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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“All these are defined under the CPF Act and I would like to confirm that he is right that terminal illness, by and large, refers to a remaining lifespan of less than one year. In the case of total permanent disability, it refers to a loss of two eyes, two limbs or one eye and one limb. Mr Dennis Tan also asked for section 39 regarding premium with interest. This refers to cases where the policyholder did not declare their serious pre-existing illnesses. So, at the time of claim, when it was discovered that the claim was not supportable, we will refund the remaining premium together with interest. Ms Jessica Tan touched on a few important points. First, regarding PEA. I share her concern that each time, when PEA is adjusted, it will affect the retirement planning of those CPF members who are affected. And this is the reason why we take the review of PEA very seriously. The last time we made a revision to PEA was in 2007, when we raised PEA from the age of 62 to 65. We phased in this increase of 62 to 65 over 10 years. It was announced in 2007 that the final adjustment of going up from age 64 to 65 will only take place in 2018, which is about two years from now. I agree with Ms Jessica Tan that this is a very major decision and should we decide to amend PEA, we should do so by giving policyholders and CPF members enough advance notice. Let me say this, right now that we are on schedule to raise PEA to age 65 by 2018. At the same time, I want to highlight to this House that since January this year, CPF members have the option of deferring the start of their CPF payouts from PEA up to the age of 70.”
“So, these are examples whereby the Board has exercised its judgement, knowing that if this is really beyond the control of the policyholder, in fact, we will find a way to pay them rather than to reject the claims. Mr Pritam Singh asked what kinds of serious illnesses would we exclude an application due to pre-existing illnesses. For example, for a home owner who suffers from cancer, kidney failure or heart disorder and so on, the Board does look at the severity of the illness because if it is too severe and will lead clearly towards terminal illnesses, then I think we would have no choice but to reject such applications. Because at the end of the day, we would have to strike a balance between taking care of as many home owners as we can and yet, at the same time, be fair to the other home owners, bearing in mind that this is a risk-pooling programme. Page: 96 Mr Pritam Singh also asked whether we can step up our efforts to send early reminders. The answer is yes. In fact, today, not only would we remind every new home owner when they collect the keys from the HDB of the importance of HPS, we also make sure that for any case of a lapsed payment, we would follow up with a repeated reminder. Obviously, more can be done; and we will keep doing more. Mr Dennis Tan asked whether we can expand HPS to private housing. Mr Deputy Speaker, HPS' primary focus would be on HDB housing to cover the vast majority of home owners and the mass market. For owners of private properties, our advice to them is to take care of themselves by purchasing mortgage-reducing insurance in the private market. Mr Tan asked whether we can be more specific with the definition of terminal illnesses and total permanent disability.”
“Mr Deputy Speaker, Sir, I thank Members Jessica Tan, Dennis Tan and Pritam Singh for speaking in support of the amendment. First, on the issue of the HPS, I share the sentiments of the Members that it is very important that we do whatever we can to help to minimise the risk of losing a home when the home owner passes away. At the end of the day, it is very hard to keep a family together without a place to stay in. So, in that regard, we are very concerned that on the average every year, we see about 4,000 to 5,000 policyholders dropping out of HPS due to various reasons. On the part of the Ministry of Manpower (MOM) and CPF, we are doing what we can to minimise or reduce these cases of lapses. The amendment today, we believe, will help maybe 1,000 to 2,000 CPF members to overcome the inability of the home owner to pay the premium. Having said so, we also continue to step up our efforts to remind and educate the homeowners of the importance of HPS. Mr Pritam Singh asked about cases where we paid the HPS claims even though we are not liable to do so. Here, I would like to give an illustration. A policyholder fell sick; seriously ill and was hospitalised at the time when the premium payment was due. As a result, he was not able to take action, knowingly or unknowingly, to pay for the premium and, subsequently, he either passed away or suffered permanent disability. So, under such circumstances, CPF could have taken the position that since the policyholder did not pay for the premium, as a result, the policy has lapsed. But we think that will be a wrong thing to do because the fact that the policyholder was not able to pay the premium was beyond his control. He was hospitalised at the time of the renewal.”
“Madam, in conclusion, taken in total, the amendments in this Bill will enable CPF Board to implement policies aimed at providing greater flexibility while enhancing CPF members' retirement adequacy and also enhance insurance coverage and improve the accountability of MediSave usage for CPF members. Mdm Speaker, I beg to move. [(proc text) Question proposed. (proc text)]”
“To strengthen the safeguards over MediSave claims, this amendment will allow CPF Board to impose administrative penalties on medical institutions and approved insurers that make wrong or unauthorised claims on members' MediSave monies or do not comply with audits ordered by CPF Board or other administrative requirements. These amendments will make medical institutions and approved insurers more accountable when they make claims of MediSave monies. The amended CPF Act will also mandate the recovery of any MediSave monies arising from unauthorised or wrongful deductions or uncompleted prepaid treatment packages. Madam, the fourth and last set of amendments pertains to other amendments that provide greater clarity in the administration of the CPF system. I will provide two examples. The first example is to revise the method of estimating the additional wages that attract CPF contributions. Today, employers are required to make an estimation based on the previous year's income. We are amending the CPF Act to allow employers to also make an estimation based on the projected wages in the current year. This amendment will improve efficiency as employers can estimate CPF liabilities more accurately, reducing the chances of employers overpaying CPF contributions. This will minimise the need for employers to apply for refunds for overpayments. The second example is to allow CPF members to apply to withdraw cash payouts that were credited to their accounts under various Government schemes, such as the GST Voucher. This happens when the cheques were not cashed and subsequently expired. As these payouts are meant to support members' daily needs, this amendment will allow members to withdraw these credited monies without being subject to existing CPF withdrawal rules.”
“This change will benefit new and existing persons insured under HPS and DPS, subject to the exclusions in their individual insurance covers arising from pre-existing conditions. I hope that this broader protection from our CPF insurance schemes will provide CPF members with greater peace of mind. Today, insured members who have run out of Ordinary Account (OA) savings can only use their spouses' OA savings to pay for their HPS premiums if the spouse is a co-owner. We are now amending the CPF Act to allow such insured members to also use the OA savings of other co-owners, including children, parents or siblings, to help pay for their HPS premiums. By allowing greater household support for the payment of HPS premiums, we can reduce the risk of lapsed insurance covers due to non-payment of HPS premiums. More CPF members and their families will, therefore, be protected from losing their homes in the unfortunate event of death, permanent incapacity, terminal illness or total permanent disability. Madam, the third set of amendments pertains to strengthening safeguards for MediSave monies claimed by medical institutions and approved insurers. Today, medical institutions and approved insurers help to facilitate the withdrawals from CPF member's MediSave accounts for approved treatments and uses under the MediSave Scheme. In 2015, about $2.7 billion of MediSave savings was withdrawn. Most medical institutions and approved insurers have made proper claims of MediSave monies and complied with our audit requirements. However, a small number of medical institutions and approved insurers still make errors in some of their claims. For example, in the past three years, we saw an average of about 40 cases a year of claims from wrong members' Page: 89 accounts.”
“Both husband and wife can then have their own CPF LIFE plans and more secure retirement income for life. When one spouse passes away, the surviving spouse will still be assured of lifelong payouts. As a family unit, both husband and wife can also maximise the extra interest earned on their combined CPF savings. Page: 88 I encourage members to make full use of this flexibility to enhance their spouses' retirement adequacy. We are also amending the CPF Act to state clearly that members will not be assessed for inclusion into the CPF LIFE scheme at age 55. This is because members now need to choose their CPF LIFE plan only when they reach their Payout Eligibility Age (PEA). Hence, the previous requirement to select their CPF LIFE plan at age 55, which could be about 10 years before the start of payouts, is no longer necessary. Going forward, members will therefore need to be assessed for auto-inclusion into CPF LIFE only at their PEA. The second set of amendments relates to enhancing the insurance coverage under the CPF insurance schemes. These are the Home Protection Scheme (HPS) and the Dependants' Protection Scheme (DPS). Today, members can only make a claim from HPS and DPS in the event of death or incapacity. By incapacity, it means that a member must not be able to ever continue in any form of employment. Currently, members with terminal illnesses or total permanent disability but can still do some form of work, do not fall within this definition of incapacity and, hence, do not qualify to make claims under HPS and DPS. We are amending the CPF Act to expand the definition of incapacity to include members with terminal illness and total permanent disability who may still be working or able to do some form of work, but in a diminished capacity.”
“Madam, I beg to move, "That the Bill be now read a Second Time." This Bill will amend the Central Provident Fund (CPF) Act in four broad areas: first, to implement previously announced policy changes related to Part 1 of the CPF Advisory Panel's recommendations; second, enhance the insurance coverage under the Home Protection Scheme (HPS) and Dependants' Protection Scheme (DPS); third, safeguard the MediSave monies claimed by medical institutions and approved insurers; and fourth, make various amendments to clarify and streamline the administration of the CPF system. Let me explain. Madam, the first set of amendments pertains to Part 1 of the CPF Advisory Panel's recommendations. The Government has implemented the Panel's recommendations since January 2016 based on the provisions within the current CPF Act. We are now amending the CPF Act to enable CPF Board to implement these changes more directly. Let me recap some new flexibilities that CPF members can now enjoy. We are amending the CPF Act to make it directly explicit that CPF members aged 55 and above can transfer savings from their CPF accounts, including their Retirement Account (RA), to their spouses if they have set aside the Basic Retirement Sum (BRS). Previously, members, including those below age 55, would have to set aside the Full Retirement Sum (FRS), which is twice the BRS, before they could make transfers to their spouses' accounts. We agreed with the CPF Advisory Panel to reduce the requirement from FRS to BRS so that more CPF members can make top-ups to their spouses' CPF savings. This flexibility will be useful for spouses who may not have enough CPF savings to join CPF LIFE for reasons, such as leaving the workforce earlier to take care of their children.”
“The Career Support Programme (CSP) was launched as a pilot programme on 1 October 2015 to provide Singaporeans aged 40 and over, who have been looking for jobs for at least six months, greater opportunities to access mid-level and above jobs. Under the CSP, wage support is provided to support employers who hire such individuals in any job that pays a gross salary of at least $4,000 a month. Jobs that have been supported by CSP so far include jobs in functions, such as Business Development, Project Management, Sales and Marketing, Finance, Operations, and Information Technology. Workforce Development Agency (WDA) will be monitoring the employment status of the individuals who have been placed through CSP.”
“Since the NWC quantitative guidelines were introduced in 2012, the proportion of full-time employed resident employees earning basic monthly salary of up to $1,000 is estimated to have decreased from 9.8% in 2012 to 6.8% in 2014. The Ministry's Survey on Annual Wage Changes showed that, nearly six in 10 (59%) private establishments with employees earning a basic monthly salary of up to $1,000, had given or decided to give wage increases to these employees in 2014. This included three in 10 (31%) which gave the NWC's recommended built-in wage increase of at least $60 to this group of workers. Data for 2015 is not yet available. The NWC Guidelines are arrived at through tripartite consultation and consensus, which recommend that businesses take into account economic conditions, business performance and employees’ contribution in determining wage increases. Such consensus-building helps facilitate the acceptance and implementation of guidelines. While NWC Guidelines are not mandatory, they are widely referred to by companies in both the unionised and non-unionised sectors. They are also gazetted under the Employment Act and form the basis for wage negotiations between unions and management.”
“The unemployment rates of residents in Professional, Managerial, Executive and Technical (PMET) occupations by age and gender, from 2011 – 2015, are provided in Table 1.”
“A breakdown of Professionals, Managers, Executives and Technicians (PMETs) from 2013 to 2015 by residential status and sectors is provided in Table 1.”
“The Government works closely with the tripartite partners through the Tripartite Committee (TriCom) on Work-Life Strategy to obtain feedback and promote the adoption of flexible work arrangements (FWAs). TriCom is supported by the Tripartite Alliance for Fair and Progressive Employment Practices (TAFEP) which promotes FWAs and helps employers implement FWAs. The proportion of employers providing at least one form of FWA has steadily increased from 28% in 2008 to 47% in 20141. Based on the findings of a Work-Life Integration Survey2 released in 2014, 65% of working mothers with young children agreed that they had the flexibility to integrate the needs of their work with their personal and family life. With the greater availability of FWAs, the resident labour force participation rate for women increased from 54.3% in 2006 to 60.4% in 2015. The Tripartite Advisory on Flexible Work Arrangements, which was launched in November 2014 by TriCom, encourages various FWAs to be considered to meet the needs of both employers and employees. Besides reducing time spent at work and workload, other flexibilities in work arrangements can be applied to work timing, for example, staggered hours and compressed work week; and work location, for example, telecommuting. The varying needs of both employers and employees should be considered in order to implement FWAs sustainably.”
“Redundancy data collected from the Ministry of Manpower's (MOM) Labour Market Survey include employees terminated with notice. The data includes all retrenchment exercises regardless of whether they were announced publicly by employers.”
“We will work with tripartite partners to promote progressive HR practices, invest in human capital and create workplaces where workers in all jobs are respected and valued. We want Singaporeans to have greater peace of mind in retirement. We will continue to enhance the flexibility and adequacy of the CPF system while ensuring its long-term sustainability. We have accepted several recommendations from the CPF Advisory Panel which aimed to improve the CPF system. The Panel comprised experts and community leaders and took into consideration feedback from citizens. We will work towards the smooth implementation of these recommendations. For elderly Singaporeans who have lesser means in their retirement years, we will implement the Silver Support Scheme to provide quarterly cash supplements. We can only achieve and sustain better jobs, higher incomes and financial security for all if employers, unions, workers, Government agencies and the community at large work in unity. Together, we can instil pride and confidence in co-creating our desired future of a better workforce and progressive workplaces for Singaporeans and Singapore. Page: 45”
“As the economy restructures, we will help Singaporeans, especially those in mid-careers, to adapt and remain employable. We will enhance our employment support to prepare our workers and minimise potential job-skill mismatch. We will work to ensure that Singaporean workers are fairly considered by employers when hiring and have fair opportunities for leadership development and growth at all levels. Quality growth should lead to better jobs and higher incomes for all. We will seek to achieve this through the three Ps – Protection, Progression and Pride. Protection. We have enhanced the Employment Act to protect more workers and extended the Industrial Relations Act to cover more Professionals, Managers and Executives (PMEs). We will raise the re-employment age from 65 to 67 by 2017. We will also expand our suite of dispute management services for workers and employers. We will step up efforts with our tripartite partners to enhance Workplace Safety and Health. We will strive for a culture of prevention to safeguard the well-being of our workers in safer workplaces. We will also enhance protection of injured workers to facilitate their return to work. Progression. The tripartite partners are developing Sectoral Manpower Plans to help create diverse career pathways for Singaporeans to fulfil their aspirations, while meeting the manpower needs of industry. We will pay special attention and care to the older and lower-wage workers, by Page: 44 helping them achieve higher wages through better skills and improved productivity. Pride. We want all workers to take pride in their work and all employers to value their workers.”
“MOM seeks to help Singaporeans take on good jobs, build fulfilling careers, enjoy sustained increases in real incomes and have a more secure retirement. In doing so, we support the goal of building a nation of opportunity and a society that cares for its people. Singapore is at a turning point. We have a more educated generation with diverse aspirations and needs. We have an ageing population with Baby Boomers retiring in increasing numbers over the next decade. We face a volatile global economy, keener competition and faster technological change. To sustain a nation of opportunities, we need to transit from a manpower-led to a manpower-lean economy. Even as we reap the benefits of growth, we must be inclusive in our approach so as to build a society that cares. MOM will work closely with the other Government agencies and our tripartite partners to strengthen the Singaporean Core in the workforce and ensure Singaporeans of all ages have fair opportunities for leadership development and growth. To strengthen the Singaporean Core in the workforce, we need to speed up our economic restructuring efforts and create more higher quality jobs to which Singaporeans aspire. Companies need to embrace productivity and innovation and reduce reliance on low-skilled foreign manpower. MOM will help companies become more manpower-lean and strengthen their Singaporean Core in all major sectors of the economy. We will support employers to redesign jobs, processes and workplaces to fully tap on the experience and contributions of all workers, especially our mature workers. To maximise their full potential, we will enable Singaporeans of all ages to pursue good jobs and build fulfilling careers.”
“Between FY2012 and FY2014, about 40 trade fairs were organised each year by the Citizens’ Consultative Committees (CCCs). Ranging from 16 to 32 days in duration, about two-thirds Page: 95 of these fairs received revenues of between $10,000 and $100,000 each and another one-third between $100,000 and $350,000. The exception was the Geylang Serai Trade Fair held during the Ramadan period, which attracted between $900,000 and $1.3 million a year. The CCCs raise funds through trade fairs to provide welfare assistance, scholarships and bursaries to help the less fortunate among us. The funds raised also go towards programmes to promote neighbourliness and community ties, as well as initiatives that enhance the well-being of residents, such as healthcare programmes. Some CCCs also contribute to the building of community facilities. For example, Geylang Serai CCC is helping to raise funds for the new Geylang Serai Community Club at the Wisma Geylang Serai Civic Centre. The use of funds raised for these purposes is subject to good governance. They must comply with the People's Association's financial rules. Page: 96”
“Mdm Speaker, the Ministry has no plans yet to specially incentivise companies with Singaporeans making up more than 85% of their workforce, as suggested by the Member. To sustain the growth of our economy and create better jobs and careers for our people, we encourage and support the commitment of all companies in all sectors to nurture a strong Singaporean Core in their workforce. We believe it is in the interest of firms to enhance their attractiveness and build a strong pipeline for quality jobs so that they can have access to a sustainable pool of manpower and talent. Hence, through SkillsFuture, the Government is investing significantly in terms of effort and resources in our people and to help businesses in all sectors of the economy to strengthen their Singaporean Core regardless of their current workforce composition.”
“Mdm Speaker, if I were to follow the Member's logic, we should actually not require any working person to contribute to his SA until after he has finished his housing loan. Because, right now, for any working person, his CPF contribution goes into the three accounts: MA, SA and OA. So, since the Member said that housing should take precedence over retirement, then logically speaking, we should amend our law so that all working people should have their CPF contributions go into MA and OA only. Only after they have finished their housing loan, then they start to save for their SA. I do not think that is wise.”
“Thank you, Mdm Speaker. The question raised by the Member actually concerns the Ministry of Manpower (MOM), so I thought I should stand up to clarify our position. Any person who is working, basically, we want them to save for their medical, housing and retirement needs. In the case of the self-employed, right now, they are required to save for their medical. However, they do not save for their OA, they do not save for their retirement. Therefore, whenever there is any overflow, we channel that overflow to their SA, which would then be set aside for their retirement. In other words, for those who are self-employed, we feel that they are already not saving enough for their retirement and, therefore, if there is any overflow, SA should take precedence over OA. I hope that explains our position. Er Dr Lee Bee Wah: I agree with the Minister that saving for retirement is important but for this case, he has not even managed to buy a house. For those who have not managed to buy a house, perhaps let them buy a house first, rather than save for retirement. Page: 19”
“To facilitate the conduct of a secret ballot for union recognition under the Industrial Relations Act, the employer is required to provide to the Commissioner for Labour relevant information of the employees who are eligible to vote. This information is then verified by the union in the presence of the employer and the Commissioner. We recognise the importance of allowing the unions to verify the information and we will Page: 148 continue to do so.”
“The local funeral industry employs fewer than 1,000 employees, which is less than 0.1% of the total workforce. Employment for the sector has grown steadily at about 6% per annum in recent years. Despite the small employment numbers, the industry provides essential services for our society. While we face an ageing population, life expectancies have also increased. We expect to have a sufficient pipeline of manpower to meet the demand for funeral services given the current employment growth rates. The funeral services industry is one where employers have provided on-the-job training. We encourage the industry to step up, and take the initiative to work with their employees to identify and develop the skillsets that are needed. The Government will provide the necessary support and would be happy to work with the industry association to help support their training efforts.”
“The Employment Act stipulates basic terms and conditions of employment and the rights and responsibilities of employers and employees. We encourage companies to explore using tools, such as 360-degree feedback, to enhance their in-house human resource (HR) capabilities. However, we have no plans to mandate the use of any particular tool nor to require making their results public. It is for companies to choose the HR tools most relevant to their needs and circumstances, not the Government. Moreover, confidentiality of the results of such tests and surveys is often key to soliciting candid feedback. Posting the results in the Jobs Bank runs counter to this. Page: 144”
“SEC was further enhanced at Budget 2015 to provide employers with an additional three-percentage point of wage subsidy for hiring Singaporean workers aged 65 and above, that is, up to a total of 11.5% of wages. Second, there are measures in place to help older professionals, managers and executives (PMEs) reskill and secure new employment. We currently support employers who hire mature PMEs in the Professional Conversion Programmes (PCP) by funding 90% of their monthly salary, subject to a cap of $4,000, during the period of training. The P-Max programme also supports the entry of PMEs into suitable jobs in our small and medium-sized enterprises. In addition, we have recently announced the Career Support Programme (CSP) to provide mature Singaporean PMEs, who have been looking for jobs for at least six months, greater opportunities to access mid-level and above jobs. Starting from 1 October 2015, employers who employ mature PMEs, who have been looking for jobs for at least six months, in mid-level jobs that pay at least $4,000, will be given wage support. The Singapore Workforce Development Agency (WDA) will also collaborate with and provide incentives to private search and placement firms to help this group of older PMEs access more job opportunities. We encourage employers to take full advantage of these schemes.”
“Under the Retirement and Re-employment Act, it is already an offence to dismiss an employee who is below the age of 62 years on the grounds of age. Employers are obliged to offer re-employment to their employees who are turning 62 up till age 65. If employers are not able to offer re-employment, they are required to make an Employment Assistance Payment to the workers, based on the quantum recommended by the Tripartite Guidelines on the Re-employment of Older Employees. In the year ending June 2014, nearly all or 99% of employees who turned 62 were offered re-employment. We are also looking to raise the re-employment age to 67 in the next two to three years. Having said this, more needs to be done to change the mindset of employers against ageism. This requires determined and sustained efforts by companies, co-workers and the community. The tripartite Partners, through the Tripartite Alliance for Fair and Progressive Employment Practices (TAFEP), will continue in our efforts to help employers build capabilities and reinforce positive perceptions of older workers. The "Tap into a Wealth of Experience" campaign launched by the Tripartite Committee on Employability of Older Workers in June 2014 has resulted in some positive mindset changes amongst employers and older employees. Page: 142 The Government also adopts a two-pronged approach to support older workers. First, the Special Employment Credit, or SEC, provides subsidies to employers to hire older workers. Today, employers receive an SEC of up to 8.5% of the wages of every Singaporean employee aged above 50 earning up to $4,000 per month.”
“The Progressive Wage Model (PWM) for landscape workers was announced by the Tripartite Cluster for the Landscape Industry (TCL) in April this year and will be incorporated as a requirement in the Landscape Company Register (LCR) administered by the National Parks Board. From June 2016, LCR-registered companies will be required to pay their resident landscape maintenance workers according to PWM. While the deadline for implementation of PWM is one year away, progressive companies can move ahead to start adopting PWM. Funding schemes are available to help incentivise early adoption of PWM and defray the initial costs of doing so. For example, the Progressive Wage Incentive administered by the Employment and Employability Institute provides grants of up to $150,000 for service buyers that best source from early adopters of PWM.”
“Funding schemes are also available to help defray the initial costs that service buyers face when tendering for new contracts or renewing their existing contracts under PWM. For example, the Progressive Wage Incentive administered by the Employment and Employability Institute (e2i) provides grants of up to $150,000 for service buyers that best source from early adopters of PWM. STC meets regularly to get updates from member agencies involved in the implementation of PWM and to consider the need for further measures to promote awareness and facilitate compliance with the PWM requirements. The Ministry of Manpower will work closely with the Ministry of Home Affairs and our tripartite partners on STC to ensure that the security sector is ready to implement PWM by September 2016.”
“Second, an Assessment Only Pathway (AOP) process will be provided to allow more experienced security officers who are proficient and familiar with the security operations to be certified, without having to go through training. Preparatory AOP sessions will be made available to familiarise AOP candidates with the certification process. Third, WDA is working with its appointed security industry training providers, such as the Security Industry Institute (SII) under Temasek Polytechnic, to implement an integrated curriculum that incorporates technology and workplace learning, to improve training outcomes. Fourth, to help security agencies overcome operational constraints in sending their employees for training, flexible training arrangements, such as weekend classes, accessible on-site training and bite-sized training, have been put in place. Service buyers can also complement these efforts by encouraging flexible work arrangements that enable security officers to attend training and assessments. STC also intends to showcase security agencies and security officers who have met their PWM training requirements during the upcoming Security Industry Conference next month. We want to commend these early adopters and encourage the rest of the industry to begin working towards full PWM compliance. Ms Ng has asked if efforts are being made to reach out to service buyers so that they will support the anticipated cost increases associated with PWM. STC is doing so. Aside from briefings to security agencies, STC members have also been reaching out to service buyers to explain the implications of PWM and the benefits to them arising from a better quality Page: 139 workforce and improved service standards.”
“The Security Tripartite Cluster (STC) announced its recommendations on the Progressive Wage Model (PWM) for the security industry in October 2014. The PWM wage and training requirements will be incorporated in the existing licensing framework for security agencies administered by the Police Licensing and Regulatory Department (PLRD). From 1 September 2016, security agencies which do not comply with the PWM requirements will not have their licences renewed. Since the announcement of PWM, members of STC, including PLRD, the security industry associations, U Care Centre and the Union of Security Employees, have been actively engaging security agencies and service buyers to brief them on PWM. In these briefings, Page: 138 security agencies have been advised to enrol their employees for training and to comply with the PWM requirements early, ahead of the 2016 deadline. All current security officers will be able to remain in the industry and retain their rank of Security Officer under PWM. They will not be compelled to transition to other industries. For those keen to progress through the ranks to take on greater job functions and responsibilities, they need to attend specific Workforce Skills Qualification (WSQ) training courses to gain the necessary skills. The Singapore Workforce Development Agency (WDA) has been working closely with training providers and STC members to implement several measures to help the industry meet the training requirements. First, training capacity has been increased to accommodate up to 2,800 training places per month. The current monthly average take-up for PWM modules across all levels is about 200 training places.”
“Our unemployment rate remains low and employment rate high. Our local workforce growth is expected to slow down going forward. My Ministry, therefore, welcomes the Member's suggestion to match unemployed citizens to available jobs in the growth sectors. These efforts would also benefit Singaporeans who are entering the workforce and those currently employed but are seeking better job opportunities and career prospects in growth sectors. Through its career centres, the Workforce Development Agency and the Employment and Employability Institute (e2i) provide a suite of career services and employment facilitation efforts to match jobseekers to employment opportunities in various sectors, in particular the growth sectors. For the longer term, the Sectoral Tripartite Committees are formulating manpower plans for their respective sectors. This will identify the jobs and careers of the future and the measures to equip Singaporeans, both employed and unemployed, with the necessary skills to take on these opportunities. Page: 136”
“These firms will be encouraged and guided to avenues and assistance available to help them strengthen their Singaporean Core, including help to train and equip Singaporeans with the skills and expertise to progress in their careers. Firms which are unresponsive or uncooperative can expect to have their work pass privileges curtailed. To reiterate, FCF is part of a broader effort to improve employment outcomes of Singaporean PMEs, which have remained healthy. Singaporean PME unemployment remains low at 2.7% in 2014, and their real median wages grew at 3.8% per annum in the last five years. We are committed to further strengthening employment support for our Singaporean professionals, managers and executives (PMEs), and strive for a stronger Singaporean Core in every major sector of the economy.”
“Under the Fair Consideration Framework (FCF) introduced on 1 August 2014, employers are required to advertise their job vacancies on the Jobs Bank for at least 14 days before they can submit applications for Employment Passes (EPs). Based on a weekly average, there are about 68,000 job vacancies posted on the Jobs Bank since it was launched in July 2014. Seventy-four percent of these job vacancies, or about 50,000 jobs, are at the level of professionals, managers, executives, technicians (PMETs) and associate professionals. On average, 800 EP applications were received per week following their job advertisement, out of which, about one-third were submitted within one week of the end of the 14-day mandatory advertising period. As mentioned in the July sitting of this House, the Ministry of Manpower (MOM) has taken action to scrutinise more closely applications for EPs from these firms which are "double-weak" – weak in Singaporean Core and weak in commitment to fair consideration for Singaporeans – such as firms which repeatedly submit EP applications soon after the end of the minimum 14-day advertising period. As updated by my Ministry last week, we have engaged 150 firms over the past year and placed 38 of them on MOM's watchlist. About 100 more firms have also been identified for further assessment. They are the outliers in their respective industries, such as administration and support, construction, infocomm, finance and insurance, professional Page: 135 services, transportation and storage and wholesale trade. Firms placed on the watchlist are subject to closer monitoring and scrutiny.”
“On top of that, we also have access to advisers and resource persons from the Ministry of Finance. In conclusion, I want to assure this House that notwithstanding these procedural lapses, no doubt, we have made mistakes and we have openly admitted and accepted the responsibility many times, including today, twice in this House. There is no question about that. However, I think it is important also to point out that the financial statements and accounting systems of PA and GROs are accurate and reliable. The house is not on fire. The house is not at risk of collapsing. We have learnt from the findings of AGO and will improve to do better. Question put, and agreed to. Resolved, "That Parliament do now adjourn." Adjourned accordingly at 7.14 pm. Page: 124”
“Hence, contrary to the misperception of the Member, I want to state it clearly that the financial statements and accounting systems of PA and the GROs are in order, as certified by the external auditor for FY2013 and FY2014, since we have completed the consolidation of GROs' accounts into the PA financial statement. This means that public funds are properly spent and accounted for. Even though many of these incidents arose out of good intentions of the GROs in serving the community, they are, nevertheless, in non-compliance with financial rules. So, the findings of the AGO audit point to two key areas of weaknesses: first, the GROs might not be familiar with the financial regulations; and secondly, there is weak supervision of the GROs in complying with financial regulations. These are areas of weakness which we have taken immediate steps to improve. In fact, we have also set up a Grassroots Financial Review Committee led by individuals with good standing in the financial and accounting community. The Member asked whether this review committee would be impartial in its review. Madam, let me highlight the key profiles of these three members. The review committee is chaired by Mr Timothy de Souza. He is a trustee of the Eurasian Association of Singapore. The two key members are Mr John Teo Woon Keng. He is, by profession, a chief financial Page: 123 officer, at the same time, a member of the Auditing and Assurance Standards Committee of the Institute of Singapore Chartered Accountants. Lastly, Mr Chiang Heng Liang is a director of wealth management in an international bank. So, in other words, these three persons, they do have the standing in the community and the expertise to guide us in this review.”
“Page: 122 Mdm Speaker, I want to assert this point that far from compromising on the interest of the residents, as the Member has asserted, the GROs that committed these lapses were actually doing their best to serve the interest of the residents and meet the urgent needs of the community. We can fault them for their non-compliance with financial procedures, but please do not doubt them in their passion and commitment in always doing the best for the community. The second point that I wish to clarify with the Member is that for PA and GROs, their accounts are subjected to annual audits, to internal audits every year. It has been so and will continue to be the case. What happened was that there was a change in the Statutory Board – Financial Reporting Standards. With that revision, PA was required to include the GROs' accounts into our financial statements. So, please bear in mind that there was a change in the Statutory Board – Financial Reporting Standards. We have 1,800 GROs' accounts. It is a big number. So, PA took four years, account by account, to consolidate these 1,800 GROs' accounts into the PA's financial statements. The consolidation was completed by FY2013. And, for that year, the first year of consolidation, our financial statement received clean audit opinions for that year, 2013, the first year of our consolidated account. And, likewise, FY2014. In other words, the moment the accounts were consolidated, 1,800 of them, in fact, PA, together with the GROs' financial statements, were certified by external auditors to be of clean audit opinions, meaning that the financial statements were reliable, the accounting system was sound.”
“Thank you, Mdm Speaker. I would just like to make two points. Firstly, the Member cast doubt on whether these lapses have compromised the interests of residents. Mdm Speaker, during the severe haze in 2013, a community hospital appealed to a GRO for air purifiers for patients in their non-airconditioned wards. The item was in great demand during that haze period and was out of stock across all major retail outlets in Singapore. The grassroots leaders and the volunteers went all around Singapore, and, finally, found a store, a small store, which had a limited stock. They quickly purchased their air purifiers without asking for three quotes, as they were in a great hurry to purchase these air purifiers to help to alleviate the discomfort of the patients. Mdm Speaker, is this a case of non-compliance with financial procedures and rules? The answer is yes. Is it a case of grassroots leaders and volunteers compromising on the interest of the community? The answer is certainly no. In another instance, a Community Club (CC) awarded one tenancy contract to a non-profit community organisation without competition. This was to promote healthy lifestyles, in particular, counting on this organisation to reach out to the senior residents, with an annual outreach of 20,000 residents to help them to stay healthy. The CC did not seek the required approval of PA headquarters. So, it was certainly a case of non-compliance with financial rules. Again, is this a case of compromising the interest of residents? As far as I am concerned, as Deputy Chairman of PA, the answer is no.”
“Madam, unlike the other financial assistance schemes like ComCare and the Pioneer Generation (PG) Assistance that do so, Silver Support is an income supplement and is not intended to be a substitute for other sources of retirement income, which would include CPF savings, private savings and family support. As Deputy Prime Minister Tharman put it during the Budget debate, Silver Support supplements incomes in a modest but meaningful way. Other schemes where we have adopted a quarterly payment approach include the Workfare Income Supplement (WIS) scheme, which is also designed to supplement incomes. Assoc Prof Fatimah Lateef also asked about data sharing and a stronger coordination between agencies that manage other financial assistance schemes, such as ComCare and so on. Madam, this Bill will enable CPF Board to exchange information among relevant agencies, with the safeguards that I mentioned earlier. As part of the implementation approach, we will also look into the Member's suggestion of paying Silver Support benefits to eligible recipients who are unable to directly receive the benefits themselves, through Page: 97 their authorised third parties or next-of-kin. Mdm Speaker, to sum up, this Bill sets out the necessary legislative framework for us to smoothly implement the Silver Support Scheme next year. [(proc text) Question put, and agreed to. (proc text)] [(proc text) Bill accordingly read a Second time and committed to a Committee of the whole House. (proc text)] [(proc text) The House immediately resolved itself into a Committee on the Bill. – [Mr Lim Swee Say.] (proc text)] [(proc text) Bill considered in Committee; reported without amendment; read a Third time and passed. (proc text)] Page: 98”
“Mdm Speaker, I would like to thank Mr Zainudin Nordin and Assoc Prof Fatimah Lateef for their support of the Silver Support Scheme Bill. Silver Support is a permanent scheme. In response to Assoc Prof Fatimah Lateef, this means that it will apply to both the current and future generation of elderly. Those who meet the eligibility criteria will start to receive Silver Support benefits from the age of 65. Both Members touched on the eligibility criteria. Mr Zainudin suggested giving more weightage to lifetime wages. I would like to reiterate that eligibility will be based on a combination of three factors – lifetime wages, the level of household support an individual has, and the type of housing he or she lives in. As for those on the margin, for example, as highlighted by Assoc Prof Fatimah Lateef, those with a private housing address but actually do require the help. So, these are the marginal cases. While they do not automatically qualify for Silver Support, they can write to the Commissioner to appeal and we will consider each case on its merits. Mr Zainudin asked about the payment for this Silver Support. He suggested that the payment be done in cash, rather than into their CPF account. As I have mentioned earlier, Silver Support will be a cash supplement and will be paid into the bank accounts of eligible elderly. For those who have no bank accounts, we will send cheques to their registered addresses. So, in other words, 100% cash. Assoc Prof Fatimah Lateef and Mr Zainudin asked whether Silver Support could be paid out on a monthly basis.”
“Second, the Bill provides for Singaporeans who do not want CPF Board to access their means information from existing Government databases, to give them the right to opt out of the provision of such information. We will also respect any decision made by any individual not to forward share his personal information that resides in existing Government databases with other agencies, including CPF Board. Opting out would mean that such individuals will not be automatically assessed for Silver Support benefits. However, if they subsequently change their mind, they can come forward at any time to provide their personal information in order to be assessed for Silver Support. Finally, Part 4 of the Bill provides for the enforcement of the Bill. It will be an offence for anyone who provides false information in order to obtain Silver Support benefits or receive a higher quantum than what he is eligible for. It will also be an offence to obstruct an authorised investigator in his investigation of possible false declarations. Furthermore, CPF Board will be empowered to recover any overpaid Silver Support benefits. Page: 93 Mdm Speaker, let me conclude. Silver Support is a landmark scheme that helps to mitigate inequalities among our elderly Singaporeans. We will need to put in place systems so that approximately 150,000 elderly Singaporeans, who stand to benefit from the scheme, are able to receive their Silver Support payments smoothly in 2016. This Bill paves the way for the Government to do so, by putting in place the necessary laws for the administration and implementation of the scheme. Mdm Speaker, I beg to move. [(proc text) Question proposed. (proc text)]”
“The Commissioner's role will also include determining how one can opt out of Silver Support means-testing and reviewing appeal cases. Page: 92 Clause 6 specifies that the Silver Support Scheme will cover Singaporeans aged 65 and above who meet the eligibility criteria, for as long as they require it, given their financial circumstances. As mentioned by Deputy Prime Minister Tharman in his Budget speech this year, we will consider several factors, such as lifetime wages, the level of household support and housing type, in order to determine a person's eligibility for Silver Support. The detailed eligibility criteria and other implementation details will be announced closer to the implementation date. Part 3 of the Bill sets out provisions for the Commissioner and CPF Board to access and use personal and means information from Government databases, for the purpose of administering the Silver Support Scheme. The information required includes basic administrative information, such as residential addresses as well as financial data, such as household income. This access to personal information will enable CPF Board to automatically assess an individual for Silver Support without requiring him to come forward to apply. I would like to assure Members that the Bill puts in place stringent safeguards to protect the personal information from unintended or inappropriate use. First, only persons authorised by the Minister for Manpower may access an individual's personal information, for the purpose of administering the Silver Support Scheme. Clause 9 makes it an offence for any person to access, use or disclose such information without proper authorisation. Offenders will face up to a $5,000 fine, or 12 months' imprisonment, or both.”
“Mdm Speaker, I beg to move, "That the Bill be now read a Second time." Mdm Speaker, Prime Minister Lee introduced the Silver Support Scheme in August 2014 during the National Day Rally. The Deputy Prime Minister and Minister for Finance subsequently provided more details of the scheme in this year's Budge speech. Together with Workfare, Silver Support will be a permanent feature that forms the fourth pillar of our social security system, complementing the other three pillars of home ownership, the Central Provident Fund (CPF) system and healthcare assurance. The Silver Support Scheme aims to mitigate inequalities by supplementing incomes for the bottom 20% – 30% of elderly Singaporeans, who have lesser means in their retirement years. Those who qualify for the scheme will automatically receive a quarterly cash supplement of between $300 and $750. Since its announcement last year, the Ministry of Manpower (MOM) has been working closely with CPF Board and other partner agencies to prepare for the implementation of the Silver Support Scheme in 2016. The purpose of the Bill is to set out the legislative framework and powers necessary for the implementation and administration of the Scheme. Mdm Speaker, I shall now highlight the main features of the Bill. First, clause 5 provides for the establishment of the Silver Support Scheme. The scheme will be administered by CPF Board on behalf of the Government. As the scheme's administrator, CPF Board's duties will include developing the necessary systems to automatically assess an elderly person's eligibility for Silver Support and to make payments to the eligible recipients. Clause 4 allows the Minister to appoint a Commissioner for Silver Support to oversee the proper implementation of the scheme.”
“Mr Zainudin Nordin also highlighted the need for us to continue to refine and improve to keep the Employment Act up-to-date to ensure that the harmonious tripartism that we enjoy today will continue for a long time to come. Mr Zainudin and Mr Zainal have also expressed their great concern for the low-wage workers. Mrs Lina Chiam has also touched on the need for greater protection for PMEs. My Ministry agrees with all these in the sense that as we move forward, as we quicken the pace of restructuring, it is important that as we try to support businesses more in their Page: 90 restructuring, along the way, we must also make sure that our workers from PMEs to low-wage workers and part-timers and so on are treated fairly in the process. So, moving ahead, MOM and our Tripartite Partners will continue to work together. Mr Patrick Tay asked whether there are any particular sector or type of companies that will be our immediate priority. My answer is: all sectors, all companies. I believe that by working together with our tripartite partners, we will be and we should be able to roll out this implementation as smoothly as possible. Madam, once again, I thank our national and sectoral tripartite partners and Members of the House for their inputs and support for this Bill. [(proc text) Question put, and agreed to. (proc text)] [(proc text) Bill accordingly read a Second time and committed to a Committee of the whole House. (proc text)] [(proc text) The House immediately resolved itself into a Committee on the Bill. – [Mr Lim Swee Say.] (proc text)] [(proc text) Bill considered in Committee; reported without amendment; read a Third time and passed. (proc text)] Page: 91”
“The one-year grace period will give SMEs more time to put in place or adjust their processes and systems to implement the required changes. During this period, MOM will also take a light-touch enforcement approach, aimed at educating and helping employers comply with the higher standards rather than to punish them. I also appreciate Mr Patrick Tay's remarks on enforcement. I would like to assure him that even as we adopt a light-touch enforcement approach, we will take a serious view of employers who repeatedly ignore MOM's advice, and deal with them accordingly. We will also continue to monitor the implementation closely over the next year and calibrate our education efforts to help small employers level up in their practices. Mr Thomas Chua shared that some SMEs may find it difficult to provide a detailed job scope for their employees in their KET because the division of labour in smaller firms might not always be so clear. Mr Chua is right that we need to balance clarity for employees with flexibility for businesses. We will, therefore, allow employers to set out the broad job scope in KET at the start of employment to develop some common understanding of what the job entails. If there are changes down the road, we expect the employer to communicate them clearly to the employee and come to a mutual agreement. If the changes are very significant, it is good practice to issue a new KET. Madam, to sum up, the Bill is about raising employment standards while allowing employers to adjust to the changes in a practical manner. This will set better employment norms and develop more progressive workplaces for our people. Mr Zainal Sapari pointed out that communication and education are not only important for the employers but for the employees as well.”
“Feedback thus far has been positive and we will continue to make these tools available to employers and conduct the necessary briefings to communicate these changes, especially for SMEs. I agree with Mr Zainal Sapari that employers should provide payslips and KETs in a way that their employees can easily access and understand. Besides the languages, Mr Thomas Chua also spoke about how some smaller SMEs found it difficult to use IT solutions for payslips. Assoc Prof Randolph Tan also asked for greater assistance for SMEs which are in need. We have, therefore, allowed the flexibility for employers to decide on the form that best meets the needs of their business and employees, including providing hard copies to their lower-wage workers who may not have easy access to computers or smart-phones, as suggested by Mr Zainal Sapari. Employers who need help in doing so can tap on our assistance package, including the ready-made blank sample forms, if they do not have the IT systems to provide payslips and KETs. Mr Zainal Sapari asked if we could shorten the length of the grace period for employers from one year to six months. However, for smaller SMEs, on the other hand, these changes would impact them the most and they have, in fact, shared their concerns and feedback through associations, such as SCCCI, ASME and the Federation of Merchants' Association Page: 89 Singapore. Mr Thomas Chua had also highlighted some of the implementation issues faced by SMEs. That is why we have decided to provide a one-year grace period for employers, especially the SMEs, to adjust to the new requirements. The unions say one year is too long; employers say one year is too short. So, I think one year is about right.”
“Mdm Speaker, I would like to thank Mr Zainudin Nordin, Mrs Lina Chiam, Assoc Prof Randolph Tan, Mr Thomas Chua, Mr Zainal Sapari and Mr Patrick Tay for Page: 88 their support for the proposed changes to the Employment Act. Mdm Speaker, I will now address the issues raised by the Members. I agree with Assoc Prof Randolph Tan that this amendment will help to build trust in the employer-employee relationship. I also agree with Mr Patrick Tay that this will make our workplace fairer. As many Members have pointed out, these amendments will benefit all employees covered under the Employment Act, especially the vulnerable groups, who may not fully know their employment rights. It will also help employers prevent misunderstandings and minimise disputes at the workplace. Mr Patrick Tay urged MOM to pay close attention to education for these changes to ensure that all employers, big and small, are able to implement them properly. Mr Thomas Chua also shared SCCCI's efforts to develop the free e-payslip software and reach out to SMEs, which I really truly appreciate. Indeed, publicity and outreach have been and will continue to be important in rolling out these changes. So, over the past two years, MOM, together with our partners in the unions and business sector, has been working hard to provide the tools to help employers comply. As I mentioned earlier, some examples include blank payslips that can be filled in by hand. To Mr Thomas Chua's comment, yes, the blank sample payslips are already downloadable from the MOM website in all four languages. As for hard copies, the Chinese, Malay and Tamil versions will be made available shortly. We also provide one-to-one hands-on assistance for SMEs and provide funding support as well.”
“Taken as a whole, they will strengthen our efforts to institute good employment norms and develop progressive workplaces for our people. Madam, I beg to move. [(proc text) Question proposed. (proc text)]”
“This is in line with the powers our enforcement officers have under other laws, such as the Employment of Foreign Manpower Act. We will also make other technical amendments to clarify our long-standing policy intent and existing practice with respect to public holidays and all family-related leave during no-pay leave. Employers are required to pay their employees holiday rates of pay or give them a day off if they have to work on public holidays. We will make it clear that this includes all non-scheduled public holidays declared by the Government, such as the SG50 Public Holiday Page: 75 and polling days. In addition, we will also make it clear that employers are not required to provide paid family-related leave to employees who are granted voluntary no-pay leave. This has been the practice in order to encourage employers to grant no-pay leave to employees to cater to their family or personal needs. The Child Development Co-Savings Act will also be clarified accordingly. We propose that these amendments take effect as soon as possible after the passing of the Bill, as these are technical clarifications and nothing has changed for employers or employees. Mdm Speaker, I would like to thank the public, the national and sectoral tripartite partners for their views and feedback that have made this review of the Employment Act more meaningful and robust. In particular, I would like to express my appreciation to the National Trade Union Congress (NTUC), Singapore National Employers Federation (SNEF), Singapore Business Federation (SBF) and ASME. The proposed amendments will raise employment standards and facilitate dispute resolution at the workplace. They will also provide employers the flexibility to manage these changes in a practical manner.”
“For a start, four breaches will be covered under this administrative penalty framework. First, failure to issue itemised payslips. Second, failure to issue key employment terms in writing. Third, failure to maintain detailed employment records. And lastly, provision of inaccurate information to the Commissioner for Labour or inspecting officers without the intent to defraud and mislead. What this means is that employers who do not issue payslips or key employment terms may face a financial penalty, but there will be no criminal record. This process is more appropriate for these types of administrative breaches and prevents companies from being penalised too heavily, especially SMEs. To do this, "authorised officers" with legal and investigative experience will be appointed. For a start, the administrative penalties they can impose will range from $100 to $200 per employee or occurrence, depending on the type of breach. The officers can also direct employers to rectify the breaches. Non-compliance with these directions will then become a criminal offence. Madam, we are also taking the opportunity to make other operational amendments to the Employment Act. For example, MOM's practice is to return to the owner evidence that is no longer needed for investigations. However, this is not possible sometimes because we cannot locate the owner; or the evidence is an illegal item, such as a forged document. We are amending the law to allow MOM to report such evidence to the Courts so that it can be disposed of properly. The law also currently allows inspecting officers to take photos or video recordings if needed during investigations. We will amend the law to explicitly say that they can also take audio recordings.”
“MOM has, therefore, been working with IDA and SPRING, as well as the tripartite partners, to help give smaller employers the tools to meet these new requirements. Over the past two years, we have provided an assistance package. This includes blank payslips that can be filled in by hand, free software, one-to-one hands-on assistance for SMEs, and funding support. We have received positive feedback from users on the assistance package. Over the next few months, my Ministry will also be issuing more detailed guidelines, with sample payslips and key employment terms, to better help employers understand how to comply with these requirements. We will continue to work with our tripartite partners, industry and grassroots associations to conduct briefings and workshops to communicate these changes. In view of the feedback from small businesses, we will give a one-year grace period in our enforcement. This means that from April 2016 to end-March 2017, MOM will take a light touch enforcement approach. Our focus will be on educating smaller employers on how to comply with the key employment terms and payslip requirements, rather than on punishing those who do not comply. Madam, let me now move to the proposed administrative penalty framework, which will also come into effect from April 2016. Today, all Employment Act breaches are considered criminal offences. These range from the failure to maintain employment records, which is mostly administrative, all the way to the more serious offences like non-payment of salaries which directly harm our workers. This is not proportionate. Page: 74 The proposed framework will allow MOM to treat less severe breaches as non-criminal infringements which attract an administrative penalty instead.”