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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“It is time for employers to embrace them, treat them with dignity and give them a rightful place in our workforce. Taking the words of the hon Member Patrick Tay, it should be " work, learn, work, then play and come back to work again". The Chairman : As we think about the concept of "work, learn, play and come back to work again", I propose that we take the break now. Thereupon Mr Speaker left the Chair of the Committee and took the Chair of the House.”
“He receives good appraisals for his performance yearly and he is still able to contribute at the same level for another few more years. However, he now has to take on a lesser role in the same organisation. In fact, it is a waste for someone with a vast experience who is able to work and want to work, but has to retire or redeployed once he reaches retirement age. Sir, I am sure there are many more of such examples. I would like to ask the Ministry to relook at the relevance of the retirement age and how it can help promote and support pro-elderly employment with no age discrimination or prejudice. People can be more productive into their 60s and 70s, and the last thing we want is to lose their talent and enthusiasm from the workplace due to an arbitrary retirement age. The Government can continue to actively support companies and older workers with training, job re-design and workplace restructuring. So, instead of justifying their employment purely from a cost and renewal angle, it is time employers recognise their contribution, loyalty, seniority and experience with a pay that is fair and just. There should not be any age discrimination where we have to make older workers cheaper to be employable. The concept of a "retirement age" is becoming irrelevant, whether it is a desire to stay connected or active at work, reach a certain nest-egg number, dealing with health-care costs, or grappling with mortgage debt, more workers are deciding to delay retirement. Although the Government can help and support employers with various schemes to retain older workers, both public and private employers need to change their perception and attitudes on how we treat our older workers.”
“These changes in demographics represent a squeeze on those of working age, as well as on the Government, as we look to provide retirement incomes and healthcare for the ageing population. The economic benefits of prolonging working lives should not be underestimated. There is a key link between health and productivity. If you have a population that is healthy and productive later into life, not only do they contribute longer to the economy, but they also help to lessen the burden on the society. Employers must prepare for a new employment landscape of an ageing society with a growing pool of older workers. This entails a change of mindset as to how employers perceive our senior workers who are and will get much fitter and able to work much longer than 65. Page: 1922 Sir, allow me to relate two real life cases to illustrate my point. Albert, aged 62, is now working as a Property Officer. Although he is still healthy and energetic, he is worried that he will be told to retire or take on a lesser role in the same organisation soon. He wants to continue working in the same job that he believes he is good at. He knows that if he were asked to retire, it would be difficult for him to find a similar job. Albert feels that his performance is on par with his younger colleagues and if not better, considering his richer work experience and ability to relate better with people of all ages. He wonders why an older worker is viewed and treated differently. My second example relates to Michael, aged 65, who will retire end of this month. He has been very loyal to the organisation, having worked there for over 40 years. He is on a yearly contract since reaching his retirement age two years ago. He is still able to work well with no let up in age, ability and agility.”
“There will be people who are happy; there will be people who will be worried. The announcement of the Special Employment Credit indeed made everyone happy as the credit (8%) is adequate to cover the increase in mature workers' increased CPF rate. This is a good case of tripartism at work. However, to achieve the employment rate for older persons, aged 55 to 64, of 65% by year 2015, as the national target, the challenge of how to match the skill gap between the jobs available and the mature workers remains. We need the tripartite effort to resolve the issues at the workplace and most of which is how flexible we are in work arrangements. For employers, may I suggest, instead of being inclined to ageism, we should look at ways of harnessing the "intrinsic value" of the older workers? There are definitely things which younger persons cannot do as well as the older persons. For employers, may I suggest to embrace opportunities given by employers to adopt new ways of applying the tacit knowledge which they possess? And for the Government, that is most important, to provide funding on training systems which facilitate such positive shift in employment of older workers. So instead of looking at just basic employability and vocational skills, there are soft skills which older persons need to acquire before they can transit to new jobs. Senior Employees – Retirement Age Mr David Ong (Jurong) : Sir, many Members of this House have spoken about the ageing population. Yes, our population is ageing and the pattern of retirement is changing rapidly in Singapore. People are increasingly coming to terms and understanding the impact of living longer and the need to adequately prepare for an extended period in retirement.”
“According to the annual reports on labour force in Singapore, about 18% of our workforce was more than 50 years old in 2001. In 2011, 10 years later, more than 30% was above 50 years old. The median age of our workforce had also increased from 38 years old in 2001 to 42 years old in 2011. In view of this, how can the Government help companies to change the way they operate to take into account the ageing workforce besides providing Special Employment Credit? Secondly, as we transform our economy to be less reliant on foreign workers and seek expansion in new growth areas, how do we ensure that our CET system can stay relevant for the workers and employers? I understand that MOE is also pumping more resources into CET. Thus, how does MOM plan to coordinate with MOE in CET for better synergy? Thirdly, MOE is working very hard to provide vocational training to Persons with Disabilities (PWDs). The desired outcome is to get more PWDs to be employed so that they can also contribute to the society. However, we cannot assume that the vocational training for the PWDs will last them a lifetime. PWDs need CET like any other workers. How can WDA or e2i help in this area? Page: 1921 Mature Workers Mr Seng Han Thong : Mr Chairman, when the labour movement advocated the review of CPF rate for mature workers last year, some employers were concerned that it might increase their manpower cost while others said that, that was the adjustment they had to make. Similarly, many mature workers are of the view that their CPF should not be reduced just because they hit the age of 50 while other workers, especially the lower wage and contract workers, feared that their employers might lower their wage to offset any increase in CPF. That is what the Chinese say:“有人欢喜,有人愁” .”
“However, there is little attention or resources allocated to ensure that the workforce comprising the disabled (PWDs) is continually trained and can count on lifelong learning to ensure that their skills are relevant and their employment sustained. If the CET issue is not addressed, the Special Employment Credit for the disabled (PWDs) will lose impact soon as their skills will become obsolete due to a lack of lifelong structured training and development. I urge the Ministry to provide headcounts, expertise and funds to form a CET taskforce to work with key disability groups in Singapore to develop a future-proof special-needs workforce. Finally, on Proactive Career Management. Sir, the Government has expended millions of dollars to ensure the Singapore workforce is relevant and can work for as long as they wish to. I wish to highlight the need to inculcate in all Singaporean workers, the PMEs especially, the ability to retrenchment- and future-proof themselves through more proactive career management on their own. Prevention is better than cure. It is often too late and too traumatic to receive career counselling only when one is retrenched or displaced, or about to be retrenched or displaced. I urge the Ministry to take the lead in launching bite-sized, multi-lingual training programmes delivered in the appropriate media, to coach Singaporeans, especially the PMEs, how to proactively manage their careers and make themselves retrenchment- and future-proof. Changing Profile of Our Workforce Mr Ang Wei Neng (Jurong) : Mr Chairman, thank you for allowing me to touch on issues pertaining to the changing profile of our local workforce. Firstly, our local workforce is ageing.”
“Sir, beyond enforcing best sourcing and offering cash grants to the SMEs and industries such as cleaning and F&B which host jobs that are typically low paying, low skill and low appeal, MOM should seriously assemble a team of job designing and job re-creation expertise to help transform these jobs. I remember when I was a young officer at an American multi-national, all staff from production operators to our managing director must return our used utensils to a belt that led to the back of the cafe where the cafe workers then pick them up for washing. 3.00 pm The cafe workers when they were not cleaning also took on additional duties in food preparation. Their uniforms were specially designed and all of us "internal customers" treated them with respect and dignity. This was the best practice some 20 years ago. It is sad that the cleaning and F&B sectors of today have not progressed that much or beyond that. Page: 1920 I therefore seek MOM's further intervention to enhance the cleaning, lower-end F&B sectors, and the like. Can turn-around teams help study and design the jobs and the work environment in such a way that these jobs can be expanded and made more dignified? If these jobs are better designed and presented, perhaps fewer locals will shun the job and there is no need for such a high percentage of foreign workers in this industry. Next, on Continuing Education and Training (CET) for the Disabled. Sir, the typical workforce in Singapore benefits from the structured CET that is rolled out very well by MOM under the WDA since the last recession. The CET programme for the able-bodied workforce has gone from strength to strength with expanded offerings and target groups like the PMEs.”
“And I think this will also continue to encourage women to return to the workforce; (iii) I support the call by Mr Ang Hin Kee to extend the Special Employment Credit to employers to recruit back-to-work women in the workforce. I understand the Minister's view, and we are not giving up and we are trying again; (iv) to launch annually a nationwide "Flexible Work Arrangement (FWA) Campaign" to generate more awareness as well as to encourage companies to implement FWA in a more concerted way; (v) besides offering flexi-works funding to companies, try to make it fit the process of claim user-friendly and also make it more attractive to tap on, with minimal restrictions and administrative procedures; (vi) to adopt additional measures to support back-to-work PMEs who face greater obstacles compared to the rank and file women as opportunities are even more limited for them, including developing a database of both the employers and the back-to-work PMEs to support job-matching efforts. Sir, last but not least, I would like to ask the Government to make every attempt to encourage our women to return to the workforce. They have gone through the different challenges in life and are mature and responsible. I am confident that most will be resilient to stand by their employers. Especially during the tough time when the company is facing crisis, you will see that women are like tea leaves – you will never know their strength until they are in hot water. We will be there for you. Supporting the Vulnerable and Displaced Ms Denise Phua Lay Peng (Moulmein-Kallang) : Sir, three areas of recommendations: First, on job re-designing and job re-creation, and expertise for low-income jobs.”
“Given that there is a tightening of foreign labour, I think this is the best time for us to really look at tapping on this available pool of women to encourage them to come back to the labour force. Mr Chairman, Sir, allow me to share the case of Joanne that the NTUC's Women Back to Work Programme has helped. She is 40 years old and she has one eight-year-old child and a sickly father. She is a graduate working as a bank officer earning some $3,000 a month. Joanne quit her banking job in 2005 when she found that she had to juggle between her young daughter, who was one year old then, and her father who suffered a stroke. In 2007, after nursing her father back to health, she decided to return to the workforce. After trying for a year, she was very disheartened that no employer was willing to consider her at all. Subsequently for Joanne, she came across the NTUC Women's Development Secretariat (WDS) who worked with enlightened employers who were mindful of the gap. In October 2008, they finally secured a job for her with a financial company as a deals executive. Today, I am glad to say that she is still employed as a senior executive. Page: 1919 I believe that for every Joanne that we helped, there are many more out there needing support, especially our female PMEs. Besides the existing efforts that the Government has made, I would like to ask the Ministry to consider the following: (i) being the largest employer, to take the lead by creating more flexi-work for women in the public sector; (ii) to consider some forms of incentive or tax relief to help women who do not rely on domestic help but very much dependent on nannies or their relatives for child care help and support.”
“We noted that women with young children aged between 0 and 12 years old are more likely to quit the workforce to focus on the development of their children. Unlike the developed countries like Sweden, Finland and Norway, we do not have a double hump for women's participation in the labour force. Our women leave their jobs to take care of their children and many never return to the workplace and thus resulted in a single hump. The longer the women stay out of the workforce, the more challenging it will be for them to return. Most employers also become more reluctant to employ them. I think we should take the approach of prevention is better than cure. Mr Chairman, Sir, as women become more educated and more are carving a niche for themselves in their careers, they find themselves hard pressed because of the lack of flexibility in how work is being done. If we are going to call ourselves an inclusive society, then women should be given the opportunity to work, have a family and be able to take care of their loved ones while still having a career with progression and decent pay. And the only way to do so is to ensure that we have a culture that supports flexi-work in our workplace. Getting women back to work is not just providing a lactation room but also requires the support and the change of mindset of employers and fellow workers to provide the conducive and supportive environment so that our women can return to work and juggle their responsibilities, to have a work life balance without having to feel guilty that they could not perform their multiple roles well and ultimately they have no alternative but to quit their jobs. We would like to see more support from the employers who are willing to offer flexi-work arrangements and are willing to do job re-design.”
“We are a small nation, we are a small population. It is imperative that we find ways to maximise our manpower needs to meet the requirements of the economy to grow and to compete globally. Older workers as potential employees in the workforce differ in abilities, desires and needs. Hence, re-integrating them into the workforce may call for customised approaches depending on their abilities and situations. Re-integrating the retired professional versus integrating the production worker will require a different approach. I would like to know what programmes MOM has to encourage industries to re-design work processes to cater to elderly workers and how successful these programmes have been. Homemakers who wish to join or re-join the workforce are another pool of human resource. However, attracting them into the workforce has a different set of challenges. I would also like to know what progress has been made in this area so far. Page: 1918 Given the various schemes in place, for training and re-training, how does the Ministry measure the effectiveness of its programmes and what other strategies does the Ministry have to further encourage these groups to go back to the workforce? Besides working conditions, attractive pay and flexi-working hours, I believe proximity to their home is another important factor for them. The Government may want to relook at the land use and usage of property in residential areas to allow some suitable industries to be located within the residential zones. More Measures to Support Flexi-work Ms Mary Liew : Sir, as we reduce our dependence on foreign labour, getting Singaporeans to fill these gaps becomes very critical. We still have a large proportion of women who are not working but are contributing meaningfully to their families.”
“Employers could cut down on administrative work and this could be one way of raising productivity. Thus, I hope the Ministry of Manpower could consider relaxing the policy of CPF for part-time workers to encourage more employers to recruit them. My second point is on Special Employment Credit (SEC). Engineers, professionals, managers and other older middle-income workers would be affected by the economic restructuring. Under the SEC, employers who employ older workers earning $3,000 or lower, could get 8% wage subsidy. For workers with a monthly wage of between $3,000 and $4,000, the SEC would be lower. For those earning more than $4,000, SEC would not apply. However, the older workers who earn more than $4,000 are also the people whose service companies would like to retain. Thus, I would suggest that the Government raise the salary level for SEC, to include this group of middle income workers. Finally, I would like to emphasise that foreign workers are an important component of the Singapore labour force, and they have also made great contributions to Singapore's economic development. Foreign workers are not cheap labour. They take up jobs in industries that most Singaporeans are either unwilling to take up or unable to undertake. Hence, training provided by companies should also be extended to foreign workers. This would enable them to improve their skills and effectiveness, and raise overall productivity. Elderly Workers, Retirees and Homemakers Mr Low Thia Khiang : Sir, weaning the economy off foreign labour requires us to look inwards to our existing pool of elderly workers, retirees and homemakers. We share the view of the Finance Minister that many of our homemakers in Singapore who retire early are willing to work either part-time or full-time.”
“In any case, our company is too small and can never qualify." Going forward, Government and associations need to look into improving the promotional outreach, and simplify the application procedures. This is to ensure that more SMEs could really take good advantage of these schemes. This is truly the challenge faced by the Chamber and the government agencies. As Deputy Prime Minister Tharman has said, the Government is prepared to go out of its way to help the SMEs, and hold their hands to help them improve productivity. There is a Chinese saying: "A capable man needs three helping hands to do a good job." Every successful entrepreneur would go through an initial phase. He may be full of ambition and passion. If he cannot find workers, he would be fighting a lonely battle. At such a time, any solution would be most encouraging and gratifying. Hence, I would like to suggest broadening manpower sources and adjusting the management process and remuneration for part-time workers. This would encourage students, housewives and older individuals to re-enter the workforce by working part-time. This would relieve the labour shortage for "micro companies" and SMEs. This year, the Ministry of Manpower has relaxed the policy to allow foreign spouses to apply for employment under the Long-term Social Visit Pass-Plus. This move would also help to relieve the acute manpower shortage. Page: 1917 One of the Chamber's members has indicated that part-time workers prefer to be paid in cash upfront. If we were to let go one foreign worker, the company needs to recruit two or more part-time staff to fill the vacancy. If the Ministry of Manpower could allow employers to pay part-time workers like housewives in cash and waive CPF, these part-time workers could have more ready cash.”
“(In Mandarin): [Please refer to Pg 1985-1986 for Vernacular Speeches.] Mr Speaker, Sir, 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. Last Thursday, Deputy Prime Minister Tharman said in Parliament that Government will go out of its way to reach out to SMEs, via working with the business associations, Enterprise Development Centres, and CDCs. This is to ensure that SMEs could benefit from all assistance schemes. At the same time, the Government would be making more land available under the Government Land Sales Programme to help reduce rental overheads. It has also declared exercising greater flexibility in the foreign worker policy. This move has my wholehearted support. On raising productivity, I feel that effective communication and timely policy adjustments would enable the Government and businesses to work together to address business challenges. This is indeed the objective of our active participation in the Budget debate. I take this opportunity to share what we have encountered when promoting various government assistance schemes. In 2006, SCCCI set up the Enterprise Development Centre with the support of SPRING Singapore. Over these five years, we discovered this common problem. Start-ups and "micro companies", like HDB neighbourhood shops and shops in Chinatown, Little India and the Malay Village, cannot meet the application criteria because they are simply too small. EDC@SCCCI holds regular briefings or workshops in Mandarin to explain Government policies to businessmen. When our EDC staff make calls inviting them to participate in these sessions, they get this standard response: "I don't need to listen.”
“In addition, what are the Ministry's future plans in air services liberalisation, especially among countries in ASEAN? Aviation industry development”
“Overall, I am pleased to note that the Government has taken a positive note of the maritime industry's wish list and proposals have been incorporated in the Budget Statement. This is also a testament of the close cooperation between the public and private sectors to propel our economy forward. I hope that these initiatives can be implemented quickly, smoothly and with clarity, especially when there is inter-Ministry work involved, so that the business climate in Singapore remains conducive for shipping companies to compete internationally and strengthen our position as an international maritime centre. Air services liberalisation Assoc. Prof. Dr Muhammad Faishal Ibrahim: Sir, I strongly believe that open and free trade is beneficial for our businesses, consumers and economy as a whole. I am pleased to note that we have adopted a liberal air services policy, as demonstrated in our active role in Asia Pacific Economic Cooperation (APEC) Forum and our membership in the Multilateral Agreement on the Liberalisation of International Air Transportation. I understand that under Singapore's chairmanship of the APEC Small Group, we have advocated for more competitive air services with fair and equitable opportunity for all member countries. We have played our part to facilitate many APEC economies liberalise their air services at their own pace. We also urge economies worldwide to consider maximising the opportunities for air services liberalisation. It widely known that the Asia-Pacific is now the world's largest air travel market with immense potential for further growth and development. I would like to ask the Minister what the Government is doing to ensure that Changi Airport and our carriers are able to tap on the growing air transport market in our region.”
“Initiated to attract new ship operators to Singapore, the Maritime Sector Incentive (MSI) is only valid for five years and cannot be renewed, unlike the 10 years of tax benefits offered by the existing Approved International Shipping Enterprise (AIS) scheme. We understand that this is based on the assumption that, before the end of the fifth year, these companies will have grown in size so as to qualify for the main AIS tax incentive. However, the past two years have shown that shipping is heavily dependent on the health of the global economy. If the companies are marginally unable to meet the AIS criteria, could some form of grace period be given? I would also like to raise the following issues which were not included in the 2011 Budget Statement, but are of great concern to our maritime industry. First, is the funding for green initiatives. In terms of CO2 emissions per tonne of cargo transported per mile, shipping is the most efficient form of commercial transport. However, this efficiency does not come cheap. From the industry perspective, we strongly encourage that, instead of simply relying on punitive measures, regulators should also provide additional incentives for responsible shipowners who are willing to invest in new measures aimed to further reduce pollution from ships. As such, for those shipowners who are willing to be early adopters of new technologies, may I suggest some form of port dues concession like operators of "green ships" get to enjoy in Hong Kong. Next an EXIM Bank for shipping. In my speech during my cut on the Ministry of Finance yesterday, I advocated setting up an EXIM Bank in Singapore to develop Singapore as an International Maritime Centre. I hope this would be given due consideration in view of the importance of the maritime sector.”
“Mr Chairman, Members of Parliament, good afternoon. Speaking as a board member of the Maritime and Port Authority of Singapore, President of the Singapore Shipping Association and Managing Director of a local shipping line, I am glad to note that during the Budget 2011 speech, the Singapore maritime industry contributing 7.5% of our GDP was recognised by our Government as one of the key sectors supporting Singapore's vision to become a Global-Asia Hub. The industry was given some incentives in this year's Budget to realise this vision. We are happy to note that there will now be certainty of withholding tax exemption for interest payments on loans to build or buy ships without having to apply for it on a case-by-case basis. This is important as ship finance is harder to come by after the last financial crisis. Such a move would also help to grow ship financing activities in Singapore. 5.30 pm The maritime industry welcomes the new measures aimed at simplifying GST compliance. In particular, we applaud the introduction of a GST scheme to zero-rate supplies of goods to "approved marine customers". We also welcome the expansion of the scope of zero-rating of repair and maintenance services of ship parts and components, without having to maintain the requisite documentary proof for GST relief. This is in line with the treatment enjoyed by the aerospace industry. Not only will this allow the industry to optimise its human resources and reduce GST compliance cost, it will also raise productivity and facilitate the development of the marine supply and repair businesses.”
“Developing capability in accountancy sector Assoc. Prof. Dr Muhammad Faishal Ibrahim: Sir, the accountancy sector plays a significant role in providing access to talent and professional accountancy services required by our economy. In April 2010, the Committee to Develop the Accountancy Sector (CDAS) proposed 10 recommendations to broaden the talent pool and deepen expertise in the accounting sector to transform Singapore into a leading global accountancy hub for Asia Pacific by 2020. I find that the report provides credible and good recommendations, as well as directions in helping us to build capabilities in the accounting sector. I would like to ask the Minister for an update on the progress made in implementing the recommendations made by CDAS. What are the challenges that we are likely to face in our quest to be a global accountancy hub and how are we going to address these challenges? Singapore as a global accountancy hub”
“In fact, it was just reported on the 4th of March that the EXIM Bank of Korea, the state-run lender known as Kexim, will be boosting its 2011 fund-raising target by about 10%, to finance more shipbuilding orders. Banks in Singapore might be uncomfortable with taking up such exposures, especically for financing of rigs and FPSOs. Banks tend to shy away from financing due to the huge amount of money involved and the risk deemed involved with the oil businesses. If such an EXIM bank were to be set up in Singapore, it could be tied to activities like building rigs and FPSOs at yards in Singapore, which is a booming sector here. By doing so, we can not only develop Singapore as a ship financing centre, but truly become a one-stop International Maritime Centre. On the topic of financing for SMEs, I would also like to touch upon the Co-Investment Programme for SMEs. Under Phase One of this programme launched in December last year, the Government will provide up to $250 million in capital to grow local firms into globally competitive players. This would be matched by private equity fund managers. It is envisaged that about $200 million will go to promising SMEs with annual revenues of less than $100 million. The Co-Investment Programme will be administered by private equity fund managers. In order to ensure that promising SMEs benefit from this programme, I hope the Government would provide special consideration or added incentives to encourage these fund managers to assist new and innovative SMEs. These new and innovative SMEs are likely to venture into fast-growing new industries or traditional industries with new growth potential. Ultimately, SMEs should find faster and easier access to capital, so that they could survive, thrive and contribute even more to our economy.”
“I raised this same concern during the Budget debate last year, and continued to ask for an update on the setting up of an EXIM bank in a subsequent Parliament session in May last year. We are experiencing increasing volatility in various regions today. As Minister had mentioned at the beginning of his Budget speech, the external condition has become more complex. Last year, the concerns were on the sovereign debt crisis in Europe. This year, the Middle East and North Africa are being affected by revolts and toppled regimes. This would definitely affect the cost of borrowing in private financial institutions. If SMEs were to rely on traditional banking channels, they are unlikely to make any headway in the current market. A full-fledged, dedicated EXIM bank to support cross-border financing would have addressed this need. This vehicle would then take a long-term view of overseas investments instead of shying away from financial support to fuel business expansion. We are concerned that further delays on setting up such a financial vehicle would become a precious opportunity cost for SMEs. I would also like to discuss how an EXIM Bank could help to develop the maritime sector, which has been identified as one of Singapore’s strategic business sectors. Based on industry feedback, shipping banks in Singapore are not as competitive as EXIM banks. They rarely lend to companies beyond a five-year tenure and often require vessels as mortgages and collateral. Export-Import institutions in China and South Korea are more willing to lend on commercial terms and provide liquidity to shipowners. Even though there are certain strings attached to the loans, such as building the vessels at their yards, they can provide up to 70% financing.”
“They are strapped by the inability to secure financing from risk-averse commercial banks. Having no track record is viewed as a major constraint by the banks. Thus, the prospect of an independent EXIM Bank to support their overseas ventures seems to provide a glimmer of hope. Again, let me cite the case of WEC Engineers & Constructors Pte Ltd, which I brought up in the Budget debate last year. WEC’s core business is in the aviation and jet fuel system. The company had applied for IE Singapore’s Internationalisation Finance Scheme, where IE Singapore’s portion of risk sharing is 70% while the participating financial institution's (PFI) portion is 30%. However, because WEC is an SME, the PFI demanded that the company should undertake additional co-sharing of default risks. Overseas ventures require a healthy cash flow, and this additional co-sharing ties up their liquidity funds. WEC also heeded the Government’s call to develop overseas markets, and are currently bidding for two projects in Indo-China. Overseas projects are far larger in scope than those in Singapore’s small domestic market, and thus, require additional financial assistance. This is extremely difficult to secure through commercially-driven financial institutions. Venturing overseas is not for the faint-hearted. Businessmen and entrepreneurs need to have big dreams. At the same time, substantial financial resources need to be invested before these dreams can be a reality. The ideal scenario would be to combine private enterprise with Government support. In this case, Government support in the form of an EXIM bank was considered essential and important.”
“Mr Speaker, Sir, and Members of Parliament, good afternoon. First, I would like to declare that I am the President of the Singapore Chinese Chamber of Commerce & Industry, President of the Singapore Shipping Association and Managing Director of Pacific International Lines. The notion of an EXIM Bank for cross-border financing was brought up by the Economic Strategies Committee and then again in Budget 2010. Since then, the business community, especially the SMEs, had been looking forward to good news on the setting up of such a specialised institution. The setting up of an EXIM Bank would be highly useful in serving the needs of SMEs intending to spread their wings into emerging markets. After listening to the 2011 Budget Statement, SMEs cannot help but feel disappointed. I speak on behalf of SME owners who expressed dismay upon learning that the Government has decided against setting up a dedicated trade finance institution. This was only disclosed after a whole year had gone by. Instead, we were told that the Government would work with existing specialists and providers to provide such a service to SMEs. Again, there is no real certainty on the details as the Government will only provide an update in the latter half of 2011. 12.15 pm I note that the Government plans to work with commercial players to set up this specialised institution for cross-border financing. This is likely to work at cross purposes. Existing specialist providers are driven by commercial considerations and are reluctant to provide financing for overseas projects bearing a higher element of risk. Currently, SMEs with the resolve and intention to embark on viable projects in emerging markets find themselves in a dilemma.”
“This week, Deputy Prime Minister Teo Chee Hean announced that the National Productivity and Continuing Education Council has identified 12 sectors that have greater room to improve productivity. Among the 12 sectors, seven have already formulated their roadmap. SCCCI has 137 trade association members; we are more than willing to help the Government implement the roadmap according to industry characteristics. For a smooth implementation, I suggest that trade associations be invited to join the review and implementation process. Being insiders with most knowledge about their own trades and industries, they can provide effective suggestions which can lead to "double the results with half the effort". With the tantalising carrot in front of him, the little rabbit will try its utmost to eat it. As long as the carrot is not placed too high, it will be within reach of the rabbit. We need to encourage the rabbits to build up team spirit and work together to find good ways to improve productivity.”
“Meanwhile, we are also in discussion with other ethnic associations on collaboration. On 25th February this year, the grant was finally approved. We were relieved. Here, I would like to thank MTI and IE Singapore for their trust and support. Now the NPF has increased to $2 billion. This is a huge sum which promises a lot of carrots for the rabbits. However, what we are concerned about is how SMEs can meet the requirements of the Government agencies to enjoy the grant. SCCCI waited seven months for the approval; this was not long, but do other SMEs have the resources to wait this long? Hence, I suggest we streamline the application process and shorten the time needed to apply and get funds. This will make the first step easy for SMEs and the rabbits would have the chance to eat the carrots. This year's Budget has greatly enhanced the PIC scheme. Companies, however, can only reap benefits in the next financial year. Water afar cannot slake the thirst now. Many SMEs are short of capital. Purchase of new equipment, training of staff, innovation and development all need large upfront capital. When the rabbit is hungry, you present it with a carrot; it may not be a whole carrot, it can be half or one-third. With that, the rabbit can develop some strength first and then will have energy to grab more carrots to improve productivity. I suggest that we change the way PIC is applied. We can let the companies enjoy the incentives earlier. This may increase the workload of Government agencies, but the most meaningful thing is for the rabbit to be able to eat the carrots. Both NPF and PIC are designed to help companies improve productivity. The next thing we are concerned about is how to implement them effectively.”
“[For vernacular speech, please refer to Appendix A*.] Mr Chairman, Sir, fellow Members of Parliament, first, I would like to declare that I am the President of Singapore Chinese Chamber of Commerce and Industry (SCCCI). This year is the Year of the Rabbit, so I shall use rabbits as a simile for our businessmen. I will use the example of rabbits eating carrots to describe the difficulties faced by SMEs in *Cols. 3819-3822. applying for the National Productivity Fund (NPF) and Productivity and Innovation Credit (PIC). In the new Budget, the Government is topping up the NPF to $2 billion. It also enhanced the PIC, giving the businesses more incentives to improve their productivity. In other words, the Government has prepared a full basket of carrots for the rabbits – SMEs – to eat. This is exciting news indeed! However, I have asked many people and they have raised this concern: the carrots are strung up too high, so how can the rabbits reach them? In fact, the Government has been supporting the SMEs unswervingly all along. However, due to the somewhat complicated application procedures and a rather long approval process, many companies have been held back. SMEs that have benefited are few. Take SCCCI as an example. We set up our first overseas office in Shanghai as a response to the Economic Strategies Committee's (ESC) call. Last July, we applied for the Local Enterprise and Association Development (LEAD) scheme. Although we could not ascertain if the application would be approved, we still resolved to set up the Shanghai office in October last year. We made the right decision. So far, we have signed MOUs with five local trade associations and the Chongqing Liangjiang New Area. Our Shanghai office will facilitate mutual visits and business matching.”
“Thank you, Minister, for the explanation. Our concern is that smaller companies may not have jobs for the older workers and they have to pay the EAP of $4,500 to $10,000. To some small companies, that is quite a burden. How does the Minister feel about that?”
“While the new Act is being implemented, it will take some time for the older workers and the employers to make adjustments. From the employer's perspective, the company will have to re-design work processes to suit the older workers. If the type of work is changed, the employer also needs to encourage the older worker to undergo necessary training. If the Government can provide incentives to benefit both the employer and the worker, it will definitely raise both parties' enthusiasm. Human resources form Singapore's precious capital. Older workers are experienced and can help train the younger generation. Re-employing them will not only solve the labour shortage problem but also improve the company's competitiveness. This, in turn, will help our economy's continuous growth. To conclude, the business community supports this Bill to re-employ older workers. However, the Bill must take into consideration the different characteristics of different industries. In the meantime, we hope the Government can put forward an effective incentivising mechanism to help companies to implement the changes as fast as it can. I support changing the Retirement Act to Retirement and Re-Employment Act. 3.33 pm”
“implementation is not going to be smooth. Employers and workers must work together and make mutual adjustment for the Bill to be truly effective. For example, construction, electric and precision engineering, and marine operations require their workers to be either physically strong or have good eye sight. Older workers might find it hard to continue with such jobs. In this situation, employers and workers must try to reconcile and resolve their differences. I am pleased to see that the tripartite partners have drawn up a practical guideline. Currently, MOM is reviewing 26 categories of workers to be exempted from the Bill, with reasons such as physical demand. I worry that for those older workers who are not under these categories and whose performance is not up to standard, the employer will have to pay them between $4,500 and $10,000 employment assistance if he does not wish to re-employ them. This adds on to the labour cost and the financial burden of the employer. Undoubtedly, SMEs will face a two-fold cost challenge in the future. On one hand, the Economic Strategies Committee (ESC) recommends increasing Singapore workers' wage to $3,100 by 2020; on the other hand, companies cannot expect too much on production efficiency after employing older workers. Therefore, we must have effective measures to help companies reduce cost and grow. Hence, I propose that the Government puts forward an incentivising mechanism similar to the Jobs Credit Scheme to encourage companies to re-hire older workers by giving out grants. During the financial crisis, the Jobs Credit Scheme proved to be very effective. It helped to retain workers' jobs and lower companies' costs; hence it was supported by both the employers and workers.”
“[For vernacular speech, please refer to Appendix A*.] Mr Speaker, Sir, first, I would like to declare that I am the President of the Singapore Chinese Chamber of Commerce and Industry (SCCCI) and the Managing Director of Pacific International Lines. I have two points regarding this Bill, from the perspective of the business community. First, the Amendment Bill will help ease the labour shortage problem, but we need to exercise flexibility in its implementation and, second, I hope the Government can put forward effective relief measures to reduce the burden for employers, especially SMEs. In recent years, the topic of re-employing older workers has been widely debated among the tripartite partners. Statistics from MOM show that the employment rate of workers aged between 55 and 64 had risen to 59% last year, thanks to a strong economy. It demonstrates that the labour market does need older workers. SCCCI recently did a survey to find out the views of its members. Among the companies surveyed, over 90% expressed willingness to hire older workers. Some already started to do so. Over 50% are SMEs. It shows that SMEs are more concerned with this issue. Singapore companies have long been facing a labour shortage problem, although the Government has taken many steps to solve it. Under the multiple impacts of capital shortage, foreign labour reduction and an ageing population, SMEs are struggling. The Bill is very timely, and will deliver a clear message to both employers and workers. It will not only have a great impact on ensuring older workers' welfare but also help ease the ever pressing problem of labour shortage. We wholeheartedly support this decision. However, different industries have different characteristics, and the *Cols. 2337-2340.”
“I thank the Senior Minister of State for the reply. If knowing that the tenant has repeatedly submitted a tender proposal that was not up to the requirements of HDB, could HDB have gone to another tenderer and ask for an alternative proposal?”
“The newly introduced measures in this Bill, coupled with the current enhanced tax deduction incentives for donations, will contribute towards the Government's vision of developing Singapore as a philanthropy hub. In conclusion, I support the Bill.”
“The current Code of Governance for Charities states that the positions of Treasurer and Audit/Finance Committee Chairmen on the Board of Directors should preferably possess recognised accounting qualifications and appropriate practical experience. As a Best Practice Guideline, the Code of Governance is not for legal compliance. Charities are encouraged to adopt the guidelines. As such, not all charities may adopt this guideline. Such guidelines are probably even more crucial for large charities. Perhaps, the Charities Act or the Code of Governance could be more explicit to ensure that more charities, especially the larger ones, adopt these guidelines. Given their knowledge, experience and skills, accounting and finance professionals can assist the Board to oversee the financial management and internal control systems of the charity unit. Another suggestion is on the financial management in large charities and IPCs. Should there be a requirement under the Charities Act, or a guideline under the Code of Governance, that a Financial Director or Manager has to be a qualified Certified Public Accountant (CPA), or someone with similar recognised academic and professional qualifications, to be employed by large-sized charities? This will ensure that a suitably qualified professional can formulate and implement the necessary financial and accounting policies as well as establish internal control systems for the charity unit. A large-sized charity unit could also be encouraged to set up an internal audit department to regularly review the policies and internal control systems. Small charities, however, may find this difficult due to their limited resources and maybe some form of assistance could be offered to them.”
“Mr Speaker, Sir, firstly, I would like to declare my interest as the Chairman of the Singapore Chinese Chamber of Commerce Foundation. Given the few high profile charity mismanagement in the last few years, this is indeed a timely reminder of the fallibility of humans and the temptations in the handling of public funds. I realise that there will never be a perfect solution as the system can always be outsmarted. However, having the necessary safeguards in place will go a long way towards restoring the trust and confidence of the public. The survival of charities is dependent on public generosity. There is now an increased support in charitable giving. This is clearly shown in the latest annual report by the Commissioner of Charities. Despite the downturn last year, the report revealed an increase in individual donations in the charity sector. As the fund-raising field shapes up to be more competitive, it is inevitable that organisers will seek ways to boost exposure, which include television extravaganzas and mass participation events, so as to capture a slice of the growing pie. Given the expected increase in the flow of funds to charities, the measures introduced to deliver more teeth to the Charities Act will send a strong signal that systemic weakness will not be condoned while lifting corporate governance in this sector. Greater transparency will also go a long way towards assuring the public that donations, both in cash and kind, are properly accounted for. However, I would like to recommend two areas that could further improve the internal financial controls of charities. Take as an example financial supervision for Board of Directors of Charities.”
“Two, encourage professionalism and call for cooperation from consumers. Usually, the way to increase productivity is to simplify the working process, improve product, service and staff quality, and develop value-added services. In this process, we cannot under-estimate the spirit of professionalism. We must reward those staff who love their job and demonstrate a good working attitude. However, to increase productivity, the Government and businesses cannot do it alone. We need everybody to join in. For example, when we eat at hawker centres, and if we put our dishes away ourselves, we can reduce the workload of the cleaners. This also solves the problem of labour shortage. We need to change our mindset. If we can do this at the fast food chains, surely we can do this at the hawker centres. The key is: do Singaporeans want to do it or not? Third, spread the productivity message to everyone in the society, including secondary and primary students. Increasing productivity has been a national campaign since the 1980s. This year, the Government is again focusing on productivity to prepare Singapore for sustainable economic growth. I feel that the productivity education should involve all levels of society, including students; by inculcating the notion of productivity from a young age, students would cultivate the right mindset and form an efficient team in the future. Increasing productivity is a long journey. I believe that, under the leadership of the Government and with the joint effort of the tripartite partners, Singapore's productivity is bound to improve. In conclusion, I support the Bill.”
“If they try to use automation to replace manual work, consumers may not like it. Our survey also proved this. In the service sector, only 58% of companies are actively boosting productivity, lower than that of the manufacturing sector. The main reason is that it is easier to gauge efficiency in manufacturing, whereas in the service sector, not only cost and efficiency, but also service quality and the consumers' needs are taken into consideration. This makes things more complicated. Since the Government and businesses have come to a consensus, the next step is to adopt effective measures based on each industry's specific needs and characteristics. For example, the Workfare Training Scheme is more popular in the service sector than in manufacturing, which shows that, compared to other industries, the service sector pays more attention to improving the quality of their staff. I suggest that in the future, the Government could consult the views of the tripartite partners before launching any business assistance schemes or grants. This will increase the effectiveness of the policy, avoid the "one size fits all" approach, and benefit more companies. As for the Productivity and Innovation Credit Scheme, many companies are adopting the wait-and-see attitude. Some say that if they invest in innovation first and apply for tax rebate later, what will happen when the innovation fails and they cannot even get tax rebate? What is more, the investment cannot get tax rebate until the next financial year. "Water afar cannot relieve current thirst". Hence, I suggest that the relevant agency review this Scheme to deliver more effective grants and encourage SMEs to take bold steps to innovate. We need to deliver "coal when it is snowing" and help SMEs solve their pressing issues.”
“[For vernacular speech, please refer to Appendix A *. ] Mr Speaker, good afternoon! First, I would like to declare my interest as the President of the Singapore Chinese Chamber of Commerce and Industry (SCCCI). Today, I would like to talk about improving productivity from the businesses' point of view. This year's Budget focuses on restructuring the economy and raising productivity to further Singapore's economic growth. In his recent National Day Rally speech in August, Prime Minister Lee emphasised again the importance of raising productivity. Businesses respond positively to this call. Today, I would like to express my views in the following three areas: First, response from SMEs. The Government is actively pushing the productivity drive, but are our companies taking any actions? SCCCI did a survey. Among the 1,051 companies surveyed, 62% are actively responding to the call to improve productivity and only 8.6% have not taken any actions. Industry-wise, the manufacturing sector is the best with 72% of companies adopting at least three initiatives to boost productivity. This is a very good phenomenon, demonstrating that most companies agree with the *Cols. 1293-1294; 1295-1298. Government and are taking proactive steps. However, the business models of various industries are different. Therefore, it is difficult to come to a unified standard to measure productivity. For example, a famous local bak kwa shop always sees long queues during Chinese New Year. People need to queue two to three hours. In comparison, other stores are not patronised by so many people. I think, besides branding, the major draw of this shop is that its products are handmade and not mass-produced by machines. This is very common in the food and beverage sector.”
“Mdm Cynthia Phua asked the Minister for Trade and Industry (a) what is the current process to test the toxicity of toys by importers; (b) whether the Ministry will look into a nation-wide review of all toys in the market before the year-end season; (c) what are the regulatory safeguards to protect children against toxic chemicals in toys; and (d) whether the Ministry has plans to tighten regulations on the importation of toys before they are put on the market.”
“Thank you, Minister, for the explanation. I have two questions. One, does the Singapore Government foresee that one day, it will become the RMB swap centre in Southeast Asia versus Hong Kong for the North Asia region? Two, what company in Singapore would qualify for this facility? Does it have to be a Singapore-owned company or as long as the company is registered in Singapore? Mr Lim Hng Kiang: Mr Speaker, Sir, as Members are aware, currently, the Chinese are keen to internationalise the renminbi and the main vehicle for doing so is through Hong Kong. But having this swap line, we are encouraging them to also provide the facility through Singapore. We can imagine or we can expect the Chinese to do so bilaterally with other Southeast Asian countries. To the extent that Singapore is the financial hub for Southeast Asia and the trade and investment facilitator for many of the deals and many of the MNC operations in Southeast Asia, then, of course, Singapore can aspire to be a renminbi centre for Southeast Asia. But we must also recognise that there will be bilateral arrangements. Companies which can benefit from this will be largely trading companies and also companies that intend to invest in China. Those companies which are based in Singapore can make use of this facility. As I said, the issue is in the details. How this will work is largely back to back and, therefore, we need specific transactions and specific deals to operationalise the whole procedure. TOXICITY OF IMPORTED TOYS 15.”
“In conclusion, I support the amendment to the Bill. *Cols. 1015-1016.”
“However, even though the qualifying scope is widened, there is still a need to maintain the relevant export documents such as delivery orders and these must be certified by the Ship Master or Chief Engineer that goods and equipment on the ship are intended for export. Quite often, as the ship's duration in the port is short, the Ship Master or the Chief Engineer is too busy to get the documentation done on time. Therefore, documents are not ready by the time the ship leaves the port, and both the supplier and the customer have to track closely the documents thereafter. Ideally, we should work towards having a similar treatment enjoyed by the aerospace industry, where there is a standard list of qualifying components. When purchasing such components, no signatures are required from the Ship Master or Chief Engineer. This would streamline the whole documentation process. Hence, I recommend that IRAS forms a working committee comprising the Association of Singapore Marine Industries (ASMI), Singapore Shipping Association (SSA), Singapore Association of Ship Suppliers (SASS) and other relevant stakeholders from the maritime industry to study the feasibility and benefit of identifying a list of ship parts that are unique to the industry. This list can then be used as a reference for the purpose of identifying "qualifying ship parts". This will not only save human resources and GST compliance cost, increase the productivity of the marine sector, but also facilitate the business development of the marine suppliers and improve Singapore’s image of being an international cruise centre. I believe that greater relief can be provided in this respect so as to enhance Singapore's status as a maritime hub and further underscore the Government’s pro-business policy.”
“[For vernacular speech, please refer to Appendix A*.] Mdm Deputy Speaker, first, I would like to declare my interest as a board member of the Maritime and Port Authority of Singapore, President of the Singapore Shipping Association and the Managing Director of Pacific International Lines Private Limited. Today, I would like to talk about what the marine industry expects from the Bill. The maritime industry is a very important sector for Singapore, accounting for 7% of the country’s GDP and employing over 150,000 people. Singapore has already achieved the status of becoming an international maritime centre for Asia and the world. Prior to this Amendment Bill, the zero-rating for qualifying ships included most commercial ships (including oil rigs). Ships for recreational or pleasure use, including those licensed under the Maritime and Port Authority of Singapore (MPA), were excluded. After the amendment, the definition of "qualifying ship" will now be widened to include ships for pleasure and recreational use. Zero-rating relief has also been granted to ships sailing between Singapore and international waters and it would no longer be necessary for them to call on a foreign port outside Singapore to qualify for zero-rating. "Cruise to nowhere" is one such example. Usually it will depart Singapore and sail to international waters for a few days and return to Singapore without calling on any foreign port. Some leisure crafts are doing the same, returning to Singapore without calling on foreign ports. The marine industry welcomes these changes.”
“I would like to ask a question. The Minister said that a lesson had been learnt from the flooding in Orchard Road. I cannot help but feel sad for shopkeepers in a certain building, Lucky Plaza. In fact, the news said that the Lucky Plaza is not so lucky. So, is there anything the Ministry can do for the building owners if flooding continues or is it another Ministry's responsibility? Assoc. Prof. Dr Yaacob Ibrahim: Sir, in fact after the incident of 16th June, we discussed with the Management of Lucky Plaza on what are the things that they can do in terms of flood alleviation measures. And, in fact, the PUB stands ready to advise any of these buildings that have been affected, on what are the measures that they can take and we are in constant contact with them. So it is really up to the Management to make the necessary decision. In fact, some of the condominiums affected earlier have already put up the measures, some have not, and we would continue to work with them to advise them on what is the best thing to do. In fact, MP Christopher de Souza has been actively working with his residents and we have been in touch with the condominium affected in his area on the things that they can do. We will work with the Land Transport Authority (LTA) to raise the road level and the hump level which is in front of the condominium so that we can alleviate the flood situation over there.”
“Thank you, Minister for the explanation. While we see world trade picking up with the economic recovery, the SMEs do not want to miss out on the opportunity. So I have three questions. One is that though it is under study, when can we expect such a scheme to start, ie, the time frame? What amount can the SMEs expect? Lastly, will the Government consider taking in any partners, whether local or foreign, into this scheme?”
“I am in the shipping line, and fully understand that sailing on the high seas requires the cooperation of not only the captain and the first mate, but also all sailors, working as a team. Only then can this huge vessel of Singapore sail bravely ahead! *Cols. 4175-4178. 5.00 pm Foreign workers”
“Currently, employers are very worried that with the tightening of the manpower policy, companies will encounter difficulties in recruiting foreign workers. If the foreign workers leave, employers fear that their foreign worker quota would also be revoked; they might also face difficulties in extending the work permits of existing workers. I would suggest that the Government allow companies, big or small, to renew or extend the work permits. Employers should be allowed to apply for new workers when the incumbent leave, as long as the quota is maintained. As for the skilled foreign workers, especially those who have worked in Singapore for a number of years and have become familiar with the Singapore lifestyle and environment, and have performed well, we should encourage them through different incentives or measures to become permanent residents or citizens. This could help us to increase the number of skilled local workers and avoid losing this pool of skilled workers. We would also like to learn from the experiences of other regions. In May this year, the SCCCI will be organising a business mission to Taiwan to study their SMEs, and their experience in increasing productivity. Thereafter, the Chamber will be organising more of such missions to other countries, to help our members identify new ways of raising productivity. I would like to thank the Government agencies, especially IE Singapore and SPRING Singapore, for supporting such activities. For a country to grow, we need all kinds of talent. The growth of any enterprise needs to have management, local workers and foreign workers working all together.”
“The renovation contractor has to consider using technology to resolve this manpower problem. Besides purchasing and installing automation equipment, he also needs to consider the design of the HDB corridors, lifts and car parks. This is not something they could resolve on their own. Singapore is working hard at creating a leading global city, but if we tighten the foreign workforce, this will have a great impact on industries such as construction and renovation. This would also affect the lifestyle of tens of thousands of Singapore households. In Parliament last week, I was very happy to hear Member Ong Ah Heng speaking up for the foreign workers and employers, stating the plight of the employers. The tripartite mutual understanding and cooperation is Singapore's strength. I hope that the new National Productivity and Continuing Education Council will engage unions and business leaders who understand the grassroots problems and practical situations to work out workable solutions. Employers are concerned that if the number of low-wage foreign workers is reduced, they would still be unable to recruit local workers for the same work, even if the wages are increased. By then, there would be no one to do the work, productivity would not be increased. We can imagine the consequences. In the past few years, there has been a rapid growth in the number of foreign workers, and they already constitute one-third of the Singapore workforce. The Government is gradually increasing the foreign worker levy, curbing the growth of foreign workers. We can understand and support this move. However, I also hope that the Government can maintain the current proportion of foreign workers.”
“[For vernacular speech, please refer to Appendix A*.] Madam, fellow Members of Parliament, a very good afternoon to everyone. Today, I would like to raise two suggestions concerning manpower shortage and foreign workers. First, we ought to acknowledge the contribution of foreign workers. Second, we hope that the current proportion of foreign workers in the workforce will remain unchanged. In the past half year or so, members of the public and press forums have been rather unfair to the foreign workers. In the call to raise productivity, foreign workers have either intentionally or unintentionally been regarded as being an unwelcome group and not worthy of being respected. They have left their respective countries of origin, and left behind their families to work in Singapore. It is not difficult to imagine what hardship they must have encountered. Although they are foreign workers, they have rendered valuable contributions to Singapore. Their presence fills a much-needed gap as they have taken up jobs shunned by local workers. Singapore's birth rate is very low. Unless we can add to the population by having more babies, the manpower shortage will only become more and more severe. According to a survey by the Singapore Chinese Chamber of Commerce and Industry (SCCI), 64% of employers have declared that the key reason of employing foreign workers is that locals are unwilling to take up backbreaking jobs. Take the renovation industry, for example. Not only do raw materials and debris need to be moved manually , but maintaining a clean environment also needs manual labour. Without foreign workers, the skilled workers would have to do this type of work themselves. This would increase costs, and be very unproductive.”
“He openly indicated that many people had advised him that the homework in Nanyang Primary School was very tough, the standard of Chinese was very profound, and the discipline in the school was very strict. Yet, it was precisely because of these attributes that he chose Nanyang Primary School. Being a parent myself, I can understand the worries and anxieties of some parents. The local universities require a pass in the Mother Tongue language for admission. This has indeed exerted great pressure on students who are weak in Chinese. I would like to suggest that for these minority students who are not so good in Chinese, but have scored distinctions in other subjects, the Universities could exercise their discretion in admitting them. While the whole world is bustling to learn Chinese, the standard of our Chinese education must be comprehensively raised. We need to cultivate some truly effectively bilingual talents who excel in listening, speaking, reading and writing both Chinese and English, and not just "half-baked" ones who are good in neither. In order to attain this target, besides the able leadership of the Government, the whole society must be united in creating a climate and an environment to learn Chinese. The people in China are making every effort to learn English, and the westerners are picking up Chinese enthusiastically. Singaporeans have no choice but to work harder if we want to maintain our competitive edge in bilingualism. *Cols. 3699-3702. Education vision and directions”
“Asking them to use English in the teaching of Chinese is like sending a Chinese physician to the operating theatre of a western hospital. It will undermine the efficiency and lower the morale of the practitioners. The biggest worry of the Chinese community is that the Government, in order to cater for the minority who is afraid of learning Chinese, will lower the standard of the teaching of Chinese again and again. In this way, we are going to lose the competitive edge of bilingualism and will eventually regret this decision. In promoting the Chinese language, the Chinese community and Business China have made many efforts. I hope that more political leaders; successful people and celebrities will speak more Mandarin in public. The Government departments should take the lead in raising the standard of Chinese in their official documents and notices. For example, in this region, Hong Kong and Singapore are constantly competing with each other and, at the same, learning from each other. The Hong Kong officials I meet from time to time, speak fluent English, beautiful Cantonese, and are now stepping up their efforts to learn Mandarin. Look at the Hong Kong people, very few complain that Mandarin is difficult to learn and, hence, refuse to learn it. If we do not buck up, very soon, their standard of Mandarin may well surpass ours. Many foreign talents migrate to Singapore because of the competitive edge of our bilingual system. The world-renowned investor, Jim Rogers is one of them. He has been to various countries in the world, but eventually chose to migrate to Singapore. He spared no effort in enrolling his daughter in Nanyang Primary School because he attached great importance to the school's educational standards.”