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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Every one of 1,231 lines we hold for Lim Swee Say, in date order, each linked to its source. Free to read, in full, without an account. Page 12 of 25.
“Madam, in coming up with these requirements, MOM actively consulted and took feedback from our tripartite partners. In particular, the Association of Small and Medium Enterprises (ASME) gave us practical feedback about the difficulties faced by small businesses in implementing these changes. We have, therefore, made adjustments to include flexibility for employers, but without compromising protection for workers. So, for example, employers will have flexibility to issue the payslips and key employment terms in either soft or hard copy, including handwritten copies. For payslips, even if workers are paid weekly or fortnightly, employers will be allowed to consolidate payments into one monthly payslip. For key employment terms, common terms can be provided in the company's employee handbook or website, so long as the Page: 73 information is easily accessible to workers. In addition, key employment terms apply only to employees who work for at least 14 days continuously. This means that employers need not give key employment terms to casual workers who work only for a few days now and then. These new requirements were made known publicly since 2014. We had deliberately given a two-year window till 2016 for employers to prepare for these changes. In the interim, we released a new set of Tripartite Guidelines on itemised payslips and key employment terms to help employers understand and implement the requirements. We are also aware that small businesses need extra help. For example, some do not have the practice of issuing payslips and/or key employment terms. Or if they do, they may not include all the items required.”
“Mdm Speaker, I beg to move, "That the Bill be now read a Second time." Madam, the Employment Act is Singapore's main employment law. It provides for the basic terms and working conditions for employees, while balancing employers' need to stay competitive. It is complemented by the Industrial Relations Act. Together with our tripartite partners, we regularly review our laws to keep pace with the changing labour force profile and employment landscape. We last amended the Employment Act in 2013 to extend protection to more workers. We also amended the Industrial Relations Act in 2014 to better meet the needs of our professionals, managers and executives (PMEs). The Bill that I am presenting today is another instance of how the tripartite partners have worked together to enhance labour standards. It proposes amendments to the Employment Act in two key areas. First, we will be requiring employers to provide itemised payslips and key employment terms in writing to their employees. Second, the Ministry of Manpower (MOM) will be setting up an administrative penalty framework to make less severe breaches of the Employment Act non-criminal. Let me elaborate. The first set of amendments proposes to give itemised payslips and key employment terms in writing to employees covered under the Employment Act. On the one hand, providing such documents will allow employees to better understand their regular salary components, as well as employment terms and benefits. On the other hand, this will help the employers to prevent misunderstandings and minimise disputes with their employees. Overall, this is better for employers and employees. We plan to make the new requirements for itemised payslips and key employment terms effective from 1 April 2016.”
“For the GRO, as I had mentioned earlier, all our GRO accounts have been subject to internal audits all these years. That is the reason why I say it with confidence that there was no irregularity at the systems level.”
“Mdm Speaker, first of all, let me correct the point brought up by Mr Png. It is that of the four claims, only one had supporting document; three did not at the point of claim. Subsequent to the observation by AGO, the CCC went back to the vendors to retrieve the evidence of payment. In other words, there was a lapse in the procedure, but they have rectified that by verifying the claims with the vendors. Secondly, sample size. Mdm Speaker, PA has no decision over the sample size. In fact, all these are decided by AGO. However, it is in the interest of PA to ensure that these lapses are isolated in some cases and not widespread across the whole organisation. The GRO accounts have been subject to internal audits every year by public auditors appointed by PA. In other words, it is not that the accounts have not been audited all these years; it is not that it is being subject to this sort of audit for the first time. So, I think it is important to highlight that we do not depend on AGO to audit our accounts. PA, as a grassroots movement, has been doing its internal audits for all GROs all these years. And since 2012, we have consolidated all accounts into PA's accounts and subject the whole account for external auditing. Thirdly, Mr Png asked about the adverse opinion and irregularity. It is important that Mr Png recognise what Deputy Prime Minister Tharman said earlier. There are two different types of audit. One is about auditing the accuracy, the reliability of your financial statements, of your accounting system. That is the function of an external audit conducted by the external auditor. The second type of auditing is about compliance, the compliance audit.”
“The adverse opinion was issued not for financial irregularity, but because the GROs' accounts were not included in PA's financial statements. PA has since consolidated all the GROs' accounts into our financial statements. We have received clean opinions for our FY2013 and FY2014 financial statements. This AGO audit is over and above our annual audits. By having multiple layers of checks and transparency, we ensure a high level of vigilance over the integrity of our financial management. While we cannot completely eradicate human error, being vigilant means these are the exceptions rather than the norm. AGO is doing its job and has done an impartial audit. PA takes the AGO findings seriously. We have taken swift and decisive action to put things right immediately. When things go wrong, we do not shy away from taking responsibility and tough action to put things in order.”
“Notwithstanding the good intentions of the CCMCs in bringing in these services for the benefit of the residents and that they had benchmarked the rental rates offered against similar rental rates in the area, they did contravene the financial rules of PA in not seeking prior approval from PA HQ for the waiver of tender. PA acknowledges our shortcomings in this area and has taken immediate steps to enhance compliance. The second area is with regard to claims by a Citizens' Consultative Committee (CCC) chairman. The seven claims made by the chairman of a CCC to himself were: (a) one case of immediate financial assistance for a needy family at a funeral wake; (b) a working dinner and an appreciation dinner for volunteers and community partners; and (c) four claims for workplan retreats. Page: 23 The claim for financial assistance presented to the needy family at a funeral wake had no supporting document. However, the amount presented to the family was witnessed by a few other volunteers who were present. The two claims for the working and appreciation dinners were supported by receipts. As for the four claims related to two workplan retreats, one had supporting documents. Even though the original receipts for the other three claims amounting to $56,050 were misplaced, the CCC had subsequently verified the amounts claimed with proof of payment from the vendor. Although there was no evidence of dishonesty, the CCC chairman concerned has taken personal responsibility for these lapses and resigned from his position. Madam, as a Statutory Board managing public funds, PA takes our financial governance seriously. Our accounts are subject to annual statutory audits. The last time our accounts received an adverse opinion was for FY2012.”
“Mdm Speaker, the Auditor-General's Office (AGO) audited the People's Association (PA) and the Grassroots Organisations' (GROs) compliance with the financial rules set by PA for GROs. First, on tenancy contracts. PA's financial rules allow Community Club Management Committees (CCMCs) to seek the approval of PA headquarters (HQ) for the waiver of competition for the award of tenancy contracts where they have valid reasons to do so for the benefit of residents. Unfortunately, there were 13 tenancy contracts cited by AGO for Page: 22 waiver of competition without prior approval from PA HQ. These are: (a) five contracts by two community clubs (CCs) with poor locations to provide children enrichment, food and entertainment services. One CC is in a housing estate under redevelopment and the other is in a new housing estate in its early stage of development; (b) one contract for the installation of an automated teller machine (ATM) by a particular local bank to complement ATMs of two other local banks in the neighbourhood; (c) one contract for the renewal and continuation of childcare services for the convenience of the parents and their children; (d) three contracts for the introduction of new community lifestyle concepts to encourage family bonding and to inject vibrancy in the neighbourhood; (e) two contracts for food outlets that are popular with heartlanders, including youths and families with young children; and (f) one contract for a non-profit community organisation that promotes healthy lifestyles, in particular, for senior residents.”
“The proportion of discouraged workers among the citizen labour force had remained low at 0.5% in 2013 and 20142. These are individuals who were not actively looking for a job because they believed their job search would not yield results. The latest data that is available is for 2014. Page: 90”
“Employers of foreign domestic workers (FDWs) are required to bear the cost of any medical treatment incurred by their FDWs so as not to transfer this cost to other taxpayers. To help employers meet this obligation, we make it compulsory for employers to buy medical insurance with a minimum cover of $15,000. Employers can voluntarily purchase higher insurance cover currently offered by insurance companies. In the past three years, a total of 120 bills for day surgery and inpatient treatment incurred by FDWs at public hospitals, or about 2% of such bills, were above $15,000. This means that the current minimum cover of $15,000 is sufficient to fully cover 98% of day surgery and inpatient bills incurred by FDWs at public hospitals over this period.”
“Mdm Speaker, self-employed persons or SEPs in short, are only required to contribute to their Medisave Account. Medisave Account contributions in excess of the Medisave Contribution Ceiling are automatically transferred to a CPF member's Special Account if he is below 55 years old, or Retirement Account if he is aged 55 and above. This is to help CPF members save more for their retirement needs as interest rates for the Special and Retirement Accounts are higher than the Ordinary Account and members will enjoy better returns on these savings. SEPs who wish to save more in the CPF for their housing and retirement needs can make voluntary contributions and enjoy tax relief on these contributions, subject to limits. Er Dr Lee has also asked whether an SEP can opt to only contribute to the Ordinary Account, if he can prove that he has substantial insurance policies to cover future medical Page: 42 expenses. Medisave savings can be used to pay the hospitalisation expenses and other healthcare expenses, such as outpatient treatment for approved chronic diseases and recommended screening and vaccinations. Besides hospitalisation expenses, Medisave savings can also be used to pay for the premiums of MediShield Life and ElderShield. MediShield Life will cover all Singaporeans and Permanent Residents for life. Unlike MediShield Life, coverage provided by other medical insurance policies may not be guaranteed for life. More importantly, his Medisave can also be used to pay for the medical expenses or MediShield Life premiums of his spouse, children, parents and grandparents. Hence, CPF members with comprehensive medical insurance policies are not exempted from contributing to their Medisave. 3.00 pm”
“Mdm Speaker, the overall annual growth of foreign workers has moderated from 144,500 in 2007, eight years ago, to 34,000 in 2014. In other words, the growth rate has slowed from 19% year-on-year to 3% year-on- Page: 35 year over the eight years. This significant slowdown in foreign worker growth occurred in all sectors over the past eight years. For the services sector, the slowdown was from 54,500 to 21,500; in other words, 28% year-on-year growth to 5% year-on-year growth. For the construction sector, it slowed down from 36,000, or 23% year-on-year growth, to 9,700, or 3% year-on-year growth. Likewise, in the case of the manufacturing sector, the slowdown was from 42,000 to a negative growth of 5,400; in other words, from 18% year-on-year growth to a contraction of 2%. MOH had projected that the number of healthcare professionals needed would increase from 46,000 in 2011 to 78,000 in 2030 to cater to an ageing population with higher healthcare needs. The number of support care staff, such as healthcare assistants and nursing aides, would also need to increase by about 9,000 over the same period, from 2011 to 2030. In addition, to assist with care-giving duties at home and supporting families with elderly and children, the National Population and Talent Division (NTPD) expects demand for foreign domestic workers to increase to about 300,000 by the year 2030. Our aim is to moderate the inflow of foreign manpower at a pace that we can accommodate. Currently, the foreign share of our workforce is about one-third. We intend to maintain this. This means that the pace of foreign workforce should grow broadly in tandem with the growth of our local workforce as we move forward.”
“Mdm Speaker, later on, there is a Parliamentary Question on growth of foreign workers. Maybe I can answer that then.”
“Mdm Speaker, foreign worker levies, together with other measures, such as the sector-specific Dependency Ratio Ceiling (DRC), serve three purposes: manage the demand for foreign workers (FWs); encourage productivity gains; and level the playing field for Singaporean rank-and-file workers to sustain real income growth. DRC alone is not sufficiently responsive to the diverse needs across industries and companies. Set too high, we will not be able to moderate the inflow of foreign workers. Set too low, it will be rigid and will hit SMEs hardest. Hence, we need to complement the DRC Page: 34 with foreign worker levies to strike a better balance between a rigid quota cap and a flexible price mechanism. Reducing or doing away with levies would not benefit Singaporean rank-and-file workers. Employers may prefer to hire cheaper foreign workers to maximise their quota. The salary of local workers may also be suppressed due to lower cost of hiring foreign workers. In addition, this could deter investment in manpower-lean technology and solutions. The challenge faced by all firms, including SMEs, is to adapt to our new economic and manpower landscape. The Government has various schemes in place to support firms in making this transition. SPRING, for example, has the Innovation and Capability Voucher (ICV) to help SMEs to invest in productivity improvements. Since 2012, about 16,000 vouchers have been awarded and 90% of which were given to very small businesses. On the part of MOM, we lower the foreign worker levy for skilled work permit holders. This is to encourage employers to upgrade the skills of the workers, including work permit holders, so as to achieve higher productivity.”
“About a quarter of these cases involved staff employed on a part-time, casual or temporary basis.”
“Employers are required to make CPF contributions for all their local employees (Singapore Citizens and Permanent Residents) earning a monthly salary of more than $50, including those on term contract, part-time or casual work arrangement so long as there is an employer-employee relationship. Employers found to have not complied with their CPF obligations will be required not only to make good the CPF contributions due to their employees, but also be charged a late payment interest of 1.5% a month, and/or imposed with a composition fine. Employers convicted under the CPF Act could face a fine of up to $5,000 per offence and/or jail term of up to six months. Repeat offenders could be subject to a fine of up to $10,000 per offence and/or jail term of up to 12 months. MOM and CPF Board jointly launched the “WorkRight” initiative in 2012 to improve compliance with the Employment Act and the CPF Act through public education and enforcement. Outreach campaigns were conducted to raise awareness among employees of their employment rights and among employers of their statutory obligations to their employees, including their CPF obligations. The number of onsite inspections was also stepped up by more than ten times to more than 5,000 inspections annually. We also receive complaints/enquiries from employees and members of the public. As of 1 April 2015, WorkRight has benefitted more than 42,000 Singaporeans who now enjoy their statutory entitlements such as CPF contributions, timely payment of salary, or payment of overtime allowance. Between January 2011 and December 2014, CPF Board acted on about 3,400 complaint cases involving non-payment of CPF contributions, and recovered $9.8 million of CPF contributions for more than 5,800 employees.”
“Commercial purpose-built dormitories under the Building and Construction Authority (BCA), Housing and Development Board (HDB) and JTC Corporation (JTC) are allowed to house Work Permit holders from all industrial sectors, including the services sector, for up to 25% of each dormitory’s capacity. Businesses with specific needs may approach the relevant agencies overseeing the dormitory where they intend to house their workers.”
“As of June 2014, there were 183,900 freelance workers, forming 8.7% of employed residents compared to 9.4% 10 years ago in 2004. Freelance workers are persons who operate their own business or trade. This means that they are their own employers. They decide which service contracts to enter into. There is no employer-employee relationship between them and their clients. For this reason, they are not covered by the Employment Act (EA). Freelance workers who are not paid by their clients can seek legal redress by commencing proceedings against their clients at the State Courts, which includes the Small Claims Tribunal, depending on the nature of the claim or disputed amount.”
“It is against the law for employers to inflate their foreign worker quota and employ more foreign workers than they are rightfully allowed to. From 2011 to 2014, MOM took enforcement action against 90 such employers. They inflated their foreign Page: 136 worker quota by making CPF contributions to locals who were not working for their companies to hire additional foreign workers. MOM takes a serious view on employers who falsely inflate their foreign worker quota. Errant employers face a financial penalty of up to $20,000 for every work pass application made using the inflated quota. They may also be debarred from hiring foreign workers for a period of 12 months or more, depending on the severity of the case.”
“Our economy is restructuring towards one where growth is driven by innovation and skills. As businesses restructure, mature PMEs may be more vulnerable to being retrenched and face greater difficulties in securing their next jobs. We understand the challenges that they face. The Government has put in place various measures to help them reskill and find new jobs. One of these measures is the Professional Conversion Programme (PCP), which enables PMEs, including those who have been made redundant, to undergo skills conversion and take on new jobs in a different industry. More than 6,000 PMEs have benefited from the programme since its launch in 2007. We are committed to doing more to further enhance employment and career opportunities for PMEs. As announced on 8 July 2015, the new Career Support Programme (CSP) will provide mature Singaporean PMEs 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 PMEs access more job opportunities. Both employers and Singaporean PMEs have important roles to play. Employers should tap on the wealth of experience of mature PMEs and consider them fairly for career opportunities. Singaporean PMEs need to be adaptable in the fast-changing economy and take ownership of their own career development, upskilling and upgrading to take on quality jobs and careers.”
“Mdm Speaker, I would not be able to give a quantitative response. But in the course of my interaction with many companies, especially SMEs, I would say that even though we have continued to allow the work permit holders to continue to grow at a slower pace, I think already, many of them are facing a lot of constraints. Therefore, on reflection, we did the right thing. We did the right thing by not freezing, not suddenly freezing the importation of Work Permit holders.”
“Mdm Speaker, the flash estimate for employment in the second quarter of 2015 will come out by the end of this month. Right now, I do not have any information to share. Secondly, in terms of vacancies, I think the Member is correct, that the non-tradable sectors are the ones facing greater constraints with manpower. For example, many of our F&B, many of our SMEs are involved in non-tradable sector. For these sectors, I have been in close contact with them, because to go back to the old growth formula of heavy dependency on more work permit holders is not a solution. At the end of the day, we do need to find ways to sustain our economic growth, our workforce growth in a more sustainable manner. MOM is working with them to help them to look at where they are today, and where they think they ought to be three years from now. In other words, as we go through this economic repositioning, it should apply to all sectors, whether they are tradable or non-tradable. I am happy to say that a number of these non-tradable sectors have responded positively. Some of them have given us a proposal to say this is where we are today and this is where I want to be three years from now; and in between from here to there, what kind of support would be needed, whether it is the various financial grants and so on. MOM is working very closely with SPRING and the relevant agencies to look for ways to help them to Page: 30 go through this transition. So, in other words, to go back to the past is not a solution because it just pushes back in our push for repositioning. Looking forward, certainly, we are going to continue to be creative, continue to find win-win outcomes for the agencies, for the companies and for the unions as well.”
“Mdm Speaker, as I have mentioned, I will not jump to any particular conclusion just based on one quarter's outcome. We must look at it over a period of a few quarters. The job growth in Singapore indeed was strong. As I had said, compare the first quarter 2015, compared to a year ago, there are now another 90,000 jobs available. Our manpower growth was 2.7%. Now, is a 2.7% growth over one year overdone? I do not think so. I still remember that, in fact, as we tightened the foreign manpower quota, there was a call in this House that we should go for a complete stop in terms of the importation of work permit holders. I think Page: 29 that would be overdone. But what we have done was to slow down the growth but yet at the same time, manage the process of transition, in a way that, hopefully, will enable more and more companies, especially the SMEs, to adapt and to grow. It is not to our interest to see a sudden drop and to see a sudden decline in our economic activity in Singapore.”
“We do notice that for the manufacturing sector, which is a mainly export-oriented sector, the pace of restructuring is a lot faster. As a result, the manufacturing sector has become a lot more manpower lean, compared to the services sector. But for the service sector, both the tradable and non-tradable sectors, are taking in more manpower on the whole, not on quarterly basis; but if you look at it, over the past one year. Assoc Prof Randolph Tan (Nominated Member): Thank you, Madam. I want to thank the Minister for those clarifications. I think one of the reasons why there has been so much interest surrounding those figures – a sudden drop in employment – is that it had been so sharp. One of the concerns with interested observers is whether this is a sign that we may have overdone the manpower tightening. Can I ask Minister whether he thinks that there will be enough warning signs if the overtightening has been overdone?”
“Madam, the first point I want to emphasise is that there is a saying that a point is a point, two points make a line, three points make a trend. Therefore, I would not draw any conclusion just based on one point. At the same time, I would emphasise that even though with a decline of 6,100 jobs in the first quarter of 2015, compared to a year ago, there are still many more jobs available in the first quarter of 2015, compared to a year ago, in the first quarter of 2014. In fact, the increase over this year-on-year was about 2.7%, almost 90,000 jobs. Therefore, jobs deficit is not the issue facing us today. The job market is Page: 28 still growing on the year-to-year basis. Secondly, the Member asked whether this is a sign that the industry is not restructuring fast enough. There is a contradiction. On the one hand, we are concerned that the job growth has slowed down and yet at the same time, we are concerned that the restructuring is not fast enough. In fact, with a faster pace of restructuring, we can expect job growth to slow even further. Therefore, I would not adopt just one point and draw any conclusion. But over the next quarter, and over a few quarters, we will be monitoring very closely the job growth trend. From there, I would be able to draw a better conclusion regarding the pace of restructuring. But I am happy to say that having tightened the foreign manpower growth and at the same time with the high employment rate and low unemployment rate, I must say that on the ground, we have seen more sectors, more companies embarking on this journey of restructuring. Thirdly, the question about whether these are tradable or non-tradable sectors, I would say that it cuts across all sectors.”
“Employment data for the second quarter of 2015 is not yet available. We are monitoring the employment trends closely in the coming quarters.”
“Mdm Speaker, after five years of strong increases, total employment fell by 6,100 in the first quarter of this year compared to the growth of 28,300 a year ago in the first quarter of 2014, and 40,700 in the fourth quarter of last year. This is due to seasonal declines and sharper moderation in employment growth in the manufacturing and construction sectors, as well as parts of the services sector: retail, real estate services, accommodation and food services. Page: 27 The moderation in employment growth needs to be seen in the context of our labour market and the repositioning of our economy. First, we have seen a sustained increase in our employment rate, to a high of 79.7% last year. In fact, at 79.7%, we are now among the highest, together with Japan. Our unemployment rate has remained low in the last few year, and, in fact, continues to be among the lowest in the world. Local workforce growth, going forward, will be slower, given that we have one of the highest employment rates and lowest unemployment rate in the world. Secondly, job vacancies remain high and outnumber jobseekers. The seasonally adjusted ratio of job vacancies to unemployed persons remains stable at 143 openings per 100 jobseekers in March this year, compared to 142 in December 2014. In other words, we have more job vacancies than the number of people looking for jobs. Thirdly, to sustain growth, we are moving forward towards a more manpower-lean economy. We will continue to encourage businesses to reduce their reliance on labour, especially low-skilled foreign workers. We will also focus more on upgrading the skills of our local manpower, and improving productivity and increasing the pace of innovation as the source of future growth and competitiveness.”
“Mdm Speaker, I thank the Member for pointing this out. It is a very important point. Let me emphasise again, I mentioned earlier about making the application for EP more difficult, but it is only for the "double weak" employers. Based on MOM's observations, the vast majority of the employers are progressive and they do give fair consideration to Singaporeans. Therefore, only a small group of employers will be affected. We are also engaging them in a positive way. So far, in the last 10 months or so, we have identified about 150 employers belonging to this category of either "single weak" or "double weak", and we are working very closely with them, in some cases, through the relevant economic agencies and, in others, between MOM and these companies. I fully agree that it is important that we continue to maintain the competitiveness and attractiveness of Singapore because, otherwise, we are going to have a jobs deficit challenge. Therefore, I want to assure the business community that we will always be friendly towards employers that adopt fair and progressive employment practices. Page: 26”
“Mdm Speaker, I thank the Member for this suggestion. In fact, what MOM intends to do is to, on the one hand, take firmer action against the "double weak" employers and, at the same time, exactly as mentioned by the Member, to profile companies that are adopting the more progressive, not just fair, but progressive employment practices. We do intend to conduct a series of what we call "Learning Journeys", so that the agencies, companies from the same industry, can learn from the progressive practices of the good employers, so to speak.”
“Mdm Speaker, the answer is yes. In fact, we believe that by a closer analysis of the Jobs Bank as well as the response rate, we would be able to identify any early signs of a skills deficit. When those are identified, firstly, we will share the information with the sector. We do have more than 20 Sectoral Tripartite Committees set up to look into the manpower development plan, sector by sector. So, those information will be shared with the tripartite partners. At the same time, MOM will also be looking into how we can support those companies that are able to help us to transfer the know-how, the capabilities, to our workforce over the near term. For example, if we have identified that certain areas of skills are in significant deficit, and if we feel those sources of expertise are available out there somewhere in the world, we would like to work with companies to bring those expertise to Singapore and put in place a know-how transfer programme so that, over time, this skills deficit can be narrowed. Page: 25”
“What it sounds like to me is that MOM is beginning to exploit the potential for using the Jobs Bank as an early warning kind of monitoring system so that you can see areas where there may be issues with hiring in future. One of the key challenges the Minister mentioned earlier was skills deficit. Would it be possible, do you foresee using this system to identify where a skills deficit may develop in time, even though there is not a skills deficit currently at this point in time? Secondly, if you are able to accurately develop a system so that it can capture this kind of information for your own use, would you be expecting companies to find this information helpful in the future?”
“Mdm Speaker, as I had mentioned earlier, the strength or weakness of a Singaporean Core in a particular company, on the part of MOM, we will look at it within the context of the industry. For example, if in the industry, the Singaporean Core is "x" percent, but for companies where the Singaporean Core is a lot lower than "x" percent, those will be the ones that we perceive as having a weak Singaporean Core. Secondly, as I had mentioned earlier, before they can apply for an EP under the Fair Consideration Framework (FCF), the company will have to advertise the job and, now, including the salary as well, in our Jobs Bank. After the 14 days, Singaporean job applicants who are interested in those jobs would have applied for the jobs. What we are doing, moving Page: 24 forward, is that for companies with a weak Singaporean Core, we will be asking them questions like, for example, "How many job applications did you receive?" For example, if they do not receive enough job applicants, it could mean that either the jobs are not attractive or maybe there is a shortage of skills in Singapore. That is where, under the Sectoral Manpower Development Plan, we will find ways to strengthen the Singaporean Core. So, that is the answer. Assoc Prof Randolph Tan (Nominated Member): Thank you, Madam. I would like to ask the Minister on the point that he made about being able now to identify situations where there is this "double weak". The Minister mentioned earlier that for companies with a weak Singaporean Core, MOM will monitor them and then they may be required to impose tighter EP hiring restrictions. I agree that that sounds like a very good system.”
“Mdm Speaker, the answer is yes. As I had mentioned earlier, we are now targeting companies with this "double weak": weak in Singaporean Core relative to industry and, at the same time, do not demonstrate a strong enough commitment to give Singaporean workers fair consideration.”
“If they are founded, then obviously, as I had mentioned earlier, this will be companies that we would like to work with closely to ensure that they exercise fairer and more progressive HR policies and practices.”
“Mdm Speaker, the requirement to advertise jobs with the Jobs Bank was introduced in August last year. So, it has been implemented for almost a year. The MOM has looked at the overall picture. We are happy to say that, by and large, most employers do show enough commitment, in terms of giving Singaporean job applicants fair consideration. However, we have noticed that there is a small group of employers, as I had mentioned earlier, whose current Singaporean Core is not as strong, relative to the rest of the industry. Of greater concern to us is that they do not seem to demonstrate enough commitment to fair consideration. For example, some of them, the moment they fulfil the 14 days' commitment, within a week, they will come to MOM to submit their EP applications. So, Page: 23 these are the cases which we wonder whether they have really gone through the proper process because we do not believe that they can clear the queue of applications and interviews all within a few days. Another very common feedback that we receive is that many of the Singaporean PMEs have this feeling that some organisations, because the HR directors are foreigners, as a result, they are giving preferential consideration to foreign PMEs especially those coming from the same countries. MOM takes this seriously. In fact, this is an area I am looking into as well, trying to identify companies where the Directors of HR are foreigners and, at the same time, there is a high concentration of EPs from the same country sources. I am not accusing them of being biased, but I would just like to convince myself whether this concern by many PMEs is founded or unfounded.”
“Hopefully, over time, while with one hand we strengthen the supply of local Singaporean Core through SkillsFuture, at the same time, through the Fair Consideration Framework to strengthen the demand for a Singaporean Core. We believe this is the best way forward.”
“Page: 22 As we move forward, as I had mentioned earlier, we do want to strengthen the Singaporean Core to ensure that all sectors of the economy can sustain growth into the future. Therefore, whatever measures that we introduce, we must bear in mind, firstly, it must not weaken our competitiveness so that we can continue to create enough good paying jobs; secondly, continue to strengthen the capability, the skill profile of our local workforce so that we do not have the structural unemployment challenge. In other words, as we move forward, we are identifying, in particular, two target groups. The first would be companies with a weak Singaporean Core relative to the rest of the industry. As I had mentioned earlier, for this type of companies, I have no choice but to make the employment of EP holders for these companies more difficult. Because if they have a weak Singaporean Core relative to the rest of industry, and at the same time, they do not demonstrate stronger commitment towards fairer consideration, I would have no choice but to make the process more difficult until they are prepared to work together with us to find ways to strengthen the Singaporean Core. There is another consideration. We noticed that in some sectors, the overall Singaporean Core is relatively weaker than in other sectors. For those sectors, MOM will work very closely with the relevant economic agencies to understand better why is it that for these sectors, the Singaporean Core, on the whole, is relatively weaker than the other sectors. We will work with the economic agencies to see what more can we do under the SkillsFuture initiative led by Deputy Prime Minister Tharman to enhance the skills upgrading of the manpower, sector by sector.”
“Mdm Speaker, I was at Geneva last month to attend the International Labour Organization Conference. The Director-General of the ILO Mr Guy Ryder hosted a dinner for the manpower representatives of the G20 countries. We are not a G20 country but I was invited because Singapore is an observing country for this year's G20 Meeting to be held in Turkey. The manpower representatives from these countries discussed the challenges faced in the areas of jobs and employment. My conclusion is that countries all over the world, including the G20 countries, the more developed countries, will all face three challenges. Firstly, jobs deficit – not enough jobs in many countries, leading to high unemployment, including youth unemployment. Secondly, skills deficit – not enough skills in the workforce, leading to structural unemployment; structural mismatch, again in many countries. Last but not least, quality deficit – jobs are being created but not of good enough quality; as a result, many PMEs are being under-employed. These are the three key challenges facing all countries, including Singapore. I would say that if you look at today's situation, we are doing much better, compared to many other countries. We do not have a severe youth unemployment challenge. Unemployment rate among our PMEs is one of the lowest in the world, at about 2.6% to 2.7%. Under-employment, we have been able to create good paying jobs in sufficient number for our people. For example, if you come to our Jobs Bank, of the 72,000 vacancies I talked about, more than half of them are PMET jobs; in fact, about 50,000 of them. In other words, we do not really have the three deficits as faced by many of these countries.”
“Mdm Speaker, to ensure that companies give fair consideration to Singaporeans when hiring, the Fair Consideration Framework (FCF) and Jobs Bank were introduced. So far, almost 20,000 employers have registered more than 72,000 active job postings with the Jobs Bank, drawing 110,000 local job seekers to register as well. On the whole, it has led to a fairer hiring process and easier access to job opportunities. Notwithstanding this, the Ministry of Manpower (MOM) is making further enhancements to send a clearer and stronger signal about fair consideration for Singaporeans. As announced last week, we are making further refinements to take effect from 1 October 2015. This includes publishing the salary ranges of job vacancies, closer scrutiny of EP applications for companies with a weaker Singaporean Core relative to others in their industry, and more stringent quality assessment of EP and S Pass applicants. For example, companies with weaker Singaporean Core will be required to provide additional information, such as the number of applications from Singaporeans, how many were shortlisted, and the interview outcomes. We may also require some of them – what I call the "double weak", weak Singaporean Core and weak commitment to fair consideration for Singaporeans – to commit to plans to strengthen their Singaporean Core. Working together in partnership with the industry, agencies and the Labour Movement, our four core priorities are (a) to strengthen our competitiveness and sustainability, (b) by becoming more manpower lean, (c) with a stronger Singaporean core, and (e) better quality foreign manpower. These are important priorities as we reposition our economy for future growth.”
“The Max Talent place-and-train programme was well-received by professionals, managers and executives (PMEs) and small and medium enterprises (SMEs). From its inception in April 2012, the programme successfully placed a total of 1,000 PMEs in 954 SMEs across various industries, such as retail, education, marine engineering and logistics. As part of the programme, newly hired PMEs undertook the three-day Talent Workshop to equip them with the skills and knowledge that are essential to working in SMEs. And SMEs were provided with assistance to adopt the practices in the Talent Resource Kit to hire, manage and retain PMEs. About 88% of the 1,000 PMEs remained employed in the SMEs for six months and above, after being placed by the programme. Of the PMEs who left the SME within six months, personal reasons were the most commonly cited factor. In March this year, we introduced "P-Max", which builds on Max Talent, with two new enhancements. First, we will introduce a new SME Workshop for SME supervisors. The SME Workshop will support SMEs in adopting progressive human resource practices and strengthen the capabilities of SME supervisors in talent management and retention. Second, we will enhance the PME Workshop for newly hired PMEs. The enhanced PME Workshop will better cover topics, such as goal-setting, managing workplace relationships and performance management. Taken together, this will help more SMEs with their recruitment process and human resource capabilities and help place more PMEs in SMEs. We will work towards matching 3,000 professionals, managers, executives and technicians with SME jobs over a three-year period.”
“The Singapore Workforce Development Agency (WDA) set up CaliberLink in December 2011 to provide training advisory and employment assistance for local professionals, managers and executives (PMEs). CaliberLink provides career coaching for PMEs, workshops to help them improve their job search skills, as well as recruitment and networking events to connect PMEs with hiring employers. Today, these services for PMEs are available at our five WDA Career Centres and the Employment and Employability Institute (e2i). More than 26,0001 PMEs have been assisted through our training and career coaching services, networking events, workshops and other services. More than 13,000 PMEs2 found employment after receiving assistance. The Jobs Bank, launched in July 2014, was intended to make job opportunities more transparent to Singaporean jobseekers and allow employers to access a larger pool of Singaporean candidates. The Jobs Bank complements the assistance delivered through WDA Career Centres and e2i by giving job-ready PMEs an on-line avenue to search for jobs on their own. There are an average of 60,000 "live" job vacancies available weekly3 on Jobs Bank, with some 30,000 positions offering a monthly salary of at least $5,000. We encourage our PMEs to explore all avenues in their job search, including the Jobs Bank.”
“Fewer residents were laid off in 2014, compared to 2013. Of the 12,930 workers laid off in 2014, 7,240 or 56% were residents. This is lower than their two-thirds representation in the workforce. Data on the retrenchment benefits paid to this group is not available. As the economy restructures, some consolidation and exit of businesses will take place. The Ministry of Manpower, Workforce Development Agency and the tripartite partners stand ready to help locals who have been laid off to reskill and upgrade, to put them in a good position to take on new jobs. The resident long-term unemployment rate, reflecting those who have been unemployed for 25 weeks or more, has been low at 0.6% and is among the lowest globally. Page: 132”
“Similarly, if neighbours suspect that a private property is overcrowded with foreign workers, they should report this to URA. Both HDB and URA will investigate and take up enforcement actions as appropriate. MOM will also hold the errant employers who allowed their foreign workers to be housed in such conditions to account.”
“Property owners who wish to rent out their units or rooms to foreign workers are subject to guidelines and rules issued by the Urban Redevelopment Authority (URA) and Housing and Development Board (HDB) for the renting of private properties and HDB flats respectively. These include the maximum allowable occupancy by tenants in each unit. In addition, requirements set by agencies, for example, the Singapore Civil Defence Force (SCDF)'s fire safety standards which, amongst others, prohibit illegal partitioning of units, must continue to be complied with by the owners and tenants of rented premises. Correspondingly, the Ministry of Manpower (MOM)'s Employment of Foreign Manpower (Work Passes) Regulations requires employers to ensure that their Work Permit holders are housed in accommodation that meets the rules set by various agencies. Page: 131 Agencies have regulatory powers to enter units for inspections or investigations where they were previously denied entry. For example, the recent amendments to the Housing and Development Act have increased the powers of investigation for HDB officers and allow them to enter premises, if necessary, with a search warrant. Similarly, public officers from agencies like SCDF, the National Environment Agency and MOM are also empowered to enter premises for the purposes of conducting an inspection under specific circumstances. HDB investigates and takes action for cases that have infringed HDB’s rules for renting out the whole flat or rooms. However, HDB does not have statistics on cases involving foreign workers. Our agencies will continue their concerted enforcement efforts. Residents who suspect that their neighbouring units are housing more than the allowed numbers of subtenants should make a report to HDB.”
“Ultimately, SEPs must take personal responsibility for their retirement planning and make regular contributions to their CPF accounts if they wish to have enough in CPF for their basic retirement needs.”
“In addition, CPF Board has recently introduced the Earn-and-Save Scheme to the real estate industry. Under this scheme, SEPs can authorise their companies to deduct MediSave contributions from their commissions. With effect from 1 January this year, CPF contribution rates to the MediSave account were increased by one percentage point. The higher CPF contributions will go towards helping all CPF members, including SEPs, meet their ongoing healthcare needs, including paying for MediShield Life premiums. In addition, with effect from 1 January 2016, the Government will pay an additional interest of 1% on the first $30,000 of CPF balances for members aged 55 and above. This will be on top of the existing 1% extra interest on the first $60,000 of CPF balances. This means that CPF members aged 55 and above can earn up to 6% interest in total on their CPF savings. Page: 130 The Government will also provide substantial MediShield Life premium subsidies to eligible Singaporeans. These include Premium Subsidies for the lower- to middle-income, Pioneer Generation Subsidies, and Transitional Subsidies to phase in the shift to MediShield Life. For those who are in financial need and are unable to pay their share of premiums even after subsidies and MediSave, the Government will provide Additional Premium Support, to help them pay for their MediShield Life premiums. As SEPs are not required by law to contribute to the Ordinary Account or Special Account, they may not have much in their CPF for retirement. CPF members who are SEPs throughout their working lives may have to rely on family or other avenues, such as monetising their housing, if they need a source of income in retirement.”
“Mr Ang has suggested introducing a scheme, similar to the Temporary Employment Credit (TEC), to top up the CPF accounts of self-employed persons (SEPs) who make voluntary contributions to their Central Provident Fund (CPF). Today, under the Workfare Income Supplement (WIS) scheme, the Government already tops up the MediSave account of SEPs who make MediSave contributions. Such WIS payouts are limited to SEPs and employees with incomes below $1,900, or about the bottom 30% of the working population. SEPs are also given incentives to make voluntary contributions to their CPF accounts through a tax relief on their contributions. Mr Ang has asked whether the CPF savings of SEPs are sufficient to meet their retirement and healthcare needs. Today, SEPs are only required to contribute to their MediSave accounts to save for their healthcare needs. The median MediSave balance of SEPs1 was $21,700 in 2014, compared to $14,300 five years ago. This is still lower than the median MediSave balance of employees, which was $27,700 in 2014. Making sure SEPs comply with mandatory contributions to their CPF MediSave accounts has been challenging. CPF Board reaches out to SEPs through mailers and road shows to encourage them to make regular MediSave contributions. CPF Board also facilitates arrangements for those who wish to make their MediSave contributions via instalments and has partnered several licensing authorities to ensure that their licensees contribute to MediSave. These efforts are complemented by industry or company-led initiatives, such as the Drive-and-Save Scheme by the National Taxi Association and the Serve-and-Save Scheme by Woodlands Transport Services, where the companies make co-contributions to their SEPs' MediSave.”
“The Silver Support Scheme aims to supplement the retirement incomes of the bottom 20% to 30% of elderly Singaporeans. As the scheme is for Singaporeans aged 65 and above, many could have retired, so their wages today would not be meaningful in determining eligibility. To ensure that assistance goes to those with lesser means, the Government will, therefore, look at lifetime wages earned before their retirement, together with the level of household support they have and the type of housing they live in. For lifetime wages specifically, we will look at the individual’s total CPF contributions accumulated over his or her working life as a proxy and consider those with lower total CPF contributions before they reached 55. We will not look at CPF contributions after 55 so that Singaporeans are not discouraged from continuing to work in their later years. We are aiming to implement the scheme around the first quarter of 2016, and will provide further details closer to implementation.”
“All errant owners or operators of overcrowded properties and negligent employers uncovered as a result of these inspections are being taken to task. Agencies will continue to take a targeted, intel-driven approach to prioritise inspections. Beyond enforcement, we are also seeking to raise public awareness so as to change behaviour on the ground. For instance, public notices will be placed around Geylang to remind foreign workers and the public of URA’s rules. MOM will also be sending advisory letters to employers, especially those whose workers stay in Geylang to remind them to ensure that their workers' housing complies with the relevant rules. We urge all relevant parties to be vigilant to ensure that they are not in violation of the law. In particular, homeowners should regularly check their residential properties and employers should check their workers' accommodation to ensure compliance with existing rules and regulations. Anyone with information on overcrowded premises should contact the authorities so that appropriate investigations and enforcement actions can be taken.”
“Private residential properties, including those in Geylang, are covered by existing rules that regulate the rental of properties whether to locals or foreigners. This is to safeguard the well-being of tenants and reduce overcrowding in the neighbourhoods. These rules include standards pertaining to maximum occupancy, fire safety as well as illegal subletting and conversion of premises. The Government takes a serious view of persons who breach these rules. For example, under the Planning Act, persons who house more than eight tenants in private residential properties can be fined up to $200,000. Under the Fire Safety Act, owners who make unauthorised changes that affect the fire safety at their premises, such as illegal partitions, may also be fined up to $200,000, jailed up to two years, or both. Page: 121 Correspondingly, the Employment of Foreign Manpower Act (EFMA) requires employers to ensure that their workers are housed in conditions that comply with the relevant agencies’ rules. Employers who neglect this would have violated Work Pass conditions and are subject to a maximum penalty of $10,000 or 12 months' imprisonment per offence and may be banned from hiring foreign workers. Agencies actively enforce these rules, and special attention is paid to higher risk areas, such as Geylang. Public officers are empowered to enter premises under specific circumstances for the purposes of conducting an inspection. The Ministry of Manpower (MOM), Singapore Civil Defence Force, Singapore Police Force and the Urban Redevelopment Authority (URA) regularly conduct joint enforcement and this can be stepped up when necessary. For instance, over the past six months, agencies have systematically inspected more than 600 units known to be housing foreign workers in Geylang.”
“Employment Pass (EP) and S Pass applicants are required to declare their qualifications and working experience in their applications. The Ministry of Manpower (MOM) assesses each application based on a combination of factors including qualifications, working experience and salary. Even though academic qualifications are not the sole determining factor for the granting of an EP or S Pass, it is, certainly, an important part of the assessment. Employers have the primary responsibility to ensure the authenticity and quality of the academic qualifications of the foreigners they wish to hire. As an additional safeguard, MOM conducts additional checks and verifications for applications submitted by a majority of the employers. To detect forged qualifications, MOM conducts internal database checks, as well as external checks through third-party screening agencies, direct verifications with the issuing institutions, and by requiring the employer to show proof that they have verified that the submitted qualifications are genuine. Page: 118 Those who are found to have submitted forged documents or false particulars in a deliberate attempt to mislead the Ministry are dealt with firmly. They may be fined up to $20,000 and or imprisoned for up to two years. They will also be barred from working in Singapore. As for qualifications obtained from an unaccredited institution that does not ensure that its students are properly qualified, commonly known as qualifications from "degree mills", MOM conducts 100% checks and disregards these qualifications completely. They will have to meet more stringent criteria in terms of experience and salary in order to qualify for EP or S Pass.”