Lim Swee Say
Singapore
“The number of reports received via the Snap@MOM app, number of valid reports and number of companies issued with enforcement actions between 2015 and 2017 are shown in the table below: All valid reports have resulted in warnings or enforcement actions.”
“In the case of students from ITE, polytechnics or autonomous universities, employers do not need to contribute CPF if the student is employed by them for training that is approved by their institutions.”
“Together with our tripartite partners at the national and sector levels, we have to do our best to transform across all sectors, for our economy to transform and grow, pervasively, as One Singapore Unlimited.”
“Between April and December 2017, the Tripartite Alliance for Dispute Management (TADM) and the Employment Claims Tribunal (ECT) concluded 3,750 employee salary claims where the employer was ordered to make payment to the worker. Salaries were fully recovered in about 92% of these orders. The remaining claims involved 139 employers.”
“The number of employed residents aged 62 and over, and 67 and over has increased over the last five years (see Table 1 below). Of all employed residents aged 67 and over in 2017, 64% were males; 80% held secondary and below qualifications, 9% had post-secondary qualifications, while 11% were tertiary-educated; 52% of this group of older w…”
“The proportion of full-time resident employees earning below $2,000 who received bonuses, including the Annual Wage Supplement, has remained stable at about 50% over the last decade. Employers and unions share the flexibility in structuring staff remuneration together under our Flexible and Performance Based wage systems.”
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“But the one that stood out clearly was his passion and commitment in what is known today as "Singapore Together". At the dinner, Singapore Together had not been launched yet. But later on, the more I heard about Singapore Together, the more I understood what he is trying to do and why that night he was so passionate talking about this. Singapore would not be where we are today if not for the tripartite partnership (3P) in our economy and the 3P partnership in our society. Under his leadership, it is loud and clear to me that the Deputy Prime Minister wants the 4G leaders to do even better, to do even more – engaging with Singaporeans, consulting them, rallying them to contribute ideas and act in concert, because he wants to forge a national ownership that is shared by all Singaporeans in the future development of Singapore. Mr Speaker, Sir, I always believe all my life that "People do not care how much you know until they know how much you care". I am heartened that our 4G leadership not only knows a lot about challenges in nation-building but also cares a lot about the sentiment, anxiety, aspiration and inspiration of our people. I urge everyone in this House, and all our fellow Singaporeans, let us all put our hearts, our heads and our hands together, to jointly create our future Singapore, one that is more globally competitive, more locally cohesive and more sustainable with unlimited potential. One that all of us will co-own and all will be proud of. Mr Speaker, Sir, Singapore Together, Majulah Forever. I support the Budget. [Applause.]”
“At the same time, they focus on the future and continue to groom their successors, because they know that no one can escape death and illness, and this is the law of nature. Every one of us will become old, but a country's leadership cannot become old. This is because nation-building is an endless journey. Therefore, while these leaders are serving the country and its people, they also spare no efforts in grooming leaders for the next generation. By doing this generation after generation, the country's leaders can keep up with the times and continue to do good for the people. Under their leadership, the country can achieve good progress, regardless of short-term or long- term developments. From the first to the current 3G leaders, Singapore has continued to grow from strength to strength under the "da wo" leadership style. I hope the 4G Leaders will uphold the same spirit and prioritise our country's long-term development and our citizens’ long-term interest above everything else. I also hope that our people will always treasure this leadership style. Only by doing this, can Singapore continue to progress and can generations of Singaporeans live better and be happier than their predecessors. (In English): Mr Speaker, Sir, a few months ago, I had a private dinner with Deputy Prime Minister Heng Swee Keat. He left a deep impression on me – not with his vast knowledge and deep knowledge about nation-building, because that I already knew. Minister Mentor once said Heng Swee Keat has one of the best brains in Singapore. And what came across clearly and strongly for me from that over four-hour dinner was that he also has one of the most caring hearts for Singapore and Singaporeans. We shared our views on many topics and many issues.”
“From more use of reusable bag and environmental-friendly car, to the separation of waste for recycling, returning of trays at the F&B outlets and so on, I hope we will strive to be a leading nation in our social behavior to improve our environmental performance and sustainability, so that our future Singapore will truly be a better Singapore in all aspects – more competitive, more cohesive, more socially responsible and more environmentally responsive. (In Mandarin): [Please refer to Vernacular Speech.] Mr Speaker, Sir, today, Singapore is a competitive economy, a cohesive society and a nation which can develop sustainably. This has been achieved through the collective efforts of all Singaporeans. The question is, why is it that most countries have capable and hardworking people but only a few countries can perform well? One of the key factors lies with the quality and style of leadership. In some countries, leaders are only concerned with "xiao wo" or self-interest. They jostle for power and put their self-interest above that of the country and its people. As a result, people’s lives are neglected and the country fails, with nothing being achieved. On the other hand, leaders from some countries adopt a "zi wo" or "self-centred" leadership style. They can perform well in the short run but are egoistic and lack successors. As a result, they may do well in the short run, but this success cannot be sustained for long. Fortunately, leaders from some countries adopt the "da wo" leadership style, or a selfless leadership style that focuses on the greater good. When they are in power, they work tirelessly to serve the country and its people.”
“I urge our 4G leadership to widen and deepen the adoption of PWM more proactively and more passionately to many more jobs in many more sectors so that the social divide of "High versus Low" can be turned into the social unity of "High and Low", moving up our employment ladder together. Second, "Young versus Old". Retirement age and re-employment age are set to move up progressively. This is good. But I hope much more will be done to transform many more jobs to be ESS – Easier, Safer and Smarter – for our older workers so that they can live more years of Happy and Healthy, Productive and Purposeful (H2P2) life as we live longer. Last but not least, local versus foreign. Competition for good jobs is global. Under SkillsFuture, we are doing much more to upskill and reskill our people. This is good. At the same time, I hope we will do more to transfer capabilities, especially new and emerging capabilities that are in short global supply from the foreign manpower, both local here and overseas, to our people more systematically and proactively. This is one best way to reduce the lose-lose mindset of local versus foreign – two-third versus one-third – and grow the win-win mindset of two-third plus one-third, equals greater than one. Mr Speaker, Sir, finally, for our future Singapore to be more livable, we need to forge a greater sense of pride and ownership in our living environment. Fifty years ago, we were a pioneer in embracing Clean and Green. Today, we are a pioneer in NEWater. Moving forward, I feel what we need is to create an environment where everyone in Singapore can participate everyday and everywhere in a more active and visible manner as part of our daily life.”
“AI has come a long way since then, not just in language translation, but in many areas, from banking to medical, engineering, data analytics and more. Together, AI and human intelligence (HI), "如虎添翼", can be like a tiger with wings, a powerful force to reshape our future for the better. The No 1 economy of today and the No 1 economy of tomorrow are competing head on to be the No 1 powerhouse in AI. Singapore, too, must do well in AI. And we can. When the First Conference on Innovative Applications of AI was held 31 years ago in 1989 in Stanford University, 30 pioneering AI applications worldwide were selected for presentation. And guess what? One of them came from Singapore! A group of AI engineers from the Information Technology Institute (ITI) presented the expert system they jointly built with the human experts at our PSA. With the recent launch of the National AI Strategy, we now have a national platform to innovate with AI faster and exploit AI better. We must run fast and excel in our ability to combine the complementary strengths of AI and HI, so that we can transform our future Singapore economy into one of the smartest in the future world. Next, for our future society to be locally cohesive, we must turn three growing social divides into social unities. First, "High versus Low". The success of a country is not judged by how well the people at the top are doing, but by how well the people at the bottom are helped by the government and treated by the general public. A widening income gap can and must be narrowed. The Progressive Wage Model (PWM) has four ladders of job, skill, productivity and wage. It can help transform every low-wage job into a better job, every low-wage worker into a better worker.”
“With the support of the entire nation, we achieved something unachievable in other places – the public acceptance of NEWater. And we pressed on for more, from NEWater to Green Sand to Zero Landfills. Indeed, despite our many limitations as a small country, we have done well as One Singapore Unlimited. Mr Speaker, Sir, looking ahead, "逆水行舟 不进则退". Nation-building is a journey against the flow. The global environment for trade and investment is changing, becoming more unconducive. Some countries may choose to continue to pursue globalisation – business as usual. Social gaps could widen more and the societies could become more divided. Some may choose to change track, towards deglobalisation. Their economies could become more inward-looking and, eventually, less competitive. For Singapore, our choice is clear. What we want is neither globalisation with a divided society, nor deglobalisation with a less competitive economy. We want the best of both worlds – a globally competitive economy and a locally cohesive society, both at the same time. "Globalisation" plus "localisation" give us "glocalisation", in short. How can we do better with "glocalisation"? First, for our Future Economy to be globally competitive, we must strive to be a pioneer and leader in the pervasive innovation with AI. AI is not new. The concept of thinking machine and machine learning has been around for 60 years. One of the early applications of AI is language translation. In the early days, someone keyed in "out of sight, out of mind". After being translated into another language and then back into English for verification, what came back was –"a blind idiot".”
“We counter rising healthcare cost with MediShield Life for all and we take extra care of our seniors with the Pioneer Generation Package (PGP) and Merdeka Generation Package (MGP). Again, billions of dollars. We also keep strengthening social mobility and people well-being, from upgrading of public housing estates, to the expansion and renewal of public transport, the upgrading of schools and the upscaling of preschool education. And the list goes on. Again, billions of dollars. In a world of growing divides, unrest and disunity, we, in Singapore, continue to live in peace and harmony. Because from the first generation (1G) to 2G and 3G, we never forget to channel the revenue generated from our competitive economy to take better care of our people. With this Unity Budget, our 4G is doing the same, and more. It will further strengthen our unity, cohesion and inclusiveness as One Singapore United. Last but not least, as a nation, we need to strengthen our sustainability for our long-term progress. Nation-building is a journey with no end. "人无远虑 必有近忧" in Chinese. That is, if one generation does not worry for the next generation, our future generations will have much to worry about. By then, it could be too late. Water supply is a prime example. Two-thirds of the world is covered with water, yet the world is short of clean drinking water. As an island, we could keep adding to our water supply with desalination. But it will be energy-intensive, costly and environmentally unfriendly. So, we came up with a same-same but different solution: not just adding, but also multiplying our water supply. We closed our water loop and we turned every drop of water into two drops or more with the advances in membrane technology.”
“But for my brothers and sisters in the Labour Movement, we would never forget how much was at stake and how important it was, and always will be, that we get it right every time, including this time round with the Stabilisation and Support package. Sir, our local workforce is over two million. They need meaningful jobs and careers to take care of themselves and their families. It is never easy to compete globally for good jobs and investments. But because we dare to be different, we never say die, we have created not just over two million jobs for our people. In fact, we created more than three million jobs for Singapore. Out of the three types of growth – economic growth, employment growth and wage growth – many countries could achieve may be one out of three, or two out of three. But for Singapore, we have achieved three out of three, consistently, decade after decade. Indeed, we have done well as One Singapore Tripartism. We are winners, not losers in globalisation. Next, as a society, our challenge is to minimise the downside of globalisation. Globalisation has widened inequality globally. It has disunited nations, divided people and broken up societies. Countries and economies most affected negatively have one thing in common: they pursued economic growth as their end objective at the expense of social cohesion. Not us in Singapore. Our end objective in nation-building has always been social cohesion, not economic growth. Economic growth is just a means for us to generate the resources we need to improve the lives of our people. This is why we counter social divides with social transfers, billions of dollars in every term of Government.”
“Mr Speaker, Sir, having served 23 years in Parliament, I ask myself, "How have we done as an economy, society and nation?" First, as an economy, our challenge is to maximise the upside of globalisation. Globalisation has redefined the world of technology and innovation, market and competition. The implication can be "dua ho, dua pai" in Hokkien or in Chinese, "大好大坏". Either very good or very bad. "大好", very good for those good enough to move up the economic ladder. "大坏", very bad for those unable to compete as they would be left farther behind. We are determined to succeed, to be "大好". To beat those who are cheaper than us, we try to be better than them. To beat those who are better than us, we try to be cheaper than them. But the cheaper keeps getting better and the better keeps getting cheaper. So, we restructure our economy continuously, faster than them. In short, we try to be cheaper, better, faster, not by lowering wages, but by raising skills and productivity and developing new business capabilities, so that we can command higher wages for our people, and higher premium for our businesses. We stay the course not just in good times, but also in bad. During the Global Financial Crisis, other countries cut jobs to save cost. With tripartite partnership, we did the opposite. We cut costs to save jobs. They tried to survive the downturn. We upturned the downturn. So, with an L-shape recovery, many countries took years to recover from their massive job losses. But with a V-shape recovery, we took just a few months to return to full employment. Not many Singaporeans remember what we did right at a time when so much could have gone wrong for us.”
“The number of reports received via the Snap@MOM app, number of valid reports and number of companies issued with enforcement actions between 2015 and 2017 are shown in the table below: All valid reports have resulted in warnings or enforcement actions. The enforcement actions included Notices of Non-compliance, composition fines and/or Stop Work Orders. The Snap@MOM app was enhanced and replaced by the SnapSAFE app on 1 December 2017. It has a new internal corporate reporting function for in-house reporting of WSH lapses, near-misses or accidents to facilitate company ownership on WSH. As it is in its initial months of launch, we are currently reaching out to more companies to adopt this as an internal WSH reporting tool.”
“In the case of students from ITE, polytechnics or autonomous universities, employers do not need to contribute CPF if the student is employed by them for training that is approved by their institutions. For students from private education providers or private universities, employers are exempted from making CPF contributions only if the student is (a) enrolled in a full-time programme subsidised by the Ministry of Education (MOE); and (b) employed by them for training that is approved by their institution. The list of such programmes may be found on the MOE website.”
“Exactly. So long as you are a private sector organisation, you can apply.”
“The healthcare sector, I think for the hospitals, you are not considered Government, right?”
“Mr Chairman, my answer is a quick one. For CTP, funding support is only for the private sector organisations, not for public sector.”
“Mr Chairman, basically the disputes provided for under the EA are what MOM can handle. When ECT was set up, it was set up to handle only salary-related claims. Even so, the tripartite partners decided that we will go on voluntary mediation for disputes which are not salary related. In other words, we currently do not have the legal rights to mediate non-salary related claims, but we did it on the basis whereby we asked the employers/employees whether they are prepared to do so on a voluntary basis. As it turned out, the percentage was, if I recall correctly, at least more than 70% of them were prepared to do so. With that in mind, we have decided why not take the next step to formalise it? So, that is what we are doing. Mr Dennis Tan asked whether some of these dispute resolutions would come under ECT. For those wrongful dismissal disputes which are covered under EA, they will all be transferred to ECT. So, that is the next step. All salary-related and wrongful dismissal disputes, which were covered under the EA, will now be transferred to ECT entirely. In addition to that, because we have removed the salary ceiling, more people can now qualify for EA. As a result, more of them, next year, when we amend the Act, will be able to benefit from the one-stop service from ECT.”
“Together with our tripartite partners at the national and sector levels, we have to do our best to transform across all sectors, for our economy to transform and grow, pervasively, as One Singapore Unlimited. We also have to do our best to create better jobs, better skills for everyone to adapt and grow inclusively as One Singapore United. Advances in technology will destroy many old jobs globally and here in Singapore. But if we do more together to build new and better capability faster than our competitors, we can move ahead and stay ahead, to make every enterprise a better enterprise, every job a better job and every worker a better worker. Together, we can strive for innovative, inclusive and sustainable growth for everyone. Ultimately, as Minister Heng Swee Keat said in Budget 2018: Together, A Better Future. On that note, I thank you, Sir. [Applause.]”
“We should not be competing against each other within the country but against competitors overseas, in order to achieve better economic growth and better employment opportunities for Singaporeans. For some countries, just strengthening their economic competitiveness is considered a success but, for Singapore, we have to strengthen our competitiveness as well as the cohesiveness of our workforce. To us, that is what success really is about. There are two types of pathways in this world: easy paths and difficult paths. Some countries choose the easy path because it is easier and they can travel faster, but eventually, instead of reaching their destination, they reach a dead end. What we have chosen is not an easy path. We know that in transformation and upgrading, there are no shortcuts. Although the path is not easy, but as long as our tripartite partners work together and help our workers, we will be able to move ahead of others. When we reach the destination, it is definitely not a dead end but a brand-new wide horizon. Therefore, let us continue to forge ahead together on this difficult path with a common belief, as one economy, as one society, as one country. Only then can we ensure that Singapore continues to maintain a special place in the Association of Southeast Asian Nations (ASEAN), in Asia and the world. And only then can we ensure that our workers have better jobs, better wages, safe and happy homes, that each generation will be better than the last, and that lives continue to improve. (In English): Sir, we firmly believe that a job is the best welfare, and full employment is the best protection for our people.”
“In a world where only the fittest will survive, we have adopted a two-pronged strategy. First, shi shi zao ying xiong (heroes are born out of circumstances). The rapid development of technology and innovation is inevitable and cannot be stopped. If we refuse to make changes or are slow to adapt, we will definitely be eliminated. People say that it is better to suffer for the short term than to endure pain for the long term. To continue with our development, we must master new technology, transform quickly and strengthen our competitiveness. With determination, we have achieved significant results. The economy has turned around, productivity has gone up, unemployment rate has gone down and wages are growing. This is something that we have achieved by working together. But we cannot be complacent. Economic transformation is like rowing a boat against the current. If we do not move forward, we will be pushed backwards. Our second strategy is ying xiong zao shi shi (heroes create the right circumstances for themselves). As we strengthen our economic competitiveness, we must also optimise our unique strengths and advantages, as well as strengthen the cohesiveness of our workforce. This is critical. We must ensure that the benefits and opportunities brought about by the future economy benefit every segment of our society, regardless of age, level of skills and income. We must pay special attention to older and lower-income workers. We must also help workers with young children and aged parents, so that they can look after their families while advancing their careers. We must also learn from others and overcome our shortcomings, ensure that locals and foreign workers can work better together and benefit from each other.”
“Projects with higher impact on the industry and those benefiting SMEs will receive a higher level of support. So, Mr Low Thia Khiang would be pleased to hear this. So, if the industry impact benefits mainly SMEs, you will get a higher level of support. Total funding per project is currently capped at $300,000. In exceptional cases, as highlighted by Mr Patrick Tay, where the cost of capability transfer is high, and local expertise is much needed but lacking, funding support of up to 90% and project cost of more than $300,000 will be assessed on a case-by-case basis. Mr Desmond Choo said we should scale up CTP and accelerate the acquisition of new capabilities. I agree with him fully. We started the pilot late last year, just a few months ago. We will reach out extensively to create more awareness and generate more interest. We hope our sector agencies and tripartite partners, including the Labour Movement and various industry groups, will make good use of CTP to fill the many capability gaps in a more pervasive manner. We hope to do this across all sectors, with all sizes of companies, as quickly as possible. Sir, our strategy of "two-thirds plus one-third, greater than one" will help ensure that our Singapore Workforce can better support the growth of an innovative Singapore economy, and also create better skills, jobs and careers for an inclusive Singapore Workforce. "Two-thirds plus one-third, greater than one" may be bad mathematics. However, if we work together, I am confident that even bad mathematics can be turned into good manpower policy for the benefit of all. Mr Chairman, in Mandarin, please. (In Mandarin): [Please refer to Vernacular Speech.] Chairman, the whole world is changing rapidly.”
“Under CTP, we will partner the Singapore Motor Workshop Association to bring in specialists from Germany to train our local mechanics and to transfer the capability to our local industry. Sir, these are just some examples to illustrate the point that the scope for capability transfer is tremendous – Hi Tech to Hi Touch; MNCs to SMEs; domestic to export-oriented industries. We will support good projects from any company and any industry beyond those currently supported by economic agencies for specific sectors. Mr Patrick Tay asked for details of CTP. To achieve real transfer of capability, project duration is mostly in months and years, not days and weeks. Specialists have to do more than just training but also coaching and working alongside our local workers and be their trainer, mentor and guide. Costs can often be the obstacle, especially for local enterprises. Under CTP, we will co-fund the cost of capability transfer for foreign specialists to train our locals here or for local trainers to be trained overseas so that, over time, we will be able to anchor more capabilities here to upgrade our local workforce and industries as we transform, adapt and grow. In reply to Mr Low Thia Khiang, I would like to assure him that in our project evaluation, we will consult the sector agencies and be guided by the various ITMs to ensure that these capabilities will really be relevant and able to strengthen our future competitiveness. Mr Patrick Tay asked about the funding levels. Funding support will range from 30%, 50% and 70% of the cost of capability transfer, which includes the salary cost of the expert trainers, both local and foreign; cost of living allowances in Singapore and overseas; airfare and training equipment for the industry.”
“In this way, we can anchor "smart lift" capability in Singapore. Furniture manufacturing is another example. Not many of us know that our local furnishing industry is a S$6 billion industry with over 1,900 companies. Manufacturing facilities here focus mainly on made-to-order furniture. Today, we can design and make furniture using three-axis Computer Numeric Control (CNC) machines. I asked them what does it mean by "three-axis", they said these machines can move left, right, up, down, front and back. In the words of the industry themselves, we are now still at Industry 2.0. To upgrade our local industry to 4.0, we will help them to bring in the 5-axis CNC machines where the tools can twist and turn, cut in different directions, to create contour and more complex shapes. So, this will also make the jobs of the craftsmen ESS! Under CTP, the Singapore Furniture Industries Council, together with WSG, will bring in specialists from Italy to train our local trainers and craftsmen. Another example of a domestic industry is car maintenance. The market for hybrid cars grew by 200% in the last two years, from 6,000 a year to 20,000 last year. New capabilities are needed for the repair and maintenance of these hybrid cars, no longer just changing the oil filter, checking and replacing battery, lights and brakes, but have to handle a completely different system, such as carry out a battery load test, high voltage cable inspection, front motor test, hybrid transmission test and so on. Currently, independent third-party car workshops have no access to certifiable training to improve the skillsets of our local technicians.”
“In the area of pharmaceutical transportation, today, more than 20,000 tonnes of global pharmaceutical cargo go through Changi Airport annually. The global market is still growing and growing very fast. But out of 209 companies certified by the International Air Transport Association (IATA) to handle such cargo, we have only 10 of them here. To grow Singapore's market share in a global industry that is growing very fast, the Singapore Aircargo Agents Association (SAAA), the Changi Airport Group (CAG), the Civil Aviation Authority of Singapore (CAAS) and the industry, they want to work together to bring in IATA-certified trainers from the UK and Dubai to train a group of local specialists here, who will then be able to multiply this capability by training other locals. In total, we aim for up to 25 companies, up from the 10 currently to 25, to be able to obtain IATA certification. So, here is another example of capability transfer. Sir, CTP is also relevant to the domestic sector. For example, in lift maintenance, the current approach is wait for the lift to break down, then repair, then wait for the lift to break down again. A better approach actually is to make all our lifts in Singapore into "smart lifts", using predictive data analytics and maintenance, to shift from corrective maintenance, which means waiting for failure, to preventive maintenance before failure, which is being done by many companies today, to predictive maintenance, or reduce the probability of failure. So, predict what is likely to happen before it happens. Under CTP, we will partner leading global vendors to bring in overseas specialists or send our local trainers overseas so that, later on, they can return to train our local trainees here.”
“Sir, all these are important and strategic initiatives to bring and keep us at the forefront of global technology and innovation. However, to truly succeed in becoming a pervasively innovative economy and society, we need to do much more. We need to speed up the development and transfer of new and better global capabilities to our local workforce, a point made by Mr Chong Kee Hiong, not just in high-tech, high-profile and high-impact sectors, but in as many sectors as possible, and as quickly as possible. This is why we are piloting CTP because the potential scope for transfer and development of new capabilities is limited only by our focus and determination. Mr Patrick Tay asked for an update. I will illustrate with a few examples. In Precision Engineering, smartphones are getting bigger but flatter and lighter. Hence, our local industry needs to use softer alloy and fit in more chips and components. Companies need to use high-speed, high-precision machines to prevent cracking and warping. Local engineers and technicians are also required to have new skills to advise on product design and material selection. To compete well, our local industry needs to acquire new technologies and new capabilities to offer lower cost – to be cheaper; higher accuracy – to be better; and shorter cycle time – to be faster. So, cheaper, better and faster. Under CTP, over a period of 15 months, we support our precision engineering companies to install high-speed high-precision machines and to bring in foreign specialists from Germany to train our local trainers, training locally as well as through remote coaching, who are now able to train our local trainees from several companies in the industry.”
“In fact, the faster, the better, and we are. We are running fast in Advanced Manufacturing. At Bedok Industrial Estate, my constituency, Panasonic is building a Smart Factory there. It will have machines fitted with sensors interconnected to work with one another. Operations will be more manpower-lean and the local workers will be retrained to take on new and better jobs, such as robot coordinators. The adoption of predictive management will mean near-zero operation incidents, such as no machine breakdowns, no product defects. We are also running fast in AI. We now have AI Singapore, our National AI programme, to anchor deep national capabilities in AI. We also have the AI Business Partnership Programme to encourage and facilitate AI adoption in our industry, and the AI Apprenticeship Programme to develop AI professionals with key skills, such as machine learning and deep learning. In digital services, the Monetary Authority of Singapore (MAS) is promoting fintech to realise our vision of becoming a Smart Financial Centre. It is working with industry to push through ground-breaking initiatives – blockchain, quantum computing, Big Data, AI and so on. In fact, we move so fast that, today, Singapore is one of the top global fintech hubs alongside London, New York and Silicon Valley. We are also running fast in becoming a Smart Nation. In the 1980s, when I was still a young man, we became an Intelligent Island through national computerisation, office automation and computer-integrated manufacturing. This time round, we aspire to become a Smart Nation and a Digital Government through the Internet-of-Things (IoT), National Digital Identity, Smart Urban Mobility, Cybersecurity and more.”
“China is the world’s No 1 user of industrial robots today. Globally, there is a big concern that foreigners will take away jobs from the locals. Yet, more countries are opening up even more to attract foreigners with the skills and expertise to offer, including China and Japan. This reminded me of the story of two men walking in the jungle. A tiger was catching up on them. One of them squatted down to tighten his shoelace, the other asked "what are you trying to do?" He said, "I am tightening the shoelace". "But the tiger is coming on us, you still have time to tighten your shoelace?" He said, "Yeah, because I am getting ready to run." "You mean you can run faster than a tiger?" "No, of course not. But all I need to do is outrun you." Now, in the global village, it is not possible to outrun technology, but we can outrun the competition. Those running slower will see more jobs being destroyed by technology. Those who run faster can create new jobs with technology more than the loss of existing jobs to technology. This explains why China is running fast with robots, and Japan is not slow, too. With the help of robots and AI, Honda Motor, Canon and Pioneer are bringing production of car components, car navigation systems, digital cameras back to Japan. So, "Made-in-Japan” is making a comeback but, this time, with the help of not just robots, but intelligent robots and human co-workers. With the world out there running fast, just imagine, what if one day, a "cheaper" China becomes better by using technology faster than us, and a "better" Japan becomes cheaper also by using technology faster than us. If this happens, they would become cheaper, better and faster than Singapore. What future will we have then? 12.30 pm So, Singapore must run fast, too.”
“FWAs are offered to allow those with care responsibility at home to share job; and for employees to go on sabbaticals and pursue new opportunities within the company when they return; to pursue part-time studies to upgrade themselves; or to enable retired employees to return to work on a part-time basis. Third, HCP companies believe strongly in strengthening local-foreign complementarity. They transfer skills from foreign experts to our local workforce and build up the local core in their senior management team. One HC Partner which left a deep impression on me is Keystone Cable. Keystone Cable is a local SME with 140 employees. It is a maker of power and control cables with a strong foothold in the region. The plant is located in Senoko, not easy to attract locals. In fact, it has to work doubly hard to compete with MNCs for talent. But as a flexible and nimble SME, it embraces the mindset of human capital development. Starting off as a delivery driver, Mr Jimmy Wong is now a Sales Executive. He brought in $1 million worth of sales in just six months in his new job. He is now being groomed to take on clients in overseas markets. The company was able to attract 20% more job applications last year. But what is even more impressive is that 100% of those they offered jobs to accepted their offers! Sir, we will keep growing the HCP community, as suggested by Mr Patrick Tay. We will also promote adoption of tripartite standards, as reminded by Ms Thanaletchimi. Fifth and last, we must strengthen the synergy between "two-thirds local" and "one-third foreign" so that the outcome will not be "equal to one", but "greater than one". Globally, there is big concern that technology will take away many jobs. Yet, we see an amazing race to embrace technology.”
“Those on 18 years, to 22 years; and from 22 years to 26 years. This will apply to all sectors and for both R1 and R2 to take effect from 1 May this year. We will also give employers more pathways to improve the quality of their foreign workers. Besides skills certification, those who are more experienced with higher salary can also be upgraded from R2 to R1 pass. This is currently allowed for Construction, Process and Services sectors. We will now extend it to Manufacturing and Marine Shipyard sectors. We believe this will be helpful to companies that want to hire and retain their better Work Permit holders. It will take effect from 1 September this year. Fourth, for "two-thirds plus one-third, greater than one", we need to make the "plus" better. To recognise and spread the adoption of progressive HR practices, we launched the Human Capital Partnership (HCP) Programme in February last year. One hundred and thirty-four HC Partners are now on board. They are from various sectors ranging from MNCs to SMEs. Together, they employ over 140,000 locals. Mr Patrick Tay, Ms Jessica Tan and Assoc Prof Faishal Ibrahim asked for an update on HCP. Sir, HCP companies believe in transforming HR into HC, that is, Human Resource into Human Capital, not consumption of Human Resource but investment in Human Capital, turning HR into their most precious capital. First, they have strong local core at all levels. Collectively, local PMETs account for about 90% of the total PMET workforce in these companies; not just more than 90% at the entry to middle level, but also more than 80% at the senior to top levels. Second, their workforce is highly inclusive. Jobs are redesigned to be less physically demanding for the older workers.”
“It is designed to improve the quality of both our local and foreign workforces in Singapore and enhance the complementarity with each other. This is so that we can meet the manpower needs of businesses for them to transform and grow and the career aspirations of our people for them to adapt and grow. Guided by this policy objective, we will introduce further changes to make "one-third foreign" even better. For the S Pass holders who are mid-level skilled foreigners, their minimum qualifying salary was last updated in 2013. I agree with Mr Patrick Tay that it is timely to review. We will increase entry level salary by $200, up from $2,200 to $2,400. As per current practice, those with more years of experience will need to meet higher salary thresholds. To allow companies more time to adjust, the increase will be done in two steps: $100 from January next year and the next $100 from January 2020. We will also provide a transition period for existing S Pass holders. For Work Permit holders, there will be no further tightening for now, hence, no change to dependency ratio ceiling (DRC) and levy. As pointed out by Mr Melvin Yong and Mr Thomas Chua, our focus is to enhance the quality and productivity of these foreign workers. Work Permit holders at basic skill level (R2) from non-traditional sources and the People's Republic of China (PRC), they are now allowed to work here for a maximum of 10 years. Those with higher skills (R1) in Services and Manufacturing are allowed to stay here for up to 18 years, and 22 years if they work in Construction, Process and Marine Shipyard. In response to feedback from the industry, we will extend the maximum period of employment by another four years. So, for those on 10 years, will now go to 14 years.”
“By working together, complementing each other more and competing with each other less, our Singapore workforce of "two-thirds local and one-third foreign" will be able to support a faster pace of industry transformation for us to compete better globally for better investments and jobs. Mr Lee Yi Shyan asked for flexibility for employers to hire foreign PMETs, especially those with skills in great shortage in Singapore. Sir, let me clarify that the tightening of EP criteria should not be an issue for most foreign professionals with skills in great demand globally and in short supply locally. These include, for example, AI, data analytics, advanced manufacturing, digital services. These are the expertise often cited in the media by various business groups. Such professionals would command a salary premium and should be able to meet our EP criteria, in terms of salary, qualification and experience. With the exception of those on our FCF Watchlist, as long as the employing companies have complied with our FCF in giving fair consideration to our local PMETs, they should generally be able to obtain approval for work pass applications for such specialists in short supply globally and in critical shortage locally. In the exceptional situation where the EP applicants with the skillsets much needed here and yet are not able to meet our EP criteria, we do allow sector agencies to exercise some flexibility but only in a highly selective manner, on the condition that there is, indeed, a shortage of such skills here and that these foreign professionals are needed to help speed up our industry transformation and growth. Sir, so on balance, our manpower policy is both pro-business and pro-worker.”
“But on the other hand, we hear ground feedback that there are still too many foreigners, too much competition here for jobs with our locals. They feel that our foreign manpower policy is too loose. So, to them, MOM is not pro-worker enough. Sir, the policy objective of MOM is to strike a fine and dynamic balance between the two – open enough to be pro-business to support business growth, and yet, at the same time, tight enough to be pro-worker to enhance local employment growth. We, therefore, stay open to the intake of foreign professionals, but continue to tighten the criteria for EP. We did that in 2014 and 2017. This is to calibrate the growth of EP holders and enhance their overall quality, both at the same time. Assoc Prof Faishal Ibrahim asks for the outcomes. In the past three years, on average, we approved about 50,000 new EPs every year. But at the same time, about the same number of EPs were not renewed, and the growth of EPs, therefore, slowed to an average of 3,000 a year in the past three years. This is significantly lower than the peak of 32,000 in one year, in 2011. On the whole, the local share of net growth in PMET employment improved from an average of 68% in the previous three years – 2012 to 2014 – to an average of 78%. So, from 68%, it went up to 78% in the past three years. Out of every 10 net increase in PMET jobs in the last three years, seven to eight of them went to our local PMETs. Sectors where locals accounted for a large majority of the net growth in PMET employment include professional services, infocomm, healthcare, finance and insurance. In short, we were able to draw on foreign professionals to help meet the manpower needs of the industry, while at the same time strengthen our local core.”
“Sir, we will continue to fight this win-lose mindset of "two-thirds plus one-third less than one", because it results in a waste of our precious human capital. Second, for "two-thirds plus one-third, greater than one", we will make the "two-thirds local" better and strengthen our local core. I agree with Ms Jessica Tan and Mr Lim Biow Chuan. We will continue to enhance the employment and employability of Singaporean PMETs. We will create more jobs of the future for them through Industry Transformation. We will create more skills of the future in them through the SkillsFuture movement, and we will create more careers of the future with them through the Adapt and Grow initiative. To ensure fair access to more jobs and better jobs, we will strengthen the FCF further, as suggested by Mr Patrick Tay. We will expand the requirement to advertise jobs on the national Jobs Bank before EP application to cover more employers, not just those with more than 25 employees, but also those with at least 10 employees. At the same time, it will also cover more jobs with a salary of up to $12,000 as of today, to jobs with a salary of up to $15,000. This will take effect from 1 July this year. Sir, thirdly, for "two-thirds plus one-third, greater than one", we will make the "one-third foreign" better, a point made by Ms Jessica Tan. As we moderate the intake of foreign manpower, especially foreign professionals, employers say they cannot find enough locals who have the skills and are willing to do the jobs. They say this has slowed down their pace of business transformation and growth. They feel our foreign manpower policy is too tight. To them, MOM is not pro-business enough.”
“Since we started in February 2016, a total of 1,900 EP applications have been withheld or rejected by MOM or withdrawn by the companies. TAFEP worked with them to improve their HR practices. WSG, NTUC-e2i and Institutes of Higher Learning (IHLs) worked with them to recruit fresh graduates and our mid-career local PMETs. As a result, more than 2,200 Singaporean PMETs were hired by these companies. One of these companies is an IT services firm with more than 1,000 PMET employees. It was placed on the Watchlist in February 2016. The company worked with TAFEP and the Infocomm Media Development Authority (IMDA) to attract and retain locals and hired about 200 more Singaporeans. After exiting from the Watchlist, this company continues to adopt fairer and more progressive HR practices. Indeed, these are win-win outcomes for both the business and the workers. Another example, a private wealth management company with 80 PMET employees used to hire mostly foreign PMETs to serve mostly expatriate clients. It was placed on the Watchlist in February 2016. Since then, it has repositioned to serve both local and expatriate clients, and they hired 30 Singaporean wealth managers and PMETs, trained them here as well as overseas. After being removed from the Watchlist, the company continues to hire and develop more of our local wealth managers and PMETs to grow their business. Again, another case of win-win outcomes. 12.15 pm So far, 150 companies out of the 500 companies have improved their HR practices and exited from the Watchlist. Of the remaining 350 companies, 60 of them have not been cooperative and showed no signs of improvement. We have curtailed their work pass privileges: no new EP applications, no renewal of existing EPs, until they adopt fair HR practices.”
“Last but not least, our fourth and probably one of the most critical challenges is to ensure that slower growth of our Singapore Workforce will not become the bottleneck in the future growth of our Singapore Economy. Today, our Singapore Workforce of 3.4 million is made up of 2.3 million locals, two-thirds of the total workforce; and 1.1 million foreigners, one-third of our total workforce. So, "two-thirds" local plus "one-third" foreign give us "one" Singapore Workforce. With slower manpower growth into the future, we need to maximise the potential of our two-thirds local and our one-third foreign so that, together, we can maximise the potential of our Total Singapore Workforce. We must strive for two-thirds plus one-third is not just equal to one, but greater than one. First, we must not allow two-thirds plus one-third to be less than one, and this could happen if unfair employers discriminate against our local workers. To prevent this from happening, we are pro-business but only to those businesses which are pro-worker. We have identified 500 companies so far. They have the preconceived ideas that our local PMETs are either unable or unwilling to do the job. So, they write them off without even considering them fairly. We, therefore, put them on our FCF Watchlist. Their EP applications are subjected to additional scrutiny. This is to eradicate "nationality bias", as described by Mr Patrick Tay. In response to Mr Patrick Tay and Mr Chong Kee Hiong, these companies on our Watchlist come from various sectors, including employment agencies and placement companies. Mr Patrick Tay, Ms Jessica Tan, Mr Chong Kee Hiong, Mr Lim Biow Chuan and Assoc Prof Faishal Ibrahim asked for an update.”
“Assoc Prof Daniel Goh spoke about protection for contract workers. The tripartite partners launched the Tripartite Standard on the employment of term contract workers in July last year. For contracts of 14 days or more, the Standard calls for companies to treat contracts renewed within one month from end of previous contract as continuous and cumulative in terms of length of service, for the computation of leave benefits and the notice period for early termination or non-renewal. It also calls for companies to provide training to ensure that their contract workers can perform their roles effectively. Assoc Prof Daniel Goh asked for an update. As of end February, more than 550 employers, covering more than 30,000 term-contract employees, have adopted this Standard. So far, we have not received any complaint from any of these contract employers. Assoc Prof Daniel Goh also suggested that we should conduct audits and surveys, and to include retrenchment benefits in the Standard. Being a new Standard, the focus now of the tripartite partners is to increase the adoption by more employers. So, we will look into the suggestions by Assoc Prof Daniel Goh when we next review the Standard. Sir, another important area of protection for our workers is their safety and health. Through joint efforts of the tripartite partners, our WSH performance has improved. The fatality rate has dropped to 1.2 last year, the lowest level ever recorded for our workforce. Our next target, under WSH 2028 to be formulated, is to bring it down further to below one per 100,000 workers. We are also committed to reduce workplace injuries as well as to enhance workplace health by embracing a mindset of Total WSH. Minister of State Sam Tan will elaborate later.”
“All core employee benefits in EA, including annual leave, paid public holidays, paid sick leave and paid hospitalisation leave and other protection, such as timely payment of salary, maternity protection and childcare leave, statutory protection against wrongful dismissal and the right to preserve existing terms and conditions for employment transfer resulting from sale of business and business restructuring, all these will now be extended to all employees. And this will cover an additional 430,000 PMEs. Mr Patrick Tay asked for more clarity on the types of transfers within or outside the scope of section 18A about sale of businesses and business restructuring. We agree that more clarity is useful. We will work with the tripartite partners to update our guidelines on this. Second, we will extend additional protection on hours of work and overtime payment to more workers. For workmen, the current salary cap of $4,500 already covers more than 99% of workmen. So, there will be no change. But for non-workmen, the current cap of $2,500 will be raised to $2,600 so that this enhancement will extend coverage to half of our workforce. As for overtime pay, the salary cap for non-workmen will be revised upwards, from $2,250 to $2,600. About 100,000 non-workmen will benefit from this increase. The third and final change to the EA concerns dispute resolution relating to salary disputes or wrongful dismissal. Currently, all salary-related disputes are mediated at TADM. If unresolved, the claims are heard at ECT. But wrongful dismissals are adjudicated by MOM, not ECT. We will shift it over to ECT to provide both employers and employees with "one-stop service". We will seek Parliament's approval of these amendments to EA later this year for implementation by 1 April next year.”
“With the growth of the platform economy, we can expect to see more freelancers and SEPs. We are concerned for them in terms of skills upgrading, fair treatment, loss of income due to injury or illness and savings for healthcare and retirement. Minister Josephine Teo will elaborate on this later. For the vast majority who still engage in jobs with the employer-employee relationship, Mr Patrick Tay and Dr Intan Mokhtar called for a review of the EA. I agree with them. Currently, EA covers three groups of employees. First, all workmen who are manual workers or blue-collar workers, including most technicians; second, all non-workmen who are non-manual workers or white-collar workers; and lastly, some but not all managers and executives with a salary cap of $4,500. With PMETs making up 56% of the local workforce now, going up to 65% by around 2030, it is timely to make a more fundamental change to the coverage of EA. In consultation with the tripartite partners, we have decided to enhance our current EA framework. First, we will remove the salary cap of EA to cover all employees, including all PMETs. I am sure Mr Patrick Tay must be very happy to hear this because he has been championing this for many years. The exceptions are public servants, domestic workers and seafarers who are covered separately, such as by other Acts due to their nature of work.”
“Employment rates for mature workers aged 55 to 64 and 65 and over, have continued to improve. We are also actively promoting more companies to make better use of technology to make jobs Easier Safer and Smarter (ESS) for our mature workers. Mr Zainal Sapari and Dr Intan Mokhtar suggested raising their CPF contribution rates. Mr Heng Chee How suggested to review the need for statutory retirement and to raise re-employment age further beyond 67. Sir, the Tripartite Committee on Employability of Older Workers was set up in 2005. The issues raised by Mr Heng, Mr Zainal Sapari and Dr Intan are important issues. The Tripartite Committee will study them. Sir, for low-wage workers, I agree with Members that we must do more to improve their skills, productivity, careers and wages in a more sustainable manner. We introduced the PWM for cleaning in 2014, followed by landscaping and security two years later in 2016. The outcome is positive. A few days ago, I came across a Straits Times article by NUS economists Kenneth Ler and Ivan Png titled "Impact of Progressive Wage Model", and I quote, "In sum, as a unique kind of "minimum wage" policy, the PWM has succeeded in raising wages without apparently reducing employment. More importantly, as a tailored, structured and progressive policy, it provides a wage ladder for low-skilled Singaporean workers, holding out its promise of growing income over time." Sir, we will make the adoption of PWM more widespread to benefit more workers. Minister of State Sam Tan will elaborate later. Third, better protection for our workers. Our workforce is changing fast. We now have more PMETs, fewer rank-and-file. This trend will continue. Our employment landscape is changing too.”
“And these are: better job growth in our economy; better employment outcomes for our people; better protection for our workers; and lastly, better capabilities in our Singapore Workforce. First, better job growth in our economy. Average net job growth of less than 10,000 a year in the past three years was not high enough. We need to bring it up to about 25,000 to 40,000 a year to provide enough jobs for a 3.4 million workforce growing at about 1%. We must also keep improving the quality and attractiveness of jobs to meet the higher aspirations of our people. So, instead of developing Lean Enterprises individually, we need to develop Lean Industry collectively, especially for sectors that are less attractive to locals today. Minister Josephine Teo will elaborate on this. Second, better employment outcomes for our people. Last year, under the Adapt and Grow initiative, we helped more than 25,000 jobseekers to secure jobs successfully. Even though the resident unemployment rate has declined since June last year, we are still concerned that unemployment in future is likely to be stickier, not due to shortage of jobs but shortage of skills and job-skill mismatches. I think the concern was also shared by Mr Low Thia Khiang. We have enhanced the national Jobs Bank into an online job portal known as MyCareersFuture. We are also strengthening the Adapt and Grow Initiative to minimise missed matches and mismatches. Minister Josephine Teo will elaborate later. Sir, as we make our economy more innovative, we must also keep our workforce inclusive, young and old, high and low in terms of age and skill profile, and for both genders. For our older workers, the re-employment age was raised from 65 to 67 last year.”
“In terms of wage growth, annualised real income growth of our residents for the previous three years is shown in grey and, for the past three years, it is shown in pink. So, grey means 2012 to 2014, and pink means 2015 to 2017. We can see that real income grew faster across all income groups, up from 2.3% to 3.7%. We can also see that wages at the 20th and 30th percentiles (P20 and P30) not only grew faster than before but also higher than most income groups. Sir, economic and workforce restructuring is never painless, but we have to do what is necessary. We are certainly in a better shape today. In the past three years, manpower growth has slowed from an average of 4% to 1%, while productivity gain has grown from 0.4% previously to 1.8% over the last three years on average, 1.8% per year over the last three years. 12.00 pm Having transformed from a high manpower growth, low productivity gain of 4 + 0.4 = 4.4, or 4% manpower growth and 0.4% productivity growth, to give us 4.4% gross domestic product (GDP) growth, from 2012-2014, we have transformed to 1 + 1.8 = 2.8 in the last three years. That is, 1% manpower growth and 1.8% growth in productivity, to give us the average of 2.8% growth on GDP. We are now much closer to our future growth strategy of 1 + 2 = 3. Sir, 1 + 2 = 3 is not a rigid formula for future growth but it is a framework to remind us of the need to become more manpower-lean and more productive if we want to ensure that our future growth will be more sustainable. Mr Desmond Choo asked if the productivity growth is sustainable. Sir, we have made good progress but transformation is uneven, not pervasive enough across all sectors. To make transformation and productivity growth more sustainable, we must press on with four key thrusts.”
“Thank you, Sir. The employment landscape has changed in the past three years from 2015 to 2017, compared to the previous three years from 2012 to 2014. Net job growth slowed from more than 100,000 a year to less than 10,000 a year. Retrenchment went up to 19,000 in 2016. The resident unemployment rate increased to 3.2% in December 2016. The long-term unemployment rate went up, too, to 0.8% in September 2016. The reasons were partly cyclical but mostly structural: externally, faster pace of technology and innovation and keener and stronger competition; internally, ageing of the local population and the changing profile of our local workforce. Manpower-driven growth of the past was no longer sustainable. Low productivity growth will weaken our economic competitiveness. Fast growth of foreign manpower will increase social tension and weaken our social cohesion. This is why we have to transform our economy to be more innovative, manpower-lean and productive. As we transform, we are mindful that one main concern out there is about jobs. Will technology destroy more old jobs? Will foreigners take away more new jobs? Will we end up with "jobless growth" for our people? Ms Jessica Tan, Mr Lee Yi Shyan, Mr Desmond Choo and Asooc Prof Faishal Ibrahim asked whether our locals have benefited from the economic growth and transformation efforts. Again, comparing the past three years from 2015 to 2017 with the previous three years from 2012 to 2014, even though growth of foreign employment has turned negative, local employment growth has rebounded to 21,000 last year. Quality of local employment has improved, too. PMET share of the local workforce went up faster in the past three years than the previous three years.”
“Mr Chairman, with your permission, I have asked the Clerk to place the MOM COS-in-brief on the seats of the Members at the start of the Sitting. Mr Chairman, may I also seek your permission to display some slides on the LED screen?”
“The national Jobs Bank has been designed to reduce the likelihood of having job postings that are inaccurate or advertise for positions that do not exist. Employers have to be Singapore-registered companies and provide their Unique Entity Number (UEN) to post jobs on Jobs Bank for accountability. Similarly, jobseekers apply for jobs only after logging in via SingPass. This creates an environment where jobseekers and employers can search for matches confidently. Jobs Bank users may also, at the click of a button, report to Workforce Singapore (WSG) regarding Jobs Bank advertisements which contain false information. Upon receiving such cases, WSG will work with the relevant agencies to investigate and, where necessary, take action against the company responsible for the job advertisement. Jobseekers who choose to use other Internet-based job portals are advised to select reputable sites where job advertisements are more likely to be authentic and accurately described. While MOM does not license Internet-based job portals, the advertising of fake jobs with criminal intent, such as cheating, may be subject to penalties under the Penal Code.”
“Between April and December 2017, the Tripartite Alliance for Dispute Management (TADM) and the Employment Claims Tribunal (ECT) concluded 3,750 employee salary claims where the employer was ordered to make payment to the worker. Salaries were fully recovered in about 92% of these orders. The remaining claims involved 139 employers. A hundred and thirty-three of these employers ceased operations or faced business failure due to financial difficulties. TADM works with U Care Centre (UCC) of the National Trades Union Congress or the Migrant Workers’ Centre (MWC) to provide financial relief to lower-income workers who are unable to recover their salaries. Of the remaining six employers, one has appealed to the High Court. For the remaining five employers who did not pay even though they were not in financial difficulty, MOM will be prosecuting them under the Employment Act. At the same time, TADM is working with UCC and MWC to enforce the order against these five employers.”
“The Employment Act (EA) stipulates certain core provisions and working conditions for employees. We regularly review the EA to keep pace with the changing labour force profile and employment landscape. Domestic workers, including foreign domestic workers (FDWs), are not covered by the EA. This is because, given the personalised nature of domestic work, it is not practical to regulate certain aspects of their work, such as hours of work and work on public holidays, as we do in the EA. This has not changed. The vast majority of domestic workers in Singapore are live-in FDWs whose rights and well-being are protected under the Employment of Foreign Manpower Act (EFMA). In recognition that FDWs can be vulnerable, as most of them work alone and they live-in with their employers, the EFMA stipulates relevant provisions as found in the EA, such as prompt payment of salary and rest days, as well as enhanced protections, including requirements for employers to provide food and proper accommodation with adequate space and privacy. Domestic workers who encounter issues with their employers should approach MOM for advice and assistance as soon as possible.”
“From 2015 to 2017, 21 employers11 were found collecting kickbacks to hire Work Permit Holders (WPHs) who had changed employers. The Ministry of Manpower takes a serious view of employers who collect kickbacks from WPHs. Employers found to do so are liable for a fine up to $30,000, or to imprisonment for a term not exceeding two years, or to both. Since 2005, WPHs from the construction sector have been allowed to change employers if their current employers agree. In 2015, construction WPHs were also allowed to change employers near their work pass expiry if they are unable to come to a mutual agreement on the renewal of their Work Permits. These flexibilities were extended to the Process sector in 2017. WPHs who wish to change employers are able to seek new employment on their own or engage the services of employment agencies. The Singapore Contractors Association Limited has also put in place a Foreign Construction Workers Directory System to facilitate the matching of employers and existing construction workers. In addition, the Migrant Workers' Centre will assist WPHs with valid salary claims who seek employment. As of December 2017, approximately 131,000 WPHs have changed employers near their work pass expiry or upon employers' consent.”
“The number of employed residents aged 62 and over, and 67 and over has increased over the last five years (see Table 1 below). Of all employed residents aged 67 and over in 2017, 64% were males; 80% held secondary and below qualifications, 9% had post-secondary qualifications, while 11% were tertiary-educated; 52% of this group of older workers were employed as production and transport operators, cleaners and labourers, 26% were clerical, sales and service workers, and 22% professionals, managers, executives and technicians. This is broadly in line with their educational profile.”
“There were 186, 211 and 202 workplace health-related claims awarded under the Work Injury Compensation (WIC) Act in 2015, 2016 and 2017 respectively. They made up less than 1.5% of total WIC claims annually. For the last three years, the workplace health-related claims amounted to a total of $24.3 million, which is about 7.4% of the total WIC payout. While the number of workplace health-related claims remains small, the Ministry of Manpower and the tripartite partners are working together to better address work-related ill-health as part of our Total Workplace Safety and Health Plan.”
“Under the Adapt and Grow initiative, the Professional Conversion Programmes (PCPs) and Place-and-Train (PnT) programmes help professionals, managers, executives and technicians (PMETs) and rank and file (RnF) workers address job-skills mismatches respectively. PCPs provide training and salary support to help mid-career PMETs reskill, so that they can move into new and different occupations or sectors that have good prospects and opportunities for progression. Over the past one year, more than 3,300 local PMETs were placed. Among those placed, about 10% were previously retrenched or unemployed for six months or more, that is, long-term unemployed (LTU). Similarly, PnT programmes provide training and salary support to help RnF workers reskill to take on new jobs in different sectors. Last year, more than 1,800 locals were placed through these programmes. Among those placed, about 5% were previously retrenched or LTU. As both PCPs and PnT programmes are structured such that every jobseeker is hired by an employer before undergoing training, every worker on these programmes would have successfully secured a job. Applicants who are unable to secure employment and hence do not get into these programmes, are being assisted through other programmes. For example, the Career Support Programme (CSP) provides salary support to encourage employers to hire mid-career PMETs who have been retrenched or are LTU. Since its inception in October 2015, over 1,100 PMETs have been supported through CSP, with more than 80% being LTU or retrenched at the point of placement.”
“The proportion of full-time resident employees earning below $2,000 who received bonuses, including the Annual Wage Supplement, has remained stable at about 50% over the last decade. Employers and unions share the flexibility in structuring staff remuneration together under our Flexible and Performance Based wage systems. Broadly speaking, rank and file employees have more of their annual package allocated to fixed monthly salaries while monthly or annual variable payments tend to comprise a bigger share for those in more senior positions. The Ministry of Manpower, therefore, looks at total annual wages when monitoring wage increases. Over the past five years, total wages, including annual and monthly variable components, at the 20th percentile have risen by 4.1% per annum, comparable to the growth at the median.”
“The Workplace Safety and Health Act (WSHA) generally adopts a non-prescriptive approach. In most circumstances, we do not spell out specific safety measures but allow companies the flexibility to adopt suitable methods according to their business needs to ensure safe workplaces. For hazardous sectors and high-risk activities, the Ministry of Manpower (MOM) does stipulate prescriptive WSH measures for the relevant industries. This is to ensure that companies operating in dangerous environments adopt proper WSH measures as any incident can have serious consequences on their workers. In formulating such measures, we do not set cost thresholds, but consult with industry and trade associations to arrive at measures that are of reasonable cost and practical to implement. We are cognisant of the cost implications to businesses when requiring them to provide a safe and healthy workplace. In this regard, the WSH Council has developed a wide range of WSH programmes and resources to assist companies. While cost of implementing WSH measures is unavoidable, companies need to recognise that any workplace accident can result in greater business losses and immeasurable human suffering to the victims and their families. Hence, WSH measures should be seen as investments rather than costs. Companies have the moral and legal responsibilities to ensure the safety and health of their workers. MOM and WSH Council will continue to work with the tripartite partners and industry stakeholders to help our companies improve their workplace safety and health standards in reasonably practicable ways.”