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.”
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“The main purpose of maternity leave is to enable mothers to recover physically from childbirth. Mothers who adopt their child are not entitled to maternity leave as such. However, to affirm our commitment to support families, the Government will reimburse up to four weeks of pay if the adopting mother's employer voluntarily provides her with leave to be with her adopted child. In line with the flexible portion of maternity leave, the Government's reimbursement will only apply if the leave is taken when the adopted child is younger than six months. Sir, our objective is to ensure that there will be a sufficiently large number of Singaporean citizens in succeeding generations to form a viable population core for the country. As such, Members will appreciate that this Bill proposes measures that are targeted specifically at citizen babies. The Bill proposes reimbursements for maternity leave for up to the fourth child, so as to help alleviate the financial outlays faced by couples who choose to have a fourth child. I should add at this point that this package is not meant as a prescription for the number of children that a family should have. Having a child is an intensely personal decision and the choice, we believe, is best left to the family to make. What we wish to do is to help and to support Singaporeans who want to have more children to have more children. At the end of the day, what we all want is that the next generation of young Singaporeans, not just to grow the economy, but really to build the nation and to be our future. Sir, I beg to move. Question proposed.”
“The first child will be eligible for a cash gift of $3,000. The second child will remain eligible for a cash gift of $3,000 as well as a matching Government contribution of up to $6,000 in the child's development account. The third and fourth child will both be eligible for a cash gift of $6,000 as well as a matching Government contribution of up to $12,000 in the child's development account. The upfront cash component will be paid out over two years, instead of the current six years. I wish to inform the House that these changes will be reflected in the Children Development Co-Savings Regulations rather than the Bill itself. Let me now turn to maternity leave. The Minister for Manpower has earlier explained the statutory maternity leave provisions to be included in the Employment Act. So I shall only highlight the salient points in this Bill. The Bill provides for Government reimbursement for the additional weeks of maternity leave for female employees and self-employed women. For the first and second confinements, this will be for the additional four weeks, subject to a cap of $10,000 per confinement. Employers will continue to pay for the first eight weeks. For the third and fourth confinements, Government will pay the full 12 weeks, subject to a cap of $30,000. The additional four weeks of maternity leave can be taken flexibly. For companies that have a six-day work week, the Government will reimburse up to a cap of 24 days. For others with shorter work week, the Government will reimburse the number of days of leave for an equivalent period of four work weeks. The Manpower Ministry will be responsible for the enforcement of leave provisions and the resolution of disputes between employers and employees under this amendment Bill.”
“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. CHILDREN DEVELOPMENT CO-SAVINGS (AMENDMENT) BILL Order for Second Reading read. The Acting Minister for Community Development, Youth and Sports (Dr Vivian Balakrishnan): Mr Deputy Speaker, Sir, I beg to move, "That the Bill be now read a Second time." [Mr Deputy Speaker (Mr S Iswaran) in the Chair] 6.26 pm Sir, despite the introduction of various measures over the years, our total fertility rate (TFR) has dropped to an all-time low of 1.25 in 2003. To fully replace our population, we need a TFR of 2.1. Singapore is not alone in having a low and declining birth rate. Many developed countries also face the same challenge, and the irony is that Singaporeans actually do want to have more children. When polled, most saw a 3-child family as ideal, but many thought that they could only manage two. In fact, more couples are having only one or, in some cases, none at all. Singaporeans have cited several factors for this, and this includes concerns over finances, the lack of time, lack of energy, limited options for the care of the child and sub-optimal worklife balance. Our previous measures such as the extension of eight weeks of paid maternity leave for the third child and the baby bonus for the second and third child sought to address some of these concerns. But the recently unveiled parenthood package addresses the need of Singaporean families even more holistically. Of these measures, I shall only touch on the baby bonus and maternity leave. Sir, at present, the bonus is given to the second and third child. The baby bonus will now be extended to the first and fourth child.”
“And that is why I have said that the Commissioner for Labour will appoint a working committee, which will include union representatives, when they are assessing the applications. I have said specifically what companies need to demonstrate when they apply for an exemption. So it would not be a case where the company says, "I have this. I am going to apply for exemption and expect to be exempted." It is not so. First, the Commissioner for Labour will have to see that indeed that there is a business case, there is volatility in the cycles, there is a lull period and peak period which the company must adjust to. Second, it must ensure that workers' health and safety are protected. Third, as I said, there has to be income stability. This is not just a cost cutting measure. Fourth and, more importantly, the profits gained from the more efficient use of manpower resources will be shared with workers. So we will consult the unions. In fact, the union will be in the committee advising the Commissioner for Labour. And I would encourage workers, if they feel that they will be discriminated against and their interests would not be protected, to join the union and get their union to represent them. I know full well that the union will represent them adequately and eloquently in the working committee that advises the Commissioner. Let me also thank Members for supporting our measures to change the minimum age. Let me first acknowledge that NTUC has been pushing for this for a very long time, and we have acceded. Mdm Halimah now says: can you ratify ILO Convention 138 quickly? My answer is that we will do it expeditiously. Question put, and agreed to. Bill accordingly read a Second time and committed to a Committee of the whole House.”
“In the package, if we introduce paternity leave, it would have actually taken up sizable chunks from what we could provide. And the package already costs $800 million. So there was a finite limit to the resources that we could spend. Members also asked about unmarried mothers. Ms Irene Ng brought this up. Yes, there was a social signal to be sent. This is a marriage and procreation package. Yes, we do empathise with these mothers. Our intention was not to make it harder for them. But this particular package should not be seen as a be-all end-all of all incentives. There is a HOPE scheme which is particularly catered for unmarried mothers or other mothers who have to meet eligible criteria which are fairly beneficial, and there are many other schemes within the Government which they can ascribe to. I agree that we need to send a social signal that in marriage and procreation, we must have agreed that the best environment which children are born into must be a nuclear family. I know that Members do not disagree with that. Let me now touch on aspects related to flexi time. Mr Low Thia Khiang said that he does not see how these schemes help employees. I think the union members have quite eloquently articulated the case that interests of workers need to be protected. I accept that. The worst protection for an employee is for him to lose his job. And just like flexible wages, this ability to maximise resources allows our companies to maximise their manpower. It reduces the need for them to retrench workers, and that surely must be the greatest protection of income stability. Will we protect workers' interest when they apply for exemptions? Yes.”
“For that four-week period, they can devise any combination. It is up to them, but it has to be by mutual consent. So, if she decides that she wants one day a week, spread out I do not know over how long, it is up to them. It has to be done over six months. I suppose there is some mathematical formulation that they have to agree on. Members also spoke about why paternity leave was not introduced. I made some comments following our press conference when announcing these measures. Yes, I did say that it did not reflect society's needs at this point of time. Let me contextualise those remarks. As Dr Amy Khor has said, this is a package and there are practical concerns. In other words, every time we introduce a measure, there is a cost to it and there are trade-offs to be made. Between paternity leave and maternity leave, we would have to cost the paternity leave that would be taken, and the sense was that women need more the period of four weeks to recuperate and bond with their children, and it will be better used. If we had cost paternity leave, we would have had to forgo some other elements within the package. So it is a practical consideration. And we were governed by what is more useful, what will be better made use of, what do people need from the consultation, not as much as we wanted to send a signal. I agree completely that fathers need to share parenthood. I cheer the fathers who are involved with the birth of their children, as it should be. But if there was a trade-off between four weeks of maternity leave and paternity leave - it would not be two weeks of each, it would probably be three weeks of maternity leave versus one week of paternity leave - because we have to cater for more men working and men earning more. It is not quite symmetrical.”
“There is also a self-protection element in terms of employees. I meet many people. I know women who are equally productive at home and at work. And I do not see employers discriminating against them. In fact, they would go out of their way to employ such women because it also makes sense that a woman who can manage a husband and children can also manage businesses well. So I do not think that I get the same sense, as some Members have said, that this increase in four weeks of maternity leave would result in discrimination. I do not get the sense that there is a prevalent practice and I do not think that we should continue to push that as a typical behaviour of employees. I do not get that sense. Yes, obviously we would get isolated incidents of complaints, as we do. In fact, in a labour market that is difficult, the cries that discrimination occur at work are quite rampant. It may or may not be the operating aspect, but this is quite true. So people say they are discriminated because they are older, lack certain skills, whether it is race, education aspect or age. So I would go back to the fundamentals and say, if we have a tight labour market, and if the economy does well, I think discrimination, by and large, usually diminishes. As I have said, our economic growth forecast is 8-9% this year. Jobs would be added and I think the labour market would continue to be tight. Our projection shows there would be a shortage of workers for the jobs that would be created. We also listen beyond Government funding the four extra weeks - Ms Irene Ng has pointed this out - and we have allowed flexibility for these four weeks to be spread out over six months. She asked: what does it mean? Can they come back part-time? The answer is yes, by mutual consent.”
“Companies would listen to moral persuasion, but they are more likely to come on board if they really believe there is a business case of good HR practices and that it makes sense to their business. From that point of view, it is quite instructive that many companies had already adopted family-friendly practices, even without the need for legislation. So, if you take a scan of companies in Singapore, the ones who have the most, if you like, generous benefits in terms of pro-family practices, are also the ones that are most profitable. The MNCs realise one cardinal rule of profitable companies and, that is, in order for your employees to be productive, they need to be able to take care of their other domains - family, children, parents and themselves. Up to a certain level, if you require more from your employees, you must actually find means to help them take care of their own needs. For example, IBM, even before this, they already had five days of family leave. No reasons need to be given. You can take it. And many other such companies have already practised or have in place these practices. Indeed, if you look at case examples of progressive companies, they have shown that they could have a win-win situation and that it need not mean that if you give provision for your employees to take such leave, that your productivity goes down. Indeed productivity goes up. Most employers are enlightened and they understand this. We have many good companies and management that understand this cardinal rule and so I am quite optimistic. The second protection really is the tight labour market. If there is economic growth and companies and employers need people to meet their orders, they would hire. So our economic fundamentals must be correct.”
“Let me thank the Members for their responses and their queries. I would try my best to answer some of them. I think whenever you have a situation where Members say they strongly support, it tells us that we have done something right, especially when it is women saying it. Sir, this, of course, pertains to maternity leave. Mr Yeo Guat Kwang, Dr Amy Khor, Mdm Halimah and Ms Irene Ng have raised some issues. Let me take these aspects separately because maternity leave and the other amendments of the Employment Act are quite different. On discrimination, many questions were asked how do we ensure that these very changes that sought to help women do not result in them being discriminated. This was also the question that we considered, which is why, based on the National Tripartite Advisory Panel (NTAP), we decided to extend to 12 weeks. Employers who were represented at NTAP sensed that this is what they could bear. That is the first point. The second point is that Government undertook the responsibility to pay for such leave so that the financial burden would be less on the employers. We would continue to do our part in promoting best practices, as Members have asked for, by issuing guidelines. We started up a fund, some Members may have read about it, called the WOW Fund, Worklife Works Fund. Some Members in this House have been asked to help us. Dr Jennifer Lee has agreed, and we have also gotten some representatives from the community to help us push these initiatives. And that must be done. In other words, we must send positive signals. We must continue, as Mdm Halimah and Dr Amy Khor have said, to highlight employers who are good examples. But let us also be realistic in what I think would make companies sit up and practise.”
“Beyond 15, they are permitted to take up employment, except for work which is dangerous or hazardous to health. For such work, the minimum age is 16 if their "safety, health and morals" are fully protected, and they receive proper training in the relevant branch of activity. Singapore is against all forms of exploitation of children and imposes strict standards in the employment of youths. In 2001, Singapore ratified ILO Convention 182 on the Elimination of the Worst Forms of Child Labour. We will take this opportunity to raise our minimum working ages to be in line with Convention 138, and in due course to ratify it as a continued commitment to the protection of our children and youths. Sir, I beg to move. Question proposed.”
“Companies that apply for exemption must provide income stability for workers, and ensure their safety and health is not compromised. They should also demonstrate that greater profits that result from the more efficient use of manpower will be shared with their workers. The guidelines will be disseminated to employers and the unions and workers. In addition, MOM will appoint a tripartite working group to assist the Commissioner for Labour in assessing applications for exemption by companies. Raising the Minimum Working Age in accordance with ILO Convention 138 Next, raising the minimum working age in accordance with ILO Convention 138. Let me turn to clauses 2, 4 and 5 of the Bill, which relate to the employment of children and young persons in industrial, non-industrial and light work. The present provisions allow for the employment of children aged between 12 and 14 in "light work", and under parental supervision. In practice, child employment is negligible in Singapore as children below 14 are either in schools or approved vocational institutions. Young persons, currently defined as persons between the ages of 14 and 16, may be employed in industrial undertakings, unless there is a specific prohibition in relation to that undertaking prescribed by my Ministry. No restrictions are imposed on persons aged 16 and above. The Minimum Age Convention of 1973 (No. 138 of ILO) is one of its eight core conventions. In essence, it stipulates that children should not enter the labour force before the completion of compulsory education, but in any event not before reaching the age of 15. However, children aged between 13 and 15 may perform light work, if it is not prejudicial to their educational activities.”
“In other words, in practice, during periods of peak demand, companies have to pay more for overtime, and this is correct. But when demand is down, they have excess workers on the payroll. This results in retrenchments during lull periods. Then when business picks up, companies must hire again, including many whom they had let go. This is inefficient. We must allow companies that face uneven demand due to the nature of operations, or seasonal and business cycles, flexibility to adjust work schedules. A few companies have implemented such schemes on a pilot basis after consultation with and agreement from their unions and Government. Let me give you some examples. One company, instead of cash payments, offsets overtime accumulated as paid time-off to the workers. The equivalent premium rates of 1.5 times for overtime work and 2 times for rest day work are maintained. In another company, overtime payment at premium rates is paid in excess of contractual hours not on a daily or weekly basis but bi-monthly or quarterly basis. These are positive examples of the efficient use of manpower. Hence, the Economic Review Committee recommended that companies should be given exemption from the relevant provisions to allow flexible work schedules. The Government has accepted the recommendation. This provision is effected in clause 3 which allows the Commissioner for Labour to exempt companies from cash payments and/or at premium rates to employees, for overtime, rest day and public holiday work. A set of tripartite guidelines has been formulated in consultation with employers and trade unions on the circumstances under which we will give permission for flexible work schemes. Various conditions will need to be observed to ensure that the interests of workers are protected.”
“As they did for maternity leave, companies are encouraged to extend childcare leave to all employees, including managers and executives, as a matter of good human resource practice. The two days are to be taken during the calendar year or by mutual consent any specified one year period. During the transition for the remaining few months of this year, I would like to encourage employers and employees to accommodate each other's needs in deciding on the number of days of childcare leave to be consumed. Some unions have suggested one day of childcare leave for their members for the remainder of this year or a total of three days of childcare leave to be consumed from 1st October 2004 to the end of 2005. The Employment Act sets minimum standards for childcare leave. For employers who have the resources, I urge them to provide more than the two-day minimum or other forms of family care leave. The tripartite partners will continue to promote family-friendly workplaces. This will raise employee satisfaction and productivity, both at home and at work. If employees are enabled to take better care of their young children and other family members, they will also be better workers. Facilitating Flexible Work Schemes Let me now turn to the second set of amendments contained in clause 3 of the Bill which facilitates flexible work schemes. With rapidly changing market demands and volatile cycles, companies must have greater flexibility in scheduling work arrangements. Our existing legislation, which stipulates premium rates for overtime (1.5 times) and rest day (which is 2 times) and that the payment of overtime must be in cash, has hindered the implementation of flexible work schedules.”
“The Acting Minister for Community Development, Youth and Sports will shortly be presenting those amendments under the Children Development Co-Savings Act (CDCA). The CDCA will also be amended to provide for 12 weeks' leave and pay to cover the first to fourth births of all qualifying mothers, irrespective of position. Managers, executives and confidential staff will consequently have expanded rights to paid maternity leave. We have also taken the opportunity to address the situation faced by mothers with multiple births. Under current laws, these mothers are not eligible to further employer-paid maternity leave after the first birth, since they would already have two or more living children. Clause 7 of the Bill provides that these mothers will, in future, be entitled to employer-paid maternity leave for the second confinement. Childcare Leave The Tripartite Panel acknowledged in its report the importance of developing family-friendly workplaces in Singapore. In addition to extending maternity leave, the panel also wanted two days of childcare leave for working fathers and mothers who have any child under the age of 7, regardless of the number of children and with no preconditions, such as illness of the child. This recommendation is reflected in clause 9 of the Bill. This childcare leave is meant for every parent, mother or father, to spend time with their children - to care for them, to tend to their needs or, if they like, just to appreciate each other. In that respect, it is different from annual leave. Although managers, executives and confidential staff are excluded from this Act, our experience is that, by and large, all companies extend the same leave benefits to executi7ves as they do to rank and file employees in order to maintain consistency.”
“We also garnered feedback from 11 focus groups, comprising employer and employee representatives from industries such as banking and finance, electronics manufacturing, hotels and restaurants, civic and community groups. We paid particular attention to women's views. After extensive consultation and deliberation, the tripartite panel recommended four additional weeks, bringing the total to 12 weeks for maternity leave. This panel also recommended that, subject to mutual agreement between employer and employee, there should be flexibility to take the additional four weeks spread over the six months following the birth of the child. This would minimise the impact of continuous 12 weeks' absence of key employees, especially small and medium sized enterprises. It would also allow some employees, if they wanted to, to return to work after eight weeks on half-day or shorter work-week arrangements. We have accepted these recommendations. Clause 7 of the Bill therefore extends maternity leave from eight weeks to 12 weeks. A new section 76(1)(c) provides for up to 24 days to be taken flexibly over the six months following the birth of the child, based on a maximum six-day work-week. For companies working less than a six-day work-week, the number of flexible days of leave can be adjusted to be consistent with four work-weeks. Let me now turn to the issue of maternity pay. The Tripartite Panel assessed that our companies' cost competitiveness would be affected if they had to foot the wage bill for the additional leave. So, the Government will fund the additional four weeks for the first and second child and the full 12 weeks' leave for the third and fourth child for mothers of Singapore citizens.”
“Mr Deputy Speaker, Sir, I beg to move, "That the Bill be now read a Second time." Sir, the Prime Minister announced during our recent National Day Rally a set of measures for a more supportive environment to have children and raise families in Singapore. The measures included extending maternity leave from eight to 12 weeks, and two days of childcare leave for each parent. The amendments in this Bill will effect those measures. The Bill also amends the Employment Act in two other areas. First, to allow companies to implement flexible work schemes to optimise their manpower resources and, second, to raise the minimum age of employment for children and young persons. I shall take the House through each of the amendments in turn. Extending Maternity Leave First, extending maternity leave. Two sets of regulation presently prescribe rights and benefits of maternity leave. Currently, employees covered by the Employment Act (EA), irrespective of nationality of the child or mother, are entitled to eight weeks of maternity leave for all births. Employers must pay for such leave taken for the first two children. Employees who are managers, executives and confidential staff are not covered under the EA. For the third child only, there is a separate scheme under the Children Development Co-Savings Act since 2001 which provides for eight weeks of maternity leave for mothers of Singapore citizens for legitimate births. To achieve a better environment for families, my Ministry set up a tripartite panel (National Tripartite Advisory Panel to Develop Family Friendly Workplaces) to formulate workable recommendations that were appropriate to Singapore's context. This included the length of maternity leave.”
“Sir, I am not completely sure whether I have understood the question. But for the individual CPF accounts, most spouses should know when their husbands turn 55 and whatever year they can withdraw the Minimum Sum. Whether we should consider reminding, I presume, the wife that the husband is reaching their age, we will consider. MARRIAGE RESTRICTION POLICY 11. Mr Steve Chia Kiah Hong asked the Minister for Manpower (a) under what basis can the appeal of a Singapore citizen who had a relationship with an ex-work permit holder, resulting in the birth of a child, be granted approval for marriage; and (b) in view of our declining population figure, will such relationships resulting in the birth of a child be given easier approval for marriage by the Ministry.”
“We can consider that. We do allow them tax reliefs when they top up in cash. So, that is one avenue where they can top up the accounts of those parents who have exhausted their Minimum Sum. So, that is one avenue open, and we do give tax reliefs for their top-ups. As to whether their children can use their CPF money to top up the accounts of their parents who have exhausted their Minimum Sum already accumulated, as I said, practically, it does not affect that many people because most parents who have accumulated enough CPF sums, take some time before they exhaust it. And the profile of such families is such that for these parents, if the child has enough to top up their parents' accounts, usually they have also cash which they can use to top up their parents' accounts.”
“Sir, that is under consideration and we will consider it. But at this point of time, practically, when they have accumulated their Minimum Sum, because it is paid out on annuity, it takes quite some time before that sum runs out. So, practically, that has not been a problem. The real problem is for the group of parents who have not accumulated enough, and for these we allow.”
“Sir, I think I had answered Mr Low when he asked that question pointedly at the last Parliament sitting. Yes, they are allowed to. They are allowed to top up right to the Minimum Sum. So, we do allow children to top up their parents' accounts.”
“Apart from CPF, we must also help members find other sources of income. Most Singaporeans are home owners. With HDB's relaxation of rental rules, there are now 250,000 homes that can be rented out fully or in part. For the elderly and those not working, they should consider their home as a potential source of income. We will continue to explore workable options to monetise their housing assets. The Government recognises that there are vulnerable groups who may have difficulty preparing adequately for retirement under the CPF system. We must help them to find employment and to upgrade their skills. We will work closely with community and union partners in this effort. In years of surpluses, the Government helps these Singaporeans by topping up their CPF. Since 1995, we have disbursed about $4 billion to CPF members. For Singaporeans who lack any family support and need financial assistance, various public assistance schemes and Medifund provide a safety net.”
“Mdm Ho asked how we can help all Singaporeans, including those vulnerable groups, prepare financially for their old age. As this is an oral answer session, I propose not to go into a lengthy discourse, but touch briefly on key points. First and foremost, we help people save enough in their CPF by helping them stay employable as long as possible through reskilling and skills upgrading. We should help them save enough for their expected life expectancy, which is why we will gradually raise the Minimum Sum to $120,000 in 2003 dollars by 2013. Second, we must curb excessive consumption on housing and medical care. For example, we have tightened the rules on the use of CPF for property purchases. As medical expenses form a potentially large component of consumption, we must stretch the Medisave dollar. MOH has recently announced that they are reviewing MediShield for this purpose. Individuals can also reduce their medical needs by maintaining healthy lifestyles. Next, we must emphasise the extended family as the social and financial support unit. We allow and encourage top-ups for spouses and parents. Family members can use their Medisave accounts for each other. For non-working spouses, we encourage their working spouses or children to top up their CPF Minimum Sum. For the Year of Assessment 2005, we have increased the tax relief ceiling for a member who tops up for his parents and grandparents who are aged 55 and older using cash, from $6,000 per year to $7,000 per year. This tax relief has also been extended to include non-working spouses who are at least 55 years old and who earned less than $2,000 in the preceding year. CPF Board will continue to review the topping-up conditions so that more members can benefit.”
“Mr Speaker, Sir, as at end December 2003, there were about three million CPF members, of whom about 30%, or 877,000 members between the ages of 25 and 54, had not contributed to CPF for the preceding three months. Although these members were what we called "inactive", it does not mean that all of them had insufficient CPF savings to cover their retirement needs. For example, some may have other sources of income but opened their CPF accounts in order to qualify for Economic Restructuring Shares and other similar benefits. Last year's Labour Force Survey estimates that there are 320,000 married females between the ages of 25 and 54 who are not working. Of these, 305,000 are homemakers or home care givers taking care of children, elderly or sick relatives. Mdm Ho also asked for the working poor. I presume this means those who may not have enough for retirement even if they are employed. This is difficult to quantify, as there is no universally accepted definition for the working poor. So, let me instead use the Minimum Sum as a measure of adequacy. In 2003, of those active CPF members turning age 55, about 40% had set aside the full Minimum Sum. Our projections show that of those active members aged 45 last year, half will be able to achieve the Minimum Sum when they turn 55 in 10 years' time in 2013. In our longer-term projections, even at a CPF contribution rate of 30%, 76% of new CPF members who contribute regularly to the CPF from the time they start work and are prudent in using CPF for housing, will be able to meet the Minimum Sum of $120,000, in 2003 dollars, when they retire. Our CPF system serves as the cornerstone of our retirement provision. It is a sound and sustainable system.”
“Sir, the rationale goes back to what our CPF system was devised for. Firstly, it was an individualised savings account. It is the safety net in our system. In other words, it is a specific feature in our system where you take care of yourself. So, first of all, we said that there must be a minimum balance before the person can top up his parents'accounts. Secondly, we have limited it to parentsabove 55, particularly because, for many of them indeed, they are also working. The retirement age now is 62 and,even for those above 50, the re-employment rate is about 50%. So, many of them are still working. So, this principle of saving for your own affordability, for your own retirement needs, continues to apply. Having said that, for the minority of CPF members who have large amounts,they are not many and we can work the numbers. In other words, very few children with parents below 55 have these balances. So, it is somewhat theoretical, but we can consider the hon. Member's proposals. BLACKLISTING OF FOREIGN MAIDS 10. Mr Chiam See Tong asked the Minister for Manpower (a) what action does his Ministry take when it receives a written request from an employer to blacklist a foreign maid; (b) if a foreign maid is blacklisted, does it include debarment from working in Singapore; and (c) if it does, how long is the debarment.”
“Sir, we have limited it to parents who are 55 and above.”
“Sir, there are a number of conditions. Let me reiterate them. Firstly, the parents must be 55 or older. In other words, the child can top up his parent's account any time after the parent is 55 or above. Secondly, the childmustmeet minimum requirements and I have specified the amounts. If these conditions are satisfied, he can top it up.”
“Mr Speaker, Sir, children are allowed to top up the retirement accountsof their parents who must be aged 55 and above.The amounts that they can topup to is the Minimum Sum applicable to their parents. In order for the child to do so, the childmust have regrossed Ordinary Accountand Special Accountbalances of more than twice the prevailing Minimum Sum, and netbalances of more than twice the cash component. Let me translate to this year's terms. In other words, for 2004, in order for a childto top up his parents' accounts, his own account must have more than $169,000 in their regrossed balance, of which $84,500 must be in cash. The reasons for these limitations are toensure that members, before they topup their parents' accounts, musthave sufficient savings for their own retirement needs before they help their parents. In addition to this, members can also make cash top-ups to their parents’ CPF accounts.”
“Foreign workers are only allowed to work as drivers if this is a specific requirement for their approved occupation, eg, they were hired as ambulance or truck drivers. Since January 2001, the Ministry has acted against 135 employers who have illegally deployed work permit holders under their employment as drivers. They were each fined between $1,000 and $5,000. The current penalties against such offences are adequate and have resulted in a fall in the number of offences committed. INTERACTION BETWEEN PARENTS AND CHILDREN 19. Mdm Cynthia Phua asked the Acting Minister for Community Development, Youth and Sports what will his Ministry do in the light of a survey by the ST Media Club that children and parents are not interacting with each other and see each other as strangers.”
“The Tripartite Taskforce on Wage Restructuring has recommended that companies implement a flexible wage system which comprises a basic wage and a sizeable variable component that is linked to company and/or individual performance. This allows companies to better tie rewards for workers to performance. The flexible wage system is applicable to the entire workforce including Singaporeans, permanent residents as well as foreign employees. This is because all employees, whether local or foreign, contribute to the performance of the company, and in achieving the key performance indicators. Such a wage system will enable employers to incentivise and reward employees with a higher variable payment when companies perform well. When times are bad and the company's performance is adversely affected, they can adjust wage costs for the company to remain viable and to save jobs. FOREIGN WORK PERMIT HOLDERS 18. Mr Steve Chia Kiah Hong asked the Minister for Manpower (a) whether foreign work permit holders/workers are allowed to drive lorries and/or pickups in Singapore even if they have valid driving licences; (b) whether any work permit holders had been caught for driving lorries/pickups on work-related matters in the last four years; and (c) will the Ministry impose stiffer penalties on employers who make use of foreign work permit holders for such purposes.”
“For example, they are 60% more likely to put in unpaid overtime compared to permanent workers.3 Studies on Canadian and American workers4 show that where workers embark voluntarily on contingent work, especially for those seeking to balance work demands with domestic or other responsibilities, they may increase productivity. However, when workers enter into these arrangements involuntarily, because there are no better employment opportunities available, their job benefits are reduced and they can find themselves marginalised in the workplace, leading to employee frustrations and morale problems. Thus, whilst the number of short-term contract workers in Singapore is still small, we would need to monitor the trend closely. 1 Source: Conditions of Employment, 2002, www.mom.gov.sg. 2 Total employment is defined as the sum of workers employed by the private sector establishments with at least 25workers and the number of freelancers/casual workers as well as those supplied by labour suppliers or employment agencies who are deployed in these establishments. 3 Engellandt, Axel and Regina T. Riphahn, 2004, "Temporary contracts and employee effort", Labour Economics 1 March 2004. 4 See for example CBC Newonline Special feature: The WayWeWork, <http://www.cbc.ca/news/work/nomore9to5/234.html>and Bureau of Labor Statistics: Contingent and Alternative EmploymentArrangements, February 2001, <http://www.bls.gov/news.release/conemp.nr0.htm> VARIABLE WAGE SYSTEM 17. Mr Steve Chia Kiah Hong asked the Minister for Manpower whether the proposed variable wage system is applicable to all employees, including foreign talents and permanent residents, or just applicable to Singaporeans only.”
“(a) Current unemployment rate The unemployment rate has held stable compared tothree months ago. The seasonally adjusted overall unemployment was 4.5% in June, same as in March 2004. (b) Percentage of workforce on contract work There is no standard period for contract work in Singapore, although it would generally refer to temporary work for less than two years. Workers on short-term temporary contracts can be considered to be part of the contingent workforce. In addition, the contingent workforce includes freelancers or casual workers, and workers employed and supplied by labour suppliers or employment agencies who are not counted as direct employees of the firm they are attached to. The proportion of contingent workers in Singapore is low. In 2002, 36,600 workers attached to private sector establishments with at least 25 workers could be considered to be on contingent employment.1 They make up 3.6% of total employees. Of this group, temporary workers on short-term contracts made up about 0.6% of all employees (approximately 6,300 workers). Workers supplied by labour suppliers or employment agencies comprised 2.4% and freelance/casual workers 0.6% of total employment2 . (c) Studies on short-term employees and their commitment to good work ethos As the proportion of contract/contingent workers in Singapore is still low, there are currently no studies on short-term employees and their commitment to good work ethos in Singapore. Studies on the Swiss Labour Force suggest, however, that because temporary work provides employers with a tool to screen potential entrants and may provide "stepping stones" into permanent employment, temporary workers have an incentive to provide more effort than permanent workers.”
“Yes. LIFT UPGRADING PROGRAMME 16. Dr Ong Seh Hong asked the Minister for National Development, in the light of the Prime Minister's announcement in making Singapore an elderly friendly environment, will his Ministry (a) consider giving residents in those HDB flats which failed in the polling of the LUP (lift upgrading programme) a second chance to vote for the programme; and (b) consider extending LUP to low-rise flats.”
“Sir, our forecast is, if the economy grows by 3-5% per year, we will generate about 36,000 jobs to absorb the entrants. In other words, all things being equal, if we continue to grow 3-5% for the next five years, depending on what the unemployment rate at the end of the year is, it will be around 4%. If we grow more than 5%, the unemployment rate will fall. If we grow less, the unemployment rate will rise.”
“Sir, the current unemployment rate is 4.5%. What the unemployment rate will be, going forward, as I have said, is a function of many things. One is a function of growth because, ultimately, it is growth that creates jobs. And ifwe have another situation and there is no growth and there are, in fact, job losses, then our unemployment rate will go up. But if our economy does well, as it has been doing this year, andwe create jobs, our unemployment rate should go down if workers have the skills to go into the jobs. If our economy continues to grow, as forecast by MTI this year, we expect the unemployment rate to go down to 4%. How it does after that, again itdepends on how the economy grows and how our workers adapt to the challenges. So, I think it is less useful to make forecast. It is really more impactful to get our workers ready for the jobs that will come when our economy grows.”
“Sir, unemployment is a function of many things. But for Singaporeans, the most important question in their minds is: can our economy grow and create jobs? That is the fundamental issue. Ifwe cannot, then there are not enough jobs to go round. It is as simple as that. And it is very clear from the last five years that this is being demonstrated when the economy slumped. We could do almost everything and we did. And when there were external challenges like SARS or terrorism, we did not have growth, we did not have jobs. We did not do that much structural changes. We took hard decisions in terms of CPF, wage cuts, and this year, the economy grew and we are creating jobs. So I think in terms of job creation, our fundamentals are there. But the greater challenge for many of our Singaporean workers is that they can be left behind because their skills and aptitudes may not be quite consistent with the type of jobs being created. In other words, our new economic structure creates jobs. We must retrain and help Singaporeans adapt. If we can do that and can meet the challenge, then unemployment will go down.”
“Sir, as I have said, we have about 36,000 new entrants into the labour market every year. So this will be the number of jobs thatneed tobe created to keep our unemployment rate as it is. This translates to about 3%-5% of GDP growth, using historical norms. In the first half of this year, we created about 27,000 jobs and the new jobs will exceed the number of new labour entrants. So unemployment will fall somewhat towards the end of the year. Mr Low Thia Khiang rose ---”
“Mr Speaker, Sir, our local labour force will grow by around 36,000 people each year over the nextfive years. This islargely due to the new school leavers entering the labour force each year. This would be the net job growth required to keep the residential unemployment rate stable, all other things being equal.”
“Sir, the foreign domestic worker (FDW) levy concession forms part of the overall package of measures to address our declining birth rates. The committee recognises the integral role of grandparents in encouraging and supporting younger Singaporeans to start families. This was the key reason why the grandparent tax relief and the levy concession were also extended to families with elderly parents or grandparents. To qualify for levy concession, the elderly need not be sick or dependent but must be 65 years or older and staying with their children. For households with disabled family members, which the Member has asked about, there are already several other measures available, such as the handicapped child, spouse or parent tax relief, which can be used to offset the cost of employing a foreign domestic worker. The Ministry of Community Development, Youth and Sports (MCYS) also works with voluntary welfare organisations to provide programmes for people with disabilities. MCYS funds programmes geared towards helping families care for such persons in the community instead of placing them under institutional care. These programmes include Day Activity Centres for adults with disabilities, integrated childcare and special student care centres for children. I understand that MCYS is studying further options to assist the disabled and will considerthe Member'ssuggestion in its deliberations. EMPLOYMENT SITUATION IN SINGAPORE (Update) 13. Mr Gan Kim Yong asked the Minister for Manpower (a) whether he will give an update on the employment situation in Singapore; and (b) what is the progress his Ministry has made in the introduction of the variable wage system.”
“REDUCTION OF FOREIGN MAID LEVY (Extension to families with elderly or disabled persons) 12. Dr Ong Seh Hong asked the Minister for Manpower, in the light of the Prime Minister's announcement of the reduction of foreign maid levy (FML) for family with children under the age of 12, will his Ministry consider also reducing the FML for families with sick and dependent elderly or disabled persons who are equally, if not more, in need of the service of domestic maids and in allowing this encourage families to care for them in the community rather than to send them for institutional care.”
“A second area that WDA is focusing on, which Madam Ho had asked about, isself-employment. The Self Employment Training (SET) Programme waslaunched in 2002, and this programme provides specific skills such as analysing business opportunities, sales and marketing, finance and accounting, human resource management and legal aspects of establishing a business. To date, some 6,829 Singaporeans have been trained under this programme. Recently, WDAalso launched the Retail Incubator Training Programme aimed at training Singaporeans to operate their own push-cart retail business and over 600 Singaporeans registered for the programme. We are continuing tohelp lower-skilled and older workers through training. Members may have heard ofFLOW, which is Functional Literacy For Our Workers, which we help workers who had little formal education to quickly acquire the level of literacy required at the workplace. And, we will continue with suchwork-readiness programmes in addition to many Place and Train programmes. We would also work closelywith employers and the human resource community to correct misperceptions towards older workers. Enlightened employers recognise the value that older workers bring through their loyalty, experience and maturity and that these workers could contribute significantly to the company. Mdm Ho asked aboutnon-government agencies. We have been working very closelywith non-government agencies such asNTUC and the people sector,self-help groups and the CDCs, to increase our outreach to the unemployed andto provide employment assistance. We will continue to work with a range of agencies to increase our outreach to the unemployed as well as lower skilled and low wage workers, to help them maintain their employability through retraining and upgrading.”
“Mr Speaker, Mdm Ho asked about older workers. Allow me to give some figures. The re-employment rate of workers from 40-49 years old as at first quarter this year was 51.5%. This isthe national average. However, the re-employment rate of those above 50 remains lower than the national average. This is partly because some older workers withdraw from the labour market when they lose their jobs. The long-term unemployment rate - this is defined as someone who has not found a job six months after he has lost his previous job -for older workers above 50 yearshasrisen above the national average. It is 2.3% in the first quarter of this year, compared to the overall rate of 1.5%. So, yes, those above 50 are finding it difficult to be re-employed. In this context, wage restructuring,changes to the CPF for older workers, which Mdm Ho asked about, were necessary measures to ensure that our workers, especially the older ones, remain cost-competitive. In particular, moderating seniority-based pay systems, where older workers get paid more than younger workers for doing the same work was important. The changes to CPF contributions for older workers should also be seen in this context. These changes, correctly incentivise companies to employ, reward and retain workers based on their performance regardless of age. And, therefore, even as the economy recovers, companies need to continue with efforts to restructure their wage systems. Beyond wage restructuring, the Singapore Workforce Development Agency (WDA) adopts a multi-pronged approach to help older workers get jobs. To encourage employers to employ older workers, we administer the People-for-Jobs Traineeship Programme (PJTP). As at July 2004, the programme has benefited 18,500 older workers.”
“When the CPF Dependants' Protection Scheme (DPS) is privatised, the CPF Board will transfer the DPS funds to the private insurers so that they can take over the liabilities of existing members covered by DPS and the bonus sum assured given to members in 2003. The CPF Board will retain only whatever it requires to pay off outstanding DPS claims. The CPF Board will ensure that the existing premium rates will be maintained after privatisation. The terms of coverage and payouts will be at least equivalent, if not better than currently after privatisation of DPS. The main features of DPS will also remain. The Board will select private insurers based on their track record as insurers, financial strength, proven operational efficiency and ability to provide good customer service. The CPF Board will continue to oversee the DPS policies and ensure that members' interests are protected after the privatisation. APPENDICES Section Name: WRITTEN ANSWERS TO QUESTIONS NOT ANSWERED BY 3.00PM Title: ELECTRICITY TARIFFS Filename : Annex - Electricity Tariffs MP Name: Dr Vivian Balakrishnan”
“5% of the cases involving 75.7% of the total unrefunded taxes belonging to Singaporeans, with the sums being sent to the Official Assignee in the case of undischarged bankrupts. The 3,399 cases still unrefunded, involve a total sum of $1.23 million, and these are Singaporeans who are not contactable. Many of these may be taxpayers who have emigrated without leaving their foreign addresses. A number are Singaporeans who have passed away. IRAS has written to the families of the deceased but has not received replies. So, all in all, of the $28.05 million of unrefunded taxes as at February 2003, $23.34 million remained unrefunded in June 2004, not because IRAS has not been trying, but simply because the taxpayers or their beneficiaries are not contactable. In many tax jurisdictions, if the taxpayer does not make his claim, the tax authority will simply hold on to the money. Here, IRAS will continue to do its best to contact all who have unrefunded taxes, and to make the refunds promptly.”
“Sir, we are presently working with the embassies, as well as stepping up our efforts to both increase awareness of the employers as well as the employees. INLAND REVENUE AUTHORITY OF SINGAPORE (Tax refunds) 13. Ms Indranee Rajah asked the Deputy Prime Minister and Minister for Finance why were there excess taxes totaling $28.05 million, as at February 2003, which had not been refunded by the Inland Revenue Authority of Singapore (IRAS) to the relevant tax payers for more than three years and whether IRAS will be taking steps to expedite tax refunds in the future The Second Minister for Finance (Mr Lim Hng Kiang): Mr Deputy Speaker, the $28.05 million in un-refunded taxes as at February 2003 belonged to 63,910 persons. $22.98 million or 82% belonged to 49,444 foreigners (77%), while $5.07 million (18%) belonged to 14,466 Singaporeans (23%). So, as we can see, an overwhelming majority of the un-refunded cases involve foreigners. IRAS has not been able to make the tax refunds as most of these foreigners did not leave their foreign addresses with IRAS, though IRAS nevertheless puts in its best effort to track them down. For instance, in 2000, a taxpayer in Korea wrote to the Korean Herald, their newspaper, praising IRAS' exemplary efforts to track him down in Korea so as to provide him with his tax refund. Showing just how difficult it is to make these refunds to foreigners, having been alerted about these arrears, IRAS made an extra effort and even by end-June 2004, $22.11 million belonging to 48,180 foreigners still remains un-refunded. IRAS has been able to track only 2.6% of the foreigners and returned 3.8% of the total amount belonging to foreigners. However, IRAS has had much more success with the Singaporeans. By the end of June 2004, IRAS has settled 76.”
“Sir, as I have mentioned in my reply, I do not want to give the impression that from past records this is a large problem. As I said, this is 6-7% of companies that are in arrears and, in terms of settlement, 99% of foreign workers' claims were settled through conciliation. So we should not get away with the impression that this is a tedious process. In fact, the process is working. But, as I have said, the number of episodes recently has caused us to look at the system and see whether we could see ways in which we could improve and strengthen it. The Member has asked if we could consider e-schemes. Yes, we are doing that. She also asked how many of the claims were settled when the workers went back. I do not have the figure but the overall number is that, as I have said, 99% of foreign workers' claims were settled through conciliation. So those that could not get their claims settled are in the minority.”
“I have to thank the Member for his question because it allows me to explain. We have over 500,000 foreign workers. The first point is that we do not have in place, as such, an electronic system where we could monitor all salary payments. We monitor the levies, as a proxy for salary payments. In other words, we assume that if he does not pay the levies, then he may not be paying the salaries and we flag this up. We are also dependent on the foreign workers telling us, and which is why we give them advisories at the point of employment that they should come to MOM, provide them the hotline, the numbers in their various languages, for them to understand and to inform us. We also have a particular team that checks in terms of salaries that are given. But, as you could understand, there are many companies and many workers, and sometimes that is not a foolproof system. But we are looking into options to consider electronic aspects to tie the system up so that we could be alerted earlier.”
“Sir, from our experience, the inability to seek restitution of arrears is not so much procedural; in other words, the process is not difficult or expensive. But in most episodes, the company goes insolvent. That is the first point. So, as I have said, what we try to do in our current measures under review is to tighten up so that the amounts owed to workers are reduced. And that we can do by putting in systems to detect the amount of arrears owed to workers so that we are alerted earlier and we can take measures. Secondly, we are seriously considering, as has been proposed by Members, for some mechanism where a particular fund or insurance is being set up so that some restitution compensation can be paid too. I think those are the critical measures and not so much the procedural aspects. Mdm Halimah and Mr Yeo had also asked what else can be done for employers. I think for most employers, the greatest penalty is not to have these workers, because basically for many of them, that means the business folds. And it is a clear message from the Ministry that indeed you should take salaries of your workers seriously because if we find out that their salaries are in arrears, we will cancel their work permits.”
“Sir, Mdm Halimah asked whether we would consider enhancement of penalties. The answer is, yes. This is being considered. She asked how many employers were prosecuted. Let me go through some figures. In 2003, some 670 employers were warned for technical infringements. I do not have the exact figure of how many were prosecuted subsequently. I can give it to her if a written question is filed. She asked whether we would help workers after the adjudication in the Labour Court to enforce the Writ of Seizure and Sale. The answer is, yes. We have done so, and will continue to do so.”
“This is also being considered with various options and their details currently studied, as well as in other areas to promote the overall framework of payment and restitution of arrears. My Ministry shares the concerns of hon. Members who have affected workers. And I would take this opportunity to remind employers of their statutory obligations, particularly to pay salaries on time. MOM will not hesitate to take action against them. If indeed they find their companies are having business problems, they should cancel their work permits and approach MOM. We will try to help these workers find alternative job arrangements, failing which we can repatriate them. We would also like to encourage workers who have not been paid their salaries to raise salary arrears to MOM as soon as possible, to improve their own chances of recovering their salaries.”
“We have urged the workers to be realistic and accept a partial payment with the remaining sum to be remitted to them in their home country, if the company has funds for distribution for such payment subsequently. In this regard, the workers have, upon the Ministry's advice, filed their claims with MOM for adjudication by the Commissioner for Labour. While the workers wait for their claims to be resolved, they will be provided with accommodation and meals by Wan Soon. Workers who wish to continue working in Singapore will be allowed to do so if they can find new employers to engage them. In view of the recent episodes of companies failing to pay their workers on time, I agree with Members that our framework needs to be tightened. My Ministry will therefore tighten existing measures and review new areas to ensure prompt payment of salaries and restitution of arrears. First, we will improve our current system so that late or non-payment of salaries will be detected earlier. Concurrently, we will step up efforts to increase employees' awareness of their rights. These measures will reduce the amounts owed to workers. Second, we will step up our enforcement procedures to ensure that irresponsible employers are punished to the full extent permissible by law. Employers must realise that non-payment of salaries should not be viewed as normal business debts from which they can be shielded by the cloak of limited liability. Errant employers will be made to bear the total economic and social cost of non-payment of salaries, as well as the cost of resolving disputes. Mdm Halimah has asked whether the Ministry will consider making it mandatory for companies employing foreign workers in problematic sectors to set aside some funds to offset workers' claims.”