Tan See Leng
Singapore
“We are aware of the Singapore Workplace Report 2026, produced by the Singapore Institute of Directors and Gallup, and we are studying its findings.”
“The Taskforce for Responsible Retrenchment and Employment Facilitation (Taskforce) actively reaches out to all retrenched local employees. In 2025, 77% of Mandatory Retrenchment Notifications (MRNs) were submitted at least seven days ahead of the employee's last working day and 73% of MRNs were submitted at least two weeks ahead.”
“From 2022 to 2025, vacancy rates for technical maintenance roles in the real estate services sector, which includes facilities management, have been lower than the overall job vacancy rate, except in 2025 (see Table 1).”
“The Skills and Workforce Development Agency (SWDA) works with sector agencies to determine the courses which are required by the respective industries. The SWDA currently funds more than 100 courses, spanning a wide range of mental health-related fields.”
“In the first quarter of 2026, the profile of retrenched residents aged 50 to 59 was broadly similar to the profile of all retrenched residents, predominantly comprising professionals, managers, executives and technicians (PMETs) and were mainly from wholesale and retail trade, manufacturing, financial and insurance services and profession…”
“In 2025, around 4,200 resident professionals, managers, executives and technicians (PMETs) aged 45 to 59 were retrenched, higher than 3,200 in 2024 and 3,500 in 2023. Their six-month re-entry rate remained stable at 48.5% in 2025, compared with 48.9% in 2024 and 50.1% in 2023.”
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“In reviewing how the Government can better support working caregivers, we recognise that caregiving needs are diverse, and a holistic approach is needed to help caregivers enter or remain in the workforce. Leave can alleviate the stress of managing work and caregiving needs like accompanying care recipients to medical appointments. However, leave on its own is unlikely to fully support working caregivers throughout their caregiving journey. Firstly, caregivers of seniors with high care needs may require long-term care support to ensure that the needs of their elderly loved ones are met whilst they are at work. There is a range of home and community care options to meet such needs, and the Ministry of Health is also exploring new care models, such as the Enhanced Home Personal Care service, to better support seniors’ care at home. Secondly, working caregivers have also highlighted that flexible work arrangements (FWAs), such as part-time and staggered work hours, are important in helping them manage work and caregiving responsibilities more sustainably. To shape stronger norms around flexible workplaces, the Government has worked with the tripartite partners to launch the Tripartite Guidelines on FWA Requests and developed information and training resources to build employers’ capabilities to implement FWAs. In considering whether to provide mandatory leave for caregivers, we need to balance caregivers’ needs with the potential impact on employers’ business costs and operations, as well as the employability of caregivers in the long term. Any leave enhancements will need to be studied carefully and developed in close consultation with the tripartite partners.”
“Among employees of foreign-owned firms who earn a gross monthly income of above $12,500, two in three are Singapore residents.”
“Based on trends observed from 2018 to 2023, the average number of annual leave days provided to all full-time resident employees aged 25 to 64 in the cleaning, security and landscape sectors is 11 days for those who have worked for less than 10 years and 14 days for those who have worked for 10 years or more. The Ministry of Manpower does not specifically track the number of leave days of outsourced workers who remain in the same workplace, but whose employers change when service buyers switch service providers. To improve employment conditions for our workers, the tripartite partners introduced the Tripartite Advisory on Best Sourcing Practices in 2008. It encourages service buyers to offer no worse-off remuneration packages and to recognise the length of service of incumbent workers whom they employ under the new contracts. The Advisory also encourages service buyers to emphasise service quality and outcomes in their contract terms, so that service providers compete on delivering quality services instead of solely trying to offer the lowest price, at the expense of their workers’ employment conditions and well-being.”
“In Singapore, income is taxable and payouts from the SkillsFuture Jobseeker Support (JS) scheme are considered income. However, we intend to exempt the JS scheme payouts from income tax. This is consistent with the policy objective of the scheme to provide temporary financial support to involuntarily unemployed jobseekers, who face employment setbacks and need greater support.”
“From 2013 to 2023, real wages of the 20th percentile worker have risen cumulatively by 30%, faster than that of the median (50th percentile) worker at 22%1. As recommended by the 2021 Tripartite Workgroup on Lower-Wage Workers, we will continue to narrow the wage gap over this decade. In line with the Workgroup’s recommendations, we have expanded the Progressive Wage Model (PWM) to cover more sectors and occupations, and the Tripartite Partners have negotiated meaningful and sustainable wage increases in the coming years. With the full implementation of the recommendations by the Tripartite Workgroup, the expanded PWM, Local Qualifying Salary requirements and the Progressive Wage Mark cover up to nine in 10 lower-wage workers. The National Wages Council, in its annual guidelines, also recommends higher wage growth for lower-wage workers to narrow the wage gap between lower-wage workers and the median wage worker. With these efforts, we expect the wages of the 20th percentile worker to continue to increase in the lead up to 2030, at a rate faster than that of the median earner.”
“The number of full-time resident employees aged 25 to 64 who were in their first year of employment and received only seven days of paid annual leave is shown in the table below:”
“The Ministry of Manpower does not collect data on the age of employees who are not covered by employer-provided medical insurance. Employers are not required to provide medical insurance to their employees, although some employers choose to do so as a form of employment benefits. Employers could choose to make contributions to their employees’ MediSave account, to help pay for the premiums of MediShield Life or Integrated Shield Plans. This allows employees to retain insurance coverage even when they change employers or stop working. All Singapore Citizens and Permanent Residents, whether employed or unemployed, are covered by MediShield Life throughout their lives.”
“The Silver Support Scheme is targeted at seniors who had lower incomes during their working years and now have little or no family support and resources in retirement. Seniors who live in the Housing and Development Board (HDB) executive apartments or maisonettes are likely to have access to more resources and hence are not eligible for the Silver Support Scheme. Nevertheless, seniors facing unique circumstances can appeal to the Central Provident Fund Board, which will review their circumstances holistically on a case-by-case basis. Over the past five years, an average of 10 appeals for the Silver Support Scheme by seniors living in HDB executive apartments or maisonettes have been successful each year.”
“Self-employed persons and service buyers are encouraged to negotiate contracts that are mutually favourable, including providing for scenarios where a party is unable to fulfil the contract, such as pregnancy. Parties can take reference from the Tripartite Standard on Contracting with Self-Employed Persons, and any disputes can be brought to the Small Claims Tribunals.”
“The Ministry of Manpower (MOM) has worked with food delivery platform operators to advise riders against allowing foreigners to use or share their food delivery accounts. Platforms operators can also enhance their processes to prevent the misuse of accounts by unauthorised parties. Working through platform operators is more effective and efficient than conducting proactive inspection, given the decentralised and mobile nature of food delivery work. MOM also acts on complaints to weed out these practices. This is also an effective channel of enforcement as legitimate workers have an interest in raising cases of offences to the authorities. From January to June 2024, MOM received a total of 14 complaints on suspected illegal foreign delivery riders. Enforcement action was taken against one case as the other cases were found to be unsubstantiated.”
“When a service buyer changes its vendor, the incoming vendor may rehire workers from the incumbent or hire new workers. Firms bid for contracts guided by what is sustainable for their businesses and regulatory requirements. We should not intervene in this market-driven process, as long as the employer complies with Progressive Wage Model (PWM) salary requirements and employment laws. The Progressive Wage framework has served our lower-wage workers well in the past decade. PWM, the Local Qualifying Salary and the Progressive Wage Mark accreditation scheme collectively benefit up to nine in 10 full-time lower-wage workers. Real incomes of lower-wage workers at the 20th percentile have risen cumulatively by 30% from 2013 to 2023, faster than the median worker at 22%. Thanks to strong the tripartite partnership among employers, unions and the Government, the wage requirements for PWMs in outsourced sectors, such as cleaning, security and landscape, will increase at a rate of up to 10.8% per year from 2022 to 2028. These wage increases for outsourced sectors are announced in six-year schedules, so firms can account for these future PWM wage increases when bidding for multi-year contracts. With our tight labour market, employers who do not pay and treat their lower-wage workers well will have difficulties attracting and retaining workers, especially since PWMs are lifting the wages of jobs in key sectors. Workers should also upskill themselves, either to take on higher-rung jobs within the same industry or to have more career options across adjacent sectors. If any worker feels unfairly treated, they may approach the National Trades Union Congress or the Ministry of Manpower for assistance.”
“The Employment Pass (EP) and S Pass qualifying salaries are benchmarked to the top one-third of resident professional, manager, executive and technician (PMET), and Associate Professional and Technician wages respectively. This ensures that EP and S Pass holders are of good calibre relative to the improving wages of resident workers. The salary benchmarks are based on actual resident wages from previous years. Thus, EP and S Pass qualifying salaries follow, instead of lead, resident wages. It is not a zero-sum game between foreign workers and local workers. Improving the quality of our foreign workforce enables our businesses to grow and move up the value chain. By enlarging the economic pie, we create better jobs for locals. This can be seen by the fact that over the last decade, we have raised EP qualifying salaries from $3,000 to $5,000, and S Pass qualifying salaries from $2,200 to $3,150. The number of EP and S Pass holders grew by 30,300 and 17,600 respectively. Over the same period, the median income of resident PMETs grew from $5,500 to $7,020, and the number of local PMETs increased by 381,100. Most employers will not just raise the wages of their existing EP and S Pass holders to meet the qualifying salaries. Instead, they would let them go or convert them to another pass if their value-add to the business is not commensurate with the higher salaries. This is reflected in data showing that qualifying salary increases are associated with upticks in the churn rate of foreign workers. To provide employers with lead time to plan for such changes, we typically implement qualifying salary increases to existing work pass holders around 18 months after announcing the new qualifying salaries.”
“Today, about 200 dormitories, with a combined capacity of 70,000 beds, already meet the new dormitory standards. These include all new dormitories that were licensed after September 2021, which are required by law to meet the new dormitory standards. Of the remaining dormitories required to transition to interim standards by 2030, 14 have either commenced works or informed the Ministry of Manpower of their transition plans. The 14 dormitories have a combined capacity of about 100,000 beds, and account for about half the number of beds that need to meet the interim standards by 2030.”
“The MySkillsFuture portal offers about 30,000 courses, ensuring a wide range of options for skills upgrading. In addition, individuals can tap on SkillsFuture Advice workshops and one-to-one Skills and Training Advisory with Skills Ambassadors for more information, resources or guide. Freelancers, like employees, would benefit from these Government services and can seek further support from WSG and SSG to chart out their plans and take concrete actions to stay relevant and future-ready in the fast-changing economy.”
“We recognise the challenges that the workforce faces in keeping pace with technological trends and evolving skills needs, particularly for freelancers who lack access to training and development opportunities that are typically provided for the traditional employees by employers. Nonetheless, the Government has invested in a variety of programmes and resources to directly support workers that will benefit freelancers. Workforce Singapore (WSG) and SkillsFuture Singapore (SSG) provide a range of resources for macro trends and insights to help individuals make informed career and training decisions. These include the sectoral Jobs and Industry Transformation Maps, an annual Skills Demand for the Future Economy report, the SkillsFuture Jobs-Skills Insights publications and the Skills Frameworks. These would be useful references for freelancers to consider on how they might pivot or enhance their careers and reskill or upskill accordingly to meet future needs. WSG’s MyCareersFuture portal also features the CareersFinder, which uses artificial intelligence and labour market data to help individuals, including freelancers, identify career options based on the individual’s skills and job experience, as well as relevant training opportunities. Additionally, a suite of personalised career guidance programmes, Polaris, is available through WSG and its appointed providers, Ingeus and AKG, offering tailored support from certified career coaches for career planning needs. The Government also provides substantial support for all Singaporeans’ training needs, including freelancers. Singaporeans can access up to 90% subsidies for SSG-approved courses and use their SkillsFuture Credit base tier1 to offset the out-of-pocket fees.”
“Beyond that, employers can tap on resources from the Institute for Human Resource Professionals, which provides playbooks on business and workforce transformation, to improve the capabilities of their human resource (HR) teams. With stronger HR capabilities, employers will be better able to design more flexible and sustainable manpower arrangements for covering their employees on parental leave and ensure business continuity. For example, employers can provide more workplace flexibility by allowing parents to effectively go on a part-time work arrangement by taking a few days of SPL each week rather than consuming the leave in a single block. Such flexible work arrangements can also enable employers to recruit and retain seniors and caregivers who are looking for such part-time work opportunities, effectively complementing and expanding their overall manpower pool. Employers can also tap on workforce grants, such as Workforce Singapore’s Career Conversion Programmes, to reskill workers to improve overall productivity and address operational challenges. On top of workforce grants, the Government also has schemes to support business transformation. Business owners can visit the GoBusiness portal at gobusiness.gov.sg for more information on the Government schemes available.”
“In reviewing parental leave policies, the Government consults the Tripartite Partners and seeks to strike a balance between supporting parents’ needs and managing the impact on businesses. In introducing the recently announced parental leave enhancements, the Government recognised that employers will need to make adjustments to their manpower planning. To help employers manage the cost impact, the Government will reimburse employers for the salaries of their employees who take up Government-Paid Paternity Leave or Shared Parental Leave (SPL), up to the prevailing reimbursement limit of $2,500 per week, or about $10,000 per month. This is not an insignificant sum and underscores the Government’s support for both employers and employees. Employers can use these wage savings to hire temporary workers or make operational adjustments. The Government also incorporated employers’ feedback in the design of the SPL scheme. For example, to allow sufficient time for employers to plan for covering arrangements before an employee goes on parental leave, there will be a new minimum notice period requirement of at least four weeks, which employees must serve before taking leave. This will apply for the existing Government-paid maternity and paternity leave, as well as the new SPL. Additionally, parents will only be able to make changes to their SPL sharing arrangement within the first four weeks of the child’s birth. Any changes thereafter will require their employer’s agreement. This balances between the need for parents to have sufficient time to decide on caregiving arrangements and the need for employers to have certainty and plan for covering arrangements.”
“The Ministry of Manpower (MOM) has issued Stop Work Orders (SWOs) to the contractors involved in the incidents at Lentor Avenue and Resorts World Sentosa, requiring them to review their workplace safety measures before the SWOs can be lifted. The contractors must conduct risk assessments for workplace activities and audits of their safety and health management systems. They are also required to submit plans to address the audit recommendations to MOM. Meanwhile, investigations into the two incidents are ongoing. MOM will determine if additional safety measures are necessary for all worksites, after investigations have concluded. Nonetheless, the Multi-Agency Workplace Safety and Health Taskforce (MAST) has continued to roll out measures to strengthen the Workplace Safety and Health (WSH) standards in the construction sector. These include the enhanced WSH requirements for public sector construction and construction-related projects introduced in April 2024 and the mandatory Video Surveillance System for construction worksites with contract values of $5 million and above introduced in June 2024. These measures complement the suite of measures that MAST has implemented since the Heightened Safety Period in 2022, which has led to improvements in WSH performance for 2023 and the first half of 2024. Specifically, the workplace fatal and major injury rate for the construction sector declined from 41.3 per 100,000 workers for the first half of 2022 to 30.5 for the first half of 2024.”
“As Mr Chia has rightly pointed out, the recovery rate will be applied to the flats' resale price or prevailing market value, whichever is the higher at the point of sale. The subsidy recovery percentage will be commensurate with the extent of the initial additional subsidy provided. HDB informs flat buyers of the subsidy recovery rate up front at the point of launch and the recovery rate remains fixed at the point of resale, regardless of whether the flat was eventually sold at a profit or loss compared to the original launch price. This ensures fairness to other Standard flat buyers who did not enjoy the additional subsidies, who are, likewise, subjected to the vagaries of the market. The set of additional restrictions imposed on Plus and Prime flats helps to keep these flats in attractive locations affordable at the point of resale. Finally, Mr Neil Parekh asked about the support provided to SMEs to manage the change of the internal systems to handle the new CPF procedures. The amendments are not expected to impact SMEs and employers. Nonetheless, there are existing channels for businesses and employers to provide feedback. In conclusion, Mr Speaker, Sir, the Bill will allow us to ensure that the CPF system evolves to continue to meet the needs of Singaporeans over the course of their lives. I would like to, again, express my appreciation to Members of the House who expressed their support for the Bill. Mr Speaker, I beg to move. 5.16 pm”
“CPF Board will then assess their requests and adjust premiums accordingly. For members who have signed on and they are under the HPS cover, if they develop health conditions after they have already signed up for the coverage, they will see no changes to their premium as a result. The HPS cover can also be ported over if they are looking to purchase a new flat. Mr Yip Hon Weng and Mr Chia also asked about the process to review HPS premiums and Mr Chia also asked if advancements in medical treatment are taken into account when revising premiums. Members of the House, to ensure that HPS premiums remain affordable, the CPF Board conducts premium reviews annually. During the review, several factors are considered, including the market competitiveness of HPS premium rates so that HPS remains affordable to members. CPF Board also considers the sustainability of HPS premium rates by taking into account factors, such as the claims experience, projected investment returns as well as the overall financial health of the Home Protection Fund. For example, when there is significant improvement in health outcomes among the general population due to advancements in medical treatments, this will be reflected in the claims experience and factored in during the review process. The underlying assumptions are also validated by an external actuarial consultant to ensure robustness of the premium review. Let me move on to clarifications regarding the second set of amendments to streamline the administration of the CPF Board and CPF schemes for better service delivery. Mr Edward Chia asked for clarity and Assoc Prof Jamus Lim highlighted on potential gaps that could happen from the calculation of the subsidy recovery amounts when Prime and Plus flats are sold.”
“Instead of premium loading, Mr Chia asked if HPS can broaden the risk pool to reduce the premiums charged on higher-risk individuals. Today, all approved HPS applications are covered at a standard premium rate. With the expansion of HPS, the premium loading will apply to members with certain pre-existing health conditions that are not so severe and who previously would not have been eligible for cover. And the additional premiums will be commensurate with their higher claims likelihood. This is in line with industry practice and is necessary to keep the HPS scheme sustainable. Without premium loading, HPS premiums may need to rise across the board for all members, including for those in the lower-income groups, in order to cross-subsidise the higher claim rates by members with more serious conditions. Doing so would not be equitable. Even with premium loading, HPS would provide coverage at one of the lowest premiums in the current market for all members. For members facing financial hardship, their familial co-owners can help to pay outstanding premiums. CPF Board also extends the grace period for premium repayment based on member's circumstances. Should members require help with their mortgage loans, HDB will assess each case and provide assistance. This can include allowing members to temporarily reduce or defer their loan instalments or extend their loan tenure to reduce their monthly instalments. Mr Neil Parekh asked about the appeal process for members who disagree with their risk assessments. Mr Edward Chia and Ms Jean See asked about reviewing premiums for members in remission. Members subjected to premium loading who are looking to have their premiums revised, can submit a medical report on their current health condition.”
“Mr Neil Parekh and Ms Jean See asked how premium loading for members with pre-existing conditions would be handled. As with industry practice, each application is assessed individually. This means that eligibility for HPS coverage is assessed based on each member's personal health risk profile, taking into account overall severity, prognosis and control of all of their medical conditions. Where required, CPF Board obtains relevant information from medical professionals to gain a comprehensive understanding of the members' health status. Mr Louis Ng and Ms Jean See asked if previously rejected HPS applicants will be notified that they can submit a new application to be considered again. The CPF Board will reach out to such members that may be eligible for cover under the expanded HPS. In fact, the Board already conducts outreach to members whose health conditions might improve to invite them to reapply for HPS with a medical report on their current health condition. Mr Edward Chia also asked if the Ministry would introduce tiered coverage options within HPS. Similar to other HPS members today, those subject to premium loading can choose the extent of coverage by adjusting their share of HPS cover, as long as the co-owners' total cover add up to 100% of the outstanding housing loan. Participation for those subject to premium loading will also be on an opt-in basis. We regularly review HPS coverage and affordability and we will also study Mr Chia's suggestion. Mr Yip Hon Weng asked about the rationale for HPS premium loading for members with higher health risks and whether there are safeguards in place to prevent individuals from lower-income groups from being disproportionately affected.”
“There were clarifications on the coverage, the extent of the coverage of the HPS, the necessity and impact of premium loading and the process for HPS premium reviews. I will address these in turn. Mr Louis Ng and Ms Jean See asked if HPS already covers members with pre-existing medical conditions and how they will be affected. Mr Ng, Mr Yip Hon Weng, Mr Neil Parekh and Ms See also asked for clarity on the types of conditions covered under the expanded HPS and how many additional members would benefit. The vast majority of HPS applications are approved, including for members with pre-existing health conditions, if they have been assessed to be generally in good health. This includes individuals who have fully recovered from a stroke for some time. It also covers those with early-stage cancer and have remained in remission for a period of time. Members who are already eligible today would pay the same standard premiums. So, let me reiterate that. Members who are already eligible today would pay the same standard premiums. They will not be affected by the expansion of the HPS and the premium loading. With the proposed expansion, more members with pre-existing health conditions may be considered for coverage with premium loading. Examples would include certain types of strokes and heart disorders. We estimate that this expansion will offer HPS coverage to approximately 100 more members each year. However, some applicants will remain ineligible for HPS because their conditions are just too severe to be insurable. Overextending HPS coverage for members with significantly higher claim risks could negatively affect the sustainability of the HPS. This is also in line with industry best practices and ensures the sustainability of HPS for the general population.”
“I want to highlight a point that today, there are about 8,400 members who are relatively high-income earners, representing less than 1% of all members aged 55 and above, who will not be able to — So, it is just this 8,400 members, about less than 1% of all members aged 55 and above, who will not be able to fully transfer their SA savings to their RA, even as we raised the ERS. By the way, we have raised the ERS to four times up from the current three times of BRS. So, we have raised it to four times the BRS. Our members have the flexibility to either retain these savings in the OA for liquidity or invest in safe instruments, such as Singapore Government Securities through the CPFIS. Financially savvy members may also grow their savings outside the CPF system. In fact, those who are investment savvy may prefer to consider relevant commercial investment products or otherwise they can leave their monies in their RA to continue earning the higher long-term interest rate and receive higher retirement payouts. I find, in terms of the statistics, looking at the numbers, I do not think that this move was motivated because of this SA shielding, because only a minority of members and that statistics is also available, about 2% in 2021 could have chosen to do so. So, we have extensively discussed this on several occasions in this House. As such, I seek Assoc Prof Jamus Lim and also Members' understanding that I will not repeat the points that have been raised and addressed before. I am also very heartened, Mr Speaker, Sir, and Members of the House, that with the expansion of the HPS, this has been positively received.”
“Assoc Prof Jamus Lim asked about what happens to members' SA investments after the SA closure, because he has alluded to the fact that it runs contrary to having some form of commitment that our members have been enjoying. After the SA has been closed, members can continue to hold their existing CPF Investment Scheme (CPFIS)-SA investments, until they decide to sell them or until they mature. Upon sale or maturity, the proceeds from the member's CPFIS-SA will be paid to their RA up to the FRS, with any remaining balance paid to their OA. Members may also continue to use their OA monies to invest under the CPFIS-OA and this is consistent with the approach for CPFIS today. Members need to have set aside their FRS after turning 55 before they can invest under CPFIS. We will notify members in advance so that they are aware of the available options. Not providing any special treatment for CPFIS is also consistent with how we are not grandfathering older cohorts for SA closure. To Assoc Prof Lim's point about retirement planning and how the cost of inflation has affected members and, thus, in a way, nudging them to consider stretching the CPF monies in terms of getting extra interest, I want to highlight that over the last five years, the Government has rolled out significant numbers of packages to support many of our residents in terms of addressing some of the cost of living issues. So, I will not touch on that further.”
“There are frequently asked questions today on CPF Board's website on these topics to help members. But let me summarise the key points. As CPF interest is computed monthly, the SA savings that are transferred to the RA up to the FRS will earn the RA interest for that month. The remaining SA savings which are withdrawable will be transferred to the OA to earn OA interest for that month. Members who wish to earn the RA interest and commit their savings for higher retirement payouts can opt to transfer their OA savings to their RA up to the ERS within the same month. If there are incoming CPF contributions to the SA, these will be allocated to the RA up to the FRS, either in cash or with a mixture of cash and property, and any remaining contributions in excess of FRS will be allocated to the OA and can be withdrawn. For ongoing payments, transition measures will be put in place after the SA has been closed to ensure that members aged 55 and above have sufficient time to make the necessary arrangements. Participating members will be notified by the CPF Board of the relevant changes to the schemes and their options moving forward. Mr Louis Ng also asked about how many members are expected to reach the FRS, following the transfer from the SA and if the Government will regularly share the number of members expected to reach the Basic, Full and Enhanced Retirement Sums. As the transferred SA balances are not high, this is not expected to change FRS attainment by much. The BRS and FRS attainment rates are published on the website of the CPF Board annually. We have also been sharing the retirement sum attainment rates with the House through the recent Committee of Supply debates.”
“Mr Speaker, let me begin by, first, thanking Members for the support of the CPF (Amendment) Bill. I will first address questions related to the amendments to effect the closure of the SA for members aged 55 and above, followed by the expansion of HPS. As I have shared earlier on, these amendments are part of the evolution of the CPF system to continue serving the needs of Singaporeans over the course of their lives. With regard to the SA closure, Mr Neil Parekh asked about how affected CPF members will be notified of the SA closure and Mr Louis Ng also asked about the resources extended to CPF members. All affected CPF members will be notified via hard copy letters and email or SMS, where applicable, informing them of the amounts that have been transferred into their RA and OA after their SA has been closed. To help Members plan ahead, CPF Board has enhanced the Retirement Dashboard on their website. The dashboard allows members to view the estimated amounts that will be transferred from their SA to their RA and OA. Information is also available on the CPF website and across CPF Board's communication channels. Members who need further assistance can contact CPF Board directly. Mr Louis Ng asked about the circumstances under which a member's SA will not be closed upon reaching age 55. These circumstances relate mainly to CPF members who pass away shortly before turning 55. We will not close their SA to streamline the administrative process for transferring these monies out of the CPF, for example, as payments to the members' nominees. Mr Parekh also asked about how the SA closure affects the computation of interest as well as ongoing payments and contributions. These are questions which CPF members are also likely to have.”
“All in all, this ensures that the CPF system continues to serve the needs of Singaporeans over the course of their lives and to continue to remain effective as a key pillar of Singapore's social security system. Mr Speaker, I beg to move. [(proc text) Question proposed. (proc text)]”
“If a member's RA has already reached the FRS, the remaining savings in the SA will be transferred to their OA and can be withdrawn at any time. Members can also choose to transfer the savings from their OA to the RA up to the ERS. This way, members can earn a higher interest rate and receive higher retirement income. From 2025 onwards, the ERS will also be increased to four times of the BRS. This means that currently, over 99% of the affected members will be able to transfer all their SA savings to the RA. The Government will also expand the coverage of the HPS from mid-2025. Members with certain pre-existing conditions that are not so severe, such as certain types of stroke and heart disorder, will be able to get coverage. Even if they are required to pay a higher premium, the premium will still be amongst the lowest in the current market. We will assess any future developments to industry practice in our regular reviews of the CPF system. We will also streamline the administration of the CPF Board and the CPF schemes. The overall revisions will ensure that the CPF system, as an important pillar of our country's social security system, can continue to meet the needs of Singaporeans. (In English): Sir, let me conclude. The CPF (Amendment) Bill will give effect to the closure of the SA for members aged 55 and above from the second half of January 2025 onwards, as well as the expansion of the HPS to cover more CPF members with pre-existing health conditions from mid-2025 onwards. It will also clarify processes and streamlines the administration of CPF Board and CPF schemes.”
“Such transactions include the purchase of recess areas outside of one's HDB flat and lease extensions. Some members today also provide undertakings to pledge their property to CPF Board, to access more funds in their RA for immediate use. In some cases, new co-owners could be added after the existing owner had pledged the property. The amendments clarify that CPF Board also requires new co-owners to refund the pledged monies to the existing owner's CPF accounts, upon disposal of the property. Lastly, we will remove provisions that were previously included to support the CPF Job Record Scheme and which are no longer relevant today. In the past, employers could request for CPF Board to share prospective employees’ employment history under the CPF Job Record Scheme. This scheme was terminated in 1983 and CPF Board has not shared any prospective employees' employment history with employers since then. As such, we will amend the CPF Act to remove this provision. Mr Speaker, Sir, please allow me to say a few words in Mandarin. (In Mandarin): [Please refer to Vernacular Speech.] The Government regularly reviews and updates the CPF system to ensure it continues to meet the needs of Singaporeans at different stages of life. Previously, we announced the closure of the SA for CPF members aged 55 and above. This is to ensure that only long-term CPF savings can enjoy a higher long-term interest rate. This will take effect from the second half of January 2025. We will notify affected members by letter, as well as an email or SMS. The affected members need not worry. After the SA has been closed, the savings in it will be transferred to the RA up to the FRS. These savings will continue to earn higher long-term interest rates.”
“As implemented by the Ministry of National Development and HDB starting from the October 2024 Build-To-Order (BTO) exercise, there is a New Flat Classification Framework which will classify new flats as Standard, Plus and Prime based on locational attributes. This new framework will help to achieve three important objectives: one, it keeps home ownership affordable; two, it maintains a good social mix; and three, it keeps the system of public housing subsidies fair for everyone. To ensure affordability, Plus and Prime flats come with additional subsidies to enable a wider range of Singaporeans to purchase them. This is on top of significant market discounts that are applied to all BTO flats today. And to ensure fairness for everyone, these additional subsidies will be recovered upon the sale of the flats. Plus and Prime flats will also come with additional restrictions, such as the 10-year minimum occupancy period (MOP), to discourage quick flipping and support genuine home buyers. This set of amendments will allow HDB to recover a percentage of the resale price or market valuation of the flat, whichever is higher, that is commensurate with the extent of additional subsidies provided. The recovery of additional subsidies will be done before the required CPF housing refund is made to the member's CPF account. This maintains parity with other flat buyers who did not receive these additional subsidies and is important to preserve the fairness of our public housing subsidies. We will also amend the Act to clarify that the CPF Board requires CPF refunds only upon property disposal and not at the point of transactions, which involve the issuance of a new lease or title without any changes to the ownership of the property.”
“For those offered coverage with premium loading, participation will be on an opt-in basis. We will assess any future developments to industry practice in our regular review of the CPF system. Taken together, the closure of the SA and the expansion of the HPS coverage to more members with pre-existing health conditions will evolve our CPF system to better serve the needs of Singaporeans over the course of their lives. The remaining four amendments are to streamline the administration of the CPF Board and CPF schemes. Firstly, we will amend the CPF Act to simplify the CPF Board structure. The amendments give the Minister the discretion to appoint a Deputy Chairperson from amongst the Board members. This is in line with common practices across other Statutory Boards. There will be no change to the maximum number of 15 Board members. The Board currently comprises a Chairperson, a Deputy Chairperson, six tripartite representatives and seven other persons. After the amendments, the Board will comprise a Chairperson, six tripartite representatives and eight other persons. Excluding the Chairperson and the CEO of CPF Board, the Minister may now appoint a Deputy Chairperson from any of the remaining Board members with the President’s concurrence. CPF Board will continue to operate efficiently with this change. I will now move on to the next amendment. Currently, when members sell their property, their sales proceeds are distributed in a specific order. For example, a member with an HDB loan would have to repay any outstanding property tax, outstanding HDB loan and resale levies, before refunding the amount of CPF savings used in the purchase of the property including accrued interest.”
“The HPS is an insurance scheme that protects CPF members and their loved ones from losing their Housing and Development Board (HDB) flats in the event of the member's death, terminal illness or total permanent disability. Today, members are covered at a standard premium rate if they are assessed to be generally in good health, even if they have pre-existing health conditions. The vast majority of applications are approved. However, around 1.3%, or about 1,400 HPS applicants, are rejected annually due to pre-existing health conditions based on factors, such as overall severity, prognosis, control of the health condition and the member's health risk profile. While we cannot cover all pre-existing health conditions, we will expand HPS from mid-2025 to cover those with certain pre-existing conditions that are not so severe, such as certain types of strokes and heart disorders. In line with industry practices, these members will pay higher premiums that are commensurate with the higher likelihood of claims. Even with this premium loading for such members, the HPS would provide coverage at one of the lowest premiums that such members would pay in the current market. For members who are eligible for coverage today, there will be no premium loading and no change to the standard premium rate. To ensure that the HPS remains sustainable and affordable for the majority of members, the small minority of members with more severe health conditions, such as those currently receiving treatment for cancer, would not be able to participate in HPS. This is also in line with industry practice. Nevertheless, CPF members who face financial difficulties in repaying their mortgage loans can approach HDB for further assistance. The expansion of HPS will be implemented from mid-2025.”
“CPF members will be notified when their SA is closed, through a hard copy notification, as well as an email or SMS where applicable. As per the current practice for members turning 55 today, members' SA savings will be transferred to the RA, up to the Full Retirement Sum (FRS) applicable to their cohort. The savings in the RA will continue to earn the higher long-term interest rate, which is currently at 4.14%. With the closure of the SA, any remaining SA savings will be transferred to the OA and can be withdrawn. Members who wish to commit their withdrawable savings to their long-term retirement needs can opt to transfer their OA savings to their RA up to the Enhanced Retirement Sum (ERS). With the ERS raised to four times the Basic Retirement Sum (BRS) from 1 January 2025, more than 99% of CPF members aged 55 and above today would be able to transfer all their SA savings to their RA, if they wish to do so. As Members of the House would know, CPF members can then choose to start receiving their RA savings as monthly retirement payouts anytime from the age of 65 to 70. In gist, the SA closure will not prevent members from earning the higher long-term interest rate. They can do so by voluntarily transferring their savings to the RA, up to the prevailing ERS. But if members want to retain the flexibility to withdraw these savings at any time, then the savings can remain in the OA and earn the OA interest rate. The Bill will permit the Board to implement the SA closure and the necessary related actions, such as transferring members' SA savings into their RA and OA. Next, I will speak about the expansion of the HPS.”
“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." The Central Provident Fund (CPF) system is a key pillar of Singapore's social security system which helps CPF members set aside savings for their retirement, housing and healthcare needs. We regularly review and update the CPF system. The Bill effects the following changes: first, the CPF Special Account (SA) will be closed for those aged 55 and above from early 2025 onwards; second, the Bill expands the Home Protection Scheme (HPS) to offer cover to CPF members with certain pre-existing conditions that are not so severe; and lastly, the Bill introduces amendments to clarify processes and streamline the administration of the CPF Board and CPF schemes. The first two sets of amendments in the Bill, which effect the closure of the SA for members aged 55 and above and the expansion of the HPS, are part of the evolution of the CPF system to continue serving the needs of Singaporeans. The closure of the SA has been discussed at length in this House since it was announced at Budget this year. As I had earlier explained during the 2024 Committee of Supply debate for the Ministry of Manpower (MOM), the principle behind closing the SA for members aged 55 and above is to right-site CPF monies. Only CPF savings committed towards long-term retirement needs should earn the higher long-term interest rate. Today, members aged 55 and above have four CPF accounts: one, the Ordinary Account (OA); two, the MediSave Account (MA); three, the SA; as well as four, the Retirement Account (RA). From the second half of January 2025 onwards, the SA of members aged 55 and above will be closed and they will have just three CPF accounts.”
“The compliance rate with the Progressive Wage Model (PWM) is high. Over the past three years, the Ministry of Manpower (MOM) has taken enforcement action against three employers, as they were non-compliant with the PWM requirements despite several rounds of engagements. MOM takes an educational approach in the first instance to help employers comply with the PWM. Since the expansion of PWM in 2022, MOM has conducted over 4,000 inspections, focusing on retail and food services firms, to check on PWM compliance. Most of the employers were compliant with the PWM requirements and those who had gaps rectified them after our intervention. MOM will continue to conduct checks on PWM compliance across sectors and work with the tripartite partners and the PWM sectoral leads, the Building and Construction Authority, National Environment Agency, National Parks Board and Singapore Police Force, to educate and help employers meet their PWM requirements. Employers who need help with understanding the PWM can sign up for the Progressive Wages workshops, organised by the Singapore National Employer Federation (SNEF). MOM also strongly encourages employees to log in to the Progressive Wage Portal to check if they are paid the correct wages according to their PWM job level. This will enable employees to quickly detect any discrepancies and approach their employers for clarifications.”
“This question has been addressed in the combined oral reply to Question Nos 9 and 10 on the Order Paper for 9 September 2024. [Please refer to "Basis of SkillsFuture Jobseeker Support Scheme and Considerations for Applications", Official Report, 9 September 2024, Vol 95, Issue 140, Oral Answers to Questions section.]”
“Migrant workers are allowed to stay and work in Singapore if they have a permit to do so. They have no right to insist on staying in Singapore. The permits granted to foreigners are a privilege and not a right. Migrant workers may be denied permits before they come into Singapore, and sometimes, their permits may be cancelled. This might arise due to many circumstances, in particular, when their employers cancel the permit. When migrant workers become involved in law enforcement investigations, the workers are issued a Special Pass to allow them to remain in Singapore while investigations are ongoing. Migrant workers who are victims of illegal acts or are found to be innocent of any wrongdoing are allowed to look for a new employer before their Special Pass expires. Where such a migrant worker indicates interest to work for a new employer, the Ministry of Manpower will facilitate the work pass application for them after determining with the law enforcement agencies that it is not contrary to public interest to do so and provided the prevailing work pass criteria are met.”
“In 2023, the mean number of days of paid annual leave provided to full-time resident employees aged 25 to 64 is 12 days for those earning below $2,000 a month; 17 days for those earning between $2,000 to $4,999 per month; and 21 days for those earning $5,000 and above per month. The median number of days of paid annual leave provided to full-time resident employees aged 25 to 64 is 14 days for those earning below $2,000 a month; 15 days for those earning between $2,000 to $4,999 per month; and 21 days for those earning $5,000 and above per month. Annual leave is one of several statutory employment benefits to support employees in balancing their work and personal needs. Besides annual leave, employees are also entitled to paid sick leave and parental leave such as maternity leave, paternity leave and childcare leave, for their respective needs. Leave entitlement must therefore be viewed holistically. Agencies regularly review leave entitlements to better support workers. For example, to better support parents in caring for their infants, the Government has recently announced 10 additional weeks of fully paid Shared Parental Leave to be implemented in two phases from 1 April 2025.”
“The Ministry of Manpower (MOM) requires migrant workers in key sectors to attend the Settling-In Programme (SIP) upon arrival in Singapore. Conducted in their native languages, the programme introduces migrant workers to Singapore’s laws and social norms, including the importance of living and working harmoniously with people of different races and religions. Beyond the SIP, a whole-of-society effort is essential to facilitate the successful assimilation of migrant workers to live and work in Singapore. MOM works closely with various stakeholders such as non-governmental organisations, employers, dormitory operators, community partners and migrant worker volunteers to share the importance of racial and religious harmony in Singapore with migrant workers. These initiatives include social media outreach, dormitory orientation programme for new workers and festive celebrations in dormitories and recreation centres. For example, in July, MOM co-organised a Racial Harmony Day celebration for over 1,200 migrant workers with the Alliance of Guest Workers Outreach, a movement under Hope Initiative Alliance, to promote understanding of different cultures, races and religions. The annual International Migrant Day celebration is also a key engagement platform to showcase the diversity of nationalities and cultures of the migrant workers in Singapore, which will also engender greater understanding and acceptance by the community. Employers and dormitory operators also play important roles in ensuring religious and racial harmony at both the workplaces and dormitories. MOM will continue to work with them and other partners to promote social cohesion and religious harmony amongst our migrant workers.”
“The Ministry, has over the years, made enhancements to its dispute resolution and claims management process. Prior to 2019, wrongful dismissal claims did not have to go through mandatory mediation, and we did not comprehensively track work pass types nor claim outcomes. From 2019, all wrongful dismissal claims must first go through mediation at the Tripartite Alliance for Dispute Management. Claims can be referred to the Employment Claims Tribunals (ECT) for adjudication only if mediation is unsuccessful. From 2019 to 2023, there were about 400 wrongful dismissal claims (or about 80 a year) filed by work permit and S pass holders. About 50% were eventually withdrawn by the worker, 40% were successfully resolved by mediation, and 10% were adjudicated at the ECT. Of the adjudicated cases, about 30% were ruled in favour of the worker. Recourse for the worker throughout this process can include monetary compensation, converting the employee’s dismissal into a resignation, or the employer providing the employee with a service testimonial. We do not track the number of workers who found another job after filing a wrongful dismissal claim.”
“I hope that you do not judge NTUC or SNEF by what you think the relationship between unions, employers and the Government should be. But look at the record, look at the outcomes, the positive outcomes that tripartism has delivered for Singapore through the decades. Together, we have protected jobs, we have created stability, we have ensured prosperity for our workers, our businesses. I hope we can continue to use this platform to support sustained tripartism as our competitive advantage, because by working hand-in-hand, we are not just navigating today's challenges, we are also securing a better, a brighter, a more secure future for Singapore and Singaporeans. I hope that is the legacy that we must preserve. [Applause.] 4.14 pm”
“Thank you. We are ready. But we all work hard. We all work hard to reach a consensus, knowing that collectively we are always working for Singapore's shared interests. And as I have said yesterday, not just for you, but for your children, for your grandchildren and hopefully, for your great-grandchildren. To quote Dr Robert Yap, the former President of SNEF, he once shared an anecdote with me when I just joined the Government. And I thought that resonated and illustrated very well. He said it at a meeting with a foreign counterpart. The foreign counterpart commented to Dr Robert Yap, the then President of SNEF, saying that he was lucky because Singapore's unions were weak because they do not strike. SNEF's view, his response to this foreign counterpart's comment was, actually, no, the unions here are strong because they get what they want without striking. This is the strength of our system. Our outcomes, our positive outcomes are achieved through negotiation – not confrontation, not open confrontation. [Applause.] To paraphrase the late US Supreme Court Justice Ruth Bader Ginsburg: do you throw away your umbrella in a thunderstorm because you are not getting wet? Members of the House, the lack of open confrontation, your so-called being more independent, does not mean that our unions are weak. It shows the power of positive collaboration in delivering results without disruption. I urge all Members of the House, we are here to help our platform workers. We are here and we have just finished and heard the wrap-up speech of Senior Minister of State Koh on how we can help our platform workers better, taking into consideration all of the comments, the suggestions, the opinions of Members of the House. Let us not detract ourselves from this Bill.”
“That is what is unique about our tripartism – that it works and it is a very, very unique, yet a true partnership. The Government plays a key moderating role, of course, balancing the interests of both workers and businesses to ensure that all decisions, when they are taken, are made for the long-term good of everyone. Let me reiterate this. I know you keep talking about independence, independence, independence. Behind closed doors, the tripartite partners do not always agree. Heated discussions happen behind closed doors on many, many issues – the raising of retirement age, or even the upcoming workplace fairness legislation. I am sure we will have another very intense debate during that time. The Leader of the Opposition is already smiling at me, probably thinking, "You better watch it." An hon Member: [Inaudible.]”
“Mr Speaker, Sir, I had not intended to participate in this debate because the Senior Minister of State is doing such a great job in wrapping up, but I feel compelled to intervene in the last couple of discussions on the role of tripartism. I would appeal to Members on both sides of the House to again spare a thought about the unique position, the unique model that we have, the very special model that we have here in Singapore. In Singapore, we do things differently. We are a tiny red dot. We have been able to move, we have been able to progress so well. This approach is fundamentally built on trust, on collaboration and a shared commitment to finding win-win solutions. Through our decades of strong tripartite relationship between the unions, SNEF and the Government, collectively, we do not just talk, we do not just debate. We act. Together, we have robust discussions, we push back, we have intense debate behind the scenes. When we formulate ideas, we turn them into actions and we overcome challenges as one united people. This unique approach is one of our greatest strengths. Take, for instance, it was just barely two plus years ago, when we went through the crisis of our generation, COVID-19. When the crisis hit, the partners acted swiftly to address tough issues like cost-cutting measures, retrenchments. This is in stark contrast to many other countries where tensions flared. Our unions worked collectively with SNEF to share the burden, negotiating wage cuts, saving jobs. And the unions, NTUC, even administered the Self-employed Persons Income Relief Scheme, or SERS. This collaboration helped prevent deeper disruption. It protected not just our lives, but our livelihoods.”
“The incidence of salary claims by foreign employees with breakdown by work pass type from 2021 to 2023 is in Table 1 below. The incidence of salary claims by Work Permit holders for the top 3 industries with salary claims by Work Permit holders from 2021 to 2023 is in Table 2 below.”
“As employers are responsible for the medical costs of their migrant domestic workers (MDWs), which generally increase with age. The age limit of 60 years old is to mitigate the cost impact on households. However, on appeal, the Ministry of Manpower may approve the renewal of work permits beyond the age limit, taking into account the MDW's health, experience and the employer's household needs.”
“Unemployed homeowners who face difficulties in servicing their housing loans from the Housing and Development Board (HDB) can approach HDB for financial counselling. HDB may offer various financial assistance measures depending on the household's circumstances, such as allowing them to temporarily reduce or defer their loan instalments or extending their loan tenure to reduce their monthly instalments. Homeowners who are facing difficulties servicing their private housing loans can approach their lenders to explore options, such as loan restructuring solutions. Government agencies have put in place processes for financial institutions to refer cases to social service agencies for assistance where needed. Individuals who face difficulties in servicing their insurance premiums can approach their insurers early to find out about available options. Depending on the terms of the policy, options include obtaining premium loans, converting to a paid-up policy and applying a time-bound premium holiday. These measures will complement the SkillsFuture Jobseeker Support (JS) scheme, which is designed to give assurance to those facing involuntary unemployment by providing them with temporary financial support while they search for a job that fits their skills and experience. The scheme is not a social assistance scheme and the payout quantum is not sized to meet the needs of households facing financial distress when a household member becomes involuntarily unemployed. For jobseekers from households with financial difficulties, they may be eligible for support from schemes, such as ComCare's Short-to-Medium Term Assistance scheme.”
“Dormitories will need to meet the new dormitory standards by 2040 and interim standards by 2030. Currently, about 200 new dormitories with a combined capacity of about 70,000 beds already meet the new dormitory standards. A further 14 existing dormitories, or another 100,000 beds, have either commenced works or informed the Ministry of Manpower (MOM) of their transition plans.”
“There are several measures today that support companies that employ Singaporeans with special needs. The Open Door Programme (ODP) provides employers with up to one year of complimentary recruitment and job support services. SG Enable, the focal agency for disability and inclusion in Singapore, supports companies in adapting the job role and work environment to better suit persons with disabilities (PwDs). The Job Redesign Grant, under the ODP, covers up to 90% of the cost of job redesign and workplace modifications for employees with disabilities. The ODP Training Grant provides course fee subsidies of up to 90% for courses, such as SG Enable's High Impact Recruitment and Employment workshops, which provide a comprehensive and structured training framework for employers hiring PwDs. The Enabling Employment Credit, which was enhanced in 2023, provides wage support for employers to offset the cost of hiring PwDs earning below $4,000 a month. We encourage employers to tap on the various measures to support employment of PwDs. The Government will continue to review these measures to ensure that we can better support the employment of PwDs and their employers.”