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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“That was the life expectancy then. It made sense and it was logical to be able to withdraw your CPF in a lump sum at age 55. But the world has changed. The situation is very different today where one could expect to live a further 30 years or more. Allowing a full withdrawal from CPF at age 55 today will put us at real risk of outliving our savings in old age. To blindly keep to the earlier model of full withdrawal at age 55, which made sense then, would be wrong and irresponsible. This is why we introduced the Minimum Sum scheme. The policy is not a new one and has been in place for about 30 years. The idea is this: how to stream out our CPF savings every month to meet living expenses instead of having them all withdrawn in a lump sum. Neither do we require Singaporeans to set aside all our CPF savings to be streamed out in this way. Only a basic amount necessary for retirement expenses is required and you can withdraw your CPF savings above that in a lump sum. This basic or minimum amount is known as the Minimum Sum. Let me clarify several issues relating to this whole concept of the Minimum Sum. As we know, some are unhappy when the Minimum Sum increases for every cohort that turns 55. Some see it as a "shifting goalpost" that locks up more and more of their CPF savings. Others do not understand how much savings they must set aside at 55. Let me explain the Minimum Sum in some detail to dispel misconceptions and myths that have surfaced in the recent public discussion. First, the Minimum Sum quantum is cohort specific. Once it is set for a particular cohort, it does not change. For example, someone who turns 55 between July 2014 and June 2015 will need to set aside $155,000 as a minimum, above which he can withdraw.”
“Mdm Speaker, much has been discussed about the CPF in recent months and I thank Members for the opportunity to clarify. Every country is concerned about how to help its people manage when they retire. Some argue that, as individuals, we should be left to sort our own lives out but, in reality, it often does not work out that way. Almost all developed countries have some form of pension or retirement system because most people generally do not save regularly nor do they effectively plan for their own retirement. Most systems operate as such: you pay regularly, sort of like a tax, and you receive a stream of income when you retire that will cease when you pass away. Payouts are often regular, such as every month, to ensure that there is a regular flow of income to help sustain Page: 11 living needs. There is a good reason why it is not provided as a lump sum. For us in Singapore, assurance in old age revolves around a few key considerations: healthcare, housing and retirement needs. The CPF is our key pillar in the social security system. It is a mandatory savings account that helps us put aside money today to cover our needs in old age. As the CPF is a defined contribution system, the full amount in your CPF account would go to your family if you pass on prematurely. Both individuals and their employers contribute their share to the scheme. It is important to remember that as part of the CPF system, employers contribute to that scheme as well. And it is also a vehicle through which we help cater to healthcare and housing needs. When CPF was first introduced almost 60 years ago, members could withdraw their money at age 55 in a lump sum. That was because at that time, someone could expect to live only another six to seven years after that.”
“Mdm Speaker, as there are a number of questions relating to the Central Provident Fund (CPF), it would be more complete if I take Question Nos 1 to 10 together, and with your permission, if Deputy Prime Minister could continue with the rest of the Parliamentary Questions relating to CPF. So, we will take it as an entirety before we open up for questions.”
“We would like to strongly encourage consumers to use relevant resources and information to compare the price and quality of service providers of the particular trade in order to make a more informed decision.”
“There are currently licensing requirements in place for essential trades. For example, PUB has a licensing scheme for plumbers who carry out water service works, such as home plumbing, leak detection and water tank cleaning. Similarly, the Energy Market Authority (EMA) has a licensing scheme for electrical workers. It is an offence for a person to carry out water service plumbing work or electrical work without holding the appropriate licence. Additionally, HDB recognises a pool of contractors who wish to carry out renovation works and minor repairs, such as building, sanitary and electrical works, in HDB flats. Page: 156 In engaging the services of a tradesman or contractor, consumers can refer to the listing of licensed or registered professionals or contractors on the websites of Government agencies, such as PUB, EMA and HDB, and of the respective industry associations, such as the Singapore Electrical Contractors and Licensed Electrical Workers Association (SECA) and the Singapore Plumbing Society (SPS). Competition authorities worldwide have found that price recommendations and fee guidelines, mandatory or voluntary, are generally harmful to competition. In line with this, Singapore does not generally encourage the setting of price recommendations or fee guidelines, but allows different businesses to compete in the market in order to achieve more competitive prices and a wider range of services. This is the better approach to guard against over-charging. Nevertheless, consumers who encounter an unfair practice can report the matter to the Consumers' Association of Singapore (CASE). CASE is empowered under the Consumer Protection Fair Trading Act (CPFTA) to assist consumers who encounter unfair trading practices and excessive prices.”
“In fact, from our survey, we have found that many workers do actually stay on in the dormitories, in large part because one of their objectives in coming to Singapore is to work hard and remit monies back home. And one way is to save money. Some of them, from time to time, will go out, but when there is good access to some of these facilities within the dormitories, many of them do stay within their dormitories. So, that is the approach that we are taking, going forward. But, meanwhile, in areas where there are disamenities that are happening, we work closely with the local communities and other agencies to minimise disruption and inconveniences to residents.”
“Mdm Speaker, with regard to Simpang Lodge, it is something that we are putting in effort, together with the various agencies. For example, apart from MOM, there are also SLA, SCDF, CNB, the Police as well as our NSE CCC. Let me just illustrate some of the measures that have been put in place and the efforts that are being undertaken. We educate foreign workers through roadshows. The last was held, for example, in February 2014, and two more of them in July 2014. We also conduct house-to-house visits and advise residents to secure their WiFi network. Since this effort commenced, the number of unsecured WiFi networks has dipped. Obviously, we are in that estate for those who are going to the nearby Housing Board estate in order to tap on these unsecured WiFi. Obviously, Page: 78 the numbers will also drop accordingly. Reviewing liquor licences, especially those in the near vicinity of the dormitories frequented by foreign workers, is something we are looking at. We are studying a proposal to convert vacant state lands beside the dormitories into recreational sports areas for foreign workers; the need for more CCTVs in the area; more frequent visits by uniformed officers and engagement with foreign workers on crime-related issues; frequent engagement with dormitory management on security-related matters. We are also stepping up on enforcement efforts against anti-social behaviour, such as littering and urinating in public. So, it is a combined effort to keep the situation in check. But from a broader perspective, I think the solution really is to enhance these facilities in dormitories around the country so that the workers themselves have access to these dormitories.”
“Mdm Speaker, in response to the Member's question, I think we are particular about living conditions, as I had stated. But I think URA, as part of the Inter-Ministerial Committee, is reviewing and making sure that the requirements for accommodation are suitable for our foreign workers. The majority of the purpose-built dormitories today do meet the requirements. For those that do not, we do inspect and we do follow up to make sure that has been done. Page: 77 In the same way, the regulatory framework that we announce shortly will also be looking at some of these measures. MOM will continue to monitor and inspect. A large part of it will also come from NGOs and other interested parties who do have information that will feed back to us. I have been to some of these checks and inspections as well. We do find egregious accommodation, and that will happen. That comes from information that is shared from the public as well as NGO groups. But when these are found, we will deal with them accordingly. So, this is something that is ongoing and we definitely pay attention to them.”
“Mdm Speaker, this issue of a lack of adequate accommodation crops up regularly. There has been a lot of misunderstanding from the media, in spite of our clarifications. It is a worthwhile opportunity for us to surface this again. Of the 770,000 non-domestic work permit holders, almost half of them are Malaysians who commute to work daily and, therefore, do not need dormitory beds, or those in the manufacturing and services sector who are allowed to rent and live in HDB flats and in private estates near the places of their work. The more relevant group pertaining to dormitories is the remaining half, who are the non-Malaysian construction, marine and process workers – about 90% of whom are already housed in purpose-built dormitories, factory-converted dormitories and quarters on construction sites. A vast majority of these housing premises are within regulatory norms. These dormitories are not of uniform standards. I think that is something that we acknowledge but, as mentioned, over the next Page: 75 few years, the aim is to speed up the construction of more purpose-built dormitories to ensure that the daily basic living needs of foreign workers are better taken care of. Over time, the aim is for a vast majority of this group of workers to be accommodated in such self-contained housing facilities. These efforts have already started a number of years ago, and will continue unabated.”
“Mdm Speaker, in response to the Member's question, I think it is important for us to look after our foreign workers. In fact, it behoves us to look after all our workers, whether local or otherwise. So, that is why legislation is in place to make sure that they are adequately looked after. It is also important to make sure that enforcement takes place fairly. It is also important to make sure that education takes place, so that they understand their rights and to make sure that their welfare is looked after. And also to educate them on the social norms. It is also important for Singaporeans to understand that. So, that is where opportunities to create opportunities for interaction and mutual understanding is required as well. But is this mutually exclusive with the fact that the foreign workforce is transient in nature? I do not think so. It is a right thing for us to do as a society. Bearing in mind that it is still a transient workforce, it does not mean that we should not do these things.”
“Mdm Speaker, in response to Ms Dennis Phua's suggestion, in principle, we do welcome the participation of businesses in Little India as they may bring unique value to the foreign worker clientele. In fact, we understand that such collaboration is really ongoing. So, we do urge Little India businesses to proactively approach dormitory operators to market services and to convince them of the value that they could bring. This is something we are supportive of.”
“We have also taken deliberate and progressive steps to raise the quality profile of our foreign workforce and help businesses reduce their reliance on low-cost foreign labour. This is painful but it is a necessary adjustment we are making to restructure our economy, and the Government has introduced the $5.9 billion Quality Growth Programme in Budget 2013 to help our businesses and industries to make this transition. The foreign workforce tightening measures have slowed foreigner growth significantly. Excluding construction and domestic workers, the foreign worker growth rate was halved from 9.4% in 2011 to 4.6% in 2012, and halved again to just 2.3% in 2013. For construction, manpower has grown over the past few years in large part to support the ramp-up of construction projects, including essential transportation, housing and healthcare infrastructure for Singaporeans. We will continue to build in the coming years, but in a more manpower-lean manner, with many construction productivity measures being introduced. In conclusion, the COI has rightly pointed out that the riot was a unique event, perpetuated by individuals who were not representative of the majority of responsible and law-abiding foreign workers. The COI's findings have made clear that negative generalisations about the foreign workforce have no place in our society. I believe that Singaporeans genuinely appreciate the contributions of these workers and wish to co-exist harmoniously with them. On our part, the Government will continue to nurture, to manage such spaces; as well as to manage the overall numbers to minimise impact on the local community.”
“As part of the Work Permit card issuance process, a comprehensive guidebook is given which covers workers' legal rights and responsibilities, channels for assistance provided by Government and non-government organisations, as well as social norms. Workers who have problems can always approach MOM for help at our Services Centre. Workers who approach us for assistance can be assured that due effort will be taken to safeguard their interests and well-being. During their stay, road-shows are conducted by Government agencies at dormitories and key foreign worker gathering spots. Newsletters are also regularly distributed to keep workers updated on our latest initiatives or policy changes. Much of our engagement of Page: 62 foreign workers is conducted in the workers' native languages. Nonetheless, we do accept the suggestion by the COI and will look into how our outreach to workers can be further improved. For example, we are looking to create more targeted and easier to understand materials so that key messages can be put across to foreign workers more simply. We will also look to extend our reach through collaboration with partners like student volunteers, many of whom have expressed an interest in befriending foreign worker groups. Even as we undertake to effectively manage the foreign workers in our midst, the broader lesson is that foreign worker numbers cannot grow in an unabated manner. In line with the recommendations made by the Economic Strategies Committee in 2010, we have begun to moderate the growth of foreign workers to more sustainable levels, with a greater emphasis on productivity improvements.”
“As I have previously mentioned, MOM will be establishing a regulatory framework for large dormitories that have a larger impact on their surrounding communities. I am pleased to note that from our engagements with industry, the operators are on board with us on this. My Ministry is working through the details and will provide more information of this regulatory framework in the coming months. The Government is also pressing on with efforts to establish more dedicated recreation centres for foreign workers. There are four today – in Soon Lee, Kaki Bukit, Woodlands and Penjuru. We will increase their number in tandem with the increase in our foreign workforce numbers. These centres provide a wider range of amenities that individual dormitories may not be able to, such as remittance and banking services, supermarkets and sports facilities. We will work closely with local community stakeholders in shaping the amenities and services available at these centres so that workers do not need to go far to get access to these services. The COI has also suggested that more effort be made to educate foreign workers on issues, such as their rights and protections, avenues for them to seek assistance and local social norms. Currently, we already make an effort to push out essential information to workers before they enter Singapore and throughout their stay here. Information on key salary components is included in the In-Principle Approval letter which employers must send to their in-coming workers in their home countries, in their own languages, before they depart for Singapore.”
“If there is clear evidence that any employer or any other person has breached the law, we will not hesitate to take the necessary enforcement actions. I might add that workers who provide false information – and that occurs as well – must also be held accountable. I accept fully the COI's observation that there is always room to improve the situation. Indeed, that is so. We certainly do not take the current state of affairs for granted and will be implementing the thoughtful recommendations in the COI report. The COI has recommended that more services and amenities be made available to foreign workers outside of congregation areas like in Little India. This is something that we are already doing, and intend to step up on. Indeed, providing for the needs of foreign workers requires strong inter-agency coordination overseen by an inter-Ministerial committee, covering issues like housing, transport and security. Efforts are on-going to speed up the construction of dormitories which, beyond providing adequate living space, have built-in amenities and recreational facilities to take care of the daily basic living needs of Page: 61 workers. The new dormitories which are being launched are required to be self-contained, with adequate space set aside for living and gathering, as well as the provision of facilities like mini-marts, gyms, canteens and TV rooms and, of course, WiFi, which is very important. Over time, we aim for more workers to be accommodated in such self-contained housing facilities which will reduce the need to travel far for basic services. We also recognise that this is not simply an issue of providing hard infrastructure. Soft infrastructure matters and operators of dormitories have a role to play.”
“Satisfactory pay and working and living conditions were the top three reasons cited for recommending Singapore as a place to work. In addition to these survey findings, the fact is that over 70% of foreign workers renew their contracts after the first two years. Taken together, these pieces of evidence suggest that the majority of foreigners continue to consider Singapore an attractive place to work. Ultimately, what the workers themselves say and do matter. The COI report puts to rest the more speculative causes for the riot that were offered by some critics and that were echoed blindly by some sections of the foreign media. These same critics often propagated this, painting a negative picture of our agencies, of Singaporeans and of Singapore at large to not just our internal local audience but to the international audience as well. Significantly, the Indian media, which had a more direct interest in this issue and more access to the workers, on the whole reported responsibly and fairly on the Little India riot. As the Foreign Minister has noted, this incident has not affected our bilateral relations with India. While the COI has found no evidence of systemic mistreatment of foreign workers, they have pointed out that there might nonetheless be a minority of errant employers who mistreat their workers. I have stated this before in this House: mistreatment does exist. In an earlier statement in Parliament, I have also cited the number of egregious cases. While any case should not be tolerated, the numbers are exceedingly small. My Ministry treats feedback on mistreatment of workers, whether local or foreign, very seriously and we will investigate such employers.”
“Mdm Speaker, Deputy Prime Minister Teo provided MHA's response to the findings and recommendations of the COI into the Little India Riot on 8 December 2014. I will now respond to the part that touches on the management of the foreign workforce in Singapore. I am glad that the COI has established that the underlying cause of the 8 December riot was not systemic dissatisfaction with employment and living conditions in Singapore among foreign workers. I think we can all agree that the process of inquiry was robust and the evidence and testimonials furnished to the COI by non-government organisations, civil society activists and, more importantly, the foreign workers themselves, helped us see things in a proper perspective. The COI has also concluded that, by and large, we have a good framework in place to protect foreign workers. This includes regular reviews to ensure that legislation is adequate and appropriate. Most Members would be aware that over the last few years, we have enacted a series of legislative changes to the Employment Act, the Employment of Foreign Manpower Act and the Employment Agencies Act to better protect workers. The COI's findings have also been corroborated by the interim results of another survey conducted after the riot by an independent survey company Nexus Link, and commissioned by MOM and the Migrant Workers Centre (MWC). Again, the results are consistent with the COI findings and showed that the vast majority of foreign workers, over 90%, expressed high Page: 60 levels of satisfaction with working in Singapore and planned to continue working here after their current employment stint. Over 80% said that they would recommend Singapore to their friends and relatives as a place for work.”
“It is why we are continuing to ensure that housing remains an option for people, not only just in terms of the access to housing but at the later stage of their lives, should they need, they will have means to rent out their house or rooms, and whether they want to downgrade, Lease Buyback, the Silver Housing Bonus or other measures that we are now presently looking at to enhance that as an option, should you need to use that as a means to enhance your retirement adequacy. So, at the end of it, the focus is about making sure that we provide for the welfare of our people, to provide for the assurance and to ensure that we can live long and live well as well. 4.59 pm”
“But what the actuarial experts are looking at is also cohort life expectancy, that is, life expectancy going forward. This is going to increase. And that is an issue that many people are concerned with. As the cohort life expectancy increases, how do Page: 72 we deal with that? That is why CPF LIFE kicks in. More importantly, how do we make sure CPF LIFE is a viable and an attractive option to ensure we provide that level of adequacy with peace of mind? In conclusion, I would like to add that the CPF system remains a valid system. It is not a perfect system. There are trade-offs. Obviously, those who believe that you should have full flexibility in using it, the CPF does not afford that, and for good reason. Because ultimately, the CPF allows us a peace of mind as you do have a constant, regular stream of income at the point of retirement, and to ensure that that continues, rather than depending on somebody else or the state. But if you allow monies to be extracted early and prematurely, there will be concerns. This is not about shifting risk to the people. This is about shifting risk to our children's generation. The responsible thing to do – may not always be the most popular – but the responsible thing to do is to take into consideration these fundamental changes that are facing our society, facing many societies in the world, and to grapple with them head-on. How do we ensure that with longer life expectancy, we can continue to provide that peace of mind and assurance for all Singaporeans as they live longer? That is the intent of the enhancements that we intend to make with CPF LIFE. That is also the purpose of why we are strengthening healthcare and the way we are doing it.”
“I can understand that, but I think that excitement in the eyes would turn into a look of horror if we do not make adjustments because life expectancy is increasing. If we kept to what it was and we are going to live longer, and many of us have also acknowledged it is not easy to plan for the long term, to make sure that whatever savings you have will sustain for the long term, it would turn into a look of horror when you realise that your monies are beginning to run out. We think it is important, from a dignity perspective, that individuals are able to provide for themselves as best as they can, which is why it is important for us to make sure that as you work longer, as you accumulate more, as you try to enhance the returns, you are also able to then provide for yourself through your payouts. But the more you draw out earlier, what it means is that the payouts would correspondingly reduce. The more we allow spending on housing, it would correspondingly mean less accumulated savings in your CPF Accounts and your payouts correspondingly would be smaller. That would create a strain. As acknowledged by many, including Mr Png, in terms of investments, it is not easy. If there are people who can assure us that they can get high returns with low risk, do let me know, I would like to be their friend. Many of us would like to be their friends. There are many people who believe that they can get high returns but it does not happen in real life. That is the reality that we face. The key thing is that we are adapting to the situation because life expectancy is increasing. As a point of clarification, Mr Png Eng Huat is correct to say that our current life expectancy is 82.5 years.”
“Some have asked if the CPF interest rates should be higher in order to withstand inflation. That is a fair consideration. Meanwhile, others have advocated for higher returns, perhaps taking on more risk with CPF monies. But is that something we want to do? We all know that with higher returns come higher risks. If we have funds, and there is a downturn in the market at that point of withdrawal, would it affect your returns? You can always smoothen it out, but that would always affect returns ultimately. Page: 71 The long and short of it is whatever that we are providing today – 2.5%, 4%, the plus 1% extra interest on the first $60,000 in every member's account – these are rates that are far higher than the equivalent rates provided by similar products out in the market today. Be that as it may, as the Prime Minister had mentioned and as the President had highlighted in his Address, this is an area that we are looking at – to make sure that we enhance CPF LIFE. CPF LIFE is a system where you can provide payouts for the rest of your life. You do not have to worry about having payouts run out. But how do you enhance that? That is important and that is something that we are looking at. We have been working on that together with the Pioneer Generation Package for some time and when the details are ready, as the Prime Minister mentioned, probably closer to National Day Rally. That is the timeframe we are looking at in terms of announcing some of the details, in terms of how we are going to enhance this. Mr Png Eng Huat highlighted this point. He cited the example of his father, how he was looking forward with excitement in his eyes to turning 55.”
“Along with this is to create a climate where jobs are available and there is also an intensity of jobs where as Prime Minister had mentioned, there is the ability to work longer. Now, raising the retirement age is not about forcing people to work longer. If you do not want to work longer, you can actually stop working any time that you wish to. But the fact of the matter is that we are living longer, we are staying healthier and many people actually find working as part of active ageing. Allowing people to continue to work longer is an important part. The intensity of work, the length or period of work is an important part in terms of helping you accumulate funds for your retirement needs. Tied to the intensity of work is also making sure that jobs are always available. We want to minimise unemployment. Not only do you have job opportunities, good wages over time, the length or period of work, you also want to make sure as often as possible, you do have work available. How do you create an environment where jobs are readily available for people? How do we keep Singaporeans relevant? Through training, retraining and, of course, job matching through some of the efforts that we put in through e2i, WDA and so on. The third component is with regard to returns. Several Members have talked about this. I think it is a fair concern – whether our returns are adequate. All of us here would like more than 2.5%, 4% and plus 1% on $60,000. All of us would prefer that. But where would it come from? How do we fund it? Several Members have raised this point, for example, Mr Zaqy Mohamed, Ms Tin Pei Ling, Ms Tan Su Shan, Assoc Prof Eugene Tan, Mr Png Eng Huat. Many members of the public outside of the House have also raised the issue of CPF interest rates and returns.”
“The Pioneer Generation Package is something that we have been working on for a long time. The details will be coming out. We wanted to make sure that we can provide the level of assurance for our Pioneer Generation but, at the same time, make sure that it is affordable. It is something that we can sustain and that do not burden the next generation because we know from demographics, apart from the fact that we are going to live longer, we are also going to have a smaller tax-paying base. And that is our children's generation. If we do not get it right, promises that are attractive, popular but when you finally have to pay the bill, the bill will be borne by our children's generation. So, we need to make sure that healthcare is provided for. Why again do I raise this? Because CPF plays a part, as through the CPF system, we are also looking out for the healthcare needs of the people. Of course, lastly, in terms of retirement adequacy, we have got a couple of components in terms of how adequate it is. There are three parts. One is wages. That is important in terms of opportunities, jobs, wages in terms of your ability to upgrade, your ability to draw better wages, increasing the productivity. And the competitiveness of your country is Page: 70 important, so that not only do you have jobs available, you are also able to command better wages over time. That helps boost your accumulation for retirement. An important component of that is Workfare, which is something we top up, particularly for the lower income groups. This is important. Workfare top-ups and other top-ups periodically are added on especially for the lower income and also for other Singaporeans.”
“We will realise that many countries that we look to today as models are also beginning to relook at their sums, because the can that has Page: 69 been kicked down the road has finally come to rest for some of these administrations. The example has been cited. In Australia, in the recent budget, many promises had been made previously, but when we need to finance these expenses, suddenly, your balance sheets need to add up. The so-called "right pocket and left pocket" must balance because, otherwise, how does the country fund these? In the same way, these are issues that we are grappling with. It is also important because it is about providing assurance and peace of mind. These are exactly the areas that we do need to look out for for our people. Now, what are things that we need to cater for? I would say there are a couple of things. One is housing. I think that is important. It is not just about the retirement stage but really at the early stage as well. How do we provide for a roof over our people's heads, so that they can build a home and for their families? Not only just at the early stage of their lives but also towards the end stage of their lives? How do we provide that? So, a range of measures has been done. We have been looking at improving the housing system. How do we continue to strengthen that? I raise that here because the CPF plays an important part. There are those who ask whether the CPF should, apart from providing for retirement adequacy, also be looking at housing adequacy. We believe that it is an important component and this forms part of that pillar. The other one is with regard to healthcare. We have talked about it in terms of Medisave, Medifund, MediShield and of course MediShield Life. And this is particularly important.”
“Mdm Speaker, I rise in support of the Motion to thank the President for his Address. I would like to briefly address some of the concerns that have been raised within this House and also outside this House with regard to the CPF Minimum Sum and so on. I would like to just state a couple of points. There are many things on the agenda and the President has highlighted a range of programmes that the Government has been looking at in the past few years. And certainly, looking forward, we are addressing issues for the immediate term and, more importantly, we are also addressing issues for the long term. The long-term issues that preoccupy us and other countries today are many, but of which, I would suggest two which are particularly important. One is the issue of healthcare and the other, retirement adequacy: pensions, pension funds and on. And the reason is that longevity is setting in. People are living longer, not just in Singapore, but elsewhere as well. How do you then contend with providing for their adequacy, in terms of healthcare needs, as well as retirement needs for the long term? The challenge also revolves around this. These are things that would kick in some years down the line as more people, the baby-boomers live longer, when they come on line and they have to draw on their healthcare expenses, they have to draw on their retirement needs, the government of the day would have to factor this in and to pay for it. How do you set up a system that is not only just necessary but is, at the same time, popular and, more importantly, sustainable? These issues preoccupy many countries.”
“Mdm Speaker, with regard to the first question, my Ministry does not track PRs specifically, so I do not have the details of the length of stay by PRs here. With regard to their properties, perhaps the Member would like to file a specific Parliamentary Question. I would imagine that if they owned properties here and they leave Singapore, if they are able to own the property, they could continue to own it in their names. With regard to the last question which is whether PRs are able to come back here to work, we will evaluate anyone who is applying to come back to work in Singapore. Obviously, their track record and their past histories will have a bearing on whether they are able to be employed here or not.”
“Mdm Speaker, the average amount withdrawn per year by CPF members leaving Singapore from 2003 to 2013 was $426 million, or 0.3% of average total members' balances. This includes the amounts withdrawn by former Singapore Citizens, former Permanent Residents (PRs) and foreigners who contributed to the CPF before 2003. CPF Board does not track the amount separately for PRs who have given up their Permanent Residency.”
“We will strengthen our system of enforcement and penalties to provide sufficient deterrence to any attempt by errant employers to circumvent our manpower policies or to compromise on basic employment standards. We will also step up our efforts to ensure that the well-being of foreign workers is looked after and manage the large foreign worker presence, including the provision of reasonable living conditions and amenities. We will adopt a Total Workplace Safety and Health approach by integrating measures to enhance workplace safety with health and well-being promotion. We will enhance our risk management framework for Workplace Safety and Health (WSH), redouble efforts to strengthen capabilities of WSH professionals and nurture a strong WSH culture and mindset among both employers and workers, so as to reduce the workplace fatality rate to less than 1.8 per 100,000 workers by 2018. Page: 48”
“It is now timely to review the impact of this legislation as well as the Tripartite Guidelines on the Re-employment of Older Employees. We will consider further extension of the re-employment age from age 65 to age 67. Efforts to help older workers stay productive and employable will also continue. We will continue to review and make improvements to the CPF system in consultation with our tripartite partners, so that Singaporeans can retire with a peace of mind while taking into account the cost implication to employers. A strong tripartite partnership is key to strengthening resilience and social cohesion, amidst our journey of economic restructuring. Industrial peace and harmonious labour relations will translate to more stable jobs for our workers and enhance Singapore's attractiveness as a business location. We will reinforce the tripartite foundation and work together to effectively address ongoing manpower challenges. Building harmonious, safe and progressive workplaces maximise the potential of our workforce. With an increasingly diverse and more educated workforce, we have extended the coverage of our Employment Act to include more workers – both PMEs and non-workmen. We will look into how unions can better represent the interest of PMEs and explore ways to provide access to affordable dispute resolution mechanisms. With the increasing prevalence of non-traditional working arrangements, we will also review how to better protect such workers through tripartite guidelines, or under the Employment Act. We will help employers build capabilities in adopting progressive employment practices, through the expanded Tripartite Alliance for Fair Employment Practices. These will include Page: 47 work-life, age management and best sourcing practices.”
“We are working with our tripartite partners to tailor training and job-matching services for the growing segment of Professionals, Managers, Executives and Technicians (PMETs) that have different learning needs and career profiles. We will also increase accessibility to training for SMEs and their workers, for example, by expanding the Enterprise Training Support (ETS) scheme to support e-learning. This will help companies capitalise on advancements in e-learning technology. We will ensure that Singaporeans are fairly considered for work. The Fair Consideration Framework will take effect from August 2014 and facilitate Singaporeans' access to better jobs. This will be launched in conjunction with the Workforce Development Agency (WDA) Page: 46 Jobs Bank, a one-stop portal for employers and resident workers to match job seekers with companies' manpower needs. We will strengthen efforts to build an inclusive society where all citizens can aspire and work towards a better life, and where everyone can contribute and share in the nation's progress. We will help uplift our low-wage workers through the creation of good jobs, skills upgrading as well as both broad-based and targeted interventions where necessary to support increases in their real incomes. The tripartite push for the Progressive Wage Model will put in place a clear progression path for workers to upgrade and secure higher incomes. We will also step up enforcement and promotional efforts to ensure that our low-wage workers' basic employment rights, CPF contributions and well-being are protected. Against the backdrop of increasing life expectancy and active ageing, the Retirement and Re-employment Act came into force in January 2012 to help older workers stay active and work longer.”
“MOM's goal is to enable all Singaporeans to secure good jobs, enjoy sustained increases in real incomes and have a more secure retirement. We also seek to build workplaces with progressive, safe and healthy practices as well as harmonious industrial relations. Our ageing population and slowing Singaporean workforce growth mean that we must be more manpower efficient and productive. We will press on with our efforts to achieve quality and productivity-driven growth to ensure sustained increase in real incomes. We must reduce reliance on manpower-intensive practices, while raising the quality and productivity of both our local and foreign workforce. At the same time, we must maintain a pragmatic balance in our manpower policies to ensure that Singapore continues to remain attractive to investors and talent and companies have access to the human capital required for growth. These efforts will ultimately provide the basis for sustainable wage growth and a greater array of good jobs which meet the diverse aspirations and capabilities of our people. Restructuring for higher productivity must continue. This will require determined and concerted efforts by all parties (employers, unions/workers, community, Government) working closely together. A workforce with the requisite skillsets, knowledge and experience is critical to achieving our goal of 2%-3% per annum growth in productivity in this decade. The Continuing Education and Training (CET) Masterplan 2020 will focus on addressing the challenges of economic restructuring and making the CET system responsive and relevant to evolving needs of industries, companies and individuals. We will continue to strengthen the culture of self-ownership for lifelong learning and empower individuals to make informed decisions on upgrading.”
“But this legislation approach will not be appropriate for all sectors and occupations. A better approach for other sectors is NTUC's on-going efforts to work directly with employers to develop progressive wage structures and career progression pathways for rank-and-file and even PME workers. We also support the low-income earners through a range of other support schemes whether in the form of housing, medical and education subsidies. Page: 131”
“I have talked about the need to raise the incomes of lower-wage Singaporeans for a few years now and we have been putting in place measures to do so. It requires a holistic and wide-ranging effort. As a key first step, we need to keep the economy healthy, competitive and vibrant so that a wide range of jobs is available. Secondly, our tightened labour market helps to keep unemployment low and put some upward pressure on wages. Thirdly, we have enhanced Workfare, which now supplements the incomes and retirement savings of more than 400,000 Singaporean workers earning less than $1,900, and encourages them to work regularly and up-skill. Through the Inclusive Growth Programme, low-wage workers benefit from companies' productivity gains through higher wages. MOM has also raised the full-time equivalent (FTE) salary for full-time local workers from $850 to $1,000 in July 2013. The FTE salary is used to determine how many local workers a company has, as a basis to calculate the foreign worker quota that the company is entitled to. It also ensures that local workers are employed meaningfully and are not paid token salaries just to pad the numbers. However, it is important to also understand that raising incomes has to be based on productivity improvements, to be sustainable in the long run. Mandating the Progressive Wage Model (PWM) to support wages at the very low end is a highly targeted intervention applied to specific sectors where there is a particular problem with the labour market, such as prevalent cheap-sourcing coupled with a lack of union representation for the workers. We are applying the PWM requirement through legislation in the Cleaning, Security and potentially the Landscape Sectors.”
“The Work Injury Compensation Act (WICA) offers workers a no-fault, expeditious and low-cost route to compensation for any injury arising out of and in the course of employment. Employers are required under WICA to pay for their worker's medical leave wages, medical expenses and compensation for permanent incapacity or death, where applicable. For medical expenses, which include fees for medical reports to support work injury compensation claim, employers are liable to pay up to $30,000 or one year from date of accident, whichever is reached first, as long as treatment is considered necessary by a Singapore-registered doctor. Injured worker who has paid for his medical reports or treatment from his own pocket can seek reimbursement from his employer. Local workers who require financial assistance while waiting for their compensation claims can apply for the Special Relief Fund1 administered by the Singapore Labour Foundation. The fund which sets out to aid industrial accident victims provides up to $5,000 in temporary relief for eligible applicants. Workers are advised to approach MOM for assistance if their employers fail to compensate them for work-related injuries. The Ministry will not hesitate to take firm actions against such errant employers.”
“The key principles to guide information sharing between management and unions in unionised companies are articulated in the Code of Industrial Relations Practices jointly formulated by the Tripartite Partners. Unions and management should have regular platforms where relevant information can be shared and discussed in an open and honest manner. There should also be a clear understanding and agreement on the type of information that can or cannot be shared and on how relevant information can be used by the parties involved especially during negotiations. I am happy to note that by and large, management and unions have observed the principles on information sharing articulated in the Code of Industrial Relations. Many have also held regular sharing sessions or dialogues to share relevant information and discuss issues of mutual concern. Sharing of relevant and timely information facilitates constructive dialogue and negotiation in good faith and helps build stronger trust and respect between management and unions. It also helps to strengthen labour management relations at the company level, thereby benefiting both workers and the company.”
“Mdm Chair, I think this is a valid concern. I would say that, from the onset, we do advise, and this is what HDB does as well, families not to overextend themselves. Many of us as Members of Parliament would have encountered this when our residents come and ask us to appeal for a Page: 113 larger loan for them. HDB sometimes advises that they may only be eligible for slightly smaller loans. There is a good reason for this and that is to make sure that families do not overextend. When they overextend, and sometimes when they do end up unemployed, it impacts on repayment and eventually it will come to a head when they reach age 55. That is a real concern. But as we have mentioned before, we do take a look at every individual case and see whether we are able to support them in different ways. At present, we have no plans to review that specifically. Where there are challenges when they hit 55, that is something that we can look at on a case-by-case basis.”
“Mdm Chair, with regard to the Minimum Sum, we do recognise that there will be some individuals, across the different age bands, that would not be able to meet the Minimum Sum. In such cases where they do have challenges, there will be other schemes supporting them. As I mentioned earlier, in terms of the way the Government approaches supporting individuals, from MOM's perspective, we provide one pillar and the Page: 111 CPF is one important pillar. But, importantly, we also have different schemes to support them in different ways. So, while the Minimum Sum is something that they will accumulate through their work, we recognise, especially for the older workers, for those who started work when wages were not quite as high and their contributions were not quite significant, many of them would not meet their Minimum Sum. The challenges that they face would be supplemented in different ways but not necessarily from CPF scheme itself. As to whether some companies may be open to contributing more to their workers, in terms of rewarding them, that is something that we can look at, although I suspect that companies would contribute in different ways. But that is something we can look at, if companies are actually keen to contribute more via the CPF route.”
“In addition to restructuring their businesses, employers have a role to play to make their firms attractive places to work. This means paying attention to career and wage progression, engaging employees, and designing work arrangements that enable their employees to contribute their best to the firm. This has significant bearing in productivity. Are they prepared to go the extra mile for you? If we are able to pay attention to that, that would have a big part to play in productivity. Employers also have a significant role to play in training and upgrading their employees' skills. Singaporeans, too, must respond by seizing these training opportunities and ask what value we as employees can add to the firm and not simply focus on what the firm can offer to us. All of us really, have a part to play. So long as we keep working together, we will continue to ensure that Singapore remains a Nation of Opportunities, for all Singaporeans. Building Capabilities for Future”
“We will work closely with the industry, to explore ways to support manpower-lean business models or develop a local pipeline of workers with the relevant skills and experience. This is where MOM, MTI and MOE work closely to make sure that the local pipeline is provided for. The new Jobs Bank will be launched in the middle of 2014. WDA is now in the process of engaging groups of employers and potential job seekers, to test the beta version of the Jobs Bank. As with all new platforms, I do not think it will be perfect from the word "go" and users will take some time to become familiar with it, but we will continue to refine and improve the Jobs Bank, as we gain more experience and feedback from Singaporeans and employers. This is an exciting development, and we see a lot of potential in this. Mdm Chair, allow me to summarise in conclusion. While we have not announced major foreign manpower tightening measures for the non-Construction sectors in Budget 2014, businesses must press on with restructuring and should lose no time in making the adjustments needed to remain viable. As Members can see, some companies have moved on and have embraced the change. Many companies are now coming round to it and many of them have been appealing. Many Members have received the appeals but Page: 60 we do need to move on and many are beginning to respond, so that is encouraging. The fact is there will be casualties in any restructuring effort and it will be painful for many. But for those willing to adapt, the Government will help through our transitioning support package. All of us – Government, employers and employees – play a part in our restructuring journey. This strong spirit of tripartism is a real strength for Singapore.”
“As a result, Services S Pass growth has moderated from 8,100 in the second half of 2012, to 1,000 in the second half of 2013. We will continue to monitor the situation closely as the effects of the recently announced S Pass tightening measures are still working their way through. We will continue to review the S Pass framework, to ensure that the quality of S Pass holders continues to meet the manpower needs of industries and complement our local workforce. Page: 59 Mr Patrick Tay and Mr Zaqy Mohamed have asked for an update on the implementation of the Fair Consideration Framework (FCF), and the specific actions that we had taken on those with nationality-based discriminatory HR practices. The purpose of the FCF is to encourage a level playing for Singaporeans and signal the importance of considering Singaporeans fairly for job opportunities. From 1 August 2014 this year, firms must advertise their vacancies in the Jobs Bank for at least 14 days before they are eligible to apply for an Employment Pass if needed. The Government has started identifying firms that may have scope to improve their hiring and career development practices. These are firms with a disproportionately low share of Singaporeans within the PME levels in their industry. Since the start of this year, we have identified and started initial discussions with more than 50 employers. Firms with shortcomings in their HR practices will be required to implement an action plan to address these shortcomings. In some cases, the issue may not be a problem with their HR practices, but rather a gap in the skills that are available in the local workforce. This happens.”
“Let me next address the concerns raised by Mr Patrick Tay, over the relevance of the S Pass in our Work Pass framework. The S Pass was introduced in July 2004 to enable companies to bring in middle-level skilled manpower, such as Associate Professionals and Technicians (APTs), to augment manpower gaps across various industries within a given quota. Even as our local workforce becomes more educated and skilled, the S Pass will remain relevant in two ways. First, there will still be APT manpower gaps which our local workforce may not be able to fill. In the 2013 Job Vacancy Survey administered by MOM, there were more than 4,000 APT vacancies reported by employers in September 2013, which they found hard to fill with locals. Second, more junior-level foreign PMEs will fall into the S Pass category as we progressively raise the Employment Pass (EP) qualifying criteria to level the playing field for local graduates, and they will be subject to the S Pass sub-DRC and levies. This forms part of our effort to raise the overall quality profile of our foreign workforce over time, so that they continue to complement our increasingly educated local workforce. To strike a careful balance between meeting the manpower needs of industries and maintaining a level playing field for locals, we have been progressively tightening the S Pass qualifying criteria, raising the foreign worker levy and cutting the S Pass sub-DRC since July 2011. Most significantly, in July 2013, we required S Pass holders with more experience to qualify at higher salaries and further cut the S Pass sub-DRC for the Services sector from 20% to 15%, as locals do tend to look for jobs in that sector.”
“For industries appealing for more generous foreign worker quotas and lower levies, we need to ask whether the industry is as manpower-lean as it is in other developed countries, whether the local workers are paid fairly and, more importantly, are paid better than alternative jobs in Singapore. Because that raises the question of whether the wages offered are not as attractive as it should be and why these industries are not generating good jobs for locals. 1.45 pm Mr Dhinakaran has also asked whether we should increase levies when we have reduced quotas. Well, we have looked at this extensively over the years and the point is, we do need to do both but in a judicious manner. Why? Firstly, despite the DRC cut, the number of Services work permit holders and S Pass holders is still growing, albeit at a slower pace. Secondly, if the cost of foreign labour is significantly lower than local workers, firms will be incentivised to recruit foreign workers first on the basis of lower cost and will seek to maximise their usage of foreign workers. Thirdly, too low a cost of labour will also delay and deter the adoption of labour-saving technology. That is the whole point. We need to move towards a much more manpower-lean economy. Firms can reduce their levy burden by either becoming more manpower-productive to rely on fewer foreign workers, or in hiring higher skilled R1 Page: 58 workers where they are needed. The more foreign workers they rely on, the more levies they pay. It is quite a fair and simple principle, but I think it is meant to shape the economy so that we can move towards the direction that we are looking at. It sends a clear signal to less productive firms and industries that behaviours and business models will have to change in order to survive.”
“We further welcome any efforts by industry associations to come up with sample contracts covering specific terms that are relevant to their sectors. Please do come forward with your suggestions. With a large and diverse workforce, invariably and inevitably, some employment disputes will be inevitable. I would like to reassure Mr Yeo and Members of this House that where these involve basic employment standards under our laws, we will ensure that standards are upheld. We will continue to build on existing processes for NGOs like Migrant Workers Centre, HealthServe and so on, to help workers seek assistance from MOM. MOM will also continue Page: 57 to step up enforcements against contraventions of the Employment of Foreign Manpower Act (EFMA). In 2013 alone, we prosecuted about 550 employers for EFMA contraventions. Mr Dhinakaran raised a suggestion to further segmentise the DRC for the Services sector. We have debated this in the last several debates. We have applied our foreign manpower policies consistently across the Services sector. However, in exceptional circumstances, we have been flexible. Healthcare is one industry where we have granted more liberal controls, due to their essential nature and an acute shortage of trained locals. We do not rule out further flexibility where warranted, but we would want to be assured first that the industry is essential, that productivity is already high, and that the locals therein are relatively well paid and have reasonable career and wage progression pathways.”
“As part of these efforts, we intend to enhance our levers with the larger foreign worker dormitories by developing new regulations. I mentioned previously that the Government will also be launching more dedicated foreign worker recreation centres. In all, these measures will enable us to better meet the evolving needs our foreign workers face as well as to facilitate a more harmonious co-existence with the communities in the vicinity of large dormitories. I would like to take the opportunity to thank Mr Yeo for his leadership and his team, and to congratulate the Migrant Workers Centre (MWC) and the Private Bus Associations on their initiative to enhance weekend transport for workers. We want to celebrate such ground-up initiatives because they will definitely play a part in complementing whatever that we are doing. And we encourage and hope to see more of these efforts. We regularly review our legislation to ensure adequate protection for workers. We will study Mr Yeo Guat Kwang's suggestions to facilitate electronic salary payment and we have already begun discussing with industry on how to broaden the circumstances under which foreign workers may change employers, with a view to reduce the churn of experienced workers. This is something that MOM has been looking at for some time and I am particularly keen to take this forward, to see if we can make this possible. With regard to having a standardised employment contract and sector-specific guidelines, a sample contract covering key employment terms has been worked out in consultation with the tripartite partners, and this has been made available on the website of the Tripartite Alliance for Fair Employment Practices (TAFEP).”
“Together with MND and BCA, we will also be consulting the industry on a longer term proposal to impose a minimum level of R1 workers across all Construction firms. We will also review our Skills Recognition Framework, and the eligibility criteria for foreign workers to qualify for R1 status. We want to ensure that we raise the quality of the foreign workers here and encourage employers to retain experienced and skilled workers. We have already begun discussions with firms in the Process sector, and will soon be extending this review to cover the Marine sector. We encourage companies to provide your feedback to us. In response to Mr Yeo, we feel that the situation is less pressing for Services and will not extend this move to that sector. These measures will mean that firms that are more reliant on new, inexperienced workers, or who choose to constantly churn foreign workers, will be subjected to higher levy bills. I think this makes sense. Conversely, firms that rely more on experienced, higher quality workers, will be less affected. As I had mentioned in Parliament in January, while the situation with regard to our foreign workers' well-being is generally good but we do intend to improve where we can. Mr Yeo spoke about holistically and deliberately planning for the needs of our foreign workers, not just in their workplaces, but Page: 56 also where they live and play. Indeed, this has been so in our on-going efforts in managing the foreign workforce in Singapore. Since 2008, an Inter-Ministerial Committee has been looking into issues, such as foreign worker housing and transport. One of our on-going priorities is to speed up the construction of dormitories so that foreign workers can stay in these purpose-built accommodations.”
“This includes the higher S Pass minimum qualifying salary, and the reduction in Dependency Ratio Ceilings (DRCs) and S Pass Sub-DRC from 25% to 20%. Members will be glad to know that we are not introducing further tightening measures this year, with the exception of the increase in foreign worker levies for the Construction sector. We will monitor foreign manpower growth and productivity improvements in each sector carefully, before deciding whether any further measures are necessary. Page: 55 I would like to thank Mr Zainudin Nordin, Mr Yeo Guat Kwang and Mr Teo Siong Seng for their views on the foreign workforce. The measures that we have announced in the Budget this year signals our intent to raise the quality of our foreign workforce and, by extension, productivity. We need to encourage firms to recruit and retain skilled foreign workers, and move towards having a slightly smaller pool of skilled foreign workers, rather than just relying on sheer numbers of inexperienced and low-skilled foreign labour. That transition must happen; we cannot grow at the same rate as before. Therefore, we have introduced a new Market-based Skills Recognition Framework for the construction sector. This is to encourage firms to retain experienced "Basic Skilled", or what we call the R2 Work Permit Holders for a longer period, on higher salaries. With this, companies can upgrade their R2 workers to "Higher Skilled", or R1 status, and therefore, will not have to bear the higher foreign worker levies that we announced in Budget 2014. We will also extend the maximum Period of Employment (POE) for R1 workers from Non-Traditional Source (NTS) countries and the People's Republic of China (PRC) who work in the Construction, Marine and Process sectors.”
“Yang Kee has adapted by forming an alliance with four other transport companies to pool excess trucking capacity through an order exchange cloud server. This has helped to alleviate manpower constraints in its trucking positions, as companies are able to fully utilise the resources at their disposal. The companies are also able to tap upon each others' expertise and enjoy access to resources previously unavailable. So, this is a classic example of how some companies have embraced change. These changes have allowed Yang Kee to enjoy productivity improvements of up to 20%. We want our SMEs to do well, we want them to adapt, we want them to continue to create good jobs and opportunities for Singaporeans. But we cannot proceed with business as usual. We will be committed to helping companies like Yang Kee transform their existing business models. This includes support through the Productivity and Innovation Credit (PIC), which has been extended until 2018 and other schemes, such as the new PIC+ that is targeted at SMEs specifically. The feedback that Members have provided in terms of making sure that these PIC schemes are easily accessible remains an important one. We will continue to improve on that. I want to take this opportunity, and I think it is important to do this, to remind all businesses that a few of the foreign manpower tightening measures that we had previously announced will take full effect this year and in 2015, when the transition period ends. Often times, we get feedback, "How come you suddenly change policy?" We have not. It has been announced; we have given time for transition. We would like to remind all businesses that this is going to happen in July this year and in 2015.”
“Some global and even regional set-ups, need a cosmopolitan make-up due to the nature of their business and the reach. Yes, it will mean that when foreigners are here, they will compete for jobs, but yet, at the same time, by being here, it allows companies to be here and at the same time, generate those very jobs that go to our people. These jobs are generated directly from the jobs created in these companies, and indirectly from the business that is generated by having those companies here in the first place. Again, it is a fine balancing act. We also know that given Singapore's physical size – we have discussed some of the concerns in this House because of the constraints and the infrastructure – we really do need to grow within the constraints that we have. This explains why we need to tighten foreign manpower access at all levels. Again, you can see that there is a balancing effort that needs to be struck here: that between maintaining our competitiveness and the need to moderate growth in our labour force. We need to ensure that whatever the trade-offs, that these trade-offs are real. On balance, what is the net effect? Is it positive for our people? Is it positive for our society? Page: 54 We have introduced tightening measures in a progressive manner since 2010. Foreign employment growth has slowed down significantly, for the non-Construction sectors. We know that many local companies, both SMEs and non-SMEs, are feeling the pain. Take Yang Kee Logistics, for example. This is a local SME with more than 60% local employees. The company provides end-to-end logistics solutions for various sectors. Similar to many logistics firms, Yang Kee faces difficulties in servicing their clients, given the tighter manpower situation.”
“As I mentioned, this is important because, ultimately, when that happens, job opportunities are created for us. Page: 53 Let me share with Members a recent dialogue that I have had with Pasir Ris East residents. You could see their tensions. Mr Benjamin Wan, a resident, shared how he was affected by employers who, he claimed, preferred to hire foreigners to locals. Some Singaporeans, like Mr Wan, wanted us to be more stringent on admitting foreign talent; others call for a "Singaporean first" policy. At the same dialogue, another participant, Mr Leong Weng Kuan, lamented about our tightened controls on foreign workers. Mr Leong runs a local business and shared how difficult it was to find locals to fill jobs that are available in his firm. Mr Leong was less concerned about PMEs as he felt that these Singaporeans are quite mobile and that there are already significantly good career opportunities for them. Within one dialogue, we could see divergent views – both equally valid in some sense, but how do you strike that balance? I have one over-riding consideration when I look at how to shape our manpower policies. Do they, on balance, benefit Singaporeans and Singapore? I had mentioned earlier that it is critical that our economy remains healthy so that good jobs can be created to meet the needs of a better-educated workforce. As a country with a small domestic market, it is important for us to understand that we need to remain open to the global economy. It is our lifeline. It enables us to thrive and create those opportunities that we have been talking about. An important part of this equation is to have a diverse global workforce that allows employers to tap on skilled foreign manpower who complement and augment.”
“Even though the Employment Act was recently amended to protect more Singaporean workers, Singaporean PMEs who earn more than $4,500 a month and fall outside the scope of the Employment Act have approached NTUC and MOM for assistance on workplace disputes. There are cases where employees have legitimate grievances but might not be able to afford to take legal proceedings. MOM is presently working with our tripartite partners to enhance employment dispute resolution mechanisms, as part of the Employment Act Phase Two review. We are looking to provide an affordable and expeditious avenue for employees to resolve disputes relating to breaches of individual contract of employment. As part of this review, we are also looking into how we can enhance the current tripartite mediation framework for union members in non-unionised companies. We are discussing with relevant stakeholders and we will provide an update in due course. Let me now return to our efforts to restructure the economy. Mr Teo Siong Seng and Mr Dhinakaran have expressed the strains the businesses are feeling, due to the tight labour market and rising business costs. In fact, many of you have raised this in the past few days. As Minister Lim Hng Kiang shared yesterday, we are keeping close tabs with the ground. We have been receiving this feedback ourselves. Some of these business people are not your big businesses; they are small SMEs in your local area; and they are struggling because, for some of them, it is really a matter of life and death. Ms Jessica Tan spoke at the time about how it is so important to access to quality manpower because it is key for businesses to locate high-value operations in Singapore.”