Tong Kok Yeo
Singapore
“Sir, I beg to move, That the sum to be allocated for Head R of the Main Estimates be reduced by $10 in respect of Code RA 1500. Sir, the scope in the application of digital technology is enormous. Its application has brought about many changes in the way we work and play.”
“Mr Speaker, Sir, I wish to ask the Minister whether the revised salary will be on condition that the employee opts for the MSO Scheme. And secondly, whether the maternity benefits for female employees will also be incorporated under the MSO Scheme, namely, female employees will not be entitled to the medical charges incurred for maternity…”
“The Ministry of Labour's guidelines on inquiry procedure for the private sector encourages the participation of union representatives in disciplinary inquiry.”
“Sir, would the Minister not agree that by not allowing the union to represent its members it is tantamount to denying the trade union rights to represent its members? Cdre (Res) Teo Chee Hean: Sir, the unions are able to represent their members in matters like wage negotiations and so forth.”
“Sir, in view of the Minister of State's reply, would he consider reviewing the current disciplinary procedures to expedite the disciplinary inquiry procedures, especially in interdiction cases where the process sometimes takes as long as two years.”
“Such a reduction in CPF contribution rate seems to indicate that the objectives of the flexible wage system so strongly advocated during the recession years have not been achieved. Nevertheless, I would like to suggest that the reduction of the CPF contribution rates be reduced incrementally over a few years.”
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“Sir, I thank the Minister of State for her comprehensive reply. I beg leave to withdraw the amendment. Amendment, by leave, withdrawn.”
“Sir, I beg to move, That the sum to be allocated for Head P of the Main Estimates be reduced by $10 in respect of Code PC 1500. Sir, public sector hospitals, polyclinics and outpatient clinics are equipped with their own pharmacies. These pharmacies, I believe, are stand alone in the sense that the dispensing of medicine and drugs for patients is based on their doctors' prescriptions. These Government hospitals and outpatients' clinics, polyclinics and pharmacies are all spread out over the island. In dispensing the drugs to the patients, pharmacies do not have the facility to gain immediate access to the patient's medical history prescription. In this connection, I wish to ask the Minister whether it is feasible to establish a medicine and drug database on-line network to integrate patients' prescription record for all Government pharmacies, perhaps initially for the Government pharmacies, and later private pharmacies can be linked to it. If it is not feasible, whether the existing MediNet system can be expanded to provide such a facility. I believe the establishment of such a network will enable pharmacies to know immediately whether the patient already has a prescription for the same medication or whether it would interact with another drug a patient may be taking. It also can help to prevent prescription drug problems that may lead to hospitalisation.”
“Sir, I beg leave to withdraw my amendment. Amendment, by leave, withdrawn.”
“Sir, I beg to move, That the sum to be allocated for Head R of the Main Estimates be reduced by $10 in respect of Code RA 1500. Sir, the scope in the application of digital technology is enormous. Its application has brought about many changes in the way we work and play. However, the misuse and abuse of digital technology can cause unnecessary harm and damage, for example, the altering and combining of photographs. To illustrate, a recent New York news day cover photograph was doctored to make it appear that ice-skaters Nancy Kerrigan and Tonya Harding were practising together, but in fact they were not. The Acting Dean of Columbia University's School of Journalism called the picture the ultimate journalistic sin because it altered reality at a time when images carried much of a story's message. I wish to ask the Minister whether the existing legislation is adequate to check such abuse and whether further legislative rules need to be drawn up to address the ethical question of using digital technology for such purposes.”
“Sir, I beg leave to withdraw the amendment. Amendment, by leave, withdrawn. The sum of $440,895,100 for Head N ordered to stand part of the Main Estimates. The sum of $556,342,700 for Head N ordered to stand part of the Development Estimates. Head X -”
“Sir, I beg to move, That the sum to be allocated for Head N of the Main Estimates be reduced by $10 in respect of Code NO 1500. Sir, with the introduction of GST on 1st April this year, addressees of incoming time-sensitive mail articles from overseas will have to pay GST, just like any other imported goods that exceed a certain value. These mail articles will only be handed over to the addressees by the business couriers doing the delivery upon the addressees paying the GST. I believe this is the regulation of the Customs and Excise Department. Sir, from what I have gathered, the payment of the said GST can be made in cash, cheque or by crediting into the addressee's account with the business courier company, if the addressee does have one. These forms of payment may unnecessarily inconvenience the addressee, particularly if the addressee is a non-business person, for example, a resident of HDB estate. Even if the addressee is a business entity, the addressee may not necessarily have an account with the business courier company. Payment by cheque is not a good means either, because getting the signatory to sign the cheque at the time when the delivery is made is impractical. Sir, for the convenience of the addressees of such incoming time-sensitive mail articles from overseas, I ask the Minister whether a more convenient way to pay the GST can be looked into, for example, by way of billing the addressees, instead of collecting the GST by cash or cheque.”
“Sir, I beg leave to withdraw my amendment. Amendment, by leave, withdrawn.”
“Sir, I beg to move, That the sum to be allocated for Head N of the Main Estimates be reduced by $10 in respect of Code NI 1500. Sir, when public servants opted to convert to the CPF scheme in 1973 and 1986, they have their pensions due to them as at the time of their option converted into what is called a frozen sum. Their option to retire depending on the date they join the service and their sex remains unchanged. This frozen sum will only be paid to them when they retire from service. In addition to this category of public servants with frozen sum, there is another category of former public servants who are with the privatised Singapore Telecom, a former statutory board. In this regard, I wish to declare my pecuniary interest. 3.45 pm Sir, with the legislation of the retirement age to 60, the option to retire before reaching the age of 60 for this category of employees appears to be rescinded. They cannot afford to resign because it would mean that their frozen sum will be forfeited. May I ask the Minister whether this category of employees can be allowed to retain their option to retire? I believe the Ministry is looking into the matter. I would like to ask the Minister on the status as it is also a matter of interest for employees in other statutory boards earmarked for corporatisation and privatisation.”
“But if this cannot be achieved, a limited intervention by the Government can still be expected because basically Singapore is still a large family. Mr Speaker, I support the motion in the name of Mr Loh Meng See.”
“In line with this, the threats to the institution of the family will come in a variety of ways and at various times. We must uphold authority, discipline, a moral framework with its value structure and standards of individual conduct and responsibility within the social environment. We have to be wise in handling the fact that differences in a person's ability lead to different levels of success and income. While advocating hard work, thrift and the sacrifice of short-term enjoyment for a happier future, we have to see how differences in family economy can threaten a happy family life. In discussing this issue, we need to ask some fundamental questions. For example, should market forces be the determinant of everything? How far should this be allowed and at which stage should society and the Government intervene? We cannot, for instance, accept the enforcement of quotas or guidelines, giving subsidies or providing special treatment as an equalizer or balancer of social development and progress. This is inequitable as it would penalise the diligent and talented and the society would, in the long-term, be the poorer because we would not be using our human resources in an optimum way. We might not succeed in building a Utopia or fully embrace the confidence in human rational capacity to build a perfect society in future. But we have to create the right climate. We also have to work to apply policies that would effect stability in community life and make changes from time to time to those policies in order to further our objectives. Mr Speaker, Singapore has chosen the middle way and wants the family to overcome its problems, be they the stability of the institution itself or an aging population.”
“He was very concerned and I shall quote him. He said: 'Since the start of this century, the divorce rate has soared 700%, almost matching the cost of living's acceleration. Except for a brief slow-down in 1977, the rate has increased each year since 1966. So have the absolute numbers. Since 1975, more than 1 million couples have been divorcing annually, with a record of 1.18 million in 1980. Experts estimate that more than 1 million children annually are involved in divorce cases and currently 13 million children under age eighteen are living in households with at least one parent absent.' He wrote this 12 years ago. We now hear reports of children seeking divorce from their parents. The wave of destruction of the institution of the family in the United States described by Burton Yale Pines has not abated today. For us in Singapore, parents have the right and the responsibility to nurture, educate and discipline their children. A healthy family life today depends on the unique relationship between parents and their children. It is the right, duty and responsibility of children then to ensure that their parents enjoy security in their twilight years. We must avoid having this responsibility shifted to the State and the society. We must avoid having the institution of the family weakened by attack from anti-family elements, whether in the form of destructive values, programmes that break up family life or personal choices that encourage divorce, or legislation that is not orientated to the strengthening of family life. We need to formulate more effective measures to stabilise family life by taking into account the fact that we are an eastern people and Singapore is a multi-racial society with a variety of cultures, religions, values and views on life.”
“This suggestion deserves to be debated and considered and we might then get even better suggestions. But, more importantly, the extension of the Minimum Sum scheme is one way in which we can achieve two objectives, that is, maintaining home ownership and securing life after retirement. The scheme demands that we increase our savings. But not everyone can afford to do so. Mr Speaker, when we introduced the Top-Up Scheme, the reaction from our young workers was rather encouraging. I believe the reaction reflects our confidence in the institution of the family and a strong sense of responsibility towards our parents when they are old. So I would like to suggest that, besides raising their own Minimum Sums, young workers with larger savings be allowed to contribute through a Top-Up Scheme for their parents, if they want to and if their parents' CPF savings are small and not enough to comply with the Minimum Sum proposed. Mr Speaker, this idea brings me to a more crucial issue, that is, stabilising and upholding the family as an important institution of our society. Whether working children are prepared to contribute to the Top-Up Scheme will depend on the atmosphere and the history of their family life. If they have been raised in a family torn apart by conflict and troubled by divorce, I do not think they would be keen to sacrifice for their parents. Considering that the President's Speech also touched on the long-term future of Singapore, the strengthening of family life should be upheld. We often hear how the institution of the family is facing a challenge in some Western countries. Burton Yale Pines, in his book "Back to Basics" in 1981, expressed his concern over the problem of erosion of noble values and the weakening of the family, the building blocks of society.”
“Although we can raise the Minimum Sum gradually and specify a cash amount, there will be workers who cannot afford it for various reasons, like a small salary, a large number of dependants, etc. So they have a problem complying with the Minimum Sum rule. We might include the value of the property they own by working out a suitable proportioning to make up the required amount. Let us say the amount required under the Minimum Sum scheme is $70,000, half of which can be accounted for by the value of their flats. Let us say they have a 3-room flat now valued at $60,000. $35,000 has to be deposited into their CPF accounts if they sell their flats, and the balance can be in the form of cash which can be gradually raised. But, Mr Speaker, the cost of living after retirement will continue to rise. If they retire at 60 years and require $1,000 every month for their basic needs and they can live up to 75 years, they actually need about $180,000. Even in families where both husband and wife are working, they would still need a certain amount in current assets and $90,000 cash each in their Minimum Sums. This is no mean problem. In other countries, a mortgage scheme is introduced, under which flat-owners mortgage their homes in return for cash to meet their daily needs. Having mortgaged them, however, they no longer own their homes. If such a scheme is introduced here, our home ownership policy would be affected. Mr Speaker, I am impressed with the suggestion by the Member for Kampong Glam GRC, which was supported by the Member for Bedok GRC, that flat-owners be allowed to mortgage their flats under a scheme that gives them cash in return but allows them to continue living there until they pass away, at which time the balance of the money will be paid to their beneficiaries.”
“We know that the cost of living is rising, the expectations of our retirees are higher now and, more important, our average life expectancy today has increased. I support the President's suggestion that a higher Minimum Sum is necessary to meet this need. The President has stated that the Minimum Sum will be raised gradually. This means that our workers will need to increase their contributions for the purpose. This objective has to be achieved considering, firstly, our workers' higher income and greater capacity to save; secondly, the appreciation of the value of their properties; thirdly, the need to meet the cost of living; fourthly, the possibility of the existing topping-up facility being extended. Mr Speaker, I would like to speak on extending the existing Top-up scheme, which has been touched by my colleagues. I think there is a lot of potential to be explored here towards achieving our objectives. The scheme enables aging workers who have reached a sort of plateauing in their salary increments to obtain assistance from their children who have greater savings in their CPF. We know that $34,600 is far from sufficient for retirement needs, and we have to do something about it. If a worker retires at the new retirement age of 60 and withdraws $1,000 a month, $34,000 will be enough for only 35 months, not even three years. Statistics show that our life expectancy has now reached at least 75 years. How can the retiree maintain himself for another 15 years or more when what he has in savings is enough for only three years? This demands our attention and raising the Minimum Sum is the most appropriate measure.”
“The question often asked is: how does this reconcile with the autonomy granted to the statutory boards? Sir, with these comments, I support the motion. The Parliamentary Secretary to the Minister for Foreign Affairs (Encik Yatiman Yusof)( In Malay): Mr Speaker, I wish to join my parliamentary colleagues in supporting the motion of Address of Thanks to the President for his Speech at the Opening of the Second Session of Parliament on Monday, 10th January. One of the basic issues touched by the President was the impact of demographic changes resulting from better health care and a lower birth rate. Our population is aging. The Government realises the effects of this development. How do we handle this problem? The question has to be resolved satisfactorily. We have already taken a number of measures. Among them, extending the retirement age, adopting a public housing policy that promotes the strengthening of family bonds and enables the aged to live with their children, providing for training and skills upgrading so that aged workers can continue to contribute to the national economy as well as secure their own livelihood, implementing organised community programmes in the housing estates so that our senior citizens can take part in healthy social activities and, finally, introducing a health policy that enables us to absorb the rising cost of health care. To me, however, what is important is providing a safety net for old age. I agree with the view that we have to set aside part of our workers' income for old age. This is the reason behind CPF and the reason behind the Minimum Sum scheme which has been set at $34,600. The question is: is this sufficient?”
“This is a good policy as evident from the good response to the Singapore Telecom Group "A" shares and the HDB Upgrading Programme. The impending sale of the 2-room, 3-room HDB rental flats, hawker stalls and HDB shophouses to sitting tenants, I am sure, will also be met with the same good response, if not more. Sir, the flotation of Singapore Telecom, coupled with the bull run on the stock exchange, has generated some concern about workers, especially first-timers, punting in the stock market. This concern is a valid one. Perhaps the Government should embark on a public education programme to educate this new category of citizen shareholders on the risks and dangers of the stock market before they get burnt and blame someone else or the Government for it. Finally, Sir, I welcome the plans to review the present arrangements for recruiting, promoting and managing personnel in the civil service and the granting of more operating autonomy to some departments by converting them into statutory boards, as stated in the Addendum on the Ministry of Finance. This must be so if the civil service, being the largest employer, is to continue to attract good quality people into its service. Sir, the granting of more operating autonomy to statutory boards should encompass giving them more autonomy in determining the terms and conditions of their employees, especially those statutory boards which function more like a commercial company. We have seen that more often than not these statutory boards still use civil service relativities in determining their terms and conditions of employment for their employees. The recent civil service salary revision is a good example. The determination of the year-end bonus is another good example.”
“There is also another category of workers, presumably older workers, with "A" level or polytechnic diplomas who want to pursue higher paper qualifications through part-time courses offered by the polytechnics, Open University, or the Singapore Institute of Management. These workers have family commitments and enroling in part-time courses will inevitably impose a financial strain on them. In view of the emphasis placed on education and training, the Government should consider allowing these workers to use their CPF savings for part-time courses. Let them decide how they want to invest their CPF savings. If they decide to invest them in their part-time education instead of the stock market, so be it. If I may borrow a sentence from the President's Address: Let them have the freedom to decide for themselves how to invest and take responsibility for their own choices. Secondly, the need to raise the CPF Minimum Sum gradually over the years. While the rationale for the need is understandable, how this change is implemented will determine the degree of acceptance. This is a sensitive matter as it may be perceived as an indication of Government's paternalism and also intervention in deciding for CPF members how they should utilise their hard-earned savings. I am glad that the Government does recognise this as it has indicated that the matter would be discussed thoroughly over the next few months before deciding on the best way to proceed. Sir, the Government has reiterated its commitment to its asset enhancement programme by indicating that it will use privatisation of statutory boards to enhance the assets of Singaporeans and to use part of its budget surpluses to fund the asset enhancement programme.”
“The Addendum on the Ministry of Trade and Industry states that new ways would be sought to help workers participate in training programmes and to encourage them to continually upgrade themselves. In the process, perhaps the Government and employers as well can formulate incentive schemes for workers who complete the retraining programmes. It does not necessarily follow that younger workers are more skilful or more productive than older workers. Older workers have acquired skills, expertise and experience over the years on the job. It would be a waste if their skills, expertise and experience go untapped. In our environment, when one joins the labour force, it is evident that one will have to be trained and retrained continuously, regardless of age, because of the rapid and constant change in present-day science, technology and even business requirements. A better educated and skilled worker will of course be in a better position to be employable, to earn better wages and a better living. This has been reiterated many times by our national leaders. Notwithstanding this, we must also recognise that there exists a certain category of workers whose jobs are not skill-intensive and yet the job they are performing is important and vital to the economy, for example, the drivers, the security guards and the postmen. To this category of workers, skills upgrading sounds hollow and irrelevant unless there are structural changes in the employment of these workers, for example, by using foreign workers. Or if there is a technology breakthrough, these workers will find it increasingly difficult to better themselves.”
“This is of paramount importance. However, as some speakers before me have said, the recent salary revision in the civil service and also the option for medical benefits have in a way given rise to some morale problems. This is not only affecting the teachers but the civil servants and employees in the statutory boards as well. For those who opt for the Co-payment on Ward (CPW) Scheme, they were informed that they would not be eligible for future salary revisions. This is a rather unfair condition for them to opt. We hope that the Government would take a serious review of the decision made and address the problem accordingly. Sir, the President's Address also noted the demographic changes which have serious social and economic implications. Firstly, the need for older workers to be retrained and learn new skills and fit into new jobs. Sir, the term "older workers" has more often than not been loosely used. To use it without a clear definition may give rise to the undesirable perception that "I am not old, so I do not need retraining." After all, as the saying goes, feeling old is a state of the mind. Therefore, in stressing the need to retrain older workers, we should avoid sending a wrong signal, otherwise such workers may be less receptive to the need for retraining. Older workers as they are would have many good years with the company they work in. While they can accept the rationale that retraining to learn new skills would enable them to earn better wages, for all practical intents and purposes, this may not necessarily be the case, as companies do have their constraints. Unless these workers can see immediate rewards upon completion of their retraining, a common response is: What for? By the time I am retrained, I will be due to retire, anyway.”
“Mr Speaker, Sir, I rise to support the motion of thanks to the President for his Address. The President, in his Address, states that the Government will focus on long term policies to position the country for the next stage of nation building. The President has also reiterated some of the basic principles of this Government. These principles have stood the test of time and are indeed worthy of continued support. In particular, Sir, I am pleased to note the Government's emphasis on the need to invest in education and training. Matching the Government's emphasis is also that of the parents themselves who are ever prepared to also invest in the education of their children. These investments, together with the Edusave Scholarship Scheme, the Edusave annual grants and the provision of 10 years of education, will pave the way for the country to realise its educational objectives of further improving the quality of our education and to strive for excellence in education. More importantly, it provides equal opportunities for every schooling child to realise his or her maximum potential. However, given that our restructured education system is in place, no amount of investment, be it from the Government or the parents themselves, will help us in achieving our educational objectives if we are unable to attract and even retain good quality people to become teachers. In this regard, it is heartening to note that, in the Addendum on the Ministry of Education, measures will be taken to further improve the system of rewarding good officers and grooming capable officers for leadership position. In the process, the need to ensure that our teachers are provided competitive terms and conditions of employment should also be given due emphasis and attention.”
“This category of employees is likely to be older and more prone to illnesses and therefore may have to pay higher premiums if such employees do take up coverage under MediShield II or private medical insurance. This concern is compounded if such employee uses his or her Medisave savings to also cover his or her family members who are not employed, for example, non-working spouse, schooling children, and parents. The Government has indicated that it will implement the additional Medisave contribution to new recruits in lieu of traditional medical benefits, and has encouraged the private sector employers to follow. This inevitably will have an impact on the role of trade unions in negotiating these benefits, as the additional Medisave contribution is capped at 2% of salary. I certainly hope, with the adoption of this new model, employer medical benefits over the years will not eventually evolve into a non-negotiable item. I hope the Government and private sector employers, in adopting the new model, will continue to bear their liability of medical charges arising from hospitalisation should their employees suffer from industrial diseases, or industrial accidents or accidents met in the course of performing work. These certainly cannot constitute traditional medical benefits. The Government has announced its revised medical benefits scheme for the civil servants. It would take time to study and assess its impact on the civil servants at large. Private sector employers will of course look forward to how the Government implements this, and its impact on the employees will then depend very much on the implementation aspects. Sir, with these comments, I support the motion.”
“This convergence of priorities indicates the high importance the three parties accord to the useful role health care can play in promoting employee commitment and in providing workers with a quality work life. There are several advantages and merits in the new model of converting traditional medical benefit to additional Medisave contribution. However, I was trying to find a definition of what traditional medical benefits mean. However, we have heard the Minister for Finance earlier announcing the revised medical benefits package for the civil service. I would draw the conclusion that traditional medical benefits mean hospitalisation benefits. Therefore, employers will look towards the civil service model and for that matter are encouraged by the Government to follow. Employer medical benefits vary from company to company. What is traditional benefit in the case of the civil service means hospitalisation benefits. What is traditional benefit to one company may not be the same for the others. Nevertheless, in view of the fact that voluntary additional Medisave contribution is capped at 2% of the salary, efforts must be taken to ensure that the high importance accorded to health care by the employers and unionists is not eroded or diluted in the process. The question asked is whether the additional Medisave contribution will be adequate over the years as medical cost may rise over the years. Of course, pegging the additional Medisave contribution to the salary will ensure that such contribution increases as salary increases. However, this would not be true for those employees whose salary is stagnated.”
“Sir, the White Paper has spelt out in great detail the Government's health care philosophy and the various approaches the Government will take to regulate and contain health care costs, the main objective being to ensure that Singaporeans receive good basic health care at a price they can afford. In this regard, it is reassuring to note that the Government has taken into due consideration the concerns, especially that of the lower income group, by ensuring that medical care in class B2 and C wards will reflect the basic health care package, and that these wards will be heavily subsidised by the Government and the Government should continue to do so. Sir, having noted the experiences and problems other countries have in their health care system, I find it difficult to disagree with the sound principles expounded so convincingly in the White Paper. Nevertheless, I wish to focus my comments on employer medical benefits. Medical benefits have always been part and parcel of the terms and conditions of employment. It has always been an item for negotiation in every collective bargaining exercise between employers and unions. Therefore, medical benefits constitute an important item in the outcome of the collective bargaining process. The role of trade unions in negotiating this item should not be in any way diminished or reduced by the proposals contained in the White Paper on employer medical benefits. In the 1993 survey conducted by the National Productivity Board and the Singapore Institute of Labour Studies, more than 90% of employers, employees and unionists surveyed ranked health care as the most important benefit for promoting employee commitment and also the most important benefit in enhancing the quality of work life now and over the next five years.”
“What I am asking is if he chose to remain in the existing medical benefits scheme. Dr Richard Hu Tsu Tau: He will still receive salary adjustments.”
“Mr Speaker, Sir, I wish to ask the Minister whether the revised salary will be on condition that the employee opts for the MSO Scheme. And secondly, whether the maternity benefits for female employees will also be incorporated under the MSO Scheme, namely, female employees will not be entitled to the medical charges incurred for maternity cases.”
“Sir, in view of the Minister of State's reply, would he consider reviewing the current disciplinary procedures to expedite the disciplinary inquiry procedures, especially in interdiction cases where the process sometimes takes as long as two years. Cdre (Res) Teo Chee Hean: In a case where disciplinary proceedings are taking an excessively large amount of time, I will agree with the Member that this should be expedited. SINGAPORE BROADCASTING CORPORATION (Malay programmes in prime-time slots) 9. Mr Umar Abdul Hamid asked the Minister for Information and the Arts whether the Singapore Broadcasting Corporation will consider having more Malay programmes in prime-time slots since there are no Malay programmes on SBC after 8.00 pm except on Mondays.”
“The Ministry of Labour's guidelines on inquiry procedure for the private sector encourages the participation of union representatives in disciplinary inquiry. Will the Minister consider adopting the Ministry of Labour's guidelines because the Government, being the biggest employer in the land, is advocating something which it is not following? Cdre (Res) Teo Chee Hean: Sir, as I have explained, the situation in a private company is not quite the same as the situation in the public service. In a private company, the disciplinary proceedings may not be conducted by an independent body, whereas in the public service, the disciplinary proceedings are conducted by an independent body. So while the Government encourages unions to represent their workers in disciplinary proceedings in private companies, the situation is not the same as in the public service where the disciplinary inquiries are independent.”
“Sir, would the Minister not agree that by not allowing the union to represent its members it is tantamount to denying the trade union rights to represent its members? Cdre (Res) Teo Chee Hean: Sir, the unions are able to represent their members in matters like wage negotiations and so forth. As I have explained, in the case of disciplinary inquiries, it is unlike a private company where the inquiry is conducted by the company and may not have any independent person sitting on the board of inquiry. In the case of the public service, the Public Service Commission, as an independent agency, conducts the inquiry. So there is already impartiality in terms of the constitution of the board that is conducting the disciplinary inquiry. In any case, the public officer can be represented by a lawyer or by another public officer, and they could either be appointed by the union or the union official.”
“Mr Speaker, Sir, in asking the Question, I would like to declare my interest as the Executive Secretary of a public sector union. Question No. 8, Sir.”
“Such a reduction in CPF contribution rate seems to indicate that the objectives of the flexible wage system so strongly advocated during the recession years have not been achieved. Nevertheless, I would like to suggest that the reduction of the CPF contribution rates be reduced incrementally over a few years. After all, the restoration of the CPF rates for those below 55 years was done in that manner. Just as the Government has come up with a final CPF contribution rate of 20% each for both employer and employee, perhaps the Government needs to do the same for the CPF contribution rates for workers aged 55 and above.”
“Therefore, companies which adopted the flexible wage system will not discriminate against older workers or put them at a disadvantage, as they are paid according to their productivity. Adoption of the flexible wage system would therefore render the issue of retirement age irrelevant. The Minister has informed the House in a previous sitting that in the unionised sector, more than 80% of companies have implemented some form of flexible wage system. In the non-unionised sector, the extent of implementation has reached 70%. Therefore, unless the adoption of the flexible wage system has taken a turn for the worse, I cannot reconcile the announcement made by the Minister that the legislation of the retirement age to 60 will be accompanied in tandem with the reduction of CPF contribution rates for those aged 55 and above. Most of the unionised companies have already raised their retirement age to 60 without the need for legislation and without the need for a cut in CPF rates. So, who are we punishing, so to speak? I believe it is the unions and employers of those unionised companies who have responded positively and responsibly to the Government's call. Contrary to what many may think, workers who are 55 to 60 years of age do still have their housing loans to service, they do still have schooling children to support, and they do still need CPF for their old age. Therefore, Mr Speaker, Sir, while I support the Bill, I have my reservation with regard to the need to reduce the CPF contribution rate in tandem with the raising of retirement age, because a good majority of companies have already adopted the mechanism of the flexible wage system to address the concern regarding the higher cost of employing older workers.”
“Though the Bill provides for representations in writing to the Minister within one month of the dismissal, such workers, after being subjected to the trauma of being dismissed or terminated at a senior age, may find it undignified and not worth their while to do so, or they may lack the understanding of the intricacies of the law or the provisions of the Act to do so. In cases of such nature, it is indeed a mammoth and difficult task to establish that the employer's actions run foul of the law. As such, I would like to ask the Minister how his Ministry is going to monitor and ensure that such situations will not happen. I would like to suggest that employers be made to notify the Ministry when terminating or dismissing such workers, who are above the age of 55, for whatever reasons, perhaps for an initial period of three years upon the implementation of the Bill. Clause 10 allows the Minister to exempt with or without conditions any person or class of persons from all or any of the provisions of the Act. To ensure that any exemption will not have any detrimental effect or impact, I support the call made by Mr Goh Chee Wee that the views of the trade unions be sought prior to granting any exemption by the Minister. I believe this will not be a problem as the Ministry had in the past sought the views of the trade union concerned in granting applications for exemptions by employers, for example, in the limit of overtime work monthly. Mr Speaker, Sir, in 1986, the National Wages Council called for the implementation of the flexible wage system. In 1988 and 1989, it urged companies to raise the retirement age from 55 years to 60 or more. Under the flexible wage system, workers are rewarded according to the productivity and company's profitability.”
“Mr Speaker, Sir, I am indeed pleased that after a long wait of three years or thereabouts, Government has taken action to legislate the retirement age to 60. This will not be necessary if a good majority of employers have taken heed of the Government's call made three years ago. I would have thought that in a labour shortage situation, employers would find it imperative to tap this source of labour supply, namely, those aged 55 and above, instead of retiring them at the conventional age of 55. As mentioned by the Minister, with each passing year, there will be more and more older workers. They are expected to live longer in view of the increasing health consciousness of the population. As such, this Bill will ensure that such workers will continue to be gainfully employed and provide for a new source of labour supply which will help, overall, in deflating the increasing dependence on foreign workers. Therefore, workers, employers and the Government will benefit from the introduction of this Bill. Nevertheless, I would like to comment on two clauses of the Bill. Clause 7 provides remedies for unlawful dismissal on the ground of age. Mr Speaker, Sir, the concern is that employers may disguise such dismissal as something else by invoking section 10 of the Employment Act. Then what happens? In unionised companies, I am sure the trade unions will police and monitor that it will never be allowed to happen. However, my main concern is for those non-bargainable workers and those workers who are not allowed to join unions by virtue of the nature of their employment. Should such actions by employers befall upon them, it may go undetected.”
“Mr Speaker, Sir, I rise to support the Bill. Sir, there are two points which I think lay people and ordinary Singapore workers are concerned upon the introduction of GST. They are inflation and profiteering. The Minister for Trade and Industry had earlier addressed these two points very well and I do not intend to belabour the points again. With your kind permission, Sir, I would like to take this opportunity to respond to the remarks made by Mr Chiam See Tong this afternoon. Mr Chiam has made a remark regarding trade union leaders in Singapore. I have been involved in the trade union movement for the last 10 years. Throughout the 10 years, I think the economic and social status of the Singapore workers has improved tremendously. All this has come about because trade union leaders in Singapore work for the workers. Therefore, my colleague, Mr Goh Chee Wee, is absolutely right in stressing the point that there must be foreign workers' levy so that the wages of Singapore workers are not depressed. Already there are views that in spite of the current foreign workers' levy, the wages of Singapore workers are already depressed. Therefore, the trade union leaders are doing their part to ensure that the wages of the lower-income workers in Singapore are not depressed by the import of foreign workers. So it is absolutely right and correct that foreign workers' levy be introduced. It is the role and duty of trade union leaders to ensure that there must be foreign workers' levy. Not to do so would be a dereliction of their duty as trade union leaders. 4.47 pm”
“The state of labour-management relations at the enterprise level must inevitably have an impact on the productivity of that enterprise. The Productivity 2000 Report identifies that for an organisation to be highly productive, both labour and management must recognise their interdependence on each other and are proactive and innovative. 2.15 pm Sir, tripartism has been the hallmark of our industrial relations system in Singapore. It has been so primarily because of the brand of trade unionism which the trade union movement, spearheaded by NTUC, has been advocating since its historic modernisation seminar of 1969. And that brand of trade unionism is responsible trade unionism. The Ministry must also be commended for being equally effective in this aspect. To reinforce tripartism, we need to continue relentlessly in our efforts to promote bipartism or labour-management relations at the enterprise level. Perhaps the Ministry of Labour should also consider promoting responsible management practices simultaneously with that of responsible trade unionism. Towards this end, I would like to ask the Minister what measures will be taken by the Ministry to improve labour-management relations at the enterprise level. This is of importance in the light of impending legislation of retirement age, the medical capping of medical expenses for tax deduction purposes and the unceasing call to improve productivity of our workforce. All these, I believe, will bring about issues of different dimensions for both labour and management to deal with in the future.”
“Sir, Singapore today is very proud of its harmonious and healthy state of industrial relations climate. It is a well-known fact that this industrial peace has been brought about by the practice of tripartism at the national level. The tripartite partnership has, indeed, worked well in overcoming many difficulties in the past, and will continue to be so in the years ahead. Tripartism has been a contributing factor to a steady decline in industrial stoppages. Except for a 2-day strike in 1986, Singapore was strike-free from 1978 till this very day. This strike-free indicator, if I may call it, has often been used, rightly or wrongly, as a ruler to judge or measure the state of industrial peace in Singapore. While this is true at the national level, it can lead to a misperception by many that the state of labour-management relations at the enterprise level is just as healthy and harmonious. According to the 1990 Singapore Year Book on labour statistics, the number of trade disputes which has been referred to the Ministry of Labour for the decade 1980-1990 averaged about 350 per year. This is discounting the number of individual cases referred to the Ministry. In fact, this shows an increase from a low of 1,400 individual cases in 1984 to an all-time high of 3,835 individual cases in 1990. To illustrate further, for example, of late, we have learned of the management of one company instructing workers to come back for replacement work for the number of hours which the power blackout lasts without pay. Another company restricts its employees in the usage of lifts; and another for trying to break the union. All these serve to illustrate that there is still much room for improvement in labour-management relationship at the enterprise level.”
“The employers should plan ahead by deploying more effective production technology, more innovative spirit of entrepreneurship, to upgrade the skill training of their workers, go for automation, mechanization and regionalization to adjust to the rapidly changing climate of investment. Only then, can they ensure that the company would maintain its standard internationally. The employees are hoping that the CPF rates could be restored more rapidly to the long-term target set by the Government. The Minister for Finance has announced that, with effect from 1st July this year, the employers' CPF rate will be increased from 18% to 18.5%, and the employees' contribution rate will be reduced from 22% to 21.5%. He also mentioned that subject to the economy being good next year, the employers' rate will be increased to our long-term target of 20%. However, Sir, if we increase by 0.5% this year, I am rather worried whether the rate could be increased by 1.5% next year. I would urge the Minister for Labour to consider increasing the rate by 1% this year, and another 1% next year. If we are to increase by only 0.5% this year, then next year, if the economy is good and we increase the rate by another 1.5%, the employers may make a hue and cry over it.”
“Sir, the points I want to raise have already been very adequately covered by the three speakers before me. I would like to join them to appeal to the Minister to allow the usage of CPF for part-time studies. Mrs Yu-Foo Yee Shoon (Yuhua)( In Mandarin): Sir, our economy suffered a recession in 1985 and 1986. Our workers were very brave in accepting a sacrifice to help their employers tide over the difficult times. They accepted a reduction in the employers' CPF contribution rate from 25% to 10%, a reduction of 15%. This was an unprecedented move. Nowhere else in the world can you find workers who are prepared to accept such a sacrifice for the sake of their employers. We should not take this great gesture of the workers for granted. Now that our economy has recovered and it has been six years since the employers' CPF contribution rate was reduced, our workers are very disappointed that it is taking such a long time for the employers' CPF contribution rate to be restored and they are rather worried about it. The employers should not use the reduction in CPF contribution rate as the sole means to maintain their competitive edge in the market. The employers should accept the fact that their CPF contribution is part of their fixed cost. The CPF has played a very important social role, for example, for housing, health, education, and investment. So I feel that we should uphold our credibility and image. At the same time, we must not forget that the next time there is a recession, we may have to tap the resources of the CPF again. Therefore, we must have enough CPF savings now.”
“Sir, under our existing admission system on admission into junior colleges, students are admitted based on the preliminary examination results. This arrangement ensures continuity which is beneficial for students intending to continue their studies in these colleges. This ensures no disruption. Sir, for the `N' level students, this arrangement and continuity are not there. `N' level students take their 'N' level examinations in September of the calendar year. After having sat their examination, there is no compelling need or requirement for the students to continue to attend classes. In this respect, some schools enforce it or do it by asking the students to continue to attend classes. Some schools do not. Sir, this arrangement is very loose and is not good for students who intend to continue with their `O' levels. I would like to ask the Minister whether he will look into introducing a more formal arrangement for `N' level students who intend to continue with their `O' levels after their examinations.”
“Sir, over the years, much has been done to our education system to ensure that the system brings out the best in our students. Going by the performance of our schools over the years, our education system is on track. To build on what has been achieved so far, it is important that we must ensure that we have an adequate number of teachers in schools, especially the Government schools. Sir, the question I would like to ask the Minister has already been addressed by Mr Umar. I would like to add that the recent recruitment of retired teachers gives one the impression that there is a serious shortage of teachers in our schools and the Ministry has to resort to such action. If there is indeed a shortage, what measures will be taken to relieve the already heavy workload of our teachers who have to double up and, at the same time, to ensure that our students' learning is not impeded by way of grouping two classes into one?”
“I beg leave to withdraw my amendment. Amendment, by leave, withdrawn. The sum of $104,723,790 for Head W ordered to stand part of the Main Estimates. The sum of $822,570,800 for Head W ordered to stand part of the Development Estimates. Head M -”
“Sir, I beg to move, That the sum to be allocated for Head W of the Main Estimates be reduced by $10 in respect of Code WI 3100. Sir, since the establishment of the Skills Development Fund in 1979, many companies, large and small, have benefited from this incentive grant. Recognising the difficulties and problems small and medium companies have on training, SDF has made it easier for them to access SDF funds through many arrangements, such as the Training Voucher Scheme. SDF incentive grants are awarded only for employer-based training. It has in a way funded individuals selectively through NTUC by treating NTUC as a surrogate employer. However, these fundings are confined to courses, such as BEST, WISE, MOST and COSEC courses. A large number of workers have benefited from them. There are a large number of workers who possess 'O' levels or 'A' levels, or even Polytechnic diplomas who wish to upgrade themselves through advanced courses on a part-time basis conducted by the polytechnics, or other private institutions, such as the Singapore Institute of Management. Some of these courses are SDF-AIT courses. Sir, in this highly competitive world and to make Singapore more competitive, the need to upgrade workers' skills is never that more pressing. Therefore, I would like to ask the Minister to consider extending the SDF incentive grants to individuals on a selective basis, for SDF-AIT courses, if not in its totality, at least on a co-sharing basis.”
“The over-riding concern with the introduction of GST is profiteering, in particular, by way of rounding-up. It is comforting to note that the Government will monitor prices closely to prevent profiteering by unscrupulous traders and to expose them publicly and, of course, to enforce the Price Control Act. I see these as an enormous task with immense enforcement difficulties. I ponder how effective these measures are going to be. Nevertheless, I would like to join Mr Ho Peng Kee in asking the Minister whether the Government will encourage and take the lead in reactivating the usage of one-cent coins. I feel that the Government should, so that should there be any eventual MRT or SBS fare increases, it will not be rounded up to the nearest 10 cents. After all, it is the lower and middle-income group that takes this form of public transport. Employers and businessmen do not. They use their own transport. Cost of petrol is not rounded up to the nearest 10 cents, but price down to the very one cent. Mr Speaker, Sir, with these comments, I support the motion. EXEMPTED BUSINESS (Motion) Resolved, That the debate on the Budget Statement be proceeded beyond 4.30 pm at this day's sitting and the proceedings thereon be exempted from the provisions of Standing Order No. 1. - [Mr Wong Kan Seng]. ANNUAL BUDGET STATEMENT Debate resumed. 3.40 pm”
“They will be caught in this trend where there will be no winners but losers. Productivity will suffer, so will workers and employers. Therefore, due recognition must be given to such workers who on their own initiative took up upgrading courses. In this respect, employers should be encouraged to provide incentive schemes to reward them. Just as employers or businessmen clamour for more Government incentive, to go regional. Sir, given the profile of our workers, it will not be surprising that a good majority of our workforce is at the maximum point of their job rate for many years. In the years where NWC came up with quantitative recommendations, such workers could at least look forward to some annual wage adjustments. This was not the case after 1986. The NWC comes up with qualitative recommendations. As such, over the years, these workers perceive that the standard of living has declined, their earnings being eroded by inflation. The plight of these workers will be further aggravated next year when the GST is introduced. Perhaps, Mr Speaker, Sir, the tripartite partners in NWC should address the issue of how to ensure that the standard of living of workers who are at the maximum point of their job rate is not eroded year after year by inflation without annual wage increases. Finally, a few words on GST. I am glad that most of the rebates are given upfront, in particular, the pensioners' allowance which over the years has never been indexed to the rate of inflation. The package of benefits reflects the Government's concerted efforts and its sincerity in ensuring that the introduction of GST will not have any adverse impact on the population. It leaves now for the Government to ensure that profiteering does not occur.”
“But we should also remind employers of 1979 when the Government restructured the economy to move from low-intensive industry to high-technology and capital-intensive industry. For workers in the lower-income and middle-income group, two matters are of major concern to them. They are wages and promotion. Such workers want better wages. There is nothing wrong with that. Just as employers and businessmen want more profit. Such workers look forward to annual wage increases. As long as wage increases are not eroded by inflation, cost of living is not a big problem. However, when such a worker is near or is at the maximum of his job rate, he aspires for promotion because he sees it as the only way of earning more. Otherwise, his wage will be stagnated. Of course, there is a limit to the number of employees that can be promoted. Nevertheless, this is their aspiration. Therefore, many of such workers, especially those with low-paying jobs and those at the maximum of their job rate, have heeded the call to upgrade on their own. Despite their comparatively low or stagnant income, they are motivated to do so because they believe this will help to enhance their promotional prospects and earning capacity. This was also the message given by our national leaders that workers will be able to earn more if they go for skills upgrading and training. It will therefore not be far from wrong to assume that the skills acquired by them will inevitably show in their work. Thus, employers and businessmen indirectly benefit. For such workers, if a promotion is not forthcoming or their wages are stagnated for many years, these workers will be disillusioned. They can only conclude that it does not pay to upgrade. Their peers will likewise be discouraged to go for upgrading.”
“A practical and logical course of action to take in arresting this trend, much reiterated and exhorted by many of our leaders, is to improve productivity through continuous education and skills upgrading and training of our workforce. The National Productivity Board has targeted the expenditure on training to 4% of the payroll by 1995. It will be interesting to know how our employers are faring in this aspect. It was 1.5% in 1986, 2% in 1991. It takes five years to reach the half-way mark. I see it that this simply means that employers are not doing enough in the education and skills upgrading and training of our workforce. The Budget outlines the strategies and incentives to make Singapore more competitive. All this will be negated if education and skills upgrading and training of our workforce are taken half-heartedly. We need not wait for 1995. The 3% reduction in corporate tax is best diverted to investment in the training of our workforce. Mr Speaker, Sir, many a time the wages of workers or costs of labour have always been the punching bag whenever employers or businessmen talk about the rising cost of doing business in Singapore. I agree totally with what Mr Chin Harn Tong said in his speech yesterday. Wages or cost of labour is only one factor of production. Employers and businessmen had better look into more innovative ways to reduce cost in other areas such as manpower optimisation, curb extravagance, reduce wastage and duplication of resources and, of course, productivity improvement through education and training of the workforce. Pointing at wages is the easiest way out. Workers have often been reminded of the 1985 recession.”
“However, I suspect that employers will be slow in this respect, as cost will be the main deterrent unless there are fiscal incentives to accompany it. But again, Sir, how are employers going to save money if they are reluctant to spend money? Studies in the US have shown that companies which actively embark on health promotion programmes experience cost savings over the long term. AT&T announced that over a 10-year period they saved $22.4 million in preventing heart attacks. Lockheed spent $2 per employee on health promotion programmes and demonstrated with a saving of $116 per employee. New York Telephone realised savings of $663,000 in hypertension reduction, $1.5 million in alcoholism rehabilitation, $269,000 in breast cancer and $268,000 in general stress management. There are many benefits to be reaped, both by the employee and the company, by introducing health promotion programmes, such as improved corporate image, improved workers' attitude, decrease work-related injuries, decrease health care cost and, most importantly, increase worker productivity. Mr Speaker, Sir, it is heartening to note that the productivity growth for 1992 averaged 3.1%, almost double that of 1991. However, despite this improvement, it still lags behind wage increases. This has been the trend since 1988 and many reasons have been given for this phenomenon. Many of our Hon. Ministers and Members of this House have repeatedly stressed that over the long term, this trend must be arrested if Singapore is to remain competitive. Experience of many countries, such as the United Kingdom, are good examples to learn from.”
“Sir, against this backdrop, the impact of this medical capping should not be allowed to result in the deterioration of medical benefits currently enjoyed by workers. As I understood it, the Government's intention in introducing this medical capping is "to prevent a future problem and not to deprive any worker of existing medical benefits". I believe this would be the main consideration when the Government itself reviews the medical benefits of public sector employees. This is of paramount importance because the private sector employers will obviously be watching how the Government do it. The overriding concern is that employers will be inclined to use the medical capping of 2% as a yardstick to cut the cost of medical benefits provided to the employees. This may be an issue for serious contention when unions and employers meet to negotiate their collective agreements. The Budget Statement states that the medical capping does not mean that companies cannot give medical benefits beyond the 2% medical capping. I would see that it also means that workers, through their unions, can secure medical benefits exceeding that limit. Sir, the process of free collective bargaining should be allowed to determine the extent and scope of the medical benefits provided to employees by employers regardless of the capping. Employers are truly worried and concerned about rising medical cost. The more reason they should now look into ways of how best to implement an effective health promotion programme at the work place, as suggested by NTUC. The Government is already moving in the right direction with the promotion of a healthy life style amongst the population.”
“Mr Speaker, Sir, thank you for allowing me to join in the debate. As with other hon. Members of this House, I wish to commend the Minister for Finance for the budget which has been hailed as a "bonanza" budget with something for everyone. For the individual, the CPF Top-up Scheme to help Singaporeans own shares is indeed an icing on the cake. I believe the same can be said of the companies with the tax incentives to go regional to promote an external economy for Singapore. In announcing the capping of the medical expenses at 2% for tax deduction purposes, the Minister has shared the results of a recent survey of 325 companies conducted by the Inland Revenue Authority of Singapore. I hope the Minister will also share the profile of the 325 companies so that there will be a better appreciation of how the 2% capping is derived. I agree with Mr Teo Chong Tee that the 2% medical capping across-the-board is not equitable to companies with a large number of employees. We must also acknowledge that in most companies the level of medical benefits provided differs between executive and non-executive employees. The executive employees (those who are earning more income) enjoy ward A accommodation when they are hospitalised and it is very much costly as compared with the lower ward accommodation enjoyed by non-executive employees, namely, ward B1, B2 or C. Going by the daily ward fee rates of the restructured Singapore General Hospital, the ratio of the daily fees of ward accommodation of ward A to ward C is in the ratio of 1:10.5. For ward A and ward B2, the ratio is 1:5.5. For ward A and ward B1, the ratio is 1:1.85. Therefore, it is apparent that executive employees tend to incur higher hospitalisation cost. As such, employers and businessmen must take cognisance of this.”
“Sir, I think the Minister forgot to clarify one point which I raised and that is whether the treatment will include ordinary or specialist outpatient treatment.”