Thomas Chua Kee Seng
Singapore
“Thank you, Minister. I am very glad to notice that the A*STAR programme has attracted over 700 SMEs in 678 projects. I would like to ask what will happen after the researchers finish their two-year secondment. Will these projects be able to continue after the departure of the researchers?”
“Therefore, I suggest we undertake education with a broader perspective, and give more emphasis to the development of high-quality human resources, so as to promote the future development of our economy and businesses. Funding for Postgraduate Programmes 5.15 pm”
“Even if they do not expand overseas, they have a strong social function in creating employment opportunities, and I hope the Government would not ignore them. The Government can do even more to create a more favourable business environment for micro-enterprises and SMEs.”
“For companies with the intention to upgrade but are not from the ITM sectors, will they be treated differently from those from the key industries?”
“I also urge the Government agencies under the Ministry of Trade and Industry (MTI), namely, the Economic Development Board (EDB) and Enterprise Singapore (ESG), to continue to work closely with local industries.”
“Thank you, Deputy Speaker. I would like to ask: what has been the performance of the GIP funds that are set up to invest in Singapore-based companies so far?”
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“Madam, in Mandarin. (In Mandarin): [Please refer to Vernacular Speech.] Mdm Speaker, computers and websites bring us much convenience as well as elements of risk. The Government's amendment of CMCA would increase cybersecurity and is a very timely action. In May this year, the newly set up Smart Nation and Digital Government Office would strengthen cross-agency coordination and collaboration. The National University of Singapore will also provide data science training for 10,000 public servants, helping them to apply technology with ease and use data and digital tools more effectively. In the area of cyber usage and security, Government agencies have already accumulated a wealth of experience. In comparison, businesses' risk awareness and digital capability are obviously lacking. But in the cyberworld, enterprises can also become the target of cyberattacks. Hence, I hope that the Government could transfer their wealth of experience to companies and enable the professional digital training courses offered to public servants to be promoted and made available in the business community. We would urge companies to send their top management and core technical personnel to receive training and enable the public and private sectors to build a safety net of cybersecurity at the same time. At the same time, businesses which make use of digital technology must strengthen their cybersecurity awareness. For example, the National Trade Platform (NTP), which is being set up and will be operational in 2018, would allow enterprises and the Government to exchange information, help enterprises to lower their costs and simplify trade processes. In using this platform, companies' key digital data is also open to cyber risks.”
“Mdm Chairman, in Mandarin. (In Mandarin): [Please refer to Vernacular Speech.] Chairman, when implementing Government policies, blind spots often occur. However, problems will eventually be solved via effective communications between Government agencies and trade associations. Two years ago, during the Chamber's luncheon dialogue with representatives from the transport industry, the Singapore Motor Cycle Trade Association gave us the feedback that, as a result of the COE system, the quota for motorcycle COEs keeps being reduced. We realised that motorcycle buyers actually fall under two categories. One category of buyers use motorcycles to make a living. The other category of buyers use motorcycles for leisure activities. With a smaller quota, the COE would be driven up, and the impact would be acutely felt by those who depend on motorcycles for their livelihood. The Singapore Motor Cycle Trade Association provided this feedback to Land Transport Authority, and SCCCI also helped to lobby by adding our views. In this year's Budget, Minister Heng Swee Keat announced that the contribution of motorcycle COE quota to open category COE quota would cease, to address the problem of a decline in quota. LTA also announced that it would continue to seek feedback from the industry and public, so that the COE system could meet the demands of the population at large more equitably. This case study shows that LTA has responded promptly to industry feedback and helped to solve their problems. SCCCI also engages in similar channels of communication with other Government agencies and, moving ahead, will help even more trade associations to provide constructive industry-related views. Commercial Goods Vehicles”
“With compulsory membership in industry associations, both large enterprises and SMEs are thrust together in the same boat. They move forward together, united as one. With sound financial foundations and deep insights into the industry, trade associations would be able to tackle the pains of economic restructuring in a timely manner and with greater accuracy. This is also one of the reasons why the German manufacturing industry can remain strong all this time. Taking a leaf from the German experience, I suggest that ITEs and polytechnics work together on a win-win basis to strengthen collaboration with trade associations. I hope the Government could authorise trade associations to conduct even more vocational skills training courses. This would constitute another milestone, bringing the national education system more in step with a transforming era. Measuring Outcomes in Higher Education”
“[Please refer to Vernacular Speech.] Mdm Chairman, a good vocational education is an important foundation of Singapore's economic development. Over the past 50 years or so, our educational system has undergone perpetual adjustments in line with changes. Now, the Singapore economy is experiencing a major transformation once again. This leads us to ponder over how the educational organisations could support industry transformation. Last year, when the Singapore Chinese Chamber of Commerce and Industry (SCCCI) organised the Trade Association Congress, we invited a business leader from a German Chamber of Commerce as one of our guest speakers. This friend briefed us on the operational model and experiences of German trade associations. It was really an eye-opener. In the area of vocational education, the German industry associations play a powerful role. Firstly, all companies are required by law to join industry associations, hence giving industry associations sufficient critical mass and influence. Industry associations are also invested with much authority. They provide practical vocational training, with a key focus on grooming specialised technical personnel. Certificates issued by industry associations are recognised by society and become important references in the recruitment of workers. Like Singapore, SMEs make up 99% of all business entities in Germany. The government is responsible for basic education and tertiary education, while the industry associations cater to vocational education and worker training. At the same time, the government also provides requisite funding to industry associations. People always rave about that German workers are well-trained and, in this regard, the industry associations have contributed a great deal.”
“They should not digitalise for the sake of doing so. The Budget has already announced certain sectors which will receive support first, including retail, food services, logistics and so on. Everyone must work together, relying on the capacity of the SME Technology Hub and leveraging the assistance of the "SMEs Go Digital Programme", so that they may discover the benefits of digitalisation.”
“But the other challenge of promoting digitalisation is how to apply a standardised system to improve the effectiveness of the whole industry. In the interconnected Internet world, companies need to plug into a collaborative network. The effectiveness of digital technology could only be evident if the system is compatible with that of your customers, suppliers and partners. If not, the transfer of large masses of data could cause system errors. Such programming defects that occur willy-nilly could frustrate SMEs and make them lose faith. Applying a standardised system for the industry is likened to learning a common language to facilitate communication. Recently, many food and beverage (F&B) establishments are using the electronic menu ordering system. Customers who frequent different restaurants first need to study how to use their systems. After being accustomed to Restaurant A's system, you need to start over again with Restaurant B. Starting from the menu selection, serving of food to paying the bill, the entire process is fully automated. Businesses could even use the data captured to analyse which dishes are the most popular and decide on the quantity of ingredients to purchase. These are all advantages. But from a deeper perspective, if every restaurant uses its own system, we could never standardise the employee training curriculum. Moreover, whether customers can get used to the system would determine their continued patronage. If F&B players use a common system, the entire process of customer acceptance could be accelerated. This simple example allows me to clarify that in the journey of digitalisation, TAs and industry associations must consider the big picture of the whole industry, including problems which may be encountered by related industries.”
“[Please refer to Vernacular Speech.] Chairman, the Government has announced that 10,000 civil servants will be trained up in digital capabilities to better support innovation and cultivate the entrepreneurial spirit. Taking this lead is an excellent initiative. Today, the topic I wish to discuss is how to drive SMEs' digitalisation. Firstly, the Singapore Chinese Chamber of Commerce and Industry (SCCCI) welcomes the "SMEs Go Digital Programme", and we shall be actively helping SMEs to adopt digital technology. Later this month, the Chamber's office will be relocating to the Trade Association (TA) Hub in Jurong East. More than 20 TAs will come on board with us. The TA Hub will be the base from which we shall be promoting the digitalisation of enterprises. We have specially set up the TA Committee to help industry associations integrate resources, improve capabilities, promote collaboration amongst TAs, build up partnership relations and provide a platform to channel feedback to Government agencies. One of the important areas of the TA Committee's work is to help local enterprises go digital. For many years now, the Chamber and IMDA have worked closely together to help SMEs adopt infocomm technology (IT) and promote the Increase SME Productivity with Infocomm Adoption and Transformation (iSPRINT) initiative. This has helped us to accumulate valuable experiences. This time, we hope to continue to work closely with IMDA to drive the "SMEs Go Digital Programme" in a big way. Making digitalisation a reality involves two factors: one is system and the other is workers. SCCCI's subsidiary, the Singapore Chinese Chamber Institute of Business, will be doing its best to help TAs train their workers.”
“The Government has already done much in the area of training. Last year, it allocated $37 million to training programmes under the SkillsFuture Credit. However, only 6% out of those eligible had utilised these funds. May I ask the Minister for the reason behind this low take-up rate? Besides, the unemployed claim they cannot find jobs, while businesses perpetually say they cannot find workers. How should we solve this? For many years now, the Workforce Development Agency and now SkillsFuture Singapore (SSG), has been working closely with the Singapore Chinese Chamber of Commerce and Industry, helping many working people to upgrade their skills. Going forward, we will continue to work with even more trade associations and industry associations to design training courses based on practical needs. As long as companies are supportive and employees who attend courses benefit from them, skills upgrading would form a trend, the quality of our entire workforce would be upgraded accordingly. Employment and Quality of Jobs”
“Madam, in Mandarin, please. (In Mandarin): [Please refer to Vernacular Speech.] Chairman, Chinese characters always contain deep insights. In the character "企" which stands for "enterprise", it is made up of "人" or "people" on top, while the bottom part consists of "止" which means "cease", In other words, when there are people, there will be enterprises; if there are no people, then everything would come to a standstill. Currently, our workforce is saddled with two big challenges; the first being an ageing population, with the growth in the workforce shrinking every year; the second is the restructuring economy, bringing about changes to the labour force structure and skills. The ageing population and low fertility rate has forced enterprises to leverage on technology to lessen the reliance on manual labour. While technology could improve productivity, workers need to be trained to use new technology. For the older workers in particular, they need to make greater adjustments to attitude and mindset to cope with the demands of new skills. Now, even the Government is encouraging civil servants to pick up digital technology. This is an outcome arising from the current environment. Economic transformation has created structural unemployment. Some industries would gradually vanish, while some new industries would emerge. The workforce needs to change its knowledge, skills and concept as quickly as possible in response to this transforming environment, and restructure, making the shift to new industries according to market needs. It is impossible to solve the current manpower shortage in the short term. We need to treasure every person. As far as possible, we need to cater to society's needs, starting from basic education all the way to continuing education.”
“Last month, Minister S Iswaran and his team came for a dialogue at the SCCCI; it was attended by trade association leaders and business representatives from more than 20 industries. Both sides engaged in a candid discussion. We discovered that businesses still have certain misunderstandings on how to tackle specific operational details. Moving ahead, we should organise more sessions for trade associations and industry associations to establish better communication with Government officials, bringing these misunderstandings to a minimum. Improving the competitiveness of local enterprises is our common objective. In order for this objective to be achieved, the Government charts policies and offers resources; trade associations participate and provide useful suggestions; enterprises and entrepreneurs, however, assume the most important role. Innovation and internationalisation basically call for a departure from one's comfort zone, the boldness to try out new things and, in the process, seek perfection. This is where enterprises cannot totally rely on external sources of strength but on individual hard work. Transforming SMEs”
“We hope that A*STAR could work with the trade associations to develop technology applications that could be shared with certain industries. Making the benefits accessible to a wider group would assuredly be a more effective way of encouraging technology adoption. With regard to internationalisation, the Government has committed a $600 million International Partnership Fund to help local enterprises invest in overseas markets. Normally, most funds pursue short-term returns. I hope that this International Partnership Fund would cast its sights for returns over a longer 10-year period or beyond that. Local enterprises which venture abroad to form joint ventures in other countries or tender for projects, need to gear up on sufficient project experience. In November last year, I led a business mission to Myanmar and we were warmly received by the Myanmar Chinese Chamber of Commerce. The Myanmar government also invited us to invest in their infrastructure projects. One of our delegates, who runs a local construction firm, said: "If we could clinch a substantial project in Singapore, this would give us greater confidence to bid for overseas projects." In order to boost the construction sector, the Government is bringing forward $700 million worth of public sector infrastructure projects. The Government must allow local SMEs to participate in these projects and have the opportunity to become main contractors. Singapore SMEs which work with Government-linked companies and MNCs could gain in experience, improve on standards and chalk up a creditable track record. This could raise their competitiveness in the global marketplace. This, in fact, is the most effective way to help local enterprises internationalise.”
“Chairman, in Mandarin. (In Mandarin): [Please refer to Vernacular Speech.] This year's Budget has placed key focus on innovation and internationalisation in the future economy. The saying goes: A thousand-mile journey begins with the first step. With clear direction, the next step is to achieve this in the fastest way possible. With regard to innovation capability, let us first look at what SMEs have done. Last year, the Singapore Chinese Chamber of Commerce and Industry (SCCCI) conducted a survey on innovation efforts of enterprises. A total of 233 enterprises took part, with SMEs making up 98.8% of respondents. Survey findings revealed that as investing in innovation may not lead to actual outcomes, less than one-third of respondents had invested in innovation over the past two to three years. Moreover, only 15% collaborated with public research institutes. SMEs have a shortage of talent. Very few are able to recruit researchers to handle R&D. If they wish to improve their innovation capability, they need to strengthen the collaboration with research institutes. Moving on, we urge more local enterprises to leverage the Government's research resources. Technology innovation is not a matter of difficulty, but the crux is whether there are practical applications. The Budget announced that A*STAR is scaling up on the Operation and Technology Road-mapping initiative, to support 400 companies over the next four years. In other words, assistance would be forthcoming to 100 companies every year. Currently, Singapore has more than 188,000 SMEs. This is an astronomical figure, compared to the 100 companies that would get relevant assistance within a year.”
“Everyone should come together to think of ways to revive and promote the Singapore spirit, a spirit which has steered Singapore into success in the nation-building days, to overcome adversity and head towards success!”
“We should avoid "being blinded by group-think". Here, I am quoting Minister Chan Chun Sing. Externally, there is a protectionist wave emerging globally, and the wave is becoming increasingly stronger. Hence, we should prepare ourselves to address this adversity. Given the unpredictability of the external environment, not increasing business costs, maintaining Singapore companies' competitiveness, strengthening the profitability of companies would mean increasing the national revenue. Mdm Speaker, adversity is not to be afraid. Compared to more than 50 years ago, Singapore is, overall, much stronger. We have advanced infrastructure, top-class port and airport, and an extensive network of undersea cables and a comprehensive financial, legal and education system. Many MNCs have set up their regional headquarters in Singapore. Our own companies should also use Singapore as their regional headquarters and venture overseas boldly. The Government should give support to those local companies which have the gumption and are willing to do so, be they traditional industries or emerging industries. No one should be left behind. I hope the Government would do its best to reduce business costs. At the same time, businesses should also review the internal factors which could contribute to their operational problems to see whether it is their product quality and service standards that are not up to the mark, or it is their business model that is outdated. During this economic transformation period, companies, especially chambers and trade associations, should play a more proactive role. They should work closely with the Government, based on their industry's specific circumstances.”
“At the same time, businesses also hope that the Government could apply a new mindset to plan its expenditures. Going forward, there are still many areas that need expenditure, such as social development, healthcare, environmental protection, defence and foreign affairs. In order to increase revenue, the Government is likely to continue to adjust other taxes. Let us look at some numbers. In 2011, the Government's total expenditure was $46.6 billion, and by 2017 it had increased to $75.1 billion, which is more than 60%. Government revenue comes from two sources, one is taxes and fees, and the other is the Government's investment returns. The economic outlook will not be rosy in the days ahead. If businesses cannot raise their competitiveness and increase their profits, tax revenues will not increase. Similarly, the Government's investments are inextricably linked to the economic situation. If the economy is weak, there would be no magical formula to turn stone into gold. Two idioms come to my mind. One is "broaden the sources of income and cut costs" and the other is "live within our means". The meaning of the first idiom is to increase income and save on spending; the second idiom means to spend based on one's income. As the saying goes, "If a man has nothing to worry about in the long-term, he will definitely have something in the short-term to worry about." We have domestic and external factors to consider. The domestic factor is that for many years now, we keep increasing the budget on certain areas, but the results cannot be seen. Now, should we not begin to review if this is the right way of spending? Just because it was correct before does not mean it is correct now. Our thinking should not be based on what we are used to.”
“Mdm Speaker, in Mandarin. (In Mandarin): [Please refer to Vernacular Speech.] Mdm Speaker, Members of Parliament, good afternoon! Today, my topic is, "Successfully transforming the Singapore economy amidst adversity". To complement the CFE's mid- and long-term strategies, this year's Budget has unveiled some concrete solutions, centred on innovation, digital economy and internationalisation to build up Singapore's mid- to long-term core competitiveness. This is a far-sighted approach. After the Budget Statement, as President of SCCCI, I have heard many feedback from businesses. They are more concerned about short-term measures. After the Government announced the increase of water tariff and diesel tax, some related industries immediately felt the impact. Water cost affects millions of users and would have an impact on every industry. The Government has decided to raise water tariffs to ensure the sustainability of our supply and to defray the costs of building NEWater and desalination plants, as well as the operational cost of water supply. But businesses feel that infrastructure is part of public service and the Government should not compute this on a commercial basis. The major concern of businesses is operating costs, while the Government's concern is the nation's mid- to long-term competitiveness. How to strike a balance can be challenging. Currently, Singapore's external business environment is changing. Countries which were previously more advanced than we were, are now becoming less expensive; countries which were less expensive than us, have become more advanced. Our Singapore companies have to innovate in order to adapt to this new business environment. The Government encourages companies to innovate and internationalise. This is the right approach.”
“Driverless car technologies may solve the problem of manpower shortage in the future and private car booking services may provide more choices to consumers. However, we also need to consider the livelihood of taxi drivers. They rely on driving taxis to support their families. Many older people may find it difficult to make a career switch. These are all practical issues. The market is ever-changing. I hope that Government agencies can engage in close communication with the related industry players, especially innovative companies, so as to understand the unique nature of the industry, adopt the right approach, respect the market and exercise appropriate control. Recently, Uber in Taiwan has announced suspending their services after being heavily fined by Taiwan's Transport Ministry. In Taiwan, Uber was registered as an IT service provider but the authorities thought it belonged to the transport industry. The two sides were not able to arrive at a common understanding in terms of oversight. In this real-life scenario, Uber lost out, the government also did not win, but most unfortunate of all is that commuters have lost a convenient mode of transport. Mdm Speaker, when facing innovation, the Government has to monitor it effectively. On one hand, it should take care of consumers' interest and, on the other hand, give space for innovation to grow. Only then can the policy be considered an ideal one. 5.55 pm”
“Traditional taxi services are now facing very intense competition. Private hire car booking services are flexible and convenient. From being disgruntled in the beginning, taxi drivers are gradually getting used to this new model. In order to get more business, many of them have joined the online taxi booking platforms. In Singapore, Uber and Grab have done exceedingly well. Many users commend on the convenience of their services; but some have reacted negatively. Convenience lies in people now having a choice between private hire cars and taxis and a higher chance of getting a ride. Grouses come from the fact that the drivers come from various backgrounds and they may be unfamiliar with the roads and lack relevant experience. Passengers, hence, may face a higher risk. Some drivers, in fact, are using their regular working hours to earn a quick buck! Moreover, plying the same route and using the same booking app, the fares charged by private hire cars are much higher than taxis during peak periods. Taxi drivers find this grossly unfair, as too many people are vying for their business and affecting their livelihood. This is a microcosm of times of change. New technologies and business models pose a challenge to traditional industries, forcing everyone to change. But in the process of change, social divisions of labour are also changing. Some positions will gradually vanish and the affected workers will have to look for new occupations. Amending the Road Traffic Act will enable emerging transport services to be safer and more reliable. At the same time, I would also like to urge the relevant agencies to safeguard the interest of the current industry players during this transformation period.”
“Madam, in Mandarin, please. (In Mandarin): [Please refer to Vernacular Speech.] Mdm Speaker, MOT has set out to amend the Bill to encourage innovation as well as to regulate industry players. I agree wholeheartedly. In recent years, the transport industry has changed drastically with technology innovations and new business models. Any new development is bound to bring opportunities and challenges. And the Government's role, while encouraging innovation and promoting industry development, is to protect consumers' interest and safeguard the rights of related industry players. For instance, Singapore was the first in the world to test-drive driverless taxis within the city area, and was thus a market leader. The innovative company picked Singapore for its test drive because of our well-established infrastructure and because drivers and pedestrians observe traffic rules. Last October, during its test drive, a driverless taxi collided with a lorry. Fortunately, no one was hurt. Moving forward, similar accidents may continue to occur. Hence, it is essential for the Government to amend the Road Traffic Act to ensure the safety of the people involved in the test drives and the road users, as well as reduce the accident rate. These amendments will also provide a good example on how to monitor disruptive and innovative technologies in the future. The emergence and the popularity of new technologies will no doubt disrupt original industry practices; be it innovative technologies or new business models, they will upset the social equilibrium. Transport services affect millions of users. Hence, the Government must protect the public interest first when monitoring the industry. In terms of innovative business models, there has been a great breakthrough in the transport industry.”
“I believe that gold will always shine and talent will always obtain trust. However, as the issue pertains to the population at large, they do need time to understand the candidates. Mdm Speaker, with regard to the Elected President system, the Singapore Chinese Chamber of Commerce and Industry (SCCCI), the Singapore Malay Chamber of Commerce and Industry (SMCCI) and the Singapore Indian Chamber of Commerce and Industry (SICCI) have arrived at a consensus. We feel that meritocracy and multiracialism are the two pillars of Singapore's success. Singapore's style of government has been tried and tested over the years. The business community is most concerned about social stability and racial harmony; only then can economic growth be ensured. Hence, I support the amendment to the Presidential Elections Bill and hope that it can be refined continuously.”
“During the last Presidential election, I took a taxi to the airport. On the way, the taxi driver said something which has left a deep impression on me. He said, "The President has to represent Singapore to meet leaders of different countries and his photograph will be hanging on the wall for five years. His wife's photograph will also be displayed for five years. Thus, we cannot make a hasty decision. We must elect someone who is pleasing to the eye." While this may sound simplistic, it does reflect the views of the general public towards the Presidential election. Presidential elections and Parliamentary elections are very different. Many of the candidates who run for General Elections have served in the grassroots for a long time and have had direct interactions with the voters. Some newer candidates have also been mentored by senior Members of Parliament (MPs) and have an all-rounded understanding of the roles, responsibilities and the working process. The number of MPs is large and they are from diverse backgrounds as well, enabling them to get the support from voters of different backgrounds. However, there is only one President. Moreover, for the coming election, the candidates can only be a Malay. If the election period is short, many may not be interested in the election because they are not familiar with the background of the candidates. Whether the President can command the respect and admiration of all Singaporeans and can unite Singaporeans to forge a better tomorrow, could be a question mark. Hence, I suggest that due to the unique nature of the next Presidential election, the nomination and election period should be extended, allowing more people to understand the background of the candidates.”
“To include in the Committee young people with stable values, who are conversant with Internet technology and have an interest in social issues, will enable their views to wield more influence in every sector of society and in the new media. As for the other criteria for members of the Committee, I hope the Prime Minister's Office (PMO) will consolidate the feedback from the community at large before deciding on a complete set of criteria. Second, interracial marriages. Singapore is a multiracial society. Interracial marriages and bringing in new immigrants will bring about ethnic integration. This is a good thing. Winning the respect of the community depends on one's character and behaviour. If there is an outstanding individual who has superlative abilities and is willing to serve the society, even if his or her parents are of different ethnic groups, surely both communities will be proud of him or her. Likewise, if a person has reprehensible character and conduct, no group will find him acceptable. We have to pay attention to the selection process of the Presidential candidates. Besides ethnicity, character and capability are even more important. Thus, should there be any candidates originating from interracial background participating in the next presidential election, I hope the Committee could give careful considerations when confirming the community that they belong to, to avoid losing talents. The third suggestion is to extend the nomination and campaign period. From our first elected President Mr Wee Kim Wee onwards, none of our five Presidents was a Malay. Hence, the next Presidential election will be reserved for Malay candidates. Being a Chinese, I am not familiar with developments within the Malay community and there are many Chinese voters like myself.”
“[Please refer to Vernacular Speech.] Mdm Speaker, the President is the symbol of our country and has to unite all Singaporeans regardless of race, language or religion, working together for the country's prosperity and progress. I have three suggestions with regard to the amendments to the Presidential Elections Bill. First, regarding the neutrality and fairness of the selection process. New conditions have been included in the eligibility criteria, including the ethnic Chinese, all candidates need to submit a community declaration to a 16-member Community Committee, and they can only be considered eligible for an election after their ethnicity has been confirmed. The 16 individuals are the so-called inspectors during the election process. Hence, the selection of the committee members should be done with great care. Notwithstanding their ethnicity, these 16 individuals must be equipped with fundamental qualities, such as values, character, capabilities and, especially, good standing in their particular ethnic community. Ideally, they should not belong to any political party; some should have served a long time in community organisations or business chambers. They should be familiar with social matters and have opportunities to interact with people from various backgrounds and have a wealth of experience in community engagement. They should belong to different age groups and should have young people among them. New media is now predominant, and the presentation and rules of the game vary greatly between the real world and the virtual world.”
“It gave the board more confidence in making long-term development plans. There are many other charitable hospitals of this kind. Motivated by passion, regardless of race or religion, they provide long-term nursing care for the elderly and the more vulnerable groups of people, and demonstrate the merits of an inclusive society. I am really pleased to note the Government's support for KWSH. With our rapidly ageing population, more and more elderly people require care. KWSH is in the process of trying out something new, to help the elderly grow old amidst familiar surroundings. This is a worthwhile experience to promote. With the joint effort of the Government and the private sector, KWSH will enter a new phase of development. MOH gives great support to the hospital in terms of its policies and regulations, while the hospital's management team will be unified in dedicating financial resources and energy in the expansion. This spirit of moving ahead with the times is exemplary and should be emulated by many social groupings and charitable organisations. The operational capital of these charitable hospitals relies on donations from society, and I earnestly hope that every member of society could continue to support the hospital. This successful experience could be replicated in other areas. Due to changed circumstances, the original objective behind establishing many civic organisations has changed significantly. In particular, for some trade associations, the entire industry has to undergo restructuring. I hope that more Government agencies and trade associations could be inspired by the example of KWSH and enable more moving stories to be written.”
“Madam, in Chinese. (In Mandarin): [Please refer to Vernacular Speech.] Mdm Speaker, the KWSH was established in 1910 and already has 106 years of history. MOH supports the hospital in moving in step with the times, to abolish those antiquated regulations and to widen the scope of its charitable affairs, hence, raising the Bill for the transfer of undertaking and dissolution. I support this move. KWSH provides affordable healthcare services to those with chronic conditions regardless of race or religion, supplements the Government's healthcare policy and is an important charitable organisation in the private sector. During the colonial times, a group of Cantonese businessmen founded KWSH. They provided free hospitalisation and clinical consultation for Cantonese immigrants and looked after the poor and needy clansmen. Although 100 years have gone by, times have changed and Singapore has already gained Independence for more than 50 years, the content of this legislation had never been amended. I met up with Mr Patrick Lee, Chairman of KWSH, and its senior management to get a better understanding of the situation. After listening to them, I was deeply moved. Actually, from 1974 onwards, KWSH has already provided healthcare services for Singaporeans of all races; the hospital has also established an inpatient centre, rehabilitation centre and community hospitals to look after the needs of low-income elderly patients. Being a large IPC, the hospital's operations have already fulfilled the conditions required of an IPC. After the expiry of Kwong Wai Shiu's land lease in 2010, the Urban Redevelopment Authority and the hospital authorities came together for an earnest discussion and came to an amicable solution of letting it remain at the original location.”
“In fact, if the bosses treat their elderly workers well in the long term, it also becomes a form of encouragement to younger employees. If they see this being practised in the company, the younger employees would have greater confidence in the company and give them a greater sense of belonging. A wise boss should know this. Extending the re-employment age by two years does not mean that all older workers would be able to work for another two years, especially in this critical period of economic restructuring where some positions which were suitable for older workers may become obsolete. Those businesses which are in the process of restructuring, especially those in traditional industries, need to think of ways to adapt to new business environments. From the viewpoint of economic development, the Government encourages enterprises to innovate and bring in new technology to create more benefits. From the viewpoint of social development, the Government requests enterprises to take care of the older workers and arrange for suitable positions for them. But at the same time, the Government needs to be aware that business costs are rapidly rising and understand the predicament of businesses. Our trade growth will continue to remain weak. Under these economic situations, it is very difficult for companies to seek growth. More companies are struggling to survive and are trying very hard to transform. Thus, I hope that when the Government rolls out its policies, Ministries should be even better coordinated and make policies more relevant.”
“On the other hand, we need to consider the situation of older workers, who may not be able to adapt immediately to technology which is too advanced, or methods which are too trendy. The company's capital is a pool, and if there is some outflow here and there, and no water flows in, the pool of water would be reduced. The ideal scenario is to have some outflow but balanced by some inflow, and maintaining that level of water could then ensure normal operations. In this regard, can businessmen expect the Government to reduce other costs, like the foreign worker levy, the Certificate of Entitlement for commercial vehicles or, as the Member has just mentioned, offer more tax rebates to bring down their newly-added expenses? In the past, the Government had introduced wage credit schemes to lighten companies' burdens. However, we all know that legislations are there forever, they are permanent; but schemes are temporary. A company can only look after its older workers well if the company is functioning well. Singapore companies are already learning to adapt to this new type of human resource (HR) structure. The company's workforce should comprise the old, middle-aged and young; each age group has its special qualities and everyone's value should be appreciated. For example, when female employees go on maternity leave, and the male employees go for reservist training, perhaps the older workers who have been trained could help to hold the fort and help to share the workload. Employers can see that. In my company, the oldest worker was 80 years old, who carried on working until he passed on two years ago. When we arrange his work, we do not expect him to exert himself, but he won the respect of colleagues from his experience and attitude.”
“Mr Deputy Speaker, Sir, in Mandarin. (In Mandarin): [Please refer to Vernacular Speech.] Mr Deputy Speaker, Sir, from 1 July 2017, the Retirement and Re-employment Act will take effect, with the re-employment age being extended from 65 to 67. MOM is amending the legislation and requesting employers to shoulder more responsibilities. As an employer, I support the amendment of this Bill. However, from the perspective of an employer, I also wish to voice some of my opinions. Singapore's population is gradually ageing and extending the re-employment age is a major trend. Older workers have a wealth of experience and, if their health conditions permit, could remain in their positions. This is good for the company and for the individual. However, we also need to understand their limitations; in particular, during the current volatile business environment, many industries are restructuring, and the Government is also encouraging businessmen to improve their productivity and lessen the reliance on workers. Under these circumstances, the Government is requesting employers to arrange for a position for a 62-year-old employee to work until 67, even if there is no position available. If no position can be found, the employer has to offer a substantial amount of EAP or help the employee get a job at another company. Frankly speaking, the Government's new request and the direction for the last few years are clearly not on the same frequency. People aged around 65 are the baby-boomers and constitute a substantial number. Before 1 July 2017, enterprises need to do proper financial planning. Restructuring requires the redesign of new workflows. On one hand, we need to raise productivity.”
“Hence, I hope that when the Government decides to stipulate related legislation in the future, it could strike a balance between maintaining an active market and strengthening governance. An over-regulated system could produce the "hairy-crab effect" of constraining the markets. The desire to achieve a balance between financial innovation and effective governance is a tall order and a real test of management wisdom.”
“Amending the Bill would define more clearly the conditions for retail investors and institutional investors; only part of the property value can be included as part of their personal assets. This would bring up the threshold for the retail investors and safeguard their interests. The second reason is that the amendment of the Bill would widen the scope of governance and ensure that transactions are properly regulated. In recent years, some "non-conventional investment products" have become increasingly popular, like precious metals, red wine, land banking and so on. Prior to the amendment, with the exception of collective investments, these non-conventional investment products do not come under the purview of MAS. In order to avoid coming under MAS regulation, some market players have become very creative and restructured their products. Once the amendments are enacted, all investment products would come under the purview of MAS. This is a very good move. However, besides these two points, I still have some reservations. Overly strict controls may make the financial markets stagnate. A prosperous and lively market has to have some element of risk. How could the Government achieve a balance between the two? For example, small and medium enterprises (SMEs) always encounter problems of financing. There is a new financing method called crowdfunding, which could provide capital for SMEs and startup companies. Earlier on, MAS has already issued new guidelines to improve access to these new platforms, enabling SMEs and startups to raise capital more easily. After amending the Securities and Futures Act, this could hamper such new funding channels.”
“Madam, in Mandarin. (In Mandarin): [Please refer to Vernacular Speech.] Mdm Speaker, I support the Securities and Futures (Amendment) Bill, mainly for two reasons. Firstly, the amendment to the Securities and Futures Bill safeguards the investors' interests. Recently, I read a newspaper article in Lianhe Wanbao, and the headline is, "Sleepless Nights for elderly couple who lose $30,000". An elderly retired couple attended an investment talk and forked out $10,000 to buy bonds. The other party promised they would get back their principal plus 10% interest within a year. However, when the bond matured, they did not get their principal back. This elderly couple has been suffering from insomnia because they would also lose their further investment of $20,000 in bonds which are about to mature. This is by no means an isolated case, as there are many other similar stories. There are so many types of financial products in the market now and many seniors hope to retire comfortably using these avenues of wealth management, but not all investors are savvy enough or equipped with the necessary knowledge to evaluate the risks and the merits of a financial product. The sales executives tend to be glib and persuasive and those with no investment experience can be easily misled. Based on the current legislation, investors' risk category is defined according to their financial assets, including the value of their properties. For instance, some investors may have financial assets of $2 million, but this is mainly in property, with very little in cash. Once the investment fails, practically everything is wiped out, bringing their quality of life under jeopardy.”
“CPF is very important to social harmony and stability, and, therefore, the tripartite partners need to review this earnestly. The Government needs to reflect on the reasons behind the public discontent and decide whether it needs to increase management transparency. Employers have to make timely contributions to CPF to ensure peace of mind for their employees to do their work. Employees should also not forget that CPF was set up to provide for their old age. Most of all, every good system needs to be time-tested. Having said this, I feel that amendments to the CPF Act should be handled with extreme prudence. 4.49 pm”
“From a business standpoint, we hope that our employees work very hard when they are young and that they could enjoy their twilight years after retirement. We do not wish to see our employees liberally use CPF funds to invest, and have this affect their mood and work should they suffer investment losses. The second principle is that CPF is part of the worker's salary. Every worker needs to contribute CPF; the employer has to contribute CPF on behalf of his workers, too. Hence, whether you are a local employer or an overseas investor, CPF contributions should always be taken into account when computing business overheads. I recall this saying: "The man without thought for the future will surely have trouble close at hand." Presently, Singapore is feeling the impact of a rapidly ageing population. If we introduce more flexibility into managing CPF funds and allow people to use their CPF funds for other investment purposes, they may even withdraw their CPF funds completely and spend them when they reach a certain age. If the elderly lose their means of financial protection which, in turn, affects social stability, this deviates from the original intention of setting up the CPF scheme. We need money to sustain our livelihood as we age. However, due to inflation, some elderly people who have reached retirement age have insufficient funds in their CPF to maintain their basic living expenses. They have no choice but to continue working to avoid losing the source of income. This phenomenon should be brought to the attention of the public at large. Of late, disputes on CPF have become very frequent. This is natural. Times have changed. Singaporeans have become more educated. Everyone is expressing concern about the CPF system and safeguards for the elderly. This is a good thing.”
“Madam, in Mandarin. (In Mandarin): [Please refer to Vernacular Speech.] Mdm Speaker, the CPF system is Singapore's important social security foundation. It has been successfully operating for more than 60 years. In order to ensure that this system keeps pace with changes, and continue to function effectively, I believe it is necessary to make amendments to the CPF Act. However, we need to take note of two fundamental principles in making amendments to the system. Firstly, CPF is a retirement scheme which addresses housing, healthcare and children's education needs. Essentially, it safeguards the quality of the lifestyle of an individual and that of the household. From this perspective, CPF has to adopt a proper and stable management model that is not easily vulnerable to risks. It is commonly said that "Investment always carries risks and one needs to proceed with caution." There is no business that only earns profits and suffers no losses. Even the most savvy investor may plunge into losses in a volatile and uncertain market. In July this year, Temasek Holdings announced that in the 2016 financial year, shareholder returns came in at a negative 9%, stirring up much public debate. But looking at the 10-year period, Temasek still performs very well Page: 54 overall. Investment is a specialised area of expertise. If even Temasek with its very professional team of researchers could also end up with losses, we cannot expect the small everyday investor to remain unscathed. Thus, it is critical for the investment of CPF monies to be handled with extreme caution, as this would have a great impact on retirement plans and social stability.”
“Through restructuring the Government agencies, getting IMDA to coordinate the infocommunications for the public and private sectors and digital media applications, this could hopefully be an instrumental change to improve Singapore's overall information and communications (ICT) applications for business. Getting one Government agency to handle overall coordination in a particular area to improve efficiency and delivery levels has seen successful precedents. I sincerely hope that IMDA could drive the entire industry development. At the same time, I hope that IMDA and GovTech could work closely together, sharing resources, thereby bringing the advancements and experience of e-Government into the business arena. They should not work in silos just because they are different Government agencies. In the eyes of the people, there is only one Government, bound together for good or ill. It is essential to strengthen mutual coordination and synergies in order to achieve prosperity for the nation and for society.”
“Mr Deputy Speaker, Sir, in Mandarin. (In Mandarin): [Please refer to Vernacular Speech.] Mr Deputy Speaker, IDA and MDA will be re-organised as IMDA and GovTech, and I support this restructuring which aligns with the development of the environment. Moving ahead, the two agencies will have two distinct roles. IMDA will serve the public at large and the private sector, while the GovTech will focus on the public sector. The restructuring of these two agencies reflects the industry developments. Emerging technologies are promoting cross-border collaboration; the interaction between different areas and different industries opens up new opportunities and business models. Businesses should pay attention to these trends and break out of traditional mindsets and concept in order to be more aligned with clients and markets. Singapore's e-Government capabilities have been consistently ranked among the top in the world. However, the development of e-commerce lags far behind that of e-Government. According to the Global Information Technology Report 2016, our e-Government services rank No 2 globally, but we only rank 24 in business-to-consumer Internet use, with capacity for innovation ranking 19. Page: 119 The disparity in these statistics evidently show us that Singapore's IT standards are unquestionable, and that e-Government applications have become very successful, but somehow the development of e-business did not keep up with that of e-Government. Actually, Singapore has already achieved very high standards of infrastructure and application frameworks in the e-Government space. The challenges we need to overcome are how to bring this into the business arena and let businesses leverage existing Government resources.”
“However, if PMETs and employers can work together cordially, enterprises do not need to waste time and energy to address these conflicts, which only ends up aggravating the situation. I also have some concerns regarding the salary-related claims to be handled by the ECT. Within the company, any personnel changes, including promotions, demotions, organisational restructuring, performance appraisals, retrenchments, resignations, and other management issues, are all eventually salary-related. How does one then differentiate between standard HR adjustments and unreasonable salary conflicts? Such cases should be carefully dealt with at the ECT, to avoid being abused by employees.”
“Mr Deputy Speaker, in Mandarin. (In Mandarin): [Please refer to Vernacular Speech.] Mr Deputy Speaker, first I would like to declare that I am an employer. Setting up the ECT to settle conflicts between PMETs and employers is a good move. However, conflicts only need to be settled because there are conflicts. We hope that employers and employees could find a way to smoothen their communication channels to avoid unnecessary conflict. After this Bill has been passed, employers have to step up on their knowledge in this. Some SMEs have no HR departments, and the work of HR s is usually handled by the Administration Department, or personally taken charge of by the boss himself. PMETs will be implicated under the new legislation. Since most PMETs are well-educated, dealing with them is very different from that of blue-collar workers, in terms of concept and process. Whenever conflicts arise and need to be raised in the tribunal, just the preparation of documents, and following up on detailed procedures, would be extremely exacting for SMEs. Hence, I really hope that this Bill could form a standard reference for HR management and that employers and PMETs could fully understand the content to avoid getting into conflicts which are impossible to mediate. At the same time, I also hope that the ECT could accurately assess which claims are reasonable and which are not reasonable at all. Local enterprises are all facing severe manpower shortage and, due to economic restructuring, every trade and industry is trying to reshuffle its resources. SMEs also hope to take the opportunity to recruit more PMETs and fully utilise their potential.”
“Hence, I earnestly hope that MOE could balance the relations between the education system and manpower needs, and that in this crucial period of economic restructuring, it could adapt to the changes in the environment and restructure the workforce to continually provide the Singapore economy with skilled and quality talent, and enable each and every Singaporean to realise his or her full potential.”
“Some have graduated but do not enter the job market and hope to pursue further studies; there are other students whose areas of study are too advanced and cannot be applied in local enterprises. All of these scenarios aggravate the manpower shortage. Hence, I do hope that when SSG draws up its policies, it would look after the interests of traditional industries and SMEs and not only consider the high value-added industries or emerging industries. Enterprises can only function if they have people. Without people, it is pointless to discuss anything. Basically, we have to fill our stomachs before considering growth. In this area, trade associations can play an important role. Every trade and industry association fully understands their manpower needs and could provide the latest industry development scenarios. Local trade associations must collaborate closely with MOE and SSG to tailor the skills framework for specific industries and to make the necessary preparations for the future growth of their industries. Grooming talent entails a continuous process and mutual coordination. Each stage has its focus. Participating in the training process as early as possible could narrow the gap between manpower needs and the supply of talent. Looking back, MOE has undergone many strategic changes in direction, from the mode of survival in 1959, to the direction of effectiveness in 1979, on to skills in 1997, and to that of value in 2011. Now, with the establishment of SSG, MOE will coordinate the manpower plans of all trades and industries and look after the lifelong learning journey of every individual.”
“However, when they enter the job market, they may find that the work requirements are less advanced than the skills they had learnt. Although we are constantly urging SMEs to upgrade their work environment and to build up their brands, the process of transformation takes time. Thus, setting up the SSG, putting basic education and continuing education into one integrated system, and treasuring every Singaporean's social value, allowing education and training to directly complement the needs of society, are a significant mindset change for the Government. Under the coordination of MOE, SSG could work closely with ITEs, polytechnics, universities and private training institutes to make timely adjustments to the skills training framework according to Page: 64 market requirements. However, my reservation is that once SSG comes under MOE, would MOE have a comprehensive understanding of employment needs? Would it be sufficiently in-depth? At this stage of economic transformation, market changes are not only accelerated but complex. Emerging industries need manpower, and so do traditional industries, while MNCs have the greatest appeal for young people. When the Government started to promote SkillsFuture, large companies started to get involved and provided internship opportunities to compete for the best talent. In this regard, SMEs are at a real disadvantage. In the current vocational education system, including polytechnics and ITEs, there has always been a mismatch in supply and demand. Some students are choosing a discipline blindly with no understanding of the industry. They only find out after graduating that they do not like what they studied.”
“Mdm Speaker, in Mandarin. (In Mandarin): [Please refer to Vernacular Speech.] Mdm Speaker, having read the objectives and functions of the SSG, I support the SkillsFuture Singapore Agency Bill. This Bill brings vocational education and lifelong learning under the jurisdiction of MOE. This is a very fundamental change in the national education concept. In order for this concept to succeed, we cannot just rely on the Government and Statutory Boards. It is important for all enterprises and trade associations to be actively involved. Changes in Singapore's demography have already created serious manpower challenges. The ageing population, higher educational standards, low fertility rates and the continued decline in new workforce are some of the contributing factors. At the same time, some workers lack the skills to cope with the restructuring economy, and, with the curbs on foreign workers, the manpower woes faced by businesses are becoming more apparent. Even as businesses are unable to find workers, there are reports in the media on university graduates who are unable to find jobs. MOM statistics show that between 2007 and 2015, the employment rate of local university graduates has declined, from 94.5% to 88.9%. Among these, the employment rate of graduates working full-time dropped from 89.8% to 82.4%, while the employment rate of those working part-time has risen from 4.7% to 6.6%. This is, certainly, a regrettable situation. This predicament prompts the question of whether the nurturing of talent via our education system has been too advanced to match real market needs. Students are educated in an ideal environment, with the latest technology.”
“For example, the Government encourages enterprises to mechanise and automate; SMEs can buy the machines but have no use for them. It gets even more problematic when the equipment become faulty and become intermittent pains of the overall restructuring process. During the restructuring process, SMEs realise that change is necessary, but may not have the means to implement the changes. With the setting up of WSG, there will be a specific Government agency to steer enterprises towards creating good job opportunities for Singaporeans, and I hope that with everyone pitching in to work hard, the situation could be changed for the better. However, a crucial factor is how everyone could play a complementary role. In the battlefield, businessmen need weapons and ammunition. WDA needs to assist businessmen to upgrade their artillery and equipment, while the SSG should be responsible for manufacturing the bullets. This shows that MOM and MOE have to work very closely together in order to reap real benefits for the business community.”
“Mdm Speaker, in Mandarin. (In Mandarin): [Please refer to Vernacular Speech.] Madam, WDA has contributed a great deal to the upgrading of Singapore's workforce. Now, in keeping with the changes in its role, it has been renamed to WSG. I support this decision. After restructuring, WSG will be responsible for building the Singaporean Core in the workforce for all trades and industries, assist enterprises to maintain their competitiveness, and not have an over-reliance on manpower. This is a role of great responsibility. Under the double whammy of economic restructuring and manpower shortage, local enterprises need to change their business mindsets and management models. Some businessmen react fast and act swiftly and have already made their adjustments. But some others are still blinded to this reality, adhering to the notion of "there will be a way out once we reach the bottom of the mountain", and moving one step at a time, asking for help only when problems arise. I hope that WSG could find a way to communicate with these businessmen effectively, convincing them that a mindset change is necessary to counter the challenges of an ageing population, and to create more attractive employment opportunities for Singaporeans. These are areas where high value-added industries and emerging industries have a distinct advantage. Multinational corporations (MNCs) and large enterprises have always had the greatest appeal to job-seekers. Those which need WSG's help most are the traditional industries and SMEs. Moreover, these industries cannot be assessed in terms of economic gain but their social contribution. Methods used by some large corporations may not apply to traditional industries or SMEs.”
“Mr Chairman, in Mandarin again. (In Mandarin): [Please refer to Vernacular Speech.] Chairman, fellow Members of Parliament, the Government has rolled out tax incentives to encourage enterprises to do more charitable work and set up the "Our Singapore Fund" to promote social cohesion and a caring spirit. This is the right societal guidance. In fact, many enterprises, including SMEs, do actively participate in all kinds of charitable activities, except that these were not widely publicised by the media. By introducing tax incentives, the Government is endorsing the charitable work by enterprises. Moving forward, this could enable enterprises to do even more. Companies which organise charitable activities can "kill two birds with one stone". Firstly, it inculcates the spirit of giving back to society, builds up the corporate image, establishes shared values among employees and strengthens employees' sense of loyalty. Secondly, it would improve company bonding and help to cultivate mutual understanding among management and employees. Staff who work in different departments do not usually have the chance to interact with other colleagues. Participating in charitable activities organised by the company gives them the chance to work together and deepen understanding. However, when companies plan for such activities, it would be more effective if they could take reference from some successful experiences. Hence, I would urge the relevant agency to provide cases of some successful corporate social responsibility projects as a reference point. While companies could learn by example more easily, charitable organisations would also stand to benefit.”
“There is a conflict between implementing lean management, increasing productivity and promoting family-friendly and flexible working arrangements. How should this conflict be resolved? At the same time, on the topic of increasing the birth rate, how is the Government going to communicate even more effectively with the citizens? Demographic structure affects the survival of Singapore. We should handle the population issue with the same perseverance we have in resolving the water issue. As the saying goes: "Everyone is responsible for the rise and fall of the country". Marriage and parenthood should be, from now on, a national concern. Fostering Family-centric Workplaces”
“[Please refer to Vernacular Speech.] Chairman, fellow Members of Parliament, the Government has been enhancing policies to increase the birth rate, including helping singles to find life partners, housing, encouraging procreation, childcare, work-life balance, getting husbands and wives to share responsibilities. Indeed, all possible ways and means have been used to address the issue of our country's ageing population and declining birth rate. On the relationship between population and a nation's strength, I would like to share a story from ancient China. During the Song Dynasty, there was a small kingdom called Western Xia, or 西夏. The soldiers were valiant and good at fighting, winning numerous battles against the Greater Song. However, Western Xia, despite having a strong army with great fighting spirit, ultimately had to make peace with the Greater Song because of its small population and lack of manpower. This story illustrates how a small, but tough nation lost because of its shrinking population, reminding us that the size of Singapore's population and its demographic structure is related to its economic development, social stability and national defence. The strong Western Xia survived for close to 200 years and, similarly, as a small nation surrounded by bigger nations, how long can Singapore survive? Having just celebrated 50 years of nation-building, we are beginning our journey towards the next 50 years. If we are unable to solve the issues of an ageing population, businesses would eventually face a more severe manpower challenge. Thus, supporting the country's population policy would mean supporting the sustainable development of businesses. However, businesses do face difficulties during the implementation.”
“The Ministry's efforts over the last few years have bought us valuable lead time. As the situation on the ground becomes increasingly complex, I would like to ask about its use of analytics to expand its capacity to monitor the labour market situation. On the one hand, it is clear that some companies are experiencing problems with the restrictions on supply of foreign manpower. On the other hand, there are also reports of over-representation of foreign manpower in certain instances. Although the overall evidence suggests that such problems are not widespread, why are these two extremes occurring at the same time? Are they symptomatic of some deeper flaw in our system? Is our labour market infrastructure up to the task of incorporating the participation of foreign manpower for the longer term? Is it possible to use data from the Jobs Bank as well as other labour market transactions to examine these problems, to understand if they are problems of matching? In particular, could the Ministry assemble data on hiring experiences to properly understand if there are differences between the jobs matching process for locals and foreigners? Clearly, there are important privacy concerns. Hence, analytics plays a crucial role, because it is possible to build into such an analysis complete anonymity while preserving the broad patterns that are of interest in voluminous transactions data. The reason why I am raising this is because the pendulum seems to have swung in the other direction. The chorus of voices against foreign manpower is growing louder by the day. Are we sure we are moving in the right direction? Are we sure we are not swinging too far in the opposite direction? Strengthening the Singapore Core”
“Another publicity that requires adjustment is skills upgrading vis-à-vis pay increments. Upgrading of skills is to correspond with the upgrading of enterprise and the needs of the industry, which, in turn, increases employability. However, this does not naturally equate to pay increments. Some jobs have become obsolete or redundant, thus, employees need to acquire new skills in order to remain employable. Currently, the manpower issue which I am most concerned about is the Sectoral Manpower Plans (SMPs) which the Government is developing for 25 industries. EDB, which services MNCs, is leading seven; the other three are hotel, retail and construction. The remaining 10-over industries have yet to be announced. I would like to understand, in the 10-over sectors, are the needs of SMEs being considered? If yes, I hope the Government can develop training content according to the actual needs of SMEs. Thus, I would also like to urge the TACs from the various industries to participate in the SMPs proactively to develop more talents for the practical needs of local SMEs through the Government Page: 79 (public), enterprises (private) and TACs model. Reliance on Foreign Manpower Assoc Prof Randolph Tan (Nominated Member): Mdm Chair, in his round-up speech, the Finance Minister has succinctly characterised the challenges for our employment landscape as creating the right jobs, equipping workers with the right skills and bringing about the right match. MOM spearheads the complex and demanding role of realising these goals. In recent years, its officers have ramped up the activity on the ground. I thank the Ministry for taking such a difficult but important hands-on approach and I urge it to continue despite criticism from some quarters.”
“The total population of this category of more than 900,000 – making up around a quarter of the population – is now moving on to the retirement phase. When this generation of people was younger, it happened to be the time when our country started attracting many MNCs and embarked on rapid economic development. But the MNC-driven economic development is changing. According to the statistics by the Economic Development Board (EDB), from 2011 to 2015, the fixed asset investment, total business spending and jobs created by foreign companies have been declining. SMEs can take this opportunity to attract more well-educated talents into their companies. SMEs used to provide supporting services to MNCs but through transformation, they can now grow to become promising Singapore enterprises which can provide a more stable career path to its employees than MNCs. However, SMEs need to create higher-quality job opportunities in order to attract these talents. SMEs felt disappointed with the publicity on skills upgrading in these two years. For example, the news reports on encouraging skills upgrading that I often read consist of Institute of Technical Education (ITE) students being placed in important roles by MNCs after working hard to upgrade their skills. During the recruitment process, SME owners not only cannot afford to hire graduates, they find it difficult to attract tertiary students and face restrictions on employing foreign talents. Now that even the ITE students are all going to MNCs, who else can they hire? To my knowledge, many polytechnic and ITE graduates have been entrusted with important roles, assuming major responsibilities in SMEs. We should also widely promote these stories. We should not give SMEs the perception that only MNCs provide career opportunities.”