Lee Yock Suan
Singapore
“The position will be clear when the regulations have been drafted. Right now we are debating it in the absence of actual wording of the regulations. The regulations will be fair, they are meant to maintain a level playing field, and we should wait for the regulations before we pass judgement. The intention is not to go after everybody.”
“I think the Member will be aware that Internet is a very dangerous place. We can have all kinds of poison letters and they will just spread like wild fire. So we must have some means to try and minimise this and make sure that everything is orderly and fair.”
“The other Members have no problem supporting the Bill, including Mr Chiam. I think the position is about 95% clear. 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. - [Mr Lee Yock Suan].”
“Then we will have to see the actual situation. But, as I said, the intention is to go after the popular sites, the main sites of parties and non-party political sites. If it is an individual, eg, a young man posting up his own site and saying "These are my views", we are not going to go after those people.”
“The intention is to make the rules clear for the main parties involved in the contest, in other words, the party websites. These are the areas we are mainly after.”
“I thank Mr Chiam for reminding me about his question. On listening to his speech, I was under the impression that he was asking whether this ban on opinion polls applies to the mass media. The answer is yes, it applies to all media, not just the Internet but also newspapers, TV and so on. Thank you for pointing this out.”
The complete record
Every one of 1,595 lines we hold for Lee Yock Suan, in date order, each linked to its source. Free to read, in full, without an account. Page 21 of 32.
“Sir, I have already mentioned that some of the Malays have been participating in continuing education classes. Figures have been given. In terms of the other areas, for example, kindergartens, I think some Malays do enrol in CCs, but the problem is the question of the Malay language. If there is a demand, we may consider also having some classes in Malay. But at the moment, I think this is a problem area. So the participation of Malays are mainly in the cultural, sporting and continuing education areas. Mr Chiam See Tong: What about tuition classes for Malays?”
“The target is to establish at least one Malay interest group in each of the 67 existing modern centres by the end of this year. Another eight modern centres will be completed this year. The PA will also form at least one Malay interest group in each of them next year. The PA will continue to work closely with the Central Council of Malay Cultural Organizations (Majlis Pusat) and other Malay organizations to jointly organize and promote projects and activities for the Malay community. The PA and these Malay organizations have successfully co-organized silat, sepak takraw, Malay draught, singing competitions and other cultural and educational projects. While the PA will continue to promote Malay participation in the management and activities of the community centres, I would like to emphasize the role of the CC as a "melting pot". We are also encouraging Malays and other racial groups to participate jointly in the activities of the CCs because our objective is to build a cohesive multi-racial country.”
“Mr Deputy Speaker, Sir, I am answering this question as it concerns community centres run by the People's Association. Since its establishment on 1st July 1960, the PA and its community centres have been organizing and promoting cultural, sports, educational, social, recreational and other wholesome activities for all racial, age, language and income groups to help build a cohesive multi-racial nation. Within this multi-racial framework, the PA and its community centres have continued to promote Malay participation in the management and activities of the community centres. At the management level, there are 174 Malays or 8.4% out of 2,061 members in the community centre management committees or CCMCs. More Malays will be appointed to the CCMCs. These Malay leaders help the CCMCs to manage the community centres. With their assistance, numerous activities which appeal to the Malays have been organized and many Malay interest groups have been formed. The activities which appeal to the Malays include sepak takraw, silat, Malay draught, Malay music and dance, kompang, hadrah and Malay cooking. More Malays are also attending cultural, continuing education and sports courses in community centres. For example, in 1985, 1986 and 1987, about 11,100, 12,400 and 13,300 Malays attended these courses respectively. The formation of Malay interest groups at the community centres is important because they help to draw large followings. Hence, more Malay interest groups will be formed at the community centres. As of now, there are 186 Malay cultural, sports and interest groups in 44 modern community centres and 15 smaller centres. These groups have a sizeable membership of about 5,700.”
“Sir, my Ministry is in consultation with the NTUC and the SNEF on this matter. It is a complex issue because there are no standard models to follow. So it may take some time for us to study the problem thoroughly, debate it thoroughly before we come to a final decision on how to make the changes. REVISION OF PUBLIC ASSISTANCE RATES The following question stood in the name of Mr Teo Chong Tee - 9. To ask the Minister for Community Development whether the public assistance rates wll be revised upwards.”
“My Ministry will continue to monitor closely safety at worksites through regular and frequent inspections. Our inspectors will work closely with the safety committees and safety supervisors who are responsible for site safety. Further, my Ministry will continue to train and retrain our workers, supervisors and managers so that they are able to practise self-regulation to reduce accidents in the two industries. FORMER ST JOSEPH'S INSTITUTION AND FORMER TAO NAN SCHOOL BUILDINGS (Conversion of) 7. Mr Yeo Choo Kok asked the Minister for Community Development what progress has been made to convert (i) the old St Joseph's Institution into an art gallery and (ii) the old Tao Nan School into a museum for children.”
“Mr Speaker, Sir, the number of serious accidents, ie, fatal or permanent disablement cases, in the shipbuilding and repairing and construction industries has fallen considerably over the last five years. I have asked the Clerk of Parliament to distribute copies of the detailed accident statistics for the two industries. [Copies of Annex (Cols. 1405 - 1406) distributed to Members.] Annex - ACCIDENT STATISTICS (1983 - 1987) (Cols. 1405 - 1406) In the shipbuilding and repairing industry, the number of fatal accidents dropped from 9 cases in 1983 to 7 cases in 1987 after reaching a peak of 13 cases in 1984. The number of permanent disablement cases also decreased from 16 to 8 cases over the last five years. Partly in line with the decline in construction activities, the drop in the number of fatal accidents in the construction industry was even sharper, falling from 65 cases in 1983 to 19 cases in 1987. The number of permanent disablement cases fell from 45 cases in 1983 to 16 cases in 1987. My Ministry will continue its effort to further reduce accidents in these two industries. In the shipbuilding industry, special attention will be paid to the prevention of fires and explosions and of workers falling from heights. Stringent safety measures to prevent such accidents are already in place. Officers from the Department of Industrial Safety will inspect shipyards regularly to ensure that these measures remain effective. They will also continue to check on shipyards to ensure that qualified safety personnel are appointed and that the safety committees are effective. As for the construction industry, the emphasis will still be on the prevention of accidents involving workers falling from heights and workers being struck by falling objects.”
“Mr Speaker, Sir, I am answering in my capacity as the Deputy Chairman of the People's Association. The People's Association is no longer facing any shortage of Organising Secretaries (OSs), Assistant Organising Secretaries (AOSs) or any other category of staff. It was true that in the past, the PA had difficulty in recruiting and retaining OSs and AOSs because of three main factors: (1) Low salary scales. (2) Long and difficult working hours affecting the social life of the staff, especially the young singles. (3) More attractive employment offers from the private sector and other Government agencies. In June 1982, the Government approved an upward revision of the salary scales of the staff, including OSs and AOSs. Since then, more incentives for the staff have been introduced such as loan schemes for housing, renovation, microcomputer and vehicles, medical care, training schemes and other benefits. The salary scales and conditions of service of the PA are now comparable with those in the Civil Service. Since September 1987, the modern community centres are open from 8.30 am to 10.30 pm to better serve the public, particularly the senior citizens, housewives, students and shift workers. This has also allowed more OSs and AOSs to work in flexible shifts. These new working hours are more convenient than working from 2.30 pm to 10.30 pm all the time. COORDINATING COMMITTEE FOR CHARGES, TARIFFS, RENTALS AND FEES The following question stood in the name of Mr Yeo Toon Chia - 7. To ask the Minister for Trade and Industry whether it is feasible to set up a coordinating committee to take charge of, and approve the raising of charges, tariffs, rentals and fees by the various Ministries, Government agencies and statutory boards to ensure Singapore's continued economic growth.”
“All I can say is "Good try, Mr Chiam." I think from now on Singaporean workers will have to listen very carefully to what the Member for Potong Pasir says in the Parliment. Yesterday he advocated that the employer's CPF rate which has been cut from 25% to 10% should not be restored. He seems to have forgotten that workers have endured the cut as a temporary measure to help the economy to recover. Now the Member says there should be no restoration at all. Instead, he held out the idea of using the levy increase to pay local workers higher wages. If you examine this more closely, as I said, it is no more than politicking. Thank you.”
“It will give rise to disputes why certain employers pay one levy and others another. And personally I am not convinced that the employers are really prepared to pay a premium. What kind of premium? For example, if we charge them $340 per month instead of $170, will they still want to recruit foreign workers? I am not sure. What they want are foreign workers at low wages. There is a better alternative for them, and that is, to recruit foreign workers with five 'O' levels and skill. I am prepared to admit them to any sector of the economy. There are also other foreign workers who are already here within the unapproved sectors. My Ministry has allowed them to continue to stay on in Singapore and they are allowed to change jobs if they want to within the unapproved sector of from the unapproved sector to the approved sector, so long as the new work permit is issued one month after the cancellation of the old permit. These are what we call "change of employment" cases. So there are various avenues open for them and, if there are other deserving cases, I can look at them on a case-by-case basis. Finally, this point raised by the Member for Potong Pasir where he had this bright idea that we should use the levy collected to subsidize and pay local workers more. This sound very good on the TV, in the papers. But in actual fact, it is no more than politicking, in my opinion; because if the Government were to forgo the levy and the foreign workers are not subject to CPF, then employers will find the foreign workers much cheaper than local workers and they will tend to hire foreign workers at the expense of the local workers. And if you use this levy, the way it is suggested, will the employers really use the savings to pay local workers more? Or will they just pocket it?”
“In good times the employees are rewarded; in bad times they take a pay cut or have a lower bonus to help the company to tide over the recession. I would just to touch briefly on this idea of a two-tier levy system or tender system. As I said, this is something that we have to look into very carefully. I have just a few immediate reactions. One is that at the moment we do not allow non-approved sectors to recruit any foreign workers. Why? Because they are generally oriented to the domestic market and do not face international competition. If these employers have difficulty getting workers, it may be a question of whether the employer is willing to pay adequately for the kind of work. Since all the competitors within these sectors face the same situation, that means no foreign workers, the market will adjust itself ultimately through pay increase, through passing on the costs, and so on. But these are all domestic market-oriented. It is a fact that these sectors are now able to manage with hardly any foreign workers. So the sectors are like a dry sponge. Once the sectors are allowed to recruit foreign workers, they will soak up foreign workers in large numbers. Then stiffer measures will become necessary to bring the situation under control. Now, we must not make the mistake of thinking that small and medium enterprises are classified as non-priority sectors. For example, supporting industries can recruit foreign workers if EDB supports their applications. However, those small enterprises (barbers and so on) which are oriented to the domestic market are not in the approved sectors, for reasons I have explained. The other consideration is that a two-tier levy scheme will complicate the administration of the work permit policy.”
“It is a progressive fine-tuning of the economic system. The levy is a pricing mechanism, as I have said. If the number of foreign workers, for example, were to fall as a result of economic slowdown,k than the foreign workers' levy can be adjusted downwards. However, if the demand for foreign workers continues to rise sharply, the levy again to dampen the demand for foreign workers. I think Members may not have realized this or may not have emphasized this enough. But it is a fact that the levy if to the benefit of our local workers. It benefits our local workers. We cannot have an uncontrolled situation where more and more foreign workers are willing to come in to work at low wages and as a result, depress our wage levels. As a result of that there would be no incentive for the companies to automate, to upgrade, to move on to higher level activities. The objective of economic development is not just to have more and more jobs, but to create better jobs for our own people. The levy, therefore, acts as an import duty to discourage overdependance on foreign workers. Otherwise employers may tend to hire younger foreign at the expenses of older Singaporean workers. However, I must add a word of caution here. Local workers should not demand excessive wage increases or job-hop. The local wage situation should continue to be moderated so as not to upset the economic recovery, especially now with this prospect of a slowdown in the economy. Our local workers should accept flexible wages which vary with the performance of the company and the worker. This is the best way to ensure that our companies will be able to survive through good times and bad.”
“In fact, in a sense, those companies which are allowed access to foreign workers are privileged because there are many employers which are not allowed to employ foreign workers. These, of course, are the non-approved sectors. Now, the cost impact on the total economy will be very small. I think it is a fact that this Budget contains very little for Members to sink their teeth into. So they tend to zoom in on this particular issue and blow it out of proportion. If you look at the facts, it affects only less than 3% of our workforce. Of course, it will go up as more and more of the foreign workers change jobs and if there are more foreign workers. But the total impact will still be very small. I have estimated that the total quantum of the levy increase, the total increased levy collected a year, is of the order of $10 million. This is really very insignificant compared to the size of our GNP. In fact, if we compare it to the impact of, say, a 1% increase in the CPF rate which affects all the workers, this increase is really nothing. The Member for Whampoa and several others asked the question: why implement this levy increase now when there are fears of slower growth? It is correct that the Government should take a cautious approach. But at the same time we should not be paralyzed into inaction. The number of foreign workers has been rising far too rapidly, as mentioned in the Budget Statement. Last year out of the 48,000 jobs created in manufacturing, more than half were taken up by foreign workers. And even now, despite all the talks of recession, the foreign workers are coming in at a rate of 2,500 or so per month, which would work out to about 30,000 foreign workers in one year. Therefore, certain adjustments have to be made and they have to be made now.”
“The foreign workers' levy therefore serves to dampen the demand for foreign workers. Otherwise, in the current situation with the adjustments in foreign exchange rates of the yen versus the Singapore dollar and the fact that our cost has become very competitive internationally, there is a flood of investments coming in, very labour-intensive investments, so much so that the supply of foreign labour creates its own demand. The more you are liberal with the entry of foreign workers, the more there will be a demand for them. I agree that we must not allow the labour market to become too tight. So we have to perform a very careful balancing act and use the mechanisms at our disposal. It is not only a question of the foreign workers' levy but also a question of approval rate and so on. I must correct a misconception here, that the levy affects mainly local employers. This is not true. It affects mainly employers who depend to a large extent on foreign workers. For example, there are many local employers - banks and other trading companies - who have very few foreign workers. Therefore, the levy increase would have no impact on them at all. I think it is fair that those companies which depend more heavily on foreign workers should be more affected by this measure because they have had more than their fair share of foreign workers. In fact, I think some local companies have complained of limited access to foreign workers. So it is not a question of just the levy alone. As the Member for Chong Boon and the Member for Jalan Kayu have mentioned, we should look perhaps into other systems, and this is something that needs further study. But the ones who are affected are the ones who already have large numbers of foreign workers.”
“Therefore, the levy system favours the recruitment of semi-skilled and skilled workers. The levy is basically a pricing mechanism. It was in fact recommended by the Economic Committee, if you go back to the Report, and we have adopted this method. As the demand for foreign workers rises, the levy has to be raised to dampen the demand. This is looking at it from the overall macro-economic point of view. The Government cannot afford to wait until foreign workers become excessive and then clamp down completely and suddenly. So it has to be a progressive system. Employers should make better use of existing workers and seek out alternative local workers. For example, there are many local housewives who would like to work part-time. Many Members have suggested that we should look further into how to overcome this problem of worker shortage. I take that point and we will have to look at the various measures. In fact, we are looking into how to encourage part-time work and so on. But at the same time we must also dampen the demand for foreign workers because otherwise, as the pool gets greater and greater, it will have various adverse social, economic and even political implications. So long as foreign workers are freely available at low wages, there will be no incentive for our employers to hire older workers, to extend the retirement age, or even to introduce part-time work. For example, we have heard of instances where workers who are above 35 years old are already classified as old. Frankly, I was a bit disappointed yesterday when I heard the Member for Radin Mas stating his opinion that electronics firms can only recruit young workers. How young is young? Is a 35-year old woman too old for employment in the electronics firms? Surely not.”
“Mr Deputy Speaker, Sir, thank you for this opportunity to speak. It seems that Members cannot wait to discuss the budget of my Ministry. I had not intended to join in the debate today. However, as many Members have spoken on the foreign workers' levy, I felt that it may be better for me to respond now, to avoid any misunderstanding. I will, as directed by the Deputy Speaker, only speak on CPF in the Committee of Supply. As I explained in the last Budget debate, the levy is basically a cost equalization measure. It is meant to equalize the cost of employing a foreign worker versus a local worker. As we all know, the foreign workers come from countries where the wage levels are much lower than ours. Unless we have a levy to equalize the cost, the tendency will be for employers to employ more and more foreign workers, possibly at the expense of our own older workers. We must bear in mind that the workers who are on the levy scheme do not pay CPF. Neither do the employers have to contribute CPF on their behalf. Let me give you an example. If an unskilled foreign worker has a take-home pay of $300 per month then, with the existing levy of $140 per month, the total cost to the employer is $440 per month. Similarly for a local unskilled worker, if the take-home pay is also $300 per month, then you can easily calculate that the total cost to the employer, inclusive of CPF, is also $440 per month. Thus, it costs the same to hire the foreign worker or the local worker in this example. The $30 levy increase therefore works out to about 7% cost increase for this particular worker. It is a smaller percentage cost increase for those workers with higher pay, for example, more senior workers, semi-skilled workers or skilled workers.”
“Mr Speaker, Sir, the latest data I have is for the year ending 31st December, 1987. During the year 3,660 workers were retrenched, 40% from the manufacturing sector, 19% from the commerce sector and 16% from the finance and business services sector. This is a significant fall compared with the last two years when 10,000 workers were retrenched in 1986 and 19,500 in 1985. Of the 2,265 retrenched in the first half of 1987, 65% had found jobs by the third quarter of the year - 28% within the first three months of retrenchment and 29% within the next three months. The rate of re-employment improved in the third quarter of 1987 with 40% of those retrenched finding jobs within the first three months. These figures show that most of the workers retrenched in 1987 were able to find jobs within six months. DEBATE ON THE BUDGET STATEMENT (Exempted Business) Resolved, That, notwithstanding the Standing Orders, the debate on the motion for approval of the financial policy of the Government for FY 1988/89 be continued after 4.00 pm until 5.00 pm on the days allotted for the debate and the proceedings thereon be exempted from the provisions of Standing Order No. 1 until 5.00 pm on each day. - [Dr Richard Hu Tsu Tau]. ANNUAL BUDGET STATEMENT 11.22 am Order read for Resumption of Debate on Question [4th March, 1988], "That Parliament approves the financial policy of the Government for the financial year 1st April, 1988 to 31st March, 1989.". - [Minister for Finance]. Question again proposed.”
“The number of posts in the public sector has increased by about 1,000 over the last 10 years due to the expansion or introduction of new services. The number of nurses for the private sector has also increased by about 800 since the early 1980s due to the expansion of existing hospitals and the opening of the National University Hospital. This demand by the private sector has been met mainly by the recruitment of nurses from the Ministry of Health. Last year, my Ministry lost 392 nurses, the majority of whom resigned to join the private sector for a better salary. To meet the increased demand, my Ministry needs to recruit 400 Student Nurses and 200 Pupil Assistant Nurses each year to meet the needs of the public and private sectors. Last year, the Ministry was able to recruit only 321 Student Nurses and 164 Pupil Assistant Nurses. To overcome this shortage, my Ministry is currently holding discussions with the Ministry of Finance to improve the salary scales for nurses. We hope to get a positive decision on this matter soon.”
“Mr Speaker, Sir, a small number of workers who receive compensation under the Workmen's Compensation Act are totally incapacitated. The vast majority suffer from minor injuries and are able to return to work. Injured workers who have difficulty in finding work can register with the Ministry's Employment Service Department. The Workmen's Compensation Department also calls up those who are more severely injured and who may need assistance in seeking employment. Past experience has found very few such injured workers needing assistance. In 1987, in fact, none asked for assistance to seek employment. The Workmen's Compensation Act was last reviewed in 1980. My Ministry is conducting another review to assess whether compensation provided for under the Act is adequate and whether changes need to be made to the Act. SHORTAGE OF NURSES (Measures to overcome) 6. Dr Aline K. Wong asked the Acting Minister for Health (a) whether the present salary scale for nurses is a major reason for the shortage of nurses in government hospitals and clinics; and (b) what is his Ministry doing about the salary structure for nurses. The Acting Minister for Health (Mr Yeo Cheow Tong): Mr Speaker, Sir, the present salary scale for nurses is one of the main reasons for the present shortage of nurses in Government hospitals and clinics. The salary scale is generally poor. As a result, school leavers with the appropriate qualifications prefer to take up other training courses or seek employment in other professions which offer better remuneration or working conditions. In recent years, there has been an increased demand for nurses from both the public and private sectors.”
“Mr Speaker, Sir, to-date, a total of 321 designated factory doctors have been registered under the Factories Act. Compulsory medical examinations are required for factory, construction and certain other workers who are exposed to the following occupational hazards:- Compressed air environment; excessive noise; arsenic, cadmium, lead, mercury, manganese or any of their compounds; organophosphates; asbestos; benzene; raw cotton; silica; tar, pitch, bitumen, creosote; and vinyl chloride monomer. The numbers of factory workers examined between 1985 and 1987 under the Factories (Medical Examinations) Regulations 1985 are as follows: Year No. of Workers ---- -------------- 1985 25,800 1986 34,100 1987 33,200 There are currently no new occupational hazards proposed for inclusion under the Act. ASSISTANCE TO INJURED WORKERS 5. Mrs Yu-Foo Yee Shoon asked the Minister for Labour whether he is aware of the plight of workers who, though having been compensated for industrial accidents, are still unable to work; and if he will review the Workmen's Compensation Act with a view to assisting these workers.”
“Mr Speaker, Sir, the Government has not decided to amend the Employment Act to extend maternity benefits to female employees bearing the third child. This was considered during the formulation of the package of incentives to encourage procreation under the new population policy. Instead of paid maternity leave, it was decided that a tax incentive should be given to working mothers who have to take unpaid maternity leave for their third child. Such working mothers can now claim additional tax rebate equivalent to 15% (or about two months) of their annual earned income. The maternity provisions in the Employment Act should therefore be viewed in the context of the total package of incentives to support the new population policy. Under the Employment Act, collective agreements can only provide for maternity benefits in respect of the first and second children. APPROVAL FOR MARRIAGE TO FOREIGNERS (Entitlement to stay in Singapore) 10. Dr Koh Lam Son asked the Minister for Community Development what steps he will take to dispel the general misconception that an approval for marriage, by the Registrar of Marriages, to a foreigner will entitle the latter to stay in Singapore.”
“Sir, the statistics requested by the Member are not available as my Ministry does not categorize employers in the manner requested. I would, however, like to assure the Member that within the broad guidelines of our foreign workers policy, companies may be permitted to recruit foreign workers irrespective of whether they are small, medium or large, local or foreign. Companies are differentiated not by their size or who their shareholders are but by the nature of their operations, whether they are export-oriented and whether they can contribute to the upgrading of our economy. Under the existing policy, foreign workers are allowed in the manufacturing, hotel, construction and domestic service sectors. Confectioneries and motor workshops do not belong to these sectors. As for restaurants within hotels, they are granted work permits as they clearly form part of the hotel industry. Restaurants outside hotels are more oriented to the domestic market. However, where they are directly serving the tourist industry and paying the 3% tourism cess, they may also be allowed to recruit a limited number of foreign workers. The Singapore Tourist Promotion Board decides which restaurants will qualify under its criteria. MATERNITY BENEFITS FOR FEMALE EMPLOYEES BEARING THIRD CHILD (Legislation) 9. Dr Wong Kwei Cheong asked the Minister for Labour (a) when amending legislation will be introduced to extend maternity benefits to female employees bearing the third child; and (b) if the Government will take steps to encourage the private sector to amend collective agreements to include such maternity benefits.”
“Sir, the preference of the PA is to locate the temporary centre in shophouses because, from experience, we have found that it is rather difficult to use the void deck centres once the PA has vacated them and moved into the modern centres. As far as possible, we would like to locate the temporary centres in shophouses. TEXTILE QUOTA AUCTION SYSTEM (Impact on garment industry) The following question stood in the name of Mrs Yu-Foo Yee Shoon - 11. To ask the Minister for Trade and Industry what impact the introduction of the Textile Quota Auction System has on the garment industry.”
“Mr Deputy Speaker, Sir, I am answering in my capacity as Deputy Chairman of the People's Association. The People's Association plans to set up a temporary community centre at two shop units at Block 235 Yishun Ring Road by about June 1988. The Member for Nee Soon will be consulted on this before the centre is built.”
“Mr Deputy Speaker, Sir, my Ministry does not take any action against the children of couples who have breached the marriage policy. However, where these children are not Singapore citizens, they are subject to immigration rules applicable to non-citizens. YISHUN NEW TOWN (Sports Centre) 9. Dr Koh Lip Lin asked the Minister for Community Development whether and when a sports centre will be built in Yishun New Town.”
“Whilst sympathizing with them, our policies must be geared to protect the interests of the vast majority of Singaporeans who live on this small island. If our immigration and work permit policies are too liberal, we run the danger of being swamped by many potential immigrants who wish to seek a better life here. Coming to Question No. 8, Sir, for the years 1985 to 1987, my Ministry received a total of about 5,000 applications for marriage between Singapore citizens and work permit holders who were not permanent residents. About 70% of them were approved. Marriage approvals are given to work permit holders who have skills or qualifications of value to Singapore and who have adapted to our way of life. I will consider appeals on their individual merits.”
“The policy concerning marriages between work permit holders with Singaporeans has been in force since 1973. As a condition of their work permits, foreign workers are required to obtain the approval of the Commissioner for Employment if they wish to marry Singapore citizens or permanent residents. Approval is granted if the foreign worker has skills or qualifications that are of value to Singapore and has adjusted to our social and work ethos. If a work permit holder violates the policy and contracts marriage with a Singaporean without the approval of the Commissioner, his work permit will be cancelled and he will be banned from entry into Singapore. The entry ban has been made a permanent one since July 1984. We have to control marriages between work permit holders and Singaporeans because our work permit policy allows liberal entry of large numbers of foreign workers to ease our labour shortage. Most of these foreign workers are unskilled and unqualified. Under normal immigration controls, they would not have been allowed into Singapore for extended periods of stay, let alone given opportunities to sink roots through marriages with Singaporeans. Their purpose here is to seek employment and they are allowed in on a short-term basis as part of a revolving pool of foreign workers. Between 1978 and 1984, before the implementation of the permanent entry ban, 3,072 or an average of 440 work permit holders per year had breached the marriage restriction policy. Since the implementation of the permanent ban in July 1984, the number who have contravened the policy is 692, an average of 200 per year. The policy, which has been in force since 1973, is well known to the public. Those who choose to violate the policy have to live with the consequences.”
“Mr Deputy Speaker, Sir, may I have your permission to answer Questions Nos. 7 and 8 together as they are closely related?”
“Mr Speaker, Sir, I do not have the figures here. But to my knowledge, very few, I think practically none, have been denied work permits because there are plenty of jobs available. The basic point is that there are fundamental differences in the rights and responsibilities of permanent residents and citizens. For example, permanent residents do not have to do national service, unlike citizens. So I think we should maintain some areas of differences in terms of the rights of permanent residents. SINGAPORE DOLLAR 10. Mr S. Chandra Das asked the Minister for Trade and Industry what is the impact of the strengthening of the Singapore Dollar on the economy, particularly on new investments, exports and tourist trade.”
“Mr Speaker, Sir, the Regulation of Employment Act requires all non-citizens seeking employment in Singapore to apply for work permits if their salary is not more than $1,500 per month. Singapore permanent residents, being non-citizen therefore need to have work permits to work in Singapore if they earn less than $1,500 per month. Work permits of 3 years' duration are issued liberally to Singapore permanent residents. They are allowed to work in all sectors of the economy and are not confined to the manufacturing, hotel, construction and domestic service sectors as in the case of foreign workers who are not Singapore permanent residents.”
“As for private homes, I have answered this before. They tend to be too lumpy, $1 million, $(r) million and so on. It would be difficult for the CPF to cover it under HPIS because the claims could be very big in certain cases. I think those home owners are generally well off and they should buy their own private insurance. As to whether the Scheme is reinsured against catastrophe, the answer is yes. There is a reinsurance scheme for up to $10 million. On average, this will cover about 500 lives because the average per claim is about $20,000. In the event of a catastrophe, say, many people are injured, so long as the number of claims exceeds 10, then the reinsurance scheme is activated. So the CPF Board and the HPIS fund are protected against catastrophe. Sir, I think I have covered all the points,including that of the Member for Ayer Rajah. 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. - [Mr Lee Yock Suan]. Bill considered in Committee; reported without amendment; read a Third time and passed. SINGAPORE TURF CLUB (Allegation of Member for Potong Pasir)”
“There is no intention to widen the Scheme to cover non-residential property because the Scheme is labelled Home Protection Insurance Scheme. So it is only meant for homes.”
“It is not meant for variations in between where the illness may be less than permanent. So the intention is to limit it to those two kinds of risk. It is feasible to extend it to other forms but it will make the Scheme much more complicated and it will increase the premium as well. As a social insurance scheme, we are only covering two kinds of risk, death or permanent incapacity. In this light, there is no advantage in amending the two-year period to one year. Because in some cases you need as long as two years to be really sure. I take the point of the Member for Ulu Pandan that we should try and settle it as soon as possible. I have to look into that particular aspect. Upon a claim, as soon as the CPF Board is satisfied that there is a good case, I think the Board should pay the instalments for up to a period of two years. If at the end of two years the incapacity is truly permanent, then the Board will settle the balance of the loan. This is the situation. This is how we are going to operate. There is no need really for us to lower the period from two years to one year. In fact, if the Board is satisfied at the outset that the incapacity is permanent - the person has damaged his spine so that he can never walk again, or he is blinded in both eyes, for example - then the intention is not to hold back the settlement but to settle as soon as possible. But in cases of doubt, we will just pay for two years and at the end of two years reassess the case. The Member has gone through the Bill very carefully. He noticed that we changed from "house or flat" to "immovable property". This is purely a drafting change. The wording has to be standardized and made similar with other parts of the Act.”
“The other point is that I think there is no need for us to adopt a complicated rating system to assess the degree of illness, premiums, and so on. The Scheme is to cover everybody, except those who are terminally ill or permanently incapacitated. Another question is, now that we allow the CPF of a spouse to be used for another spouse who is a non-CPF member, can we extend this concession also to parents and siblings? This question is something that can be expected. Each time we liberalize the CPF scheme somebody will come and say, "Why not more of this and more of that?" I think the basic concept is that we are trying to protect the family of the home purchaser, the dependants in other words. It is meant for the family nucleus - the husband and wife - so that in case the husband passes away and he is the breadwinner, the family is not left in a lurch. But where it is a joint ownership between an aged parent and a child, I think it is quite a different situation. So there is no intention for us to widen the scope here. But if both parent and child are CPF members, they can both be covered under the Scheme. All joint owners can be covered. It is only the extent to which the CPF can be used, whether the CPF of one member can be used for another. In that situation we limit only to husband and wife as in the present Bill. The fourth point is about permanent incapacity. Can the two years be reduced to one year? The point is this. When they claim permanent incapacity, often after a serious accident, the doctor will assess and will certify in the case of permanent incapacity, but later on we discover that, in fact, it is not so. The Scheme, as it is now, is basically a life insurance scheme meant only for two kinds of risk - death or permanent incapacity.”
“We are going to get the members to sign a declaration when they join the Scheme that they are not suffer- ing, say, from liver cancer or kidney failure, or of illnesses where they have been advised by their doctors they may die within a year or so. But all other cases would be covered. Of course, the other group will be those who have met with traffic accidents and are perhaps bedridden, completely paralyzed, and can never work again. So in those situations they are not allowed to join the Scheme. Otherwise it would be like giving charity. I mean, they join the Scheme knowing that they will get the money. I think the point must be made that this HPIS is not a charity. This is money contributed by all the CPF members under the scheme and put into a common pool so that in the event of death or permanent incapacity their families are protected. The third question raised by the Member for Pasir Panjang is the implementation date. The intention is to implement these amendments as soon as possible. I expect it to be in the first quarter of next year, on or before the 1st March. The Member for Radin Mas raised several points. First, concerning the existing members. There are cases where the wife is the one who has some CPF money and the Act at the moment covers only the wife, because the husband is not a CPF member. He may be a taxi-driver, for example, and is therefore not covered under the Scheme. So the intention of this amendment is to cover these people who are not members of CPF. If there are cases like this, they will be covered by the Act, even though there is already an insurance policy. The policy will be varied to cover those deserving cases. The point about ill health has been covered.”
“In other words, they based it on a conservative basis that within the population of persons insured, there could be some who were already seriously ill. But having operated the Scheme for six years now, it is time to improve it and stop these abuses. It is through such prudent measures that the Board has been able, when it makes a good surplus of the Scheme, to give a refund. In 1986, I think there was a refund of $38.5 million to the CPF accounts of members who were insured under the Scheme. If, in future, again there are big surpluses, maybe we can expect future rebates. But this is only possible provided the Scheme is confined to its purpose and there are not any further abuses of the Scheme. I think that answers the point from the Member for Whampoa. Coming now to the points made by the Member for Pasir Panjang. He asked whether it is possible to extend the Scheme to cover members beyond the age of 55. This point has been considered. But the thinking of my Ministry is that there is no need at the moment. The vast majority of CPF members would have paid up their housing loans long before they reach 55 years. They are aware that as of now most of them in the private sector have to retire at 55 and that they can withdraw their full CPF at 55. So there are few CPF members who have housing loans extending beyond age 55. In any case, the sums outstanding are generally quite small and these people would have children who can help them in case they die and the housing loan has to be serviced. But we may review this situation in future. Of course, if we extend the Scheme to older members, then the premium would have to be much higher because the risk of death is much higher. The second point was about ill health, what kind of illnesses. I think I have explained this.”
“Mr Deputy Speaker, Sir, I thank Members for their comments. I get the general impression that they support the Bill although there were some critical remarks made. I will answer the points in the order they were raised. Firstly, the point made by the Member for Whampoa: did the CPF Board overlook something when they first introduced the Scheme? Why do they require medical examination at such a late stage? No, the Board did not overlook such a requirement. The reason was a practical one. When the Scheme first started, we had a flood of members. I mentioned the figure of 300,000 home owners. So for practical reasons, it was not possible to require all of them to go for medical examination. Secondly, the Scheme is meant to be a social scheme to insure as many people as possible. The intention is not to cut out all, except those who are in perfect health. It is, in fact, the reverse: to try to insure everybody, except those who try to abuse the Scheme on the basis that they already knew they were suffering, say, from liver cancer or kidney failure. And because the Act has been worded in this way, a member could abuse it by, for example, selling his old flat and buying a new one, getting immediate allocation of, say a flat in Yishun, which is worth much more than he can afford really and then taking up a big insurance under the HPIS, and within two or three months he passes away and the Scheme has to pay out. In actual fact, there have been some cases like this, fortunately not too many. But it is time we stopped these abuses. The HPIS Scheme was, in fact, initially designed with the knowledge that this sort of cases could arise.”
“The first was admitted by the Minister for Finance in regard to the Totalisator Board when it took a long time for the Government to realize that there is this huge sum of money available and in private hands. The second oversight is in respect of clause 4 of this Bill to provide for the new section 25A, regarding the requirement now for new members of the housing protection scheme to undergo a medical examination. I am very surprised because I would have thought that any insurance programme would have required this in the first place of anyone wanting to join the programme. Could it not be that the CPF had determined from the statistics that if it covered everybody in the process it could afford to carry cases where people were already terminally ill? Why now the change of mind? And what about those who are already admitted to the Scheme? How many of them are on the point of dying and would cost the Board some money as a consequence of this oversight?”
“Members who are certified to be terminally ill or permanently incapacitated will not be admitted to the Scheme. Members who sign a false declaration will have their claims invalidated. This health requirement will not apply to existing members who are already insured under the Scheme. The new section 29(2) empowers the CPF Board to pay initially only the monthly loan instalments for a period not exceeding two years where a member makes a claim on the grounds of permanent incapacity, for example, from a traffic accident. The Board will settle the outstanding housing loan completely after the two years if a doctor certifies the incapacity to be truly permanent. In the early stages it may be difficult for a doctor to be completely sure that the incapacity is permanent in the sense that the person will never be able to work again. At present, the Act specifies that premiums are payable only one month after a member has signed the loan agreement or made a withdrawal to service his housing loan. As insurance cover under the Scheme only takes effect upon payment of the premium, there is a one-month gap before coverage begins. As a result, some deserving cases have missed the insurance cover. The amendment enables members joining the Scheme to be covered on the date of commencement of the housing loan or possession of the property, whichever is earlier. In the case of home purchasers who did not use CPF to service their loans in the earlier stages, insurance coverage will begin when they start to draw on their CPF. Sir, I beg to move. Question proposed. Dr Augustine Tan: Mr Deputy Speaker, Sir, I rise to protest for the second instance in the same day - that the Government has overlooked something very important.”
“The ordinary members will continue to enjoy full protection under HPIS in the event of premature death or permanent incapacity. However, no one should be allowed to abuse the Scheme at the expense of other members. I shall now highlight the main provisions of the Bill. Clause 3 of the Bill amends section 25 of the principal Act so that only those members who are responsible for servicing the housing loans (ie repaying the loan instalments) will be covered by the Scheme. The amended section 25 will also allow the Scheme to cover any non-CPF member who is jointly servicing a housing loan with a CPF member. At present, the Scheme covers only CPF members even though it may be a non-member who is responsible for repaying the bulk of the housing loan. Without the new provision, the family will lose its home if the non-CPF member dies prematurely or is permanently incapacitated. The new subsection 25B(4) will allow a member to use his CPF contributions to pay for the premiums of his spouse if the spouse is a joint-owner insured under the Scheme. This will facilitate the payment of premium for the spouse who is not a CPF member. The total sum insured will be the outstanding amount of the loan. At present, members joining the Scheme are not required to undergo a medical examination. Neither are they required to declare their state of health. Consequently, it provides a loophole for some members to take advantage of the Scheme. The new section 25A will prevent such abuses. With the amendment the CPF Board will be able to require all new members who join the Scheme in future to sign a health declaration and, if the Board considers it necessary, to undergo a medical examination.”
“Mr Deputy Speaker, Sir, I beg to move, "That the Bill be now read a Second time." The purposes of this Bill are two-fold. Firstly, to improve on the Home Protection Insurance Scheme (HPIS) and, secondly, to safeguard against its possible abuse by CPF members at the expense of other members. Introduced in 1981, the HPIS insures CPF members who have taken loans to purchase HDB or HUDC flats. It protects such CPF members and their families from the risk of losing their homes in the event of the members' premature death or permanent incapacity. The Scheme has benefited many CPF members. At the end of October 1987, a total of 373,000 members were insured for a total sum of about $7.5 billion. So far, about 2,000 members or their families have claimed a total sum of $26 million under the Scheme. Although the HPIS has functioned smoothly, it can be further improved. Two proposed changes will enable the Board to: (a) provide insurance cover to non-CPF members who are joint-owners of the HDB or HUDC flat and who are responsible for servicing the bulk of the housing loans; and (b) provide insurance cover to the members as soon as practicable. The Board has also detected weaknesses in the present Scheme which could lead to abuse if left unchecked. These weaknesses are: (a) A few members who knew they were suffering from terminal illnesses could have arranged maximum loans for their flats and insured them under HPIS just before they passed away. (b) There is no time limit for members to pay their premiums. As a result, some could delay their payment until they are seriously ill. (c) There have been instances of members who claimed HPIS on the grounds that they were permanently incapacitated from ever working again. They subsequently recovered and returned to work.”
“55 pm PARLIAMENTARY ELECTIONS (AMENDMENT) BILL "to amend the Parliamentary Elections Act (Chapter 218 of the 1985 Revised Edition)", presented by the First Deputy Prime Minister and Minister for Defence (Mr Goh Chok Tong); read the First time; to be read a Second time on the next available sitting of Parliament, and to be printed. CONSTITUTION OF THE REPUBLIC OF SINGAPORE (AMENDMENT NO. 2) BILL "to amend the Constitution of the Republic of Singapore", presented by Mr Goh Chok Tong; read the First time; to be read a Second time on the next available sitting of Parliament, and to be printed. LAND ACQUISITION (AMENDMENT) BILL "to amend the Land Acquisition Act (Chapter 152 of the 1985 Revised Edition)", presented by the Second Minister of Law (Prof. S.Jayakumar); read the First time; to be read a Second time on the next available sitting of Parliament, and to be printed. CHILD CARE CENTRES BILL "to provide for the control, licensing and inspection of child care centres and for purposes connected therewith, and to repeal the Creche Establishments Act (Chapter 66 of the 1985 Revised Edition)", presented by the Minister for Community Development (Mr Wong Kan Seng); read the First time; to be read a Second time on the next available sitting of Parliament, and to be printed.”
“Mr Deputy Speaker, Sir, my Ministry has been closely monitoring safety in the construction and the shipbuilding and repairing industries. Regular and frequent inspections are being carried out at worksites and shipyards. For the first nine months of this year, about 3,400 inspections were made on worksites and 1,000 on shipyards. For the construction industry, accidents of workers falling from heights and workers being hit by falling objects are still the two main areas of concern. To prevent these and other accidents at worksites, contractors are required to draw up and implement various safety programmes. Implementation of these programmes is closely monitored by inspectors of the Department of Industrial Safety. They also keep a close watch on the work of safety committees and safety supervisors who are responsible for ensuring safety at worksites. For the shipyards, the emphasis is on the prevention of fires and explosions and falling from heights. Stringent safety control systems have been implemented to prevent such accidents. Inspections are made to ensure that they remain effective. Checks are also made to ensure that shipyards appoint qualified safety personnel and that the safety committees are effective. My Ministry pays particular attention to provide safety training for workers, supervisors and managers in the construction and the shipbuilding and repairing industries. Special efforts are also made to promote self-regulation to reduce accidents in these two industries. BILLS INTRODUCED 12.”
“Mr Deputy Speaker, Sir, factories employing 50 or more workers are required to form safety committees. So far, 690 or 93% of these factories have formed them. Of the 50 or so factories that have yet to form safety committees, about half of them are new factories which have been established less than six months ago. Most of these are in the process of forming safety committees. My Ministry provides assistance to those factories that have difficulties in forming safety committees. Enforcement action is taken against those that persistently fail to do so despite warnings. The Department of Industrial Safety closely monitors the activities of the committees to ensure that they discharge their functions as prescribed in the Regulations. It also provides assistance and guidance to the committees when needed. NURSES IN GOVERNMENT HOSPITALS (Measures to solve shortage) 20. Mr Teo Chong Tee asked the Acting Minister for Health (a) whether there is a shortage of nurses in each of the Govern- ment hospitals; (b) whether the shortage has somewhat affected the service provided to in-patients; (c) what measures are being taken to recruit and train more nursing staff; (d) whether the status of the nursing profession will be upgraded; and (e) why nurses are being deployed to perform some administrative functions as seen in the frontline areas of Government hospitals.”
“My Ministry has published a series of wage reform models in our "Labour News" for reference by companies. The Singapore National Employers Federation has also published a compendium of wage reform models. My Ministry, NPB, SNEF and NTUC are available to provide assistance to companies and unions if they need help to reform their wage systems. FACTORY SAFETY COMMITTEES (Compliance with Regulations) 19. Encik Abbas Abu Amin asked the Minister for Labour, since the introduction of the Factories (Safety Committee) Regulations, 1975, (a) what percentage of factories, which are required to set up safety committees, have complied with the Regulations; and (b) what measures his Ministry has taken to ensure compliance with these Regulations by all affected factories.”
“Sir, to monitor the progress of wage reform, my Ministry recently conducted a survey covering 1,048 establishments, including 62 non-unionized companies. As at 31st October 1987, of the 881 companies that responded, 109 companies or 12% have successfully implemented flexible wage systems. 31 companies or 4% are satisfied with their present systems, while another 50 companies or 6% indicated that they are refining their systems to make them more flexible. 252 companies or 29% are negotiating with their respective unions. 337 companies or 38% are studying how a flexible system could be implemented. The remaining 102 companies or 12% have yet to come up with plans to reform their wage systems. Thus about 50% of the respondents have implemented or are negotiating with their unions to implement wage reform. Of the remainder, the majority are considering what flexible wage system to adopt. The sample of non-unionized companies is relatively small. 42% of them already have flexible wage systems or are refining their existing systems compared to 20% of the unionized companies. It would appear that some non-unionized companies are able to change over to flexible wage systems more expeditiously partly because they do not need to wait for collective agreements to expire. Their annual increments or wage increases for their employees are often determined annually. Whether unionized or non-unionized, companies that have yet to implement wage reform should quickly work out flexible wage systems with their unions or employees while the conditions are still conducive. Otherwise they will miss out a chance to enhance their competitiveness and the job security of their workers. To help companies develop their flexible wage systems, various seminars have been conducted.”
“There are various training schemes, for example, by the NTUC, the VITB and others. It is a question of the older job seekers being willing to adjust and learn new skills. I think the problem involves both the employers and the employees. On the one hand, we have instances of employers who are unwilling to employ older workers. On the other hand, we find that some of the older job seekers tend to stick to their previous salaries which are above the market value or their skills are no longer relevant to the current situation. If they are willing, they can come to my Ministry. We will try and find them jobs. Or they can go to my Ministry or the NTUC for assistance to find suitable training schemes. US TRADE IMBALANCE 11. Mr Goh Chee Wee asked the Minister for Trade and Industry (a) what is the Government's response to the recent statement by the Assistant Secretary of the United States Department of Treasury, blaming Singapore and the other Asian NICs for the US trade imbalance, and accusing Singapore of manipulating the exchange rate of the Singapore dollar to gain an unfair trading advantage; and (b) whether this move by the US government is related to its attempts to graduate Singapore prematurely out of the GSP scheme.”
“Sir, I do not have the figure, but I will take up his comments.”
“The best way of ensuring that our workers, young or old, remain employed is through economic growth and the creation of new jobs. Older workers must be prepared to learn new skills and to adapt to changing job requirements. The experience of the last recession has shown that older, less educated workers are particularly vulnerable to unemployment because they lack relevant skills and the ability to learn new skills.”
“Mr Deputy Speaker, Sir, with the economic recovery, the unemployment rate has declined across all age groups. For September 1987, the estimates were: 4.0% for those below 30 years old, 2.8% for those 30-39 years old, 3.6% for those 40-49 years old and 4.0% for those above 50 years old. These rates are still higher than those prevailing in the early 1980's when the unemployment rate for those above 30 years old was about 2%. Consequently we have more older unemployed persons today than in the early 80s. For example, an estimated 13,000 or 30% of the unemployed persons in September 1987 were above 40 years old compared to 5,200 or 15% in 1980. Older unemployed persons tend to remain unemployed for longer periods than the younger ones. The median duration of unemployment in June 1987 for those between 40-49 years old was 28 weeks compared to 12 weeks for those below 30 years old. Older persons thus have greater difficulty securing jobs once they become unemployed. They are less adaptable and find it difficult to accept lower pay. This is exacerbated by our traditional seniority-based wage system. In the longer term, as more companies reform their wage systems and relate salaries more closely to the worth of the jobs, hopefully this problem will be reduced. One other area which we have been monitoring is the preference of employers for younger workers, evident in those job advertisements in the newspapers where upper age limits are specified. Many advertisers have agreed to remove the upper age limits. My Ministry will continue to monitor the situation and to urge employers not to rule out older job-seekers based on age alone but to give them a fair chance of being considered for the jobs.”
“Sir, Singapore has recruited foreign workers from numerous sources. The vast majority are from Malaysia and the other Asean countries. A small number are from India, Sri Lanka, Bangladesh, South Korea, Hong Kong, Taiwan and the People's Republic of China (PRC). The number of workers from the PRC is kept small and manageable. EMPLOYMENT OF OLDER WORKERS (Situation) 10. Mr Abdullah Tarmugi asked the Minister for Labour what is the latest situation concerning the employment of older workers and what further plans his Ministry has to assist these workers to stay in employment.”