Ng Eng Hen
Singapore
“I think we try to keep this virtuous state of affairs as long as we can to make sure that we can invest steadily. Year-to-year fluctuations would occur, whether it is economic, not so much in COVID-19, but remember the Global Financial Crisis? Everybody needs to take a haircut. If you have to take a haircut, you have to take a haircut.”
“Mr Chairman, as the World around us becomes more unpredictable and changes, the more we need to keep the strongest commitment to strengthen our own defences and, if needed, we must be willing to do more. Singapore celebrates 60 years of Independence this year.”
“MINDEF will continue to work with partners to encourage Singaporeans to raise their digital literacy, develop and maintain good cybersecurity habits, protect sensitive data and guard against scams, fake news and disinformation so as to make the digital domain a safer and more secure space.”
“The Singapore Armed Forces (SAF) conducts regular mobilisation exercises (MOBEX) of our National Service (NS) forces. In a silent mobilisation, NSmen are notified through their personal contact numbers. Open mobilisations include the broadcast of unit code-words through mass media.”
“In 2020, the Ministry of Defence replied to a Parliamentary Question on this matter that the relocation of Paya Lebar Air Base (PLAB) would likely occur around 2030 or beyond, after Changi Air Base and Tengah Air Base have been expanded to house the existing assets at PLAB.”
“When incidents or near-misses happen, as it did where one Hunter armoured fighting vehicle rear-ended another during Exercise Wallaby in Australia, thorough investigations are conducted and lessons learnt shared across the units.”
The complete record
Every one of 2,266 lines we hold for Ng Eng Hen, in date order, each linked to its source. Free to read, in full, without an account. Page 31 of 46.
“The Senior Minister of State for Home Affairs (Assoc. Prof. Ho Peng Kee) (for the Deputy Prime Minister and Minister for Home Affairs): Sir, may I take Question Nos. 8 and 9 together as they are related?”
“Sir, the Member is quite right. It is a theoretical possibility, although most families who have enough in their CPF and above the Minimum Sum are not the ones who need the money to fund their children's education. The problem is really someone in between who does not have enough but feels that he really wants his child to have higher education. As I said, there are enough financial schemes that they have access to. The CPF was really constructed primarily for retirement needs. When I say "retirement", it also means housing, medical as well as to ensure that there is enough to last them for their retirement. I do not think it will be wise for us to liberalise and allow it for educational purposes. I think that is the crux of the policy. CITIZENSHIP STATUS OF FOREIGN SPOUSES 8. Ms Ellen Lee asked the Deputy Prime Minister and Minister for Home Affairs (a) why newly married foreign spouses of Singapore citizens or permanent residents are only granted Social Visit Passes initially and not Long Term Social Visit Passes or permanent residence to remain in Singapore indefinitely; (b) how many extensions of the Social Visit Pass will be granted in a year and what is the duration of each extension; (c) if there is a quota on such passes issued in a year; and (d) in the past two years, how many foreign spouses have successfully obtained Long Term Social Visit Passes and on what considerations. 9. Dr Lam Pin Min asked the Deputy Prime Minister and Minister for Home Affairs (a) over the last five years, how many foreign spouses have (i) converted to Singapore citizenship; (ii) converted to permanent residence; (iii) remained on Long Term or Short Term Social Visit Passes; and (b) what are the reasons for not converting to Singapore citizenship.”
“Sir, I do not know enough about financial access for private institutions to state categorically whether access is adequate or not. I think there are sufficient avenues for taking personal loans. This is not something that I can intelligently comment on. The real issue is whether we should expand and allow more students to draw from their parents' accounts. I am sure there are very good reasons for that. Education is an investment and when the students get their university degrees, they will repay their parents. As I said, I do not argue with the positive aspects of having a high education. Our current challenge is an ageing population and smaller family sizes. In fact, the CPF Board and the Ministry of Manpower are actually the last gate. I am sure if the scheme is liberalised, most parents would, because they are good parents. I would rather act as that very firm gate-keeper, so that the parents' CPF funds are not depleted.”
“Mr Speaker, Sir, the primary objective of CPF is to help members save enough for their retirement needs. As all of us know, Singapore has a rapidly ageing population. I will give some numbers to underscore that. The proportion of Singaporeans aged 65 and above is expected to grow from 8% in 2005 to 19% in 2030; roughly, 1 in 5 by 2030 will be above 65. Retirement and healthcare needs will therefore correspondingly increase. However, only about 40% of current active CPF members turning 55 are able to meet their CPF Minimum Sum. So I think our priority should be to help members set aside more CPF savings in the future, instead of allowing withdrawals for expanded purposes. Mr Zaqy asked whether the CPF Education Scheme could be further liberalised. This particular scheme was introduced in 1989 and was a concession for the use of CPF monies and intentionally limited to only full-time local tertiary education courses at approved publicly funded tertiary institutions, because these are heavily subsidised by the Government. We have allowed it and we will continue to allow it. But even then, 13% of students who had borrowed from their parents' CPF accounts for tertiary education have not been able to pay the monies back despite CPF Board's enforcement efforts. So, to better prepare for the needs of an ageing population, we should not extend the use of CPF for more educational purposes. There are other existing avenues through which students can obtain financial assistance if they are needed.”
“The Ministry initially rejected one application as the union had objected on the basis that the proposal was unfavourable to the workers. In response to the union’s objection, the company reviewed the proposal and made improvements, and the application was later approved by MOM with the support of the unions. In relation to the second type of exemption which allows companies to implement flexible work schedules, approvals are guided by a set of Tripartite Guidelines, which were formulated by the Ministry in consultation with the Tripartite partners. In processing each application, the Ministry also consults a tripartite panel on the company’s proposals and seeks the agreement of the tripartite partners. So far, one application to implement a flexible work schedule has been rejected on the basis that the employees of the company did not support the scheme. Of the 10 applications approved, nine had profit sharing incentives built into their schemes. The remaining organisation is a non-profit organisation, which offers staff participating in the scheme fixed and variable bonus payments. Feedback on companies which have implemented flexible work schedules has been positive, and the Ministry has not received any complaints from workers regarding these schemes. GROWTH OF VEHICULAR OWNERSHIP (Figures) 8. Dr Lim Wee Kiak asked the Minister for Transport (a) if he can provide a breakdown of the growth of vehicular ownership in the North East and North West region of Singapore over the past five years compared to the overall vehicular growth; and (b) what was the rate of growth of roads in the different regions of Singapore during the past five years.”
“The first type of exemption, which is granted under section 41A(1), allows companies to provide for working hours that differ from what is specified in the Act. In 2005 and 2006, a total of 280 employers were granted such exemptions, for a maximum period of 2 years. The second type of exemption, which is granted under section 41A(2), allows companies which experience high volatility or seasonal changes in the volume of work to introduce “flexible work schedules”, by instituting customised work schedules with calibrated payment terms for overtime work and work on public holidays and rest days. In 2005 and 2006, 10 employers were granted such exemptions, also for a maximum period of two years. In both categories, the companies are required to seek renewal if they wish to continue with the exemption beyond the two year period. For the first type of exemption, companies have to show that they have obtained the agreement of their employees to the proposed working hours, or the union if the company is unionised. The Ministry conducts a physical inspection on the company and interviews employees concerned to ensure that the overtime work is voluntary. In granting approvals, the Ministry also takes into consideration the track record of the company concerned in relation to their employment practices, including their safety and health practices. In relation to this type of exemption, 27 applications were rejected in 2005 and 2006. Most of the rejections were on the basis that the Ministry detected weaknesses in their employment and safety practices, such as failing to provide the statutory employment benefits or adequate safety measures.”
“Our labour surveys categorise unemployed persons based on their last job. Based on this, as at June 2006, the number of resident unemployed Professionals, Managers, Executives and Technicians (PMETs) aged 15 and over was 25,000 or 2.9 % of the PMET workforce. This is 15% lower than the 29,400 recorded at June 2004. The distribution of unemployed PMETs broadly reflects the share of employed PMETs by sectors - 14% were previously from the manufacturing sector, 6% from the construction sector and 79% from the services sector. This data does not suggest any sector where re-employment is particularly more difficult. To assist PMETS, WDA launched the Professionals Conversion Programme (PCP) in March 2007. This programme provides PMETs with training and career opportunities to help them find jobs in growth sectors such as Digital Media, Service and Culinary Management, Retail Management and Aerospace. EMPLOYMENT ACT (Exemptions under section 41A) 7. Ms Sylvia Lim asked the Minister for Manpower if he will provide details of the operation of section 41A of the Employment Act, particularly (a) of the 280 and 10 exemptions granted respectively to employers in non-volatile and volatile businesses in 2005-2006, how many of these applications were supported by profit-sharing undertakings and how many of these undertakings were realised; (b) how many applications were rejected by the Commissioner for Labour and on what grounds; (c) how many applications had union objections recorded and how many exemptions were granted despite union objections. Dr Ng Eng Hen: There are two broad types of exemptions granted under section 41A of the Employment Act.”
“The Work Holiday Programme, or WHP, will enable young students and graduates, between 17 and 30 years old, to experience living and working in Singapore for up to 6 months. This initiative is aimed at growing the global mindshare of Singapore as an attractive talent destination. These students and graduates are a potentially rich source of talent for our workforce and we should target them early. More and more of such well-qualified young people are travelling and living abroad to gain exposure. Our own young people do the same. A positive live-and-work experience in Singapore could encourage these foreign graduates and students to work here upon graduation, or at a later stage in their careers. Countries such as Australia, UK and US already run similar programmes for young people. Since the WHP is a new initiative, we will start with students and graduates from universities in Australia, France, Germany, Hong Kong, Japan, New Zealand, the United Kingdom and the United States, and there will be 2,000 places for them. These locations are where our young people have traditionally gone for overseas studies and for travel. We will review the progress and make refinements to the programme over time. NEW FOREIGN WORKER DORMITORIES (Location near industrial areas) 38. Mr Cedric Foo Chee Keng asked the Minister for National Development if more new foreign worker dormitories can be located nearer to industrial areas.”
“To ensure that older workers stay employed longer, it will require the concerted efforts of workers supported by unions, employers and the Government. Workers must remain productive through skills upgrading or be willing to take on different jobs. Companies should recognise the global shortage of skilled labour and change their work processes to extend the employability of older workers. They should also develop systems to re-deploy older workers when they reach retirement. The Government will assist workers by making training more accessible and affordable. Initiatives such as the ADVANTAGE! Scheme provide funding and consultancy expertise to help companies re-engineer their work processes. The Tripartite Committee headed by my Minister of State Gan Kim Yong will continue its work for another five years including monitoring the progress made in implementing such initiatives to meet the medium term target of achieving an employment rate of 65% for residents aged 55 to 64. ENABLING MASTERPLAN FOR THE DISABILITY SECTOR AND OPEN DOOR FUND/ENABLE FUND (Update on progress and implementation) 32. Ms Denise Phua Lay Peng asked the Minister for Community Development, Youth and Sports (a) if he can give an update on the progress on the list of recommendations proposed in the Enabling Masterplan for the Disability Sector submitted this year; and (b) whether an annual update can be made to the House on such progress. 33. Dr Fatimah Lateef asked the Minister for Community Development, Youth and Sports since the implementation of the Open Door Fund/Enable Fund in July 2006 where companies are encouraged to employ persons with disabilities, how many companies have qualified or tapped on the Fund.”
“Supposing we have information that someone might be engaging in suspicious activities, it may be hard to prove. They went through due process, they applied for the work permit, but, based on that information, I might not want to give it to that person. I can be subjected, if we do not have this rule that the issuance of the revocation can be subjected to judicial review. There are other circumstances. But this is not meant for frivolous use. There are specific aspects which we find that this is useful. With that, Madam, let me thank Members again for their comments. Question put, and agreed to. Bill accordingly read a Second time and committed to a Committee of the whole House. The House immediately resolved itself into a Committee on the Bill. - [Dr Ng Eng Hen]. Bill considered in Committee; reported without amendment; read a Third time and passed. REMUNERATION OF SPEAKER 5.50 pm”
“That is basically just to increase productivity, with the caveat that safety of the foreign worker is protected and that the foreign worker agrees to it himself. So, yes, we have liberalised it. Let me now touch on the points which Prof. Thio Li-ann mentioned. Let me first thank Prof. Thio for that wonderful dissertation. That was a very useful lesson in legalities, and I was quite thankful I did not take up law. Medicine is much simpler - a patient is well, not well, alive. But it was a very useful thesis on how complex it is, and I take her point: how do we want to craft our legislation in this House, the Bills that we want to enact, how much discretion, what should be under judicial review, how much powers do we give, etc. These are weighty things which shape our society. First, let me assure Prof. Thio that the Controller will not withhold a work permit for someone because he does not like the colour of the hair. I have not, but, if you do know of any case, please let me know and I will act upon it, and subject to your review. But the purpose for excluding certain aspects from judicial review has its reasons. And, as Prof. Thio rightly pointed out, this Act is not the only one; the Immigration Act is an example of one where we have to protect certain national interests. Prof. Thio has asked - I stand corrected but this is what I understood it - what can be excluded from judicial review. Our intention was that the Minister's and Controller's decisions relating to the issuance, revocation and suspension of work passes are excluded from judicial review in this scope. The actions outside the scope of section 7(6) are still subject to review, and that due process has been observed can be subjected to it. The reasons for this are obvious.”
“I want to make sure, and I have asked my staff, "Are you comfortable? Have you benchmarked yourself with the police and other people?" Indeed, we are not alone, in terms of enforcement agencies who have this power. There are other agencies who also have powers of arrest without warrant. Customs officers, you know, but IRAS officers too. IRAS officers are able to arrest without warrant but, of course, it is done by SPF or Immigration officers for persons caught leaving Singapore without paying outstanding tax payments. Yes, we are concerned and, therefore, we want them to be properly trained, so let me assure Ms Lee Bee Wah about that. Ms Lee Bee Wah has also said that the penalties of $15,000 and 12 months' jail are too harsh. Let me just clarify that it is not imposed on top of the existing penalty. Basically, we just separated the levy restitution and, yes, we have stiffened that with a $15,000 fine and 12 months' jail, but, as I benchmark with other countries, as I have mentioned, it is not overly harsh. Ms Lee also asked why we need to return invalid work passes. The main reason is so that they would not be used for fraudulent purposes. The work pass has a premium in the market. Even if you disfigure it, people can still say that, "This is a work pass." So, that is the main purpose. It is a practical one. Ms Lee has asked whether MOM allows work permits to be used for workers in the construction sector to be used more generically. I have liberalised it. Previously, they were only allowed to work in one worksite. We have, firstly, liberalised that to say that they can work in any worksite. Secondly, MOM has liberalised it to say that, with the workers' consent, they can work for more than one employer.”
“Let me just state, as some Members have noted, that under the Immigration Act - this is not new - MOM Employment Inspectors are already empowered to arrest without warrant local employers for EP offences. We can already do so for Employment Pass offences. But that was because it was under the Immigration Act. The Immigration Act governs the Employment Pass whereas the S Pass, Work Pass are under the EFWA. Therefore, we have consolidated them. We have just broadened and rationalised this. This is not something new. But, in effect, yes, she is right. We can also arrest local employers who commit offences for Work Pass and S Passes. There were some concerns that now that we are given these enhanced powers, she conjured up images of offenders being handcuffed and then found out to be wrong. That can happen, and I would say that we are also concerned about this. We deliberated long enough whether actually we wanted these powers. The issue is not whether he is senior or whether he is authorised. The issue is training. I want to assure Ms Lee Bee Wah that MOM too is concerned. Therefore, for checks and balances, we have harmonised our procedures with the Criminal Procedure Code, which is put in sections 21A, B and C. But, more importantly, our employment inspectorate officers are also trained to discharge these new powers professionally. In other words, we are not Dirty Harry, running around and just handcuffing people. That is not the idea. We want to be bound by SOPs and to be fair and judicious in the use of the power of arrest, just as we have under the current Act. To minimise overnight detention, the Act actually provides for the release of arrested persons on bail or personal bond. So I am very mindful of this as Minister.”
“At the end of the day, we will see how effective it is. I agree with Members that this allows us to implement the framework for enforcement is also important. Mdm Halimah asked some questions. First, let me thank her for saying that this is a more coordinated and coherent framework. We agree. We wanted to consolidate the Acts together. Members would know from the statements that the enforcement was in two Acts - the Immigration and Employment of Foreign Workers Acts. It was not only cumbersome but administratively complex sometimes. So we have consolidated them today. She asked for this new definition of "trainee", whether it was meant to liberalise our policy. The answer is obviously not. This is a legislation to tighten up enforcement. The reason is that we are pre-empting, in other words, as employer and employee relationship changes, for example, like the personalised Employment Pass. This is a legislative umbrella to bring all foreign workers into and to apply the framework. So that was the main reason, and is certainly not a liberalisation. In other words, they would still have to comply with our Work Pass rules. But somebody can claim that he is not designated. He is outside the system and, therefore, he is not under this ambit. That particular clause clarifies it. We can dictate what kind of relationship it is and what you are, and then put you under this umbrella. That was the purpose for it. Mr Seah Kian Peng basically agrees with the law and he supported it, and he said the majority will comply. I thank him for his comments. Let me address some points made by Ms Lee Bee Wah, in terms of powers of arrest.”
“Madam, I appreciate comments from Members of this House. First, I thank Members for affirmation of the widespread support for this Bill. Mr Yeo Guat Kwang said he strongly welcomes it, and there are other similar supporting statements that we are moving in the right direction, and MOM appreciates that. If I may address certain issues directly. Mr Yeo, and some other Members, asked whether this Bill does, through perception, give the impression that we are protecting foreign workers more than local workers. The answer is, of course, no. This is not the only Act that provides protection for our citizens. We have the Employment Act and other measures as well, in terms of the Workfare system, etc. So it should not be seen narrowly in that sense. Mr Yeo particularly welcomed the mandatory one-month jail for repeat offences and asked why similar offences of fraud or deception did not have such onerous penalties. The penalties are never cast in stone. We review them from time to time to see whether they are sensible or not. If you take what Ms Lee Bee Wah said, in fact, she responded on the opposite end, that it was too harsh. So there is a balance to be struck. But since I touch on the subject, let me just say that the penalties are never crafted de novo. We have to take reference from what the previous penalties were as well as in reference to other countries. So are our penalties harsher, which is a point asked by Ms Lee Bee Wah? The answer is no. For example, the first conviction is a fine of up to $15,000 or 12 months' imprisonment. For Taiwan, the penalty is three years' imprisonment. So it is certainly much harsher. In Malaysia, it has 12 months' imprisonment; in South Korea, it is the same. So there is, if you like, a benchmark.”
“They will also be empowered to seize any offensive weapons when making arrests. New sections 21A, 21B and 21C are introduced under clause 21 to prescribe the manner of arrest, the proper use of restraints, and the procedure for the search of arrested persons. These are similar to the provisions in the Criminal Procedure Code. Other amendments This Bill makes other administrative and technical amendments to allow better administration of the Act. Clauses 10, 19 and 21G respectively clarify the application, issuance and renewal procedures for work passes, specify the circumstances and manner in which the employer or the foreign employee should inform MOM of address changes, as well as stipulate the mode of disposal of documents or articles seized during investigations. For consistency, certain provisions that are currently under the Immigration Act are also replicated under this Act, including the exemption of the decisions of the Minister and Controller of Work Passes in relation to the issuance, suspension and revocation of work passes from judicial review. The proposed amendments introduced under this Bill will enhance the regulation and protection of our foreign workforce. It will help minimise the number of illegal workers and their negative social and economic consequences, even as our workforce grows. A well-managed foreign workforce with proper safeguards for their proper deployment, health and well-being is important to ensure that our economic growth is sustainable and virtuous over the long term. Sir, I beg to move. Question proposed. 3.35 pm”
“Clause 22 also creates a new section 22(2) which requires any employer, foreign employee or self-employed foreigner who knows or has reason to believe that an offence of false declaration has been committed, to furnish such information to MOM. For example, MOM investigators have come across cases where either the employer or employee, or both, are aware that false information pertaining to the qualifications held by the worker, or the salary to be paid, is being supplied to MOM as part of the work pass application process. However, because they use the services of a third party to submit the application, they choose to keep quiet about the breach. The new section 22(2) will allow MOM to reduce the number of fraud cases. The obligation on parties with knowledge that a deception is being perpetrated to report such knowledge to the authorities is not a new one. For example, it is an offence under the Bankruptcy Act for a bankrupt to fail to notify the authorities if he is aware that a false claim of debt has been lodged by any person under the bankruptcy. But let me assure the House that MOM has no intention of using this new provision to prosecute minor, technical breaches. Rather, we would want to target those who have committed violations to circumvent our controls. Powers of Employment Inspectors To ensure better enforcement, the investigative powers of the Employment Inspectors are also enhanced. Similar to enforcement powers enjoyed by immigration officers under the Immigration Act, MOM's Employment Inspectors will be empowered under clause 21 to arrest without warrant both local and foreign suspects for offences of greater severity, namely, illegal employment, the active deception offences, as well as the obstruction of MOM's investigations.”
“For multiple charges, any fines imposed would be cumulative, whereas the jail terms may be ordered to run consecutively or concurrently depending on the court's discretion. A mandatory jail term of between one and 12 months will continue to apply to repeat offenders. Any penalties imposed will be over and above the restitution of any levy evaded by such employers. Similarly, clauses 13 and 9 respectively amend sections 10 and 6A to impose the penalty of a maximum fine of $15,000 or imprisonment of up to a year or both on foreigners who are illegally self-employed, and on occupiers who permit a foreigner without a valid work pass to enter and remain at their workplaces. Offences of deception Next, offences of deception. We have made work pass applications user-friendly by allowing submissions through fax, mail or electronically. Work pass criteria are also made known to companies so that they have greater certainty to plan for their manpower needs. Some, knowing these rules, which are now made explicit, may choose to work around the system through fraud. The number of foreigners who obtained their Employment Passes and "S" passes through illegal means, by either using fraudulent documents or over-declaring their actual salaries, has increased by nearly four-fold from 97 cases in 2005 to 374 cases in 2006. These workers have entered our system illegally and, if left unchecked, these abuses will over time undermine the integrity of the entire system. Accordingly, clause 22 increases the penalties for such offences, which include the provision of false information, the illegal trade and alteration of work passes and the possession of forged work passes, to be similar to those for illegal employment, which are a maximum fine of $15,000 or 12 months' imprisonment or both.”
“To better manage the foreign workforce in Singapore, my Ministry has reviewed the Employment of Foreign Workers Act, or EFWA. This Bill amends the EFWA to increase the penalties for selected offences, introduce new offences and augment the powers of Employment Inspectors to facilitate enforcement efforts. We will also take this opportunity to rationalise the legislative authority for all work passes. Currently, Work Permits and S-passes are regulated through a different statute from the Employment Passes. This Bill consolidates the legislative authority for all work passes under the EFWA, and renames it to the Employment of Foreign Manpower Act, or EFMA, to reflect its broader coverage. With the consolidation, the EFMA will be the key legislation governing the employment of foreigners at all levels in Singapore. I will now highlight the significant provisions of the Bill. Illegal employment As I had earlier highlighted, the illegal employment of foreigners remains a problem. Their errant employers evade levy payments, deploy these workers illegally, and ignore conditions imposed to protect their well-being. The number of illegal foreign workers arrested has increased from about 2,148 in 1995 to 2,868 in 2006. Currently, the penalties for illegal employment and levy evasion are bundled, ie, a minimum fine equivalent to 24 months of the foreign workers' levy and a maximum fine equivalent to 48 months of levy or imprisonment of up to a year or both. Clause 8 of the Bill amends section 5 and introduces stiffer penalties specifically for the illegal employment of foreigners - there will be now a maximum fine of $15,000 or imprisonment of up to a year or both, for each case of illegal employment.”
“Employers in Singapore who fall prey to the temptation of cheap labour in order to make a quick profit, can exacerbate this problem of illegal employment. As our economy grows, we can expect the proportion of foreign workers to increase with labour demands, and, with it, the temptation to illegally employ foreign workers. Other countries have found that illegal employment can escalate rapidly, if not nipped in the bud. So Members may have read, for example, that President Bush is pushing through a Bill for tighter border controls but in accepting the problem as a fait accompli, legitimising the status of some 12 million illegal immigrants already in the US. We cannot afford the number, even a fraction of that number. Malaysia, nearer home, is also exploring new laws to strengthen the regulation of its foreign workforce and curb the trafficking of illegal immigrants. For Singapore, as a small island, we need to be vigilant and manage our foreign worker population well, to ensure that it continues to contribute positively to our economy. We need a robust system with effective laws, enforcement and safeguards against the illegal entry and employment of foreign workers and ensure that their well-being is protected. We have therefore in recent years expanded MOM's Employment Inspectorate and built up capabilities in intelligence, operations and investigations, among other areas. This has enabled us to step up enforcement in targeted sectors, such as the food and beverage as well as cleaning sectors, where there were higher incidence of illegal employment. We have also enhanced promotional and outreach efforts to educate employers and workers about employment and immigration regulations.”
“We also carefully identify where foreign workers are needed most and allow them into selected industries. We constantly monitor the labour situation and make fine adjustments to maintain the equilibrium between our economic competitiveness and other social objectives, to enable locals to compete for jobs. For example, we allow more foreign workers in the construction and marine sectors where locals are less inclined to work; we allow a lower proportion in the manufacturing and services-related industries, and almost none in community-based shops and stalls. We have also taken a more liberal approach, with lesser controls, towards foreigners with better qualifications and skills. This is intentional, to attract skilled labour for which there is a global shortage. Workers seeking better employment opportunities abroad is an integral feature of globalisation and benefits both sending and receiving countries. But we should also recognise that there are syndicates which exist in many countries that seek to exploit vulnerable foreign workers. Many exact payment through empty promises of work, only to leave them hapless and stranded in dire straits, especially in those countries which have porous systems or weak enforcement. And from time to time, it happens here and is picked up by the press. This is a continuing problem and discussed in many global forums each year. I recently attended a United Nations High-Level Dialogue on International Migration and Development - that was the name of this meeting - in September 2006, which highlighted the problems of illegal employment and mitigating measures needed to be taken by both the source and receiving countries.”
“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." Rationale Singapore today enjoys strong economic growth accompanied by plentiful new jobs - last year was an all-time high of 176,000 jobs, of which 90,900 went to local residents. The economic prospects continue to look promising. We have a strong investment pipeline with a number of large infrastructural projects being completed over the next few years. Growth is broad-based across all industry sectors, especially finance, info-communications, marine and process industries. As projected, an estimated 450,000 jobs will be available in the next five years if the economy grows between 4.5% and 6.5% each year. These positive outcomes are a result of confidence in our economic and labour policies which are business-responsive and pro-growth. Together with NTUC and employer organisations, we have established practices for a flexible labour market, which includes the judicious use of foreign labour to meet rapidly changing manpower demands. Our labour policies and harmonious industrial climate have resulted in jobs for all. Our employment rate is already one of the highest in the world - 76% of working-age Singaporeans are in employment. The strong labour market will get even tighter, as our economy grows. The number of workers needed to sustain this economic growth has exceeded the local supply. The ability of our companies to access foreign manpower is a comparative advantage. But our foreign worker policy cannot be based on a laissez-faire approach, which will be detrimental to our overall progress. To protect the well-being of foreign workers, we have imposed conditions on employers for their housing, remuneration and medical coverage.”
“It is now handling about 130,000 passengers a month, utilising approximately 60% of its annual handling capacity of 2.7 million passengers. Currently, there are two carriers operating at the Budget Terminal, namely, Tiger Airways and Cebu Pacific Air. The other Low Cost Carriers, like Jetstar Asia and Thai Air Asia, operate from Terminal One. The Civil Aviation Authority of Singapore is constantly speaking with prospective carriers to use the Budget Terminal. Low Cost Carriers currently account for about 15% of total passenger flights at Changi Airport. Passenger traffic by Low Cost Carriers at Changi grew by 47% in 2006. We anticipate traffic in this market segment to carry on growing strongly, in view of the robust demand for budget travel in the region and further liberalisation of market access among ASEAN countries. Hence, we can expect continued strong traffic growth at the Budget Terminal in the coming years. APPENDICES Section Name: WRITTEN ANSWERS TO QUESTIONS Title: EMPLOYMENT PASSES Filename : Chart 1: Cumulative Employment Change, Jan 1998 - Dec 2006 MP Name: Dr Ng Eng Hen”
“Chart 1* shows the employment changes from 1998. The published foreign employment level is 756,000 and a breakdown is not available. In recent years, our foreign employment has grown in tandem with robust economic growth and job creation. The number of work passes has also risen across the different pass types. Foreigners of all nationalities can apply for P, Q and S passes. Depending on the industry sector, R pass holders may be from Malaysia, North Asian Sources, such as Hong Kong, Macau, South Korea and Taiwan, or Non-Traditional Sources including Bangladesh, China, India, Myanmar, Pakistan, Philippines, Sri Lanka and Thailand. The length of stay, and hence period of work pass validity, for P, Q and S pass holders is largely determined by their employers. There is no stipulated maximum employment period. In contrast, there is a cap on the period that R pass holders can work in Singapore. MOM recently extended the maximum period to help employers retain their experienced R-pass holders. Please refer to Table 1. Table 1: Maximum employment periods for R-pass holders Skills Level of R-pass Holders Maximum Employment Period Previous Current (as at 1st April 07) Skilled (R1 pass) 15 years 18 years Unskilled (R2 pass) 4 years 6 years *Cols. 865-866. BUDGET TERMINAL (Utilisation rate) 12. Dr Fatimah Lateef asked the Minister for Transport (a) what is the utilisation rate of the new Budget Terminal; (b) whether his Ministry anticipates more airlines using the Terminal; and (c) what is the expected rate of increase in utilisation over the next three to five years. Mr Raymond Lim Siang Keat: Changi's Budget Terminal was opened in March last year. In the first year of its operations, the Budget Terminal handled about 1.36 million passengers.”
“Based on a sample study conducted in 2004, 98% of members who made nominations had nominated their immediate family as beneficiaries. Table 1 shows the percentages of all CPF members who had not made a nomination from 2001 to 2006. The information for the years prior to 2001 is not available. Table 1: Percentage of CPF members who had not made a nomination (%) 2001 2002 2003 2004 2005 2006 % of members 47 45 44 44 45 46 (Figures are as at December) When no nominations are made, CPF monies will be distributed according to intestacy laws. EMPLOYMENT PASSES (Figures and nationalities) 11. Mr Siew Kum Hong asked the Minister for Manpower for each of the last 10 years (a) how many P1, P2, Q, R and S passes were issued; (b) what were the 20 most common nationalities of each class of work pass holders; and (c) what was the average period of validity for each class of work pass.”
“Kalyani K Mehta asked the Minister for Manpower (a) if he can give a breakdown of the beneficiaries of CPF nominations for the last 10 years according to husband, wife, parents, children, grandchildren, other relatives, eg, siblings, non-relatives, charitable institutions and others; and (b) what percentage of total account-holders did not make a nomination annually from 1997 to 2006.”
“Eighty-one companies in the security sector have been exempted from section 38(5) of the Employment Act. This exemption allows their employees to work more than 72 hours of overtime a month. However, the employees would still not be permitted to work more than 12 hours a day. Typically, the number of overtime hours worked per month for a security guard ranges from 88 to 112 hours. Of the 81 agencies, 21 are additionally exempted from sections 38(8) and 40(3). For such exemptions, MOM has allowed their employees to work more than 12 hours but not exceeding 14 hours in a day. No security guard agencies have been exempted from the requirement to pay 1.5 times the basic hourly rate of pay for overtime hours worked. No exemptions have been granted to companies from the obligation to provide rest breaks in accordance with section 38(1) of the Act. The Act stipulates a break for every six hours of work. If the employee is required to work continuously for a longer period, he may work for eight consecutive hours inclusive of a minimum rest period of 45 minutes. The employer also cannot compel an employee to work the entire week without a rest day. Exemptions from the relevant overtime provisions are renewable upon application. The criteria for renewal are the same as those for the initial application, namely: (i) obtain the consent of employees in extending their overtime hours, (ii) comply with other Employment Act provisions, (iii) have a good track record for maintaining both safety and health as well as employment standards, and (iv) secure the agreement of the unions in the company, if any. BENEFICIARIES OF CPF NOMINATIONS (Figures) 10. Assoc. Prof.”
“(3) Source: Labour Force Survey, MOM (4) Source: Occupational Wage Survey, June 2005, MOM OVERTIME EXEMPTIONS FOR SECURITY GUARD AGENCIES 9. Ms Sylvia Lim asked the Minister for Manpower in light of the overtime exemptions granted by the Commissioner of Labour to certain security guard agencies (a) what is the precise nature of the overtime exemptions, particularly (i) the number of hours of overtime allowed; (ii) the rate of pay; and (iii) impact on rest hours; and (b) whether the time periods of six months to two years for exemptions are liable for extension and, if so, on what grounds are these extensions granted.”
“In Singapore, after consultation with tripartite partners, we have adopted the approach of fulfilling our obligations under this Convention through collective agreements. We issued a Tripartite Declaration in 2002 to reiterate and uphold the principle of equal remuneration for work of equal value and the tripartite partners drafted a precedent clause which affirmed this principle. MOM is working closely with the Industrial Arbitration Court (IAC) and our tripartite partners SNEF and NTUC, to encourage companies and unions to implement the principle of equal remuneration by incorporating this clause in their collective agreements. The principle of equal remuneration is also recognised as a key component of fair employment practices by the Tripartite Alliance for Fair Employment Practices (TAFEP). It has also been incorporated in the Tripartite Guidelines on Fair Employment Practices which was issued by TAFEP on 3rd May 2007. Table: Median Gross Monthly Income of Full-Time Employed Female Residents as a Percentage of Full-Time Employed Male Residents, June 2006 (Exclude NSmen and Contributing Family Workers) Age group Percentage (%) 20 – 29 97.5 30 – 39 86.0 40 – 49 80.0 50 – 59 72.5 60 & Over 68.1 Total 85.7 Source: Labour Force Survey, MOM Notes: 1. Resident refers to Singapore Citizens and Permanent Residents. 2. Gross monthly income refers to the total amount earned from employment. For employees, this would include wages or salaries, allowances, overtime, commission, tips and bonuses, but exclude employers' CPF contribution. For self-employed, it refers to total receipt from sales and services, less the business expenses incurred. 3. Percentage derived from unrounded estimates.”
“The attached table provides the 2006 wage data for men and women in various age groups. In 2006, the median gross monthly income(3) for full-time employed female residents was 86% that of males. Such a pattern is not unique to Singapore. Countries like Norway (85%), Denmark (82%), the United States (76%), Japan (65%) and Canada (64%) also experience a wage disparity between male and female workers. This disparity reflects remuneration based on factors such as experience, skills and qualifications, and not necessarily gender discrimination. In fact, for Singapore, at the start of their careers, within the age group 25 to 29, females actually earned more than males in three major occupational groups, namely, managers (6.4% more), professionals (2.5% more), and sales and service workers (27% more)(4). After this, however, more women tend to leave the workforce earlier or disrupt their careers for family and other reasons. This affects their length of working experience which can account for the lower salaries for females compared to their male peer cohorts. If these women choose to return to the workforce in response to a healthy labour market, we may well see the wage gap widen compared to male workers who have been in the workforce for longer. Singapore ratified the ILO Convention 100 on Equal Remuneration in May 2002. The Convention requires ratifying states to ensure the application of the principle of equal remuneration to all workers by means of either a) national laws or regulations; b) legally established or recognised machinery for wage determination; c) collective agreements between employers and workers; or d) a combination of these various means.”
“Thio Li-ann asked the Minister for Manpower (a) what is the nature of the current wage gap between men and women and what steps are being taken to address this; and (b) what are the measures that have been adopted to give effect to Singapore's international obligations under the International Labour Organisation Convention 100 on equal remuneration.”
“A condition imposed in all work permits requires all employers to house their foreign workers in acceptable accommodation. Such accommodation must meet various statutory requirements including proper land use conditions imposed by the Urban Redevelopment Authority (URA), Housing Development Board (HDB), Jurong Town Corporation or Singapore Land Authority; building structure safety standards by the Building and Construction Authority; fire safety standards by the Singapore Civil Defence Force; environmental health requirements by the National Environment Agency; and drainage sanitary/sewerage system requirements by the Public Utilities Board. Such statutory requirements also apply directly to owners of properties that are let out for occupation by foreign workers. The existing types of foreign worker housing include purpose-built dormitories and approved factory-converted dormitories. Foreign construction workers can, in addition, stay in workers quarters within construction sites and other approved plots of land. Other than non-traditional source workers in the construction industry, foreign workers can also stay in HDB flats or private residential units subject to prevailing guidelines. These guidelines include limits on the number of occupiers per unit, to prevent overcrowding and preserve the residential character of the premises and surroundings. As announced during the Ministry's Committee of Supply Debate, MOM intends to require employers to show that they are able to house their foreign workers in acceptable accommodations, before approving their applications for the foreign workers' work permits. EQUAL REMUNERATION FOR MEN AND WOMEN 8. Prof.”
“MOM regularly publishes labour statistics in compliance with international standards. For example, in our quarterly and annual reports, we provide data on employment, unemployment, wages, retrenchment and job vacancies, etc. This information is reliable as it applies to groups and for that point of time when the information is collected. However, the type of information requested by the member requires data for specific and the same individuals to be collected over a period of time. As these longitudinal studies require more time, effort and resources, MOM does not conduct these studies routinely but periodically, when more detailed data is needed for policy considerations. Examples of such studies include the "Retrenchment and Re-employment 2006" cited by the member which looks at all retrenched workers. MOM will consider the member's suggestion for a study on PMETs. WRITTEN ANSWERS TO QUESTIONS GOVERNMENT OF SINGAPORE INVESTMENT CORPORATION (Remuneration of directors) 1. Ms Sylvia Lim asked the Prime Minister and Minister for Finance (a) whether the board of directors of the Government of Singapore Investment Corporation (GIC) receives remuneration; and (b) if so, what is the amount of remuneration received by each of the directors who holds political office.”
“Mr Liang Eng Hwa asked the Minister for Community Development, Youth and Sports (a) what are the early intervention programmes available to help those at risk of becoming addicted to gambling; (b) what are the numbers of addicted gamblers who are currently under the Community Addictions Management Programme or other schemes offered by Voluntary Welfare Organisations; and (c) whether problem gamblers are also common victims of unlicensed money-lending activities.”
“In 2006, my Ministry received 16,389 claims for workmen's compensation, of which 56% were filed by foreign workers. Two-thirds of the claims involved minor injuries(2). For such cases, the Ministry will, upon being notified of the accident, direct the employer to pay to the injured worker his medical leave wages and medical expenses. Where the injury is more serious, the Ministry will make an assessment of the compensation amount, which is based on the permanent incapacity suffered by the worker. This takes on average about five months, including the time for the injury to sufficiently stabilise and for a medical practitioner to determine the extent of the permanent incapacity. This is an improvement from the seven months in 2005. The shorter time is a result of more efficient processes implemented by MOM, including closer collaboration with the hospitals for the timely submission of the medical reports. Upon receipt of the medical report, MOM will notify the worker of the compensation payable to him within two weeks, a reduction from six weeks in 2005. Last year, four employers were convicted for violations under the Workmen's Compensation Act. Of the four employers, three failed to purchase valid workmen's compensation insurance for their workers, while one employer failed to notify the Ministry of the accident. (2) Minor injuries are defined as those that result in 14 or fewer days of medical leave. PROBLEM GAMBLERS (Intervention programmes) 34.”
“But let me say, Sir, that MHA takes a very serious view of this incident and will take all necessary measures to rectify any problems that may be identified.”
“Ho Peng Kee) (for the Deputy Prime Minister and Minister for Home Affairs): Mr Speaker, Sir, the Police Coast Guard (PCG) plays an important role in safeguarding Singapore's sea borders, patrolling our territorial waters to detect intrusion by terrorists, smuggling of explosives and weapons for terrorist operations, as well as illegal immigrants and smugglers of other contraband items. Whilst operational safety is of utmost importance to the PCG, there are inherent risks involved in maritime operations, such as high winds, strong sea waves and high speed manoeuvring in the night. These risks increase when intercepting and repelling intrusions, as high speeds are normally required, especially when the intruding vessel refuses to stop, or is persistent in trying to evade arrest. The possible presence of other vessels and sea hazards in our waters adds to these risks, especially in the hours of darkness. Therefore, despite the thorough training our PCG officers receive and the use of safety equipment, such as radar and night vision devices on board our PCG boats to facilitate navigation and surveillance, there is a risk of lives being lost in an operation. Sir, with regard to the recent incident on 13th April 2007 where two PCG officers died, the Singapore Police Force is currently conducting investigations into the incident for the Coroner's Inquiry which will be held in due course. It is therefore not appropriate for me to discuss the details of the case at this stage. Separately, the Ministry of Home Affairs will be reviewing the facts and circumstances leading to the incident, to assess if we can create a safer operating environment for PCG officers when performing their duties at sea. The review will cover the anti-intrusion tactics, training and equipment.”
“Mr Speaker, Sir, I agree with Ms Cham that from time to time, the Employment Act would need to be reviewed. But in any review of the Employment Act, we must take a balanced approach to ensure that Singapore remains competitive and that different concerns of the tripartite partners are addressed. Ms Cham has asked for a review of the salary ceiling and for more groups to be covered under this Act. At the same time, employers have fed back to us that other provisions that they think ought to be reviewed as they try to manage rising wage costs would be overtime and medical leave provisions which are applicable to workmen and other employees covered by Part IV of the Act. Eligibility and levels of retrenchment benefits are also another area of concern to employers. In the spirit of tripartism, MOM will consult with workers, unions and employers to determine which provisions of the Employment Act require a review and what changes would be made. POLICE COAST GUARD (Dangers faced in intercepting and repelling intrusions) 13. Ms Sylvia Lim asked the Deputy Prime Minister and Minister for Home Affairs (a) what dangers have Police Coast Guard officers faced in intercepting or repelling intrusions into Singapore waters; and (b) whether there is a need to review the equipment, training or tactics to increase capabilities to meet such dangers. The Senior Minister of State for Home Affairs (Assoc. Prof.”
“Even so, exempted employers can still be prosecuted if they breach these conditions or other relevant aspects under the EA. APPENDICES Section Name: MINISTERIAL STATEMENT Title: CIVIL SERVICE SALARY REVISIONS Filename : Appendixes to Ministerial Statement by the Minister for Defence MP Name: Mr Teo Chee Hean”
“Between January 2005 and December 2006, the Ministry of Manpower (MOM) received 383 complaints against 65 security guard agencies for requiring their employees to work excessive hours or denying them statutory employment benefits such as overtime payment. There are 272 security guard agencies operating in Singapore and feedback from industry indicated that 12 or more-hours working shifts had been traditional practice for many security guards in this industry. In order to raise both the professional and employment standards in the industry, inter-agency efforts were initiated that involved MOM, the Security Industry Regulatory Department of the Singapore Police Force, the Workforce Development Agency, industry associations and the Union of Security Employees. Of the valid claims made by employees of security companies from January 2005 to December 2006, MOM has successfully resolved 83% of them. Claims for outstanding salary and other statutory benefits were successfully recovered from their employers. 10% of cases are pending payment, while in 7% of the cases, the claimant did not pursue the claim. From January 2005 to December 2006, 81 security guard agencies have been granted overtime exemptions by the Commissioner of Labour for periods ranging between 6 months to 2 years. Companies are granted exemption only if the employers meet the following criteria, namely: (i) obtain the consent of employees in extending their overtime hours, (ii) comply with other Employment Act provisions, (iii) have a good track record for maintaining both safety and health as well as employment standards, and (iv) secure the agreement of the unions in the company (if any). These safeguards ensure that the well-being of the employees in such companies are not compromised.”
“He may not see the other needs, but it is a system that works well, that protects the members' funds from what they have used. So I think we should keep to that. We should not try to change it. There is nothing to stop now. The parents can already voluntarily contribute up to a maximum of $24,000 a year to their child's account. They can already do that. And they can choose to use that route, if they want to.”
“We could try to bring in more of those who traditionally are working, eg, the older women, as I pointed out yesterday, or extend those and say, "Let us retire later." But even if you did all that, every year, as I said, you supply 30,000, that is the supply. You could extend it by 40,000 or 50,000, but the economy, if it grows, may need 90,000. So we have judiciously used foreign workers to meet the demand and allow our businesses to grow. And this is the way that we have grown our industries. For example, the aerospace industry. When we wanted to attract and make this a maintenance, repair and overhaul (MRO) hub, we did not have the technicians and we allowed companies to hire as many as 70% or 80% foreign technicians because we did not have that ready supply of technicians. At the same time, we started programmes in the polytechnics so that now they are coming online to take those jobs. That is how we have cleverly, and to our advantage, used this flexible labour market, and I would encourage us to continue to think along those lines and not to see this as a lose-lose proposition, ie, every time we bring in a foreign worker, a Singaporean loses a job. As I pointed out yesterday, our figures show that, in the last five years, every time a foreign worker comes in, three jobs were created for Singaporeans. Mr Ong Kian Min asked about this particular case. I think the policy, that whatever you use from your CPF to purchase a house and when you sell it it goes back to the CPF, is a correct one. It protects the member. He is trying to address a separate problem, when a mother gives the money to the child and he is trying to use the CPF route to do that. My point to him is that the CPF is a big system. It requires many needs.”
“Sir, the numbers we projected were based on, of course, the macro-economic factors which basically suggest that, if our economy grows as in the past for about 4% to 5% till 6.5%, this is the number of jobs that the economy creates. Again, out of those, more than half would be requiring expertise at the professional and technical levels. Dr Teo asked how many of them are low-paying jobs. Usually, it is about a third, a third, a third. In other words, that is the usual structure of the jobs created. Not quite right to say that the majority of them are in the process, maintenance or construction industry. That is not the case. For example, we have said that, over the next three or four years, because there is a stream of big projects coming online, BCA estimates that the annual contract values would go up to about $17 billion, which will require about 30,000 workers to do that. So, that is not accurate. How many jobs are available for Singaporeans? I would reverse the question and ask, "How many Singaporeans are there?" I made the point yesterday that, for our employment rate for those aged 25 to 64, in other words, of all available bodies in that group, 90% are working. And that 10%, for a variety of reasons, may not want to work, be able to work or need to work. If you are well-off, you may choose not to enter the labour force. So we are actually one of the highest rates in the world for workers. And, annually, on average, we can supply about 30,000 workers. If the economy needs 90,000 workers, we will have to make a choice. First of all, we can say we want to increase the productivity of each Singaporean to work as many as two or three workers, then that would solve the problem. Perhaps we could do that, but that is unrealistic.”
“Sir, I agree with Mr Yeo that when MOH withdraws the subsidies for foreign workers, MOM responded by saying that it should be mandatory for employers of foreign workers to purchase some form of medical coverage for their workers. He is right again in pointing out that most big companies have already purchased medical insurance but the small companies with small groups of workers may have problems. This is the very reason why we have tried to facilitate this by requesting for proposals for insurance companies to offer this product and we are facilitating this. So this is one area that we are looking at. For housing, he is right. We are a bit smarter than that. We do not only require you to give us an address. That address allows us to check up and to make sure that there are acceptable conditions. We are calling this for a number of reasons. Some years ago, we launched a requirement that I needed to know where your foreign workers were housed. This was after the SARS epidemic. For control of that group of population, we needed location-specific aspects. So we launched that and we are just extending this. Mrs Josephine Teo asked about whether we are reviewing the Employment Act. We do make regular reviews and I think it makes sense to look at the benefits when work arrangements change. The fundamental change now is, as Members have rightly pointed out, there is an increasing proportion of contract workers, different working relationships, and we have to see how our Employment Act continues to be responsive to them. We may not want to make changes to all benefits, because certain benefits, for example, may apply to certain groups. But we are looking in that direction. Other benefits, eg, sick leave, we may have to review that. So, yes, we are making reviews.”
“After we spent X hundred million of dollars, reduced to a five-day week, extended maternity leave, we are very, very happy to say that we have got 500 more babies last year. So let us evaluate this and see where are the right measures because more of the same may not necessarily give us the results. One of the conclusions, from our ongoing reviews in that committee now, is that for those who are married, they actually produce 2.1 babies. That is the replacement level for those who get married. It has come down from 2.8, but at least they are replacing themselves. It is the larger percentage, as DPM Wong rightly pointed out in his reply, the growing proportion of singlehood and marrying later. So this seems to be two areas that we should focus on. How to make it? If you like a positive experience, marry early and have your first child early. That may yield better results and higher fertility rate. On paternity leave, I have looked at the data and the countries that have introduced it, I think the men will like it, but I am not sure that it will lead to improved fertility rate.”
“I hope that Mr Seah is not too disturbed. But let me put the issue into perspective. My Senior Parliamentary Secretary said actually more than that. The main point was that we have just moved on the pro-maternity package. Many of you in this House were consulted and participated in the stakeholders' group. In fact, I well remember at one meeting where we were discussing the extension of maternity leave. The men, like Mr Seah, were quite for it. But it was the women, who said, "Please do not do too much of it." I looked at them and said, "Why?" They were being very practical. They said, "If you extend it too long, it would affect our employment opportunity." They were being very practical and, therefore, we rolled it out. As the Senior Parliamentary Secretary rightly pointed out, the maternity leave is based on the time required for the mother to recuperate. We extended it from two months to three months, and we said that the last month could be taken over six months if she wanted it. But we must not run away from the idea that there is no cost in that sense. The Government is willing to bear the extra four weeks because we do want to improve the fertility rate and therefore we are willing to pay for this. Even beyond that provision, there is a disruption to businesses and employment prospects. So there is a trade-off. It is not just one sided. Every time we move, we have to consult with businesses to see how, in the longer term, this can be helped. Having said that, there is a committee that is overlooking this issue, chaired by the Deputy Prime Minister Wong Kan Seng, and we discussed these issues. We want to evaluate the results.”
“I think the question has been raised in a parliamentary question before, and I am not going to speak on behalf of the civil service. I am not sure whether the civil service is excluded from applying for the WOW! Fund. I have to check. But, intuitively, I think, not. So if they have schemes, we are quite happy to support.”
“But one of the problems has been that 4% is risk free, there is actually hard to find ex ante a fund that will guarantee more than 4% at this point of time. We will study it, and we will see when we can, at an opportune time, offer options to members. I also want to make a distinction between NII and the CPF. They are different investment stances, different mandates, and they should not be equivalent. For the CPF fund, the interest rate which members enjoy is risk free. Basically, the CPF Board purchases special Singapore Government securities where there are no risks, in other words, no matter how the market does, you are guaranteed 2.5% and 4%.”
“Sir, let me thank Mr Ong for asking four clarifications. He is quite right. We certainly do not want to encourage a mentality where a substantial proportion of CPF members enter into CPFIS. They are punting basically, and they end up with losses. But neither do we, having accepted that we do not want that behaviour, want to put up products which members, with varying degrees of risk tolerance, find it hard to accept. My point was that if you chose the investment yourself and you made losses, it may be a very different reaction if someone, on behalf of you, invests your money. We have allowed the CPFIS scheme which basically allows you to choose, and we have tried to reduce the expense ratios, set the limits, in terms of the criteria, how they perform, and we have gone even the extra step. Mr Ong may be aware that now we are capping the expense ratios, in other words, if you charge above this, you cannot receive CPF monies within the CPFIS. That is quite a hard hurdle. Over time, we may even bring it down to reduce the expense ratios. But beyond reducing expense ratios, there is a market risk, in other words, because you have entered it and you bear the risk. So these are complexities that we have to address. We do want to offer options that may, over the longer term, improve returns compared to 2.5% and 4%. But we will be able to give products that are simple to understand. For example, the Swedish Pension Authority Fund, they started out with a model where they said, "I'll give you a plethora of choices and you choose." And then there was the default scheme. Over a longer period of time, they found that the default scheme did better than what most members did choosing on their own. So we are learning from these experiences.”
“So, for example, our nursing course, many fed back that actually adult learners could learn faster and they may not need that amount of time because of their working experience. So I would also encourage beyond just providing the resources for various partners to see how we can more rapidly transit professionals if they want to start new careers. So I think we are focusing on this. I want to assure Members that we will try to help but it will take us time to build up the programmes, and we can learn as we go along.”