Teo Siong Seng
Singapore
“I thank the Senior Minister of State for the reply. The point is about us being a WTO member and having to comply with fair bidding. However, we also hear that construction companies are coming from developed countries; in fact, they are coming here to bid at very low prices, and yet it is very hard for our companies to bid for contracts…”
“Perhaps, a similar programme could be started to help displaced and mature PMEs find relevant jobs in SMEs. In addition, we noted that WDA, through the Professional Conversion Programme and Max Talent, has made an effort to help retrenched PMEs in reskilling themselves for the possibility of finding new careers in selected industries and…”
“With the development of global norms and guidelines on responsible business conduct, such as the UN Global Compact and ISO 26000 Guidance Standard, CSR – if not appropriately managed – could, in time, operate as a non-tariff trade impediment and eat into Singapore's export competitiveness.”
“I thank the Minister of State Mr Teo Ser Luck for the clarification, and for the handbook printed. We will try and read it. Mr Teo had clarified that to apply for any PIC scheme, a company can have fewer than three CPF-paying accounts. My understanding is that there must at least be three.”
“The Government should help them to improve and upgrade, provide the small business owners and small factories with a sustainable business environment, attract younger people to join them, and enable them to apply new visions and methods to improve the productivity of these companies.”
“On this note, while we welcome JTC's new data collecting function, I would like to urge that JTC and URA continue to work closely so that the land use needs of our companies, especially our SMEs, will be sufficiently taken into due consideration in our national land use plan. With that, I support the Bill. 5.20 pm Page: 85”
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“On the first day of every Lunar New Year, the SCCCI's Secretariat staff invariably turn up for work; although there is no overtime pay, everyone is dressed in their new year best. Through coming together to organise the Lunar New Year gathering, it also strengthens the bonding and togetherness among members and staff. My third point: at this juncture of economic restructuring, the business model will change; similarly, customers and the whole society need to undergo a gradual mindset change. While enterprises are trying their very best to maintain service standards, customers should also empathise with the Page: 85 difficulties of manpower shortage, and be prepared to adapt to new business models. If greater respect is accorded to all workers, especially for blue-collar and frontline staff, there would be more people willing to take up these jobs, and Singaporeans could then enjoy better service standards. Mindset change requires the support of the entire community. Last year, in one of my Parliament speeches, I urged the community to adopt an inclusive approach in respecting workers of every industry, and to change their attitude towards blue-collar workers. I have also pointed out that in Japan and South Korea, customers would voluntarily clear up their table after meals. This is an excellent example. This year, I would like to urge local customers to adopt the same inclusive and tolerant approach in accepting changes in the F&B industry and make greater efforts in adopting the self-service concept wherever possible. For example, everyone should do their part to lessen the work of cleaners at hawker centres.”
“Employers hope that when it comes to work pass renewals, MOM could exercise more flexibility in allowing employers to decide on retaining the more experienced and competent of the foreign workers on their payroll. Currently, the work pass renewal criteria are not transparent enough, and companies are relegated to being passive and resigned. With the reduction in foreign worker quota, if only the employer could be given the prerogative to decide on which worker to retain, it would really help the company to drive up its productivity. Hence, we hope that MOM would proceed to discuss with employers on a feasible way to assess work pass renewal criteria, and allow employers to exercise more rights to decide on retaining their foreign workers or letting them go. Secondly, apart from wages and the job nature, corporate culture and strong company bonding are also key factors for workers to consider whether they wish to remain on the job. In this area, it is worth learning from the example of the Jumbo Group of Restaurants, a household name in the F&B industry. On the first day of the Lunar New Year, the Jumbo Group's Chui Huay Lim Teochew Restaurant opened for business. Every single employee reported to work as usual, and this is a clear example of bonding. For the past 20 years, during the hectic period of the Lunar New Year, Jumbo's CEO Mr Ang Kiam Meng and his family members would personally help out in the restaurants to work as a team with every employee, gather for the reunion dinner, distribute red packets and celebrate the new year. This is not just a gesture of support from the employer towards their work, but a kind of respect and appreciation for the employees. We should not underestimate the influence of corporate culture and bonding.”
“[Please refer to Vernacular Speech.] Mdm Speaker, fellow Members of Parliament, good afternoon! Firstly, allow me to declare that I am the President of the Singapore Chinese Chamber of Commerce and Industry. My speech today will focus on three main points. Firstly, I would like to bring forward two appeals from the businesses to MOM. Secondly, besides wages, local enterprises could retain staff through their corporate culture and strengthening of bonding within the company. Thirdly, I would urge everyone to be more tolerant and accepting of the transformations in the industry, especially within the services sector. Let me touch upon the first point. In this year's Budget, MOM has expanded the scope of the Job Flexibility Scheme for Productivity to the entire services sector. Businessmen were cheered by this news. However, businessmen hope that this policy would be further liberalised, and be extended not only from within a company but across different companies and subsidiaries within the same group. Take the food and beverage industry as an example. Foreign workers employed as cooks may not be suited to wait on tables or take orders in the same restaurant. However, another restaurant within the same group may face a shortage of cooks. If MOM could allow foreign workers to be Page: 84 redeployed to work in the same type of job within the same group, this could really address the manpower shortage, and go a long way towards improving work efficiency. The other appeal from the business community is on work pass renewal, which also happens to be a collective wish.”
“Minister, in fact, I remember in last year's COS, there were a lot of questions about the 800 buses and 1,000 more bus-drivers. After that, I raised a PQ in Parliament to ask whether it is possible for some of the bus operators to work with LTA during the peak hours – for example, the school buses, after they drop off the children at school and before they pick up the children from school thereafter. I was very pleased that, after the PQ and during the recess, yourself, together with Mr Yeo Guat Kwang, we talked about it. After that with the Chinese Chamber of Commerce and Industry, we conducted a series of meetings. LTA has been very cooperative. I believe now a tender has gone out for bus operators to work with the LTA during peak hours. So, with that, is there any chance to reduce the 800 buses that you need?”
“In conclusion, the MPA has done a fantastic job in presenting Singapore as an IMC, but more can be done for the shipping industry especially during this very difficult period. This will allow us to emerge stronger and be better prepared for the upturn and recovery. Together, we can further strengthen Singapore's status as an IMC which will benefit our country for years to come. Maritime Manpower Development”
“This requires people with technical skills and international experience/perspectives. Thus, when Work Permits and Employment Passes become increasingly difficult to obtain, it will not only affect foreign expertise coming into Singapore but also limit the transfer of skills and knowledge to our locals. How will these companies continue to operate without skilled manpower? And if these companies should decide to relocate, would not there be a reduction in job opportunities for Singaporeans too? Our status as an International Maritime Centre (IMC) would also be eroded! Many shipping companies have also shared with me their concerns about the high business costs which was also partly contributed by the strong Singapore dollars. Over the past four years, the Singapore dollar has appreciated by 25% against the US dollar. In fact, in the shipping industry, most Page: 52 of us earn our revenue in US dollars. Ever since the downturn in 2008/2009, the shipping industry has already implemented drastic cost-cutting measures to mitigate against the weak global market in order to survive. This has not been helped by the high fuel costs. The shipping community has heard our Government's call for increased productivity and would review its work processes to do more with less. I look forward to our companies working with the Maritime and Port Authority of Singapore (MPA) and the Singapore Shipping Association (SSA) to roll out its initiatives in the near future. Last but not least, I urge more Free Trade Agreements to be signed, especially with countries in Latin America, Africa and other emerging markets. Shipping is not only a facilitator but also a catalyst for economic development and we should tap on the growth potential and opportunities available to us.”
“Madam, before I start, I would like to declare that I am the Managing Director of Pacific International Page: 51 Lines and the past President of the Singapore Shipping Association (SSA). In my COS speech today, I will touch on two subjects. Firstly, extending the tenure of the Maritime Sector Incentive-Approved international Shipping Enterprise Award (MSAI-AIS) scheme by 10 years. I am happy to note that the maximum tenure of the MSI-AIS has been increased from 30 years to 40 years. This is good news, especially for those companies which are into the third incentive period. They are grateful for the clarity, and their shipping profits have been granted a further 10 years of tax exemption, even though many shipping companies are suffering from heavy losses. Secondly, we need to safeguard and grow Singapore's status as an international maritime centre, better known as IMC. For close to two decades, the Maritime and Port Authority of Singapore (MPA) has carefully nurtured an ecosystem of businesses built around the port, shipowners, operators, ship managers, brokers, financiers and marine insurers, to establish Singapore as an IMC. Today, we have some 5,000 maritime companies employing 170,000 local and foreign personnel, contributing to about 7% of our GDP. Last year, Singapore maintained its position as the world's busiest port and the world's largest bunkering port. Our ship registry reached 65 million gross tonnes and is ranked amongst the top 10 ship registries in the world. Shipping is a global business which carries 90% of world trade. Its highly mobile business structure employs multinational seafarers and shore-based staff which often require job rotation opportunities to serve clients across its global network.”
“Page: 57 In conclusion, this is a journey that all of us have committed on and we must succeed in this transformation. Business owners, workers and also the Government all need to coordinate and contribute to this transformation. Government agencies have an important role to help the businesses, while the businesses and workers are bound to go through aches and pains in this transformation. We do urge the Government to be more flexible and pro-business in looking after the SMEs, especially the micro-enterprises which are lacking in resources and capability. There must be enough trust between Government agencies and the business community. The Government should not always insist on playing the role of goalkeeper. Instead, they should play mid-field and help enterprises to strike the goal.”
“Operations of small businesses would be greatly disadvantaged and unsustainable if the rentals are punitive. We appeal to the JTC to make provision for affordable industrial land, especially for those for SMEs which do not fall within JTC's targeted industry clusters. At the same time, we hope that JTC could consider freezing its rents for SMEs over the next three years. Fourth, on SPRING and IE Singapore helping SMEs to venture overseas. We realise that the productivity effort has to apply to different levels. Firstly, the bosses themselves have to adopt a mindset change. They cannot be a frog in a well, what we call 井底蛙, but need to hop out to see the world. Overseas trips could be useful for these bosses in opening up their minds. That can be the first level in the productivity journey. We may also bring in overseas trainers to help us enact changes in process or in adopting new business models. If the Government could step in to defray these expenses, it would be greatly appreciated. Due to the high costs of operation in Singapore, some companies will need to move overseas to countries like Malaysia and Indonesia. SMEs, for example, need to understand these markets if they were to relocate. IE Singapore and SPRING could take on a more proactive role to help SMEs go overseas. The Trade Associations and Chambers (TACs) can help local enterprises make this transformation to productivity-led growth. We, therefore, seek even greater collaboration with Government agencies on this initiative for a truly effective tripartite collaboration. In China, the Chinese Chambers have set up a Shanghai office to effectively assist members in their China ventures. IE Singapore and SPRING have been helpful and we urge the agencies to continue to fund such overseas effort.”
“I suggest that the Government cluster similar schemes together under one package, instead of having companies approach different agencies with different sets of KPI. In fact, my parliamentary colleague, Ms Jessica Tan, had just brought up the same point. Second, productivity drive needs a more flexible approach. The productivity journey is a marathon run and not a 100-metre dash. It is not practical to expect immediate KPI for productivity, especially within the services sector which is not uniform. Within the F&B industry, achieving productivity varies from fine dining restaurants, fast food eateries, Chinese and Western restaurants, to humble eating houses. Value-add cannot be and should not be the only measurement for productivity. Thus, we sincerely hope the Government would adopt a more flexible approach when it draws up various schemes, taking into consideration the variations that exist. 1.15 pm While we agree that achieving productivity growth is a target that all companies should aspire to achieve, there is no certainty of success. We appeal Page: 56 to the Government to be open-minded about this and be prepared to share part of the risk involved. Third, JTC to provide affordable industrial land for SMEs. Limited land supply continues to drive up land prices, estimated to have increased by more than 60% over the last two years. Take development charge (DC) rates for land as an example. The latest DC rate for commercial use, which kicked in on 1 March this year, was increased by an average of 23.7%, the highest since September 2007. Given this high cost of developing industrial land, private developers are invariably asking for higher rentals with every lease renewal.”
“Mdm Chair, in this year's Budget, the Government has a whole package of incentives for businesses, especially the SMEs and micro-enterprises. Such incentives were drawn up to help them become more productive and innovative and lessen the "pain". Page: 55 While all efforts will be made by the businesses to work smarter and with less reliance on manpower, however, it was disappointing that the current Budget did not adequately address the rising costs of doing business. This afternoon, I would like to raise four points. One, Pro-Enterprise Panel (PEP) to look into cutting unnecessary red tape and promote inter-agency coordination. We appreciate the Government's efforts in strengthening certain productivity incentives, this being one of the four pillars under the Quality Growth Programme. We look forward to receiving more details on how SMEs could take advantage of such incentives. We strongly suggest eliminating red tape and over-regulated policies. Government agencies should put more trust in the business community and reduce heavy compliance costs. I have previously highlighted this in Parliament a few times: if the carrots are hung too high, how can the rabbits eat them? As I said, 胡萝卜挂得那么高，小白兔能吃得到？ This is where the PEP could play a more pro-active role, as I had mentioned in my speech during the Budget debate on 6 March. PEP should also help to look into streamlining regulatory requirements for businesses. The primary focus of these incentives should be on achieving productivity for the industry as a whole as well as for individual firms. The schemes should be easily understood and widely tapped on by as many firms as possible.”
“I hope that when the Government rolls out policies which are related to SMEs, they could also do appropriate research and learn from the practical experience of other regions. What they can do, we can, too! Having said this, I support Budget 2013. 4.34 pm”
“Hence, the only option is to cooperate and brainstorm over how to succeed. At the same time, during this period of economic restructuring, we should not ignore Singapore's unique character and traits, which consists of many small components. Those small shops which line the big streets and small alleys are also part of Singapore's cultural heritage and form part of our core values. We want to improve on our effectiveness and productivity, but we should not do it at the expense of culture and tradition. Over the years, large malls have become a part of the retail landscape, with each mall having many similar shops selling the same merchandise and providing the same services. There is hardly any space left for SMEs and micro-enterprises. I am concerned Page: 93 that if these enterprises are not able to survive, our city would also lose a part of its vibrancy and part of Singapore's unique charm. Going forward, the Chamber will be doing its utmost to help its trade association members pursue productivity-led growth, as well as to preserve its original character. Hong Kong is also facing an ageing population and encounters the same pressures of escalating rentals. However, not only can their retail, services, food and beverage industry and other SMEs and micro-enterprises survive; they are also extremely resilient and vibrant. There must be a reason for their success. We have already led groups of local enterprises to Taiwan on study missions. This year, the Chamber plans to organise study trips for local SMEs to visit Hong Kong, Japan and South Korea to understand and learn from their SMEs. Singapore enterprises need to learn how they survive and obtain some experience, and hope that the answers would be forthcoming.”
“Thus, many of these shops which are affected by the new rulings would rather give up their bakery business. Micro-enterprises are the most affected by economic restructuring. They are too small to benefit from automation. Insufficient capital limits their expansion. Even if they want to expand their operations, they need to move out of the existing small premises. Food manufacturers suggest that the Government set up a public cold storage facility in the food industry zone, which can be rented out to smaller factories. This would allow existing factories to free up some space, purchase automated equipment and raise the productivity of the whole industry. Thirdly, to recap the above examples, we would suggest that, going forward, at certain crucial stages of economic restructuring, Government agencies need to intensify their mutual coordination efforts and work together. At the same time, under the tightened foreign worker policy, we hope Government agencies could streamline some of the over-stringent Government rules and create a more pro-business environment for the economic restructuring measures to truly benefit the industry. Twelve years ago, the Government established a Pro-Enterprise Panel (PEP) and we hope that the PEP could make its role even more useful and beneficial at this time. Two thousand thirteen is a year of reform for local enterprises and a major operation is needed before the process of economic restructuring can be completed. We are willing to help member companies to meet this enormous challenge, and hope that with constant dialogue and interaction between Government and business, we could reduce the risk of this big operation. If this operation succeeds, it would give business a new lease of life. If it fails, businesses would be in dire straits.”
“With the immediate cooling measures, some used car dealers are unable to cope. The entire industry has entered a crisis situation. While we support the Government's economic restructuring policy, we also hope to help our member companies solve their urgent problems. The second point I wish to make is that local SMEs need to make every effort to restructure within this new environment. However, some micro-enterprises face numerous difficulties in the process. I refer to the case of some small businesses operating in 2-storey neighbourhood shophouses with living quarters under HDB. Prior to mid-2012, HDB had allowed bakery and cake shops to do cake decoration and icing, and store their cakes in refrigerators within the air-conditioned area on the second storey. Then, from mid-2012, due to Hygiene and Fire Safety reasons, the second storey of the shophouse was no longer permitted for such activities and could only be used for the intended purposes as "living quarters". Neighbourhood shops, when renewing their licences, have to strictly observe the rules imposed by HDB, SCDF and the National Environmental Agency. The monthly rental for a neighbourhood shophouse in a central location averages $10,000, and other business costs are also on the rise. Added to this, Government agencies control the usage of commercial space. The small industry players are like hairy crabs with all legs tied up and with no room to move. Although the Government has been promoting the use of shared services for the industry, using outsourcing services and establishing central Page: 92 kitchens to improve productivity, cakes made from the same mould and thus look and taste the same would not be appealing to consumers or retailers.”
“Could the Government consider waiving the financing curbs for car importers? Secondly, could the Government's cooling measures be implemented progressively? If the Monetary Authority of Singapore could give a six-month to 12-month grace period, car dealers could have some respite and probably sufficient time to deal with their stock. Thirdly, could relevant Government agencies offer assistance schemes to tide over this critical period for the car dealers? If banks and financial institutions react to these curbs by raising interest rates, some 1,000 car dealers would suffer heavy financial burdens, and the consequences would Page: 91 be devastating. If different Government agencies were to tighten their policies at the same time, this would definitely add to the burden of the car dealers. This can be likened to patients in the hospital who may be treated by a number of doctors. If each doctor treats the patient without communication or coordination with each other, the patient could receive injections from each of the doctors. Each injection, while intending to help the patient, may cause the patient's condition to become critical. SVTA hopes that relevant Government agencies, such as MOF, the Monetary Authority of Singapore, SLA, MOT and LTA could organise joint dialogues to coordinate on their respective policies to prevent the situation from becoming worse. I have asked SVTA why the dialogues needed to include SLA. They said that since the Used Car Centre was set up, they have to sign leases every year with SLA and this process did not pose any problems. However, starting from last year, SLA started to implement a bidding system. SVTA had no choice but to pay a four-fold increase in rental to keep the lease, for the benefit of their members.”
“Based on the market trend, car dealers have already ordered their cars from suppliers to meet their sales targets for 2013 and paid up a 20% deposit. Those new cars delivered to Singapore would already attract import duty. With such immediate cooling measures, car dealers would have to honour their orders and cannot possibly pull out. The second challenge: what would happen to the 20,000 used cars in the used car market? The value of the used car stock amounts to $1 billion. All along, the used car market has been patronised by the working class. These curbs would have an effect on those families which really need cars as a mode of transportation. In general, car dealers would buy used cars from the car owners and apply for floor stock financing from the banks to help with their cash flow. With these newly introduced cooling measures, car dealers need a longer time to offload their used cars, translating to higher costs for the interest payable. The third challenge: what would happen to the Used Car Centre which has been leased and renovated not long ago? As an assistance to their members, the SVTA had signed a three-year lease (2012-2014) with the Singapore Land Authority (SLA) for the MacKenzie Used Car Centre. The association has invested $700,000 into renovating the place. Immediately after the cooling measures were announced, SVTA received calls from some car dealers that due to the bleak market outlook, they would be pulling out from the Used Car Centre. SVTA offered three suggestions. Firstly, could the Government consider applying the financial restrictions to new cars and not the used cars? Such cooling measures would not only control buyers but cut off the lifeline of the car dealers. This would cause severe damage to the entire industry.”
“We hope that the Government would differentiate between new cars and used cars, and offer some financing schemes to help industry players that are affected. Two, liberalise the space utilisation for neighbourhood shophouses, allowing SMEs, and especially micro-enterprises, some flexibility for restructuring. Three, during the process of economic restructuring, there should be greater coordination amongst different Government agencies, in order to solve speedily any difficulties encountered by SMEs and micro-enterprises. This would also ensure that Singapore's culture and core values have an opportunity to thrive. On my first point, last week, local car dealers experienced a "tsunami", with announcements in the Budget and from the Monetary Authority of Singapore. The immediate curbs on car loans have been very unsettling for the industry and its customers. On the afternoon of 25 February, the new Budget announced the introduction of a tiered Additional Registration Fee structure with higher ARF for luxury cars. On that same evening, the Monetary Authority of Singapore suddenly announced that, with immediate effect, the maximum motor vehicle loan amount would be reduced to 50% or 60%, depending on Open Market Page: 90 Value, and the tenure of a motor vehicle loan will be capped at five years. The Singapore Vehicle Traders Association (SVTA) and the Automobile Importers and Exporters Association (AIEA) quickly approached our Chamber to give us their feedback on the three big challenges the car dealers would have to deal with as a result of these cooling measures. The first challenge: what would happen to new cars which have already been ordered?”
“This would not only help to increase the salary of local employees, but help to reduce companies' wage costs, with benefits to both employees and employers. However, we would still urge employers to strengthen their communication with workers, and help them to fully understand the integral connection between the growth of an enterprise and driving up productivity, to manage the unrealistic expectations of workers on wage increases. For example, if a company had originally wanted to increase its worker's pay by $100 and the Page: 89 Singapore worker knows that the Government will co-fund 40% of the increase, he may hope to get a higher wage increase of $166. The scope of the Wage Credit Scheme needs to be more closely examined. It would only apply to those workers who earn up to $48,000 in gross annual wages, including bonus, that is, $3,000-plus in gross monthly wages. It would not apply to those who earn gross monthly wages of $4,000. Other than this, the WCS is applicable only to Singaporeans. When a company increases its wages, it should also consider the performance of its non-Singaporean employees. Businesses should, therefore, proceed with caution in utilising this scheme and wage increases have to be linked to productivity growth. Otherwise, they would not be able to withstand the pressures of higher labour costs after the scheme expires in three years' time. While Singapore is stepping up its pace of economic restructuring, it is a painful process that is unavoidable, but neither should it be overlooked. Today, I would like to use three points to appeal on behalf of two of our Chamber's trade association members. One, the latest financing curbs on motor vehicle loan amounts and their tenure have a severe impact on the used car market.”
“Mdm Speaker, in Mandarin, please. (In Mandarin): [Please refer to Vernacular Speech.] Mdm Speaker, fellow Members of Parliament, good afternoon! Firstly, I would like to declare that I am the President of the Singapore Chinese Chamber of Commerce & Industry. After the announcement of the Budget 2013 in Parliament, our chamber members have aired their views and provided us with their recommendations. Everyone hopes that I could help them express their views in Parliament today. I feel that this year's Budget is an inclusive and forward-looking one. Elderly, low-wage workers and preschoolers have all been suitably covered. Moreover, a package of incentives for the next three years will encourage enterprises to restructure and upgrade and promote the sustainability of Singapore's economic growth. The most heartening part of the Budget is that some of the appeals that the Chamber had put forward on behalf of businesses have found responses in this year's Budget. Apart from this, five out of the 12 items on the Chamber's Pre-Budget Wish-List submitted at the end of December 2012 had also been responded to positively. These include strengthening, streamlining and broadening the Productivity and Innovation Credit Scheme (PIC), reducing transport costs, lowering the corporate income tax rate, establishing a three-year Transition Support Package similar to an "Economic Restructuring Grant" which we had proposed and extending the scope of the Job Flexibility for Productivity (JFP) initiative. In order to build a better Singapore and help enterprises during this period of economic restructuring, the Government has rolled out a three-year package of incentives worth $5.3 billion. Integral to this is the Wage Credit Scheme (WCS).”
“Third: in order to solve the manpower shortage, businesses are already trying their best to utilise the latent manpower pool, recruiting older workers and getting housewives to re-enter the workforce, but the reality is due to limitations of age and physical strength, they would not be able to take on certain jobs. There is a Chinese saying that one strand of hair can affect the entire body. The population policy and manpower policy are interrelated, and the manpower policy is directly related to business. Without people, the best opportunities would be lost. Hence, we support the Government's long-term planning for the population problem, to ensure that our population and the workforce could benefit from economic development. I hope that Government would strengthen its consolidation efforts. At the same time, I hope every segment of society would give its frank feedback so that all viewpoints can be considered and lead to the most effective outcome. With this, I support the White Paper on Population. 3.11 pm”
“However, when social cohesion is facing such conflicts, should we not move beyond the complaint mode and move quickly into action, forming families, getting married and having children, so as to ensure that the Singaporean Core of the population does not get eroded because of the ageing population? Ageing and a decreasing birth rate is the root of our current predicament. This root has also exacerbated the predicament of manpower shortage in the business community, and the Government has no choice but to bring in foreign workers. Following the Marriage and Parenthood incentives rolled out by the Government, I urge all young Singaporeans to respond by having more children. If the Singapore birth rate can increase, it would put less pressure on the problems created by the ageing population, and social problems would also decrease. Thus, the bottom line is to encourage young Singaporeans to have more children! The feedback I have gathered from businesses over the past few days can be summarised into the following three points. First: the workforce growth of between 1%-2% cannot be further reduced, otherwise enterprises cannot survive. Second: Singapore is at the heart of Asia, a region of rapid growth. The White Paper projects that Singapore's GDP growth will likely be between 2%-3% per year from 2020-2030, and this is also a target that businesses should aim to achieve, however challenging it may be. If we are unable to meet these targets, Page: 64 Singapore will lose its attractiveness to investors, local enterprises will lose their competitiveness, and the Singapore economy would be badly affected.”
“Regardless of their length of stay in Singapore, new citizens or foreign workers have contributed to Singapore. We live in a globalised world. If Singaporeans can adopt the inclusive approach to foreigners, whether they are here to work, study or be tourists, including the 40% who are foreign spouses, they will have a good Page: 63 impression and continue to contribute to Singapore even after they leave the country. When we are determining the ratio of Singaporeans in the overall population, apart from quantity we need to consider quality. We need a longer time frame to complete the population composition and to be vigilant on whether the social integration process is a smooth one. I really appreciate the Government's candid admission of its mistake and admire its vision to review the entire scenario to put together a more long-range plan on population and related areas. I do hope that this plan would be a coordinated one and bring all Ministries and Government agencies together to look at the problem holistically and with requisite support. To sustain the population and to create a dynamic living environment in Singapore is not only the responsibility of the Government but the responsibility of every Singaporean. While Singapore is still an immigrant society, we must still maintain a Singaporean Core in the population. Those Singaporeans who live here for more than two generations should not only be the largest ratio, but have to make up a significant core that has influence over the immigrant population. There are many grouses on the increasing numbers of foreigners.”
“As I view this idyllic blueprint, I also begin to worry. If our local enterprises cannot provide enough PMET jobs, do the white-collar jobs that require two out of three Singaporeans need to fall back on foreign investors to provide? If SMEs provide employment opportunities that do not fall under the PMET category, then would the SMEs' labour shortage problem become even more critical? My third point is this: I hope that going forward, when the Government intends to implement a policy, it should use a more consolidated approach and increase the coordination efforts among Government agencies. I also hope that Singaporeans would adopt a more gracious attitude towards the Government's restructuring efforts and on the contribution by an immigrant population. When the fertility rate of Singaporeans started to show signs of decline, the Government expedited its immigration rate in 2005. This was the right move at the time. However, while one Ministry had been increasing the number of immigrants into Singapore, the other Ministries in charge of transport, housing and other areas had not kept pace, and created the problems of over-congestion in the infrastructure. Clearly, the just-released White Paper on Population has shown that within a short period of eight years since 2005, the population has increased by 1.1 million, and lowered the percentage of Singapore citizens to the current 62%. This percentage is likely to continue to plummet. This accelerated growth of immigrants and the problems of cultural assimilation has created social conflicts. The first illegal strike in 26 years is an example of such a social conflict that exists. Both the foreign workers and the companies paid a price. Social integration is a process that takes time.”
“I urge the Government to regard local enterprises as a targeted group to groom and support. Local enterprises are Singaporean enterprises and are key factors which eventually help to sustain the livelihood of Singaporeans. There are 151,400 local enterprises which employ 70% of the workforce and contribute to 50% of the GDP. MNCs and local enterprises contribute equally to the Singapore economy. However, we should realise that not all Singaporeans are able to excel in the MNC playing field. Thus, although local enterprises cannot match up to MNCs in productivity or economic contribution, they still form the core of the Singapore business community. Even if their pace of growth is slower than that of the MNCs, they are still Singaporean enterprises which help to create employment opportunities for Singaporeans and provide services for the MNCs. In the future, when the ageing population grows more evident, the impact on local enterprises will be even greater. On the one hand, the number of older workers will increase, and energy levels and productivity would drop; on the other hand, because of the curbs on foreign workers, manpower supply would be diminished. Having said this, I would urge the Government to put greater Page: 62 emphasis on local enterprises in the future. Singapore practices fair competition. In the economic race, those who are superlative would be richly rewarded. However, the Government's responsibility is to help those who lag behind complete the race. In the White Paper, the Government would be increasing the ratio of PMETs to provide even better employment opportunities for Singaporeans. By 2030, two out of every three Singaporeans would be professionals, managers, executives and technical workers.”
“Any gaps in implementation would have a bearing on society, and eventually the Government would have to take the responsibility. Page: 61 Nothing is ever perfect, and there is no exception in the case of Singapore. We cannot expect to grasp both the fish and the bear's paw at the same time. In the same way, policy implementation has to consider all options. For example, the F&B and retail industries have encountered manpower recruitment difficulties for the past two years. Although everyone has attributed this to the tightening in the foreign worker policy, and that the younger generation of Singaporeans do not wish to work in the services sector, I feel that the difficulties of hiring staff for the F&B industry had begun even before this. When the Government was intent on promoting the tourism industry, and allowed two integrated resorts to be set up in Singapore, the two large investors both expressed being able to individually provide 10,000 employment opportunities for local Singaporeans, making a total of more than 20,000 jobs. As this happened during the financial tsunami, this news brought great relief to all. It was a rosy picture as it attracted foreign investment, created employment opportunities, and brought in tourist revenue. Looking back, there is only a limited supply amongst the local population which can be absorbed into the services sector. After the two integrated resorts started operations, the inevitable outcome was that other SMEs in the services sector started having an acute manpower shortage. The second point I wish to make is that local enterprises form the core of the Singapore business community, creating not only employment opportunities for Singaporeans but providing services for MNCs.”
“Singapore is a classic example of an export-oriented economy and has always been an immigrant nation. We lack natural resources, and manpower is a key factor of production that can help us to sustain economic growth. In the past decade or so, many economies in Asia have enjoyed high growth. In the midst of this dynamic region, we should remain competitive. Singapore should not go into recession due to our manpower shortage. Japan is a case in point. Japan has been experiencing an economic slowdown over more than two decades, and is still unable to emerge from the doldrums. One key factor is the population structure. The ageing of Japan's population and its corresponding problems is a signal to us that if we do not plan ahead for the ageing population, the problems we may face in the future could be even more acute. To be inclusive and innovative are unique characteristics of an immigrant nation. If we do not welcome foreigners, or if foreigners are unable to integrate into our society, our society would suffer, followed by the economy, and eventually everyone would be implicated. Hence, I feel that the Government has chosen to release the White Paper on Population at this time, based on a likely population scenario by the year 2030, is timely as it is the basis of a long-term view to avoid risk, and seeks to improve infrastructure, housing and transport facilities. In the past eight years, we have already experienced the bottlenecks of having our population grow far too quickly. These plans suggested in the White Paper are to redress these problems and avoid their recurrence. In reality, any change in public policy would affect various sectors of society in different ways.”
“[Please refer to Vernacular Speech.] Mdm Speaker, Members of Parliament, good afternoon. Firstly, I would like to declare that I am the President of the Singapore Chinese Chamber of Commerce and Industry. The White Paper on Population released by the Government last week has reflected the Government's position and resolve regarding the population issue. This has not only generated much concern in all corners of society, but has also sufficiently indicated the Government's resolve to create better employment opportunities for Singaporeans and an even more ideal living environment. However, many people may not adequately comprehend the White Paper nor its intrinsic meaning. According to my personal understanding, before the Government plans any major reform, the Government would usually issue a White Paper to invite public opinion from Singaporeans to chart an even better policy. In the past few years, the population issue has been brewing, and has given rise to a chain reaction in many areas. Releasing a White Paper on Page: 60 Population is timely and commendable. Sometimes, problems are not necessarily a bad thing. The presence of problems gives an opportunity for policies to be fine-tuned and amended. In my capacity as a representative of the business community, I would like to raise three points of view on the content of the White Paper on Population. My first point: Singapore can only solve the social problems created by an ageing population if it were to continue with its stance of being an immigrant nation. Without sufficient numbers of foreigners, Singapore's enterprises would lose their competitiveness because of manpower shortage. Changes in the population policy have an important impact on the Singaporean workforce.”
“I thank the Minister for the explanation. I believe that the investigations showed that the injury was actually due to the failure of the winch mechanism. So, would this affect the compensation?”
“I thank the Deputy Prime Minister for the explanation. In the case of the Genneva Pte Ltd, was there any lapse or delayed action by the MAS officials in alerting the public?”
“Thirdly, we hope that there can be a review of the criteria of grants offered by Government Ministries and agencies, based on the actual needs of SMEs and provide the most appropriate and practical assistance. If the barriers are set too high, SMEs would not stand to benefit. We also hope that Government agencies could strengthen its faith and trust in SMEs. SMEs make up 99% of our country's enterprises and provide 70% of employment. If SMEs fall ill, many others will be afflicted. Singapore's inflation rate reached 4.7% in September, and commodity prices have increased, leading correspondingly to a higher cost of living, increased wages and greater pressure on our SMEs. This will have a negative effect on the rate of Singapore's economic development. There is a Chinese adage that says we will overcome all obstacles no matter how challenging the years are. I believe that we will prevail over our difficulties if the tripartite partnership of workers, employers and the Government can unite and work hand-in-hand with one another, and we need to have more bosses like Kenny Leck with a remarkable fighting spirit! Hence, I sincerely hope that the Government will take into greater consideration the situation of SMEs in Singapore in Singapore Budget 2013. At the same time, we also hope businesses will have the courage to embrace innovative solutions and adopt a spirit of inclusiveness to overcome their challenges together. Tomorrow, our fellow Indian Singaporeans will be celebrating Deepavali, the Festival of Lights, and I would like to take this opportunity to wish all fellow Indian Singaporeans a Happy Deepavali. And my wish for all Singaporeans is to overcome all challenges! Deepavali Warthakkal! Page: 1128 6.48 pm”
“If SMEs' development falls into the doldrums, the whole enterprise eco-system would be affected and, ultimately, this would have an impact on Singapore's overall business environment. If that happens, will Singapore continue to be the choice destination for MNCs and expatriates? As 2012 draws to a close, I would like to express three wishes on behalf of the business community. Firstly, the rate at which the foreign worker policy is tightened needs to be slowed down in order to give businesses some respite. Given the stringent control of the inflow of new foreign workers into Singapore, businesses hope that the Government would take a discretionary approach in handling the renewal of existing foreign work passes and not be too hasty in curtailing them. According to statistics provided by the Ministry of Manpower in October, Singapore's unemployment rate was 1.9% in the third quarter of the year. With the country nearing almost full employment, it will become increasingly difficult for SMEs to hire local employees. Based on my understanding, the food and beverage industry is facing a shortage of up to 3,000 workers. In particular, there is an urgent need for workers during the coming busy festive periods, such as Christmas, New Year's Day and Chinese New Year. I sincerely request that the Government reassess the manpower needs of the various industries, including the need for foreign labour, if the situation permits. Page: 1127 Secondly, businesses hope that the Government can assist in alleviating the pressure of rising operation costs, particularly with regards to skyrocketing shop and factory rentals. The Government could consider assisting SMEs by providing rental subsidies. This would fulfil the needs of promising SMEs with the potential to grow and develop.”
“SMEs play an important role in maintaining our community's social cohesion. Not long ago, Turtle House Original which had a 50-year history of business operations in Geylang ceased operations. At the end of last month, 36-year-old Soon Heng Restaurant, which sold fish head curry, also closed its doors. These local dishes are an integral part of the collective memory of many Singaporeans. The disappearance of these uniquely Singapore trademarks which help build a sense of identity and belonging among Singaporeans will have a great impact on our social cohesion and be a tremendous loss to the community. Given our strengths as an advanced and thriving player on the international stage, Singapore has always been regarded as a preferred location by MNCs. In the latest Global Competitiveness Report published by The World Bank, Singapore has retained its ranking as the best business destination for the 7th consecutive year. Last month, HSBC also announced the results of a survey on expatriates, indicating that Singapore was the most favoured destination for foreign professionals. Besides the good work of the Singapore Government and a pro-business environment, this can also be attributed to the support provided by Singapore's SMEs. The Singapore SMEs support the large companies in the value chain and contribute to the comfortable and vibrant lifestyle of foreign talent, making Singapore one of the most liveable cities. Thus, when we look at "BIG", we cannot neglect the "SMALL". On 29 September this year, Prime Minister Lee Hsien Loong said at the 80th anniversary celebration of the Singapore Manufacturing Federation that SMEs are important to our economy.”
“As a means to help the SMEs, the Government has pushed forward many Government assistance schemes, hoping to use innovation and productivity to help in the restructuring of enterprises. However, the application for the schemes is not an easy task at all for small companies. A pastry manufacturer in Bedok Industrial Park had applied for the Productivity and Innovation Credit (PIC) to buy equipment, but hit a brick wall on its application. The reason was that the pastry making machine did not come under the automation machinery allowed under the PIC scheme. A restaurant also wanted to buy a dish-washing machine, but was also unsuccessful because it did not come under the approved list. In reality, a simple tool, or a suitable piece of equipment, would be able to help to improve productivity of an SME. Even if the purchase of expensive automation equipment can be subsidised through a Government assistance scheme, some micro-enterprises may not be able to afford such a capital expenditure. Page: 1126 The Government has tried very hard and invested much effort into designing many assistance schemes for enterprises. But what actual results have been achieved? If the carrots are hung too high up, rabbits are unable to consume them. According to a survey jointly conducted by the SCCCI and NTU, 93% of respondents understand the importance of innovation, 62% of respondents reported not being able to find suitable schemes and thus are unable to apply, while 32% of the companies surveyed said that the application procedures of Government assistance schemes are very tedious and burdensome. Fourth, on the matter of vanishing traditional trade and business. I believe we should not view our SMEs purely from an economic standpoint.”
“The lease is up for renewal next February, and the rental which is under negotiation is likely to go up substantially. But Kenny has accepted this reality and hopes he does not have to move again. BooksActually does not employ any foreign workers. All its employees are Singaporeans. Three are full-time staff, while four or five are part-time workers. Last Thursday, I spoke to Kenny on the telephone, and really appreciate the fighting spirit and positive attitude of this young entrepreneur. I wish him all the best and that his business will grow from strength to strength. But how many micro-enterprises can be as resilient as Kenny? Page: 1125 According to the feedback from the Restaurant Association of Singapore, the rapid rise in rentals is related to the "innovating" of rental structures, and setting such benchmarks are led by the large property developers and Real Estate Investment Trusts (REITs). Whereas in the past, rental used to be a flat base rate, it now also comes with a percentage of Gross Turnover. If business is good, it would attract a higher rental, and moreover, increases can be expected every year. Upon renewal of a lease term, some rentals have increased by 80%, and some landlords impose a mandatory renovation to the tenanted space, or even give a six-month notice for the operator to vacate, should they make asset enhancement plans, often without compensation to the operator. Restaurant operators have to face escalating rentals, amidst the pressure of rising wages; these are all challenges difficult to surmount. Thirdly, the practicality of the Government assistance schemes.”
“The reason given by the trainees was that they did not like the working environment because they had to be exposed to the sun and needed to move heavy objects. Ever since the Government started to implement the tightening of its foreign worker policy, the impact has not really been felt by large enterprises, high value-added and new industries. However, the home-grown SMEs, especially in the service industry, have been badly affected by this policy, and have been hard pressed for changes! Last month, the Ministry of Manpower published the foreign worker statistics. As of June 2012, foreign workers holding Employment Passes increased by 22,600 compared to November 2011, and S-Pass workers increased by 14,200. We found this rather bewildering. SMEs have been raising grouses about the inability to recruit foreign workers, but the statistics revealed by the Ministry of Manpower showed that, in fact, there has been an increase in foreign workers. Then, how do we account for the decreased number of foreign workers in the service sector? Secondly, on the soaring rentals. Although this has always been the case, increase in recent shop rentals has been huge, rentals and prices of industrial space have likewise increased, REITS have driven up commercial rentals, and these have all become the bugbear of the SMEs with a grave impact on their ultimate survival. Recently, SCCCI interviewed Kenny Leck, the owner of an independent local bookstore located in Tiong Bahru called BooksActually. According to Kenny, he started his bookstore in October 2005, and his first location was at a shophouse at Telok Ayer Street. His bookstore had to move four times within seven years, and each time it was due to rental increase.”
“Although quite a few have been amended and improved, the qualifying conditions and criteria are difficult to administer and thus not many tend to benefit, in particular the SMEs. Fourth is the impact on society of vanishing traditional trade and business. Page: 1124 Firstly, allow me to cite two examples on the manpower problem. Zero Spot Laundry Service Pte Ltd is a laundry service established for more than 20 years and an SME with almost 300 workers. Its clients range from five-star hotels, garment companies and the healthcare sector. Business is fairly good. Local employees operating the laundry machines are between 40-60 years of age. Within the past year, with the tightening of the foreign manpower policy, they had to reduce their workforce by 40 workers, and is now facing a dire shortage of workers handling the operations. They have tried all alternatives, but are still unable to recruit Singaporean workers. The company's future expansion plan has to be put on hold. The first thing they need to deal with is to restructure the company and reduce the impact due to manpower shortage. Currently, Zero Spot is restructuring its business model, including plans to move part of its operations to neighbouring countries, and actively training its workers to adapt to the change. However, Rome was not made in a day, and the process of restructuring and change needs time. Results cannot be seen in the short term. Another case study is Katong Flower Shop. Being a partner of National Parks Board, it sponsored the training programme to recruit five local Singaporeans and sent them for training at National Parks Board. When the training concluded, none had taken on the job.”
“Thank you, Sir. In Mandarin, please. (In Mandarin): [Please refer to Vernacular Speech on Pg 1182-1185.] Mr Speaker, Sir, fellow Members of Parliament, good afternoon! Firstly, I would like to declare that I am the President of the Singapore Chinese Chamber of Commerce & Industry (SCCCI) and Managing Director of Pacific International Lines. Of late, Singapore's SMEs have once again become a focal point among social circles and sparked off much discussion everywhere. I have heard and seen much in relation to this. These few months, I have been in contact with many interest groups getting their feedback. Therefore, today, I still want to dwell on the voice of SMEs, to articulate their predicament and their aspirations. We understand and support the Government's view that there is no turning back on the tightening of the foreign worker policy and that SMEs should adopt innovative and productive measures to develop. However, increasing productivity is a long-term and continuous process, especially for the labour-intensive industries; it cannot be rushed and needs time to be refined and improved. This year, local SMEs face many challenges, both internally and externally. The global economy is experiencing a slowdown, and is bordering on the risk of a double-dip recession. Businesses are facing concurrent pressures of low growth and high inflation, making the problem even more severe. The overall situation has become even more arduous. There are four main factors. First is the manpower problem; given the difficulty of hiring Singaporeans and the tightening of the foreign manpower quota, the labour shortage has become even more acute. Second is soaring rentals, driving up business cost. Third is Government assistance schemes.”
“We also foresee that the cumbersome nature of having organisations make renewed checks with the DNC registry once in every "prescribed duration". Again, this compounds to the costs of doing business. In particular, the SMEs will be thrust into a difficult position of having to comply with such procedures, on top of their usual heavy workload and cost. The penalties per breach for the DNC, capped at $10,000, may be acceptable for the big companies. But this is considered a very large amount for SMEs. We would appeal to the Personal Data Protection Commission to review this amount in all fairness to the SMEs. We also wonder if the penalty is commensurate to the offence. While the business community understands the rationale for having a Personal Data Protection Act and the setting up of a DNC registry, it does introduce many areas of concern, in terms of overall compliance, additional costs, heavy penalties and an overarching impact on the SMEs. We would also like to understand why the Personal Data Protection Act has now removed the Data Protection Fund which was originally intended to provide financing or incentives, including grants and scholarships, to any public authority, enterprise, education institution, or other person undertaking or facilitating any programme to promote data protection awareness or implementation and running costs of the Commission. This Fund could have been used to alleviate some of the operational and compliance costs for the SMEs. I hope that these relevant concerns will be heeded. In closing, I support the Bill. Page: 868 5.37 pm”
“Our proposal is to let smaller companies with less than $10 million in annual revenue use the 18 months to draft appropriate compliance policies, while the sunrise period can be extended by another 12 months. This would give them more breathing space for proper implementation. The SMEs and IT solutions vendors could also learn from the bigger companies on the implementation procedures and bring them up to speed. Page: 867 At the same time, the financial penalty "not exceeding $1 million" for non-compliance is extremely heavy. This also gives rise to a certain ambiguity. There is this ceiling of $1 million for the heaviest penalty but no indication of what the lower range is likely to be. SMEs and MNCs are operating on different scales altogether and we hope the financial penalty would not be applied unilaterally irrespective of the size and scale of the company. Next, on the Do Not Call (DNC) registry which I also welcome personally. While we are aware that the Do Not Call registry protects individuals against unsolicited calls like spa packages, bank loans, facials, and other marketing messages, we are concerned that this would become another additional cost for businesses. There are three separate registers: phone calls, SMS/MMS, and fax. Organisations would have to subscribe to the Do Not Call registry for each tier. A company wishing to send marketing messages would have to subscribe with each separate register – for phone calls, SMS/MMS and fax. No details have been given on the subscription fee or how it would be administered. We seek more clarity on this, especially bearing in mind that business cost is getting higher and higher in Singapore.”
“Thirdly, in addition to the cost of buying the security solutions and the cost of compliance, SMEs have to worry about the consultancy and development costs to put in appropriate policies. The compliance is not straightforward by any means. Organisations may also allow individuals from outside to access their data and accede to the request for individuals to correct their personal data. The organisations have to manage their database in such a way that they could provide information on which parties the individual's personal data had been disclosed to within the past year and be ready to communicate any corrections to them. At the same time, organisations have to provide information on the ways the data has been and may have been made use of. These are some of the onerous compliance procedures that are not only time-consuming but also put undue obstacles in the way of an SME's operations. Over and above their daily operational matters, SMEs would now have to cope with compliance procedures to manage their database. There is a proposed sunrise period of 18 months before the law on personal data protection will come into effect. The business community feels that 18 months is far too short for all companies and organisations to be ready. IT solutions companies may not have sufficient resources to customise and install suitable security measures for all Singapore companies within 18 months. I would like to appeal on behalf of the business community for a longer sunrise period, especially for the SMEs. We could stagger the sunrise period, keeping the originally proposed 18 months for MNCs or large companies and selected businesses like headhunters, insurance brokers and marketing companies.”
“Page: 866 On Care of Personal Data, under Part VI, section 24, "An organisation shall protect personal data in its possession or under its control by making reasonable security arrangements to prevent unauthorised access, collection, use, disclosure, copying, modification, disposal or similar risks." Companies would need to look for suitable security solutions to protect their data. Because the Act does not provide clear perimeters for what is meant by "reasonable security arrangements", it would be open to certain ambiguities. Multinational companies or large companies would most likely go for the best solution and sometimes costly solutions to protect their database, because they have the resources and can afford to do so, or may have done so already. On the other hand, the incremental cost of compliance to the new Act, in terms of safeguarding the data and allocating the manpower to get it done, will be so much higher for an SME to manage. Under Part III, section 11(3), the Act states that "An organisation shall designate one or more individuals to be responsible for ensuring that the organisation complies with this Act." Under section 12(a), the Act also specifies that an organisation shall "develop and implement policies and practices that are necessary for the organisation to meet the obligations of the organisation under this Act." Firstly, the cost of purchasing a highly secure data management system may be beyond their means. Secondly, with only a skeleton team managing administration and operations, it may not possible for SMEs to devote another headcount to handle compliance matters.”
“Mr Speaker, good afternoon. I would like to first declare that I am the President of the Singapore Chinese Chamber of Commerce & Industry, representing 4,000 corporate members and 145 trade associations from a great diversity of trades, industries and service providers. Today, I would like to speak about the Bill which is up for a Second Reading. There are two main sections in the Bill: the Personal Data Protection Act and the Do Not Call registry. On the Personal Data Protection Act, firstly, the move to establish this is an important step to further enhance our position to build a trusted business and information technology hub. The Act would help to prevent companies from using personal data of individuals irresponsibly and without their knowledge or express consent. We understand that such a personal data privacy law has been enacted in the EU, Japan, Hong Kong, Malaysia and the Philippines. On the other hand, the implications of this Act can be far-reaching. It would cover all industries because personal data also includes human resource records. Therefore, the Act would affect industries including, but not limited to, insurance, outsourced telephone marketing services providers, data storage service providers, property, banks, financial institutions, health, medical, security, and so on. All industries which need to refer to or make use of personal data to promote or expand their business would feel the impact. By the same token, industries which need to refer to HR records of individuals for recruitment purposes may face certain practical difficulties.”
“We have to accept reality, learn to love the job that we are doing, and do it to the best of our ability. If employees think of ways to improve the workflow, not only will they benefit from it, their companies will also benefit. What employers need to do is to ignite employees' passion for their jobs, strengthen their sense of identity towards work, provide adequate training, and create an innovative culture among employees. Personally, I only discovered recently that innovation can actually be taught. In fact, innovation and creativity often come from within the company. Given the right inspiration, employees often can zoom in on the problem and find new ways to improve efficiency. The illegal employment of foreign workers highlights the severe shortage of manpower, as well as other problems, for example, the local workforce structure, employee training programmes, and ways to improve workflow. To turn the situation around requires the collective effort of the entire society. For example, food court operators must provide relevant facilities and Singaporeans must slowly adjust to the self-service model, and return plates and dishes to collection points after using them. Manpower shortage is a long-term problem. If we do not solve it, the problem will become worse. Punishing employers and employment agencies is the right thing to do, but it is critical to find a solution to the problem. With regard to tackling the foreign worker issue, I believe that companies, employees and, in fact, the entire society, has reached a critical juncture for change. So, as long as the tripartite partners work closely together, we can definitely find a solution. In conclusion, I support amendments to the Employment of Foreign Manpower Act. Page: 743”
“It is a matter of "survival of the fittest" and those who are unable to adapt will be eliminated. In terms of adapting to the environment, we can look at Hong Kong. I go to Hong Kong every month, and the high level of service in Hong Kong is well-recognised. The people of Hong Kong are highly adaptable. When faced with difficulties, they are always able to turn stress into a source of motivation, and win high praise through their thoughtful, meticulous and warm services. They are able to endure hardship, are diligent, with a strong fighting spirit, adaptable, progressive, flexible and self-reliant. We should learn from them. Page: 742 From the corporate point of view, if we do not have enough workers, then we must think of new solutions. For example, like the Australian bus drivers who take on multiple roles, why can Singaporeans not do the same? My colleague tells me that during lunch-time at the food court in Raffles City, management staff wearing ties are helping to clear plates and dishes. This is a classic example of shortage of workers. Is there really no other solution for the food and beverage industry? In Japan, one worker can look after the entire shop, as the workflow, interior design of the shop and processes have been carefully designed. Deputy Prime Minister Tharman talked about this in this year's Budget. In Korea, food courts in major shopping malls have special counters for the return of food trays, and customers leave their trays and utensils on the counters after their meal. With this, they could reduce the workload of clearing tables, increase productivity and reduce dependence on manpower. From the employees' point of view, everyone would like to lead a happy and fulfilling life. But society cannot be customised to suit every individual.”
“In order to cope during this transition period, besides guidance and assistance from the Government, SMEs also need to make adjustments internally, and they also need the support of society as a whole. In actual fact, the purpose of importing foreign workers is to complement the insufficient number of workers in Singapore. This morning, I read an article titled "Employers, Speak Now or Pay the Price" in The Straits Times, which really set me thinking. The writer, Leslie Fong, felt that we should not take a one-sided view when discussing the issue of foreign workers. Singaporeans' lives can no longer do without foreign workers, especially when it comes to jobs with poor working conditions, which are difficult to do, with low pay, long hours and in far-flung places. Braddell View Estate is now in the midst of recruiting volunteers to help maintain the cleanliness of the estate, illustrating the resulting effect of reducing foreign workers. How should we deal with this problem? Perhaps, we can learn from the experience of other cities and countries. Those who have travelled to Australia will remember the excellent work done by their local tour bus drivers. In Australia, the tour bus drivers take on multiple roles: they are drivers, tour guides, service crew, and also help spread cheer to others. From these bus drivers, tourists can see that they have passion for the work that they do, and the importance of professional training. If the drivers had not been trained systematically, they would not be able to take on multiple roles and would not be able to increase their income. This example also reminds us, when there are limited resources, restructure and change are the best solution.”
“[Please refer to Vernacular Speech on Pg 788-789.] Mr Speaker, I am the President of the Singapore Chinese Chamber of Commerce & Industry, and the Managing Director of Pacific International Lines. This amendment Bill clearly stipulates the penalties against errant employers and employment agencies that contravene the Employment Act. Indeed, currently, there are many industry practices that contravene the Employment Act, with many employers taking the risk by flouting the law. For example, the creation of phantom employees in order to increase their foreign manpower headcount; reducing the wages of foreign workers and collecting work permit renewal fees from foreign workers, and so on. Whatever the difficulties these employers face, these illegal practices have damaged the image of Singapore businesses and affected the foreign workers' motivation to work. Therefore, errant employers and agents should be punished. Page: 741 Today, I would like to share some of my views. After tightening the flow of foreign workers to Singapore, many Small and Medium Enterprises now face greater pressure in terms of manpower resources and operating costs, especially in the services sector. Many companies are starting to feel the effect, and companies feel a greater sense of urgency to restructure their operations. We agree with and support the Government's strategies and policy directions, that is, companies should restructure and upgrade, to reduce dependence on foreign workers, increase productivity and raise real incomes of local workers. But employers, employees and companies must also be realistic and make adjustments.”
“I thank the Minister for the answer. I do not think he answered the part about Work Permit. He mentioned about Employment Pass and S Pass. In fact, the reason I raised this question is that many of my Members in the Chambers have a common comment about the old Work Permit. When they went to renew their permits, they did not get the permits renewed, and the new ones did not get approved. The impression is that the total number of Work Permits, since the policy kicked in, has, in fact, been reduced. We were given the impression that there will be no increase in the number of Work Permits and S Passes, and the pricing mechanism will come in. That means the total number of Work Permits will not be reduced, or will grow very slowly. The impression of many businesses is that the new applications do not get approved and the old ones do not get renewed. The impression on the ground is that the total number of Work Permits is reducing.”
“If more were around, it would help to boost the gold industry in Singapore. In tandem with the Government's aspirations to develop Singapore into a regional gold trading hub, we look forward to seeing the introduction of certain incentives which could uplift the entire local jewellery manufacturing and retail scene. Such measures could be complementary and propel Singapore into a dynamic jewellery hub, in addition to being a gold trading hub. Following the implementation of GST in 1994, the Singapore jewellery landscape has been dealt a rather big blow. As jewellery is a luxurious item, the additional cost burden attributed to GST is very significant. It has made us uncompetitive in pricing, with the result that Singapore has trailed far behind Hong Kong. Traders and buyers also find the GST to be a deterrent. Hong Kong does not have a GST scheme, as we all know. The Hong Kong jewellery scene continues to be very vibrant and its jewellery shows are excellent examples. Of course, part of the reason for this dynamic growth is due to the vast China market and natural hinterland of Hong Kong. Hong Kong holds a few large-scale international jewellery exhibitions every year. The HKTDC Hong Kong International Jewellery Show attracted 3,200 exhibitors, while the Hong Kong Jewellery and Gems Fair had a total of 3,500 exhibitors. The Singapore International Jewellery Show, on the other hand, is of a much smaller scale, with only 190 exhibitors. Page: 619 We would strongly urge our Government to provide more relevant incentives for the local jewellery industry so that Singapore may reinstate its status as a jewellery hub. This would supplement our efforts to grow Singapore into a regional gold trading hub. Sir, with that, I support the Bill.”
“Mr Speaker, Sir, I would like to declare that I am the President of the Singapore Chinese Chamber of Commerce and Industry; and the Singapore Jewellers Association and Diamond Exchange of Singapore are among our trade association members. I rise in support of the Government's efforts to promote Singapore as a global investment precious metal trading hub, with the amendments to the Goods and Services Tax (Amendment) Bill. Exempting the import and supply of investment-grade gold and precious metals from GST would bring gold and other investment-grade precious metals like silver and platinum on par with other financial instruments like stocks, bonds and commodity futures. The introduction of a new Approved Refiner and Consolidator Scheme will also ease the cash flow of qualifying refiners and consolidators of precious metals in the payment of input GST on the import and purchase of raw materials, as well as to relieve input tax on precious metal refining. This would provide the right incentives for Singapore to compete with Hong Kong and other bullion trading centres in the region. Singapore was once a gold trading hub in the 1980s, but refiners had unfortunately been put off by Singapore's taxes, choosing instead to mould and sell gold bars in Hong Kong which does not impose duties on bullion, and Japan where the consumption tax on gold is 5%. The changes may thus be significant enough to lure refiners to open up factories in Singapore, and to have more gold traders set up their offices here to store bullion. Having said that, before Singapore can compete with other gold trading hubs like Hong Kong and Dubai, perhaps an equivalent of the London Bullion Market Association needs to be set up. This could help gold-related industries, such as refiners.”