for toddlers, say, below three years old. We have studied a neighbouring country's example and a particular multinational at one time was asked to send all its toys for inspection before they could be allowed to come in. Based on just 6,000 toy varieties that they have, it will take six years just to clear that inventory of toys. And this is just for one company. I cannot imagine if we apply it to the toy industry and, extending the argument, to consumer products that we use on a daily basis. I think the practical approach is really, as the Member suggested, develop our own standard and then increase our ability to detect toys that are unsafe, enhance our surveillance system and enhance our agency's power to ban the sale and recall the products by compelling the distributors, or the importers to do so, backed up by legislative power. So, I think this is the direction that we are heading.”
“Mr Christopher de Souza asked the Minister for Manpower (a) what is the percentage of the total number of employers of Foreign Domestic Workers (FDWs) who defaulted on payment of their FDWs' monthly salaries in 2007, 2008 and 2009; (b) what measures does the Ministry have in place to ensure that FDWs' salaries are paid on time; and (c) will the Ministry consider implementing a centralised electronic tracking system to ensure that salaries of FDWs are paid on time.”
“I thank the Member for these further questions. On the service staff, if she is talking about F&B and the hotel frontline staff, both the IRs will have to compete in the market – they recruit against competition, they also have to retain against competition. It is still in a very early phase of being operational. So it will take a while to see what the turnover rate is. I hope the turnover will not be high because they have spent so much time in training and make a lot of effort to create a conducive environment for these people to develop their careers. On the ancilliary service providers, what we know is that with the two IRs setting up, there were about 100 new companies, tourism-related companies formed, in support of the IRs. Some of them may fall into this category defined as ancilliary services, but whether they are ancilliary services or part of the supplier or part of the supply chain, all the companies within Singapore will have to find ways to raise productivity and find ways to automate. In fact, with more outsourced jobs that they can acquire, there should be economies of scale to justify automation. We work very closely with the two IRs so as to understand and preempt their operational problems. We do not see this is an area of concern yet. The third question about the 10,000 jobs. As I said earlier, the local hires are accounting for about 70%. With our joint efforts to localise the workforce, we should be able to maintain the target. DEFAULT IN PAYMENT OF FOREIGN DOMESTIC WORKERS' SALARIES 13.”
“Sir, the two IRs have projected that they require 20,000 direct workers. As you can see, and also mentioned by my colleague, Senior Minister of State Iswaran, yesterday, 80% of these jobs have been realised so far. The run up to the employment already saw the cooperation between the two IRs as well as the number of Government agencies. There is a work group that meets very regularly to look at just the manpower situation. We are pleased to note that the two IRs have committed to the localisation plan. Under this plan, when the IRs do the recruitment, of course, given the large numbers, they would recruit openly as Members can see in their recruitment advertisements. They also have been going to the unions, to the schools, to ITEs, to polytechnics, to SHATEC, for the specific skill sets they need. I think they also make a special effort, in terms of reaching out, to various small groups but available employment pools such as the Back to Work women's group as well as the Yellow Ribbon. All in all, we see good progress being made. Out of the 16,000 workers that they have hired, about half of them have gone through the Workforce Skills Qualification (WSQ) certifiable training courses, especially for MBS, the recruitment is ongoing and we are working with them closely to make sure that they reach out more to the local pool and, at the same time, train them through the various WSQ courses at the Continuing Education and Training (CET) Centres.”
“I think I understand the Member's point. International studies show that by providing a training account with monetary value in it may still not be the best and most effective way of motivating individuals to take up courses. What we have today in our system is a CET infrastructure that comprises a large number of training courses that individuals can go forward and sign up. And when they go forward, under today's SPUR's arrangement, they only pay 10% of the course fee as compared to some other courses that are not subsidised upfront where they have to pay a lot more. So we are looking at the various methods. As far as this portal is concerned, as what I have described, we would look at other best practices internationally and see what is the best way to motivate our workers. We have not got the conclusion today that by providing an individualised monetary account is the best way forward. PREVALENCE OF CERVICAL CANCER 15. Dr Lam Pin Min asked the Minister for Health (a) what is the prevalence of cervical cancer in Singapore; (b) what is the current screening programme available and its take-up rate; and (c) whether there is a need for a national vaccination programme against such cancers.”
“I want to thank the Member for pointing out the importance of ownership of career development and taking individual training needs as his or her own priority. In fact, for the motivated individuals, today, they are already able to access many courses under the Continuing Education and Training (CET) framework to improve themselves. Under the Skills Programme for Upgrading and Resilience (SPUR) programme, many of the course fees are subsidised up to 90%. They have up to 30th November this year to take advantage of the various programmes. The setting up of this portal is really to help individual workers to chart their training paths from where they are today, from point A to point B, where they want to be. This portal will seek to provide information on the demand of the various professions. It will also help the individuals to identify their own skill gaps and, therefore, point them to the right type of training courses they can take at their own pace and given their skill level in order to progress themselves. That is the kind of tool we seek to establish. Of course, with this tool, it will be customised to the individual. So over time, the person can track his or her own training achievements and monitor his or her own progress in the development needs. These are all the tools available but we still need the individuals themselves to be very proactive in terms of identifying their own needs and taking up the courses. So I agree with the Member that we have to continue to encourage individuals as well as employers to proactively take part in CET.”
“Finally, our proposed changes to the employment agencies regulatory framework will place greater onus and compliance burden on employment agencies that deal with vulnerable workers. For headhunters and executive search firms, they will continue to be managed with a light touch. Sir, we can all look forward to many progressive changes to the employment agencies regulatory framework in this coming year. We hope to ensure better compliance and improve the standard of recruitment practices among employment agencies in Singapore. In doing so, Singapore will remain a choice destination for experienced and skilled foreign workers. They, in turn, can make valuable contributions towards our objective of developing a sustainable and a productivity-driven economy. 12.45 pm Promoting flexible workplaces”
“On his first suggestion, accredition is mandatory for agencies that place foreign domestic workers and accredited agencies already use the standard employment contract that requires employers to stipulate, among others, the number of rest days per month. Zero is not an option. It also stipulates the amount of compensation the foreign domestic worker should receive, if they agree to work on their rest day. Failure to provide the agreed number of rest days or compensation in lieu is a breach of the Work Permit conditions, as is the failure to provide adequate rest. On his second suggestion, we already have the standard service agreement and the standard employment contract. What is missing is a standard service agreement for employment agencies and foreign domestic workers. We agree that such a service agreement could be developed, and would help reduce downstream disputes. We could also develop a similar set of standard agreements for non-domestic foreign workers and their employers or their employment agencies. As these types of standard service agreements would have to be developed from scratch in consultation with the industry, we will consider mandating them after we have had some time to pilot and refine them. Beyond making minimum service standards part of licensing conditions, we will also encourage accreditation bodies, such as the Association of Employment Agencies Singapore and CaseTrust, to introduce a new voluntary trust mark scheme. The objective is to differentiate the better agencies by indicating the quality achievements of employment agencies to potential employers. We will be working closely with the accreditation bodies to develop the new trust mark scheme.”
“This will address Mr Yeo Guat Kwang's suggestion that we review the fee caps in the Employment Agencies Act and make both placement and transfer fees paid to employment agencies more transparent and realistic. Our second objective in the review of the employment agencies framework is to ensure adequate deterrence. This will involve increasing our penalties for some offences to impose costs that are commensurate with the large potential gains from malpractices. For example, the maximum penalty for operating an employment agency without a licence today stands at $5,000 and this pales in comparison to the fees that some foreign workers are willing to pay to come to Singapore. We will also expand the range of our enforcement options in order to calibrate our actions for offences of different gravities. This will include introducing the power to compound all offences and not just some of them. Suspending the operations of agencies undergoing investigations will also be an option. Third, we aim to better ensure minimum service standards when employment agencies deal with employers. Accreditation is mandatory for agencies that place foreign domestic workers. The minimum service standards under the current accreditation framework will be moved into the licensing conditions. This will ensure that these requirements have the force of law, and that all agencies, including those not recruiting domestic workers, are subject to those requirements. Mr Yeo Guat Kwang had two suggestions. One is to mandate one rest day per week for all foreign domestic workers and to require all employment agencies to have a written contract with each worker and each employer.”
“Last year, we received 1,280 complaints from employers, foreign workers and members of the public regarding employment agency malpractices. This was an 80% increase compared to the year before. While part of the reason for the spike in errant agencies was the fact that we ramped up our enforcement actions in the past year, we recognise that we need to strengthen our regulatory system to check on malpractices. Our review of the framework aims to achieve four objectives. First, we intend to update the coverage and provisions in the framework. Currently, unlicensed employment agencies merely face penalties for operating as an unlicensed agency. One of our key changes is to ensure that they will be subject to employment agency regulations. Apart from imposing penalties on unlicensed employment agencies, we also want to discourage transactions between employers with any unlicensed employment agencies. By making it an offence for persons to knowingly engage an unlicensed employment agency, we intend to break the collusions involving kickbacks between employment agencies and errant employers. We aim to expand the coverage of the Act to ensure that employment agency personnel will be accountable for their actions. Currently, all agencies are not restricted in who they employ to perform recruitment or placement work. To ensure all key appointment holders and staff performing recruitment or placement work are appropriately qualified, we will impose certain requirements on them such as tests on knowledge of relevant laws. This will raise the standards and accountability of the employment agency personnel. We will also update the caps on fees charged by agents to employers and workers, including transfer fees, to reflect market realities.”
“Unions have also expressed strong support for the mechanism as it will allow them to reach out to PME union members when employment disputes arise. In general, most agree that it will be a cost effective and a speedy avenue for employment dispute resolution. We target to implement this new mechanism in 2011. Sir, the ESC also suggested that we should adopt good employment practices on foreign workers. I would now like to touch on our ongoing efforts to improve foreign worker recruitment practices. As part of our national productivity drive, we are emphasising the importance of workforce training and re-skilling alongside other measures, such as innovation, process re-engineering and adoption of technology. Good recruitment practices, pertaining to foreign workers, will also strengthen Singapore as an attractive destination for experienced and skilled foreign workforce, who can help us achieve productivity-driven growth. In the management of foreign workers, employment agents play a key role. Mr Charles Chong has observed that there was a spike in the number of errant employment agencies from 2008 and 2009. Mr Yeo Guat Kwang has also asked for better protection of employers and workers' interest from the services of some employment agencies. MOM treats this subject seriously. We are currently reviewing the Employment Agencies regulatory framework to improve compliance and minimise malpractices. The current situation is this: the Employment Agencies Act was last amended in 1984. Since then, the number of employment agencies has increased seven-fold to just over 2,300 at the end of 2009. Low barriers to entry and a growing foreign worker population have led to more malpractices in the industry and insufficient differentiation between good and poor agencies.”
“The recent announcement in the Budget Statement to enhance course fee tax relief for individuals from $3,500 to $5,500 will also be helpful. In summary, there are many channels available and it is unclear at this moment that there is a further need for a Government-run loan scheme. But if there is a gap, and if Members of Parliament come across deserving cases, please refer them to MOM or WDA, and we will be happy to take a look. Sir, we believe our investments in a first-class CET system will be beneficial for our workers and companies. But our investments cannot produce the kind of outcome we hope for if our employers and workforce do not take collective and individual ownership towards upgrading and life-long learning. I therefore appeal to all employers and workers, PMETs and others, to take full advantage of the training places made available under CET to learn, grow and to stay meaningfully employed. Sir, now, let me touch on a slightly different aspect of PMETs – the proposed employment dispute resolution mechanism. Mdm Halimah Yacob has asked for an update on the progress on the dispute referred to MOM for PMEs. On average, about 270 executives seek MOM's assistance each year. Close to half of them were resolved with MOM's help, while the rest sought settlement with their employers or were withdrawn. Some went on to settle their disputes through civil litigation. On the progress of the dispute resolution mechanism, I am pleased to report to the House that the feedback from our tripartite partners has been positive so far. Employers recognise the growing segment of PMEs and the benefits of having tripartite partners play a role in resolving employment disputes.”
“At the same time, in response to the economic recession, the Government rolled out the now well-known SPUR to help companies and workers manage the downturn and invest in skills for the recovery. We saw a larger proportion of trainees taking up Government-supported courses. Without SPUR, the decline in overall resident training participation rate could have been worse. On his second point, although the number of job placements between FY2007 and FY2009 increased in absolute numbers from 16,700 to 24,000, the number of new job seekers increased even more due to the recession in 2008. With the recovering economy, we can expect the number of new job seekers to decline. But we still expect a group of job seekers who lack the skills for new jobs and will need to be trained before they can get these new jobs. Let me assure Mr Hri Kumar that the CET will also remain affordable to workers. Today, courses under the CET system are already heavily subsidised by the Government with up to 90% of the course fees subsidised under SPUR, including selected tertiary courses. In addition, WSQ course fees can be paid on a per-module basis and some CET centres allow deferred payment arrangements on a case-by-case basis. Low-wage workers can now benefit from both Workfare Income Supplement and Workfare Training Scheme. Those who face financial difficulties can also approach our Career Centres at the CDCs or e2i, or seek assistance from NTUC and the self-help groups which provide additional training subsidies under the Surrogate Employer Programme. In addition, MOE has a Tuition Fee Loan Scheme which includes graduate research programmes and Government-subsidised coursework graduate programmes, and various banks also provide education loans.”
“Sir, we operate in a globalised world where industry and therefore job requirements change at quickened pace. Our workforce, including PMETs, must be on their toes in upgrading themselves. 12.30 pm In view of this, we have been developing a CET system that is responsive to our economic needs and new developments world-wide. Mdm Ho Geok Choo mentioned the UK Skills Account, which is an online skills account that provides information on life-long learning and individual training pathways. Mdm Ho will be pleased to know that WDA is looking into such an online self-service portal for individuals to help them monitor and plan their own training. Since the launch of the CET Masterplan in 2008, we have quietly but resolutely made a commitment to life-long learning and upgrading of our workforce. While the spending in CET system accounts for only between 0.1% and 0.2% of the GDP today, compared to 0.3% in some other advanced economies, we believe we have made a fundamental shift, a strategic step towards keeping our workforce relevant, current and agile. We have made a great start and we will ensure Singapore's workforce remains the world's most competitive by putting in more resources for a first-class CET system. Mr Charles Chong has asked why there was an increase in training fund disbursed while the overall participation rate among the resident labour force declined. He also pointed to the declining job placement rate in the last two years. On his first point, the training participation rate takes into account all forms of training and education activities, including those supported or provided by companies. In view of the severe economic downturn in 2009, many individuals and companies scaled back on training.”
“Other PMETs have used the CET system to successfully switch careers. Ms Jasmine Hu was in the finance industry for 12 years and held various roles from sales, to training, to customer service and even stock trading. She was also volunteering at a special school for autistic children when she decided to further her studies and work towards becoming a lecturer in pre-school education. Ms Jasmine Hu then enrolled in a conversion programme as a stepping stone. She will graduate from the programme at the end of this year and would have enjoyed Government subsidies of 90% of the course fees on top of a monthly training allowance of $1,000. During her pre-school attachment, however, she was inspired to be closer to the ground and decided she wanted to set up her own pre-school centre instead. Not just any pre-school, but one for children with different learning needs. From the financial industry, to attending a pre-school conversion programme to a budding entrepreneur dedicated to pre-school education, Ms Jasmine Hu's learning and development journey is an inspiring one. If she succeeds, and I am sure she will, our CET conversion programme would have done more than just helping people switch jobs, but also enabled them to realise their dreams. The latest is that Ms Jasmine Hu is now looking for a location to build her new school. Sir, let us take a step back and consider the larger picture. According to a survey in the United States, an average worker is likely to change jobs 10 times between the ages of 18 and 38. In Singapore, our own data shows that about one out of three workers aged 25 to 29 changed jobs within the previous two years. Among those in their 30s, about one out of four of them changed jobs in the previous two years.”
“WDA, together with the Community Development Councils (CDCs) and e2i, has launched a series of career skills workshops targeted at PMET job-seekers. The workshops covered a range of topics including resume writing, job search and interview skills. There are also recruitment events and advisory services provided by trainers or coaches. Since the start of SPUR, we have reached out to about 1,100 PMETs through career skills workshops. I am happy to report that the response continues even as the economy recovers. WDA will continue to fine-tune these services to better meet the needs of our PMETs. All our efforts under the Professional Skills Programme are bearing fruit. Many PMETs have taken upgrading seriously as they see the need to stay current and relevant to the changing job market. Mr Jayern Woo is 29 years old and a business development manager who holds a Mechanical Engineering degree. After working in his company for just two years, he recognised the importance of upgrading himself to advance his career. He enrolled for the Precision Engineering WSQ Specialist Diploma at the Singapore Institute of Manufacturing Technology in July last year. Together with more than 30 other like-minded individuals, he has kept abreast of the latest complex technologies critical for the precision engineering sector. We spoke to Mr Woo recently and he revealed that he truly appreciates the chance to build valuable relationships with industry experts. Keeping updated on the latest technology in the industry has also helped him to be more confident when promoting his company's services to potential clients. It is always heartening to hear how our upgrading programmes have real impact on the working experiences of our trainees.”
“For instance, we have introduced a Graduate Diploma in Systems Analysis with NUS and a Masters in Sustainable Building Design with the University of Nottingham. Just two weeks ago, I attended the launch of two new WSQ graduate diplomas – one in Product Life Management and the other in Engineering Simulation for PMETs in the manufacturing sector. I am confident that these programmes will help our engineers and manufacturing professionals deepen their capabilities. Over the next five years, we will build more vertical upgrade paths for PMETs in key growing sectors such as digital animation, human resources, aerospace, environmental technology, sustainable manufacturing and energy management. Third, we want to create more skill conversion programmes for PMETs who are interested to switch to a new growth sector or industry. Sir, we have already put in place 50 conversion programmes so far. They open up a new world of opportunities in professions such as chefs, occupational therapists, pre-school teachers, social workers, hospitality managers, public relations executives, scriptwriters, designers and aircraft engineers for the PMETs. In 2009, about 1,700 trainees have signed up for conversion training, of which 500 of them were placed in related jobs. Two hundred have completed their training. I am certain that the rest who are still undergoing training will stand in good stead to switch to a new occupation of their choice. Finally, in addition to training, some of our PMETs would also require career services that are tailored to their needs. This is especially true for those who have been in the same line for many years and need to update their understanding of the labour market or to refresh their career skills.”
“One, helping PMETs acquire horizontal skills; two, helping PMETs deepen their professional skills and expertise; three, enabling PMETs to acquire new skills for new industries; and four, enhancing effectiveness of career services. Let me elaborate on each of these four changes. First, to help PMETs develop horizontal skills, or making them more "T-shaped", we will expand the range of such programmes available. Consider the recently introduced WSQ Manufacturing Sales and Marketing programme. Programmes like this aim to equip engineers and technicians in the manufacturing sector with functional sales and marketing skills. Through a tie-up with IE Singapore, the programme will also expose them working in different countries by way of overseas attachments. In this way, these otherwise purely technical professionals will become marketing and sales-savvy. Being more all-rounded, they will help their companies grow by increasing companies' top lines. To expand the range of horizontal programmes, we will launch a WSQ programme series in Business Management later this year. This will cover 10 key horizontal skills areas, including sales and marketing, negotiation, and risk management. This series will further enhance the versatility of our technical PMETs so that they can multi-task and become more valuable to their employers. Next, we want to help PMETs deepen their specialist skills along certain functional areas. How do we achieve this? For functional areas that are already served by WSQ programmes, we will create more vertical upgrading paths at the diploma, degree and even postgraduate level. We will target programmes which are critical in ensuring our industries remain competitive.”
“Mr Chairman, my Minister has laid out our plans to improve productivity and expand Continuing Education and Training (CET) in response to recommendations of the Economic Strategies Committee. Let me elaborate on these plans, in particular, how we will be upskilling Professionals, Managers, Executives and Technicians (PMETs). When WDA first started in 2003, our priority was to equip our rank-and-file workers with skills to overcome structural unemployment. Over time however, as the proportion of the PMETs increased in our workforce to 52%, we clearly had to adjust our CET model to cater more to PMETs' needs. Mr Zainudin Nordin, Mr Seng Han Thong and Mr Wee Siew Kim requested an update on what MOM was doing to help PMETs upgrade themselves. Sir, 2009 was a milestone year for PMETs as far as CET is concerned. There were two key achievements. One, we introduced an umbrella programme called the Professional Skills Programme (PSP) for PMETs. The PSP brought together the entire range of training programmes and services available to PMETs under our CET system. Two, from December 2008 to January this year, around 71,500 PMETs have gone for CET training. This accounts for a third of the 204,000 workers trained under CET in 2009. Yet, our plan going forward is an ambitious one. In 2009, we had 50,000 PMET training places available. We want to increase this to 240,000 by 2015. This is five times the current 50,000 in terms of capacity. And this would mean one in three training places will be designated for PMETs. It is an enormous effort but a necessary step jump. Apart from quantitative changes, we are also making fundamental qualitative changes to the CET system for PMETs in four ways.”
“Sir, Mr Zaqy Mohamad asked about rental and utility costs as part of SMEs' operating costs. In our survey, we observed that for companies in different industries, obviously they have different sensitivity to these two factors of production or cost factors. If we look at utility cost, for some companies in the chemical industry, it is about 40% of their operating costs. But if we look at very light manufacturing, maybe it is just 5%. Likewise, for rental cost, for some companies it is 5%. For some of the retailers in the prime area, it is about 28%. So, obviously, our focus in MTI is to ensure, as the Member said, that there should be enough competition and enough supply – enough alternatives for our small businesses to choose. So, whether it is in utility or rental space, we monitor, and if we think that it is not competitive, then we would work on the supply side.”
“Sir, the short answer to Ms Penny Low's first question is yes, we can look into it. I am surprised that it took one-and-a-half years, as she said, but LETAS is really a very simple programme offering technical assistance and co-funding for SMEs to undertake upgrading consultancy work. The short answer is yes, we will look into it and encourage other qualifying SEs to apply. On the issue of SMEs and SEs going overseas, the concept is good. I do not see how this cannot be doable. But, in practice, it is hard for Singapore companies with complementary strengths to come together and address overseas market opportunities. What IE has been doing is to create the iPartners programme under which about 50 consortiums were formed – encouraging companies of different sizes, following a lead company, to address a specific opportunity. Like the CSR, I think we can encourage but I do not think we can mandate such a relationship to happen. On the third point about whether SPRING can follow EDB's model in the developing the SE sector here, SPRING and MTI's primary objective is still to create jobs through economic activities. To that extent, if SEs qualify, we will support it. If we change this focus, I think it will be wrong for MTI. Having said that, it does not mean that SEs are not worth supporting. So, between MTI, SPRING and MCYS, I think we have got to find a way to support the SEs to the best of our ability.”
“Enterprise development requires active cooperation amongst agencies with complementary expertise. SPRING and IE Singapore will continue to work closely together to support SMEs in raising their productivity in a seamless fashion. I would now turn to Miss Penny Low's query on the role that we can play in supporting the development of social enterprises. MTI's mission is to maximise economic benefits for Singapore. As long as enterprises, including social enterprises, are able to create jobs and contribute to Singapore's economy, upgrading support for productivity improvements will be available to them. In fact, social enterprises can also tap on other assistance schemes provided by MCYS, such as the Comcare Enterprise Fund (CEF). City College Holdings Limited is one example. It is a social enterprise which provides effective and affordable education to private candidates taking GCE 'O' level examinations. Under SPRING's LETAS grant, City College implemented an Academic Information Management System to improve the efficiency of its administrative process. Sir, in conclusion, let me reiterate that the new productivity drive is a national effort that requires everyone to play his part. At the broad level, what the Government can do and will do, is to ensure that we have a conducive environment for all businesses, large and small, to conduct their businesses with ease. Industries and enterprises must take their lead in drawing up their own roadmap towards higher productivity. For those who are ready to rise up to the challenge, the Government stands ready to provide our maximum support.”
“The programme will help SMEs defray the developmental cost of entering new markets, such as fees incurred for engaging distributors, professional services and certification. Mr Wee Siew Kim and Mr Zaqy Mohamad have correctly pointed out the importance of "hunting as a pack" in entering overseas markets. By doing so, companies can complement their product offerings and achieve economies of scale, and hence strengthen their overall competitiveness and maximise their chances of success. I encourage companies to tap on IE's iPartners programme to form and develop such business alliances. Finally, Mr Inderjit Singh has asked if an agency called "Enterprise Singapore" is required to help Singapore companies grow into globally competitive companies. While there may be many benefits to combine several agencies into one, as proposed by Mr Singh, there would also be operating trade-offs too. I think the most important point about his suggestion is that there should be seamless and integrated support provided to growing SMEs, whether in the area of capacity building, internationalisation or productivity enhancement. In fact, in recent years, our economic agencies have been working towards a more seamless service model for SMEs. At the board level, EBD, SPRING and IE Singapore are represented on each other's boards. At the operational level, SPRING and IE Singapore share information on account management of key accounts in key sectors. Certain capacity building programmes, such as branding capability and SME financing, are jointly administered by the two or more agencies. In enterprise development, SPRING serves 3,000 SMEs in 2009. In the same period, IE Singapore provided support to 4,700 companies in internationalisation-related services.”
“By making watches that do not look like a traditional three-hand watch, Azimuth defines a niche for itself. Azimuth's watches retail at between $5,000 and $120,000 a piece. Only five years old, Azimuth has a steady following among watch lovers in Singapore and over 20 countries. 4.15 pm One study shows that the profit from selling a Swiss-made watch is more than selling four cars combined. Of course, if you measure this last year, it may be infinity because most of the car-makers were losing money. If you were a start-up thinking of new areas to venture into, or a precision-engineering firm seeking new markets to specialise, which path would you take? Azimuth's approach is instructive. Several Members – Mr Inderjit Singh, Mdm Ho Geok Choo, Mr Heng Chee How and Mr Zaqy Mohamad – have asked about how we will help SMEs in raising productivity. Well, let me say that the drive for productivity must come from the SMEs themselves. For the willing and determined, SPRING offers a comprehensive range of capability development programmes to assist them. In fact, Mr Liang Eng Hwa earlier has mentioned that 154 schemes can be found on the website. The programmes range from IT upgrading, HR and process innovation, to design, product development, branding and business management systems. In 2009, SPRING helped more than 3,000 companies in the many areas mentioned. We will ramp up our capacities to help at both the firm and sectoral levels. Mdm Ho Geok Choo and Mr Wee Siew Kim asked what we are doing to enable SMEs to internationlise. Going forward, IE Singapore's new SME Market Access Programme will complement its existing suite of schemes to help internationalising SMEs.”
“Much has been said about the "hows" – that is, the efficiency of doing things, or doing things right. But I think it is important to take a step back and ask about "what" – meaning what should we do, or doing the Right Thing. Are we competing based on value creation or on cost efficiency? Let me illustrate with some examples of innovative companies that have done exactly this. Many of us cannot do without our daily staple of kopi-o and soft-boiled eggs for breakfast. But Tippling Club at Dempsey has taken it one step further. They have come up with a fancy cocktail drink based on kopi-o which is served with eggs. To create its menu of unique "food-cocktails", they invested substantially in food science technology and introduced the concept of "molecular gastronomy" to their concoctions. In fact, it was through much research and experimentation that the mixologist discovered that the optimal temperature for the eggs has to be at 62 degrees Celsius – not higher, not lower, to taste its best. With food science as their edge, the Tippling Club creates not just cocktails, but an experience its customers have never had before. Another innovative company is Azimuth. When we think of luxury watches, we think of Swiss brands like Rolex and Patek Philippe. But Azimuth is Singapore's home-grown luxury watch company that designs in Singapore and manufactures in Switzerland. It takes an unconventional route to design. It created the world's first single-hand watch that moves anti-clockwise. So it is not an optical illusion when you look at the watch face. It has another watch that is modelled after a robot. There is even one that has a functioning roulette wheel as a watch dial to commemorate the opening of IRs here.”
“Mr Heng Chee How asked about the development of a centre for research on productivity and innovation. I would like to highlight that SMEs can already access five Centres of Innovation (COIs) set up by SPRING with polytechnics and research institutes. The five centres cover food manufacturing, marine and offshore engineering, environment and water technology, precision engineering and electronics. This sectoral infrastructure, each capital-intensive in nature, allows SMEs to tap on scientific expertise and resources in the form of manpower training, technology consultancy, prototyping and testing to become better in their processes and products. We will study how to strengthen further the existing network of Centres of Innovation or to create new ones if need be. We are studying the modalities and appropriate models for doing so. These centres will do applied research on sector-specific productivity, identify international best practices, and develop productivity benchmarks that benefit the entire industry sector. As many Members have emphasised today and during the Budget debate, boosting productivity does not mean working harder and longer. As Mdm Ho Geok Choo stresses, employers must take the lead, including training their workers to be more skilled and more effective at what they do. Mr Zaqy Mohamad has raised concerns about high costs running counter to our productivity efforts. Given Singapore's size and circumstances, it is inevitable that we will face resource constraints. But this does not mean we cannot create business models that will help us overcome these constraints and prosper. Growing revenue top line and profitability through innovative products and services becomes an imperative. This is why we should shift our focus to value creation.”
“Years ago, I was told that Raffles Holdings Group realised that they were paying high prices for daily consumables such as tissue papers, soaps, combs and other toiletries. So they came up with an idea – to build a web-based purchasing system open to other hotels in Singapore, so that by aggregating demand, they can secure the best pricing from suppliers. One participant recalled that he experienced 10% to 15% savings from using the system. In this case, the leadership of one company in the industry led to the cost savings for all the players. Industry associations can play an important role in rallying their members to secure sectoral productivity gains. Consider, for instance, the Textile and Fashion Federation (TaFf). Many of their members wanted to re-engineer their systems and processes for greater production efficiency. But none were in the position to employ full-time engineers. So what TaFf did, was to train up a pool of engineers and deploy them across their members. As a result, members were able to tap on much-needed expertise in a cost-efficient manner. This is a good initiative on the part of TaFf. We have good mechanisms to support industry associations which aspire to improve. Since 2005, SPRING and IE Singapore have committed $50 million under the Local Enterprise and Association Development (LEAD) programme, to help 22 associations run projects just like the one I have described. The additional $100 million that the Minister for Finance has announced will further scale up the support for business associations. I strongly encourage our associations to work closely with SPRING and IE Singapore to help member companies raise productivity and expand their presence overseas.”
“I think, you are sunset when you think you are sunset. This was possible because SFIC members innovated and transformed. SFIC even created a strategic blueprint describing where they want to be in the next five years. The success of our companies and industries ultimately rests on their own drive, innovation and entreprenuerial effort. Entrepreneurs such as Ron Sim of OSIM and Olivia Lum of Hyflux, established their successful businesses with very little in the beginning and with sheer resourcefulness throughout. The furniture industry in Singapore made the bold decision to renew itself and we have supported them in doing so. For all who are willing to upgrade and innovate, the Government is always ready to support. There are often productivity gains to be found by looking across companies to identify scope for collaboration. One example, raised by Dr Ahmad Magad, would be the sharing of resources such as infrastructure and services among SMEs. Indeed, this is a great way for SMEs to aggregate demand and leverage on economies of scale. Mdm Ho Geok Choo suggested that one such initiative could be the setting up of a HR service outsourcing hub, and to give more focused support to SMEs in this important area. It is a good suggestion which SPRING will look into. Consider the example of hotels and restaurants sector, as highlighted by Mr Heng Chee How. It may be amongst the productivity laggards today. But there is no reason why our hotels and restaurants cannot aspire to become the most innovative, most service-oriented and most technology-savvy in the world. To make this happen, it is crucial that the industry work closer together to pursue common productivity improvements.”
“Economists would call this "creative destruction" – the basis for "disruptive innovation". Mr Low Thia Khiang has asked what the ESC recommendations will mean for low-value activity in Singapore. I think he cited the sundry shop and car repair shop as examples. Well, economical speaking, in any free market competition, the fittest survive. Companies engaged in low-value activities cannot hope to do things the same way as they have been in the past 10 or 20 years. They must upgrade, innovate and focus on value creation, or they will lose their customers to competition. And this is exactly how the furniture industry in Singapore has transformed itself over the years. In 1993, as an EDB Centre Director based in Washington DC, I received an incoming delegation from the Singapore Furniture Industries Council (SFIC). After meeting up, we went on to call on the leading furniture distributors in the east coast of the US, hoping to convince them to "buy Singapore". When SFIC showed their brochures to a leading US furniture retailer, the Vice President receiving us said, "Let's be frank, for furniture of this standard, I can make it in my own garage!" Imagine the shock on our faces then. What a blunt rejection! It was a wake-up call. SFIC came home to Singapore. They went back to the drawing board. The furniture scene in Singapore is completely different today. We have "graduated" out of the space of low-cost manufacturing. Our furniture companies are now moving towards "Original Design Manufacturers". Many market their products under their own brands. Mr Low Thia Khiang, in his speech, asked what is the Government doing for the sunset industry. In this case, what was once a sunset industry in Singapore has been completely rejuvenated and given a new lease of life.”
“I would like to take the opportunity to thank the Action Community for Entrepreneurship (ACE) for their work in promoting an entrepreneurial culture in Singapore. Successive batches of entrepreneurs have contributed to this movement. Today, we celebrate entrepreneurship. We have many more successful role models. There is also a greater social acceptance of entrepreneurship as a career choice among our young and educated. A survey shows that more than 60% of our start-up founders are below 40 years old, and about three-quarters of them have at least tertiary-level education. NUS, NTU and SMU house 120 promising start-ups in their incubators. ITEs and polytechnics run business plan competitions. Even our primary schools have children educated on entrepreneurship programme today. Mr Inderjit Singh, who is a passionate advocate for entrepreneurship, asked if the Government can do more in this area. The answer is: Yes, we can and we will. We clearly must build up our entrepreneurship ecosystem to anchor a critical mass of start-ups, angel investors, VCs and deal-flow network. In an effort to render Singapore as a meeting place amongst business angels from Asia, SPRING Singapore, ACE and the Singapore-based Business Angel Network of Southeast Asia (BANSEA) are organising an inaugural Asian Business Angels Forum today and tomorrow. The forum brings together 150 business angels, entrepreneurs and their respective networks from 14 different countries. In line with this, the newly announced Tax Deduction for Angel Investors Scheme will catalyse more of such investments in our start-ups. A vibrant business environment is not only one where new firms form readily. It is also one where there is a continuous advancement towards higher value activities in a virtuous cycle of renewal.”
“Mr Chairman, let me start by thanking Members who spoke enthusiatically about supporting our SMEs in raising productivity and competitiveness. SMEs, as a group, contribute half of Singapore's GDP and they account for six out of every 10 persons employed. And, yet, they are only half as productive as the average firm in Singapore. There is much room for improvement, and SMEs play a critical role in determining the success of our productivity drive. MTI is committed to supporting SMEs to build up capabilities to raise productivity and increase competitiveness. I will set out MTI's strategy for supporting businesses to raise productivity at three levels. At the national level, we must ensure that our overall business environment remains favourable to large and small businesses alike. At the sectoral level, we will support our industries in working together to address productivity gaps. At the firm level, we will help SMEs build capabilities and create value. At the macro level, we need to ensure that our business environment remains conducive to all businesses. Entrepreneurs must be able to start and grow businesses easily. We have been quite successful in this area. For four years in a row, the World Bank has ranked Singapore as the easiest place to do business, out of 183 economies. And, yet, we must continue to improve. Through the Pro-Enterprise Panel, we have received close to 1,800 suggestions from businesses to cut red tape. We have adopted half of them. We will continue to find ways to reduce, simplify, or to do away with bureaucratic complexities. Mr Liang Eng Hwa asked whether an entrepreneurial culture has taken root in Singapore.”
“Mr Arthur Fong asked the Minister for Trade and Industry with the successful completion of F1 second night race in Singapore (a) what is the revenue generated for our economy as compared to the one held last year; (b) how can we further improve on minimising disruptions to businesses in the Marina Bay area as well as traffic into the city; and (c) whether the Ministry will be working with LTA and the race organisers to address the bumpy track of the Marina Bay Circuit.”
“Mr Speaker, Sir, let me respond to the three questions. The first, whether to include English as a requirement. Well, from the productivity point of view, if the English language or any other language is an additional skill set to help the workers do better at their jobs, certainly, it can be included. Second, when it comes to benchmarking, I think this is an important area that we are doing at the national level. We are also working with industrial associations to understand, for instance, how would the F&B industries in Japan or in Hong Kong achieve their higher productivity in Singapore. Or how would the US and the European counterparts in retail sectors can achieve higher sales per worker or sales per floor area than our Singaporean retailers. I think when we study this, we will find that sometimes the industry structure is different and it may mean intervention at the company level. Sometimes it may mean also intervention at the industry level. As for small companies, we cannot say that all small companies are inefficient or unproductive because the big companies started small. I think if they have the right technology, if they have the right business model, with the right orientation towards export to the world, from Day One, they can be growing very quickly. We have seen many examples of software development and games development business, they either go into the phone or internet gaming that has got worldwide market on the first day they launch the company. So, such companies tend to be able to grow and ride the growth of other key markets quickly. The important point is to introduce greater innovation in these companies so that they can become big one day. FORMULA ONE NIGHT RACE (Economic spin-offs) 17.”
“Indeed, productivity improvement is both the employer's as well as the worker's responsibility. If the business owner or the employer is in the wrong type of business, if they are not able to create new products and services of higher value, if they are not able to diversify away from markets that are too competitive, then there is very limited growth in terms of raising output and value. Likewise, if the workers are not able to acquire new skills, to handle new machinery or processes, or handle technologies introduced in the processes, then our productivity movement will also be retarded. So therefore we need to work on both technology intervention and also on better human resource management within the organisations to help deploy, retain and retrain our workers.”
“Generally speaking, the greater the export orientation of the sector, the higher would be its productivity and it would also record the biggest drop in its productivity level from the peak. This is really because they depend on the market; if the market grows 30%, productivity will rise correspondingly and if the growth drops, it will suffer a bigger cut. However, it is also the export sector that has got higher productivity per worker compared to other sectors. The lower productivity sectors are those that are more domesticated. They are typically found in the retail, construction, hotel and F&B industries. These are the sectors that hire a lot more workers but they are not able to raise productivity very much compared to the export sector. So this is why the Task Force by MTI and MOM have identified this sector to study for productivity improvement. For the hotel, F&B and retail sector, their output is about $10.8 billion last year but they hired 300,000 workers. Obviously if we can make productivity improvement in this pool, it will lead to a far better productivity level for these sectors. Our foreign workers control – I think the various measures are in place and they are governed by different measures from sector to sector and they are designed in such a way that the foreign workers are hired based on the number of Singaporean workers hired. I think there is an elaborate set of measures. Previously, MOM has explained how this worked. However, going forward, I think we can look at how we can improve the quality of foreign and Singapore workers so that all of them are capable of higher output. The Member also mentioned some of the softer skills required for productivity improvement.”
“Sir, I believe the Member is alluding to the drop in productivity in the recent two years. Let me give some numbers to help explain the situation. First of all, productivity numbers fluctuate from year to year. This is true in our records; this is also true in other countries. However, in periods of recession and slowdown, productivity numbers tend to drop even further to negative territories. This happened in the 1997 financial crisis as well as after the dotcom bubble burst in 2001. In the current period, therefore, is not surprising that productivity has dropped. In 2007, there was a record employment growth of 234,900 jobs, and this was far higher than the average of 116,000 jobs created the previous year. This is almost twice the number. So even then, in 2007 when output was growing at 7.8%, it was not able to keep pace with the manpower growth, resulting in negative productivity growth of -0.8%. By 2008, the output growth had moderated to 1.1% and this is really a reflection of the weakness of the global economy. However the total employment growth continued by 221,000 or 8.1%. So therefore, if you divide the two, we saw a sharp decrease in productivity growth of -7.8%. The Member may ask why are the firms recruiting ahead of demand. I think in a free economy like ours, all the firms are recruiting in anticipation of higher output, higher demand and greater volume of business. When these turned out to be not true, the important thing we have to ensure is that in our labour market, there is flexibility for them to downsize and trim the workforce. Indeed, our labour market is one of the most flexible in the world. The Member asked which sector saw the drop in productivity.”