Lim Boon Heng
Singapore
“On the first question on foreign domestic worker levy relief for single women who are looking after their aged parents, I think that question should be addressed to the Minister for Manpower and the Ministry of Finance.”
“I shall address the second point first. When it is clearly an item for a Ministry, a Member should address that question to that Ministry because that Ministry is also responsible for that even if it is related to ageing.”
“For those who wonder what the Fourth Age is, it is basically the last couple of years of your life when you are afflicted by, perhaps, chronic illnesses and therefore need to be cared for.”
“The Wellness Programme applies to all estates. In the pilot project, we deliberately chose 12 pilot sites to reflect different mixes. For example, we chose Ulu Pandan, which has a lot of private estates.”
“Maybe MCYS and the PMO could really look into these RC centres to see whether they could incorporate some of the needs of the elderly in these centres as well, like an extra area for karaoke or even mahjong. This area should be quiet and enclosed because the elderly sing loudly as they cannot hear very well.”
“The process has already started. We are already debating this issue in Parliament. The unions have taken up the issue with the management. I know and I am aware of that. So, let the process take its course.”
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“Currently, there is no provision in the SISIR Act to give the Institute exclusive right to the use of its symbol and to impose a penalty on those who violate this principle. As the SISIR symbol increasingly represents to the public an assurance of good quality, we need to guard against anyone being misled by improper use of the symbol. A new section 33 is therefore introduced to provide for a maximum penalty of $2,000 for misuse of SISIR's symbol. For similar reasons, there is a need to update the maximum penalties imposed for improper use of any of the SISIR marks. Section 43 has been amended to increase the maximum penalty from $10,000, which was introduced in 1973, to $50,000. This penalty will now also apply to persons who forge or, without lawful authority, alter a test report or certificate issued by SISIR. The general penalty for contravening any provisions of this Act or any regulations made under it has also been revised from $2,000 to $5,000. Section 28 is amended to expand SISIR's power to raise loans, including temporary loans and overdrafts, to provide for greater flexibility in view of the Institute's extended role. The existing sections 25 and 29 to 32 governing the manner and procedures by which the Institute's audit of accounts and financial statements should be presented are amended to incorporate the standard requirements on audit matters as stipulated by the Auditor-General for all statutory boards. These are reorganised as a new Second Schedule. It is intended that the amendments come into operation with immediate effect. Sir, I beg to move. Question proposed.”
“Specific provisions are made to allow the introduction of schemes of standardisation and certification, such as the Singapore Quality Mark, the Good Manufacturing Practice Mark, the SISIR ISO 9000 Certification Scheme and the Singapore Laboratory Accreditation Scheme Mark, and other new schemes that SISIR may introduce in the future to support its mission. A provision is also included to enable SISIR to form companies and enter into joint ventures for the purpose of commercialising its R&D results and, where appropriate, to spin off certain services to the private sector in order to subject them to the discipline of the marketplace. The opportunity is also taken to update the Act to bring it in line with that of other statutory boards and to provide for greater administrative flexibility. Part of section 2 and all of sections 5 to 10 of the Act, which refer to the constitution and proceedings of the Institute, have been reorganised as the First Schedule to govern the constitution and proceedings of the Institute. Amendments are introduced to provide greater administrative flexibility to members of the Institute. This is in line with the flexibility given to other statutory boards. The present provision under section 24(3) restricts SISIR by allowing investment in accordance with the law regulating the investment of trust funds only. This is amended to enable money belonging to the Institute to be invested in such securities as trustees may be authorised to invest or, with the written approval of the Minister, in any other securities or investments. The amendment would give the Institute greater flexibility and scope in investment while, at the same time, ensuring adequate safeguards.”
“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." The responsibilities and activities of the Singapore Institute of Standards and Industrial Research (SISIR) this year have expanded since the Institute was established in October 1973. To help industries meet the changing demands of the local and overseas markets, SISIR has stepped up its programme in technology transfer and industrial R&D, and internationalised its standardisation and quality assurance activities. Thus, the main purpose of this Bill is to amend the SISIR Act to reflect the extended role of the Institute and to empower it to meet industry's new demands for technological infrastructure. Section 15 of the Act which lists the powers and duties of the Institute is amended to specify more clearly that the two main functions of SISIR are, firstly, to promote the safety, quality and efficiency of products and processes in industry for local and international markets through standardisation, certification, quality management and the use of technology; and, secondly, to promote and undertake industrial research and development for the creation of new industries, the development of existing industries, and the improvement and introduction of technical skills and technology in industry. A new section 15A separately sets out the Institute's powers and duties in carrying out these two main functions. These powers and duties reflect SISIR's expanded role in industrial R&D and standardisation.”
“I beg leave to withdraw my amendment. Amendment, by leave, withdrawn.”
“So I think it is time now to amend the Industrial Relations Act to allow both categories of employees to join the same union. Encik Abbas Abu Amin (Pasir Panjang GRC): Sir, Singapore has enjoyed excellent industrial relations for many years. The contributions of trade unions towards maintaining industrial peace have been significant. In this regard, therefore, there is a need to ensure that the labour movement continues to be led by capable and good leaders. We have lost several good union officials when they were promoted to supervisory or managerial levels. I know only a few companies which have allowed their employees to continue to serve as branch officials when they were promoted. Sir, in the absence of a clear definition in their law or in the Act on who are considered "executives", disputes will continue to arise between union and management. This is not conducive to good industrial relations. A clear definition is therefore necessary. I support the proposal to amend the Act to extend the scope of representation.”
“Sir, I beg to move, That the sum to be allocated for Head S be reduced by $10 in respect of Code SD 1500 of the Main Estimates. Workers have the right of association. They can form unions and the Industrial Relations Act protects this right. The Act, however, separates managers and executives from rank and file workers. Rank and file workers can form their own union. Managers and executives can also form their own union. The Industrial Relations Act forbids them to join the same union. In fact, section 16(3) of the Industrial Relations Act states: 'No trade union of employees, the majority of whose membership consists of employees in non-managerial or non-executive positions, may seek recognition in respect of employees in managerial or executive positions or serve a notice under section 17 in respect of those employees.' This section and other sections of the Act clearly preclude a union from representing both categories of employees. But at the same time, there is also no clear definition of the terms "managerial" and "executive". These provisions may have been appropriate in the 1960s. But today teamwork at the workplace is an asset that gives the company that extra edge in competitiveness. Since the Act clearly allows workers to form and join unions, including those in managerial and executive positions, and we are striving for that extra edge in competitiveness, we should amend the law to allow them to join the same union. The Ministry of Labour has already exercised its discretion to allow employees of both categories to join the same house union. So far, the experience has been good. For example, it has not been found to have caused problems of disciplining employees within the same company.”
“I think that the rebuke which he received in the newspaper columns and in this House had not been justified. And in my opinion, there has been no abuse of parliamentary privilege.”
“The point is that the wage gap appears to have widened if we are to believe Government statistics. One relevant indicator is the comparison between the increase in median wage and the average wage in the past decade. The median wage rose by 87% between 1980 and 1989, whereas the average wage rose by 106%. So this shows that wages at the higher end have risen faster than the lower-end wages. Another interpretation we can give is that any increase in wages it is the upper end that has greater effect on total cost rather than those at the lower end. And that I think is the point which the Member for Boon Lay sought to put across. On CPF data, I have every reason to believe that the CPF data is accurate. As at December 1990, it did indicate that we do have a significant number of low-income workers. Whilst the CPF data does include part-time workers and students on vacation jobs, it is not distorted by the inclusion of national servicemen and foreign workers. The data which I have received shows that 12% of just over a million workers, draw less than $500 per month. This may give a more balanced picture of the earnings of Singapore workers. Coming back to Mr Goh's point, what he sought to stress then was that we should not be so flexible in allowing foreign workers to the extent that it will affect the income of lower-income workers. Sir, Mr Goh has, in the past 10 years, fought for workers. I think he has done more than his part. For example, in the area of upgrading of skills, he was responsible for launching the BEST programme and, today, he still oversees that programme. He has urged employers to train and to make better use of local workers, rather than to depend so much on foreign workers.”
“Sir, I turn now to the subject of foreign workers. When this House considered the estimates of the Ministry of Trade and Industry, it was announced that the Government was studying ways of letting employers hire more foreign workers. In particular, a two-tier levy system with a higher levy for companies hiring workers above the present limit of 40% may be introduced. There is also the possibility of a quota system, similar to the car quota system. In my opinion, the two-tier system will not be effective in placing a cap on the maximum number of foreign workers that will be allowed in. The quota system will allow us to control the number of foreign workers more effectively. Some will say that the bigger companies with stronger finances will outbid small companies if we go into such a system. But it may be possible to divide companies into different categories, just as we have classified cars by engine sizes. Each company should be allowed up to, say, 30% dependency on foreign workers, paying the levy set by Government. If they wish to employ more, they should tender for it, paying the price set by the market. Sir, I cannot emphasise the need to control the number of foreign workers. Apart from the social problems that will arise with too large a number of foreign workers, an unrestrained inflow of foreign workers will depress wage levels, especially those at the lower end. This causes hardship to our low-income workers and retard progress in the upgrading of industry. I am sad that the debate on the subject of income distribution in the House these few days has centred on the accuracy of data rather than on the substantive points that the Member for Boon Lay sought to put across.”
“In the United Kingdom, the Redundancy Payments Act of 1965, the Employment Protection (Consolidation) Act of 1978 and the Transfer of Undertakings (Protection of Employment) Regulations 1981 would apply. Under English law, the employee is considered to have been dismissed by reason of redundancy if there has been a change of employer. However, transfer of a business, or part thereof, does not in itself constitute dismissal unless, inter alia, organisational changes entail changes in the workforce. The examples I have quoted, and there are others in the private sector, for example, the sale by Degussa of one of its divisions to American Fine Wires, show us that it is necessary to study the issues in depth, frame a set of regulations or guide-lines for dealing with such cases and, in due course, pass legislation, if necessary. Whilst I have asked the Minister if he would do this, the GPC for Labour would be happy to assist in finding the appropriate guidelines, and as such would welcome contributions from employers, unions, academia and members of the public. 12.45 pm”
“HDB offered to the conservancy workers employment in a new company called Cleantech Services. The unhappiness that arose led to pockets of workers going on an unofficial and illegal work-to-rule. The management finally agreed to retrench the workers, but the decision came too late to avoid the work-to-rule which affected the standards of cleanliness in some HDB estates in 1989. Another group of workers, the estate management staff, was similarly affected by the change. However, because HDB has enough vacancies within its other departments, the Finance Ministry's criteria for determining whether a redundancy situation exists were not met. These staff were offered employment in the subsidiary company, EM Services, on superior wages and with recognition of their previous service with HDB for determining benefits which are dependent on length of service. As may be expected, not all have opted to join, and some are returning to HDB. Let me cite another example. There has been uncertainty and unrest caused by the restructuring of hospitals. When the hospitals are restructured, the entire assets are transferred into private companies. The work of the hospital staff remains largely the same. Most of the staff have agreed to work for the restructured hospitals. But there have been some who asked to be transferred to other Government hospitals. With restructuring of hospitals continuing, one day they can only be posted to Woodbridge Hospital. If their services cannot be used there, the question remains whether they will be retrenched and whether retrenchment benefits will be paid. I am told that under common law a contract of employment is not transferable to another employer. However, there is no legal provision for redundancy payments in such cases in our legislation.”
“For example, SIA has set up SATS to handle catering, Tradewinds for regional services, SEOC for aircraft repairs and maintenance, and more restructuring cannot be precluded. In the process of restructuring, companies at times acquire other companies, or sell off parts of their business. In the sale of a business, sometimes it is only the assets which are sold. Now, what happens to the rights of workers when this kind of restructuring takes place? Has an employer the right to set up another company and transfer workers to the new company? Should an employee be given the right to choose to remain with the original employer or to move on to a new company? Are retrenchment benefits payable? Is a successor employer obliged to undertake the obligations of the predecessor employer towards its workers? If it does, does it have the ability to provide the workers with the same security of employment? There is a host of questions which need to be answered. In the past few years, more companies have been restructuring. The problems that arise are the most complex and potentially highly disruptive to our industrial relations climate. As may be expected, any change leads to uncertainty among employees, causing a drop in morale, unhappiness and even unofficial industrial action. We have only the provisions for redundancy in legislation to deal with such cases. However, such provisions and case law are inadequate to deal with restructuring of the type we are now seeing. As a result, it takes a long time before agreements can be reached between unions and management. Take, for example, the case of HDB and Town Councils. With the formation of Town Councils, conservancy work was transferred from HDB to Town Councils.”
“Sir, I wish now to talk on workers' rights on restructuring of companies. At the outset, let me state the question that I am putting to the Minister: Will the Ministry draw up guidelines for protecting workers' rights when companies are restructured and, in due course, legislate when principles are tested in practice and found to be fair and equitable? Let me explain. One of the most widely acclaimed books in the past two years is "The Age of Unreason" by Prof. Charles Handy. Drawing from his studies of the changing structure of organisations, he postulates that companies are moving towards what he describes as "the Shamrock organisation", one with four leaves, as in a shamrock. The first leaf represents the core workers. These are professionals, technicians and managers who are the essential core of a company. The second leaf represents sub-contractors. These sub-contractors produce goods or services that need not be done by the core. The third leaf represents a flexible labour force, consisting of part-time workers and temporary workers who are drawn on to meet the needs of peak workloads. The fourth leaf is getting the customer to do the work, as in self-service supermarkets, fast-food restaurants, and the use of ATMs. The Shamrock organisation is more efficient and, therefore, more competitive. What Prof. Charles Handy describes is happening in Singapore. In the public sector, this is shown in the move to privatise, corporatise or to restructure. Examples: restructuring of hospitals, formation of Town Councils, privatisation of statutory boards like Telecom. In the private sector, large companies hive off divisions into subsidiary companies.”
“I wish to ask the Minister to inform the House when it expects to introduce legislation to correct this anomaly in the law.”
“Sir, I beg to move, That the total sum to be allocated for Head S of the Main Estimates be reduced by $100. Sir, first, I would like to speak on the subject of retrenchment benefits on the liquidation of a company. Let me state briefly the problem. I will use the case of a shipyard, Vosper, to illustrate this problem. During the recession in the shipbuilding and shiprepairing industry in the early part of the 1980s, the company decided to trim the workforce. Those who were retrenched were the poorer performers. The company went through several retrenchment exercises and retrenchment benefits were negotiated with the union, and paid. But the series of retrenchments was not enough to save the company. Finally, the company decided to liquidate. The liquidator refused to negotiate with the union for retrenchment benefits for the workers who were left behind. The union took the matter to court. The court ruled that a redundant situation did not exist, according to the legal interpretation of the term "redundancy", once the decision has been made to liquidate. It was a sad case and the workers who were left at the end were considered the better performers. They agreed to cooperate with the liquidator to work until the end. But they were left with nothing. What is more, when the assets of the company were sold, and the debts paid, the money left over was more than sufficient to pay the retrenchment benefits to the workers. A similar case took place in the President Merlin Hotel, although when the cash was realised after the sale, the company was not in the same happy situation as Vosper Thornycroft. The NTUC has referred this matter to the Ministry of Labour. I know that the Minister is very sympathetic to this case.”
“This means wage levels of a developed nation, not of an NIE or of a developing nation. So the economic policy must encourage two things: First, develop the education and skills level of our people; Second, upgrade business to higher value added activities. This year's budget has these two objectives. I therefore support the financial policy of the Government. Employers and workers should work together to achieve these two objectives. Now, what can we expect of wage increase this year? Wage negotiations will commence mid-year. Much will depend on how the economy performs between now and then. If the post-war mini-boom takes off, wage increases should be comparable to last year's. The labour shortage persists. In this situation, last year's principle that built-in wage increases should lag behind productivity growth would be a sound principle.”
“The wage share in nominal GDP varies with the mix of the economy. The wage share in nominal GDP of developed countries is higher than ours. As an economy moves more and more into services, the wage share in nominal GDP can be expected to rise. For example, the wage share of value added in manufacturing hovered between 28% and 32% in the past 10 years, except during the recession when the wage share rose to 38%. On the other hand, the wage share in value added in the restaurant and hotel industry is as high as 60%, and during the recession it rose to about 70%. The wage share in the retail trade is typically about 45%, but went up to 60% during the recession. There have been significant changes in our economy. In the last 10 years, manufacturing accounted for about 28-29% of GDP. Commerce has stabilised at about 17%, dropping from 22%. Transport and Communications share has risen from 12% to 14%. Financial and business services have risen sharply from about 20% in 1980 to the current 32-33%. So this shows that the economic mix has changed quite significantly. The usefulness of the wage share in nominal GDP as an indicator of wage cost competitiveness is therefore limited. The Ministry of Trade and Industry has, in the Economic Survey of Singapore 1990, included an essay on "Profitability Indicators" which stresses more on the bottom line, the margin of profits and the trend of profits. These are better indicators of our competitiveness as a place for doing business. What the essay shows is that we are doing all right at the moment, though there is a down trend. One thing must be clear. Our objective as a Government must be to improve the standard of living of our people. In this decade, we aim to come of age as a developed nation.”
“6%. Now, employers will point out that last year, average monthly earnings rose by 9.4% as reflected by what Mr Chew has said. Since the consumer price index rose by 3.4%, this means that the real wage increase was 6%, exceeding the productivity growth of 3.4%. And employers will say that this trend will erode our competitiveness. But last year's wage increase reflects two things: companies did well, and there was a persistent labour shortage. So in this kind of situation, the balance of advantage when it comes to negotiations lies with the unions and the workers. And unions could have pressed home the advantage to get high built-in wage increases. They did not. Instead, they acted responsibly and agreed to contain the built-in wage increase within productivity gains. The NTUC's survey of wage settlements for 1990 shows that the built-in wage increases averaged 6.7%. Accounting for inflation of 3.4%, the real built-in wage increase was only 3.3%, just a shade below the productivity growth of 3.4%. The built-in wage increase has lagged behind productivity. How does one explain the 9.4% rise in monthly earnings then? The 9.4% rise in monthly earnings included bonus payments and higher overtime. Bonus payments vary with the profitability of the companies, and overtime depends on how much business and how much work companies have. So this shows how flexible our wage system now is. Really, I think that employers ought to be showing their appreciation for the responsible action taken by our unions and workers. Another indicator which employers would point out is the rising wage share in nominal GDP. But, again, this GDP share is about the 1982 level. There is also no magic number which will indicate when a danger point is reached.”
“According to the Economic Survey of Singapore 1990, the unit business cost index, which takes into account labour and other costs, rose by 7.3% last year. If we compare this with the index as it stood at its lowest in 1987, then there has been a significant cumulative increase in cost. But if we take the decade as a whole, the cost of doing business here has risen only slightly and this must be quite remarkable for any economy. As is always the case, businessmen would complain about labour costs. Indeed, they have criticised the 1% rise in the employers' contribution to CPF. Such criticism is not justified. I would remind employers that in 1986, workers took the brunt of the recession through a 15 percentage point cut in the employers' contribution to CPF. The 1% restoration this year means that up to now, after several years of good economic growth, only half the cut has been restored. It would be unwise of employers to harp on this 1% restoration. The workers ask: why is it that when a cut is made, it is done in one go, but when it comes to restoration, it is so gradual? I have this word of advice to employers: continuing criticism of the 1% restoration will only develop workers' distrust of employers. So, please stop it. Do not forget that not the full 15 percentage points will be restored. Only 10 percentage points will be restored. So this is a major concession of five percentage points. Government constantly monitors our wage cost competitiveness with other NIEs. The index shows that last year, our wage cost competitiveness was about the 1983 level. Surely this is not bad. A major part of the rise in the index was due to the appreciation of the Singapore dollar vis-a-vis the US dollar and the currencies of the NIEs. The appreciation against the US dollar was 8.”
“Mr Speaker, Sir, the Minister for Finance has painted a very cautious picture of the economic prospects for the year. And as Mr Chew Heng Ching said he must have had a difficult time since the budget was prepared in the shadow of the Gulf crisis. The land offensive by the allied forces ended only two days before the Budget Statement. The Minister, however, did point out that we should "be prepared for quick changes in the economic environment". Now, with the Gulf War over, there are prospects of a mini-boom which will benefit Singapore. Still, the Minister had urged that for 1991, "wage increases should be moderate in the face of the general slowdown and uncertain economic prospects". In saying this, he would have in mind the complaints of businessmen that the cost of doing business in Singapore has risen. As I listened to Mr Chew Heng Ching recounting the increase in wage cost before the recession of 1985/86, I think for someone who just reads or listens to the speech by itself he will come to the conclusion that it was the high wage cost that led to the recession. I think the record should be set straight. It is not wage cost that was the cause of the recession. It was a convergence of three factors - recession in the world economy, recession in the regional economies, and a sharp slowdown in the construction activities in Singapore. Domestically, we had the HDB scaling down its programme from as high as 65,000 units of flats constructed in a year to about 20,000 and this must surely have its effects on the economy of Singapore. But recession is caused by uncompetitiveness. So we should look at the issue on a wider context of total business cost.”
“Proportional representation is today existing in many countries, in Europe with a homogeneous population, but still with a lot of problems. Because of sectional interests, the different parties cater to different sectoral needs in order to win seats in Parliament. The result is that coalition governments fall every time there is a conflict among the parties in the coalition. Italy, for example, changes government like fashion. They have so many governments ever since the 2nd World War. Do we think that a small country like Singapore can afford to have that kind of change of government, even if we assume that the ethnic issue would not come up? Let me conclude by saying that I have read about proportional representation and the debate about whether the first-past-the-post system, which we have adopted from the British, and which has been adopted by many Commonwealth countries, is an unfair system. Even in the United Kingdom, who are the people who ask for proportional representation? It is always the people in the Opposition who have got less seats because of the first-past-the-post system. They say that the system is unfair and therefore proportional representation would be a fairer system for the people. And yet when the same Opposition party wins a general election and comes into power, all this talk about proportional representation is forgotten. I am not sure about what Dr Lee Siew-Choh's motives are. But assuming that his party wins a general election - I do not believe this will happen - I doubt that he would be talking about proportional representation then.”
“On such fundamental matters, it is only right and proper that the people decide whether they want to change their political identity and therefore participate in a referendum. But for other matters of State, we have to be very clear that we have a representative system of government. At every general election, we elect a government and we give the mandate to the government to govern Singapore. So we should not be governing by straw polls every time an issue comes up before the people. There are dangers in holding referendums on every issue, because on matters of State it is very important that we have the opportunity to discuss the subject in depth. To me, the proper way of dealing with such issues is to debate them through the processes which we have adopted, the Select Committee hearings, and now perhaps we can open it up for GPC hearings as well. This is the correct way to deal with serious issues of State and not to decide things on the basis of a poll of the people. On his suggestion of proportional representation, again this is a subject which has been discussed before. In the current context of Singapore, would proportional representation be the right thing to do? We have a multi-racial, multi-religious society. So whoever wants to gain political power would find it very expedient to form a party that would cater to the majority interest. In our context, anyone who wants to win in a general election would form a Chinese party, and stress Chinese culture, Chinese values and do all things possible to favour the Chinese in Singapore. Is this what we want? We must also take care of the minorities, the Malays, Indians, Eurasians and others. Let us not open up the Pandora's box and fuel the fires of ethnic tension.”
“Mr Speaker, Sir, I rise to oppose the amendment. First, let me comment on Dr Lee Siew-Choh's statement about the Gulf War. He questions why Singapore, a small nation, should make such strong statements and take a position on the Gulf War. To me, as a citizen of this world, we have to state what is right and what is wrong. We are a member of the United Nations. When one country does wrong to another country, we in the fraternity of nations must raise our voice to object to such wrong act. So it is only right and proper in the case of the Iraqi invasion of Kuwait for Singapore to make known its views and to condemn the attempted annexation of one country by another. If we keep quiet, then do we condone every time one big country tries to annex another country? Turning to his other points, it seems to me that every time the PAP does something right, according to Dr Lee Siew-Choh, the PAP is buying votes. And everything he does not like, there is some sinister connotation of whatever kind. The Non-Constituency Member should learn from the Opposition MP, the Member for Potong Pasir, give credit where credit is due, if he wants us to listen to him and take him seriously. Turning to his amendment, first, he says that we are not taking into account the possibility of holding a referendum. This is not a new point that he has raised. It has been raised in previous sessions of Parliament and it has been explained. Holding a referendum is an expensive exercise. So the question is: when does a country hold a referendum on important national issues? How does one define "important national issues"? We held a referendum on the question of merger of Singapore with the Federation of Malaya.”
“They argue that costs have been rising, and the economy is projected to grow by only 3-6%. Mr Mah Bow Tan is reported in this morning's papers to predict that it would be closer to 6%. The Government's forecasts were rather cautious because of the uncertainties caused by the Gulf War. And Mr Mah was quoted as saying that the Government expects to revise the forecast at the end of the Gulf War. Today, with an early conclusion to the conflict in sight, I believe the economy will grow by more than 6%. So such growth is hardly a recession scenario. Today, some sectors are doing very well. The oil industry is reaping windfall gains. The shipbuilding and shiprepairing industry, the construction industry, and the manufacturing sector in general, are all doing well. Of course, with lower tourist arrivals, hotels, restaurants and retailers are not doing so well. But the uneven performance should not be reason to hold back the restoration of employer's contribution to CPF. I think a 1% restoration should be the minimum. In my opinion, a 1.5% restoration would be more appropriate. And for sectors that may be doing poorly, other means of helping them should be sought, eg, the trimming of other statutory charges. At the same time, let us not forget that tourism will get underway again once the Gulf War is ended. So apart from what we have already built into the flexible wage system, we should not attack wages whenever there is poorer economic performance. It is incumbent on management to come out with other ways of remaining competitive.”
“But it is far better for supervisors and junior executives to join the same union, in order to forge better teamwork. Talks have taken place between employer's representatives and union leaders. The dialogue will continue. Hopefully, some agreement will be reached soon. Otherwise, unions will be left with no choice, but to form unions for executives as allowed by the law. But it is better that employers recognise the need to redefine "bargainable" employees, to widen the scope of union representation. It is important also that employers recognise the work done by union leaders. It is a wise employer who allows employees with potential to join unions, take up leadership positions, and in due course continue their career development in senior managerial positions. I said earlier that industrial peace also depends on a fair share of the rewards of progress being given to our workers. We learnt from the last recession to provide a linkage between rewards and performance. Most companies now have flexible wage systems that pay more in good times, and less in bad times. In any review of such formula, there must be fair play. We have also reduced wage costs through reducing the employer's CPF contribution from 25% to 10%. It has been agreed that this will be gradually restored to 20%. At present, the employer's contribution to CPF is 16.5%. There is still 3.5% more to go. The rate of restoration of the employer's contribution to CPF has been, with the benefit of hindsight, slower than the economy could afford. We should now complete the process as soon as possible. I know some employers will be hoping that their contribution will stay at 16.5% for the coming year. They are known to have lobbied for this.”
“Whether they are seconded officers or direct recruits, these officers must possess one quality - an ability to mix well with the rank and file and to earn their respect and support. As I said, leaders must also come from the ground, from among the rank and file. We want to see as many as possible rising from the ranks, and they will be trained. But as I have pointed out earlier, the spread of talent available to unions is shrinking because of changes in education, and the greater opportunities now available at the managerial and executive level. Good leaders are needed not only at the national level, but also at the branch level. The lack of good leaders will not be in the interests of the unions, nor the employers of Singapore. Therefore, it is unwise of employers to give nice sounding titles to employees in order to prevent them from joining unions. The number of such cases may be few. But it indicates the reluctance of employers to have good, strong unions. Their attitudes are, unfortunately, based on their experiences with unions elsewhere. We need to change the attitude of employers. They must understand that the scope of union membership should be widened. At present, the law does not allow executives to join the same union as non-executives. The law, however, allows executives to form their own unions. Six executive unions exist. Supervisors and executives want to join unions as they feel they need an organisation to represent their interests. This is not unexpected. With better education, there is a desire for greater participation. The desire for participation in the political process has its counterpart at the workplace. Many supervisors and junior executives therefore want to join unions.”
“In the earlier days, the political and trade union leadership came from the same core group of people who shared the same vision for Singapore. In more recent years, the PAP asked some of its leaders to offer their services to the unions. This relationship has allowed Government and unions to progress along the same path together. If we want to run the next lap together, then we must see to it that there will be PAP MPs willing to serve in our unions. And likewise, grassroots union leaders who are capable should be encouraged to enter the political fray so as to voice workers' views in Parliament. In previous Parliaments, we have had people like Mr Seah Mui Kok, Mr Ho See Beng, Mr Eric Cheong and the late Govindasamy. Today, we have Mrs Yu-Foo Yee Shoon and Mr Charles Chong. So we hope that more of our rank and file will rise to these high positions. The labour movement will also require high calibre personnel in staff positions and they will have to come from two sources: administrative officers on secondment, and from direct recruitment. Administrative officers on secondment must regard their period of secondment as a positive chapter in their career development. Their contributions to maintaining industrial peace and harmony and obtaining fair deals for workers should be highly regarded. Direct recruitment by the unions has been done, and must continue. In a tight labour market, and with rising expectations, the unions must be able to match the wages and benefits offered by the private sector. Recently, the NTUC has revised its wages and terms of employment, to match those in the private sector.”
“But the spread of talent of each generation should be more or less the same. I have no reason to think that the older generations of workers have less brain power than the new generation. If we accept this to be true, then our unions had access to a wider spread of talent in the past than today. Because there were fewer managerial and executive positions, there were more people who fell into the "bargainable" category. Therefore, older generations of union members threw up better and more talent for leadership positions. We have to be concerned for the future. Unless something is done, leadership talent from the rank and file of the unions will be scarcer. If we continue with our traditional classification of "bargainable" employees, it will mean that the balance of brain power will be too much tilted in favour of the management, to the disadvantage of our workers. Yet, in the next lap, we will require union leaders capable of taking a wider view of issues, able to deal with more complex problems, to seek the correct courses of action. We need leaders who can negotiate effectively with management. If the unions are starved of leadership talent, it is probable that narrower vision will lead to a return to conventional methods of collective bargaining, that of collective strength and industrial action. Industrial relations, as we have come to expect, will not be the same. If we do not want our unions to regress, then we must ensure that our unions have a fair share of talent. Talent is required at all levels. At the national level, talent can be recruited from among professionals, including people of ability and integrity such as Members of Parliament.”
“But years of industrial peace has led many to forget its importance or to take it for granted. Today, there are still people who ask: "Would we have done better without unions?" This is despite the fact that we have a very responsible and cooperative trade union movement. When such questions are asked, and when some employers take tactical measures to prevent the formation of unions, I think we have good reason to feel that industrial peace is taken for granted. Today, a more basic question is: "Are unions relevant? Would unions be an asset? Do we want unions as partners in progress in the next lap?" Recently, I posed this set of questions to leaders of employer groups. They agreed that our unions are relevant, and they expected unions to continue to play the positive role that they have played in the past. If our unions are to continue to play a positive role and, at the same time, to carry the ground, then our unions must have capable leaders. Today, with good education, more and more of each cohort of students make it to post-secondary and tertiary education. They move straight into executive and managerial positions. Take, for example, in 1970, professional, managerial and executive workers made up 11% of our workforce. In 1989, they made up almost 20% - or nearly double the proportion. This means that in 1970, a higher proportion of workers were eligible to join unions than in 1989. Now project into the future. Our goal is that 40% of each cohort of students will make it to the polytechnics or to the universities. Where is this taking us? The proportion of workers traditionally classified as "bargainable employees" eligible to join unions will shrink further. Younger workers are better educated.”
“Mr Speaker, Sir, I rise to support the motion. The strong message of the President's Address and the Addenda is that the next lap is for everyone - including the ordinary man-in-the-street, and especially the ordinary man-in-the-street. Who is this ordinary man-in-the-street? Typically, he is the Singapore worker. Our workers are highly rated. BERI has consistently rated the Singapore workforce as the best workforce in the world for the past decade. So if there is economic growth, a fair share must go to our workers. That is what the next lap must hold for the ordinary man-in-the-street. But progress cannot be taken for granted. We can set targets. We can set goals. But unless certain fundamentals exist, unless the climate is right, we will not make progress. These fundamentals include political stability, an honest Government, communal harmony, religious tolerance, healthy industrial relations, good relations with our neighbours and a credible defence force. We accept these fundamentals as necessary conditions for growth. There is a danger that we take these now as a matter of course. We must be mindful to tend these fundamentals. They require constant nurturing. Yesterday, Dr Lau Teik Soon spoke of the importance of maintaining racial and religious harmony. And he would like Singaporeans to pursue the same path of development. Today, Mr Shanmugam has also stressed the importance of racial and religious harmony. I wish to speak on the maintenance of industrial peace. We have enjoyed healthy industrial relations for many years. This is the result of years of nurturing. Good industrial relations are the result of good leadership in our unions, and a fair distribution of wealth to our workers.”
“It is one of the many suggestions put forward by various groups that was accepted by the Select Committee. I feel credit should also be given to the Feedback Unit. As a result of its discussions with the public, it recommended specifically that the views of the Law Society and the Society of Accountants be sought. These views were sought and both organisations gave serious and constructive views and some of the recommendations which they have made have also been included. No one can now say that all this has been a "wayang". The views of the people count, and they have been incorporated. As a result, we have a much better Bill before us. The political leadership exercised by the Government is the stronger for having consulted the people, for having sought consensus. Sir, this is the way it should be in the future, Government working hand-in-hand with the people, for the people. Sir, I support the Bill.”
“It felt that we would benefit from contributions from the public. It provided for participation by the people through the Select Committee proceedings. It is gratifying that not only did Members of Parliament voice their views, and those of their constituents, but that there were 40 written submissions from individuals and groups. Most of them were well considered submissions. I would like to single out one that impressed me most. It is the submission made by a group of university students Ž from the National University of Singapore Democratic Socialist Club. The Democratic Socialist Club held an informal discussion, and produced a crisp, concise and valuable paper. This is how constructive debate on policies of state should be carried out. Youth has been no impediment. I am particularly glad that the Select Committee called them up for oral discussion. They deserved to be called because of the quality of their submission. It augurs well for our country that we have young people like them who take an active interest in the affairs of state, who are willing and able to voice their considered opinions. Theirs is an example that should convince those who had reservations on the seriousness of the Government in encouraging participatory democracy. Several proposals made by the Democratic Socialist Club were accepted by the Select Committee. The most important one, in my opinion, is that the Elected President should sever ties with his political party, if any, when he assumes office. The students shared the view held by many Singaporeans that this is necessary to ensure impartiality in the highest office of the land. I am glad that the Select Committee has accepted this recommendation.”
“Mr Speaker, Sir, when the concept of an elected President was debated in this House following the publication of the first White Paper, I spoke in support of it. Much has been done since then. I rise today to support the Bill, as amended by the Select Committee. I do not wish to delve into the details of the Bill, as this has been amply done in the Second Reading, and during the hearings and proceedings of the Select Committee. What I wish to highlight to the House is that the process by which this Bill has been considered is a fine example of the practice of consultation and consensus. Consultation and consensus is a mark of the style and approach of our new Prime Minister. It is befitting that in the early stages of his premiership, we have a fine example of this practice. There had been two important reservations made on the practice of consultation and consensus. One is that it is a weakening of political leadership. Some would have preferred that Government, when it identifies a problem, or sets an objective, comes out with one solution to the people, and that it should be explained by the Government, and accepted by the poeple, without modification. The other reservation is that consultation and consensus is no more than a "wayang", because views are not accepted and no changes are made to the original policy. This Bill has proven both reservations wrong. Government had seen the long term risks facing the country because the existing system of checks and balances is inadequate. Its objective is to correct this inadequacy. It considered various options, and provided the one it felt best meets the needs of the country. In doing so, Government has exercised political initiative. Government felt that the change intended to the Constitution was substantial and unique.”
“To sum up, my view is that there is a need to work out and shape the shared values of the people of Singapore. This will enhance the cohesiveness of our society and strengthen the unity of our people. However, the shapping of shared values must not be treated as a mere formal process. There must be a deep understanding of the thinking and cultural traditions of the various races for the values to be strong, effective and relevant. And this is particularly so if we appreciate how the various races identify themselves with the type of culture peculiar to Singapore. A set of shared values developed and worked out along this line will be more readily acceptable to the various races in Singapore, and will be capable of building up a consensus among our people here.”
“We could have the national level and we could also have the racial level. The shared values put forward at the national level must be based on the racial level, in order that they may be strong and relevant. In other words, when we put forward suitable and appropriate shared values which can be accepted by the people of Singapore, apart from those which are made in the national interest, they must also be based on the racial level. As such, it is essential that we thoroughly study and understand the thinking, cultural traditions and history of the various races. In this respect, I must emphasise that although the various races have their respective cultural roots, what is more important is that these people from the various races have been living in Singapore for a long time, and many of these people have been born and brought up here. Their feelings for, their identification with, and loyalty to Singapore, coupled with the influence of the other races and foreign cultures, have resulted in their thinking, habits and customs, and cultural characteristics being significantly different from their original or native cultural traditions. If we probe deeper into the flesh and blood relationship and feelings of the various races with Singapore, we will be able to discover the consensus among the various races and their deep-rooted, latent or manifested common identification with Singapore. From here, we will be able to define the shared values of the people of Singapore. Of course, exchanges of traditional cultures among the various races may help to promote better understanding among the races. And that is why the organisation of cultural months for the various races is very meaningful.”
“We treasure the fact that since our independence, we have never had divisively considered ourselves as belonging to the "majority group" or the "minority group". Everyone is treated equally, and we all live together in peace and harmony. And this is precisely the very important factor contributing to our vigorous development in the past 25 years. We have no racial discrimination or racial conflicts. On the contrary, we are now working on how to promote further interaction and harmonious relationship among our various races. Not too long ago, some organisations attempted to merge the various cultures together in the hope of speeding up the evolution of a representative Singaporean culture. For instance, different types of drums from different races were put together for a joint performance of drums with the view to producing a musical movement unique to Singapore. Such an undue haste to integrate different traditional cultures and, at the same time, thinking this is mere formality, will get us nowhere. However, from this example, one can appreciate how anxious we are to further build consensus among the various races and to establish a common culture and feeling. To deal with the traditional spirit and culture of different races, in a superfical manner, is bound to fail. The reason lies not only in the attitude in which the problem is tackled but, more importantly, on the lack of understanding that if we want to promote the exchange of thinking and culture among the various races, we must first of all have a deep understanding of the thinking and culture of the respective races. So when we are dealing with the shared values of the various races, the facts that I have just mentioned may serve as a reference. Shared values should not be confined to only one level.”
“" What are these other elements? The PAP's early constitution holds some. It said: '... to infuse into the people ... a spirit of national unity, self-respect and self-reliance, and to inspire them with a sense of endeavour in the creation of a prosperous, stable and just society.' These are sound values. And I feel one of the more important words is the word "just", and we must at all times strive to ensure that what we do is just. What other values? These can include what Mr Ong Pang Boon said years ago: "... cultivate such simple virtues as obedience, patience, honesty, courage and self-discipline." Mr Speaker, Sir, we await the White Paper on Shared Values. In line with the desire for participatory democracy, I hope that Singaporeans will join in the discussion on our commonly held values that will strengthen our nation. As Mr Rajaratnam once said: "It should be our constant and unrelenting purpose to make people aware of, and become emotionally attached to, these commonly shared cultural elements." Mr Speaker, Sir, I thank you for the opportunity to speak on the motion. Mr Chin Harn Tong (Aljunied GRC)( In Mandarin): Mr Speaker, Sir, I support the President's Address to Parliament on 7th June this year. The Presidential Address provides a broad framework for us to analyse our various political, social, educational and health issues. It also brings up the difficulties that we may have to face in our future development and the need to work out strategies to counter these difficulties. Despite all the issues that were raised, I propose to speak only on the issue of shared values. Mr Speaker, Sir, Singapore is a multi-racial society.”
“He should be given whatever help necessary to achieve the highest level of education that he is capable of. Because of this, whether from rich or poor, a child can rise up in society. For the poor, this is especially important, as it holds up the hope that if they themselves are not able to enjoy the good life, then at least their children can aspire to that. This again is fundamental to peace and harmony in our society. In fact, so important is this principle that it has also been enshrined in the current PAP constitution, and I quote: 'Within the overriding interest of the good of society, to provide equal opportunities for all Singaporeans to strive to fulfil themselves and to achieve their maximum potential through education and training so that there will be a place and a role for every Singaporean, whatever his contribution.' Today, we may take these two fundamental principles for granted. But it bears restating these fundamentals on which the policies of the new administration will be based. Today, we are searching for shared values, to enshrine them as the basis of our nationhood. We must ensure that every citizen shall have an equal and rightful place in our society. Beyond this, we must find values we share in common, values that bind us together. The search, in fact, was commenced much earlier than the past couple of years. It started even just after we attained independence on our own. For example, Mr Lim Kim San said in the 60s that Singapore's most urgent task was to find a common national framework for people of different races, languages, religions and cultures. Mr Rajaratnam said: "It should be our constant and unrelenting purpose to make people aware of, and become emotionally attached to, these commonly shared cultural elements.”
“The PAP included this as one of its fundamental planks - this has been repeated in its manifestos, and enshrined in its constitution. Today, one of its objectives in its constitution reads as follows, and I quote: 'To forge a nation of Singaporeans; to build a multi-racial society, fair, just and tolerant to all, whatever their race, language and religion; to infuse into Singaporeans a sense of national identity and to bind them together by patriotism and commitment to Singapore.' Because the PAP held this out as a fundamental principle to all, Singaporeans identified with the PAP, and the PAP won the support of the people. It has been because of this fundamental principle that we have enjoyed peace and harmony, in spite of our multi-racial and multi-religious character. Not all multi-racial and multi-religious countries have been so similarly fortunate. This is a fundamental principle on which our nation is based. It must remain so, if we are to continue to enjoy peace and harmony. Therefore, the Government, under a new leader, must continue to abide by this principle. We should take care, when new policies are formulated, that we do not breach this basic principle. I know that equality has been the cornerstone of all Government policies. In the implementation of policies, however, fair play and justice may not be seen to be upheld by our minority races. If this is so, and where this is so, we should correct them. Equality extends not only to consideration of race, language or religion. Each citizen must have equal opportunity in all things, whatever his station in life. This has been also one of the fundamental principles upheld by the PAP. For example, education has been open to all. It has been the policy of the PAP that every child shall have a place in school.”
“It was an event of great rejoicing, when all Singaporeans felt that at last we had made one significant step upwards - from being a subject people, towards full nationhood. What followed was merger with Malaysia. It was welcome. At last we attained full independence. The Federation held out great promise. The future was ours to shape. By then, I was in secondary school. It seemed to me then, that the path to the promised land was, to put it mildly, rocky. We were all Malaysian citizens, but why were there differences between bumiputras and non-bumiputras? As a non-bumiputra, I felt a sense of gross injustice that I was less than equal to others as a citizen. A few years later, during my undergraduate days in the United Kingdom, I was to meet Malaysians, mostly Chinese. They felt strongly the sense of injustice that there were no equal opportunities for everyone, that race was first and foremost in most things. I could well understand why some of them even talked of joining Chin Peng in the jungles. For us in Singapore, our union with Malaysia was to be shortlived. We were on our own in August 1965. When our Prime Minister said soon after separation, and I quote: 'We are going to have a multi-racial nation in Singapore. This is not a Malay nation, not a Chinese nation, not an Indian nation.' I could fully share this value. I could fully identify myself with this principle. Having been a minority, I was fully prepared to extend to the minorities in our small country an equal place in our nation as his basic right. This was a principle that the vast majority of Singaporeans could agree upon. Singapore cannot be founded on the superiority of any one race. The only basis is that of equality of all races, with the right to use his own language, and to practise his own faith.”
“The preparation has been thorough and we will see a smooth transition. But yet every change must bring with it a different environment and possibly unexpected results. It is said that the style of Government will change to reflect the character and thinking of the new man at the helm. But styles may change to fit the needs of the times. We cannot preclude that there will be no other developments, planned or unplanned, that may be in store as a result of change. The forces of history are not under the control of any one man. A strong personality can influence the cause of history but cannot control totally the course of history. As such, we must be prepared for change, and whatever that may come our way. To cope with change, we must be guided by certain constants. What are these constants? These are fundamental values on which our society is founded. On these values, policies are shaped. These core values are those we share in common. These are values which our multi-racial, multi-religious society hold as fundamental for the maintenance of peace and harmony without which progress and prosperity cannot be achieved. First and foremost, is the principle that every citizen of Singapore has an equal and rightful place, irrespective of race, language or religion. Before 1959, I was in primary school. At that time I could not fully understand what was going on in our island except that the British were the masters and we were not of the same status as them. Singaporeans were not happy over this state of affairs, and demanded the right to manage our own destiny. In 1959, we made the first step to independence, with internal self-government.”
“Mr Speaker, Sir, before I touch on the subject which I intended to speak on, I must say a few words about what the Member for Paya Lebar has said concerning the HDB. Let me declare my interest. I am a member of the Board of Directors of HDB. I think that the CEO of HDB was being frank when he said that during the rush to build so many flats the on-site supervision by the Board was poor and that HDB now has a programme to correct all these defects. An unfortunate event happened in Bedok where in the repair of spalling concrete, the floor caved in. A statement has been made by the HDB on this. We still do not know completely what happened because there are a number of things which could have given cause to this unfortunate accident. The Member for Bedok GRC, Dr Hong Hai, has asked for a full explanation and I think we should await for a full explanation of this incident before we jump to the conclusion that the buildings are unsafe for habitation. I think the last thing that we should do, as responsible Members of Parliament, is to cause panic. We should not cause panic among the people. Members will also recall in the statement of the HDB that with respect to the particular case in the block concerned, HDB has given an assurance that the building is safe and that the fault has not affected the structural integrity of that particular building. So I think we should all sit back and wait for the HDB's full explanation in response to the Member for Bedok GRC before we make any further statements on this. Sir, let me now turn to the subject that I wish to speak on. Here I must first express my support for the motion standing in the name of the Member for Tanglin. The most significant event of this session of Parliament is the impending leadership transition.”
“Sir, I beg to withdraw the amendment. Amendment, by leave, withdrawn. Encik Abbas Abu Amin (Pasir Panjang GRC): Sir, I have two other amendments Nos. 5 and 7. May I have your permission to move them together as they are inter-related?”
“Sir, with your permission, I will take both points.”
“Sir, I do not know which unions are being forced or have been forced to join the NTUC. But the question today is that there are 10 unions outside the NTUC fold with less than 5,000 members. It is their right to remain independent. The issue today actually is whether the NTUC should admit these unions into the NTUC fold whenever we receive an application from such unions to join the NTUC. I think that fact speaks for itself. With respect to the benefit that workers may have, or may not have, in his opinion, through industrial peace, let me just cite one figure. I do not want to go back to the days of the 1950s and 1960s. But just from 1980 to 1989, the median monthly wage in 1980 was $409. In 1989, the median monthly wage was $764. So the wage level has almost doubled in this decade. Of course, he will say that it has all been eroded by inflation. But how high and how fast has the consumer price index risen? In 1980 the index stood at 88.4. In 1989 the index stood at 106.9. So quite clearly with the rise in the median monthly wage, not the average wage, we can see that workers have benefitted from real wage increases. And have they got a better life? If Rip van Winkle were to wake up and look around him, I am sure he would have seen the progress which our workers have made. Sir, on that note, may I seek leave to withdraw the amendment. Amendment, by leave, withdrawn.”
“Let me give an example, pointed out to the Ministry of National Development and to me by the Ang Mo Kio Social Service Centre. This was also discussed by our PAP Workshop and presented at the recent PAP convention. Someone buys an HDB flat on the open market at open market prices. He finances it with his CPF savings, and services the mortgage through his CPF contributions. Then he loses his job and falls into arrears in his mortgage payments. After due process the HDB takes the step of revesting the flat. HDB then compensates the lessee based on the original selling price of the flat, which is considerably lower than the posted price, let alone the free market price. The result is that the buyer loses his life-long CPF savings, and probably owes the HDB more money. I have brought this matter to the HDB's attention and this inequity is being reviewed. But the CPF Board ought to have acted to protect the interest of CPF account holders. Sir, this example serves to remind us that we have to be careful with our CPF funds and it is unwise to encourage more and more consumption. Because in the end, where is the financial security at old age? CPF account holders should also calculate how much money they will need to finance the lifestyle they want on retirement. If CPF funds are depleted by current consumption, where do they stand? Sir, I would also like to ask the Minister for Labour that in the light of inflation whether he has any plans to adjust the minimum sum to be retained at the age of 55 when account holders withdraw their savings?”
“Sir, I turn to CPF. Over the years, we have seen a fundamental shift in the use of CPF - from providing financial security at old age to current consumption. Today, CPF can be used to purchase homes, stocks and shares, pay for hospitalisation costs, education, and insurance. As I have stated before, opening up the use of CPF for one thing will lead to requests for other uses. There is talk of the use of CPF for home renovation and to fund the resident's contribution to the proposed upgrading of HDB estates. Today, there is a letter in the Straits Times Forum Page asking for CPF to be used for medical check-ups. Sir, I do not dispute the merits of such things as education, renovation, good health and so on. But I question the need to link all these to CPF funds. In my opinion, they should be kept separate. Our CPF scheme is a success, so much so that people think it will always be so. Some people also think that if other countries could only adopt our CPF scheme it would solve all their social welfare problems. The fact of the matter is that other countries do have similar schemes but they do not work. Why? There are many reasons. Most important of all is whether there is an able Government as custodian of such funds. The integrity of Government and the civil service is critical if such funds are to be protected and not raided. Our CPF scheme has succeeded because we have this. CPF-funded schemes have worked only because we have had steady economic growth and low unemployment. If we did not have steady economic growth and low unemployment, then people will find difficulty meeting mortgage payments. Education, hospitalisation and insurance schemes will all fail. As it is, some CPF account holders have found that the CPF scheme is no automatic entry to the good life.”
“Employers must bear in mind that the objective of Government must be to safeguard the interests of Singaporeans. A permanent dependency on foreign workers should not be allowed. As it is, there are complaints from Singaporeans, following the relaxation of the work permit policy. Let me quote from one letter received by the NTUC: ' ... it is undoubtedly to suppress the wages of Singapore workers. It is sad to say that the Government does not listen to the views raised by our workers. Instead, it allows employers to pool their strength together and put forward their various demands, and now they have succeeded in getting what they have asked for. We must take note that there are many factories which do not employ workers above 40. As a result, many older workers become jobless. Does the Ministry of Labour notice this? The Ministry of Labour did promise to phase out foreign workers in the 1990s. What about this promise now?' Sir, clearly the Government has a balancing job to do. Whilst it does not want to be unduly hard on employers, it must also ensure that the interests of Singaporean workers, which is paramount, must be safeguarded. As such, I support the increase in foreign workers' levy, and the proposal to impose a quota on foreign workers. All employers, large and small, must work towards reducing the reliance on foreign workers, and not to increase this reliance. I would also suggest that the extension of work permits be made contingent on the employer showing proof that he has improved value-added per worker, and that he has tried hard enough to recruit Singaporeans. Sir, may I move on to my second cut?”
“Sir, I beg to move, That the total sum to be allocated for Head R of the Main Estimates be reduced by $100. As a Member of Parliament, in the past two years I have received almost every week, requests from residents to appeal to the Ministry of Labour for work permits to employ foreign workers. And they operate small businesses, ranging from photo studios, bakeries, hairdressing salons, motor workshops to printing enterprises. These employers say they are unable to employ Singaporeans, despite many attempts. In my opinion, there are two basic reasons why they are unable to attract Singaporeans. Firstly, the wages they offer are low, in comparison to those offered by bigger employers. Secondly, these small businesses do not offer attractive long-term career prospects for young Singaporeans. That such businesses are unable to pay attractive wages is easily understood, if we compare the value-added per worker of SMEs with that of the manufacturing industry. The value-added per worker of SMEs is only about $28,000 as compared to almost $60,000 in the manufacturing industry. So the ability to pay of the SMEs is about half that of employers in the manufacturing industry. This is why there have been constant appeals for relaxation of the foreign workers policy. These appeals have been heard and the Minister for Labour has announced a relaxation of the policy on 6th March. However, one must bear in mind what the Minister for Finance said in his Budget Statement - that those engaged in higher value-added businesses will receive more favourable consideration. SMEs should therefore consider the current relaxation of the policy for services as a breather to allow them to reorganise and upgrade. Otherwise, their dependency on foreign workers will become a permanent dependency.”
“Mr Speaker, Sir, I believe we have opened up even more questions after the work of the Committee and I hope that we will see active participation by the other Members of this House on this motion.”