Tan Chuan-Jin
Singapore
“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.”
“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.”
“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.”
“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.”
“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.”
“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.”
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“With these enhanced levers, I am confident that we will be able to provide a good and safe living environment for dormitory residents and manage the dormitories' potential impact on their surrounding communities. Managing our foreign workforce is a wide topic. It is being addressed on many fronts. This Bill, in particular, addresses a specific area of concern, which is how best do we regulate the larger dormitories that are going to come online. With that Madam, I beg to move. [(proc text) Question proposed. (proc text)] 3.17 pm”
“There are currently four such centres and more will be launched over the next two years. In addition, we will step up measures to educate foreign workers about Singapore laws and social norms. For known foreign worker gathering areas, we can deploy additional uniformed Auxiliary Police Officers and devote extra resources to step up cleaning efforts to meet the needs of residents living nearby. Our agencies also stand ready to work together, as we have done so with Members of Parliament and grassroots leaders to address local issues in a coordinated manner. Mdm Speaker, this Bill is the result of a lot of effort, work done over the past number of years. There have been extensive consultations with stakeholders and Members of the House. It is the culmination of intensive inter-Ministry work over a long period. Page: 46 This Bill gives us greater regulatory powers as larger PBDs are built to better address the housing and living needs of foreign workers. Due to the different dynamics that come with larger sites, it is necessary for the Government to start upstream and put in place these additional regulations. I will repeat, there are existing regulations that continue to be enforced and we continue to monitor them and to improve on them, to strengthen them as it goes on. Going forward, we will be seeing many more PBDs built of this scale, which is why it is important to add on some of these additional requirements, because the nature and dynamics of the far larger dorms are quite different from some of the smaller ones. For the smaller ones, some of the existing concerns can be addressed in different ways. I would, therefore, like to thank everyone who had contributed to making this Bill possible.”
“The industry has been largely supportive of the need for additional regulations for the larger dormitories. Nevertheless, we understand that existing large dormitories that were built based on earlier tender specifications may not be able to meet the new standards being set. We will, therefore, exercise some flexibility in implementation. We will allow a six-month transition period from the date the proposed Bill comes into effect in the second half of 2015 to enable them to level up their standards and obtain the necessary licence. We will also provide some assistance to dormitory operators to ease the transition and to mitigate the increased costs resulting from the additional requirements. Beyond the current Bill, I wish to assure Members that work on other foreign worker management initiatives is ongoing and different public sector agencies are doing their part. For example, agencies are keeping a close watch on areas where there are already clusters of foreign worker housing, especially where infrastructure, like roads and sewers, are unable to support further intensification. Since November last year, the Urban Redevelopment Authority (URA) has identified 12 industrial estates where it will no longer approve applications to convert factory space into new foreign worker' dormitories, as well as applications to increase the number of workers in existing factory-converted dormitories. The Government has also been launching dedicated foreign worker recreation centres, particularly in areas where larger numbers of foreign workers are housed. These centres provide alternative gathering spots for workers and offer a wider range of amenities that individual dormitories may not be able to.”
“If rectification is not done to the satisfaction of the Commissioner, the Commissioner can also step in to carry out any works specified in the directive, and recover the costs incurred from the licensed operator or proprietor. Secondly, under clause 15, the Commissioner may issue a business restriction directive. Dormitories that are issued a business restriction directive can continue housing existing residents, but will not be allowed to renew or extend existing tenancy agreements, or enter into new contracts for a specified period. Additionally, the Commissioner also has the power to require the operator to furnish a performance bond, suspend a licence for up to six months, or revoke a licence. The Commissioner may also disqualify persons from managing or holding licences to operate dormitories for specified periods. The offences under the new legislation must be effectively enforced on the ground. To this end, officers who are appointed as dormitory inspectors will be provided with the necessary powers to enter, search and collect evidence from premises. These powers take reference from those currently accorded to inspectors under similar legislation, such as the Employment of Foreign Manpower Act and the Employment Agencies Act. Our inspectors will also be empowered to arrest suspected unlicensed operators or proprietors. I wish to assure the House that our officers will exercise these enhanced powers judiciously, balancing health and safety imperatives while minimising disruptions to business continuity where possible. Page: 45 Ultimately, it is in our interest to ensure that the new legislation can be practically implemented. To this end, we have extensively engaged the dormitory industry over the course of the last year.”
“The Bill also sets out the proposed penalties for the various infringements and other enforcement actions that might be taken. We have deliberately set relatively high penalties as a deterrent. We have also provided for a broad suite of tools to allow the Commissioner to require that errant parties remedy their breaches. The highest proposed penalty is for operating an unlicensed dormitory under clause 7, and is a fine of up to $500,000, or imprisonment of up to two years, or both, for a first offence. For a repeat offence, the penalty will be doubled. We are also proposing a substantial penalty for the breach of each licensing condition. Clause 11 provides that the maximum penalty is Page: 44 a fine of up to $50,000, or imprisonment of up to one year, or both, for each condition contravened. Licensed operators who intend to cease operating a dormitory must apply to the Commissioner for approval at least 28 days in advance. This is to provide sufficient lead time for employers and dormitory residents to secure alternative accommodation. Cessation of operations without the Commissioner's approval is an offence under clause 20. Under clause 28, the Commissioner may choose to compound certain offences under the Bill, which are generally less severe in nature. This will allow flexibility to act against egregious breaches in a calibrated manner. In addition, we have put in place various provisions to ensure that any non-compliance can be remedied. Firstly, under clause 13, the Commissioner may issue a compliance directive to require the operator or proprietor to carry out specific instructions to remedy breaches or unsatisfactory operations, or in the interests of public health or safety.”
“In addition, the Commissioner may give a directive to the licensed operator to rectify a breach or unsatisfactory operations, or to do anything in the interest of public health and safety. If the licensed operator is prevented by the dormitory owner or proprietor from complying with any directive, we propose to be able to also hold the dormitory owner or proprietor accountable for failing to comply with the directive. I mentioned earlier that the Commissioner for Foreign Employee Dormitories will be able to impose conditions which licensed dormitories must comply with. Let me provide some examples of the conditions we will be imposing. These have been formulated in consultation with all relevant Government agencies; and informed by Members of Parliament, who have worked with us on foreign worker issues. One example is that operators must develop quarantine plans, in the event of an infectious disease outbreak, and provide sufficient sick bay facilities, based on guidelines set by the Ministry of Health. Another is to require operators to establish Emergency Response Plans in consultation with the Singapore Civil Defence Force (SCDF) and the Police to deal with fires or other potential public order incidents. To cater to residents' social and recreational needs, we will require licensed dormitories to have indoor and outdoor recreation areas; amenities like Automated Teller Machines (ATMs), minimarts and mail collection points; as well as regular recreational events during Sundays and public holidays. These provide convenient options for workers to socialise. It also means that they do not have to travel far to run simple errands and eating into their rest hours.”
“A Commissioner for Foreign Employee Dormitories will be appointed to oversee the administration of the new Bill. The licensing regime will effectively cover all current and upcoming PBDs, as well as all dormitories on industrial premises, and even on-site workers' quarters that meet the 1,000-bed threshold. All the new PBDs coming on-stream will meet this threshold. Over the next two years, as more PBDs become operational, these higher standards will accordingly benefit a greater proportion of foreign workers. Then, there is also the matter of practicality. Some of these requirements that we will impose, such as outdoor recreation spaces and minimarts, are only possible in dormitories with a certain physical capacity. But what about the "smaller" dormitories – those that do not quite cross the 1,000-bed threshold? What then? As I have mentioned earlier, it is important to remember that these "smaller" dormitories will continue to be subject to our existing comprehensive regulations to protect the safety and well-being of residents. Residential premises not covered under the Bill will also continue to be subject to existing regulations pertaining to fire and structural safety, hygiene, subletting and change of use. Page: 43 We have also taken care to ensure that there is proper accountability. The holder of the licence, who will be the operator, is responsible for the day-to-day running of the dormitory. Actions by the operator can have a large impact on residents' well-being. Hence, in assessing the suitability of an operator for a licence, we will look at the prospective operator's financial capacity and track record and whether the operator can comply with the licensing conditions.”
“First, the Government's longer-term view is that the accommodation needs of Work Permit holders are best met in such dormitories, where there are self-contained living, social and recreational facilities. We have been launching new and larger Purpose Built Dormitory (PBD) sites over the past few years and will continue doing so to meet housing demand for a foreign workforce, especially for the Construction, Marine and Process sectors. Such larger Page: 42 PBDs will form an increasingly prominent part of the foreign worker housing landscape. Second, and more importantly, there will be different concerns due to the scale of the developments. This Bill is, therefore, a progressive measure aimed at ensuring better design parameters and requirements that would be woven into the development of these new PBDs as they are being built. I would like to emphasise again that the existing regulations will continue to apply to both larger and smaller dormitories. The new regulations complement rather than replace existing ones. Madam, let me now move into the key provisions of the Bill. We propose to impose additional requirements on larger dormitories with 1,000 beds or more through a licensing regime. Dormitories which meet the threshold will be required to obtain a licence, in addition to complying with all existing regulatory standards. It includes existing dormitories which already house 1,000 foreign workers or are approved to house this number of workers, even if they currently do not. Broadly, the new licensing framework will mandate requirements that cover public health and safety, security and public order, and the provision and maintenance of social and commercial facilities and services. This is by way of licensing conditions which I will elaborate on later.”
“Mdm Speaker, I beg to move, "That the Bill be now read a Second time." We all want to maintain and strengthen the harmonious industrial relations that we have here in Singapore. Managing our foreign workforce well is part of the effort. It is a wide-ranging topic. Much has been done and other new measures will also be introduced in good time. This Bill is one part of the broader effort. It is the result of work put in over the past few years and specifically addresses the regulations of larger dormitories. I understand that there are current concerns regarding the housing and living conditions of some foreign workers and I appreciate the feedback that Members of this House and also fellow Singaporeans have been providing. Indeed, there is a comprehensive set of existing rules which regulate the living conditions of foreign employees, safeguard their safety and well-being and reduce disamenities on the neighbours. These apply to all forms of foreign worker accommodation and cover areas, such as building and fire safety, minimum living space and hygiene standards. These standards are in place and will be enforced and will continue to be so. Many of the unsafe or unsanitary conditions that some Members have referred to are conditions that already contravene these existing rules; and we have taken and will continue to take firm action against errant parties. All relevant Government agencies, such as the Building and Construction Authority (BCA), the Singapore Civil Defence Force (SCDF) and the National Environment Agency (NEA), are committed to not only step up enforcement of existing requirements and deter such transgressions, but to also continue to raise standards over time. So, why is this Bill needed?”
“Mdm Speaker, if the Member would like to file a specific Parliamentary Question (PQ) on this, but, broadly, I would say that there are many different sectors today, and not just the childcare sector, that face a challenge in terms of finding manpower. The reasons are as follows: by and large, the economy is doing relatively well. We do have many sectors that are growing and that represents a demand on manpower. Eventually, I think the market will have to find its own stabilisation point and this applies to the childcare sector as well. What we do want to make sure is that we provide the training and schemes and support the growth of the sector. But there are many different sectors growing as well and it is difficult to target it specifically. MSF is looking at various initiatives to expand this because we do recognise that there is a real need. We intend to make sure that schemes are available to train manpower. Page: 29 As to whether we can meet the demands, I think that is a broader issue that can be dealt with separately.”
“So, is there anything that can be done to address this shortage?”
“Mdm Speaker, we will be happy to do so, but I would like to emphasise that, apart from specific lead sectors, even as it is today, we are looking at providing a wide range of further development and skills upgrading for a full range of workers. What we want to stress is that there are particular sectors that we are emphasising, because they are large sectors that provide opportunities to many. But we recognise that not just for those who are operating individually. There are many different needs in society. So, we do intend to develop that space so that lifelong learning is not just confined to these sectors alone. Every Singaporean would have opportunities to develop themselves in their respective areas. We will be quite happy to take on feedback if there are particular areas and initiatives we think that we can introduce and see how they can be incorporated. But the main idea is that every Singaporean should have before him or her the availability of different schemes and opportunities to upgrade themselves, so that they can either deepen their skills in their particular profession or to switch sectors to do something different. Er Dr Lee Bee Wah (Nee Soon): Mdm Speaker, I would like to ask the Minister whether there is anything that can be done to address the acute shortage of manpower in the childcare sector – kindergarten and childcare – because, today, I see the situation of "musical chairs". When there is a new childcare centre being set up, there will be a lot of resignations from a nearby childcare centre because the new one cannot get the staff and just offer higher salaries. I do not think that this will solve the problem. I think we need to do more to train and attract more people into this sector.”
“So, one clear benefit of the SMS will be to provide SMEs with a clearer sense of the sector's direction and needs and draw together the necessary resources, from which SMEs can tap to support the attraction, retention, training and development of workers in their sectors. In addition, the Government also helps our SMEs through a range of schemes. These include the Enterprise Training Support Grant, Innovation and Capability Voucher (ICV) and the SME Talent Programme. SMEs that need customised advisory services can also approach one of the 12 SME Centres located islandwide. So, through these various measures, we believe that this is the way that we can work together to develop the space as we go forward.”
“On a broader level, SMS encourages a shift among employers – from a "plug and play" mindset where employers seek to hire workers who already have all the necessary skills, without further thought of development and training. This has changed. So we need to move on to an approach where employers will proactively develop every worker, providing career pathways and valuing their contributions as they advance. And some companies are already doing that. The Government will be a key enabler in these efforts, by providing resource support and helping to coordinate and enhance the linkages between all players. But the key really lies with industries, sectors and, especially the companies, in taking that step to develop their workers. As a start, we will focus our efforts on a set of lead sectors that have more pressing manpower needs. These lead sectors cover essential services, such as healthcare and social services; new growth sectors that provide exciting job opportunities for Singaporeans but do not necessarily have a ready pipeline of workers, such as biopharmaceuticals; and sectors facing significant manpower challenges, such as construction, retail and F&B. We will progressively expand our efforts to other sectors. In direct response to the Member's question, we will pay particular attention to our small and medium enterprises (SMEs). A large proportion of the companies in the lead sectors are SMEs. We recognise the manpower challenges that SMEs face and how they often have limited resources and bandwidth to plan for the future.”
“Mdm Speaker, the Sectoral Manpower Strategies (SMS) is a key initiative under the SkillsFuture Council that brings together employers, unions, education and training providers, and the Government to anticipate the future skills that will be needed and set out a strategy for developing those skills in our people. Each SMS seeks to achieve three objectives. Firstly, identify the current and future skills and manpower needs in the sector and where there will be quality jobs for our people. To do this, each SMS will need to identify the future skills that will be needed, given the industry outlook, stage of development, competitive landscape and impact of key driving forces, such as technology advancement. Secondly, based on the skills needs identified for the sector, articulate and develop clear career progression pathways that will set out the key competencies and skills needed to progress at each stage of the individual's career. These career pathways will be closely integrated with education, training and development so that there is greater fluidity between learning and working as the individual progresses in his career. In doing so, SMS achieves two objectives – it builds a future supply of talent to meet the sectors' needs and provides for more meaningful pathways for workers who choose to work in those sectors. Lastly, each SMS should include plans to better attract, retain and develop talent, so that workers can acquire deep skills, contribute in their chosen areas of expertise and have Page: 27 fulfilling careers, with progression not just in wages, but also to gain a deeper sense of pride and satisfaction that comes with mastery of skills.”
“Business employers are required to keep within their Dependency Ratio Ceiling (DRC) when hiring foreign workers. The DRC is calculated based on the company’s local workforce, as reflected via its CPF contributions to its employees. When a company reduces its local workforce or fails to make its CPF contributions on time, its Dependency Ratio will exceed the DRC. MOM will then request the company to rectify the situation by either increasing its local workforce or cancelling some work passes so as to keep within the DRC. In such instances, employers are given a choice as to which work pass holders to retain and which to let go. Employers are given ample opportunity to take remedial action before MOM cancels any work passes. We will also take in appeals from employers if the situation is rectified before the workers are sent home. Employers may still re-hire the workers if they have sufficient room within their DRC. To avoid unnecessary disruption to business operations, employers should ensure that they maintain sufficient local workers to keep within its DRC. Page: 159”
“The Singapore Workforce Development Agency’s (WDA)’s Professional Conversion Programmes (PCPs) are aimed at helping workers to undergo the skills conversion needed to fill positions at the Professionals, Managers and Executives (PME) level in industries where employers have identified critical manpower needs. Between 2011 and 2014, more than 230 applicants were successfully enrolled into the Healthcare and Social Work PCPs, which include those for registered nurses, occupational therapists, physiotherapists, diagnostic radiographers and social workers. About 10% of these successfully enrolled applicants were unemployed at the point of application and 30% were aged 35 and above.”
“If members are uncertain about whether they have already made a nomination, they can check their annual statement of account.”
“When a CPF member passes away without making a nomination, his CPF monies will be distributed by the Public Trustee in the same way as the distribution of his other assets in situations where the deceased did not leave a will; that is, as specified in the Intestate Succession Act. Distribution by the Public Trustee safeguards the welfare of his immediate family members. For example, if the deceased is single, his CPF savings will be distributed by the Public Trustee equally between his parents. If he is married, his spouse will receive half of his CPF savings and his children will share the remaining half. For Muslims, Page: 157 their CPF savings will be distributed by the Public Trustee according to the Administration of Muslim Law Act in a slightly different manner, but the beneficiaries remain the deceased member’s immediate family members. Should the member wish to distribute his CPF savings differently, the CPF Board’s nomination scheme provides him with an option to specify the recipients of his CPF savings upon demise and how much each recipient should receive. As of 30 September 2014, about 50% of all CPF members aged 16 and above had not made a nomination. For distribution through CPF Board’s nomination scheme and by the Public Trustee, monies are generally distributed within four weeks from the date of receipt of the full set of required documents from the deceased member’s beneficiaries. CPF Board provides comprehensive information on the distribution of CPF savings by the Public Trustee, as well as CPF Board’s nomination scheme, via a webcast on the CPF Board website. Members can also call the CPF Board hotline at 1800-227-1188 or approach staff at CPF Board’s service centres directly to find out more.”
“The breakdown of gross monthly income from work by percentiles as at June 2013, for full-time employed residents and Singapore Citizens who are Professionals, Managers and Executives (PMEs) is provided in the table below. Comparable data are only available for gross monthly income and residents and Singaporeans. As compared to Singaporean PMEs, the gross monthly income of resident PMEs is higher since Permanent Residents typically have to display good employability before they are granted residency. Page: 156”
“Under the Employment Act, the Commissioner for Labour may hear and decide on salary claims of employees covered under the Act, including a professional, manager or executive (PME) earning up to $4,500 a month. If an employer fails to turn up for the Commissioner’s inquiry without a valid reason, the Commissioner has the power to proceed to hear and make a decision in the absence of the employer, notwithstanding the fact that he is not present. If an employee who lodges the claim fails to attend the inquiry without a valid reason, his claim may be struck off. Given this, the Ministry is of the view that there is no need to introduce additional measures on any party to the claim who fails to turn up for the inquiry without a valid reason. In addition, every salary-related offence will be investigated and an appropriate enforcement action will be taken against the errant employer, including curbing his work pass privileges, imposition of composition fines and prosecution, which includes a fine or imprisonment or both.”
“We thank Assoc Prof Tan for his helpful suggestion that we make use of the information from the Jobs Bank to help jobseekers find jobs successfully. We intend to look into how data from the Jobs Bank can be used to supplement other available data to help job seekers. Having said that, we should bear in mind that the success of an individual's job search is affected by many factors, such as the economic situation, hiring needs of employers and whether the individual's skills match what is required by employers. During interviews, employers evaluate candidates based on criteria that might not be directly observable and captured in databases. Thus, the information from the Jobs Bank does not fully encompass an employer’s hiring considerations or factors which contribute to a successful placement. We encourage individuals who wish to have a better understanding of the factors contributing to successful placement to access resources, such as labour market information and job search guides, available on the Singapore Workforce Development Agency's websites. Job seekers who require more in-depth or personalised assistance can approach WDA Career Centres or the Employment and Employability Institute (e2i) to access a range of services and programmes. These range from Career Skills Workshops to equip job seekers with skills in resume writing, grooming and interviews, to personal or group coaching services for those who require more intensive career review and advice.”
“We encourage all employers to post their job vacancies on the Jobs Bank. It is a convenient platform, which is free-of-charge, for employers to search for the workers that they need. Over 63,000 Singaporeans have registered on the Jobs Bank so far. This is a good pool of potential employees for employers to tap on. Over 14,000 employers are registered with the Jobs Bank, with about 80% actively posting job vacancies. Feedback from employers and job-seekers on the Jobs Bank has been positive. The Jobs Bank complements existing job-matching services and other recruitment tools. Employers should have the flexibility to decide how they search for workers. Some employers may find other forms of recruitment, such as headhunting or other recruitment processes, more suitable for their needs. Countries with similar jobs banks do not require all jobs to be advertised on them.”
“The Dependants' Protection Scheme (DPS) was introduced in 1989, with the primary objective of providing CPF members, especially those who have just started working and have not built up substantial savings in their CPF account, with affordable insurance protection. It provides their dependants with a sum of money to tide them over the initial difficult period should they become permanently incapacitated or pass on. Currently, DPS cover stops at age 60. The need for DPS is expected to decline as the member approaches retirement. His children are likely to be already working or less financially dependent. He would also have accumulated significant CPF savings which could support his remaining dependants in the event of his death. In addition, premiums for coverage beyond age 60 would be significantly higher because of higher mortality rates. The DPS premium for coverage from age 60 to 65, is estimated to cost about as much as what a CPF member would pay over the entire preceding 35 years between the ages of 25 and 60. Extending DPS coverage to age 65 on an opt-in basis will result in even higher premiums because of higher anti-selection risk where a larger proportion among the less healthy may choose to take up DPS coverage. Setting the DPS age limit at 60 strikes a balance between providing insurance protection for the CPF member's dependants and preserving his CPF savings for his own retirement Page: 113 needs. CPF members who wish to have life insurance coverage beyond age 60 may consider obtaining it from private insurers.”
“It will allow management now to bring to the fore PMEs and for executives to be represented by a partner whom they are familiar with and whom they have had a constructive relationship with over the many years. This will allow and provide avenues to further strengthen the labour-management relationship at the organisational level and allow our model of tripartism to be a continued source of strength for Singapore, ultimately, benefiting all Singaporeans. So, once again, I thank all our stakeholders, including Members of the House, for their suggestions and inputs and for their support of this Bill.”
“It is timely for us to review how we can expand and deepen our tripartite model to benefit rank-and-file employees, as we have done so over the years, as well as to look after the growing number of executives in our workforce. I would like to echo what Mr Heng Chee How shared about the industrial relations and industrial peace that we have enjoyed, how important that has been for all our well-being. It is not something we should take for granted. We often do take it for granted in Singapore. In fact, we would be hard pressed to find the occasions where these conflicts come to a head, but it is common in many other countries. It affects investors' confidence. As highlighted by Mr Heng Chee How, there are many different factors that investors look at when they consider moving to a particular country. Indeed, compared to the past, we are not as cheap as before. That is simply because we have developed and that is a good thing. But we need to retain the competitive advantage because when companies and other investors are confident in Singapore and they Page: 100 anchor themselves here, they create opportunities for our people and that is important. Our unique tripartite model has been a key competitive advantage for us in our 50 years of nationhood and that has enabled companies to invest in Singapore for the long term with confidence. This tripartite partnership where the unions, employers and the Government continue to work closely together is not something that we want to take for granted. As the world evolves, as the society evolves, we need to evolve our model of tripartism as well. With this round of amendments, more disputes can be addressed early at the enterprise level, between unions and management.”
“I am heartened to hear about the Page: 99 good progress made by the rank-and-file unions which have benefited many junior executives. Mr Yeo Guat Kwang spoke about the transition that unions have to go through in response to the changing workforce profile. Rank-and-file workers will remain the core of rank-and-file unions. I would strongly encourage the unions to persevere in reaching out to the executives, so that they can also better serve the needs of this growing group for a more inclusive Labour Movement. And with the proposed amendments, rank-and-file unions can serve the needs of all classes of workers. This transition is not just for the unions. The Government and employers have to evolve as well. I have outlined earlier the slew of initiatives that the Government has rolled out targeting the executives. Employers, too, need to step up to these changes and work with the unions in addressing the needs of their executives. To sum up, this Bill will provide additional options for workplace representation of our executives. There will be an additional avenue for executives to seek collective representation. Limited representation will continue to be an option to help executives address their individual disputes at the workplace, including re-employment disputes. I would like to assure Ms Jessica Tan and Members of the House that my Ministry will ensure that disputes arising out of the implementation of the IR Act will be dealt with in an expeditious and efficient manner. Mr Deputy Speaker, this Bill is a culmination of the tripartite partners' efforts over more than a decade to make our model of tripartitism more inclusive.”
“Limited representation for executives, on the other hand, largely focuses on end of employment issues, such as dismissal, breach of individual employment contract, retrenchment benefits and re-employment, for which unions can help in resolving disputes for their executive members who have been employees of the organisation. Thus, limited representation is perhaps not quite the right mechanism to deal with the issue of fair competition for jobs. For that area of concern, we have introduced other measures in this House previously. Ms Lee Li Lian asked what can be done to help the executives who remain excluded by the proposed amendments. She would be pleased to note that the upcoming Employment Claims Tribunal, which I mentioned earlier, will cover all employees including executives earning above $4,500 and regardless of job responsibilities, and provide them with an expeditious and affordable channel for resolving their various employment disputes which, we know, crop up from time to time. Ms Lee also asked about the number of trade unions that are approved for representing executives for purposes of negotiating with unions. We have received feedback from NTUC that some unions have discussed and worked out agreements with management on the forms of representation for executives. However, we do not have the official statistics as yet. Since the introduction of limited representation in 2002, many unions have recruited many executives to join their ranks. This is not a new move. We started this move quite some time ago. We are building on it. Mr Ang Hin Kee and Mr Zainal Sapari shared about how their unions have built up over time to serve more executives.”
“This round of amendments will broaden the range of options for unions and employers to consider. For example, the tripartite partners noted that granting recognition for collective representation of executives may not necessarily lead to collective agreements. Collective representation should focus on what is of collective interest to the executives. For certain companies and executives whose employment terms and benefits are highly individualised, the union can assist the executives in other areas which may be more important to the executives, such as career and skills development. The outcome will, therefore, be one where unions, executives and employers can all benefit. Mr Patrick Tay also sought clarification on the union recognition process to represent executives. Unions which have been accorded recognition by the company for rank-and-file employees will have to seek recognition for the new classes of executives that it seeks to Page: 98 represent collectively. I would like to thank Mr K Karthikeyan, Ms Jessica Tan, Assoc Prof Randolph Tan and Mr Heng Chee How for their support for expanding the scope of limited representation to include re-employment disputes. The Retirement and Re-employment Act (RRA) that came into effect in 2012 covers all employees. This amendment complements the RRA to allow rank-and-file unions to represent its executive members in negotiations with employers on an individual basis for re-employment matters. Assoc Prof Randolph Tan also suggested that we further expand the scope of limited representation to represent executives in ensuring fair competition for jobs. These are important concerns for executives and my Ministry has introduced the Fair Consideration Framework in 2013 to address these concerns.”
“To address employers' concerns, we have, as mentioned, taken the approach of allowing flexible implementation on the ground to take into account the differences that exist across industries and organisational circumstances and, in the consultation, that has come out quite clearly. In response to requests from employers, the tripartite partners have released a set of guidelines ahead of the legislative amendments to help prepare unions and employers early and address concerns that they had about how they should adapt to the proposed amendments. Again, these are the guidelines that are issued by our tripartite partnership and we have taken on board many of the various views and concerns expressed by many of you here in the House. Employers have also highlighted in our consultations that the needs of the executives are different from the rank-and-file employees. Executives are a heterogeneous group, with a more individualised pay structure. Their remuneration package includes items, such as performance bonus or wage increment, which are pegged to their individual performance, rather than being fixed. In addition, the pay structure of the executives in multinational companies is typically determined, as highlighted by Ms Jessica Tan, by the global HR policies that are beyond the shores of Singapore. These conditions make it challenging for us to negotiate for traditional collective agreement items, such as wage increments or bonuses. Mr Deputy Speaker, as mentioned earlier, we do want to avoid a narrow prescription of the arrangement that unions and employers should have. In fact, that is the wise approach to take in this instance. Both parties should be given the maximum amount of leeway for them to work out an arrangement that best suits the needs of their executives.”
“As I highlighted earlier, we all would generally prefer more prescriptive definitions, we would like clearer parameters, but the world has changed. It is a lot more difficult to define the specific roles for each of these PMEs, as executives. As I have mentioned, in different organisations, you have different structures. In a particular organisation, an executive may hold certain responsibilities. In another, it could be quite different. So, we believe that, in the spirit of tripartism, this space afforded both employers and unions would allow negotiations to take place. We need to learn to embrace that change and to embrace that space that we have in order for us to carve out what we define as a common space for everyone to move on. In our consultations on the Bill, employers have raised concerns on the impact on business operations and managerial effectiveness. We have heard Ms Jessica Tan's concerns and this is echoed by many of the companies out there. We understand that. It is important to realise that there are conflicting needs – unions, workers, employees. Employees may prefer much more extensive inclusion, a more inclusive approach, whereas companies would have reservations, and both views are valid. Ultimately, we need to find a halfway position not so much directly in the middle but a formulation that works best for all parties concerned and ultimately benefits all of us here in Singapore. So, let me first assure the House that the proposed amendments that we are debating today are meant to provide those additional options for employers and unions to consider. Page: 97 Employers and unions can adopt the modality and arrangement that best suit the structure and circumstances of the organisation and the needs of their executives.”
“Mr Deputy Speaker, I would like to thank Mr Patrick Tay, Mr Zainal Sapari, Ms Jessica Tan, Mr Ang Hin Kee, Ms Lee Li Lian, Mr K Karthikeyan, Assoc Prof Randolph Tan, Mr Yeo Guat Kwang and Mr Heng Chee How for their views and support for the proposed changes to the IR Act. Page: 96 Mr Patrick Tay and Ms Lee Li Lian sought clarification on the five grounds of exclusion from collective representation with regard to the extent to which the exclusions will kick in and cases where union affiliation could give rise to conflict of interest. Mr Zainal Sapari suggested not excluding from collective representation salaried workers who merely process confidential information and who do not hold senior positions in their companies. Mr Deputy Speaker, the tripartite partners have carefully considered the criteria to determine eligibility for collective representation and consciously decided not to be overly prescriptive. In determining the classes of employees to be represented, it is important to preserve flexibility for employers and unions in their negotiations. As the proposed amendments are meant to allow executives greater access to union representation, the exclusions are generally not meant to apply to junior executives. Furthermore, employees who are tasked with mere processing of confidential information would generally not be executives and, hence, are not included within the scope of this Bill. The specific executives or classes of executives who are eligible to be represented will, ultimately, depend on the circumstances and structures of the organisations. Employers and unions should work closely in the spirit of cooperation to reach an agreement on the issue of eligibility.”
“MOM will continue to work with our partners, NTUC and SNEF, to communicate the IR Act changes and the tripartite guidelines to employers, unions and employees, to ensure that the proposed amendments are implemented in a way that creates a win-win outcome for both employees and employers, as we have done so over the many years. We are confident that the proposed amendments will make our tripartite model even more inclusive. It will strengthen Singapore's model of tripartism and benefit employees, unions and employers. Mr Deputy Speaker, Sir, I beg to move. Question proposed. 4.31 pm”
“In this regard, I would like to urge employers and unions to consider the various options available to them by openly sharing, discussing and understanding each other's concerns and needs and to work out a suitable arrangement. The guidelines will take effect together with the commencement of these amendments to the IR Act. Mr Deputy Speaker, we started this very important journey to provide greater scope for representation for executives as far back as 2002. We have, over the many years, built up a very strong tripartite partnership here in Singapore. We do intend to keep to that. The basis on which we have established that successful partnership, we intend to continue with that. But the space is also evolving; the economy is evolving; the workforce is evolving and, therefore, we need to find a new formulation that can continue on this trajectory. Page: 74 The legislative amendments that I have proposed will offer more options for union representation of executives at the workplace, because we do have many more executives in the workplace today and it will continue. It will allow us to harness established channels under the IR Act for employers, executives and unions to engage in dialogue to resolve any industrial disputes. I would like, in particular, to thank everyone who has contributed to the review, especially NTUC, SNEF and Members of this House, as well as the members of this Workgroup, for their contributions in developing the guidelines.”
“The first set of Tripartite Guidelines on Extending the Scope of Union Representation for Executives spells out the various options for representation of executives and provides supplementary criteria for unions and companies to negotiate on the level of executives in the organisation eligible for collective representation so that both parties can move at a pace that they are comfortable with. The second set of Tripartite Guidelines on Expanding the Scope of Limited Representation for Executives is an update of the existing guidelines in relation to the limited representation framework, where individual re-employment disputes are included as an additional area for negotiation between employers and unions. Following the various consultation sessions the Ministry had with employers and union leaders, there was a tripartite agreement that while the guidelines should provide clarity, they should also not be overly prescriptive. This is to allow flexibility at the implementation level for employers and unions to work out the modalities that best suit the needs of executives and the organisational circumstances. I know that, in many cases, we would all like clearer and more precise directions, but the nature of the space is not homogenous. Therefore, you do need a level of flexibility and, with that, we need to create that space so that the partners can negotiate and discuss what these details might be and for them to proceed from that point on. I am happy to note that the Workgroup members took this into consideration in developing the tripartite guidelines and, as a result, these guidelines have broad tripartite support.”
“Thirdly, the reasonableness of the terms and conditions of any re-employment offer made by the employers. Lastly, the reasonableness of the amount of any employment assistance payment offered to an employee. In addition to the two key amendments that I have elaborated on earlier, this Bill also proposes some amendments to improve the functioning of the Industrial Arbitration Court by allowing for flexibility on the number of employer and employee panel members which the Minister for Manpower can appoint to hear industrial disputes, as well as increasing the duration of appointment of such panel members from one to two years. Sir, in view of the two earlier proposed amendments, consequential amendments to the Retirement and Re-employment Act and the Trade Unions Act are required. In the case of the Retirement and Re-employment Act, the amendment is to allow the unions to also represent executives under the limited representation framework in proceedings before the Commissioner for Labour on re-employment claims. Amendments to the Trade Unions Act are also required so as to enable rank-and-file unions to represent executive employees, except executive employees with certain responsibilities, for collective bargaining. The Bill is proposed to come into effect on 1 April 2015. To supplement the proposed amendments, we have released two sets of Tripartite Guidelines at the Singapore Tripartism Page: 73 Forum's Industrial Relations Seminar in November last year to help prepare unions and employers early so that they can address their concerns about how they should adapt to the proposed amendments. These guidelines are the result of the extensive efforts of the Tripartite Consultation Workgroup I mentioned earlier.”
“The second key amendment in this Bill proposes to expand the scope of areas which the rank-and-file unions can represent executives on an individual basis to include matters relating to re-employment. Sir, currently, rank-and-file unions can represent executives on an individual basis in four limited areas, specifically, firstly, breach of individual contract of employment; secondly, retrenchment benefits; thirdly, unfair dismissal and, fourthly, victimisation. This provides executives with an additional and lower cost alternative to settle their employment disputes through union and management negotiations. Page: 72 While the tripartite partners have proposed extending the scope of collective representation of executives by rank-and-file unions, there is still value in retaining the limited representation framework which I have just mentioned. Employers have given feedback that reward systems for executives have evolved to be relatively individualised and not all executives will desire to be represented collectively. In addition, not all existing rank-and-file unions may be prepared or given recognition to full collective representation immediately. To further broaden executives' options for workplace representation, the tripartite partners have recommended expanding the scope of the limited representation framework to include matters relating to re-employment after retirement. Firstly, the denial of re-employment to an employee on the ground that the employee does not satisfy the re-employment eligibility criteria. Secondly, the denial of re-employment to an employee on the ground that the employer is unable to find a vacancy in his establishment which is suitable for the employee.”
“This is an extension of the 2002 amendment where executives were allowed to be represented by Page: 71 rank-and-file unions on an individual basis for limited matters. Some employers are concerned that such representation may give rise to a conflict of interest and undermine management effectiveness. To address this concern, we will continue to exclude executives with certain responsibilities from joining the rank-and-file unions for collective representation. These include executives: (a) who are employed in a senior management position; (b) with substantial responsibilities for hiring, firing, promotion, dismissal and disciplinary duties; (c) who represent employers' interest in union-management matters; (d) those with access to confidential information, such as payroll and budgeting information; and (e) whose union affiliation would give rise to a conflict of interest. The tripartite partners have discussed a few criteria to be used to determine eligibility for collective representation, such as salary levels and workforce distribution, but they recognise that company structures and pay scales differ widely across industries and between organisations. The partners thus agreed that job function or responsibility is probably the most relevant and practicable criterion for determining eligibility, as it directly addresses employers' concerns of conflict of interest and loss of management effectiveness. This approach will also be able to take into account the organisational structure and circumstances of different industries or organisations. This is similar to the criterion for limited representation and tripartite mediation for executives within the IR Act itself.”
“A Tripartite Consultation Workgroup with employer and union leader representatives was also set up to study issues relating to amendments in the IR Act and to develop tripartite understanding and guidelines to guide implementation on the ground. The two main changes addressed in this Bill are, firstly, extending the scope of union representation on a collective basis for executives; and secondly, expanding the scope of limited representation on an individual basis to re-employment matters. I will elaborate on each of these in more detail. The first key amendment proposes to remove the legal barrier for rank-and-file unions to represent executives collectively. Executives presently cannot be collectively represented by rank-and-file unions. This prohibition was introduced in the context where the large majority of employees were traditional rank-and-file workers and executives then constituted a very thin but senior layer of the workforce of a company. There were concerns that representation of such workers by rank-and-file unions would give rise to a conflict of interest and undermine management effectiveness. Since then, our economy has evolved and the educational profile of our workforce has improved – it has changed quite dramatically and will continue to change. There is now a much greater variety of jobs, especially at executive levels, from entry-level jobs to senior management roles. Recognising that rank-and-file unions have played an effective role to help rank-and-file members address their workplace issues, the tripartite partners recommended to provide an additional option for executives, particularly the more junior ones, to join rank-and-file unions for collective representation if they wish.”
“To enable this, the tripartite partners have taken the approach of gradually broadening the options for workplace representation for PMEs. This journey started way back in 2002 when we amended the IR Act to allow rank-and-file unions to represent employees in managerial and executive positions on an individual basis for limited matters. In 2011, we introduced further amendments to provide for a tripartite mediation mechanism to assist PMEs in non-unionised companies in resolving individual disputes with their employers. In the last two to three years, the Government has also undertaken a broad review of our laws and institutions to see how we can better meet the changing needs of our workforce. Page: 70 As a result, we updated the Employment Act last year to deepen protection for managers and executives earning up to $4,500. We also plan to set up an Employment Claims Tribunal to provide all employees, including PMEs, with an expeditious and affordable dispute resolution mechanism and strengthen the tripartite mediation mechanism we introduced in 2011. In 2012, alongside the review of the Employment Act, the tripartite partners agreed it was timely to review the IR Act to see how unions can play a role to better represent the needs of these PMEs. The amendments we are proposing today seek to build on these changes to further strengthen the channels of union representation for PMEs and provide them with a wider set of options for union representation. I shall refer to these workers as "executives" henceforth for alignment with the terminology in the Bill. They are the result of extensive consultations with the public as well as more than 4,000 employers and union leaders at various platforms.”
“Mr Deputy Speaker, I beg to move, "That the Bill be now read a Second time". Sir, the proposed changes to the Industrial Relations Act, or the IR Act, are intended to better meet the needs of our professionals, managers and executives (PMEs), as well as help employers and unions to work together to more effectively engage this growing group of employees. We will be strengthening an already strong and constructive tripartite partnership, and making it more inclusive. The IR Act, sets the landscape for harmonious labour-management relations. The law helps to prevent and settle trade disputes by collective bargaining, facilitates conciliation and arbitration and helps to provide for tripartite mediation of individual disputes. Over the years, it has allowed us to meet the growing needs of all our workers. At the same time, it ensures that our companies remain competitive and agile so that they can respond to the changing business environment and, thereby, benefiting everyone. Sir, we know that the profile of our workforce is evolving. PMEs now form more than 30% of our workforce and this proportion is expected to increase further as Singaporeans become better educated and aspire to better jobs. As such, we need to see how this group of employees can be better represented at the workplace and how we can better embrace them into the tripartite process. At the same time, we need to see how employers can better work together with unions to engage these employees. The tripartite partners agreed that we would do this in a measured and sensible way without undermining labour market flexibility and management prerogatives on issues which the unions can enter into negotiations with management.”
“Since its launch in July 2014, Jobs Bank has received very encouraging response from employers. As of September 2014, 12,700 employers are registered with the Jobs Bank, with about 80% actively posting job vacancies. WDA will continue to work with industry associations, employer groups, unions, and community organisations to drive the adoption and use of Jobs Bank among employers for their hiring needs, so that local job seekers can have access to a larger and wider pool of job opportunities. I would like to emphasise that the role of the Jobs Bank should be seen in a broader context. It is part of an ecosystem that benefits Singaporean job seekers. This ecosystem includes the number and types of jobs being created, and whether our people have the skills and passion for the job. Our fundamental objective remains to ensure that our people are job ready, by equipping them with industry-relevant skills that would allow them to pursue good jobs and careers, and assisting them by providing quality training programmes, training incentives to defray costs, employment facilitation and career coaching services. In this ecosystem, the Jobs Bank helps to make job vacancies more visible to Singaporean job seekers and facilitate a fair hiring process. Singaporean job seekers are now able to make job applications directly through the Jobs Bank for a substantial list of job Page: 138 openings. The feedback from both employers and job seekers has been positive. It is a good start and we hope that more employers and Singaporean job seekers will use it over time. Page: 139”
“Referring to Chart 1, data from MOM's Comprehensive Labour Force Survey indicates that the employment rates for citizens and permanent residents are broadly similar across age groups. Citizens and permanent residents aged 30 to 49 enjoy high employment rates of over 80%, while the employment rates for those aged 50 and above are also relatively high (75% and 50% for those in their 50s and 60s respectively). Mr Gan Thiam Poh also asked for the breakdown of those not in the workforce by age and sex, as well as their reasons for inactivity. Most of these residents are students, home-makers, care-givers, seniors who have retired or those who are unable to work. Chart 2 shows the breakdown of economically inactive residents by age and sex. Seventy percent of all economically inactive residents are between 15 to 24 years, or 60 years and above. The majority (95%) of residents aged 15 to 24 who are economically inactive cite education and training as their main reason for not being in the workforce. Retirement or poor health are the most commonly cited reasons for residents aged 60 and above. For economically inactive residents within the prime-working ages of 25 to 59, females outnumber males by five times, with 80% of these economically inactive females citing housework and care-giving responsibilities as their main reason for inactivity. Page: 135 Page: 136”
“Our Employment Pass (EP) eligibility framework is based on a range of factors, such as the applicant's salary level, qualifications and experience, to identify individuals that are likely to possess expertise and capabilities to contribute to our economy. Hence, possessing acceptable qualifications alone does not guarantee that the EP application will be approved. Conversely, not possessing acceptable qualifications does not automatically rule one out of being eligible for an EP. In 2012, we tightened our legislation and increased penalties for making false statements or submitting false documents in support of work pass application, including those relating to academic qualifications. Offenders may be fined up to $20,000 and/or imprisoned up to two years. Since 2012 to the first half of 2014, we have successfully prosecuted about 150 foreigners for false credentials. All were sentenced to imprisonment terms and subsequently had their work passes revoked and were barred from working in Singapore. We have also taken a risk-based approach to improve and strengthen our credential checks, including supplementing these checks with third-party overseas screening agencies, verifying the authenticity of certificates directly with the issuing educational institution and requiring the applicant to upload proof of diplomas and higher qualifications authentication. Page: 134 MOM will take strong actions against those who make false declarations in work pass applications. If members of the public know of such offences, they should report the matter to MOM.”
“Assoc Prof Tan has asked if the frequency of use of wage credits as incentive for hiring is sustainable. Both the SEC and WCS are not intended to be permanent forms of support. The SEC and WCS were introduced in the context of rising cost pressures on businesses including the progressive tightening of our foreign worker policies since 2010 and changes in CPF contribution rates for older workers. Wage credit schemes, such as SEC and WCS, as well as various productivity grant schemes, are avenues through which the Government channels back the additional foreign worker levies collected as a result of the tightening, to Page: 133 help businesses upgrade and share gains with their workers. However, the long-term solution for ensuring the employability of our workers, including our older workers, is through skills upgrading. We have various schemes and subsidies in place for older workers to upskill themselves and raise their productivity such as through the Skills Training for Excellence Programme (STEP) and Enterprise Training Support (ETS) schemes. Whether wage credit schemes will be made available during an economic downturn and how effective they will be, will largely depend on the nature of the downturn and economic outlook at that point in time.”
“The Special Employment Credit (SEC) provides support to employers to hire older workers. It was enhanced in 2012 to help employers cope with business costs arising from the increase in CPF contribution rates for older workers. The SEC will apply until 2016 to enable employers to plan ahead in hiring older workers. Today, employers receive an SEC of up to 8% of each eligible employee's monthly wage. It is targeted at Singaporean workers aged above 50, earning up to $4,000 per month. In 2013, SEC was paid to over 100,000 employers for employing 445,000 eligible employees. The Wage Credit Scheme (WCS) was introduced as part of a 3-Year Transition Support Package in Budget 2013. The scheme helps businesses cope with rising wage costs as they restructure in a tight labour market. It is not meant to incentivise hiring of any particular group of workers. Under the WCS, the Government co-funds 40% of wage increases given to Singaporean employees earning a gross monthly wage of up to $4,000. Over 74,000 employers benefited from WCS in 2013. The employment rates for older workers have been rising significantly. Seventy-one percent of residents aged 55 to 59 were employed in 2013, up from 64% in 2008; 39% of residents aged 65 to 69 were employed in 2013, up from 26% in 2008. These higher employment rates are due in part to the tight labour market conditions today as well as various Government schemes including the SEC. Aside from the SEC, employers can also receive various grants under the WorkPro scheme to support them in redesigning jobs and the work environment to adapt to the ageing workforce. Re-employment legislation was also introduced in 2012 which requires employers to offer re-employment to eligible resident employees who turn 62, up to 65 years old.”
“The Home Protection Scheme (HPS) is a mortgage reducing insurance administered by the CPF Board to help insured members and their families settle their outstanding housing loans for HDB flats in the event of death or permanent incapacity of the member. The HPS cover commences once the housing loan has been disbursed. This is about the same time when the HDB flat buyer collects the keys to his HDB flat and is due to make the balance payment for his flat purchase. At this point, the housing loan quantum, loan repayment period and share of repayment among the co-owners would have been finalised. The flat buyer would be better able to determine the appropriate level of protection in terms of the amount insured and coverage period under HPS and avoid paying excessive HPS premiums. Flat buyers looking for earlier financial protection can consider alternative private mortgage or term insurance policies. An insured member who changed his property will have to obtain a new housing loan with a different loan quantum and repayment period for his next flat. He will need a new HPS cover that is determined based on the new loan and the level of financial protection he now needs. Page: 132”
“Mdm Speaker, I will be happy to follow up with Mr Yee on specifically the percentage points that he is referring to. I am not sure whether he is comparing like for like. The 7.4% in the PQ refers to the unemployment rate of resident degree holders below the age of 30, while the 6.7% refers to the annual resident youth, aged 15 to 24, unemployment rate. But be that as it may, we can follow up and check which specific data point he is referring to. Page: 31 We do track this situation quite closely. As I have mentioned before, although we are not at that stage yet, my big concern is that if we do not arrest this trend, I think you will find a greater risk of unemployment and under-employment as more youths pursue other options, especially through private education institutions. It does not mean that by pursuing studies in the private education institutions, you will not be able to necessarily do well and fulfil your aspirations in life. There will be those who do well. As you would realise, there will be institutions out there that will be quite happy to provide you a qualification if you look hard enough, and are prepared to spend time and money, but the standards do vary. We do see it now in terms of employment outcomes. In terms of the employment opportunities and especially the remuneration packages, it is less than desired and that is a worrying trend. If we continue along that path, we will encounter some of the problems that other countries are facing. We track this data quite closely to avoid that situation from developing in the first place.”
“The median duration of unemployment for resident degree holders below the age of 30 is also not long – at about five weeks. Thirdly, the rate has come down from 2009 and has remained largely stable for the recent few years. Page: 30 The Government will continue with a comprehensive approach to keep both overall unemployment and youth unemployment rates as low as we can. First, it is crucial – and I think it is important for us remember – that we do need to maintain a strong and vibrant economy so that businesses have a conducive environment to operate in and, in turn, create quality jobs for our young people and, in fact, for all Singaporeans. Secondly, we do need to ensure that our education and training system continues to equip Singaporeans with industry-relevant skills to prepare them for the job market. We know that trends are evolving, technology is evolving quickly. So, this is where the commitment to lifelong education for Singaporeans at every educational level is particularly important. MOM will also continue to monitor the unemployment rate, as I mentioned to Mr Patrick Tay earlier, and also under-employment rate, of young degree holders and, frankly, for Singaporeans at every level. We will continue to work closely with tripartite partners to help young degree holders access quality jobs, and facilitate their career development and progression.”
“Mdm Speaker, when Mr Yee alludes to the fact that the unemployment rate of 7.4% is high, I am not very certain what his reference points are, but there are a few perspectives. One, does he mean that it is high compared to other countries? Secondly, is it high because it is higher than the overall unemployment rate? Or is it high because it has increased significantly from the past? Let me address these three perspectives. Firstly, across all educational levels, our youth unemployment rate has remained low, and, in fact, very low by international standards. Whether compared with the advanced economies, such as the US and EU, which are facing youth unemployment rates in the double digits, or with other developed Asian economies such as Hong Kong and South Korea, we are faring pretty well. Secondly, youth unemployment across all countries is typically significantly higher than the overall unemployment rate. This pattern is similarly reflected in our unemployment rate of 7.4%, which is non-seasonally adjusted, for degree holders below the age of 30, compared to the overall unemployment rate amongst degree holders, again non-seasonally adjusted, of 3.6% in June 2013. We will find this pattern repeated across all the different countries. And there is a reason for this. This is mainly due to the fact that new graduates joining the job market, as well as the higher incidence of job switching amongst young graduates, as they figure out what exactly they want to do, rather than any systemic difficulty in securing employment. So, you will find these trends typically across most, if not all, countries. About nine in 10 of our young degree holders from the local Autonomous Universities are able to secure a job within six months of graduation.”