Wong Kwei Cheong
Singapore
“Sir, I beg to move, That the sum to be allocated for Head S of the Main Estimates be reduced by $10 in respect of Code SJ 1500. My cut is on job placement and labour market information services. According to the 1995 Economic Survey of Singapore, the unemployment rate in June 1995 was 2.7%, slightly higher than the 2.6% a year ago.”
“Sir, my amendment is on conciliation services. According to the 1995 Economic Survey of Singapore, about 8,800 workers were retrenched in 1995 compared to 9,444 in 1994. Most of them were retrenched from the manufacturing sector, mainly the electronic products and textile and wearing apparel industries.”
“Sir, to help low-income families own 3-room HDB flats, the Government has raised the income ceiling from $1,000 to $1,200 in January 1996. Can the Minister give a report on the number of low-income families that have benefited from this revision? HDB has also bought back 3-room HDB flats from the open market for resale to HDB applicants.”
“Sir, the Minister has announced that with effect from 28th August 1995, the CPF Housing Grant Scheme has been revised as follows: $40,000 grant to be given to first-time buyers to buy a 2-room or larger resale flat. Those married children buying near their parents' home can apply for $50,000 grant.”
“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 WK 3100. Sir, I am speaking on the strengthening of international trade. According to the 1995 Economic Survey of Singapore, exports in 1995 rose by 14% to $168 billion compared to 23% in the previous year.”
“Sir, I beg to move, That the sum to be allocated for Head W of the Development Estimates be reduced by $10 in respect of Code WH 5200. According to the 1995 Economic Survey of Singapore, Singapore's gross expenditure on research and development in 1994 amounted to $1,175 million, up 18% from 1993.”
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“As pointed out by the Member for Changkat, local entrepreneurs are our people. They are Singaporeans. When business is bad, they will cut costs, reduce prices and try to keep the operations going. Retrenchment will be the last recourse but, as shown by past experience, retrenchment is usually the first recourse of the MNCs. They can even phase out the Singapore operations and move away to cheaper locations, but not for the local entrepreneurs. Singapore is their home, their roots are in Singapore. If their businesses are gone, they can try again in Singapore because it is unlikely there is any place in the world that would allow them to try their businesses. It is obvious that for stable economic growth, the Government should pay more emphasis to the promotion and development of local businesses. The Economic Committee has also examined the reasons for the current recession. One of the main reasons was the loss of international competitiveness and the severe squeeze on profitability as a result of labour cost increases unmatched by productivity growth. Consequently, in the last six years, our competitive position has weakened 50% against Hong Kong, 15% against Taiwan and 35% against Korea. This is a rather sad position because in the early '70s when Singapore started on its road to industrialization, we were much cheaper in wage cost compared to these same countries. What has brought about such labour cost increases vis-a-vis our competitors? Our products are exported and compete in the same developed markets of the United States, Europe and Japan. We are similarly affected by the recession faced by the OECD countries. Apparently, these are questions that were not directly addressed by the Economic Committee.”
“But most of these local companies have remained small and dependent on the multi-nationals for business, for technology and some even for finance. The actual state of our economy is no secret. In fact, when I discussed with students of the NUS on their career prospects, the first choice is inevitably a Government job, and the second choice is with an MNC. Not many would want to join a local entrepreneur unless the student is desperate for a job. Whether fortunately or unfortunately, our graduates are indeed now desperate for jobs and many are joining the local entrepreneurs. It is, therefore, appropriate for the Economic Committee to make recommendations to remove impediments and actively promote the growth of local entrepreneurship. Of the many recommendations made, the most important in my view is that relating to finance for small business. The Government has recently established a $100 million fund to assist local entrepreneurs. The most critical constraint faced by local entrepreneurs is that of finance. Administrators of this $100 million fund should bear in mind the long-term benefits of the successful promotion of local businesses. They should not take the short-term view adopted by many bankers, ie, offering one an umbrella when the sun is shining and taking the umbrella away when it rains. Local businesses will face many problems and risks, especially in the first few years. Many will suffer losses. But given sufficient encouragement, especially in the form of finance, some will survive. Administrators of this $100 million fund should bear this in mind and not to withdraw financial support as soon as they see losses in the balance sheets. They should give local entrepreneurs a chance to survive.”
“Mr Speaker, Sir, I would like to join my PAP colleagues in thanking the President for his recent Address to Parliament. In view of the current recession, the President has focussed his Address on our economy. In the '60s, the main objective of our economic policy was to create sufficient jobs for Singaporeans. Our low wages and generous investment incen- tives attracted foreign investors to set up factories in Singapore. In the '70s, we had full employment and our emphasis shifted to upgrading the economy into higher value-added activities. Over the last two decades we have progressed from being a low wage, low skill economy, to one based on high value-added activities and skills. By 1983, Singaporeans enjoyed a per capita national income of $13,800. In terms of per capita income, Singapore ranked 22nd in the world and ahead of many industrialized developed economies. Singapore, in short, has reached a developed country's income level. We, indeed, have a high standard of living. But do we have the economy of a developed country? The Economic Committee has rightly pointed out that we do not have such an economy. Two-thirds of our adult population still have no more than primary education, including 23% who have received no formal education at all. Our economy has grown because many multi-national corporations have set up their plants in Singapore. But these are basically production facilities. Products that they made were designed and marketed by their parent companies in the United States, Europe or Japan. Local companies, of course, will benefit from their presence by providing the supporting services or producing some of the component parts.”
“We will consider the extension to other days of the week as and when business improves and if more people come to these pasar malam activities. MASJID HAJI MOHD SALLEH (Renovations) 7. Encik Abbas Abu Amin asked the Minister for the Environment whether there are plans to repair and renovate the mosque at Palmer Road.”
“Some feel that after three years or five years' stay in Singapore as a work permit holder, one has automatic right of residence, or one has automatic right to marriage. This is not the case. In fact, our policy on approval of marriages must, of necessity, be strict. In fact, the policy is, and should be, not to approve marriages unless there are very good reasons related to the skills on the work permit holder concerned. This may sound harsh. I know I would become more popular if I were to liberalize the work permit restriction policy. However, it will not be doing Singapore any good if I were to do so.”
“We have come to the conclusion that one of the major reasons why the Western European countries have this residual problem of foreign workers is that they allowed the foreign workers rights to bring in their dependants. Secondly, they granted the foreign workers rights of residency. Right from the beginning when we allowed foreign workers to come to Singapore under the work permit scheme, we have been very conscious of this and therefore have been very strict in not allowing the work permit holders to bring in their dependants. However, having been strict on them, if on the other hand we have a liberal policy of allowing the work permit holders to come here to sink roots through marriage, then we will have similar consequences. Large numbers of foreign workers will be here indefinitely or permanently, and sink roots when it was never the intention. In other words, without a strict policy on marriage between foreign workers and locals, our entire immigration policy can be negated and undermined. It is for this reason that we have to be very strict. This is not something which has been introduced suddenly. More than 10 years ago, as early as 1973, the policy on marriage restriction was spelt out and announced, and work permit holders and the local population, Singaporeans, were, in fact, put on notice of our strict policy. If a foreign work permit holder, therefore, knowing the conditions, violates the policy, then he will be repatriated and various disincentives will apply. For those who nevertheless violate the policy, we must take appropriate action as spelt out in the 1973 press statement. Of course, when we get appeals from constituents to MPs, there is a considerable misconception and misunderstand- ing.”
“Our starting point, Mr Speaker, Sir, is really that we have, as mentioned the other day, about 150,000 foreigners on work permits. There are certain important considerations which are fundamental. First, these foreign workers are here for a specific purpose. They are here for execution of certain jobs. Second, they are here for a temporary purpose and it was never intended that they should be here permanently or to sink roots. Thirdly, the vast majority of them would not have been allowed into Singapore for any extended or long periods of time under the normal immigration policy. It is the immigration policy which is the vehicle through which we determine who comes in, who stays for a long time and who can have permanent residence. This large group of work permit holders are therefore persons who would not have been allowed to come in under the immigration policy and they are here therefore under the work permit policy designed for a very specific purpose. They are therefore not here under the normal immigration rules. 3.00pm Secondly, Mr Speaker, Sir, we have studied the experiences of the European countries which, as Members know, are facing very serious problems with their foreign workers who came and stayed. They are very serious problems. I understand that today there are more than 13 million foreign workers in Western Europe living there with their families, and in the host countries where these foreign workers are situated, the foreign workers' population ranges between 5% and 17% of the total population. We have made a study of the experiences and problems in these other countries to make sure that as far as is possible we do not encounter the same pitfalls.”
“Since the Member referred to the lower income group, it may be pertinent for me to point out that those in the lower income group do benefit through subsidies that they may enjoy on the HDB flat. And apart from this, they also enjoy the subsidies from the loans that they take out from the HDB and the interest rate payable on these loans is 6 1/4%. In fact, I am told by the CPF that some CPF members chose to borrow the maximum amount allowed although they may have funds in their Ordinary Account because the interest rate on the loan is 6 1/4% and leave their own CPF savings in the Ordinary Account to accumulate at a higher interest rate. Of course, there are other points to be made. For instance, it would be difficult to differentiate between different groups because as far as the borrower of funds is concerned, the monies are the same, whether they are from the lower income group or the higher income group. In the ultimate analysis, the proposal in short has considerable complications and ramifications. And the Member for Whampoa would appreciate that CPF savings are a very safe form of institutional investment and for the level of safety, the interest rate is certainly very attractive. Mr Speaker, Sir, may I go on to the third point mentioned by the Member for Whampoa concerning the marriage restriction policy. I noted that he said he and other MPs received appeals from constituents where their applications for marriage with work permit holders were rejected. I understand the concern expressed and I am aware of this because I am also an MP and I also get appeals from some of my constituents. Perhaps this is a useful opportunity for me to very briefly explain the reasoning and the policy concerning marriage restrictions with work permit holders.”
“This limits the amount of pollutants emitted by motor cars to within tighter levels. Manufacturers exporting cars to Singapore must certify that their cars conform to these standards, These new regulations are necessary to upgrade our environment. MAIN AND DEVELOPMENT ESTIMATES OF SINGAPORE FOR THE FINANCIAL YEAR 1ST APRIL, 1984 TO 31ST MARCH, 1985 2.53 pm Order read for resumed consideration in Committee of Supply [6th Allotted Day]. [Mr Speaker in the Chair] Head R (cont) - Resumption of Debate on Question [19th March, 1984], "That the sum to be allocated for Head R be reduced by $10 in respect of Subhead RA-01 Object Group 1100 of the Main Estimates." - [Mr Lim Boon Heng]. Question again proposed. The Acting Minister for Labour (Prof. S. Jayakumar): Mr Speaker, Sir, when we adjourned yesterday, I had replied to the first of the three points raised by the hon. Member for Whampoa and was in the midst of the second point concerning different rates of interest. And I had then explained that this proposal had many ramifications which the hon. Member would appreciate. First of all, if the interest on the CPF is raised above 6 1/2%, it will have an impact on the price of HDB flats as well as the interest rate payable on loans from HDB. The HDB does borrow substantially from the Government to fund its housing programme. The Government in turn depends on CPF funds. If the CPF interest rate were to be raised above 6 1/2%, the Government would have no alternative but to raise the cost of money to the HDB. The HDB in turn may have to adjust the prices of flats to take into account this increase in the cost of funding. Furthermore, the interest rate on the loans that it gives to HDB flat owners would also have to be adjusted higher.”
“Mr Liew Kok Pun asked the Acting Minister for Communications (a) what is the passing rate of inspection of cars for each of the tests conducted by, and the overall passing rate of inspection centres in 1983; (b) whether compulsory inspection has resulted in better maintained cars and has thus reduced the level of pollution and the accident rate; and (c) whether in future higher standards of emission level are required of new cars so that motorists will not be unnecessarily penalised. The Acting Minister for Communications (Dr Yeo Ning Hong): Mr Speaker, Sir, 70% of the cars inspected by the inspection centres in 1983 passed the tests at the first attempt. The passing rates for the various individual tests are as follows: 1. Above carriage inspection 92.9% 2. Side slip test 89.5% 3. Brake test 92.9% 4. Under carriage inspection 89.7% 5. Exhaust emission test 54.6% 6. Headlight test 10.6% The inspections have resulted in better maintained cars. For example, before the introduction of the inspections in 1982, several trial inspections were conducted to determine the general condition of cars. Of these, only 30% of the cars inspected passed the tests compared with the 70% today. In fact, the 30% that failed the test at the first attempt eventually passed all tests after modifications and repairs were made. So the pass rate in effect is 100%. Sir, it must be obvious that better maintained cars will eventually lead to less exhaust pollution and lessen the risk of accidents caused by poorly maintained cars. Higher standards of exhaust emission will be imposed in the future. From October this year, all new models of cars imported into Singapore must conform to the standards adopted in Western Europe - the ECE 15.03 standard.”
“Sir, Asean countries are already working together to promote tourism in the region. There is an Asean Sub-Committee on Tourism, one of whose task is to promote the Asean region as a common tourist destination. The committee has produced an Asean poster for display in the key tourist markets and is in the process of producing a film on tourist attractions in Asean. Some years ago, the five national airlines also got together and agreed on an Asean circle fare. The organizing of tours itself is a private business of tourist agencies, airlines and tour operators. They will have to decide whether it is feasible or necessary for them to work with their counterparts in the other countries to organize package tours of the whole Asean region. On their own, some Singapore tour operators are already selling tour packages to Asean countries, either as a package of five countries or a combination of two or three countries. These are meant not only for Singaporeans but are also sold overseas for travellers from outside the region, To support their efforts, the Singapore Tourist Promotion Board is actively promoting Asean as a single tourist destination in its programmes to attract tourists to Singapore. It has brought out brochures promoting this concept, for example, the Asean brochure and cruise ship leaflets with the theme "Bon Voyage - Sail on to Asean." INSPECTION OF CARS (Particulars) 5.”
“These recommendations obviously have wide ramifications and must be studied carefully for many commuters would be affected. My Ministry has also to take into consideration the future operations of the MRT and its effects on bus routes. Obviously it would be to everybody's advantage if disruptive changes can be kept to the minimum. Hence, the need for very careful study. Coming to the second part of the question, Sir, the Kaki Bukit residents at Neighbourhood 7 of Bedok North are now provided with a one-way loop feeder service, that is, Service No. 228. Neighbourhood 7 is presently still partially developed. Many of the blocks are still under construction or unoccupied. The service will be upgraded to a two-way service when the Neighbourhood is completed.”
“My Ministry is encouraging these organizations to set up more childcare centres as part of the policy to encourage women to join the labour force. NTUC is considering setting up more childcare centres in FY 84 and FY 85. The People's Association has plans to set up five centres in FY 84. Furthermore, Sir, my Ministry is encouraging employers to set up childcare centres in factory premises. We will assist those companies located near housing estates which lack space within factory premises to obtain space in nearby HDB void decks for use as childcare centres. The People's Association, NTUC and employers who set up workplace childcare centres will receive from the Government a subsidy for capital cost and recurrent expenditure for the childcare centres. The rates of subsidy introduced last year have been found to be too low. These rates are now under review. COMPREHENSIVE BUS STUDY GROUP (Recommendations and introduction of two-way loop service in Bedok North Estate) 16. Encik Saidi Haji Shariff asked the Acting Minister for Communications if he will report on the recommendations from the Comprehensive Bus Study Group and when Kaki Bukit residents living at Neighbourhood 7 Bedok North HDB Estate can expect the introduction of a two-way loop service of Service 228. The Acting Minister for Communications (Dr Yeo Ning Hong): Mr Speaker, Sir, the Comprehensive Bus Study was undertaken by SBS in 1982. The recommendations covered a wide area and would result in the introduction of 31 new routes, the changing of 62 and the withdrawal of 73 bus routes. They also covered fare structure, traffic management and other bus service issues, such as the type and number of buses required.”
“Mr Speaker, Sir, this depends on the Minister for Law but I hope the introduction of the Bill in Parliament can be done within this year. As to his second question, since the small claims tribunals are meant to help the ordinary consumers, the legislation has to be kept as simple as possible so that the operation of the tribunals can be made as simple as possible. Then the aggrieved parties can bring their problems to the tribunals without the assistance of lawyers. With this constraint in mind, the procedure will be as follows. First of all, the Bill for the formation of these small claims tribunals will have to be passed by this Parliament, after which, a Registry will be set up. The function of this Registry is to take down claims from the aggrieved consumers, i.e. consumers who have been sold defective goods by unscrupulous shopkeepers and so on. It is up to the Registry to try and resolve the dispute or claims between the consumer and the shopkeeper first, and it is only when such claims cannot be resolved by the Registry that the dispute will be referred to the small claims tribunal. CRECHES IN HOUSING ESTATES (Increase in) 15. Mr Liew Kok Pun asked the Acting Minister for Social Affairs whether he will outline his Ministry's plan to increase the provision of creches in housing estates so that more female workers can join the labour force. The Acting Minister for Social Affairs (Dr Ahmad Mattar): Mr Speaker, Sir, there are to date 36 childcare centres run by various organizations in Singapore. Twenty-four of them are in HDB housing estates. Of these 11 are located in HDB void decks and three in HDB play areas. Twenty-three of the 36 childcare centres are run by the NTUC, YWCA and the People's Association.”
“Perhaps one way is for the Member for Geylang Serai to cook his own food!”
“Sir, hawker prices went up by 1.1% in 1983. This was a rather modest increase. Nevertheless, my Ministry will, as in the past, continue to monitor the prices of food charged by hawkers. It will also work with the Consumers' Association of Singapore to expose unscrupulous hawkers who try to profiteer. But I would urge consumers themselves to play their part by not patronizing hawkers who charge exorbitant prices. There are sufficient cooked food centres and hawker centres to allow consumers to be selective. Moreover, all licensed stallholders are required by law to display price tags and consumers should certainly not pay prices higher than those indicated on the price tags.”
“I am pleased to inform him that the charges have been revised downwards, from $2 to $1 for an adult and 50 cents for a child, with effect from 1st March, 1984. The Sentosa Development Corporation is ever conscious of the need to maintain and upgrade the facilities on the island. It welcomes feedback and suggestions from visitors on how it can make the island a better one. In this respect, it is grateful for the attention shown by the Member and hopes that he will continue to visit the island and to give it more comments.”
“Sir, may I first thank the Member for Telok Blangah for his useful comments and for helping us to promote Sentosa Island to tourists. In reply to an earlier question to the House on 17th January, 1984, I have informed the House that the Sentosa Development Corporation would be introducing new attractions on the island. A new gallery to depict the Pioneers of Singapore will be completed this year. A family entertainment park, called Castle Park Entertainment, will be ready sometime in the middle of next year, In addition, existing facilities like the swimming lagoon and the wax museum will be upgraded. With the new facilities and the upgrading of existing facilities, Sentosa will hopefully be up to its mark. It is unfortunate that the Member for Telok Blangah did not find the food at the Sentosa Hawker Centre pleasing to his taste buds. However, feedback from visitors received by the Sentosa Development Corporation revealed that they found the food at Rasa Sentosa to be average, or above average. Some of them even rated the food as being better than that at Rasa Singapura. As for Malay food, I am pleased to inform the Member for Telok Blangah that the Sentosa Development Corporation has found an operator to sell nasi ramast padang on the island. This will widen the choice of Malay food for visitors. The Coralarium at Sentosa, as the Member has pointed out, may not be the best in the world. But the Sentosa Development Corporation has, nonetheless, worked hard to improve it. It has plans to resite the Coralarium to combine it with an Oceanarium. This is now being studied. In the meantime, the Corporation shares the view of the Member that the present range of exhibits at the Coralarium does not justify the admission charge of $2.”
“The PUB management and the PUB's Daily-Rated Employees' Union are actively studying this proposal. However, I must emphasize that this will take some time as it is a major policy which requires careful consideration. The daily-rated employees establishment in the public sector has been in existence for a long time and has developed terms and conditions of service peculiar to itself. The conversion of daily-rated employees to monthly-rated employees will involve changes in these terms of conditions. It is essential, therefore, that all implications of conversions are identified and studied carefully so that workers are not adversely affected. The Civil Service and other statutory boards also have a big daily-rated workforce. In studying this proposal, the PUB will have to consider the implications and repercussions to the public sector as a whole. As to the labour-management relationship in the PUB, the present relationship between the PUB management and the employees' union is good, It is the PUB's policy to develop a labour-management relationship based on openness and mutual understanding. There is regular dialogue between the unions and management at divisional and departmental levels throughout the PUB. The Board recognizes the importance of employee welfare. There is an NTUC representative as well as a union adviser on the Board of the PUB. Another NTUC representative, who is also a union adviser, is a member of the PUB's Productivity Steering Committee, which plans and oversees the Board's productivity policies and objectives. Of course, there is always room for improvement. I would like to assure the Member for Geylang Serai that the PUB will continue to look into ways and means of further improving employee-union-management relationship.”
“Under the Product Development Assistance Scheme, which is reserved exclusively for local companies, 21 grants have been made since 1979, totalling $1.9 million. The hon. Member for Geylang Serai may also like to know that 27% of all tax incentives granted in 1983 went to local companies. If joint ventures with local companies are included, the proportion rises to 50%. On top of these incentives, there is also the New Investment Allowance Scheme to encourage venture capital investments. This scheme has just been announced in the Budget Statement and is reserved exclusively for local companies to. encourage them to go into new technologies. On the third point raised by the Member for Geylang Serai, he has asked about the manpower development plans of the Public Utilities Board. The Public Utilities Board's manpower development plan is geared towards improving productivity and the development of a multi-skilled workforce through systematic training. This year the PUB will spend $4.6 million on staff training, which is $1 million more than last year. Of this amount, 45%, or some $2 million will be on training to enable the daily-rated employees to upgrade themselves. The Board provides many opportunities for the daily-rated employees in this respect. Courses for daily- rated employees include the Apprenticeship Training Programme and the Trade Training Scheme, both of which are conducted by the PUB at its training schools. Sir, I wish to assure the Member for Geylang Serai that the PUB will continue to provide systematic training to improve the skills of all categories of its employees in order to enhance their career development. The Member for Geylang Serai has also asked if there are any plans to convert the PUB daily-rated employees to monthly-rated employees.”
“I would suggest that he leaves such things to the experts to save further embarrassment for himself. He insinuated that the Government deliberately distorts productivity figures to give a rosy picture of the economy. I can assure the House that this is not being done. Nor is it in the interest of the Government to do so. We will want to know the true picture so that appropriate and effective measures can be taken to put things right, We have not flinched from telling the truth even if it hurts. In fact, the Member for Anson would surely have noticed from the Economic Survey that productivity in the manufacturing sector went down by 2.9% in 1982. I now turn to the next point raised by the Member for Geylang Serai who has asked for the type of assistance that my Ministry has been providing to local businessmen to help them expand their business. The Economic Development Board which reports to my Ministry has for several years placed strong emphasis on assisting local businessmen. I will highlight some examples of this assistance. Under the Small Industries Finance Scheme which is used exclusively by local companies, $325 million of loans have been approved for 750 local companies since the inception of the scheme in 1976. Under the Interest Grant for Mechanization Scheme, which is available to all companies in Singapore, $22 million has been given to local companies, This accounts for 65% of all grants under the scheme. 7.30 pm Under the preferential release of workers from the Government Joint Training Centres Scheme, 651 trainees out of a total of 2,324 trainees have been released to local companies. Local companies who take in such trainees are not required to pay the normal release fee.”
“Since 1981, value-added in current prices in the manufacturing sector has been declining because the price of Singapore manufactured goods has been falling. Hence, if the real value-added in 1983 is to be compared with that in 1981, one must adjust for this price effect. When this is done using the figures in Table 2.1 of the Economic Survey as quoted by the Member for Anson, he would find that real value-added per worker in 1983 expressed in 1981 prices was $36,669 compared with $34,419 in 1981. It has therefore gone up, not down, as alleged by the Member for Anson. But even if he were to adjust for the price effect, the Member for Anson would still have made a fundamental flaw on conceptual grounds. He has used value-added figures from the Table in cols. 703-4 of the Economic Survey, ie Table 2.1, which is based on the census of manufacturing. These broader value-added figures, technically called census value-added, should not be used for the purpose of computing productivity because they include the cost of intermediate services, like legal fees, accounting fees, interest payments and rentals which are the contributions of other sectors of the economy. There is yet another reason why the census of manufacturing figures cannot be used. The footnote at the bottom of Table 2.1 in cols. 703-4 of the Economic Survey states that the figures cover only establishments engaging 10 persons or more. They do not include smaller establishments with less than 10 workers but their contribution to the economy is not insignificant. In calculating the overall productivity their contribution to value-added must be taken into account. As Members of the House would have noticed, the calculation of productivity is not as simple as the Member for Anson would have us believe.”
“Sir, I could not have agreed more with the Member for Geylang Serai that our workers were more productive last year. As pointed out by the Member, evidence of this is clearly reflected in various independent surveys, such as the surveys carried out by the Ministry of Labour, the Times Organization and the National Productivity Board, and also in my Ministry's Economic Survey of Singapore. However, as mentioned by the Member for Geylang Serai, the Member for Anson chose to question the reliability of the statistics in the Economic Survey. The Member for Anson said during the Budget debate on Monday, 12th March, 1984, that the Government's claim of a rise in productivity in the manufacturing sector was a lie. According to his calculation, manufacturing productivity has been falling since 1981. This is a serious accusation and even though he is not here at this moment I will show that his calculations are wrong. First, I shall explain in very simple terms what productivity is. Productivity is what each worker has produced on the average. Here, we are talking of real output, that is to say, actual units of production. The effects of increases or decreases in prices are excluded. In statistical terms we calculate productivity by dividing the real value-added by the number of employed people to obtain the real output. In his haste to find fault with Government statistics, the Member for Anson has got himself completely mixed up. He failed to realize that the productivity growth figures quoted in the Economic Survey of Singapore referred to real value-added per worker, whereas his own calculations were based on current prices. In other words, the Member for Anson made the unforgivable mistake of comparing apples with oranges.”
“I would say this is partly a result of our promotional effort on the emphasis of good human relationship, cooperation and trust that leads to higher productivity. In 1980, there were a total of 484 industrial disputes referred to the Ministry of Labour. This dropped to 392 in 1981 and in 1982 the figure was further reduced to 311.”
“In 1982, a total of 6,204 participants enrolled for our management and supervisory courses compared to 3,157 participants who enrolled for similar courses in 1981.For the seminars and workshops organized by NPB, a total of 7,073 participants went through those seminars and workshops in 1982 compared to a total of 1,552 in 1981. NPB has a total of 48 full-time trainers and relies heavily on external trainers for most of the courses. In 1982, a total of 243 external trainers were engaged. These external trainers came from industries, Government ministries, the University and the Polytechnics, and overseas organizations. As to consultancy, the NPB concentrates its efforts in helping companies to set up QC circles and work excellence committees. In 1982, a national registration centre was set up by the NPB and, to-date, 760 QC circles were registered. These QC circles came from about 68 organizations and a total of 5,629 workers participated in these QC circles. Our efforts in the training of supervisors and workers were mainly directed towards the training of such personnel in forming QC circles and in the forma- tion of work excellence committees. To-date, about six companies have already successfully set up work excellence committees and three other companies are in the process of forming their own work excellence committees. As to the effectiveness of our training courses it is difficult to measure directly but NPB carries out industry surveys regularly and in a recent industry survey we certainly found an improvement in the cooperation, trust and teamwork between the workers and the employers in the companies surveyed. On a national level, there has been a drop in industrial disputes.”
“Sir, since the beginning of 1981, the National Productivity Board has embarked on a programme to increase the productivity of our workforce through promotional activities, training and consultancy. In our promotional activities we were assisted by the National Productivity Council which was formed in September 1981. The NPC consists of representatives from the various employer groups, senior Government officials and the NTUC representatives. We have organized many seminars and exhibitions in promoting the concept of productivity and much support has been given by the employer groups, especially during the productivity month in November last year. In a survey carried out recently by the Times Organization, it showed that about 94% of the workers surveyed were aware of the importance of productivity to Singapore. Productivity awareness, however, is only the first stage of our programme. The next stage is training. As indicated by the Minister for Finance, there has been a big increase in applications to the Skills Development Fund and many companies are turning to training, especially in these recessionary times. For those companies that do not have in-house training facilities, they have sent their workers for training in institutions, like the National Productivity Board. The Member for Geylang Serai has enquired about the subsidies for the training courses organized by NPB. For all our training courses, we charge to recover our full operating expenses. The subsidies that companies do receive will be subsidies from the Skills Development Fund. In fact, there was a large increase in the training programmes organized for managers and supervisors by the NPB.”
“The majority 80% are headed by managing directors. I suppose the balance of 20% could be managed by the production departments, as I have indicated. 7.45 p.m.”
“The two Members have already spoken on safety inspections. He is referring to the same Subhead.”
“Sir, on a point of order. I am afraid the Member for Anson does not know what he is talking about. This Subhead deals with labour inspections, in particular, inspection of safety worksites and so on. If he wants to talk about terms of employment, he should refer to another Subhead, i.e. under Subhead RC-02.”
“As to the worry of the Member for Anson about sanitary conditions, I am sure the inspections carried out by my inspectors, in particular, on the safety aspects, are far more important than the toilet conditions of the sites that they are visiting. For his information, adequate measures are taken to ensure that in the event that the employers violate the rules, especially safety rules, the Ministry will take the necessary action to fine them. In fact, in 1982 a total of $136,500 were collected as fines compared to $110,175 collected in 1981. For more serious offences, the employers were prosecuted. In fact, in 1982, 33 employers were prosecuted for offences in relation to violation of rules.”
“The question raised by the Member for Pasir Panjang on the shortage of Malay instructors is only a teething problem which the National Productivity Board will have no difficulty in eventually overcoming. Action is already being taken to recruit the requisite number of Malay instructors for the course. Other instructors will be recruited when the need arises. Response of the contractors to the Safety Orientation course, however, has been disappointing. My Ministry is considering measures to encourage contractors to send workers to attend the course. The Ministry may in the near future require contractors applying for new or renewal of work permits to ensure that a certain minimum percentage of workers have undergone the Safety Orientation course. The Member for Boon Lay also brought up the question of the control of safety committees. Contrary to the impression formed by the Member for Boon Lay, the many safety committees are under the control of the production department. A recent survey conducted by my Ministry revealed that more than 80% of the committees are chaired by managing directors or top management representatives. I would also like to inform the Member that my Ministry, besides organizing campaigns and training courses, has been closely monitoring the safety situation of the industry. For industries that are problematic, special enforcement exercises are carried out. For instance, my Ministry has conducted special inspection exercises on power presses in metal-working factories to ensure that they are properly guarded. Similar enforcement exercises are carried out at construction worksites to ensure that proper work platforms, barricades and overhead shelters are provided.”
“However, such enforcement measures alone will not be sufficient to ensure a safe working environment. The root of the problem is that our workers and contractors are not safety-conscious. A more effective solution would be to inculcate greater safety consciousness amongst workers and contractors and to motivate them to adopt self-regulatory measures at the worksites. No doubt, the Member for Pasir Panjang will agree with me that this is an uphill task, particularly if he has followed recent statements in the press made by some professionals who openly ridiculed protective gears and safety measures. Efforts must be made to promote self-regulation at worksites. The law requires that worksites employing 50 or more workers to form safety committees. I agree with the Member for Boon Lay that members of safety committees should be given appropriate training for them to be effective. In fact, safety supervisors who are usually secretaries of the safety committee have been trained in accident prevention. While the training of supervisors and members of safety committees is important, we have not neglected an equally important aspect of the training of workers at worksites. The Safety Orientation course on accident prevention designed for workers is currently conducted by the National Productivity Board. In this course, hazards and safety measures are illustrated by slides and films. Since emphasis is placed on teaching simple concepts of safety, extensive use is made of visual teaching materials. Workers should have little difficulty in following it, especially when guided by instructors. These courses are presently conducted in Mandarin and English. It will also be conducted in Malay.”
“Sir, may I first thank the Member for Pasir Panjang and the Member for Boon Lay for their concern for the safety of workers. I am not too sure if the hon. Member for Anson is really concerned about the safety of workers or about their toilet habits, but I will come to that later. As I told the House on 4th March, 1983, the number of accidents in the construction industry has increased from 1,073 in 1981 to 1,460 in 1982. The number of deaths has also increased from 28 in 1981 to 49 in 1982. Measures that my Ministry has taken to improve safety in the construction industry include more stringent enforcement, particularly on the provision of work platforms, barricades and overhead shelters. Further, my Ministry will not renew or grant work permits to foreign workers employed by recalcitrant contractors. We are also considering revoking work permits of existing workers of such contractors. Turning to the question raised by the Member for Pasir Panjang, I would like to explain that the Ministry conducts surprise inspections in addition to routine inspections. For routine inspections, my Ministry adopts a policy of selective enforcement which is based on the hazards associated with the various stages of construction and the safety records of contractors. Generally, the more hazardous worksites with high-rise construction are inspected about once every four weeks. Worksites of contractors with unsatisfactory safety records are inspected once every three weeks. Surprise inspections are carried out on worksites of contractors who persistently flout safety rules. Contractors whose worksites are found to be grossly unsafe were ordered to stop work, and fined. Surprise inspections and routine inspections have a deterrent effect on contractors.”
“The other 12% and the employees' own contribution of 23% will as usual go to the CPF. There is no question of employers having to pay more under the scheme. The 10% which would have gone to the CPF is now redirected to the trust under the Cowec scheme fund. The only burden to the employers is in the administration of the scheme and this is not onerous or expensive. In any case, they will reap the benefits of a more loyal work force. The problem of employees feeling underpaid also does not arise. Under the scheme, employee's take-home pay will not be affected at all. They will not be asked to make additional contributions. In fact, employees tend to gain from the Cowec scheme. The 10% which will be administered by the companies can still be used to finance housing and other approved schemes under the CPF. The higher investment income which the companies can earn for them will be used for more welfare benefits. To top it all, the 10% principal sum will be safeguarded by a banker's guarantee. Mr Sia Khoon Seong: Sir, I beg leave to withdraw. Amendment by leave, withdrawn. The following amendments stood on the Order Paper Supplement -”
“Mr Deputy Speaker, Sir, I am answering on behalf of my Minister. May I first thank the hon. Member for Moulmein for drawing the attention of this House to the Cowec scheme. For the information of hon. Members, Cowec is the acronym for Company Welfarism from Employers' Contributions. The possibility of using a portion of the CPF for company welfare benefits was first indicated by the Prime Minister in his National Day Rally speech of August 1981. The National Productivity Council (NPC) was set up in September 1981 and one of the first issues considered was the use of CPF monies for company welfare benefits. After much deliberation, the NPC was able to draw up a set of guidelines for the implementation of company welfarism from employers' contributions. Conceptually, the Cowec scheme aims to link workers' contributions with company performance and good management. In countries where there is an absence of this linkage, the result has been an erosion of the will to work and the will to improve performance. While the welfare of the workers is cushioned by state subsidies and state welfare, they have become unmotivated and unproductive. We need to be vigilant to ensure that this does not happen to our economy. It is to reinforce and enhance the nexus between the employees and their company that the Cowec scheme was proposed. Cowec will be a voluntary scheme for both employers and existing employees. For this reason, it is necessary to give it time to develop and become generally accepted. We will therefore start with a few pilot companies. Under the Cowec scheme, companies will be allowed to retain 10% of the 22% that employers contribute to the CPF in a trust fund to be set up for workers' welfare.”
“Mr Speaker, Sir, the guidelines issued by the Ministry of Labour have been distributed to all concerned, i.e. employers and employer groups for implementation. The Industrial Health Department of the Ministry of Labour is monitoring and helping such employers to implement these guidelines. The Ministry is also liaising with the Department of Scientific Services of the Ministry of Health to ensure that the level of radiation remains at a low level so that the guidelines will continue to be kept by these employers and they will ensure that radiation will not be harmful to the workers. As for legislation, up to now -we have no evidence that radiation is harmful to workers. If the Member for West Coast has any such evidence and is able to show us such cases, I am sure the Ministry will be very happy to look into these instances. If there are sufficient cases to justify it, we will certainly consider legislation. On the point about cumulative effects, as long as the workers exposed to VDUs have sufficient break periods, for example, a 10-minute break after every two or three hours or lunch break which the worker would normally take, then it has been shown that the cumulative effects of such radiation are not harmful at all to the worker's health. COMPREHENSIVE BUS STUDY (Findings) 6. Mr Rohan bin Kamis asked the Minister for Communications and Minister for Labour if he will report on the findings of the Comprehensive Bus Study conducted by the Singapore Bus Service with the assistance of the London Transport International recently and when can residents of Telok Blangah and the neighbouring estates expect the introduction of a direct bus service between the Bukit Merah Interchange and Ang Mo Kio Interchange.”
“Mr Speaker, Sir, from our records in the Ministry, many of the accidents in the construction industry have been due to the carelessness of the workers. For the exact statistics, if the hon. Member will write to the Ministry, we will be happy to supply them. TELOK BLANGAH/RADIN MAS AREA (Football field) 9. Mr M.K.A. Jabbar asked the Minister for National Development whether the Housing and Development Board has any plan to provide a football field in the Telok Blangah/Radin Mas area for the youth there.”
“BUILDINGS AND COMMON PROPERTY (MAINTENANCE AND MANAGEMENT) (AMENDMENT) BILL Order for Second Reading read. 7.10 p.m.”
“The purpose of the Bill is therefore to provide for the imposition of a levy on employers and contractors employing certain classes of foreign workers and to enhance the penalties for employing foreign workers without work permits and for working without work permits. Clause 3 of the Bill seeks to enhance the present penalty for employing a foreign worker without a work permit and for working without a work permit to a fine not exceeding $5,000 or a term of imprisonment not exceeding one year or both such fine and imprisonment. Clause 4 of the Bill seeks to empower the Minister to make an Order to provide for the imposition of a levy on employers of certain classes of foreign workers. Any Order made by the Minister can apply to employers who employ foreign workers with work permits as well as those who employ foreign workers without work permits. This is to ensure that employers do not avoid the levy by employing foreign workers without work permits. The clause also seeks to provide for the imposition of a penalty interest on any employer who fails to pay the levy within the prescribed period. The penalty interest shall be calculated at the rate of 2% per month, or the sum of $5, whichever is the greater, but the total penalty shall not exceed 20% of the amount of levy outstanding. Any levy and penalty due from and payable by an employer can be recovered as a debt to the Government. Sir, I beg to move. Question put, and agreed to. Bill accordingly read a Second time and committed to a Committee of the whole House. The House immediately resolved itself into a Committee on the Bill. - [Dr Wong Kwei Cheong] Bill considered in Committee; reported without amendment; read a Third time and passed.”
“Mr Deputy Speaker, Sir, on behalf of my Minister I beg to move, "That the Bill be now read a Second time." Sir, it is the Government's plan over the next 10 years to minimize our reliance on foreign workers and, as far as possible, to build up a wholly Singaporean workforce. Therefore, work permit holders, other than those who are likely to be absorbed into our permanent workforce, will gradually be phased out over that period. For those foreign workers who are not likely to be part of our permanent workforce, there is no need for them to contribute to the Central Provident Fund. However, to exempt these foreign workers from the CPF Scheme will make it cheaper for employers to hire such foreign workers. To discourage employers from indiscriminate recruitment of cheaper foreign workers instead of upgrading through automation and mechanization, a new Levy Scheme for foreign workers was announced early this year, and implemented with effect from 1st April, 1982. Under this Levy Scheme, employers are required to pay a monthly levy of 30% of the monthly wages of their foreign workers subject to a minimum of $150 per month. The minimum levy, however, does not apply to domestic help. Along with the move to discourage indiscriminate recruitment of foreign workers, it is logical to step up enforcement against illegal employment and enhance the penalty for such offences. The present penalty for employing a foreign worker without a work permit and for working without a work permit is a fine not exceeding $1,000 or a term of imprisonment not exceeding six months or both such fine and imprisonment. This penalty was fixed 16 years ago. It is no longer adequate to deter employers and illegal workers from contravening the Act and must therefore be enhanced to serve its purpose.”
“Mr Speaker, Sir, in answer to the first part of the question, as long as the average number of hours worked over a period of three weeks for shift workers is not more than 44 hours per week, then employers and employees can have agreements whereby such work can be carried out. As regards the second part of the question, Sir, workers working on a 12-hour shift will be having more off-days, and this will help them to save transport costs and the additional off-days will be an incentive for them to go and work the 12-hour shift even though they may have to work in the night shift. MEDISAVE SCHEME (Details) 8. Mr Goh Chee Wee asked the Minister for Health (a) if he can furnish details of the proposed Medisave Scheme; and (b) whether the proposed Scheme will affect the medical benefits schemes currently being offered by employers and whether it will not discourage employers from providing medical benefits to employees which are normally covered by collective agreements between the employers and the unions.”
“Mr Speaker, Sir, in Singapore, 2,184 cases of noise-induced deafness have, so far, been confirmed. The Ministry certainly feels that noise-induced deafness should have the protection of a statutory medical examination. As regards the second question by the Member for Thomson, we believe that the Ministry of Health is taking into account the preventive health care of workers in its 20-year National Health Plan and the Ministry of Labour will certainly consult with them on this subject. Coming to the Member for Buona Vista on his suggestion of forming an association for the prevention of industrial accidents, the Ministry will certainly look into this matter.”
“Promotional activities, such as seminars, campaigns and publications, will be launched to create a conducive atmosphere for the adoption of safe work procedures.”
“It was, therefore, decided not to proceed with the setting up of SINOSH and to allow NPB to discharge the functions of SINOSH. The Ministry of Labour, therefore, in November 1981 transferred the approved posts, and planned activities for SINOSH to NPB. Since then, NPB has established a new unit, the Occupational Safety & Health Unit to undertake the activities envisaged for SINOSH. In addition, an Advisory Committee on Occupational Safety & Health has been formed to advise and assist NPB in the planning and implementation of these activities. In 1981, NPB conducted safety training courses for managers and supervisors in the shipyard, construction and general manufacturing industries. A one-day safety instruction course was also mounted for shipyard workers to educate them on safe working habits while at work. About 6,900 workers were trained, Besides this, a top management seminar on safety in petrochemical plan operations was organized in November 1981 for 63 management executives. NPB also hosted a regional seminar on industrial safety and health sponsored by the Asian Productivity Organization. Twenty-five participants from the member countries and Singapore participated in the week-long seminar. In the coming years, NPB will further upgrade its safety training programmes. 300 safety officers will be trained over the next five years. The training of Safety Committee members will be introduced. NPB is also in the process of recruiting medical personnel for its occupational health activities and is looking for suitable premises to house its occupational health laboratory and facilities. The target is to train 120 Industrial Hygienists, 19 nurses and 100 workers working in industries within the next five years.”
“From time to time the Ministry will also be issuing guidelines to assist doctors in their role in advising industry on occupational health. The reason why we have to designate doctors and to provide them with additional training is that the curriculum for the under-graduate training of doctors is inadequate in the field of occupational health. This is found to be so even in other countries, for example, in Scandinavian countries, training is provided to doctors who want to specialize in occupational health. However, even with designated factory doctors, doctors who have not undergone any training in occupational health can continue to assist in providing curative services to the workers. Amendments to the Factories Act are now being drafted. Following these amendments, regulations for such statutory medical examinations will be introduced. Coming now to the Member for Buona Vista on his queries on the Singapore Institute of Occupational Safety and Health (SINOSH). SINOSH was to be established to promote awareness of industrial safety and health and to provide training, consultancy and research in industrial safety and health. A study of other institutes in the United States, France, Japan and India showed that such institutes undertook mainly research in industrial health and safety problems. Promotion, training and consultancy were secondary activities which were undertaken by governments, voluntary private institutions and private employers. In view of this, it was considered not necessary to establish an institute to undertake promotion, training, consultancy and research in industrial safety and health. Moreover, the National Productivity Board is already undertaking a large part of training in industrial safety and health.”
“Sir, the Member for Thomson touched upon compulsory medical examinations as well as designated factory doctors. However, I have to clarify that the health of workers is the responsibility of the Ministry of Health. The Ministry of Labour will take care of the industrial health and safety of workers. The Ministry of Labour intends to introduce compulsory medical examinations, as suggested by the Member, so as to cover a range of industrial occupations with specific health hazards, such as work involving exposure to arsenic, cadmium, cotton and lead. The Member for Thomson is correct in saying that many industrial diseases, such as noise-induced deafness, silicosis and asbestosis, develop gradually over a number of years. Thus, regular periodical medical examinations of workers exposed to such hazards would detect the diseases in the early stages when remedial action could be taken. Singapore will not be unique in introducing compulsory medical examination. In other countries, such as the US, the UK and several European countries, compulsory medical examinations have been in practice for years. In Australia there is also prescribed examination for specific occupations. 3.30 p.m. With the introduction of compulsory medical examinations, the Ministry agrees with the Member for Thomson that certain doctors be designated factory doctors for the purpose of carrying out such examinations. The Ministry plans to arrange with the National Productivity Board and the National University of Singapore to run short part-time training courses to equip doctors in the carrying out of the prescribed examinations, interpretation of results, and in advising factory occupiers on the prevention of occupational diseases.”
“To enable safety personnel who do not possess the requisite academic qualifications but with the relevant experience to be trained as safety officers, the National Productivity Board has also conducted a pre-qualifying examination in January this year. Successful candidates will be accepted for the safety officers training course and will be eligible for registration on completion of the training. In addition, to ensure an adequate supply of safety officers, the National Productivity Board will step up the training of safety officers. The Ministry is also reviewing the need for the services of safety officers for the various industries and the legislation on the requirements of prerequisite qualifications and duties of safety officers to be employed by the various industries. The Member for Pasir Panjang also mentioned about safety courses to be run for workers by the National Productivity Board. I am pleased to inform the hon. Member that the NPB is already conducting safety courses for managers, supervisors and workers as follows. In 1980, a total of 20 training programmes were conducted for a total of 572 participants. Last year, in 1981 a total of 229 training programmes were conducted for a total of 11,555 participants.”
“Sir, I would like to thank the hon. Member for Pasir Panjang for his concern over the industrial safety of our workers. On the point made that the formation of safety committees be extended to the woodworking, construction and metal-working industries, the hon. Member may wish to know that the Factories Act does provide for the formation of safety committees at any factory which employs more than 50 members. This provision covers the woodworking, metal-working and construction industries. 3.15 p.m. I also share the hon. Member's concern over the sufficiency of inspectors available to check and monitor the effectiveness of the safety measures at workplaces. The Factory Inspectorate presently has an established strength of 64 inspectors, It manages to effectively monitor safety measures at workplaces through a scheme of selective enforcement. In this -scheme, factories and industries which have been identified to be hazardous are inspected more frequently than those that are less hazardous. For instance, large shipyards are inspected as frequently as once a week. To maintain the present level of surveillance, the Inspectorate is sufficiently staffed. The Member also asked about safety officers. Under the current legislation, about 240 safety officers are needed to meet the demand of factories which are required to employ safety officers. At present, the Ministry has registered about 150 safety officers. The shortage of 90 safety officers is expected to be overcome in the near future when the trainees from the next few batches of the National Productivity Board's safety officers training courses successfully complete the course.”
“Dr Ang Kok Peng asked the Minister for Communications and Minister for Labour whether he will consider crediting the penalty interest collected from an employer, on account of late or non-payment of contributions to the Central Provident Fund, to the affected subscribing member's account and, if not, why not; and how such member can be adequately compensated for loss of interest on money that has legally been his.”
“Mr Speaker, Sir, there were a total of 1,085 accidents in 1981. Of these, 28 were fatal cases and another 25 involved permanent disablement. This compares favourably with that for 1980 where a total of 927 accidents were reported, with 32 fatal cases and 10 cases of permanent disablement. In terms of number of fatal accidents per thousand workers, the situation has improved slightly from 0.49 to 0.38. On the whole, it can be said that the accident situation in the construction industry is under control. However, in view of the move to promote mechanization in the construction industry and the increasing influx of new and non-traditional sources of labour into the industry, it is envisaged that the number of accidents will again take an upward trend if the proper measures are not taken. Although the fatal accident frequency rate appears to have been stabilized, it must be pointed out that the safety situation in industry is very dynamic. There is a very thin line between near-misses, minor accidents and the fatal ones. Our statistics show that falling objects and workers falling still account for some 60% of the accidents in industry. A worker struck by a falling object can sustain slight injuries or be killed instantly. Therefore, it can be appreciated that any accident within this category is potentially fatal. Against this background it is imperative that concerted efforts must be made to improve safety measures in these two areas. The increase in expenditure in safety provision is therefore justified. CENTRAL PROVIDENT FUND (Penalty interest for late payment) 3.”