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PARLIAMENT OF SINGAPORE · FORMER

Tan Chuan-Jin

Singapore

IN THEIR OWN WORDS

A step-parent who wishes to leave any part of his or her estate to a stepchild is encouraged to make a will. Intestacy law would apply in cases where a person passes on without a will.

REVIEW OF FAMILY-RELATED LAWS GOVERNING LEGAL RIGHTS AND RESPONSIBILITIES BETWEEN STEP-PARENTS AND STEP-CHILDREN - 2017-08-01 · READ THE OFFICIAL RECORD

Last year, we reviewed and extended the Child Development Account, or CDA benefits to children of unwed parents. The Government granted CDA benefits, to children of unwed parents born, or with an estimated date of delivery, from 1 September 2016. It is generally good practice to implement our policies prospectively.

EXTENSION OF CHILD DEVELOPMENT ACCOUNT GOVERNMENT DOLLAR-FOR-DOLLAR MATCHING BENEFIT - 2017-08-01 · READ THE OFFICIAL RECORD

The Ministry of Social and Family Development (MSF) does not track the number of persons who choose to remain homeless instead of being admitted into shelters. When MSF receives information on persons who may be homeless, we initiate contact with these persons on the ground to offer assistance.

CASES OF HOMELESS PERSONS WHO CHOOSE TO REMAIN HOMELESS INSTEAD OF GOING TO A SHELTER - 2017-07-03 · READ THE OFFICIAL RECORD

Our law places the child's welfare and interests at the heart of an adoption decision. We must not forget that such an adoption is a life-changing event because when an unwed mother adopts her child, the duties, obligations and liabilities of the biological father are terminated.

INCIDENCE OF SINGLE UNWED MOMS WHO ADOPT BIOLOGICAL CHILDREN - 2017-07-03 · READ THE OFFICIAL RECORD

The Early Childhood Development Agency (ECDA) works closely with the Housing and Development Board (HDB) to plan for preschools in upcoming Build-To-Order (BTO) developments, including Bidadari new town. To better meet the needs of young parents, new preschools will have larger capacities and also be completed earlier where possible.

PLANS FOR ADEQUATE CHILDCARE AND KINDERGARTEN FACILITIES IN BIDADARI ESTATE - 2017-05-08 · READ THE OFFICIAL RECORD

The Silver Support Scheme under the Manpower Ministry provides an income supplement to seniors who had low incomes through life and who now have little or no family support. Beyond ComCare, we are also expanding upstream intervention to strengthen the resilience of vulnerable families and their children to set a good foundation.

REASONS FOR INCREASING NUMBER OF FAMILIES RECEIVING COMCARE HELP - 2017-05-08 · READ THE OFFICIAL RECORD

The complete record

Every one of 1,137 lines we hold for Tan Chuan-Jin, in date order, each linked to its source. Free to read, in full, without an account. Page 11 of 23.

  1. Those better-paid workers who have worked in Singapore for some time can be R1, and employers who hire and retain them will benefit from lower R1 levies. This is in line with Mr Yeo's suggestion to provide levy incentives for better skilled workers. In fact, the enhanced criteria will be a more reliable way of identifying workers who are genuinely skilled and productive. These changes will kick in in 2017, to give companies time to retain and to train their workers up to this level and, therefore, to enjoy lower R1 levies. The skills tests for R1 recognition will also be harmonised under the Process WSQ to provide skills upgrading and multi-skilling progression pathways. This will be further supported by a policy change, to allow employers to hire experienced Work Permit Holders at the end of their Work Permit term or any time, with the previous employer's consent, without having to send them back to their home country first. These changes are in line with Mr Yeo Guat Kwang's concept of a progressive skills recognition framework, as well as his suggestion to allow employers to hire experienced Work Pass Holders without them having to be sent home first at the end of their contract. It will support the retention of a more experienced and a skilled workforce. Let me turn to another important issue affecting Singaporeans, and that is with regard to assurance in retirement and the role of our CPF. We have been making concerted efforts to provide greater assurance to Singaporeans in old age on three fronts: (a) healthcare needs; (b) housing needs; and (c) cost of living needs. On the healthcare front, the various healthcare subsidies and, most importantly, MediShield Life, will offer better protection for all.

    COMMITTEE OF SUPPLY – HEAD S (MINISTRY OF MANPOWER) - 2015-03-09 · READ THE OFFICIAL RECORD

  2. Dr Vincent Ng, Executive Director of AMKFSC Community Services, said that his company had a very positive experience with hiring Professional Conversion Programme trainees, as they are very dedicated to making a positive impact in society and also bring with them a wealth of life experiences. He found the salary support from the Government particularly helpful in alleviating manpower costs, especially for the social service sector, as many organisations face very tight resource constraints. Page: 73 Lastly, we will step up our placement and job matching efforts for those PMETs seeking dedicated help. WDA will complement its existing career services for PMETs through collaboration with private search and placement firms. This will help to widen the network of jobs that PMETs can access. To complement what we are doing for locals through SkillsFuture and the various PMET measures, we will also continue to take progressive steps to raise the productivity of our foreign workforce. Today, employers pay lower levies for higher skilled R1 workers compared to less skilled R2 workers. It encourages companies to hire skilled workers who are more productive, but who, at the same time, are likely to command higher wages. Mr Christopher de Souza would be pleased to know that, this year, we have worked with the Process sector to implement several productivity-enhancing initiatives. First, we will enhance the Process R1 criteria to be more reflective of market-relevant skills. The current skills test pathway will be paired with a salary requirement, to ensure that only workers whom employers value are given R1 status. We will also introduce a new salary plus experience pathway.

    COMMITTEE OF SUPPLY – HEAD S (MINISTRY OF MANPOWER) - 2015-03-09 · READ THE OFFICIAL RECORD

  3. Under SkillsFuture, WDA will also aim for at least 75% of courses offered by its training partners to incorporate online or workplace learning components. There are also PMETs who are switching jobs mid-career for various reasons – some to pursue their passions, to join a growth industry, or because their companies are restructuring. The third prong of support for PMETs is, thus, to provide them with good avenues to take on new jobs, through place-and-train programmes. We will enhance the Max Talent Programme. In April 2012, we introduced the pilot Max Talent place-and-train programme to help PMETs access good opportunities in SMEs and, at the same time, enhance opportunities for SMEs themselves. In the past two-plus years, there have been 1,000 successful placements, with a good six-month retention rate of over 80%. Given the positive feedback, we will enhance this programme with a stronger career development component and will work towards matching 3,000 PMETs with SME jobs over a three-year period. The enhanced programme will be called P-Max and is open to all PMETs at various stages of their career, including those who are currently unemployed. P-Max for PMETs. If you are thinking of switching to a completely different sector, one option is to take up, as mentioned earlier, a Professional Conversion Programme (PCP). Just last November, we had substantially increased the monthly salary support given to employers who hire PMETs on a PCP in the place-and-train mode, from the previous 70% of basic monthly salary, up to 90%. This enhanced support is targeted at PMETs who are aged 40 years and above, or those unemployed for six months or more. Employers have found the PCPs very helpful.

    COMMITTEE OF SUPPLY – HEAD S (MINISTRY OF MANPOWER) - 2015-03-09 · READ THE OFFICIAL RECORD

  4. This is a substantial increase from the current minimum subsidy of 75% for MOE courses and 50%-70% subsidy for WDA-supported courses. Courses already subsidised at above 90% will retain their existing rates. This will benefit PMETs substantially. Also because PMET courses tend to cost more and, so, the absolute quantum of subsidy will be correspondingly higher. Let us say you are a mature PMET and you want to go for a WSQ Diploma and Specialist Diploma in Precision Engineering (Master Craftsman Skills) from Nanyang Polytechnic, which costs $27,200. The net course fee that you need to pay, with the previous 70% subsidy, was around $8,100. With the enhanced subsidy of 90%, you just need to pay around $2,700. On top of that, you can use the $500 SkillsFuture Credit that you will be receiving, therefore, paying only $2,200. After graduating from the Master Craftsman programme, you can become a certified Master Craftsman after a certification interview, like Mr Kenneth Koh. Kenneth started off as a machinist in JEP Precision in 1992, after completing his Nitec. He participated in this programme and when he graduated in 2013, he was promoted to Senior Manager and enjoyed a pay increment of about 20%. He is now leading the entire manufacturing engineering department in his company, delegating projects and providing Page: 72 training to his colleagues. Many PMETs have busy work schedules or heavy family commitments and are unable to commit to a fixed, long period of training. This is the third aspect where SkillsFuture will help – to inject more flexibility into the training landscape to cater to their varying needs. As Minister Heng mentioned, MOE will expand the range of flexible, bite-sized modular courses offered by our IHLs.

    COMMITTEE OF SUPPLY – HEAD S (MINISTRY OF MANPOWER) - 2015-03-09 · READ THE OFFICIAL RECORD

  5. In the longer term, the Jobs Bank will also Page: 71 be integrated into this ILP. Next, we are helping PMETs to equip themselves to achieve their career goals. PMETs are, in fact, a key focus under SkillsFuture, in three ways. First, we are helping PMETs progress further in their careers. The SkillsFuture Study Awards and SkillsFuture Fellowships will help individuals achieve skills deepening and mastery in their respective fields. We also want to develop Singaporeans for positions of leadership in our industries. This requires both depth and breadth, and both local and global experience. I am pleased to inform Mr Zainudin that the SkillsFuture Leadership Development Initiative will support companies to develop or enhance in-house programmes to groom their Singaporean employees to take on these leadership roles. This will help Singaporeans gain exposure and experience in key global or regional markets and critical business functions. The initiative will be implemented progressively across sectors from this year, and will build on existing efforts to develop a pipeline of Singaporean leaders, such as MAS' Finance Associate Management Scheme and International Postings Programme, or EDB's on-going engagements with companies to enhance their talent and leadership development programmes. I urge all Singaporeans to make full use of these opportunities to broaden their experiences and to deepen their international outlook. Second, we will finance an enhanced funding support for mature PMETs. Education and training subsidies for all Singaporeans aged 40 and above will be enhanced to a minimum of 90% of training costs for courses funded by MOE and WDA. A minimum of 90%.

    COMMITTEE OF SUPPLY – HEAD S (MINISTRY OF MANPOWER) - 2015-03-09 · READ THE OFFICIAL RECORD

  6. Let me move on to talk about supporting Singaporean PMETs. Mr Sam Tan, Ms Jessica Tan, and Mr Heng Chee How have asked how we are helping this group of Singaporeans. As Mr Heng Chee How highlighted, the proportion of Singaporeans employed in PMET jobs has increased from 43% in 2004 to roughly half of our citizen workforce in 2014, and this is projected to reach two-thirds by 2030. Our future economy in Singapore will be driven by a strong Singaporean Core, with highly-skilled PMETs at the centre. PMETs generally enjoy positive employment outcomes. Real median incomes of Singaporean PMETs have risen 2% per annum in the past five years. The unemployment rate for Singaporean PMETs has stayed low at 2.9% in 2014 and the long-term unemployment rate has also remained low at 0.7%. Although displaced PMETs are not a large group, the pressures of a rapidly changing economy have caused some, especially mature PMETs, to feel anxious about their job security. And, as I have mentioned earlier, while the percentages are low, there are Singaporeans who are affected. We need to look out for them and see how best to help them. We aim to maintain these good outcomes for our PMETs by putting in place policies in a way that is best tailored to their needs and circumstances. 2.30 pm First and foremost, we are empowering PMETs to chart their own learning and career development. The first thing that the Government can do is to provide a good suite of practical, usable online resources. If you are a Singaporean PMET looking for a job, you can start with looking at the Jobs Bank. Starting 2017, you will also have an Individual Learning Portfolio (ILP), which will provide a whole suite of tools and labour market information to help you to plan your career throughout your life.

    COMMITTEE OF SUPPLY – HEAD S (MINISTRY OF MANPOWER) - 2015-03-09 · READ THE OFFICIAL RECORD

  7. Mr Ang Hin Kee and Mr Zaqy Mohamad were concerned that employers who are cutting costs may now ask their workers to co-fund the cost of training with their SkillsFuture Credit. Let me be very clear that the credits are meant to support training initiated by individuals, not to fund training which employers send them for. In any case, we will continue to support employers who send their workers for training by providing substantial course fee subsidies. We will also extend the existing Enhanced Training Support for SMEs Scheme by a further three years, to give SMEs additional support to send their local workers for training. Training funded by the credits, which are meant for individuals, will not allow employers to qualify for absentee payroll from WDA. So, this is a built-in mechanism that will address some of the concerns raised. Page: 70 Another key initiative is the Sectoral Manpower Plan (SMP). I shall not elaborate on this in detail as I had done so in Parliament previously, but I would like to highlight that one of its key objectives is to develop a deep pool of local talent in our key sectors, by building attractive skills-based career progression pathways, improving HR practices and enhancing workplace conditions. Over time, we hope that these efforts will help us build up a Singaporean Core in key industries with the right skills and experiences, as suggested by Mr Zainal Sapari and Mr Yeo Guat Kwang. We will work closely with Trade Associations, training institutions, employers, and unions to develop and implement comprehensive Sectoral Manpower Plans (SMP) in all key sectors by 2020, covering both growth sectors and traditional sectors. As for the core trades approach raised by Mr Yeo, we are open to exploring this with other agencies and other sectors.

    COMMITTEE OF SUPPLY – HEAD S (MINISTRY OF MANPOWER) - 2015-03-09 · READ THE OFFICIAL RECORD

  8. Even as we do this, I fully agree with Assoc Prof Randolph Tan that we need to pay attention to the quality of outcomes, to ensure that courses are useful for both individuals and also for the companies. This will have to be balanced with flexibility in utilising the credits, which many people have called for. So, again, there is a balance. We want more diversity, we want easy accessibility, but at the same time, we also want accountability and a lack of wastage. Going to extreme ends, on either front, will cause problems. So, we need to find where that middle ground is. In order to galvanise a culture of lifelong learning, we have, and we believe, that we should take a broad approach of supporting work-skills with the Credit. Our intent is to help Singaporeans deepen their existing skills, and also to provide options for people to broaden their horizons in areas outside their current fields. The courses we will support will clearly be diverse, comprising areas like Aerospace, IT and early childhood education, and also including areas, such as languages and culinary skills, which some may have a strong interest for and wish to explore career opportunities in. Mr Ang Hin Kee asked about the specific criteria for courses to qualify for the SkillsFuture Credit. To ensure quality, courses will need support from WDA, MOE or other public agencies to qualify for the credits. We will look into the helpful suggestions from many of you to see how we can help Singaporeans from all walks of life to benefit, including stay-at-home parents, the self-employed and also persons with disabilities. The full range of courses will need to be inclusive and will be released closer to the implementation of the Credit.

    COMMITTEE OF SUPPLY – HEAD S (MINISTRY OF MANPOWER) - 2015-03-09 · READ THE OFFICIAL RECORD

  9. But we know that sometimes there are courses that are less than ideal and we will weed them out and continue to improve. We can make things better, especially now that we are enhancing the education and training landscape. Moving forward, MOE and WDA will enhance existing accreditation frameworks, taking into account the important points raised by many of the Members here about ensuring the rigour and relevance of training. Mr Low Thia Khiang may wish to note that we will be implementing the various SkillsFuture initiatives in phases to ensure that the training landscape is able to develop in tandem with the new measures. We need to avoid a case where training institutions face this sudden surge in demand and resort to offering sub-standard programmes or expanding class sizes and compromising on quality. This will lead to a wastage of both individuals' time and public monies. Therefore, we have staged the implementation according to readiness and capacity. Let me elaborate. We will start with a significant number of initiatives that are ready to go. These are the SkillsFuture Mid-Career Enhanced Subsidy, SkillsFuture Earn and Learn Programme, SkillsFuture Study Awards, SkillsFuture Leadership Development Initiative and the SkillsFuture Mentors. Page: 69 In 2016, we will implement the SkillsFuture Credit and the SkillsFuture Fellowships. Various Members of Parliament have asked questions related to the implementation of this SkillsFuture Credit. Under the SkillsFuture Credit, more than two million Singaporeans aged 25 and above will receive an opening balance of $500 in credits next year.

    COMMITTEE OF SUPPLY – HEAD S (MINISTRY OF MANPOWER) - 2015-03-09 · READ THE OFFICIAL RECORD

  10. They must value-add to their students' personal and professional development by offering relevant and high quality programmes. I will elaborate on this later. SkillsFuture is exceedingly important. It is truly a national movement involving all stakeholders. The Government is a key enabler and we will provide the necessary infrastructure and resources. Deputy Prime Minister Tharman had shared how SkillsFuture Page: 68 will support learning through a wide array of initiatives. I will elaborate further. First, on training landscape. We must ensure that the course offerings are of high quality, a wide variety – as Ms Rita Soh emphasised – and delivered through multiple modes of learning. We have taken a significant step towards this with the opening of two new CET campuses last year. Mr Zainudin Nordin had acknowledged this. These CET campuses are focal points. They complement our Universities, Polytechnics and ITE in providing a continuum of diverse learning opportunities for Singaporeans throughout life. Today, there are over 25 partners delivering training and other CET-related services at both these campuses. I fully agree with Mr Ang Hin Kee, Ms Foo Mee Har and Assoc Prof Randolph Tan that we must ensure that this education and training is high quality, industry-relevant and ultimately, it must deliver good outcomes for Singaporeans. To ensure that courses are industry relevant, our Institutes of Higher Learning (IHLs) co-develop course curricula with the industry. Again, industry must play a part and participate in this. The various Singapore Workforce Skills Qualification (WSQ) frameworks were also developed in close consultation with the tripartite partners. This system has served us well and our local graduates are highly employable.

    COMMITTEE OF SUPPLY – HEAD S (MINISTRY OF MANPOWER) - 2015-03-09 · READ THE OFFICIAL RECORD

  11. It takes time and deliberate effort to develop this experience in our employees. In this tight labour market, employers have to shift away from this "plug and play" mindset to one which proactively develops every one of their workers, providing career pathways and valuing their contributions as they advance. Employers play a critical role in this. If you do not develop those pathways, if you do not develop a fair remuneration scheme, SkillsFuture cannot take off if you do not play your part. One way to do this is through offering meaningful internships, participating in the SkillsFuture Earn and Learn programme, or being part of the SkillsFuture Leadership Development Initiative. In turn, companies will have access to a more skilled workforce that will enhance their competitiveness and productivity. We will reach out to businesses to share with them how they can benefit from the various SkillsFuture initiatives. I call on all companies to come forward proactively and be part of this process. Next, let us talk about individuals. This is about you and I, every Singaporean. We must take ownership of our own learning and careers. We cannot think about lifelong learning as something that is more suitable for the rank and file, or blue collar jobs. It is for everyone of us. Given how fast the labour market and skills needs are changing due to technology and restructuring, learning can no longer stop when we step out of school. We, as parents, teachers and individuals need to constantly re-invest in learning, throughout our lives. The example of Watson earlier will show that technology is not just impacting rank and file workers. It impacts the work of professionals as well. Finally, education and training providers.

    COMMITTEE OF SUPPLY – HEAD S (MINISTRY OF MANPOWER) - 2015-03-09 · READ THE OFFICIAL RECORD

  12. To give you a sense of the scale, DBS Bank itself produces about 700 to 800 such reports every quarter. In the past, it was impossible for any single relationship manager to read all these reports. But Watson can and, given its huge computing power, it will continue to do so at increasing rates. To remain competitive in this rapidly evolving environment, our businesses must capitalise on technological advancements to innovate, so as to establish new areas of competitive advantage, keep ahead of the curve and grow within our national manpower constraints. DBS started using Watson for precisely this reason. Ms Frances Boon, Senior Advisor at DBS, told us that their adoption of Watson was a pre-emptive move. Rather than waiting for technology to impact DBS, they wanted to explore it first, so that DBS is ready to move to the new business models when change occurs. As our businesses restructure and move up the value chain, you will realise that jobs will have to evolve. Singaporeans need to move towards higher value skills, so that they can stay relevant and capitalise on opportunities in the new-age economy. Page: 67 Developing Singaporeans has always been our priority but this is the right time to make a further concerted push due to the shifts I outlined. Moving forward, it has to be about quality. Quality growth, quality companies and quality skills in every individual. With SkillsFuture, we have embarked on a major new phase of investment in our people, to develop every Singaporean to the fullest, not just in school but throughout life. SkillsFuture can only succeed if everyone plays their part. First, employers. Today, many employers say that they cannot find Singaporeans with the right experience. But we all know, no one is born with experience.

    COMMITTEE OF SUPPLY – HEAD S (MINISTRY OF MANPOWER) - 2015-03-09 · READ THE OFFICIAL RECORD

  13. Unfortunately, this increase in local hiring sometimes allows companies to avoid the restructuring and the changes that they need to make. This Page: 66 increase in local hiring will not last. 2.15 pm In fact, we expect our local employment growth to slow dramatically in the next few years, dropping from this base of 95,000 last year, to around 20,000 per annum in the last part of this decade. This is largely due to our Baby Boomers gradually exiting the workforce and our smaller cohorts entering the workforce. I am highlighting this situation not to signal a change in our direction. There will be no change. We will continue to keep foreign workforce growth sustainable and allow it to grow at the current tight pace. The main message is this – taken together with the slowdown in our local workforce growth in these coming years, companies must note that we will experience a very significant tightening of the labour market going forward. If businesses do not become manpower-lean, if they do not become more productive, they will have great difficulties in finding enough manpower – be it local or foreign – to run their operations. The next significant change that I would like to talk about is technology. It is not new. Technology has always been changing businesses and jobs, but it will do so at an ever increasing rate. Many of you would remember IBM Watson, the super-computer that beat the world's best "Jeopardy!" player four years ago. Well, since then, Watson has upgraded and has begun to assist human beings in actual work settings. At DBS Bank, for example, Watson is now helping relationship managers read and process thousands of reports, crunch client data and give unbiased, tailored investment advice to their clients.

    COMMITTEE OF SUPPLY – HEAD S (MINISTRY OF MANPOWER) - 2015-03-09 · READ THE OFFICIAL RECORD

  14. As Mr Zainudin Nordin has pointed out, to be successful in the next phase of our economic development, we need to prepare and adapt to the structural shifts that are taking place in our economy and labour market, and to adapt to the world that is changing exceedingly fast. Over the next decade, our labour market will tighten further, and rapid advancements in technology will change the way we work, the way we communicate and the way we do business. Let me first elaborate on the tightening labour market. We commenced tightening the labour market in 2010. In the past few years, our deliberate policies have moderated foreign workforce growth steadily and progressively, from about 80,000 in 2011 to about a third of that, 26,000 in 2014. This is not because we have become manpower-lean. In response to Mr Thomas Chua, we are still some distance away from the world's most advanced economies. In the Construction sector, our value-added per worker is only a third of that in Finland or Denmark and half of that in the United States or Japan. In the Services sector, we are around 70% to 80% of that in the US or Japan. While foreign workforce growth has slowed, some companies have transformed but many companies resorted to hiring more local workers instead of restructuring or economising on manpower. The local employment growth was 95,000 in 2014. This is more than twice of the 38,000 in 2011. Having more jobs for our locals is a good thing. So, the high labour force participation rate is great and it is good to see more women and older workers coming back into the workforce. They contribute to augmenting household incomes and the data on that front has been very positive and strong.

    COMMITTEE OF SUPPLY – HEAD S (MINISTRY OF MANPOWER) - 2015-03-09 · READ THE OFFICIAL RECORD

  15. Their skills may have become outmoded and they have difficulties finding new jobs when they are in their 40s and 50s, when they still have to support their families, or have mortgages to pay. Mr Ong, for example, was retrenched after working for seven years with his company. Even though he was given a retrenchment package, he was anxious to get back to work as he needed to support his family, especially his two school-going children. I could only imagine how difficult those times were. Mr Ong, with guidance from his career coach from the WDA Career Centre, managed to secure a position in Beyonics International Pte Ltd as a Programme Manager. The new job is now nearer his home and with the shorter commute, Page: 65 he can spend more quality family time with his children. Mr Dharmarajan, 55, was retrenched in 2014 because his company relocated to another country. His career coach from WDA referred him to the Jobs Bank where he subsequently found a new job with a pay rise. Today, I will talk about our plans to help more Singaporeans like Mr Ong and Mr Dharmarajan secure quality jobs and opportunities through better skills and to prepare our people for the future. I will also talk about enhancements to the CPF system to better meet diverse retirement needs. Senior Minister of State Amy Khor will speak about the Fair Consideration Framework and the Jobs Bank, helping older workers remain in employment and mechanisms for dispute resolution. Senior Parliamentary Secretary Hawazi Daipi will cover further measures to uplift incomes in low-wage sectors and improve workers' safety.

    COMMITTEE OF SUPPLY – HEAD S (MINISTRY OF MANPOWER) - 2015-03-09 · READ THE OFFICIAL RECORD

  16. We need to meet the needs of today but, at the same time, to make sure that we look after the needs of our children's generation and the generations beyond that. We are making steady progress towards our goals. We are not doing too badly. In 2014, our economy grew 2.9%, creating 129,000 new jobs. These are the opportunities for our people. Citizen unemployment rate remains low at 2.9%, and as I have always mentioned, low unemployment does not mean zero unemployment. It is one of the lowest in the world. In 2014, real median income – meaning that you have compensated for inflation –grew by 1.4%. If we looked at a longer five-year time horizon and we take out year-on-year volatilities, between 2009 and 2014, real incomes have grown by 2.1% per annum at the median and 1.5% per annum at the 20th percentile. We have managed to achieve positive real income growth and avoid the wage stagnation that many developed economies are facing. I am always reminded of this every year I meet with my G20 counterparts. I do not relish the challenges that they are grappling with: high youth unemployment, high unemployment, slow economic growth, wage stagnation and in some countries, the wages have been stagnating for many years. In some instances, wages have declined. It is important to look at what is happening in the rest of the world because the same pressures that are brought to bear in those societies are happening to us as well. But we are managing quite well. We are in a relatively strong position. But as we continue to build on what we have achieved, we must also ensure that Singaporeans who encounter difficulties are not left behind. These are hardworking Singaporeans who lose their jobs when companies restructure. Restructuring is inevitable as the world changes.

    COMMITTEE OF SUPPLY – HEAD S (MINISTRY OF MANPOWER) - 2015-03-09 · READ THE OFFICIAL RECORD

  17. This will be a society where everyone can maximise his or her potential and realise his or her aspirations. Where Singaporeans can take pride in being really good at what they do and are recognised for their skills, regardless of their academic qualifications, regardless of the schools they come from, regardless of the uniform they wear, or the sector that they work in. Underpinning this, there must be an open and level playing field for everyone to have a fair chance to progress, based on their skills, based on their effort and own merit. At the end of a fulfilling career, we want each and every Singaporean to have peace of mind in retirement. A secure retirement that is made possible primarily by our own savings but we also want a system that does not impose a burden on future generations. For this to happen, we need a system of savings that is anchored on personal responsibility, but with employers and the Government pitching in and playing a critical role to augment it. A system that is flexible enough to cater to differing Singaporeans' needs but, at the same time, remembering very clearly that we cannot compromise its core objective of helping Singaporeans set aside sufficient funds for their retirement years. Page: 64 Visions are important, but in this society that is based on a democracy of deeds, we must be able to translate these ideas into realities for all Singaporeans. Words are cheap, but actions speak a lot louder. But as we all know, there are no straightforward answers because there are so many perspectives to consider and difficult trade-offs to be made, but the effort must be put in to see how inclusive we can be. We need to balance the needs of the individual with that of society.

    COMMITTEE OF SUPPLY – HEAD S (MINISTRY OF MANPOWER) - 2015-03-09 · READ THE OFFICIAL RECORD

  18. Mdm Chair, I would like to thank Members for the 53 cuts submitted for our Ministry. Page: 63 Before I begin, let me take a step back to talk about our longer term goals for Singapore. While we address the specific cuts, it is important to remember what exactly we are trying to build here in this place we call home. We want to build on what we have achieved over the many years, and work towards creating an environment where there are better jobs, higher incomes and a more secure retirement for all Singaporeans towards their latter years. I have met many people in the course of my work, and they are at different stages of their lives, each having their own aspirations, their own expectations, different opportunities and challenges facing all of them. Everyone has their own story to tell. Our shared vision must be expansive enough to reflect these differing aspirations and our society must be inclusive enough so that everyone has a stake in our future. In this inclusive society we call Singapore, all Singaporeans must have access to quality jobs. Whether you are looking at something fast pace, or something slower pace, something meaningful, or something financially rewarding, the range of opportunities must be created. Therefore, we must nurture a vibrant economy to anchor quality jobs in Singapore. We will equip our people with the necessary skills for these jobs and to help them continuously upgrade themselves to remain relevant throughout their lives. We should have safe and progressive workplaces. And when some falter, as invariably some will do, we must be there to support our fellow Singaporeans, help them get back on their feet, so that they can, in turn, look after their loved ones.

    COMMITTEE OF SUPPLY – HEAD S (MINISTRY OF MANPOWER) - 2015-03-09 · READ THE OFFICIAL RECORD

  19. As at December 2014, about 98,000 Singaporeans held a Taxi Driver’s Vocational Licence. About 56,000 of them were registered with taxi companies. The average net monthly earnings, less expenses, of taxi drivers in 2014 was $3,173 for a single-shift operation, and $5,933 for a two-shift operation. Of the employed resident taxi drivers in 20141, about eight in 10 were aged 50 and above, and over nine in 10 possessed non-tertiary educational qualifications. We do not have data on how many taxi drivers were formerly in Professional, Managerial, Executive and Technical (PMET) jobs. Page: 155

    INFORMATION ON TAXI DRIVERS - 2015-03-05 · READ THE OFFICIAL RECORD

  20. Since then, it has organised several training programmes on developing and implementing FWAs. For employers who require further assistance, TAFEP also engages work-life consultants to provide on-site consultation and advice. We are glad to note that through these efforts, the number of employers in Singapore that offered at least one form of FWA has increased from 38% in 2011 to 47% in 2014. We will continue to work closely with our tripartite partners and study international norms on Page: 130 how best to encourage more employers to offer FWAs at their workplaces. Page: 131

    SCHEMES TO PROMOTE FLEXIBLE WORK ARRANGEMENTS - 2015-03-03 · READ THE OFFICIAL RECORD

  21. Flexible work arrangements (FWAs), such as telecommuting or flexible working hours, are important means for employees to find the right work-life fit that suit their work and personal needs. FWAs also enable employers to attract and retain employees and keep them engaged at the workplace. To encourage more employers to offer FWAs, we have put in place a range of initiatives. Employers can receive up to $160,000 in funding support under the WorkPro Work-Life Grant, which was launched on 1 April 2013, to implement FWAs and sustain them over the longer term. As of December last year, there were 287 successful Work-Life Grant applications with $13.2 million in funding being committed. We recently streamlined grant requirements in July 2014 to make the grant more accessible to companies. We will continue to monitor the take-up rate for the grant and review the scheme where necessary. Senior Parliamentary Secretary Hawazi Daipi also chairs a national Tripartite Committee (TriCom) on Work-Life Strategy to oversee initiatives to help employers implement FWAs. The TriCom recently launch a Tripartite Advisory on FWAs in November last year to provide a step-by-step guide for employers, supervisors and employees on implementing, managing and using FWAs effectively at their workplaces. The TriCom also organised a week-long campaign to create greater awareness and build employers' capabilities in implementing FWAs. This was held in conjunction with the biennial Work-Life Excellence Award that recognised organisations and individuals for their achievements in championing work-life harmony. The Tripartite Alliance for Fair and Progressive Employment Practices (TAFEP) expanded its mandate last year to promote progressive employment practices, including FWAs.

    SCHEMES TO PROMOTE FLEXIBLE WORK ARRANGEMENTS - 2015-03-03 · READ THE OFFICIAL RECORD

  22. Central Provident Fund (CPF) members turning age 55 from 2013 with at least $40,000 in their Retirement Account (RA) at age 55 or $60,000 in their RA at age 65 will be automatically included in CPF LIFE. Mainstream members in the first cohort to be automatically included will only commence their monthly payouts from CPF LIFE from 2023. CPF members who are currently receiving a monthly payout from CPF LIFE have chosen to opt in. For the cohort of CPF members who reached their drawdown age of 63 in 2014 and are eligible to draw down on their savings, 15% have opted into CPF LIFE. The median monthly CPF LIFE payout among them was $394. It is not meaningful to extrapolate future CPF LIFE payouts for successive cohorts because the distribution of payouts is dependent on the average balances of members who have chosen to opt in. However, CPF balances have been improving over time, and CPF LIFE payouts for successive cohorts will also increase correspondingly. Page: 85

    AVERAGE MONTHLY ANNUITY PAYMENTS FOR CPF LIFE MEMBERS AT DRAWDOWN AGE - 2015-02-13 · READ THE OFFICIAL RECORD

  23. Members who top up their own Special or Retirement Account using cash can also enjoy tax relief of up to $7,000 per calendar year.

    ALLOWING MIDDLE-INCOME WORKERS ABOVE AGE 50 TO INCREASE CPF CONTRIBUTIONS TO REDUCE TAX LIABILITY - 2015-01-29 · READ THE OFFICIAL RECORD

  24. Mdm Speaker, our objective is to ensure good employability for all Singaporeans. The CPF contribution rates for older workers Page: 27 above 50 were lowered in the past to do precisely that and, basically, to enhance employability for older workers. Why is that so? Seniority-based wage systems were common then, which discouraged employers from retaining and hiring older workers. The employment rates of older workers have since improved considerably although, by and large, when you compare older workers with younger workers, the employability of younger workers is generally higher than the older workers themselves. Good progress has also been made by tripartite partners in wage restructuring and other efforts to help them be employed and also to stay employed. We have consulted our tripartite partners and reached consensus that the CPF contribution rate for workers aged 50 to 55 should be restored to the same level as younger workers. The increase in contribution rates has been phased in gradually to moderate the impact on business costs and take-home pay of the employees. Since September 2012, we have twice increased the CPF contribution rates for older workers aged 50 to 65, with the latest increase effective from 1 January this year. In particular, the CPF contribution rate for workers aged 50 to 55 has been raised by five percentage points since 2012, and is now two percentage points lower than for workers below the age of 50. We are now studying when to take the next step to increase CPF contribution rates for older workers. CPF members who wish to voluntarily contribute more to their CPF can do so through the Minimum Sum Topping Up Scheme (MSTU) to build up their CPF savings for retirement.

    ALLOWING MIDDLE-INCOME WORKERS ABOVE AGE 50 TO INCREASE CPF CONTRIBUTIONS TO REDUCE TAX LIABILITY - 2015-01-29 · READ THE OFFICIAL RECORD

  25. The Employment Act (EA) stipulates minimum labour standards to be complied with by all employers and so ought to be kept basic. Under the EA, an employee who has served an employer for at least three months is entitled to seven days of paid annual leave in the first year of service. Subsequently, for every year of service with the same employer, he is entitled to an additional one day’s paid annual leave, up to 14 days. However, employers are encouraged to consider more generous leave benefits as a strategy to attract good workers in this tight labour market. A 2014 survey by the Ministry of Manpower showed that many companies already provide more days of annual leave than what is legislated. About half of the establishments2 provided more than the minimum seven days of annual leave for their rank-and-file employees, and 35% already provide 14 days or more. Employees, who see that their organisations are more generous than just following the minimal provisions of the law to protect the most vulnerable, are likely to be more committed. A more motivated workforce can, in turn, benefit employers in terms of lower absenteeism, higher staff retention as well as better productivity. Page: 110

    INCREASING CURRENT MINIMUM ANNUAL LEAVE ENTITLEMENT UNDER EMPLOYMENT ACT - 2015-01-20 · READ THE OFFICIAL RECORD

  26. Companies that were approached by MOM and TAFEP have generally responded positively and are supportive of upholding fair employment practices. For unresponsive and recalcitrant employers, we are prepared to take further action where necessary. To conclude, let me emphasise that there is no place for employment discrimination in Singapore and the current penalties in place are sufficient to deter such practices. We will continue to monitor the situation closely and will review our approach if necessary.

    STRENGTHENING PENALTIES FOR COMPANIES THAT DISCRIMINATE AGAINST SINGAPOREANS IN HIRING - 2015-01-20 · READ THE OFFICIAL RECORD

  27. The Ministry of Manpower (MOM) takes a firm stance against discriminatory employment practices. All employers are expected to consider Singaporeans fairly by complying with the Fair Consideration Framework (FCF) and the Tripartite Guidelines on Fair Employment Practices. MOM does not hesitate to take action against employers who are found to have discriminatory employment practices. Last year, MOM investigated and took action against 150 firms for having discriminatory employment practices. Some were given stern warnings while others had their work pass privileges curtailed for up to two years. We might also name and shame these employers. One example is Prime Gold International Ltd after investigations revealed that the firm discriminated against Singaporean employees by unfairly replacing them with foreigners. There has been a couple of high-profile cases highlighted in the media recently. I would like to assure the House that my Ministry has looked into the cases and will take the necessary action when investigations are completed. Page: 100 Besides acting on complaints, we also proactively identify and engage firms with a disproportionately low share of Singaporeans compared to other firms in their industry. We have identified some firms with shortcomings in their HR practices and required them to implement an action plan to address these shortcomings. We also scrutinise their work pass applications closely. However, enforcement alone cannot be the only way to address the issue of unfair and discriminatory employment practices. We have complemented our enforcement action with the Tripartite Alliance for Fair and Progressive Employment Practices (TAFEP)’s promotion and education efforts. Our current approach has worked well.

    STRENGTHENING PENALTIES FOR COMPANIES THAT DISCRIMINATE AGAINST SINGAPOREANS IN HIRING - 2015-01-20 · READ THE OFFICIAL RECORD

  28. The Work Injury Compensation Act (WICA) offers a no-fault, expeditious and low-cost route to compensation for any injury arising out of and in the course of employment. To ensure that payouts under WICA remain relevant, my Ministry will conduct regular reviews on its compensation limits to account for changes in nominal median wages and healthcare costs. We had increased WICA’s compensation limits twice since the Act was expanded to cover all employees in 2008 and the last increment was made in 2012. We are in the midst of our three yearly review of the compensation limits and will announce more details once the review is completed.

    REVIEWING PAY-OUTS UNDER WORK INJURY COMPENSATION ACT - 2015-01-20 · READ THE OFFICIAL RECORD

  29. Our recent announcements, such as mandating a minimum R1 proportion in the construction sector from 2017 onwards, support this shift. A productive economy has to be well-supported by an experienced and highly skilled workforce. I strongly urge all industries and firms to invest in raising the quality of their workforce and other productive technologies in rising up to our productivity challenge.

    MANPOWER-INTENSIVE INDUSTRIES IN PRODUCTIVE ECONOMY - 2015-01-20 · READ THE OFFICIAL RECORD

  30. The Ministry of Manpower understands that foreign manpower needs differ across sectors. We have catered for sector-specific needs by applying different dependency ratio ceilings to the five broad sectors – construction, manufacturing, services, marine and process. In general, higher dependency ratio ceilings are granted to industries where the nature of work tends to be relatively unattractive, as locals are less inclined to perform these jobs. For instance, both the construction and process sectors enjoy a very high dependency ratio ceiling of seven foreign workers for every local worker hired. We have also provided flexibility in industries where there is an essential economic or social need on an exceptional basis. This explains why we have specific provisions for industries like conservancy and healthcare. While some flexibility is accorded, we cannot afford to entrench our dependence unsustainably on large numbers of low-skilled foreign workers. For the industries that many of us perceive to be "manpower-intensive" and "heavily dependent on foreign workers", we should ask ourselves whether such industries are similarly labour-intensive in other Page: 95 developed countries. Often, they are not, with reliance on technology or self-service instead. The higher productivity level of such industries then allows higher wages to be paid. So, we must change the nature of work of many labour-intensive industries to be manpower-lean. Even if it is difficult to attract locals to do such roles, it should still be done with fewer foreign workers, who have good skill levels. Manpower-intensive industries, such as construction can rely on less manpower once a better quality workforce is built up.

    MANPOWER-INTENSIVE INDUSTRIES IN PRODUCTIVE ECONOMY - 2015-01-20 · READ THE OFFICIAL RECORD

  31. Mdm Speaker, I would like to thank the Member for her question and concern. We will watch this space. I am not sure whether it is the role of the Government to step in to build these dormitories and manage them. Whether the Government-linked companies or JTC steps in or not, that is a decision that they have to take. But we recognise the concerns that the Member has raised. It is something that we are fully aware of and we will track the developments as they go on.

    FOREIGN EMPLOYEE DORMITORIES BILL - 2015-01-20 · READ THE OFFICIAL RECORD

  32. The reason why this Bill is in place is so that we can make sure that these measures and parameters are worked in early. The existing space for some of the smaller living accommodation and spaces do remain important. They are quite substantial in numbers and we do want to make sure that the regulations continue to be enforced. What the Member raised is not about the regulations not being comprehensive. It is about enforcement. Is it sufficiently effective? So, we recognise that. Enforcement is in place but we will step it up.

    FOREIGN EMPLOYEE DORMITORIES BILL - 2015-01-20 · READ THE OFFICIAL RECORD

  33. Mdm Speaker, I am not sure "herding" will be the appropriate term to use in this context. But the idea is that, going forward, we will be building more PBDs of that size. We would like to shift more of the housing accommodation needs of our foreign workforce into that sector. It does not mean that the need for some of these factory-converted dormitories (FCDs) does not exist. We do know there are also many FCDs, for Page: 88 example, that do need regulations and which are of a suitable standard to provide housing and accommodation for the foreign workforce. There is a reason for that, because housing them, for example, onsite, would actually be a lot more productive, would save a lot of time, I think for the foreign workers themselves as well. But the standards must be met. As we go forward, as we build and provide more of this bed space elsewhere, we would also look at the approval process for the different accommodation for workers. For example, URA has also issued some guidelines on some of the areas. If we have a number of FCDs and we feel that the density has exceeded what we feel is comfortable, we will place a cap and basically not allow further FCDs on those premises. But as we have more PBDs, we will begin to see more and more of our foreign workforce living in those conditions. And there are better controls, which is why it is important to bring about this Bill. It is also important to understand – and I have emphasised this repeatedly – that bringing about this Bill does not mean that the accommodation spaces and the needs of the workers who are staying in dormitories which are smaller than 1,000 beds are not important. They continue to remain important. And it continues to be important that we not only regulate but regulate them effectively.

    FOREIGN EMPLOYEE DORMITORIES BILL - 2015-01-20 · READ THE OFFICIAL RECORD

  34. Mdm Speaker, I thank the Member for the follow-up question. We will go after the owners of the assets. The point that the Member raised in his speech was about eventually going all the way up to even the stakeholders, investors and so on. But in this particular case, we want to deal with the owners of the assets, those who are managing the dormitories and take action against them.

    FOREIGN EMPLOYEE DORMITORIES BILL - 2015-01-20 · READ THE OFFICIAL RECORD

  35. We want the contractors and developers to build this into the requirements and to the design of not only the physical infrastructure, but in the way in which they are run, so that the playing field is clear, all these things are fused in and we do not need to do this retrospectively. We will continue to work on this space to improve the management of our foreign workforce, whether in terms of their living or working conditions. Page: 87

    FOREIGN EMPLOYEE DORMITORIES BILL - 2015-01-20 · READ THE OFFICIAL RECORD

  36. Mdm Speaker, it is important for us to understand that this Bill addresses a specific issue, which is how best to regulate the larger dormitories, basically 1,000-bedders and above, because we are building PBDs of that size. It does not mean there are no regulations in place; it does not mean that the present regulations governing the welfare of the foreign workforce are inadequate. There are, for example, in the many instances highlighted in the media, the egregious cases we have seen over the past couple of months – in fact, over a long period, there have been various issues that have been cropping up – all those cases violate existing regulations. What we intend to do is to make sure those regulations remain in place. They continue to remain in place, even for the larger dormitories. But the larger dormitories bring with them a different scale, which is why it is important for us to provide some of these added requirements, because the scale adds a very different dimension to it. Now, does it preclude that we, going forward, do not bring in some of these measures for some of the smaller dorms? It does not preclude that. Does it mean that we will not eventually have an over-arching Bill that brings in together everything? No, it does not preclude that either. What we are saying is that there are already a lot of measures in place and continue to be in existence. We do not want to wait for this mother-of-all-Bills to cover everything, because it is pressing for us to address the 1,000-bedders and above, because these PBDs are coming online.

    FOREIGN EMPLOYEE DORMITORIES BILL - 2015-01-20 · READ THE OFFICIAL RECORD

  37. Notwithstanding what we see sometimes online, I do believe that many Singaporeans do appreciate the contributions of foreign workers. In fact, in many of the surveys and in many of the conversations I have had with foreign workers, many of them are happy here. It is not a perfect life by any means, but many of them appreciate the kindness and warmth shown to them by the many Singaporeans whom they come into contact with on a daily basis. I echo Ms Foo's sentiment that we do not, and should not, inadvertently encourage discrimination or prejudice against foreign workers. To address what some critics have from time to time claimed, it would be wrong to associate the steps that we are taking to make dormitories safer, more secure and better able to meet the needs of the residents with the xenophobic sentiments. Once again, I do very much thank Members of the House for their support of the Bill. Many of the views that you echo and the concerns you have expressed, I share them wholeheartedly. As I have said, this Bill is meant to address a particular space. The space is a very large one. There are existing measures in place, there will be new measures and new initiatives put in place to further improve it and we look forward to Members' suggestions on how best to do that. As several Members alluded to, we do want to manage the common spaces so that we, and our residents, whether local or foreign workers as well, can all live and work together harmoniously, and we look forward to working closely with employers and industry, who play a very important role in shaping this, and with Members of the House to achieve this outcome. With that, thank you very much.

    FOREIGN EMPLOYEE DORMITORIES BILL - 2015-01-20 · READ THE OFFICIAL RECORD

  38. We do need enforcement to be strengthened. That is something that we plan to do. We have been carrying out enforcement and we do plan to step up efforts. We do need the community, just as in terms of managing the congregational issues that we face on the ground, we also need the community to provide us with information for us to act. We do receive many leads and so on, but we have also been on many wild goose chases – times when we were given information and we carry out the inspection and nothing is there. So, we also need to evaluate that. But information is important, whether through industry insiders, members of the public, the media or NGOs. It takes the community to play a part. When egregious cases are noticed, give us information and we will endeavour to act on it and take the necessary action. Mdm Speaker, this Bill will enhance the levers to address the different dynamics that come with larger dormitories. This Bill also seeks to provide a good and safe living environment for dormitory residents and manage the potential impact on surrounding Page: 85 communities. This Bill does not address all issues pertaining to the management of foreign workers. It is meant to address a particular trend; it is to address dormitories housing more than 1,000 foreign workers, because that is where we are going with a lot of PBDs. Existing regulations are in place, we will continue to work on them, along with other measures to better manage our foreign workforce in order to better look after them. They play, as many Members have highlighted, a very important role in building up Singapore, and it is our responsibility and duty to look after all our workers, whether foreign or local.

    FOREIGN EMPLOYEE DORMITORIES BILL - 2015-01-20 · READ THE OFFICIAL RECORD

  39. We are going to do the same for dormitories and housing arrangements for fewer than 1,000 workers. Nonetheless, there will be appropriate appeal and review mechanisms, including for compliance directives and the modification of licence conditions under both normal and extraordinary circumstances. For instance, for the modification of licensing conditions, the Commissioner must give a notice period of at least 14 days, during which the operator may make written representations. Clause 13(2) also states clearly the circumstances under which the Commissioner may issue a compliance directive, for instance, when the dormitory has contravened a licensing condition. We also recognise that, from time to time, there are genuine issues on the ground that even the best of regulations might not have been taken fully into account, particularly in areas where there are high concentrations of foreign workers. Agencies have, therefore, been working with Members and grassroots leaders to tackle the challenges on the ground, and we will continue with these efforts. I am glad that Mr Patrick Tay agrees that these interventions have helped to alleviate the challenges faced in his constituency and we will continue to work closely with him to address the remaining issues. On this note, I would also echo that whatever regulations we put in place, whether it is managing dormitories of 1,000 beds and more, or smaller, even in the present situation, we do see violations. My officers see violations every week. Are we able to eradicate them? It is probably difficult and probably not possible to say we can eradicate them completely. But we must endeavour to eradicate as much of them as possible. This is where we do need the strength of the regulations and the laws for us to be able to take action.

    FOREIGN EMPLOYEE DORMITORIES BILL - 2015-01-20 · READ THE OFFICIAL RECORD

  40. Nonetheless, we will encourage operators to provide additional services or amenities that best serve the specific needs of their residents. Ms Foo Mee Har and Mr Patrick Tay also highlighted the importance of managing alcohol sale and consumption. In the upcoming Liquor Control (Supply and Consumption) Bill, which MHA has tabled, will deal with this issue. Assoc Prof Randolph Tan noted the importance of ensuring that the new regulations are effectively enforced. I fully agree with that. Assoc Prof Tan can be assured that sufficient resources have been allocated to the task. On the other hand, I would also like to assure Ms Foo Mee Har and Mrs Lina Chiam that we will not go overboard either and that the powers of the Commissioner and inspectors will be exercised judiciously. They will have a wide range of tools and levers that can be calibrated according to the situation. For example, the offence of running a large dormitory without a licence is a particularly egregious one. We have, therefore, made this an arrestable offence. It is also imperative that the Commissioner has the powers to use compliance directives to respond effectively to disorder and risks to the dormitory residents' health and safety. In such exceptional circumstances, when time is of the essence, the Commissioner needs to have the power to direct dormitories to comply immediately with the necessary requirements, even if these have not been communicated beforehand. As many Members have shared, for instances of violations, we do take these quite seriously. The changes we have made in EFMA in the preceding years and some of these measures we are putting in Page: 84 place are to give the authorities more clout to be able to step in, in a much more decisive fashion.

    FOREIGN EMPLOYEE DORMITORIES BILL - 2015-01-20 · READ THE OFFICIAL RECORD

  41. We will provide some form of financial assistance to retrofit existing dormitories to ease operators into the new framework and reduce the need to pass on the cost through higher bed prices. More details will be provided to the industries when these are finalised. With regard to Ms Foo Mee Har's comments on the impact of the licensing tenure on the recovery of capital investments, dormitories with longer land leases may renew their Page: 83 licences if they comply with the licensing conditions and if the location continues to be deemed suitable for foreign worker housing. Ms Foo Mee Har also asked about the other measures in place to mitigate contingencies involving security and public order. We have kept such contingencies in view and consulted quite extensively with the relevant agencies, including SPF, MOH and NEA, when formulating the licensing conditions. Many of the requirements imposed on the dormitory operators are devised precisely to facilitate the intervention of the relevant agencies in an emergency. We would also like to assure Ms Irene Ng that it is not the intention of the Government to make dormitories restrictive places to live in. There are also extensive requirements pertaining to areas, such as social and recreational amenities, which ensure that dormitories better meet the needs of the residents. I would like to thank Mr Gan Thiam Poh for the suggestion to include other requirements in the licensing conditions. We have worked closely with the Members on the licensing conditions and have incorporated their inputs where possible. The licensing conditions set the minimum standards that the licensed dormitories have to comply with, and are intended to complement the broader suite of foreign worker management initiatives that I have earlier mentioned.

    FOREIGN EMPLOYEE DORMITORIES BILL - 2015-01-20 · READ THE OFFICIAL RECORD

  42. As PBDs are completed over the coming years, more bed spaces are coming online in the next few years, we have reasons to believe that the dormitory operators will need to keep prices competitive to attract tenants. At the same time, as I have mentioned earlier, we are also watching the space in terms of permission granted for other types of dormitories being set up, housing smaller numbers of workers in other types of accommodations. Let me point out that the additional requirements to be imposed through this regime have been included in the tender conditions for new dormitories since last year. What it means is that the bidders of these sites must calculate the necessary compliance costs, including the additional regulatory requirements of larger dormitories as part of their overall business plans and, therefore, adjust the costs in their bids accordingly. This mechanism will also allow them to ensure that they do not just pass on the cost. Often times, if you overbid for a particular project, you will have to find ways to recover that. But when all these requirements are upfront, they will have to factor that in so that they bid accordingly. This will help to manage the cost and to ensure that they do not transfer it on to others, especially to the workers. For existing dormitories which were not built to the new standards, as many Members have acknowledged, it is important for us to allow some flexibility on a case-by-case basis when it is extremely difficult for the dormitory to comply. We will give time and we support their effort. For instance, there may be space constraints and it might just not be possible to provide sufficient outdoor recreation space.

    FOREIGN EMPLOYEE DORMITORIES BILL - 2015-01-20 · READ THE OFFICIAL RECORD

  43. Mr Christopher de Souza and Mr Pritam Singh were also concerned that operators could potentially escape licensing by subdividing their premises to fall slightly below the threshold of 1,000 beds; or as Er Dr Lee Bee Wah mentioned, "What about the 999-bed dormitories?" We have recognised this and we know that people are very creative. Whatever laws that we come up with, they will find creative ways to circumvent them. For the vast majority of dormitories which will be Government-tendered, the proprietors are obliged to provide enough bed spaces for a predetermined number of workers. Any request for subdivision will be evaluated and will be subjected to approval by the relevant authorities. Moreover, we have made provisions in the Bill precisely to prevent Page: 82 this kind of gaming by empowering the Commissioner to deem a group of buildings, structures or facilities as one dormitory for the purpose of dormitory licensing. We are fully aware that there is a likelihood, in fact, in our discussions with the various stakeholders with the dormitory operators themselves, they have also raised various questions, "What happens if we have this, that and the other?" This is where we share the same concern as Members do, and we have worked it into the Bill so that we make sure we are able to prevent such gaming of the system. Members, such as Mr Yeo Guat Kwang, Mr Gan Thiam Poh, Assoc Prof Fatimah Lateef and Ms Irene Ng, have commented on the affordability of PBD beds, in particular, that dormitories may raise bed prices in response to the cost of meeting higher regulatory standards. The Government has also been injecting more land for development of PBDs over the last few years.

    FOREIGN EMPLOYEE DORMITORIES BILL - 2015-01-20 · READ THE OFFICIAL RECORD

  44. For example, there are areas where there, perhaps, may not be so many of such PBDs but there are facilities housing smaller numbers of workers, but there is a whole cluster of them which have needs to be met, and that is where recreational centres are being built to address those. There are practical reasons why this is so. For example, we are aware of security concerns. We are also aware of healthcare concerns. For smaller dormitories or smaller accommodation spaces, when outbreaks happen, you can manage it, you have quarantine. But when you have a much larger dormitory, the requirements are quite different, the scale is very different. We need to weave this into the design of the dormitories themselves. Instead of just lowering the threshold, the more practical approach, we believe, is to add on additional requirements for dormitories above 1,000 beds. I emphasise again: existing regulations continue to be there. They continue to be important. They continue to cover a wide range of the concerns that we have today, and they will be looked at and will continue to be strengthened over time. But for the many PBDs that are going to come on line – the existing ones and the new ones – we do need these additional requirements because the scale of those dormitories is quite different. These requirements will be on top of the existing levers which will continue to apply. Having said this, we will also bear in mind the suggestion, the possibility, of having different classes of licences in the future, should experience show that this is needed. Which is why the way the Bill is structured allows us to have the space to have different classes of licences and to be able to adjust the numbers accordingly, should the need arise.

    FOREIGN EMPLOYEE DORMITORIES BILL - 2015-01-20 · READ THE OFFICIAL RECORD

  45. We felt that, going forward, that is what we are going to do with PBDs – we are going to have a lot more of these and that is why it is important for this Bill to move now rather than wait for a complete solution. The rest of the other measures will unfold with time as we look into it and see how best to strengthen them. Over time, as more PBD sites are launched, we will expect the proportion of foreign workers staying in larger dormitories within the threshold to increase. As I have mentioned earlier, we will also manage in terms of the permission given for contractors and developers, in terms of requesting various sites to house their workers. As more of these PBDs come onsite, we will also begin to take a stricter view about how workers are housed elsewhere. Therefore, you will begin to see a lot more of them shifting towards PBDs. There is, therefore, this need to manage upstream the different dynamics that come with a larger site. As I have highlighted earlier, the 1,000-bed threshold was selected because of the different challenges posed by such larger dormitories, as well as the fact that the requirements that we will impose, such as outdoor recreation spaces and minimarts, are Page: 81 only possible actually in larger dormitories. For smaller dormitories – for smaller factory-converted dormitories, for example, they may not have the scale to be able to put in place some of these measures. There are other solutions. For instance, we also encourage the building of recreational centres which cater to clusters.

    FOREIGN EMPLOYEE DORMITORIES BILL - 2015-01-20 · READ THE OFFICIAL RECORD

  46. Where these requirements and standards are not met, we urge the public and Page: 80 those who are aware of such violations to raise them. Our authorities will inspect and take action. That is what a lot of officers do on a week-to-week basis. Mr Christopher de Souza, Assoc Prof Fatimah Lateef, Mr Yeo Guat Kwang, Mr Patrick Tay, Mr Pritam Singh and Mr Gan Thiam Poh had also noted that there is still a significant number of workers who are being housed in the dormitories that will not come under the ambit of this new Bill. This is one of the common concerns that have been raised by many about why only those dormitories with above 1,000 beds; how about those with less? They suggested lowering the 1,000-bed threshold to cover dormitories housing fewer workers. Assoc Prof Randolph Tan has also asked if concerns about unintended outcomes arising from the threshold had been considered. To put things in perspective, the threshold of 1,000 beds will cover all existing PBDs, and all the new PBDs coming onstream will offer 1,000 beds and above. That is where we are going with PBDs. It is important for us to factor in these requirements upstream, so that they are designed and worked into the building of the PBDs; not just the physical infrastructure, but the way in which it has to be run. It does not mean that the rest of the space is not being regulated; they are. It also does not mean that we will not look at whether and how to strengthen the regulations for the smaller dormitories or accommodations which house fewer than 1,000 beds. It is a considered decision. We had also debated why 1,000 beds, should it be fewer, should it be more. We looked at the spread of the different housing types and the numbers that they house.

    FOREIGN EMPLOYEE DORMITORIES BILL - 2015-01-20 · READ THE OFFICIAL RECORD

  47. Half of them are Malaysians. Many of them commute daily and do not need dormitories, or are workers in the manufacturing and services sectors who may live in rented residential premises near their workplaces. With regard to Ms Foo Mee Har's query on how the locations of dormitories are determined, the relevant Government agencies do take into account many factors, including technical and infrastructural constraints like suitability of roads, adequacy of sewers in the area as well as recreational and social amenities that the dormitory can support. I would also like to assure Mr Gan Thiam Poh that similar care is taken in determining the capacity for each dormitory as well as the number of dormitories allowed within an area. This level of coordination is going on across Government agencies and we do continue to want to strengthen that. This may not always be apparent because this often takes place in the background. But this work will continue and we will continue to emphasise and strengthen the collaboration and cooperation across various stakeholders. Mr Gan Thiam Poh also raised the issue of whether employers from specific sectors should be allowed to house their workers in better-equipped PBDs. While the Government's view is that PBDs can better cater to Work Permit holders' housing needs, there are also merits to housing workers on or near their worksites. For example, this would alleviate the need to transport them back and forth. There will be an impact on productivity. There will also be less loading on the public transport system during peak hours. Therefore, such non-PBDs still remain a space which we need to look at in terms of providing housing options, provided they continue to meet the existing regulatory requirements on appropriate housing standards.

    FOREIGN EMPLOYEE DORMITORIES BILL - 2015-01-20 · READ THE OFFICIAL RECORD

  48. For example, in terms of existing regulations – in terms of enforcement – last year, MOM alone took more than 1,400 employers to task for providing unacceptable accommodation to their workers. We relocated close to 3,000 as a result of poor living conditions. We have prosecuted offenders in egregious cases. Other agencies, such as URA, NEA and SCDF have also taken errant premises owners to task for flouting existing regulations which cover areas, such as illegal subletting, inadequate bathing and toilet facilities and overcrowding. As the Government, we are not only stepping up enforcement Page: 79 of existing requirements, but we are also continuing to review and raise these standards over time, and this is what we are going to do. This Bill addresses one part of the issue, which is dealing with the dormitories that are far larger. The rest of the other regulations continue to be in place, tracked and strengthened over time. In particular, housing types raised by Members, for example, onsite workers' quarters – that is one area that we are looking at as well. I would also add that the authorities are also watching the density and use of these sites. Apart from managing the standards that are expected and required, we are also looking at what sites ought to be approved, where are the areas that ought to be approved and, as we build up more PBDs, we are also looking at being a lot stricter in giving approvals for the use of various premises for housing foreign workers. Let me also state this again about foreign workers being housed in dormitories. The dormitories are more relevant for non-Malaysian workers in the construction, marine and process sectors. This group forms only about half, not the whole of the 770,000 or so Work Permit holders in Singapore.

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  49. I do agree, for example, in various instances highlighted by a number of Members – Mr Christopher de Souza, Mr Yeo Guat Kwang, Mr Pritam Singh, Mrs Lina Chiam, Mr Gan Thiam Poh and Ms Irene Ng – of workers being housed in poor, unhygienic conditions. I do know because I accompany my officers when they go for inspections and I have seen many of such similar cases. Does it mean that every single accommodation in Singapore is in that fashion? No. Are there egregious cases? There are. But I would like to emphasise that these instances that we see, they are unacceptable; and in many instances, they already violate existing laws. Regulatory agencies will take to task any person found to have violated the prevailing standards and ensure that the affected workers are relocated to approved accommodations. My officers are out every week inspecting, following up on leads and tip-offs. Many of these do not make it to the headlines. What you see represents some of the cases that have been highlighted, some have been tipped off to the media, some have been tipped off by the public, some by the NGOs, and they are valid because there are these cases and many more that our people see. We do need to deal with them. But does it mean that, across the board, the situation is dire, as highlighted by Ms Foo Mee Har? We have taken this issue on board. We have tried to make sure that we survey the foreign workers in a large enough sample to understand what are the conditions. Our survey showed that nine in 10 foreign workers are satisfied with working in Singapore and an equally high proportion would recommend that their friends come here to work. Again, that does not mean that there are no egregious cases.

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  50. Mdm Speaker, I would like to thank Mr Christopher de Souza, Mr Yeo Guat Kwang, Assoc Prof Fatimah Lateef, Mr Pritam Singh, Mrs Lina Chiam, Mr Gan Thiam Poh, Assoc Prof Randolph Tan, Ms Irene Ng, Er Dr Lee Bee Wah, Mr Patrick Tay and Ms Foo Mee Har for their views and support for the Bill. We all acknowledge the importance of the Bill as a progressive and much needed measure to provide the Government with additional levers to manage larger dormitories over and above current regulations. With that in place, we will be able to better design dormitories and to deal with these issues upstream when we are designing the dormitories, so that we can ensure that we provide better living, social, recreational alternatives for workers. This will also help to facilitate the harmonious co-existence with our residents from the surrounding communities. A number of Members raised comments on a broad range of issues, including employment standards and protection for workers. They are all important. I would like to again emphasise that the management of a foreign workforce is a very wide-ranging topic. A number of these measures are already in place. A number of major steps have been put in place in the preceding years. For example, the changes that we have made to the Page: 78 Employment of Foreign Manpower Act represent a step in that direction. I would address most of the concerns specific to the issues of the Bill which is about regulating larger dormitories, but I would also like to take the opportunity here to make some broader points about the state of foreign worker welfare in Singapore; they are from some of the descriptions and points raised. It is important for the House not to have the wrong impression that there is widespread mistreatment of foreign workers in Singapore.

    FOREIGN EMPLOYEE DORMITORIES BILL - 2015-01-20 · READ THE OFFICIAL RECORD