Head S – Ministry of Manpower

Emerging Labour Market trends

Mr Zainudin Nordin (Bishan-Toa Payoh): Mdm Chair, I beg that the total sum to be allocated for Head S of the Estimates be reduced by $100.

Mdm Chair, our economic achievements and rapid industrial developments have given us much to be proud of. Despite our lack of resources, our people are industrious and persevering. Singapore has become, without doubt, a city with a global reputation for prosperity and rapid growth.

Yet, we remain vulnerable to rapid, worldwide economic changes and disruptive technological advancements. Within our country, demographic changes to our workforce pose a major challenge. All these have been evident since our struggles in the early days when we started modernising and experiencing different phases of development.

Countries all over the world have become more connected and inter-dependent than ever through globalisation and the influential nature of the social media. The changes occurring throughout the world potentially affect us, and they are happening at a rapid pace. Terrorism, the risk of pandemic outbreaks, and natural disasters: all these lead to a myriad of disruptions, from greater border restrictions to shortage of raw materials. Coupled with ever-changing regional geopolitical landscapes and an uncertain economic outlook, our workforce will continue to face more challenges. We need to be prepared so that we do not get caught unaware.

Furthermore, Mdm Chair, in the last few years, the Government had also emphasised the need for Singapore to restructure our economy and our industries for a sustainable quality development. As a result of the strategic changes, the companies operating in Singapore and many of our local SMEs face real acute manpower challenges. In the construction and building sectors, services and marine industries, we hear regular feedback and complaints of shortages of workers. Equally we also hear the loud rumblings of workers complaining about of stability of employment and the lack of opportunities for good paying jobs and career advancement.

In this respect, I would appreciate it if the Minister could shed light on some of the emerging labour market trends. What will Singaporeans have to do to contribute to and benefit from the next phase of our economic development? How can we tap on overseas markets for our continued growth and mutual benefits?

Mdm Chair, I believe some of the areas we can look into will include employment statistics, size and composition of our workforce, and viable economic activities that other countries are engaged in. We will also need to look into solving potential problems, such as employment inequalities, as well as how to help the more vulnerable groups like senior citizens, the women folk who have rejoined the workforce after years of not working, and low-income workers.

Allow me now to touch on the issue of the development of Singaporeans to take up senior management positions. We should continue to develop our Singaporeans and groom them for leadership positions in all industries. According to the results of an American Management Association (AMA) survey that was published in 2011, executives say the typical knowledge and skills in the areas of reading, writing, and arithmetic – or the three Rs that we all know – are no longer sufficient for managers. To ensure success in the workforce of the future, the three Rs need to be fused with four other skills, the four Cs, namely, critical thinking and problem-solving skills, communication skills, collaboration skills, and, creativity and innovation skills.

We all know and believe the four Cs have become even more important to workers and their employers now and in the future, mainly due to the increased pace of change in business, the movement toward global competitiveness, how work is accomplished, and the way companies are structured.

The understanding of the needs of the future leaders and manager has direct implications for management development for our industries and companies. Companies are looking for workers and talents that would make a difference and are impactful to their organisation. They understood that without workers with the four C skills, companies may not be competitive in the global marketplace. So, I would like to ask: do we have enough Singaporeans with such qualities for leadership positions in our industries now and in the future? Are we providing the resources and enough impetus through the SkillsFuture programmes to allow for more Singaporeans to rise to one of these industrial leaders? If we want those objectives to be achieved, it means that we must ensure we create a development plan for our workers to obtain all the necessary knowledge and skills to succeed, including the four Cs.

I believe that once our local talents and workers know which knowledge and skills are needed, then the plan to acquire them can be created. Moving on, how do we assist them to acquire that know-how? We should widen the learning platform and opportunities beyond the traditional ways of learning using books and classrooms. The SkillsFuture should allow for a flexible and open learning environment through: one, one-to-one coaching and mentoring; secondly, professional development and training; and thirdly, in-house job training and rotation.

Bottom line, Madam, is SkillsFuture should allow for workers to evaluate their knowledge, their skills, their strengths and weaknesses, create a career development plan, find career coaches and mentors, and focus on continuous learning throughout their entire career.

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This could develop Singaporeans to take up senior management positions. In my view, this can be another form of CET not just through attending training courses but also through what firms can do internally to systematically develop their Singaporean professionals, example through challenging postings. Not only will we be developing talents, this will also allow for more Singaporeans to fulfil their aspirations and build local workforce competitiveness.

So, my last question is can SkillsFuture be a platform to develop leadership, and develop more capabilities so that we can groom future leaders in our industries.

The Chairman: Mr Karthikeyan, you have two cuts, please take them together.

Reflecting the Voice of the Workers

Mr K Karthikeyan (Nominated Member): Mdm Chair, I am reflecting the voice of the workers. If you ask anyone whether their pay or wages is high, the answer is a firm no. Therefore, what are the key things worrying?

We live in Singapore with only CPF savings, and no personal savings. We need at least a disposable income of $900 a month. Statistics in MOM were shown many Singaporeans are earning below $1,000 in basic wages. I am concerned with wage and bonus growth with the slowdown of Singapore's economic growth, especially for the low-wage workers.

Mdm Chair, within unionised sector, wages and bonuses shrank last year to three months bonus and 4.1% wage increase versus 3.16 months' bonus and 4.63% wage increase in 2013.

The recent MOM Employment Situation Report 2014 also shows that median income growth has moderated, that is median gross monthly income increased from $3,250 in 2013 to $3,276 in 2014, an increase of 0.8%, as compared to an average of 4.8% from 2009 to 2012. This is excluding CPF.

I laud Deputy Prime Minister for the extension of Wage Credit Scheme for another two years and all companies should take this opportunity to improve the wage situation of their workers.

In 2011 Budget statement, Deputy Prime Minister Tharman states that real wages will grow by 30% in 10 years' time and to achieve this, every company should innovate and improve their productivity. This wage growth should go to the low- to middle-income workers. Many of our workers are concerned that wages might stagnate or even deteriorate if nothing is done. With Government supporting in this Budget for labour cost and CPF changes through Enhanced Temporary Employment Credit, organisations can tap on to improve our wage situation. To ensure that our workers can continue to receive wage increases, productivity must improve and more needs to be done in this area.

As I have said in my Budget speech, progressive wage model is a known way of improving wages and productivity in my OPEC cluster and many others. It is a more sustainable approach to achieve long-term wage growth. Will MOM monitor the situation and license the Progressive Wage Model (PWM) to more industries. If the situation does not improve after a certain time, can MOM form a sectoral tripartite work group to spearhead PWM with SkillsFuture and sectoral and manpower planning.

Skilling and Re-skilling for Workers

On my second cut, I used to frequent a retail outlet near my office. There, one cashier will tap the total amount of my purchases, and another one will put the goods into the bag, and four others are standing around and talking. I do not think the workers want to complain as they will be out of a job. Companies do not want introduce any technologies as workers are cheap and many are foreign workers too, and the replacement cost of high technology is expensive.

With programmes like Inclusive Growth Programme (IGP) and many others, companies can take advantage, but will they? If you look at manufacturing sector, there is also a risk of job loss, and we urgently to re-skill our workers. Workers in the manufacturing sector are at risk of losing their jobs because the sector is gradually hollowing out.

Last year, eight manufacturing companies within the unionised sector shifted out of Singapore to Thailand, Malaysia and China, due to rising costs, weak business and ongoing restructuring. These companies considered the abundance of workers in these countries, among other factors such as political stability.

With the on-going restructuring and retrenchments, we need to re-skill our workers so that we can keep pace with restructuring and displaced workers can be gainfully employed. The Productivity & Innovation Credit (PIC) extended till the year of assessment 2018 will support the companies to improve productivity. I urge all companies to take advantage of this.

If companies are not more forthcoming to identify gaps, redesign work, review work processes, then we are not very hopeful that we can have any quantum leap improvement in productivity. Ultimately wages are linked to productivity. So, this is important to us, the Labour Movement. Will MOM monitor the initiatives implemented by companies before approving the quota of foreign workers in their organisations?

Linking Skills and Education with Industry Needs

Mr Thomas Chua Kee Seng: Mdm Chair, in Mandarin.

( In Mandarin ) : [Please refer to Vernacular Speech.] Mr Chairman, the key message of my speech today is to review the foreign worker policy in view of changing circumstances. Last year, as Deputy Prime Minister Tharman announced in his Budget statement, he mentioned a slew of measures to curb the growth of foreign labour. After enforcement, the impact, both positive and otherwise, was evident. Hence, when the Deputy Prime Minister announced that the scheduled increase in foreign worker levy would be deferred, it was a relief to many businesses. However, the foreign worker levy and quota continue to impose a heavy burden on all businesses.

In the beginning, the Government established the foreign worker quota and imposed the foreign worker levy with these objectives in mind. One was to ensure the employment opportunities of Singaporeans, and another, because it did not want companies to go the easy way out and rely too much on cheap foreign labour. Following the rapid growth of the economy, Singaporean workers in the construction, marine industries, manufacturing and other industry sectors are practically non-existent at the blue-collar level, and there is no longer any fear of their jobs being taken away by foreign workers. Singapore has become an ageing society. On top of this, the focus of the SkillsFuture initiative is in training up local young people in the high value-added growth industries. We can anticipate that the more dirty, strenuous and hazardous industries would have to count on foreign workers.

Hence, what is most troubling is the meaning behind the continued imposition of the foreign worker levy. If the purpose is in curbing the numbers of foreign workers, the stringent quota system would already suffice. If there are certain jobs which rely on the recruitment of foreign workers, paying a high foreign worker levy would only serve to increase business overheads, and erode the companies' competitiveness. This is not a paltry sum. Taking the construction sector as an example, the lowest foreign worker levy was $180 in 2011, and the highest was $380. By 2014, the lowest became $300 while the highest was $950. If the quota system could attain the objective of curbing foreign worker numbers, then could we not consider lowering the foreign worker levy?

Times are moving ahead; our population structure is also changing. We now have a more highly-educated population than ever before, and the foreign workforce should continue to contribute to the economic development of Singapore. We should be more tolerant in our approach towards foreign workers, and appreciate what they have done. Without their contribution, we could never have built up a beautiful garden city. We keep urging enterprises to upgrade and change their business models. However, construction sites still need skilled workers and non-skilled workers. Moreover, trained skilled workers will no longer be willing to work in manual jobs.

Hence, I would like to suggest that the Ministry of Manpower re-examine its foreign worker policy, especially with regard to the foreign worker levy's charges, and instead use the quota system to control the influx of foreign workers, so as to alleviate the burden on enterprises.

SkillsFuture

Mr Low Thia Khiang (Aljunied): Madam, the SkillsFuture initiative has the potential to transform our human capital development, which will increasingly drive economic development at the national and individual level. To achieve our objective, it will need to be properly implemented.

I would like to know the road map for implementing the various programmes under the SkillsFuture initiative.

I hope that the SkillsFuture Council will educate both local and foreign companies about how they can draw on Singaporean talent from our educational institutes using schemes like Earn and Learn, as well as the various benefits of hiring Singaporeans, such as 90% subsidy for training for employees above age 40.

SkillsFuture Leadership Development targeted to support career progression of the PMET. I understand that EDB currently has a programme on this. I would like to know how does SkillsFuture initiative strengthen the programme or will there be new programmes?

SkillsFuture, together with the MOM's Fair Consideration Framework, should ensure that Singaporeans face equal opportunities for hiring and career progression in all companies. We should also work with employers to identify any gaps in Singaporean employability and promotion-readiness, and fix these issues in the education sector.

Some commentators have said corporate leadership success requires qualities other than cognitive intelligence – such as communication skills, social skills, initiative, diversity of thought and confidence. We should ensure that our education and training landscape equip Singaporeans with the ability to compete for career progression on their own merits.

There should be no glass ceilings for Singaporeans. Nor should we accept gaps in the employability or career-readiness of Singaporeans.

Quality Outcomes in SkillsFuture Courses

Assoc Prof Randolph Tan (Nominated Member): Madam Chair, I declare my interest as an employee of UniSIM, which has a large enrolment of working adults

SkillsFuture is a long-term initiative, and the credits are an avenue for individuals to assume control of and chart their personal long-term endeavour. They also serve as an affirmation to workers of the importance of taking the initiative to undergo continuous upgrading.

Together with the enhanced education and training subsidy for Singaporeans aged 40 and above announced in this Budget, the SkillsFuture credits will reduce the opportunity costs of deferring further education. As a result, it could encourage more Singaporeans to gain work experience before pursuing higher education. This could gradually shift perceptions about the importance of being relevant to the needs of industry. Rather than discourage further education, this should enable those who embark upon it to make a mature decision based on labour market realities.

Quality outcomes are critical to education. Deputy Prime Minister acknowledged the importance of quality assurance in his Budget Debate round-up speech.

At the same time, there have been calls from some Members for flexibility in utilising the SkillsFuture credits.

My question therefore is whether such quality assurance will be achieved, especially in view of the calls for flexibility. Will quality assurance be implemented by stringent monitoring, to ensure that the appropriate standards are met at every stage of the learning process? Will determining appropriate standards of assessment be part of the monitoring regime?

Supporting Mid-career Training

Mrs Lina Chiam (Non-Constituency Member): Madam, training and re-training is especially important to older workers to ensure that they remain relevant and useful to the needs of the businesses. Towards this end, I support enhanced subsidies for mid-career older Singaporeans aged 40 and above.

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In view of the fact that the Government schemes to support staff training and re-training may have been abused, we have to ensure that there are enough checks and balances in the enhanced subsidies schemes to ensure that they are not abused. There is anecdotal evidence of how personal enrichment courses, like swimming lessons, are disguised as staff training by errant companies to unethically benefit from such schemes.

Most mature workers in Singapore are not averse to train and retrain, so that they may upgrade their skills and have multiple skill sets in order to stay relevant in the workforce. But in an environment where most companies are reluctant to pay older workers equitably because of age bias, the incentives to train and re-train are lessened.

With confusing comments like, "Worker training is like trying to hit a moving target", "The technology and skills required today are likely to be different from those needed five to 10 years from now" made about training given by establishment figures, it is understandable if our older workers are confused about the need and necessity to train appropriately skills for the industry.

It was reported that our on-going economic restructuring has squeezed more workers out of the workforce and that PMETs, especially, have below-average re-entry rates. It was also recently reported that it is industry practice to reduce the pay of older workers. Are the efforts of the older workers who keep themselves upskilled appropriately considered by employers when they have to decide on matters like retrenchment and salary adjustments?

Besides training throwing money at the problem of ensuring an appropriately trained workforce, what else can the Government do to ensure that the older workers, especially mid-career employees who know the value of continuous upgrading, do not get the short end of the stick by human resource policies of some companies which may be discriminatory? TAFEP is a good platform the Government has been properly addressing some of these problems to all workers, especially older workers, face ---

The Chairman: Mrs Chiam, please conclude your speech. Your time is up.

Mrs Lina Chiam: Yes. The role of TAFEP though has got to be enhanced so that it can better enforce fair employment, and not be seen just to bark, but also to bite when necessary.

SkillsFuture Credit

Mr Zaqy Mohamad (Chua Chu Kang): Madam, I would like to applaud the Government for the SkillsFuture credit initiative in Budget 2015. The Government has shown that it is willing to put its money where the mouth is. In reality, the responsibility of lifelong learning and skills upgrading should lie with the employees and the employers. However, the business environment is challenging, as we understand, at the moment. So, it is difficult for them to spend extra in non-operational costs.

In that regard, by stepping up to take this responsibility, the Government has alleviated this cost from them and yet ensured that the workforce is constantly upgraded to remain relevant to the changing needs of the economy. Employers may still find that certain courses may require more funds than it is provided for by the SkillsFuture credit.

Will the Ministry allow employers to ask employees to co-fund course fees for work-related training? It is good to have both employers and employees to also take ownership of the process as long as we ensure that there are relevant safeguards for employees and that the employees feel that the benefits they receive from co-paying is justified. I feel that this will help provide greater diversity to the courses the employees can consider so that SkillsFuture credit will achieve its desired aims.

Skills Upgrading and Training for Adults

Mr Ang Hin Kee (Ang Mo Kio): Madam, for workers who wish to upgrade or deepen their skills, some courses are currently funded by the Government, with individuals paying the balance; while others are fully or partially supported by their employer.

SkillsFuture credit is a good initiative. It allows workers more access to training opportunities, to take personal ownership, and to use it to pay for the unfunded portion of their training courses.

There are two areas which I hope the Ministry or the Council can consider when developing the criteria for the use of the credits. Firstly, we should try to include courses beyond those under the WSQ system. Especially if those courses are specific to licence, acquisition, or already receive good industry support and are able to help workers perform better in their jobs. Secondly, employers should not use the credits to pass on some of the course fees to the employees. They should continue to invest in the training for their staff and allow employees to use SkillsFuture Credit for other purposes or other training.

Being a new initiative, there are bound to be areas which may be unclear. It is important that the system is designed in such a way that it benefits the majority of users. For instance, in developing the courses and criteria, how would courses, such as Class 3 driving licence be regarded? Some people hold jobs as sales people, property or insurance agents. They may acquire a driving licence to do their job properly. In other cases, there may be those who require a Class 3 licence to be a delivery man or a taxi driver.

Do we then consider Class 3 driving a useful skill for people to acquire that skill to make a living, or just to drive their car around for commute purposes? The Council may want to consider supporting these measures with things such as screening by agencies, such as the NTUC's Employment and Employability Institute, to make such courses eligible for SkillsFuture credits?

Diversify Skillset Training for Those Above 50

Ms Rita Soh Siow Lan (Nominated Member): Madam, on growing our human capital, the Government advocates the need for all Singaporeans to inculcate a desire for lifelong learning, in order for us to build deep skills and advance our capacities to the fullest.

Deputy Prime Minister Tharman advised that Lifelong Learning aims to empower each Singaporean to chart his own journey in life, and gain fulfilment at work. As a result, the development effort SkillsFuture "marks a new phase of investment in our people throughout life."

I, for one, have always been an avid supporter for acquiring new knowledge and learning cutting-edge skills as it sharpens one's faculties and quickens the heart. However, I have two concerns; namely, on the age criterion and the unbalanced variety of courses under WDA's current purview. Firstly, if learning is lifelong, then should age be a criterion for entry into any Government support schemes for the uptake of skills and training? If not, perhaps, one could start to accrue the SkillsFuture credit the moment one begins permanent work at an age earlier than 25, regardless of reasons?

Similarly, for the enhanced subsidies in support of mid-career Singaporeans going for further education and training, would it be better to peg the requirement on a minimum number of years of working experience, say, 10 or 15 years, instead of making it possible only at age 40 and above?

This will allow flexibility to enable Singaporeans to better plan and integrate their learning journeys with their work and family commitments. In fact, this approach is in harmony with the current proposal of having Singaporeans leverage on the multiple subsidies given by MOE for its modular courses, which are conducted at levels regardless of age. This same flexibility of modular, continuous learning is designed to specially help individuals balance family and career together with their learning.

So, if age is not a barrier to employment, then should it also not be an impediment to lifelong learning? Each one of us has different capacities to learn which may not necessarily be age sensitive. But the types of learning and training one requires may differ as one ages; hence, there is this need to ensure a wide diversity in the courses offered as well as in the mode of learning.

Madam, this leads to my second concern, on the unbalanced spread of courses and training schedules currently available. Deputy Prime Minister Tharman again mentioned that Singapore must retain her vibrancy as a city by nurturing creative talents and ensuring that we have people with the skills and empathy needed to champion our social causes. Hence, the Government will, and I quote, "help Singaporeans learn at every stage, at every age and develop expertise and flair in every field."

Presently, all Singaporeans in our labour force qualify to apply for a great array of skills-upgrading courses and training under the WDA's suite of approved courses, comprising at least 33 Workforce Skills Qualifications (WSQ) Frameworks within the respective industries. Many of these come with Government funding in various modes of subsidies depending on each sector's specific courses.

A quick review on the listed courses in 55 Areas of Training available on the WDA website shows the majority of courses are for the learning and training of hard skills, very technical in nature, with only approximately 16% catering to design and creativity training and another 22% on the training and development of social skills. Likewise, at the BCA Academy for those individuals who are keen to establish a career in the built environment, 75% of its courses are engineering in focus.

I checked out the Creative Industries WSQ website and found its courses like Arts Management, Creative Entrepreneurship, and on, very business-oriented.

On the other hand, over at the Lasalle College of the Arts and the Nanyang Academy of Fine Arts, a wide variety of creative courses are offered, either full time, part time or even as enrichment classes. From Interior Design to Fashion Design, Graphic Communication to Multimedia, from Music Course to Speech and Drama, the array is impressive.

Similarly, full-time courses, such as Culinary Arts, Beauty and Wellness, Community Care and Social Services offered in the ITE Campuses should be modularised and rolled out to meet the needs of our working adults seeking to upgrade their existing skills or to learn new ones.

In fact, WDA should proliferate its eco-system by widening its scope of accreditation to work with industry trade associations, private institutions and voluntary groups, to embrace the varied courses currently offered and those to be made available in the future.

I believe monetary assistance from the Government is a great incentive for workers to upgrade their skills and expertise in the areas other than skills required for work, especially those who work part time, those who have given up their roles to care for their young families, for elderly relatives as well as those who are senior in years.

Hence, in addition to the many subsidy schemes, I hope the Ministry would allow SkillsFuture Credit to pay not only work skills related courses which are subsidised by WDA, but also for soft skill courses offered by both MOE funded and the privately-run institutions.

Lastly, in order to navigate the whole myriad of courses available, I like to suggest that the agency looking after the SkillsFuture Credit provides a one-stop portal, where all courses can be systematically categorised for easy reference and applications for these courses can also be done online.

Helping Mature Professionals, Managers and Executives (PMEs)

The Senior Minister of State, Prime Minister's Office (Mr Heng Chee How): Madam, the numbers and proportion of PMEs within the Singapore's workforce continues to grow. Today, it constitutes about one in three that are within the workforce, and by the year 2030, perhaps one in two. This is because of the changing structure of the economy. The growth in the size of the PME pool comes from three sources. Firstly, school-leavers joining the workforce and they come with better qualifications, working adults who are upgrading themselves into PME level jobs as well as foreign PMEs working in Singapore.

As the pool of PMEs grows, the competition within it will intensify. If we were to consider who are likely to be the relatively more vulnerable amongst the PMEs, we can surmise that those working in declining industries as well as those in middle-management levels who have attained their positions after many years of work. These two groups would stand out. Economic restructuring that de-layers middle levels will put additional pressure.

As a result, we have seen an increasing number of middle-level, middle-aged PMEs displaced from their positions over the years. It is not easy for a mature worker, including a PME who is a mature worker, to find work should he become unemployed. A tight labour market helps but it is no guarantee for a fast re-entry into work. PMEs, with their relatively higher pay compared to rank-and-file workers and likely larger financial commitments, face additional emotional and practical adjustment challenges. There is a risk of structural unemployment and under-employment for this group.

I wish to ask for an assessment of this situation and whether there are sufficient mechanisms in place for job matching, for place and train arrangements and professional alternative career conversion arrangements to help this group of PMEs to minimise unemployment and under-employment.

Employment Trends and PMEs

Ms Jessica Tan Soon Neo (East Coast): Madam, PMEs form a sizeable proportion of our workforce. Those who are out of employment and mid-career PMEs do struggle to re-enter the workforce. In a recent Today's newspaper article in January this year, it was cited that while the labour market remains tight, industry insiders are seeing more PMEs seeking help for employment issues. Can MOM provide visibility of the hiring and wage trends for Singaporeans in PME roles?

As our economy is restructuring and with the shifts in the labour market, what is being done to support PMEs, especially mid-career PMEs' employability and career changes?

In my Budget debate speech, I asked if there could be a programme similar to the Earn and Learn programme to target mid-career PMEs. Those who face mid-career changes due to either job losses because jobs have gone away with the changes in the industry or a company's decision to downsize or relocate. These PMEs do face difficulty finding employment. Despite having experience that may be relevant to other industries, these PMEs do face difficulty in getting suitable employment given their age as well as the re-training that may be required.

I have seen many residents who are mid-career PMEs who have come to seek assistance at our MPS. They share the challenges they have putting in many job applications but not getting even a response or an opportunity for interview. There seems to be preferences by employers to hire younger workers. This can be quite disheartening and eventually for those who do find employment they are usually under-employed. Some of them do take up freelancing. This trend will affect the confidence and job prospects of mid-career PMEs, and it will affect their financial positions and quality of life.

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With an ageing population and the restructuring in the industry and job market, this pool of PMEs may get larger. Industry will benefit from applying their skills more effectively. Having a focused programme to support this group, it will meet the manpower needs of the industry as well as benefit the individuals too.

Older PMEs

The Minister of State, Prime Minister's Office (Mr Sam Tan Chin Siong): Madam, thank you for allowing me to speak on this topic. One of the key thrusts of this Budget is to develop people through SkillsFuture. At the macro-perspective, it is the right direction to re-skill and up-skill our work force and make them future-ready. But at the micro-level, the implementation of this plan needs careful calibration to ensure that all segments of the workers can reap the real benefits, especially the older workers. Here, I wish to speak up for the older PMEs.

Technology is constantly changing the nature of our jobs and skills. For instance, engineers and accountants use complex software today which require more training, compared to the past. Many of our young graduates would have learnt these tools in University. But the same cannot be said about the older workers, who have left school a long ago and this could result in some mature PMEs feeling anxious about their jobs security if they cannot keep up with new technology and new skills.

Whether it is about having to stay relevant, or about switching to a new job for career progression, mature PMEs may need to make substantial investments to skill and reskill themselves. On the other hand, this group of PMEs often have substantial personal commitments. Some of those who have been retrenched are afraid of investing time and money on a full-time course as their top most priority is to find a job after retrenchment.

Madam, our mature PMEs are facing a dilemma. On the one hand, the needs for skills training are great; on the other, the costs, including opportunity costs, are very high, too. I understand that the Professional Conversion Programme (PCP) launched in 2007 was an initiative to provide incentives to businesses to hire these PMEs, and enhancements have been made along the way, with the most recent ones being late last year.

But more can still be done for the mature workers, especially the PMEs, as they face greater challenges. Beyond helping the mature PMEs in gaining employment, helping them to acquire skills and access training to stay in their existing jobs or switch to a new job successfully is equally important. Will SkillsFuture cover the training that PMEs need, and can they use the Credit together with course subsidies, as PME courses may cost more.

It is heartening to see that just early this year, there has been a number of measures and initiatives towards helping PMEs, for instance the amendment of the Singapore's Industrial Relations Act to include PMEs under the scope of union representation; and the launching of the U Associate Grant by NTUC to PMEs to support them in training and employability enhancement.

However, can there be more targeted help for the mature PMEs? Is there anything similar to the SkillsFuture Earn and Learn programme that can be made available to mature PMEs? Perhaps a more structured programme, where our mature PMEs are able to undergo on-the-job training?

Support for Low-income Elderly

Mr Zainudin Nordin: adam, with the Pioneer Generation Package to CHAS, to Medisave top-ups, the Government clearly demonstrates its concern for the welfare of low-income senior citizens and retirees. Yet I notice that many of the benefits are concentrated on healthcare. Certainly, poor health and medical bills are paramount concerns in the old age. However, this does not necessarily apply to all senior citizens.

There are many senior citizens who are low-income workers. They may not necessarily fare badly in health, but they are surviving on meagre income and sometimes they do encounter financial difficulties because they cannot pay the bills. Many are still caring for their spouses and sometimes even their grandchildren. Often, these senior low-income citizens have basic living environment and their children are not better off too. These are Singaporeans who have contributed since the early days of our development and I think they do not deserve to live out their silver years likes this.

My question is how can we strengthen the support for our low-income elderly now and during their retirement? The needs of our senior citizens are very varied, and as our society ages, it becomes more crucial for us to develop viable solutions before the problems build up. We must be more inclusive and broad-based in our measures, so that more low-income elderly working citizens can benefit from the Government's support. In conclusion, may I request that the means testing can be made more broad-based and more inclusive so that they can cover more elderly working low-income citizens?

Retirement Adequacy of Women

Ms Foo Mee Har (West Coast): Madam, home ownership and the CPF are two key pillars of every Singaporean's retirement support structure. Unlike home ownership, for which HDB's eligibility criteria requires joint ownership by members of the family nucleus, the CPF account is owned solely by the member, and balances are pegged to employment and the level of wages earned by that person throughout his or her lifetime. Many women "work" at home as the primary caregiver of their families with no paid wages, so they depend entirely on their husbands' CPF. They are therefore vulnerable should their husbands pass on before they do, and his CPF LIFE payout ceases.

With the latest set of CPF enhancements, members are offered more flexibility to withdraw from their CPF – 20% of their savings at 65, and those with properties need only set aside Basic Retirement Sum. How can we ensure that a member's withdrawal decisions are in the best interests of the family?

I call on the Government to make joint consent from both spouses a requirement for withdrawal, if the account balance is less than the Full Retirement Sum. This is consistent with the allowance for members to maintain only the Basic Retirement Sum if they have a property with CPF charge, which is usually jointly owned by both spouses.

To help stay-at-home mothers boost their retirement adequacy, I would like to ask the Minister to provide "auto sweep" functions for CPF members to transfer their savings to their spouses' account, unless members opt out. This will allow couples to take full advantage of the extra interest rate on lower balances and therefore enjoy a higher effective interest rate overall.

For example, if a husband has saved $120,000 at age 55 years, transfer the balance to his non-working wife account after setting aside the Basic Retirement Sum, the $39,500 transferred would have earned over $9,000 more or 16% more savings in the wife's account given the higher effective interest rate for low balances, than if he had kept the full amount in his own account at 65.

In addition, introduce a CPF LIFE joint ownership scheme for couples, so that when one spouse dies, the annuity is bequeathed to the surviving spouse, who then continues to receive a lifelong income stream from that policy.

Finally, I would like to ask the Minister whether he would allow members greater flexibility to use their CPF savings in the Retirement Account to service their housing loans after they reach 55, as Singaporeans are now working till they are older, and may not have planned for the monies to be transferred from Ordinary Account to Retirement Account at 55.

Retirement Adequacy at CPF

Mr David Ong (Jurong): Madam Chair, CPF remains the key pillar for our social security systems in retirement. However, changing demography contributed to a widening gap between retirement and life expectancy. The early intent of the CPF system is to help Singaporeans own their homes, and now 90% do. However the unintended outcome is one of constrained retirement adequacy with low cash balances.

Retirement adequacy ranks highly in the minds of Singaporeans. Some Singaporeans may have difficulties meeting their mortgage payment when they reach 55 as their CPF monies will be consolidated into the Retirement Account. About half cannot meet this CPF Minimum Sum still due to home ownership, paying for their medical fees, their children's education as well as investment.

We have to tackle CPF adequacy problem further upstream and work remains the most effective way of building one's CPF savings. Although, I am heartened with the full restoration of CPF contribution of our matured workers aged 55 to 60, I do like to nudge the Government to do more for our older workers aged above 55. Even after factoring the CPF increases, older workers above 55 to 60 still see an 11% gap whilst those in the above 60 to 65 age band see a wider variance of 20.5% when compared to their younger colleagues.

Those aged above 65 should not be ignored, as job participation rate for this group has been encouraging and set to expand in lieu of our fast ageing population. In this regard, can the Ministry also look at enhancing CPF contribution for these older workers, who will receive 24.5% less in CPF compared with their younger "matured" colleagues?

CPF for Freelance and Part-time Workers

Mr Pritam Singh (Aljunied): Mdm Chair, in the email sent by the Minister of Manpower to Members very recently, the Minister sent a soft copy of the "Do It Right" toolkit, part of the Ministry's WorkRight initiative. In the 16-slide document, slide 10 was notable as it covered the employer's duty in contributing CPF to employees, including employees who are on part-time, ad-hoc, contract or casual employment, not forgetting those on probation. The document also confirmed that it was illegal for employers to contract out their obligation to pay CPF for their employees regardless of employment status. I appreciate the effort of the Ministry in pursuing an adjudicative approach towards employers at the first instance.

As WorkRight is into its second year, I would like to enquire if the Ministry has a timeline or framework to change its approach to compel employers to make the necessary CPF payments for all employees including freelancers, part-timers and contract workers. Until then, I would like to request the Ministry to consider adjudicating and stepping up awareness among temporary, ad-hoc and part-time employees as well and to allow them to file reports against employers who refuse to make CPF contributions especially since the risk of CPF inadequacy in their later years would be very acute.

CPF Retirement Account

Ms Lee Li Lian (Punggol East): Madam, CPF members who have reached 55 years of age will see a portion of their OA and SA savings transferred to their retirement account to meet the Minimum Sum. After setting aside the Minimum Sum cash component, funds from the RA can only be used to pay for these individual's housing mortgages.

An article in Yahoo Finance dated 11 February 2014 discussed the top three complaints Singaporeans have about their CPF accounts. One of the complaints is it is nearly impossible to access your Retirement Account. I have come across such cases during my MPS where residents above 55 years are unable to pay their housing loans through their Retirement Account because they have insufficient funds left over and above the Minimum Sum. And they struggle to find additional funds to pay off their housing loans instalments in cold hard cash. Some of them do not even think that they stand a chance to get CPF Board to allow them to use their monies in the RA and hence do not even want to try to appeal.

I have also come across residents who wish to appeal to use their CPF RA for the purpose of funding their children's tertiary education. This will become more and more common as Singaporean get married and have children later. Many of them will have school-going children when they reach age 55.

Madam I acknowledge that is important to set aside sufficient funds for retirement. At the same time, we must recognise that there are immediate financial concerns that warrant exceptions to present rules. Managing housing mortgages and cost of education are financial concerns that important to many Singaporean.

I urge the Minister to consider allowing CPF members to use their Retirement Account to continue to pay for their outstanding mortgage loan and tertiary education of their children even if they do not meet the Minimum Sum, so as not to create sudden additional financial burden on them. After all, to many of these Singaporeans, how can they possibly think about a comfortable retirement when they are still struggling with home loans and ensuring their children have a good education. We can look at this easing of the restrictions specifically for repayments of existing loans by taking a minimum number of years back.

CPF and Senior Citizens

Mr Png Eng Huat (Hougang): Thank you Madam. Madam, many elderly Singaporeans will be asked to tap into their children's Medisave when their own limit for outpatient treatments is reached. Some of these retirees will have to dig deep into their pockets if their children are unable to help them. A single parent told me her life savings is been depleting over the years because of regular out-of-pocket medical expenses to treat her chronic illnesses. She said her Medisave $400 limit were maxed out within two visits to the clinic. And an elderly gentleman I met said his only wish is to have fewer restrictions on the use of his Medisave in his twilight years. At $400 a year for outpatient treatments, he calculated his Medisave will outlive him while his quality of life will deteriorate as he has to dip into his life savings to pay for his medical needs. He is 80 years old.

The House was told in 2013 that a patient incurred an annual bill of $200 on average for treatment of chronic diseases at the polyclinic, well within the Medisave $400 limit. However the introduction of the Flexi-Medisave scheme to add another $200 a year for outpatient treatment for senior citizens age 65 and above seems to infer that the current limit of $400 is inadequate for the elderly.

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Madam, older CPF members should be accorded flexibility in the use of their Medisave for outpatient treatments. Asking them to tap into their children's Medisave to continue their treatments is like asking them to borrow from the future generation to pay for the current generation. This option should be used only as a last resort when the Medisave account of the older member is depleted. Otherwise the cycle will play itself out again when the younger generation ages with insufficient savings left in their Medisave accounts as a result.

I call for the limit on the use of Medisave for outpatient treatments to be lifted completely for senior citizens aged 75 and above.

Assurance from CPF in Retirement

Mr Zaqy Mohamad (Chua Chu Kang): Madam, I am heartened with the recommendations to introduce more flexibility in the CPF scheme, as recommended by the CPF panel, so that it can be used for diverse retirement needs.

Following the Budget debates, I noted the continued reactions in some segments of the community seeking the Government to allow higher or full withdrawal of CPF savings upfront. More of concern is that many of these calls also come from PMETs of different segments, who should have understood the logic of forced savings for retirement and also retirement adequacy.

My concern, Madam, is that many Singaporeans do not fully understand the working mechanics of the CPF – how it benefits them, retirement-related schemes such as the CPF Life and MediShield Life, and why it is also a system of collective responsibility that protects them as individuals and protects our future generations too.

My concern is how the ordinary citizens can maximise the retirement savings for the long haul if they do not understand the CPF framework. Simply, if one does not understand the system, the Government puts itself in a risky position relying on goodwill and trust for support. It should be increasingly difficult for an educated population that needs to be convinced and rationalised. So you see a gulf for a system that is widely recognised by governments all over the world as well as many academics. Our system is admired but at the same time you see that there is a gulf and expectation between Singaporeans and what others see.

So for this, the Government must put in more resources to engage citizens in depth, not just mass communications especially amongst the older, less educated workers, but we should also try to engage those who are new in the workforce and also those in schools who will be joining the workforce in the future. So what resources will MOM make available to win over the hearts and minds to gain citizens buy-in for this already complex but well-intended retirement plan?

Repackaging of Minimum Sum

Mr Seng Han Thong (Ang Mo Kio): Madam, CPF Advisory Panel has recommended that the Minimum Sum be adjusted after 2015 based on three key considerations – adequacy, simplicity and flexibility.

Thus, the Minimum Sum will be renamed as Basic Retirement Sum, Full Retirement Sum and Enhanced Retirement Sum.

The repackaging of Minimum Sum reflects the reality on the ground, especially the principal of adequacy. In fact, when one gets older and older, one's lifestyle becomes simpler than before. It is realty back to basic.

The name "Minimum Sum" is also misleading as it implies that "it is the minimum".

The panel also recommends that Government provides appropriate and timely information, and financial counselling, to help members make informed choices.

My question is: what are the communication plans CPF Board has to provide appropriate and timely information and financial counselling? How will CPF help its members, especially the not-so-well-informed and not-so-well-connected lower income retirees to make informed choices? Does the CPF Board have the capability and capacity to do it?

Again, the communication plan should not be a "one size fits all" as members come from different background and with different priorities and preferences.

( In Mandarin ) : [Please refer to Vernacular Speech.] Among the many recommendations suggested by the CPF Advisory Panel, changing the concept of the "Minimum Sum" to "Basic Retirement Sum", "Full Retirement Sum" and "Enhanced Retirement Sum" is the most noticeable.

Last month, an online survey conducted by Lianhe Zao Bao showed that more than 30% of the readers were pleased to see the change.

Among the retirees, some are rich and some are poor; some are active and some are quiet. Some have "seen through life" and some still have not. The way they live their retirement life is different. Also different are their expectations for retirement.

The Panel recommends that the Government "provides appropriate and timely information and financial counselling to help members make informed choices" .

My question is: how is the CPF Board going to help this elderly group, especially those who have little knowledge of financial management, make informed choices?

Helping SMEs in the Productivity Push

Mr Christopher de Souza (Holland-Bukit Timah): With rising cost and greater competition, the Government has consistently encouraged local businesses to look at different areas for new growth opportunities like innovation.

Although industries which are unable to attract Singaporean workers and are thus more dependent on foreign manpower are suffering, such businesses tend to be manpower-intensive industries like the construction or processing industries, which find it difficult to adopt best practices, and have been successful at raising productivity in other industries. Therefore, could the Minister explain what support the Ministry of Manpower can offer to these SMEs?

The Chairman: Mr Yeo Guat Kwang, you have two cuts, please take them together.

Strengthening Singaporean Core

Mr Yeo Guat Kwang: Madam, our world number one workforce is our critical competitive advantage. As our country continues to progress, we must ensure that we maintain a strong Singaporean core in our total workforce, at the heart of our economy.

I would like to call upon the Government to extend the CoreTrade scheme beyond construction to other industries such as manufacturing, retail, F&B, to facilitate the development of Singaporean core and benefit Singaporean workers.

The current CoreTrade scheme or Construction Registration of Tradesmen scheme, administered by the BCA, aims to build up a core group of competent and experienced local workers who will anchor and lead the construction industry in order to achieve higher productivity. Employees registered as CoreTrade workers are recognised by industrial players as experienced employees and are rewarded by a clear career progression path within the construction industry, allowing them to progress from a basic skilled worker to a registered tradesman and specialising in specific trades, and eventually become foremen and supervisors. The CoreTrade scheme has benefited the construction industry by increasing the retention rate of construction personnel and ensuring that the industry is supported by a core Singaporean group of highly experienced and productive personnel. This is a good scheme, and I hope that the Government agencies will continue to press on and do not allow the employers to u-turn.

Recently, when I met a limousine taxi driver when I was on my way to airport, he told me that actually he was a beneficiary of this scheme when he became a tower crane operator. But unfortunately, the policy has changed, and he eventually he lost his job because the agency has allowed the job of a tower crane operator also to be extended to foreign workers, and he ended up becoming a limousine taxi driver.

I urge the Government, both as licensing agency and service buyer, to give full support to CoreTrade scheme in the construction sector. I would also request Government to consider building a CoreTrade in all other major industries and job sectors such as Building and Facilities Management, where experienced Singaporean employees can be granted CoreTrade status, with industrial players' recognition, so that they can continue to progress in their career. Such a model would enable CoreTrade employees to progress up the skill and career ladder within the industry in a structured manner, thereby enhancing their retention rates and the standards of the industry as a whole.

The CoreTrade model will also complement the within-company progressive wage model (PWM) by ensuring there will be similar qualified CoreTrade employees recognised by the industry.

( In Mandarin ) : [Please refer to Vernacular Speech.] I would urge our employers not to just focus on the cost, but also to take on the responsibility of building a Singaporean core. The Government should expand the CoreTrade scheme from construction sector to others sectors such as building and Facilities Management, financial management , F&B and landscaping, so as to build a Singaporean core in these industries and promote the steady and healthy development of these companies and industries.

( In English ): I will now continue with my next cut.

Raising Quality of Foreign Workforce

Madam, we all recognise the need to complement our workforce with migrant workers. However, with the number of unfortunate migrant worker related incidents in 2014, I think we need to change the way our employers recruit migrant workers and promote capability-based recruitment. I urge our tripartite partners to review and build a system of migrant workers recruitment for quality, and not for quantity. We must just go for what is good for us, and not just the number. The Ministry of Manpower (MOM) should consider setting up a firmer skill recognition on requirement upfront in order that we do not inevitably jeopardise our workforce productivity efforts as a whole, but also as a means to ensure Singapore remains a preferred employment destination in our region where all our workers are able to make a real contribution towards the building of our future and where all our workers, both local and foreign, are treated fairly.

MOM should consider the setting up of a qualitative skill measurement network and system into a firm dependency ratio of foreign workers quota, so that employers know that they are restricted to a limited number of sub-quota of low skilled workers within their overall quota of migrant workers. Large numbers of the low skilled and no skilled foreign worker will stifle our overall productivity effort. I would like to repeat my call for the Government to consider WSQ-equivalent skill standards to be required for all migrant workers in Singapore. We should set this requirement upon entry, or as a renewal requirement for employers who wish to keep their workers beyond the first work permit term of two years.

We want the employers to retain a more experienced and a better trained migrant worker. MOM should, one, provide more levy incentives for employers employing high skilled work permit holders; two, give longer maximum period of employment to the better skilled migrant workers; three, extend the change of employer scheme to allow suitable migrant workers to transfer to new employers rather than to send them back home at the end of every contract. It is better for the employers to keep the better migrant workers. And four, consider a special training support for our working foreign spouses of Singaporeans. I think if they are working, they should also be given better support.

( In Mandarin ) : [Please refer to Vernacular Speech.] Our labour force has now reached the ratio of 2:1, meaning two Singaporeans to one foreign worker. We cannot further reduce this ratio. I would like to urge all employers to change their mindset. When they hire foreign workers, they should focus on quality, not quantity. They should also further focus on improving the quality of our local workforce. They should also focus on only employing suitable and highly skilled foreign workers, and make sure that they are qualified and try to retain these high quality foreign workers. This will help further promote the harmony of the workforce.

( In English ): Madam, setting quality indicators upfront in the quota injects more urgency into trying to change the way employers strategise their migrant recruitment and correspondingly their own productivity efforts. We will be able to very speedily change the profile of migrant workers being allowed into Singapore and ensure that productivity is boosted not only among the Singaporeans as a whole, in our workforce, and together with one-third of the migrant workers as One Inclusive Workforce, build a better Singapore.

Building a Singaporean Core

Mr Zainal Sapari (Pasir Ris-Punggol): Madam, I applaud the initiative to introduce professional career counselling and career guidance in our local institutions. To complement efforts to create a skilled Singapore workforce, I believe that we should also embark on building a Singapore core.

I would like to urge MOM to look into the possibility of refining our available infrastructure and to put in place structures to create a Singapore core in the industries – particularly for positions in the middle and higher management positions.

What are our current measures in place to support companies that develop manpower capital in Singapore? I believe that we should expand on support schemes for companies to develop manpower capital in Singapore. We should look into pressuring companies to have an outcome abiding to the idea of the Singapore Core. In the long run, we should thus be looking at reduced reliance on foreign talent and greater job satisfaction amongst Singaporeans.

The National Jobs Bank should also undergo refinement to incentivise companies to employ Singaporeans should there be more than a certain number of applications from Singaporeans for the advertised jobs. As it stands now, the National Jobs Bank is frequently criticised for not compelling companies to hire Singaporeans and that is an area which we should revisit in order to better serve our local workforce.

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The Chairman: Mr Patrick Tay, you have two cuts, take them together.

Mr Patrick Tay Teck Guan (Nee Soon): Three cuts, Madam.

The Chairman: Mr Tay, I suggest you stop after two cuts, the first two cuts.

Employment Tribunal Framework

Mr Patrick Tay Teck Guan: Yes, Mdm Chair. I am glad that the Ministry of Manpower will be setting up an Employment Tribunal in that more PMEs will benefit and be protected. In the set-up of the Employment Tribunal, I urge MOM to take cognisance of the following points.

Firstly, for the Composition of Tribunal, the single or multiple adjudicator on the tribunal should be a person of high standing, especially in the area of industrial relations, employment relations and has dealings and is familiar operating with unions and unionised companies.

Secondly, the Employment Tribunal should be easily accessible and economical.

Thirdly, it should be efficient and effective, that is, the time taken for a claim to be heard or mediation arranged should be relatively short. There should also not be a salary ceiling of a PME before he or she can file a claim. Likewise, the claim limits should not be low or else it will not be useful. By the same token, the scope of issues or disputes covered should minimally include statutory claims and contractual breaches.

Fourth, there should be ease of enforceability of award and judgment. One challenge is the enforcement of the judgment and award which requires a civil process. This may cost monies and may be cumbersome. I suggest MOM partner with NTUC's U-PME Centre to assist PMEs and PME union members in the enforcement of their claims in a cost-effective way.

Fifth, tripartism must be upheld. The formation of the Employment Tribunal should not erode the tripartite relationship and dilute the role of unions. Tripartite mediation should work seamlessly with the Employment Tribunal. Involvement and representation by union officials and industrial relations officers of union members for Employment Tribunal cases should be provided.

Lastly, there should be compulsory mediation in that before a tribunal is convened, I submit that mandatory mediation, including tripartite mediation, be required.

Review of Tripartite Mediation Framework

Madam, my second cut. With the proposed set up of the Employment Tribunal in Singapore to handle PME and other labour dispute claims in an economical and expeditious way, it is appropriate to also review and expand the scope of the tripartite mediation framework, which was started on 1 February 2011, to help PME union members earning less than $4,500 to resolve three specific areas of workplace disputes.

In order to preserve the sanctity of tripartism and ensure tripartism in Singapore stay relevant and serve PMEs in Singapore, I have three suggestions for the Ministry of Manpower. The first is to expand the scope of the Tripartite Mediation Framework to cover any statutory and any contractual and workplace issues and not limit it to just the current three heads of claim. The second is that there should not be any salary ceiling for union members to embark on tripartite mediation. My third suggestion is that the tripartite mediation process must work seamlessly with the employment tribunal in that there must be a clear incentive for those who choose to embark on the tripartite mediation route before the case escalates to the employment tribunal or any other adjudicatory panel.

The Chairman: Minister Tan Chuan-Jin.

The Minister for Manpower (Mr Tan Chuan-Jin): Mdm Chair, I would like to thank Members for your 53 cuts submitted to our Ministry.

Before I begin, let me take a step back to talk about our longer term goals for Singapore. While we address the specific cuts, it is important to remember what exactly we are trying to build here in this place we call home. We want to build on what we have achieved over the many years, and work towards creating an environment where there are better jobs, higher incomes, and a more secure retirement for all Singaporeans towards their latter years.

I have met many people in the course of my work, and everyone is at different stages of their lives, each having their own aspirations, their own expectations, different opportunities and challenges facing all of them. Everyone has their own story to tell. Our shared vision must be expansive enough to reflect these differing aspirations, and our society must be inclusive enough so that everyone has a stake in our future.

In this inclusive society we call Singapore, all Singaporeans must have access to quality jobs. Whether you are looking at something fast pace, or something slower pace, something meaningful, or something financially rewarding, that range of opportunities must be created.

Therefore, we must nurture a vibrant economy to anchor quality jobs in Singapore. We will equip our people with the necessary skills for these jobs, and to help them continuously upgrade themselves to remain relevant throughout their lives. We should have safe and progressive workplaces. And when some falter, as invariably some will do, we must be there to support our fellow Singaporeans, helping them get back on their feet, so that they can in turn look after their loved ones.

This will be a society where everyone can maximise his or her potential and to realise their aspirations. Where every Singaporean can take pride in being really good at what they do and are recognised for their skills, regardless of their academic qualification, regardless of the schools they come from, regardless of the uniform they wear, or the sector that they work in. Underpinning this, there must be an open and level playing field for everyone to have a fair chance to progress based on their skills, based on their effort and own merit.

At the end of a fulfilling career, we want each and every Singaporean to have peace of mind in retirement. A secure retirement that is made possible primarily by our own savings but we want a system that does not also impose a burden on future generations. For this to happen, we need a system of savings that is anchored on personal responsibility, but with employers and the Government pitching in and playing a critical role to augment it. A system that is flexible enough to cater to differing Singaporeans' needs but, at the same time, remembering very clearly that we cannot compromise its core objective of helping Singaporeans set aside sufficient funds for their retirement years.

Visions are important, but in this society that is based on a democracy of deeds, we must be able to translate these ideas into realities for all Singaporeans. Words are cheap, but actions speak a lot louder. But as we all know, there are no straightforward answers because there are so many perspectives to consider and difficult trade-offs to be made, but the effort must be put in to see how inclusive we can be. We need to balance the needs of the individual with that of society. We need to meet the needs of today but, at the same time, to make sure that we look after the needs of our children's generation and the generations beyond that.

We are actually making steady progress towards our goals. We are not doing too badly. In 2014, our economy grew 2.9%, creating 129,000 new jobs. These are the opportunities for our people. Citizen unemployment rate remains low at 2.9%, and as I have always mentioned, low unemployment does not mean zero unemployment. It is one of the lowest in the world.

In 2014, real median income – meaning that you have compensated for inflation –grew by 1.4%. If we looked at a longer five-year time horizon and we take out year-on-year volatilities, between 2009 and 2014, real incomes have grown by 2.1% per annum at the median, and 1.5% per annum at the 20th percentile.

We have managed to achieve positive real income growth and avoid the wage stagnation that many developed economies are facing. I am always reminded of this every year I meet with my G20 counterparts. I do not relish the challenges that they are grappling with: high youth unemployment, high unemployment, slow economic growth, wage stagnation, and in some countries, the wages have been stagnating for many years. In some instances, wages have declined. It is important to look at what is happening in the rest of the world because the same pressures that are brought to bear in those societies are happening to us as well. But we are managing quite well.

We are in a relatively strong position. But as we continue to build on what we have achieved, we must also ensure that Singaporeans who encounter difficulties are not left behind. These are hardworking Singaporeans who lose their jobs when companies restructure. Restructuring is inevitable as the world changes. Their skills may have become outmoded and they have difficulties finding new jobs when they are in their 40s and 50s, when they still have to support their families, or have mortgages to pay.

Mr Ong, for example, was retrenched after working for seven years with his company. Even though he was given a retrenchment package, he was anxious to get back to work as he needed to support his family, especially his two school-going children. I could only imagine how difficult those times were. Mr Ong, with guidance from his career coach from the WDA Career Centre, managed to secure a position in Beyonics International Pte Ltd as a Programme Manager. The new job is now nearer his home, and with the shorter commute, he can spend more quality family time with his children. Mr Dharmarajan, 55, was retrenched in 2014 because his company relocated to another country. His career coach from WDA referred him to the Jobs Bank where he subsequently found a new job with a pay rise.

Today, I will talk about our plans to help more Singaporeans like Mr Ong and Mr Dharmarajan secure quality jobs and opportunities through better skills and to prepare our people for the future. I will also talk about enhancements to the CPF system to better meet diverse retirement needs. Senior Minister of State Amy Khor will speak about the Fair Consideration Framework and the Jobs Bank, helping older workers remain in employment, and mechanisms for dispute resolution. Senior Parliamentary Secretary Hawazi Daipi will cover further measures to uplift incomes in low-wage sectors and improve workers' safety.

As Mr Zainudin Nordin has pointed out, to be successful in the next phase of our economic development, we need to prepare and adapt to the structural shifts that are taking place in our economy and labour market, and to adapt to the world that is changing exceedingly fast. Over the next decade, our labour market will tighten further, and rapid advancements in technology will change the way we work, the way we communicate and the way we do business.

Let me first elaborate on the tightening labour market. We commenced tightening the labour market in 2010. In the past few years, our deliberate policies have moderated foreign workforce growth steadily and progressively, from about 80,000 in 2011 to about a third of that, 26,000 in 2014. This is not because we have become manpower-lean. In response to Mr Thomas Chua, we are still some distance away from the world's most advanced economies. In the Construction sector, our value-added per worker is only a third of that in Finland or Denmark, and half of that in the United States or Japan. In the Services sector, we are around 70% to 80% of that in the US or Japan.

While foreign workforce growth has slowed, some companies have transformed but many companies resorted to hiring more local workers instead of restructuring or economising on manpower. The local employment growth was 95,000 in 2014. This is more than twice of the 38,000 in 2011.

Having more jobs for our locals is a good thing. So the high labour force participation rate is great and it is good to see more women and older workers coming back into the workforce. They contribute to augmenting household incomes, and the data on that front has been very positive and strong. Unfortunately, this increase in local hiring sometimes allows companies to avoid the restructuring and the changes that they need to make. This increase in local hiring will not last.

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In fact, we expect our local employment growth to slow dramatically in the next few years, dropping from this base of 95,000 last year, to around 20,000 per annum in the last part of this decade. This is largely due to our baby boomers gradually exiting the workforce, and our smaller cohorts entering the workforce.

I am highlighting this situation not to signal a change in our direction. There will be no change. We will continue to keep foreign workforce growth sustainable and allow it to grow at the current tight pace. The main message is this – taken together with the slowdown in our local workforce growth in these coming years, companies must note that we will experience a very significant tightening of the labour market going forward. If businesses do not become manpower-lean, if they do not become more productive, they will have great difficulties in finding enough manpower – be it local or foreign – to run their operations.

The next significant change that I would like to talk about is technology. It is not new. Technology has always been changing businesses and jobs, but it will do so at an ever increasing rate. Many of you would remember IBM Watson, the super-computer that beat the world's best Jeopardy! player four years ago. Well, since then, Watson has upgraded, and has begun to assist human beings in actual work settings. At DBS Bank, for example, Watson is now helping relationship managers read and process thousands of reports, crunch client data, and give unbiased, tailored investment advice to their clients. To give you a sense of the scale, DBS Bank itself produces about 700 to 800 such reports every quarter. In the past, it was impossible for any single relationship manager to read all these reports. But Watson can, and given its huge computing power, it will continue to do so at increasing rates.

To remain competitive in this rapidly evolving environment, our businesses must capitalise on technological advancements to innovate, so as to establish new areas of competitive advantage, keep ahead of the curve, and grow within our national manpower constraints. DBS started using Watson for precisely this reason. Ms Frances Boon, Senior Advisor at DBS told us that their adoption of Watson was a pre-emptive move. Rather than waiting for technology to impact DBS, they wanted to explore it first, so that DBS is ready to move to the new business models when change occurs.

As our businesses restructure and move up the value chain, you will realise that jobs will have to evolve. Singaporeans need to move towards higher value skills, so that they can stay relevant and capitalise on opportunities in the new-age economy.

Developing Singaporeans has always been our priority but this is the right time to make a further concerted push due to the shifts I outlined. Moving forward, it has to be about quality. Quality growth, quality companies and quality skills in every individual.

With SkillsFuture, we have embarked on a major new phase of investment in our people, to develop every Singaporean to the fullest, not just in school but throughout life. SkillsFuture can only succeed if everyone plays their part.

First, employers. Today, many employers say that they cannot find Singaporeans with the right experience. But we all know, no one is born with experience. It takes time and deliberate effort to develop this experience in our employees. In this tight labour market, employers have to shift away from this "plug and play" mindset to one which proactively develops every one of their workers, providing career pathways and valuing their contributions as they advance. Employers play a critical role in this. If you do not develop those pathways, if you do not develop a fair remuneration scheme, SkillsFuture cannot take off if you do not play your part.

One way to do this is through offering meaningful internships, participating in the SkillsFuture Earn and Learn programme, or being part of the SkillsFuture Leadership Development Initiative. In turn, companies will have access to a more skilled workforce that will enhance their competitiveness and productivity. We will reach out to businesses to share with them how they can benefit from the various SkillsFuture initiatives. I call on all companies to come forward proactively and be part of this process.

Next, let us talk about individuals. This is about you and I, every Singaporean. We must take ownership of our own learning and careers. We cannot think about lifelong learning as something that is more suitable for the rank and file, or blue collar jobs. It is for everyone of us. Given how fast the labour market and skills needs are changing due to technology and restructuring, learning can no longer stop when we step out of school. We, as parents, teachers, and individuals need to constantly re-invest in learning, throughout our lives. The example of Watson earlier will show you that technology is not just impacting rank and file workers. It impacts the work of professionals as well.

Finally, education and training providers. They must value-add to their students' personal and professional development by offering relevant and high quality programmes. I will elaborate on this later.

SkillsFuture is exceedingly important. It is truly a national movement involving all stakeholders. The Government is a key enabler, and we will provide the necessary infrastructure and resources. Deputy Prime Minister Tharman had shared how SkillsFuture will support learning through a wide array of initiatives. I will elaborate further.

First, on training landscape. We must ensure that the course offerings are of high quality, a wide variety – as Ms Rita Soh emphasised – and delivered through multiple modes of learning. We have taken a significant step towards this with the opening of two new CET campuses last year. Mr Zainudin Nordin had acknowledged this. These CET campuses are focal points. They complement our Universities, Polytechnics, and ITE in providing a continuum of diverse learning opportunities for Singaporeans throughout life. Today, there are over 25 partners delivering training and other CET-related services at both these campuses.

I fully agree with Mr Ang Hin Kee, Ms Foo Mee Har and Assoc Prof Randolph Tan that we must ensure that this education and training is high quality, industry-relevant and ultimately, it must deliver good outcomes for Singaporeans.

To ensure that courses are industry relevant, our Institutes of Higher Learning (IHLs) co-develop course curricula with the industry. Again, industry must play a part and participate in this. The various Singapore Workforce Skills Qualification (WSQ) frameworks were also developed in close consultation with the tripartite partners. This system has served us well, and our local graduates are highly employable. But we know that sometimes there are courses that are less than ideal and we will weed them out and continue to improve. We can make things better, especially now that we are enhancing the education and training landscape. Moving forward, MOE and WDA will enhance existing accreditation frameworks, taking into account the important points raised by many of the Members here about ensuring the rigour and relevance of training.

Mr Low Thia Khiang may wish to note that we will be implementing the various SkillsFuture initiatives in phases to ensure that the training landscape is able to develop in tandem with the new measures. We need to avoid a case where training institutions face this sudden surge in demand, and resort to offering sub-standard programmes or expanding class sizes and compromising on quality. This will lead to a wastage of both individuals' time and public monies. Therefore, we have staged the implementation according to readiness and capacity. Let me elaborate.

We will start with a significant number of initiatives that are ready to go. These are the SkillsFuture Mid-Career Enhanced Subsidy, SkillsFuture Earn and Learn Programme, SkillsFuture Study Awards, SkillsFuture Leadership Development Initiative, and the SkillsFuture Mentors.

In 2016, we will implement the SkillsFuture Credit and the SkillsFuture Fellowships. Various Members of Parliament have asked questions related to the implementation of this SkillsFuture Credit.

Under the SkillsFutureCredit, more than two million Singaporeans aged 25 and above will receive an opening balance of $500 in credits next year. Even as we do this, I fully agree with Assoc Prof Randolph Tan that we need to pay attention to the quality of outcomes, to ensure that courses are useful for both individuals and also for the companies. This will have to be balanced with flexibility in utilising the credits, which many people have called for. So, again, there is a balance. We want more diversity, we want easy accessibility, but at the same time, we also want accountability and a lack of wastage. Going to extreme ends, on either front, will cause problems. So, we need to find where that middle ground is.

In order to galvanise a culture of lifelong learning, we have, and we believe, that we should take a broad approach of supporting work-skills with the Credit. Our intent is to help Singaporeans deepen their existing skills, and also to provide options for people to broaden their horizons in areas outside their current fields. The courses we will support will clearly be diverse, comprising areas like Aerospace, IT, and early childhood education, and also including areas such as languages and culinary skills, which some may have a strong interest for and wish to explore career opportunities in.

Mr Ang Hin Kee asked about the specific criteria for courses to qualify for the SkillsFuture Credit. To ensure quality, courses will need support from WDA, MOE or other public agencies to qualify for the credits. We will look into the helpful suggestions from many of you to see how we can help Singaporeans from all walks of life to benefit, including stay-at-home parents, the self-employed, and also persons with disabilities. The full range of courses will need to be inclusive and will be released closer to the implementation of the Credit.

Mr Ang Hin Kee and Mr Zaqy Mohamad were concerned that employers who are cutting costs may now ask their workers to co-fund the cost of training with their SkillsFuture Credit. Let me be very clear that the credits are meant to support training initiated by individuals, not to fund training which employers send them for. In any case, we will continue to support employers who send their workers for training by providing substantial course fee subsidies. We will also extend the existing Enhanced Training Support for SMEs Scheme by a further three years, to give SMEs additional support to send their local workers for training. Training funded by the credits, which are meant for individuals, will not allow employers to qualify for absentee payroll from WDA. So, this is a built-in mechanism that will address some of the concerns raised.

Another key initiative is the Sectoral Manpower Plan (SMP). I shall not elaborate on this in detail as I had done so in Parliament previously, but I would like to highlight that one of its key objectives is to develop a deep pool of local talent in our key sectors, by building attractive skills-based career progression pathways, improving HR practices and enhancing workplace conditions. Over time, we hope that these efforts will help us build up a Singaporean core in key industries with the right skills and experiences, as suggested by Mr Zainal Sapari and Mr Yeo Guat Kwang. We will work closely with Trade Associations, training institutions, employers, and unions to develop and implement comprehensive Sectoral Manpower Plans (SMP) in all key sectors by 2020, covering both growth sectors and traditional sectors. As for the core trades approach raised by Mr Yeo, we are open to exploring this with other agencies and other sectors.

Let me move on to talk about supporting Singaporean PMETs. Mr Sam Tan, Ms Jessica Tan, and Mr Heng Chee How have asked how we are helping this group of Singaporeans. As Mr Heng Chee How highlighted, the proportion of Singaporeans employed in PMET jobs has increased from 43% in 2004 to roughly half of our citizen workforce in 2014, and this is projected to reach two-thirds by 2030. Our future economy in Singapore will be driven by a strong Singaporean core, with highly-skilled PMETs at the centre.

PMETs generally enjoy positive employment outcomes. Real median incomes of Singaporean PMETs have risen 2% per annum in the past five years. The unemployment rate for Singaporean PMETs has stayed low at 2.9% in 2014, and the long-term unemployment rate has also remained low at 0.7%. Although displaced PMETs are not a large group, the pressures of a rapidly-changing economy have caused some, especially mature PMETs, to feel anxious about their job security.

And, as I have mentioned earlier, while the percentages are low, there are Singaporeans who are affected. We need to look out for them and see how best to help them. We aim to maintain these good outcomes for our PMETs by putting in place policies in a way that is best tailored to their needs and circumstances.

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First and foremost, we are empowering PMETs to chart their own learning and career development. The first thing that the Government can do is to provide a good suite of practical, usable online resources. If you are a Singaporean PMET looking for a job, you can start with looking at the Jobs Bank. Starting 2017, you will also have an Individual Learning Portfolio (ILP), which will provide a whole suite of tools and labour market information to help you to plan your career throughout your life. In the longer term, the Jobs Bank will also be integrated into this ILP.

Next, we are helping PMETs to equip themselves to achieve their career goals. PMETs are, in fact, a key focus under SkillsFuture, in three ways.

First, we are helping PMETs progress further in their careers. The SkillsFuture Study Awards and SkillsFuture Fellowships will help individuals achieve skills deepening and mastery in their respective fields. We also want to develop Singaporeans for positions of leadership in our industries. This requires both depth and breadth, and both local and global experience. I am pleased to inform Mr Zainudin that the SkillsFuture Leadership Development Initiative will support companies to develop or enhance in-house programmes to groom their Singaporean employees to take on these leadership roles. This will help Singaporeans gain exposure and experience in key global or regional markets and critical business functions. The initiative will be implemented progressively across sectors from this year, and will build on existing efforts to develop a pipeline of Singaporean leaders, such as MAS' Finance Associate Management Scheme and International Postings Programme, or EDB's on-going engagements with companies to enhance their talent and leadership development programmes. I urge all Singaporeans to make full use of these opportunities to broaden their experiences and to deepen their international outlook.

Second, we will finance an enhanced funding support for mature PMETs. Education and training subsidies for all Singaporeans aged 40 and above will be enhanced to a minimum of 90% of training costs for courses funded by MOE and WDA. A minimum of 90%. This is a substantial increase from the current minimum subsidy of 75% for MOE courses, and 50%-70% subsidy for WDA-supported courses. Courses already subsidised at above 90% will retain their existing rates. This will benefit PMETs substantially. Also because PMET courses tend to cost more, and so the absolute quantum of subsidy will be correspondingly higher.

Let us say you are a mature PMET and you want to go for a WSQ Diploma and Specialist Diploma in Precision Engineering (Master Craftsman Skills) from Nanyang Polytechnic, which costs $27,200. The net course fee that you need to pay, with the previous 70% subsidy, was around $8,100. With the enhanced subsidy of 90%, you just need to pay around $2,700. On top of that, you can use the $500 SkillsFuture Credit that you will be receiving, therefore, paying only $2,200. After graduating from the Master Craftsman programme, you can become a certified Master Craftsman after a certification interview, like Mr Kenneth Koh. Kenneth started off as a machinist in JEP Precision in 1992, after completing his Nitec. He participated in this programme, and when he graduated in 2013, he was promoted to Senior Manager, and enjoyed a pay increment of about 20%. He is now leading the entire manufacturing engineering department in his company, delegating projects and providing training to his colleagues.

Many PMETs have busy work schedules or heavy family commitments and are unable to commit to a fixed, long period of training. This is the third aspect where SkillsFuture will help – to inject more flexibility into the training landscape to cater to their varying needs. As Minister Heng mentioned, MOE will expand the range of flexible, bite-sized modular courses offered by our IHLs. Under SkillsFuture, WDA will also aim for at least 75% of courses offered by its training partners to incorporate online or workplace learning components.

There are also PMETs who are switching jobs mid-career for various reasons – some to pursue their passions, to join a growth industry, or because their companies are restructuring. The third prong of support for PMETs is, thus, to provide them with good avenues to take on new jobs, through place-and-train programmes.

We will enhance the Max Talent Programme. In April 2012, we introduced the pilot Max Talent place-and-train programme to help PMETs access good opportunities in SMEs and, at the same time, enhance opportunities for SMEs themselves. In the past two-plus years, there have been 1,000 successful placements, with a good six-month retention rate of over 80%. Given the positive feedback, we will enhance this programme with a stronger career development component, and will work towards matching 3,000 PMETs with SME jobs over a three-year period. The enhanced programme will be called P-Max, and is open to all PMETs at various stages of their career, including those who are currently unemployed. P-Max for PMETs.

If you are thinking of switching to a completely different sector, one option is to take up, as mentioned earlier, a Professional Conversion Programme (PCP). Just last November, we had substantially increased the monthly salary support given to employers who hire PMETs on a PCP in the place-and-train mode, from the previous 70% of basic monthly salary, up to 90%. This enhanced support is targeted at PMETs who are aged 40 years and above, or those unemployed for six months or more. Employers have found the PCPs very helpful. Dr Vincent Ng, Executive Director of AMKFSC Community Services, said that his company had a very positive experience with hiring Professional Conversion Programme trainees, as they are very dedicated to making a positive impact in society, and also bringing with them a wealth of life experiences. He found the salary support from the Government particularly helpful in alleviating manpower costs, especially for the social service sector, as many organisations, do face very tight resource constraints.

Lastly, we will step up our placement and job matching efforts for those PMETs seeking dedicated help. WDA will complement its existing career services for PMETs through collaboration with private search and placement firms. This will help to widen the network of jobs that PMETs can access.

To complement what we are doing for locals through SkillsFuture and the various PMET measures, we will also continue to take progressive steps to raise the productivity of our foreign workforce. Today, employers pay lower levies for higher skilled R1 workers compared to less skilled R2 workers. It encourages companies to hire skilled workers who are more productive, but who, at the same time, are likely to command higher wages.

Mr Christopher de Souza would be pleased to know that, this year, we have worked with the Process sector to implement several productivity-enhancing initiatives. First, we will enhance the Process R1 criteria to be more reflective of market-relevant skills. The current skills test pathway will be paired with a salary requirement, to ensure that only workers whom employers value are given R1 status. We will also introduce a new salary plus experience pathway. So those better-paid workers who have worked in Singapore for some time can be R1, and employers who hire and retain them will benefit from lower R1 levies. This is in line with Mr Yeo's suggestion to provide levy incentives for better skilled workers. In fact, the enhanced criteria will be a more reliable way of identifying workers who are genuinely skilled and productive. These changes will kick in in 2017, to give companies time to retain and to train their workers up to this level and, therefore, to enjoy lower R1 levies.

The skills tests for R1 recognition will also be harmonised under the Process WSQ to provide skills upgrading and multi-skilling progression pathways. This will be further supported by a policy change, to allow employers to hire experienced Work Permit Holders at the end of their Work Permit term or any time, with the previous employer's consent, without having to send them back to their home country first. These changes are in line with Mr Yeo Guat Kwang's concept of a progressive skills recognition framework, as well as his suggestion to allow employers to hire experienced Work Pass Holders without them having to be sent home first at the end of their contract. It will support the retention of a more experienced and a skilled workforce.

Now let me turn to another important issue affecting Singaporeans, and that is with regards to assurance in retirement and the role of our CPF. We have been making concerted efforts to provide greater assurance to Singaporeans in old age on three fronts: (1) healthcare needs, (2) housing needs; and (3) cost of living needs. On the healthcare front, the various healthcare subsidies and, most importantly, MediShield Life, will offer better protection for all. The Pioneer Generation Package will also help the current elderly better meet their healthcare needs and also help to alleviate the cost burden on their families as well. Our home ownership rates across income levels are among the highest in the world. In recent years, we have further increased housing grants to help middle and lower-income households own their homes. In addition, the GSTV cash payouts and Service & Conservancy Charges (S&CC) rebates serve to help lower-income households with costs of living. Eligible older Singaporeans will also receive an extra Seniors' Bonus to help with daily expenses.

We have been systematically taking steps to help boost Singaporeans' retirement savings and income. We top up the CPF accounts of low-wage workers via Workfare, and introduced Extra Interest for smaller CPF balances. As announced by Deputy Prime Minister Tharman in his Budget Speech, we will raise the CPF salary ceiling, increase CPF contribution rates for older workers, and provide an additional tier of Extra Interest for older CPF members. We will also introduce the Silver Support scheme, which will be a permanent scheme, to provide a regular income supplement for the less well-off elderly. These changes will take effect in 2016.

Mr David Ong has supported the move to increase CPF contribution rates for older workers and some have also asked if rates can be increased further for those over the age of 55. In this round of adjustments, we will be restoring the CPF contribution rates for workers aged 50-55 to the same level as younger workers and making smaller increases to the rates for those aged 55-65. It is important to understand that CPF contribution rates for older workers were lowered in the past primarily to reduce their hiring costs and, ultimately, to improve the employability of older Singaporeans. That is really the key focus. We are more ready to remove this disparity in rates for the 50-55 age band because the employment rate for this group has improved considerably and is almost on par with younger workers. However, it would not be prudent at this stage to raise the contribution rates for those above 55 too quickly as the employment rate in this group is still considerably lower than that for those who are younger.

Ms Lee Li Lian spoke about the need to provide greater flexibility within the CPF system. The truth is, the CPF system has evolved over the years actually to cater to the differing needs of Singaporeans, and this has meant introducing various forms of flexibilities that members enjoy today. In fact, some would criticise that there are too much flexibilities, as it is. For example, we have the flexibility to draw on our CPF funds for training, or for the education of our children, or to invest in a variety of financial instruments under the CPF Investment Scheme. But the CPF's core purpose, however, must continue to be about providing for the retirement needs of Singaporeans. That is why I was so glad to hear Mr Gerald Giam affirming the Workers' Party's position on the need for enforced savings, without which, he and many others "would have saved much less for retirement", and that "the Workers' Party is not asking for CPF members to be allowed to withdraw all their CPF money in a lump sum". I think this is a reflection of a realisation of how important it is for us to balance the need for flexibility and the need to continue to provide for their retirement adequacy for the long term.

Last month, the CPF Advisory Panel announced Part One of its recommendations. These were made following a period of consultation and engagement with Singaporeans from all walks of life. The Panel's recommendations are part of that journey to introduce more flexibility to cater to the needs of members today while bearing in mind that retirement adequacy remains our primary objective, and especially as longevity is upon us; more Singaporeans are going to live longer, so how do you ensure that retirement adequacy continues for many years to come?

It is not easy to find the right balance between adequacy, flexibility, and simplicity. I think the Panel has done a good job in trying to steer this path. The Government has accepted the Panel's recommendations. Let me walk you through how the Panel recommendations will affect the key decisions that Singaporeans will need to make as they approach their retirement.

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Let us take, for example, Mr Tan who is 54 this year and he will be turning 55 in 2016. Mr Tan works as a sales manager in a department store. He earns about $3,500 a month. He is married with two children. What are the important decisions that he needs to make at age 55 to provide for a secure retirement? Well, first, he needs to think about what is the monthly income he needs for a secure retirement. How should he go about thinking about this? Does he own a property? Does he have a non-working spouse he will need to support? Does he also have private savings outside of the CPF and how much can he expect to receive in family support?

In the case of Mr Tan, like most Singaporeans, he owns an HDB flat, and in most instances, at the age of about 55, it is fully paid up, so he need not worry about rental expenses in his old age. He also has some savings in his bank account that he has set aside over the years for emergencies, and he has two children who love him and his wife, and he is quite confident they will take share the responsibility in looking after him for his old age. But for the purposes of this example, let us ignore the two children and assume that they are not looking after them.

But let us say that Mr Tan has about $90,000 in his Retirement Account when he turns 55. This is the median amount that someone aged 55 will accumulate. Having considered the matter, Mr Tan thinks he can get by for himself and decides that perhaps the basic payout of about $700 will suffice. This means that he will need to set aside $80,500 in his Retirement Account and can withdraw the rest.

Mr Tan's one important concern is actually the wellbeing of his wife who is of the same age. She does not have much CPF because she stopped working quite some time ago. She becomes a full-time home-maker after their children were born. It is important to help family members build up their CPF savings so that they too can have their own CPF LIFE plan and payouts in retirement. Ms Foo Mee Har has asked how we can help stay-at-home mothers to meet their retirement needs. I fully share her concerns. One way we will address this issue is by making it easier for CPF members to transfer their CPF savings to their spouse's CPF, and the Government will provide good interest rates on that as well for them. Currently, CPF members can only transfer their CPF savings above the Full Retirement Sum to their spouse's CPF. From next year, we will allow savings above the Basic Retirement Sum to be transferred to the spouse's account. I hope more Singaporeans will take the opportunity to make such a transfer. Ms Foo suggested making the transfer automatic, or to require spouses' joint consent before withdrawals of Retirement Account savings can be made. These are personal decisions. We believe that at this stage, it is best left to the couples to decide. It would, I think, be intrusive for the Government to intervene.

So, in Mr Tan's case, he decides to transfer his CPF savings above the Basic Retirement Sum, a sum of about $10,000, to his wife. It is a win-win situation for him and his wife because if he had left the money in his own CPF account, he would be the only one earning the higher interest rates on the first $60,000 of up to 6%. By making the transfer, both Mr and Mrs Tan can enjoy the benefits of these higher rates. If Mr Tan had kept that $10,000 in his own account, he would be drawing 4%. But with the transfer, this same $10,000 will be earning up to 6% interest for Mrs Tan, that is a very significant extra 2% interest on top of the already attractive 4% interest rate provided for her.

Mr Tan has also some private savings. Frankly, he is not very pleased every time he opens his bank book, as the interest is earning less than 1%. He thought of investing in the stock market but is unsure of what might be a good investment and in his older years, he really does not want to risk his savings. He decides to use $25,000 of his personal savings to top up his wife's CPF account to further boost her CPF savings. This will earn up to 6% in Mrs Tan's CPF account, which is much higher than the interest in the bank of less than 1%. Mrs Tan also turns 55 next year, and by the time she is 65, this $35,000, comprising $10,000 which he had transferred earlier from his CPF account and the $25,000 from his private savings, totalling $35,000. In these 10 years, how much has this grown based on interest? Well, it will have grown to about $60,000 by the time she reaches age 65. She will now have her own CPF LIFE plan and will receive monthly payouts of about $340 for life.

While Mr Tan has decided that he needs only the payout from the Basic Retirement Sum for himself, there are others who may desire a higher monthly payout in retirement. They can choose to top up their Retirement Account up to three times the Basic Retirement Sum (also known as the Enhanced Retirement Sum), after they turn 55. Some have said that only the wealthy top few per cent will be able to benefit from the Enhanced Retirement Sum. Not so. Thirty-five per cent of active members at the age of 55 in 2013 had CPF savings above the Full Retirement Sum. Come 2020, the proportion is estimated to rise to about half of all active members. So, they can also top up, up to beyond the Full Retirement Sum, and enjoy the higher interest rates.

Furthermore, 90% of elderly households are home owners, and if they decide to downsize during their retirement, something smaller which is a bit easier to manage, or participate in the various monetisation schemes, the new flexibility of an Enhanced Retirement Sum will provide them with a useful option for placing their cash proceeds in their CPF account.

Let us fast forward 10 years and walk Mr Tan through the decisions that he has to make at age 65, as he enters the retirement phase of his life. The savings that Mr Tan set aside in his Retirement Account at age 55 will have now grown with interest and working contributions. He now needs to decide on three things. First, he needs to decide whether to withdraw up to 20% of his Retirement Account savings in a lump sum. This is one of the new flexibilities recommended by the CPF Panel. How should he choose? Some people may need that lump sum immediately for various reasons. Others will not want to make a withdrawal because it means lower CPF LIFE payouts, or because they have already set aside some other funds for emergencies.

In the case of Mr Tan, he does not think he needs the money straight away but he likes the fact that there is flexibility of having a lump sum that he can withdraw as a safety buffer in case of unforeseen family circumstances and emergencies that may arise in the next few years. What can he do? Well, we will allow, indeed encourage, him to leave that 20% in his CPF. He can withdraw it later when he needs it.

The second decision that Mr Tan has to make is whether to start his CPF LIFE payouts straight away at age 65 or whether he can afford to wait to a bit later, perhaps up to age 70. He is a healthy man and is keen to carry on working. Actually 40% of Singapore residents aged 65 to 69 continue to work. And I believe with the extension of the Retirement and Reemployment Act, and with more Singaporeans being in good health, many would actually opt to continue working as part of active ageing. Mr Tan does not need his payouts to start as he continues to earn an income from work. He also knows that by deferring his payout start age, he can get a permanently higher monthly CPF LIFE payout. Every year he defers his payout start age, his monthly payouts go up by 6% to 7% permanently. So, if he carries on working and starts drawing on his CPF savings only at age 70, he can get a payout that is as much as 30% more. He decides that this is a prudent thing to do, so long as he is still able to work. But he knows if he were to stop working for whatever reason, he can start his CPF LIFE payouts at any time between the ages of 65 and 70.

Finally, the third issue that Mr Tan will have to decide on is which CPF LIFE plan he wants. As we know, there are two CPF LIFE plans to choose from – one that gives you a higher payout, and slightly lower bequest and another that gives you a lower payout but a slightly higher bequest. Today, members are asked to choose their CPF LIFE plan at age 55, even though their payouts will start some 10 years later. From January 2016, members will only need to choose their CPF LIFE plans from age 65 or at the point when they wish to start payouts from CPF LIFE. In the case of Mr Tan, he decides to start his payouts later, at age 70 and he will only need to make his choice of CPF LIFE plan then. His savings will only be committed to CPF LIFE when he makes his plan choice.

These are all important decisions that Mr Tan has to make at age 55 and 65, and the choices he makes will have consequences on the type of retirement that he will enjoy. Mr Zaqy Mohamed and Mr Seng Han Thong asked about how we are communicating the CPF changes to members to help them make better decisions. I share the concern that with more options, with more decisions to make, it does become more complex. That is inevitable. You want something simple to understand, then you will have very few choices, very few options. We cannot run away from that. But we believe this flexibility that is being woven in is important.

Let me assure the House that my Ministry and the Central Provident Fund Board are committed to guiding members through these critical junctures as they transit from their working life into retirement. We will scale up and intensify our efforts to first raise awareness and understanding of the CPF system and the new changes.

We are also working on making available guided one-to-one retirement planning service to CPF members to help them better understand the various CPF options and decide on the option best suited for their individual needs and circumstances. We have completed a three-month trial project and will pilot a retirement planning service in the second half of this year. We plan to ramp up the service gradually from 2016. Our priority will be members who are approaching 55 and may need the service most, such as those with outstanding housing loans and may be affected by the transfer of their Ordinary Account savings to the Retirement Account at 55. We hope such services will help members navigate the CPF system better and make better use of their CPF savings.

Ms Foo Mee Har and Ms Lee Li Lian also asked whether more flexibility can be provided for the use of Retirement Account savings for housing. This is an issue that has been raised several times in Parliament by various Members in this House. Although the number of people affected by this is quite limited, the fact is it is challenging for those affected. Last July, I explained that we already exercise some flexibility in the use of CPF for housing after 55. But the transfer of CPF members' Special Account (SA) and Ordinary Account (OA) savings to the Retirement Account (RA) at the age of 55 is necessary to help them earn a higher rate of return overall so that they will have more savings and higher payouts in retirement. Remember the example we cited earlier of that 10 years from 55 to 65 and the impact it had on both Mrs Tan and Mr Tan's accounts. That is exactly what it means.

But let me take this opportunity to explain to members what flexibilities continue to exist for the use of CPF for housing after the age of 55. First, the Ordinary Account continues to exist even after the Retirement Account is created. Any new contributions to the Ordinary Account after the age of 55 can continue to be used for housing because many people continue to work after 55. In addition, any money in the Retirement Account in excess of the Basic Retirement Sum can also be used for housing.

Second, we have, on appeal, allowed CPF members to use savings in their Retirement Account that originated from their Ordinary Account to meet their housing needs even if their RA savings are below their Basic Retirement Sum, meaning that for the amount of money that originated from the OA, on appeal, we can look at how they can use some of it to meet the housing needs.

Third, CPF members turning 55 can also opt to use their OA savings to fully or partially redeem their outstanding housing loans if they have concerns with their ability to continue servicing their housing obligations after the transfer of savings to their RA at age 55. Members can request to leave in the OA the monies that they may require for their housing obligations, and not transfer these monies to the RA at age 55. But it is important that they need to understand that these savings in the OA will not enjoy the RA rates of up to 6%. The CPF Board will be including this information in its letters to members turning 55 this year, so that they can consider if they want to exercise these options.

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While these flexibilities will help CPF members meet their housing needs, it is important to emphasise this – members must bear in mind that further expenditure and use of these monies will deplete their CPF cash savings for retirement. I do urge CPF members to be prudent with their housing purchases, especially when buying or upgrading a property at an older age. MND and HDB have already taken steps in the previous years to manage housing loans that is available, this means to also help individuals not over-extend their housing consumption.

It is important to pay attention to this, because older members may have to take on loans with shorter tenures and higher monthly instalments, and they should also factor in any decline in CPF contributions as they age, which may mean that they may need to service their monthly housing instalments with cash on top of CPF. These are decisions that individuals need to bear in mind.

While the CPF Panel's recommendations will offer Singaporeans more flexibility and options to better plan for their retirement, some are worried that their fellow Singaporeans might not be able to save up enough in their CPF accounts to meet the Basic Retirement Sum. The numbers at a larger level can be quite mind-boggling for young Singaporeans just entering the workforce.

Let me try to reassure younger Singaporeans by using the example of Ben. He is a 25-year-old Polytechnic graduate who has just started work, with a starting salary of $2,200. The median starting salary for Polytechnic graduates today is about S$2,400, but let us be more conservative, let us take the rates which were applicable a few years Р$2,200. He has a job and he is earning an income, and Ben is thinking of proposing to his fianc̩ and is looking around the market to purchase a home. I hope he decides to purchase a home within his means, and frankly there is no better deal than a HDB BTO flat if he qualifies for one.

Let us say Ben decides to buy a 4-room BTO in Punggol with his wife-to-be, and that is a good choice. Both of them use their CPF savings to pay for their home. As this is their first flat, they will enjoy a substantial housing grant. For all intents and purposes, it is very likely they are able to fund their housing needs largely from their CPF contributions without needing to draw on cash.

Ben works regularly, and salary grows over time. He and his employer contribute on a consistent basis to his CPF account – let us assume he works only between the ages of 25 and 65, so about 40 years. Let us assume that he works only 32 out of 40 years. So, eight years here and there, takes time off, changing jobs, and perhaps choosing his jobs, so let us take eight years off – 32 out of 40 years. By age 50, it is estimated that Ben would have fully paid off his home loan. By age 65, he would have accumulated sufficient CPF savings to purchase a CPF LIFE policy that will give him a monthly payout that is roughly 60% - 70% of what he used to earn before retiring.

How are we able to do this? Many people will wonder. A lot of it has to do with the effect of compounding on our CPF savings. Allow me to illustrate with a very simple example. Let us assume someone has a salary of $2,200, he and his employer will contribute about $130 per month into his CPF Special Account alone. This contribution will grow up to about $250 per month as more gets allocated to his Special Account as he gets older. Let us assume that he works similar to Ben, only 32 out of 40 years, and we are not including any wage increases that he is likely to enjoy in the course of his lifetime.

If all these contributions were to be set aside in a Khong Guan biscuit tin under his bed, what would the amount be by the time he reaches 65? About $55,000 – that is what he will get when he consistently saves that $130 to $250. But it is not in a Khong Guan biscuit tin; it is in the CPF Special Account. It is "special", because his monthly contribution earns interest of up to 5% before age 55, and up to 6% thereafter. Adding the interest earned, what do you think would be the amount in his CPF Special Amount at age 65? About $165,000 – three times what he would have put in.

If he worked for example 36 out of 40 years, he would have accumulated about $60,000 which would grow to about $180,000. This is solely looking at what he has put in to his Special Account. This is not magic, it is just basic mathematics. This is a very conservative estimate, because again, it does not even account for wage growth and whatever savings he has accumulated in his Ordinary Account after paying off his flat. If you add those, clearly he would have even more.

My point in sharing this example is to highlight that the retirement picture for younger Singaporeans is relatively healthy, and most Singaporeans who work regularly and make prudent housing choices, should have no worries building up comfortable retirement needs within the CPF system. And the point I am making also is how do we maximise and use the CPF system to our advantage.

Mr Pritam Singh suggested that we step up awareness on employers' responsibility for CPF contributions for part-time workers and to encourage employees to step forward if they do not receive their right contributions. That is absolutely essential, because as you can see the compounding effect that you have in your CPF account matters, especially for lower income and less educated members, it matters even more. Which is why the WorkRight campaign started in 2012 to improve compliance with employment laws and we have stepped up our public education efforts to increase awareness. We have increased our abilities ten-fold. My assurance is that we will keep up this effort, and we do not plan to ease off.

We recognise that there will be a number of Singaporeans, particularly low-income elderly and non-working women especially, who will have low balances because their wages, especially for those who have grown up in a third world Singapore, where their wages have been lower, or they may have been unable to work for medical reasons or because for many of them, they had to be caregivers at home. There have been calls for more targeted help for the latter group, to improve their retirement adequacy. I agree with the ST Opinion piece on Saturday that the social pension systems in Japan and some of the western countries providing targeted retirement welfare for women might not be the best solution, especially given issues with long-term sustainability.

Our support for non-working women is two-fold. First, we encourage non-working women to get back into the workforce. We support the effort. I am glad to note that Labour Force Participation Rates (LFPR) for women have risen over the years and the difference in average CPF balances between men and women have started to narrow. In fact, from 2003 to 2013, we have seen a higher growth rate in the net CPF balances of females as compared to males.

We also introduced WorkPro in 2013 to support the employment of our local workers, especially the economically inactive and older workers. WorkPro will help employers put in place work-life measures such as flexible work arrangements so that more economically inactive Singaporeans can return to work, and many have done so. We will also support job redesign and training costs in an effort to improve job-fit and retention. There is also generous funding of up to 90% for economically inactive Singaporeans, for example, women who wish to step back into the workforce to help them acquire the requisite skills to find a job more easily.

Second, family remains an important pillar of support for women. As mentioned earlier, we have enhanced the rules to make it easier for CPF members to transfer their CPF savings to their spouse's CPF. We will pay out attractive interests for these accounts so topped up. I urge all Singaporeans to consider how to maximise the CPF system to boost your family's retirement adequacy needs, especially to look after your loved ones, who perhaps have lower CPF accounts, because they have taken time off from work to look after the family.

Our social safety nets should remain and be strengthened for the vulnerable groups. The Government and the CPF system alone will not be able to solve all problems. This is a role in collective responsibility. Individuals, families, employers, social groups – we all need to step up to provide the assistance and support. Let me reiterate some of the key points raised by Deputy Prime Minister Tharman during Budget speech on our overall retirement support framework.

Firstly, the CPF will continue to play a core role in helping us meet our retirement needs. It is a social security savings scheme that embodies a tripartite approach to retirement adequacy, with individuals taking some responsibility to set aside savings for their old age, employers playing their part through the employer share of CPF contributions, and Government playing a part through various top-ups and supplements to the CPF. It is an important pillar in the overall retirement support framework for the majority of Singaporeans who work and contribute to their CPF accounts.

Secondly, the CPF is not the only pillar of retirement adequacy. In our context in Singapore, housing is a key pillar as well. 90% of elderly households are home owners. This is a remarkable statistic. Because of our high home ownership rates, the large majority of Singaporeans do not have to worry about paying rent in retirement. Our homes remain our homes, is a place of emotional refuge, but at the same time, it can also be if needed, a valuable asset that can supplement our retirement if there is a need. And, we know many elderly folks may find their 4-room flat, 5-room flat is a lot larger now that their children have moved on, and they might want to downsize to something more manageable. Some will choose to rent out a room, some will right-size to a smaller flat or join HDB's monetisation schemes and get some additional income for retirement.

Third, healthcare especially via Medishield Life. MediShield Life will provide better healthcare protection and coverage for all, keeping the premiums affordable. This is on top of the various healthcare subsidies that Singaporeans now enjoy. And we are not forgetting, the Pioneer Generation Package that we introduced, this will go a long way to help a very special group of Singaporeans with their healthcare needs for life. At the same time, it is important to remember that this also helps to alleviate the financial burden on the children.

Fourthly, the Government will do its part to supplement the retirement savings of those who are more vulnerable in our society through various CPF top-ups and cash subsidies including the Workfare Income Supplement scheme, GST vouchers and the Seniors' Bonus. The Silver Support scheme will be another major plank in our retirement support framework for Singaporeans.

Madam Chair, there are many details involve in trying to translate our vision into reality. It is easy to get lost in the details. But details matter, because as I have mentioned, we are a democracy of deeds, not just words. What are we trying to build? It is important to remember that we are trying to build a better society – one where we have good jobs and opportunities for all Singaporeans. Therefore we need to nurture an environment, economy that can provide that.

We need to provide good opportunities with higher incomes, we also need to provide for secure retirement adequacy for all Singaporeans. This is anchored on the four pillars I have just shared: CPF system, housing, healthcare, and the fourth pillar being to provide for lower income Singaporeans via workfare during their working life, and then providing for lower income Singaporeans in their latter years via the Silver Support scheme.

In between these pillars, our social safety nets, they are there to help catch hold of Singaporeans who are invariably may falter and who may be disadvantaged. These are the pillars upon which our society has to be built. They are not just physical edifices; it is not just a building. These are structures put in place by Singaporeans, for Singaporeans.

Ultimately, this is what we are trying to build here in Singapore. It is work in progress, but I think it is really good work. Against all odds, we have done well in last 50 years. The next 50 years, I am confident we can do better.

Fair Consideration Framework (FCF) and Jobs Bank Enhancements

Mr Patrick Tay Teck Guan (Nee Soon): Seven months into the Fair Consideration Framework, I wish to ask MOM to provide an update on how effective this has been to level the playing field for local PMEs and remove nationality-based discrimination in hiring practices.

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Since 1 August 2014, how many complaints have been received and how many companies have MOM called up for additional scrutiny, and what has been the success rate in convincing and ensuring the companies discontinue their poor hiring practices? Also, can MOM look into the possibility of extending the FCF to S Pass holders as well?

The Jobs Bank has helped Singaporean PMEs including non-PMEs with the more than 70,000 job postings. However, I am concerned with three aspects. They are, firstly, placement rates; secondly, authenticity and audit; and thirdly, accessibility of the Jobs Bank.

Firstly, I urge MOM to monitor the placement rates of the jobs posted and in particular the numbers going to Singaporean PMEs. More importantly, MOM should see how to partner with e2i and our NTUC PME Centre to see how best to help Singaporean PMEs better navigate and connect and be successfully placed in those jobs listed in the Jobs Bank. Also, what has MOM done and plan to do to ensure recalcitrant employers do not just advertise in the Jobs Bank for the sake of the advertising requirements and just pay lip service and make the FCF and Jobs Bank a mere window dressing.

Secondly, it is also imperative to have a strong audit system of the jobs in the jobs bank to ensure these are quality jobs and authentic jobs for Singapore PMEs. Thirdly, I hope to see the jobs bank being more mobile-friendly especially when searching through a smartphone. Furthermore, the search functions of the bank can also be enhanced to ease having to plough through the long list of jobs.

Finally, I hope to see the salary range or band as a mandatory feature in the Jobs Bank to provide clarity on whether these are indeed PME types of jobs since non-PME jobs can also be posted on the Jobs Bank.

Effectiveness of Jobs Bank

Mr Gerald Giam Yean Song (Non-Constituency Member): Mdm Chair, the Jobs Bank portal was launched in July 2014. It now boasts of thousands of job postings, registered employers and Singaporean job seekers. However, none of these point to its effectiveness in meeting the objective of ensuring that Singaporeans are fairly considered for jobs before firms hire foreigners. This is a key plank for the Fair Consideration Framework. I would like to make some observations about the Jobs Bank and provide some suggestions for improvement to meet this important objective.

First, the outcomes of the Jobs Bank postings do not seem to be effectively tracked. MOM should require employers who post advertisements on the Jobs Bank to subsequently indicate whether those positions were filled, and if so by Singaporeans or foreigners. It should be done whether or not the successful candidate came through the Jobs Bank. This will enable MOM to track what proportion of jobs in a particular company or industry was filled by Singaporeans or foreigners. This will help track those companies' compliance with the Fair Consideration Framework and will also provide the Government with more detailed data about what types of jobs have local skills shortages so as to plan better education and training policies.

Second, employers are not required to provide any evidence that they fairly considered Singaporeans for the post. They just need to advertise on the Jobs Bank for 14 calendar days before applying for an Employment Pass. In other jurisdictions, including Hong Kong, employers are required to state justifications for employing a foreign candidate and the reasons why the post cannot be filled by locals before an employment pass is issued.

Third, S Pass applications do not require prior Jobs Bank posting. This should be included as well so that Singaporean PMETs have greater opportunities to apply and be fairly considered for these positions.

FCF

Mr Pritam Singh (Aljunied): Mdm Chair, the Fair Consideration Framework is an important tool to ensure that Singaporeans are fairly considered for jobs. In the Parliament last year, the Minister informed the House that MOM had a set of internal triggers to determine if employers would be identified for additional scrutiny based on a broad range of factors in case of unfair unemployment.

I would like to ask what is the scope of the Ministry's internal triggers? What is the broad range of factors that the Ministry employs in determining whether companies are staying true to the ethos of the Fair Consideration Framework?

I would also like to ask the Minister how many companies have been advised or investigated by the Ministry thus far and how many have been in breach of this Framework? In addition, which industries have most to do in adhering to the Fair Consideration Framework? Does the Ministry also plan to increase penalties under the Fair Consideration Framework and what does the Ministry plan to do to engage firms that are not doing enough to hire and develop Singaporean PMEs?

Thirdly, in step with the Ministry's active role to engage firms to address this problem, does the Ministry plan to tie firms up with the SkillsFuture Council to address shortage of Singaporean staff by promoting certain courses among Singaporeans for consideration?

Finally, as part of the Fair Consideration Framework, would the Ministry consider highlighting and promoting companies that go out of their way to hire, retain and establish dedicated senior appointment career track for Singaporeans and to highlight such companies as industry champions?

Exploiting Information in Jobs Bank

Assoc Prof Randolph Tan (Nominated Member): The Jobs Bank is a very important new resource, especially given that it is mandatory for employers to post positions for which they seek foreign professionals on Employment Passes.

Since the main aim of the Jobs Bank is matching, better matching rates will lead to more interest and hence more participation from stakeholders. Hence, it is inevitable that public interest will focus on matching performance, especially from job seekers. But the Jobs Bank can also be a tool to set realistic expectations about salary and work requirements, and should not serve to promote frivolous work attitudes, such as job-hopping.

I believe it may not be useful to provide raw matching data when the system is still in its preliminary stages. However, to respond to interest from users, instead of actual matches, indicators of related activity, such as number of interviews a job seeker can expect to be called for, may be useful.

Since policy-makers should be able to mind the vast database to see where and how the gaps in matching are developing over time, I hope the Ministry will also consider sharing some of this information more regularly once the system has stabilised.

My first question is about potentially expanding the Jobs Bank. Because volume is important, I would like to know if the Ministry can consider expanding it to cover S Passes. In practice, the distinction between S Pass and Employment Pass hiring may be gradual rather than a sharp delineation. Since employers of S Pass holders are already required to meet tightened S Pass criteria since 2010, they should, for the moment at least, not be required to wait 14 days before actually hiring a foreign S Pass holder. But requiring them to also post their jobs for 14 days will help the employers themselves as well as local job seekers gain more information about where S Pass holders are in demand. Although we should realistically expect problems and perhaps some negative sentiment in the initial stages, there are serious job seekers who value information above all else and they value any information which can help them understand employers' needs and are willing to expend significant effort in preparing to meet them.

My second question is actually a proposal. I would also like to ask if a referral system is in place, where employers as well as job seekers who have been unsuccessful in multiple applications are referred to a relevant agency for follow-up. PME job seekers, for instance, could have the profile of their attempts analysed by an agency such as CaliberLink. If it is not already in place, would WDA consider putting in such a referral system?

Fair Employment Practices

Mr Zaqy Mohamad: Madam, in the last couple of years, the Government has taken many steps to ensure that fair employment practices in Singapore and there are ample opportunities for jobs for Singaporeans. This includes the Fair Consideration Framework (FCF) to put in place fair employment, hiring and staff development practices that are open, merit-based and non-discriminatory in the Jobs Bank, as the Member just before me said, to open job opportunities for Singaporeans for 14 days.

Broadly, I would like to ask how effective these measures are in providing new jobs and whether Singaporeans now feel that they are getting a fairer deal. Has MOM seen complaints reduced, in particular, PMETs competing with EP holders in technical fields? How many complaints have MOM received, particularly involving EP-related cases, and how many companies were involved? How has MOM handled these cases and what are the outcomes to assure PMETs that the FCF is working in their favour?

Specifically, we also need to zoom in to various industries and determine which sectors where fair employment practices need to have the most improvement. For example, I have also come across cases at MPS where a local was hired on a part-time or a daily rated basis while foreign workers were used full-time in some technical lines in order to manage costs while employers can still keep the local workers quota. I know this is on a case-by-case basis but we need to work on more areas to create a fairer working place for Singaporeans.

Legislate Cavegiver Leave

Ms Kuik Shiao-Yin (Nominated Member): Our dependency ratio is rising and someone needs to take up the cost and responsibility of care giving for our vulnerable. We still hope for that first someone to be from the family rather than the state, and that is right. But the problem is this: not every family can.

An NTUC survey of 3,600 people discovered that although 60% of them have multiple dependents, 62% did not have flexi-work benefits and 77% did not have eldercare leave. Many working caregivers are forced to use up their annual or sick leave or just take the career reputation hit of arriving at work late and leaving early.

In the absence of a supportive workplace, how some families currently solve this situation is to have one family member leave paid employment to become the caregiver and the longer the caregiving stint the bigger possibility that this caregiver himself will end up being a dependent, having less funds for his own retirement.

Given a shortfall of local manpower faced by certain industries as well as our worries about helping individuals manage the cost of retirement, it is strategic to help our working men and women who are doubling up as caregivers to either stay in or re-enter the workforce if that is what they want. We should just not talk about the social value of family take care of family first but empower those who are trying to live out that value. And one of the most significant first steps to doing so is to legislate caregiver leave.

Public bodies have already set this example by providing its employees with eldercare leave since 2014. The private sector is currently not obliged to do so.

I am a multiple business owner myself, so I know this not a small thing to ask from businesses and it may be unpopular. And some fellow business owners will hear this and think, " A lamak! Yet another cost to take into account". But I am in Food and Beverage (F&B) and it is one of the most pressured profit margin industries in Singapore right now, so I know it is hard. But look we are not just business owners we too are human we too have family. Nobody came into this world alone and everybody has dependents. What you do for your workers will be what you hope will be done for you or yours.

These past few months when I have to care for my newborn, my father was simultaneously diagnosed with terminal cancer. If not for the flexible nature of my siblings' and my work, supportive co-workers and for my mum being a stay-at-home mum herself, there was no way my family could have been fully there for both dependents when they needed us most. My four months of legislated maternity leave ended up being conveniently caregiver leave as well, in some sense.

So, not everybody has that flexibility and not everyone will have employers are willing to give them that option. Legislation sends a very strong message to employers the need to support our care giving workers is by rule.

Mdm Chairman herself has called for legislation of eldercare leave before. Deputy Prime Minister too has spoken about the need for cultural transformation in Singapore with regard how we view our workers. So let us jump start that cultural transformation. Legal norms and policy norms are there to lead the way to where we believe our social economic norms need to be.

We would like to say that Singapore has no natural resources to boast our Singapore economy except our human resources. Well then, we should protect the integrity of this precious resource then. Singapore should not be afraid of taking the morals stand that our workers must not be treated as productivity units but as people who are and will always be part of a family. The well-being of our workers is intrinsically tied to the well-being of their family. So, can we legislate caregiver leave so that all our workers who need to care for their dependents are able to so with peace in mind?

Flexible Work Arrangement

Mr Zainal Sapari (Pasir Ris-Punggol): Mdm Chairman, lately, there is a growing trend where employers give their workers advance notice for work schedule as short as three days – despite our law stipulating that schedules should be given in the beginning of the month. This practice can be attributed to companies using technology that allow them to adjust work schedules at short notice to respond to operational needs and control costs. Unfortunately, for workers, it creates an unpredictable schedule that makes it more difficult to plan their work and family commitments.

Will Ministry of Manpower reach out to employers to educate them about the time norm required to inform workers on their work schedules? Would there be greater enforcement on the employers for them to notify their workers of their work schedule in the beginning of the month?

While the unions could monitor those practices in the unionised companies, there are many non-unionised companies that may be flouting the rule. I think it is important we strive towards a positive business environment with policies that work for workers as well as businesses.

The Chairman: Mr Heng Chee How. You have three cuts. Please take them together.

Re-employment Disputes

The Senior Minister of State, Prime Minister's Office (Mr Heng Chee How): Mdm Chair, under the Retirement and Re-employment Act, a mature worker reaching age 62 is eligible for re-employment. Where disputes occur between such workers and their employers, they may notify the Commissioner of Labour (COL) in writing, no later than a month after the last day of employment if he is not offered re-employment, or if he disputes the employer's grounds for not offering re-employment including not meeting the re-employment eligibility criteria of satisfactory work performance and medically fitness, no suitable job vacancy or dismissal during re-employment.

Or, he could inform the Commissioner of Labour no later than six months after the last day of employment if he feels that the terms and conditions of the re-employment offer or the Employment Assistance Payment (EAP) amount offered are unreasonable. This law took effect from 1 January 2012.

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I wish to find out, in the three years since it took effect, how many such disputes have come to the notice of MOM and what have been the outcomes? I also wish to ask for an affirmation from MOM that it is not the intent of the law or of the tripartite partners for companies to use the EAP freely in lieu of re-employment without first making every effort to effect re-employment. In addition, I seek a confirmation from MOM that in situations where companies have excess manpower and have to retrench, that they should abide by the tripartite guidelines on managing excess manpower and base their decisions on picking who to retrench on performance and not on age, and that re-employed or re-employment eligible employees are to be treated on the same basis as other employees in such circumstances.

Ageless Jobs

My second cut is on ageless jobs.

Madam, with an ageing local workforce, it is critical that proactive actions be taken to strengthen their employment and employability. For employment to take place, there must be a job and there must be a suitable worker. One key question to be addressed is whether jobs in Singapore are sufficiently ageless or age-neutral. The less age-neutral jobs are, the higher the incidence of mature workers not being considered capable of doing them. Conversely, the more we are able to render the jobs age-neutral, the more we can accommodate the continued employment and re-employment of mature workers without turning that into a cost or performance concern for companies, or a tall order for mature workers.

Experience and ground feedback suggest that there is much scope for rendering jobs and work processes in Singapore much more ageless so as to achieve age-barrier free access. Three reasons are often cited for the relative lack of action in this area.

First, is the unwillingness on the part of companies to redesign jobs or work processes. There is much inertia in entrenched systems, and there is a tendency to fix the jobs and look for people who fit the jobs rather than to dynamically evolve jobs to maximise the fit with the largest possible pool of workers.

The second is money. Companies also cite the cost of such redesign, whether in consultancy or implementation, to be a hurdle, given intense, ongoing competitiveness pressures and the complexity of grant-seeking. Thirdly, companies cite a lack of know-how in this area. The knowledge gap reduces the likelihood of companies taking action to improve in this area.

Madam, the MOM has introduced, among other schemes, WorkPro, part of which is to incentivise companies in the area of workplace and job redesign toward agelessness. I wish to ask for an assessment from the MOM on how WorkPro has been effective in addressing the mental and practical hurdles described earlier to produce pervasive impact, and what more needs to be done to accelerate the pace of such redesign towards ageless jobs in both the private and public sectors.

Evergreen Workers

My third cut is on evergreen workers.

The employment rate for older workers has been on the rise in recent years, reaching a record high of 66.3% in 2014 for the age band 55 to 64 years old. While this is very encouraging, we must also know that this did not happen by chance. I believe that three factors helped to push up the employment rate for older workers.

First, the coming into effect of the re-employment law in 2012. Second, a very tight labour market. Third, mature workers maintaining relevant skillsets and performance. None of these factors on their own would be sufficient to cause the result. In particular, we must not assume that the labour market will forever be tight, just because we have tightened foreign manpower policies. This is because the economy and the jobs it carries are subjected to business cycles, and there will be ups and downs. The one factor that is available to both companies and workers to actively invest in is in the training and skills upgrading of workers.

There is still a mindset amongst organisations and their human resource or operations functions that is not for continued investment in the mature workforce. The feeling in such organisations is that mature workers are nearing the end of their working life with the companies and investments in them would not be worthwhile. I challenge this mindset for two reasons.

First, the tripartite partners have agreed that given the realities of Singapore's ageing population, every effort must be put into enabling workers who are willing and able to work, a chance and a choice to do so.

Second, studies have shown that mature workers are much less likely than their younger counterparts to switch jobs. Thus, the assumption that there is insufficient runway to get a good payback on investment in training and skills upgrading of mature workers must be strenuous tackled. Mature workers must also recognise that the ultimate safeguard against unemployment would be to stay in demand. Their initiative and willingness to invest time and effort in upgrading and updating themselves will be the best insurance they can get.

In the light of this Budget's and the SkillsFuture Council's intent to invest in Singaporeans of all ages, I wish to ask for an elaboration of what would be done to invigorate investment in the training and skills upgrading of mature workers, so that their continued employment and employability would be further strengthened, and so that companies can more fully tap the potential and value of their mature workers.

The Chairman (Mdm Halimah Yacob): Mr Seng Han Thong, you have two cuts. Please take them together.

Re-employment of Older Workers

Mr Seng Han Thong (Ang Mo Kio): Madam, Government has called for re-employment of older workers. What is the progress in both the public and private sectors?

Among older workers who have accepted re-employment, were they hired on terms that were similar to their previous employment? What are the lessons learnt from engaging and encouraging older workers to work longer?

Readiness for the Ageing Workforce

Next cut – readiness for the ageing workforce.

Feedback on the ground is that employers generally lack the expertise to adapt their workplace to meet the needs of their mature workers.

There are also concerns that older workers might find it hard to remain employable. In terms of readiness for the ageing workforce, what are the strategies and programmes MOM has to help companies and workers prepare for these challenges that come with an ageing workforce?

The Chairman (Mdm Halimah Yacob): Ms Jessica Tan, you have two cuts. Please take them together.

Employment of Women and Matured Workers

Ms Jessica Tan Soon Neo (East Coast): We are witnessing a continual change in the way work is done and the kind of jobs that available and valued.

For businesses to benefit from the available talent base which includes women and mature workers, companies must have the ability to provide the right jobs and work arrangements.

So, with the improvement in the labour participation of both women and mature workers, can Minister provide an update on the wage profile and the progress these groups are making?

Even with increased labour force participation, I do believe that to attract and match more women and mature workers to the right jobs and for them to do well, there needs to be a targeted programme.

The emphasis of this targeted programme will, however, need to be different from that of the "Earn and Learn" programme. The focus needs to be around how work is organised and performance is rewarded. Having flexible work arrangements, for example, work hours, start times, and having the right tools that leverage on technology to provide access to information and quality communication and collaborative experience to allow flexibility for work to be done from anywhere. This will enable women and mature workers to take up these job opportunities and participate more effectively. These changes will not only benefit this group but also all the workforce and enable greater productivity in the workplace.

I must stress that, to be successful, these policies and work arrangements must not be seen as special arrangements made to cater for women and mature workers. To be effective, there must be a culture change on how work is organised and performance recognised. Performance must not only be about physically being in the office or work area but rather the ideas and impact that the work one does.

Smaller companies do not have the size or capability to make these changes in the work arrangements and policies of their own. SkillsFuture must, therefore, drive industry collaborative efforts to uplift the capability of SMEs in this area.

I do also hope that SkillsFuture will take the recommendations made by our PAP Women's Wing, which I mentioned in my Budget speech previously, to make efforts to enhance e-learning options as well as modularise training and to enable access to quality training. Again, this would not only benefit this group.

Retirement and Re-Employment

My second cut. To address the needs of an ageing population, the Retirement and Re-Employment Act (RRA) was introduced in 2012 to require employers to offer re-employment to eligible employees from age 62 up to age 65, with the intention to raise it to 67 later.

It is welcomed news that public servants who turn 65 can be re-employed till age 67. Can MOM provide updates on when the re-employment age will be raised to 67?

There have also been several incentives to provide companies to re-hire older workers and can MOM share whether these companies have been offering re-employment for older workers aged 65 to 67? And are they re-employed in the same roles, if they are available and if employees wish to do the same roles? And do they continue to get the same pay?

While I also understand the rationale for the current practice of CPF Draw Down Age (DDA) to be aligned with the re-employment age, do we really need to do so? Because with the changing profile of the population and workforce, and the potential changes to retirement age and re-employment, it does cause quite a bit of anxiety and uncertainty for seniors on the access of their CPF funds if this continues to change.

There are also many asking is there a need for a retirement age and, hence, re-employment age? Feedback from several residents I had encountered says that the Retirement Age has become a convenient reason or excuse for companies to ask employees to leave. With people now living longer, ageing well, they can continue to work and wish to do so. And many of these roles are PMET roles. So, I do hope that companies will plan better for the movement of these talents as well as addressing some of the concerns that employees have in this area.

Review of Employment Assistance Payment

Mr Patrick Tay Teck Guan (Nee Soon): The Re-Employment and Retirement Age Act was effective 1 January 2012. Three years later, many workers who were keen and able to work beyond the retirement age of 62 have benefitted from the Act. I also know of many enlightened employers who, besides re-employing their workers, have taken the extra effort to re-design, re-create and restructure the jobs and workplaces to cater to re-employed workers.

The legislation requires employers to offer eligible employees a one-off Employment Assistance Payment, otherwise known as EAP, as the last resort, if they are unable to find suitable jobs within the organisation after a thorough review. The purpose of the EAP is to help tide these employees over a period of time while they look for alternative employment. However, I have received feedback from our unions and union leaders of instances where employers use the EAP as an easy way out to discontinue the employment of these older workers. I hope the Ministry take such cases seriously and conduct additional scrutiny as and when complaints do arise, so that companies justify their actions in an appropriate manner and sanctions taken against recalcitrant ones.

The tripartite guidelines have prescribed the EAP amount of between $4,500 and $10,000, and further states that the amount can be reduced from 62 to 65 and a 3-month salary payout as a guide. Since the Act was passed, median wages have risen and the pool of PMEs in our workforce has grown rapidly. To minimise abuse by employers, I suggest and urge MOM to explore with the tripartite partners to increase this EAP amount to a level which will deter abuse by employers, yet adequately reflect the rise in wages and compensate the affected workers, including the PMEs who are increasingly becoming vulnerable.

Employability of Older Workers

Mr David Ong (Jurong): Madam Chair, the Government does encourage companies to hire older workers with schemes, such as the Temporary and Special Employment Credits and WorkPro. However, many employers still shun hiring workers 50 years and above or, at best, under-employ them at a reduced pay and benefits.

We often hear of older employees being told that their work is no longer up to par or that their skills no longer match the job. As such, it is not uncommon to see older employees being nudged closer towards the exit door. Interestingly, often bosses realise that it will take two or three new hires to replace the older and more experienced worker.

Yes, it is a subtle prejudice, but it is a reality. Somehow, we accepted this myth and stereotypes about older workers, that those above 50 are slow to change, not tech-savvy, less energetic and less innovative. As such, employers would think it is a bad return on investment to develop the career of someone who is 55.

Indeed, with the first cohorts of our baby boomers marching into their mid-sixties, it is time for us to embrace a mind-set change and attitude change in the way we value our seniors and older workers. Workers of any age must feel valued and respected.

Our Civil Service is one of the largest employers and I hope that they can take the lead in sending the right signal. HR policies on employment, re-employment, retirement and disbarment policies must support our older workers.

Instead of retiring our military and police officers early, we can adopt an age-inclusive approach in continuing to develop our army and police regulars into a highly relevant and productive force beyond their retirement age.

The intent of WorkPro is meaningful. The challenges, as in any scheme, are outreach, buy-in and outcomes. I would like to ask the Ministry what the report card is like on WorkPro so far. What can be done to encourage our older workers to invest in themselves and to adopt a lifelong passion for learning?

The Chairman: Order, I propose to take the break now.

Thereupon Mdm Speaker left the Chair of Committee and took the Chair of the House.

Mdm Speaker: Order. I suspend the Sitting and will take the Chair at 4.05 pm.

Sitting accordingly suspended

at 3.45 pm until 4.05 pm.

Sitting resumed at 4.05 pm.

[Mdm Speaker in the Chair] [Mdm Speaker in the Chair]: ****

Debate in Committee of Supply resumed.

[Mdm Speaker in the Chair]

Head S (cont.) -

The Senior Minister of State for Manpower (Dr Amy Khor Lean Suan): Madam, Minister Tan Chuan-Jin spoke about our continued efforts to help Singaporeans achieve better jobs and higher incomes, and to provide Singaporeans with greater assurance for their retirement.

I would like to elaborate on my Ministry's efforts to encourage employment of older workers. I will also give an update on our efforts to facilitate fair and progressive workplace and employment practices.

I had the opportunity to take part in a focus group discussion about "Lifelong Employability" a few months ago. This was part of a series of feedback sessions for the action plan on Successful Ageing.

The participants, who were mostly mature and older Singaporean workers, shared that they wanted to continue working in their silver years. Aside from wanting to remain financially independent, the majority believed that work would help them to remain physically and mentally active and maintain their social networks.

For businesses, the tight labour market makes it even more important to attract and retain older workers. Employers who were involved in the focus group discussion felt that older workers brought experience and were generally more reliable. However, they also faced challenges adapting to the new work arrangements.

I thank the focus group participants for sharing their views. Their feedback validates our efforts to help ensure more employment opportunities for older Singaporeans and to encourage them to remain employable. On that note, let me share some positive outcomes from our efforts.

As Mr Randolph Tan pointed out at the Budget Debate, we continue to see high employment rates for older Singaporeans. The employment rate of older Singaporeans aged 55 to 64 rose to a new high of 66% in 2014, up from 65% in 2013. This is one of the highest rates even among developed countries. Even though the employment rate for this group of Singaporeans is high, we should continue to invest in our efforts to ensure older Singaporeans can continue working.

Ms Jessica Tan asked about the wage trends of mature workers and women. The real median gross monthly income of women increased by about 2% per annum over the last five years. This is similar to the increase for Singaporeans in general. The real median gross monthly income of mature workers aged 55 and above saw a higher increase of 2.5% per annum during the same period.

Ms Jessica Tan also asked if there is still a need for retirement age. The current minimum statutory retirement age of 62 protects workers from below 62 from being dismissed on the grounds of age but it does not impede people from working beyond 62. We had studied approaches taken by other developed countries and concluded that re-employment is a better and more practical approach for us.

Mr Seng Han Thong asked for an update on the progress of companies re-employing older workers. We continue to see positive trends. Based on preliminary findings, nearly all (99%) private-sector local employees who turned 62 in the year ending June 2014 were offered re-employment – same as the year before.

Ninety-one per cent of the local employees who accepted re-employment on a new contract in the same job in 2014 did not have their basic wages cut. This is an increase from 83% in 2013. This includes almost one in 10 who actually got higher wages upon re-employment. If we count employees who continued on existing contracts, 98% of those re-employed in the same job, be it on a new or existing contract, did not experience a basic wage cut, and this is an increase from 96% in 2013.

Our experience has shown that adopting re-employment as an approach to raising the employment rate of older workers beyond the age of 62, works for Singapore. This puts us in good stead to eventually move the re-employment age to 67.

Mr Seng also asked about re-employment in the public sector. In the year ending 2013, more than nine in 10 public officers who retired at age 62 and wished to continue working were re-employed.

Mr Heng Chee How asked for the number of re-employment disputes and their outcomes. Since 2012, MOM has received 103 individual cases of re-employment disputes. The majority of these were related to eligibility for re-employment, for example, disputes over the employee's performance, or dissatisfaction over the terms of the re-employment contract. Most cases were settled after conciliation.

Mr Heng Chee How and Mr Patrick Tay spoke about employers using the Employment Assistance Payment (EAP) as an easy way out of their re-employment obligations.

Allow me to recall the rationale for our re-employment law, which was introduced in 2012, to achieve two objectives. First, to provide opportunities for older workers who are willing and able to continue working, to do so beyond the statutory minimum retirement age of 62. Second, to provide flexibilities for employers and employees to make necessary changes to work arrangements for re-employment.

Employers should consider all available re-employment options, and identify suitable jobs for employees who are medically fit and whose performance is assessed to be satisfactory.

Only if the above efforts fail, then, as a last resort, employers can offer affected employees a one-off EAP to help tide the older worker over while he or she looks for employment or undergoes training. We do not believe that the practice of using EAP as an easy way out is prevalent. Workers who feel that their employers have not abided by the law can seek assistance from MOM. But we note the concerns and we will monitor the situation.

Mr Patrick Tay also suggested that the EAP be reviewed to reflect the increase in wages. I can assure Mr Tay that the tripartite partners will look into this and other issues in the lead-up to raising the re-employment age.

Mr Heng also asked if re-employed or re-employment-eligible employees should be treated the same as other employees during retrenchments. In the unfortunate event that retrenchments are necessary, we expect employers to do so responsibly. They should apply relevant and objective criteria consistently when determining who are affected. They should also do so in consultation with the union – if the company is unionised – and notify MOM as early as possible. This is so that we can help affected workers find alternative employment and/or to provide them with relevant training to enhance their employability and deployability.

Looking ahead, Ms Jessica Tan asked about plans to raise the re-employment age to 67, and whether companies have already been re-employing workers beyond 65. Overall, the employment rate of citizens aged 65 to 69 has gone up from 38% in 2013 to 40% last year, and is, in fact, close to those of advanced economies like Japan. This is encouraging as it shows that employers find value in their older employees.

One key issue that the Tripartite Committee on Employability of Older Workers (Tricom), which I chair, deliberated on last year was when to raise the re-employment age from 65 to 67. After extensive discussions and consultations, the Government accepted the Tricom's recommendation to first take a promotional approach. We also said that, in the interim, we would consider incentives to encourage employers to voluntarily re-employ older workers aged 65 and above.

4.15 pm

Two weeks ago, Deputy Prime Minister Tharman announced in his Budget speech that employers will receive an additional Special Employment Credit (SEC) offset of up to 3% of monthly wages this year, if they hire Singaporeans aged 65 and above who earn up to $4,000 a month. This is on top of the current 8.5% SEC for hiring Singaporean workers above 50. Hence, if they employ an older Singaporean aged 65 and above, earning up to $4,000 in 2015, employers will receive a total SEC of up to 11.5% of monthly wages. This amounts to almost one and a half months of wages for each eligible worker re-employed. We hope that this will encourage more employers to retain their older workers even after they reach 65 years and continue to benefit from their experience and expertise.

We will monitor the outcome and look at extending the re-employment age to 67 in two to three years' time.

In addition to the SEC incentive, the Tricom has also been working hard to enhance the employment of mature workers aged 40 and above along three broad thrusts.

First, we are supporting employers in improving workplace practices so as to attract and retain mature workers. This was something Ms Jessica Tan touched on. We introduced the WorkPro programme in 2013, to provide funding support for companies to implement age-friendly practices and flexible work arrangements. This was an enhancement of the previous WoW! Fund, ADVANTAGE! scheme and Flexi-Works! scheme which were introduced between 2004 and 2007.

Under WorkPro, employers can tap on the Age Management Grant (AMG) and the Job Redesign Grant (JRG) to put in place progressive age-management practices and to embark on job redesign projects respectively.

Mr Heng Chee How asked for an assessment of how effective existing schemes have been. The take-up for the AMG has been very positive; with about 1,400 companies on board since its launch in April 2013. Twenty-eight million dollars of the budget has been committed.

One example of a company that has benefited from the AMG is Skillsforce Management Consultancy. It offers outsourced HR functions and consultancy services. The company puts in effort to recruit and retain mature workers as they believe in the value of the experience. Half of their employees are mature workers. To ensure that their needs are taken care of, the company implemented several age-management practices.

Ms Violet Sim, aged 65, worked as a HR manager in several multinational corporations before she retired in 2005. After retirement, she took on ad hoc assignments and had thought that it would be difficult for her to secure a full-time job given her age. Skillsforce recognised her skills and employed her with a competitive remuneration package, including benefits such as healthcare insurance. When Violet first joined Skillsforce, she was assigned a mentor, who helped her adapt to the company's culture and her role quickly. Today, she is happily employed at Skillsforce as a HR Business Partner, performing HR functions for client companies.

Employers can also tap on the Job Redesign Grant (JRG) to go further in implementing innovative job and process redesign, specific to their employees' and business needs. However, the take-up for the Job Redesign Grant has not been as positive. As at December 2014, only 46 companies have come on board, and only about $2 million have been committed.

Mr Heng Chee How and Mr Seng Han Thong observed that employers still face obstacles when redesigning jobs. It is a real challenge, especially for many SMEs, who may feel that they lack the expertise to tap on the JRG, and I agree with Mr David Ong that we must do more to help such smaller employers.

Age management is a relatively new field in Singapore. The knowledge pool, even among consultants, is not deep. To address this capability gap, we are developing a training framework for age management. Together with our tripartite partners, we will engage Institutes of Higher Learning, industry experts and training providers to create a curriculum specific to managing older workers in Singapore. This can be in areas such as flexible work arrangements, performance management, designing safe workplaces for mature workers and managing a multi-generational workforce. This framework aims to increase awareness and application of age-management practices by HR practitioners, line managers and senior management. We are also working with industry experts to accredit consultants in the age-management domain. This will ensure that consultants can effectively address companies' age-management issues.

While the Government can make these opportunities available, ultimately, companies must still want to take the first step. We therefore encourage more companies to tap on the JRG to implement job redesign solutions as they prepare for an older workforce as it is in their interest to do so.

The second thrust is raising the skills of older workers so that they can tap on better employment opportunities.

Mr Heng, Mr Seng and Ms Rita Soh asked about how the Government helps older workers to continuously upgrade their skills and improve their employability.

Everyone has a role to play in continuing education and training. On their part, older workers can tap on existing WDA training grants to enhance their capabilities. Under SkillsFuture, all Singaporeans aged 40 and above will now enjoy enhanced subsidies of at least 90% of training costs for courses funded by MOE and WDA. On top of this, Singaporeans can use the SkillsFuture Credit to offset the remaining fees.

In addition, lower wage older Singaporeans can receive up to 95% subsidy for course fees under the Workfare Training Support (WTS) scheme.

Many Singaporeans have benefited from WDA's training grants. One of them is Mdm Yuen Sow Phoon, who turns 60 this year. After a long absence from the workforce, Mdm Yuen wanted to work as a childcare teacher but lacked the relevant skills and qualifications. She approached one of WDA's Career Centres in April 2012 and her career coach advised her to take on the WSQ Diploma in Early Childhood Care and Education. At the age of 59, Mdm Yuen completed her diploma and secured a job as a Chinese Language teacher in the childcare sector. Today, Mdm Yuen is still very passionate about teaching and is ever eager to encourage others to upgrade their skills, no matter their age.

We are encouraged to see that many individuals and employers already invest in training. Based on WDA's 2014 survey on the outcomes of WSQ training, 95% of the surveyed employers found that their employees performed more efficiently after completing WSQ training and 76% reported that training had a positive impact on work productivity. It is particularly heartening to note that in the last three years, there has been an increase in the proportion of trainees aged 40 and above who took up WSQ courses.

A good example of a company which believes in the value of training is Suki Sushi, a local food and beverage (F&B) company which employs about 700 employees. Close to a hundred employees are aged 40 and above. Training is an important business strategy for Suki Sushi as they believe that it contributes to enhanced employee service standards, higher productivity and improved employee morale. The company became a WSQ Approved Training Organisation (ATO) for F&B in 2012 and trains its workers monthly in areas such as maintaining an F&B environment and providing positive customer experiences. Close to 250 employees, including 80% of their mature workers, have benefited from training since it was appointed as an ATO. Suki Sushi's strong belief in the value of training is also evident in their career progression policies, where employees' progression is tied to WSQ training.

Lastly, we continue in our efforts to reinforce positive perceptions of older workers.

We agree with Mr Heng Chee How and Mr David Ong that it is important to tackle ageism in the workplace. And to this end, TAFEP proactively engages employers and helps them develop capabilities for employing and re-employing older workers. This includes advisory services and training workshops for TAFEP pledge signers on the management of mature employees.

In June 2014, the Tricom launched the "Tap into a Wealth of Experience" campaign to highlight the wealth of experience that older workers bring to their employers. Companies such as Fish & Co., Network Courier and SportSG were featured for having strong mentorship programmes while older workers from On Cheong Jewellery, Goodrich Global and Raffles Hotel were featured for their wealth of experience.

The campaign has resulted in some positive mindset changes amongst employers and older employees. A survey of 900 employers and employees conducted by TAFEP before and after the campaign found that there was an eight percentage point improvement in how employers viewed older employees and their role in nurturing younger employees. The survey also found that the campaign contributed to better self-perception among older employees, in terms of self-confidence, feeling valued and work motivation.

In the course of my Ministry's work, we have come across many enlightened employers who firmly believe in the value that their older employees bring to their company.

ComfortDelGro is one such example. Recognising the need to adapt to an ageing workforce and a tightening labour market, the company decided, on its own accord, to extend its retirement age to 65 years in 2012, and in 2013, they raised it further to 67. With more than half of its employees aged 40 and above, ComfortDelGro saw the need to retain mature employees who have years of valuable experience and are able to help mentor younger workers.

Managing a mature workforce comes with its own challenges. For ComfortDelGro, one challenge is ensuring mature employees are equipped with skills that are relevant to the ever-changing demands of the service industry. ComfortDelGro therefore makes special efforts to engage their employees on the purpose of training and to ensure that training results in better service standards. Career progression for all employees is based on skill-sets, competencies and performance.

I applaud the companies mentioned in my speech for their forward-thinking and hope that they serve as an inspiration for others. We will continue to feature such examples at appropriate platforms to show what is possible.

For individuals who encounter age discrimination at the workplace, I encourage them to approach TAFEP for advice and assistance.

Through all the measures that I have outlined, we will continue to build on our progress and ensure that older Singaporeans can achieve their aspirations in their silver years.

Next, let me address Ms Kuik Shiao-Yin's suggestions to legislate caregiver leave. We agree that supporting employees with their care giving needs is important. This is why the 2013 Marriage and Parenthood Package provided new leave schemes such as extended childcare leave, paternity leave and shared parental leave. Companies are still adjusting to these newly-legislated leave and we should carefully study their impact before introducing more measures. And this is especially so given that many companies are also undergoing economic restructuring, facing economic restructuring pressures and other pressures. We have also enhanced our efforts to change mindsets and encourage employers to offer flexible work arrangements and will continue to do so.

We are glad to note that through our efforts, more and more companies recognise that flexi-work arrangements (FWA) is a key tool to attract and retain good employees. The proportion of employers that offered at least one form of formal FWA increased from 38% in 2011 to 47%, or almost half, in 2014. Almost seven in 10 employers, 69%, provided unplanned time-off for their employees to attend to personal matters last year. Let us allow some time for our societal norms and workplace culture to continue to evolve before we consider further changes to the law.

4.30 pm

Mr Zainal also raised concerns about the impact that unpredictable and last-minute work arrangements have on employees.

The Employment Act already requires employers to work out a roster indicating their rest days in a month, to be conveyed to the employees before the start of the month. While employers are allowed to vary the rest days because of exigencies, such variations have to be fair and the employee must consent. If there are complaints from workers, my Ministry will look into them. In addition, through the Tripartite Guidelines on Issuance of Key Employment Terms (KET) in writing, we encourage employers to provide employees with the expected working hours and number of working days before they start employment. This provides employees greater certainty of their work schedule so that they can plan for their personal needs outside of work.

Mr Patrick Tay and Mr Zaqy Mohamad have asked for an update on the Jobs Bank and Fair Consideration Framework.

Let me start with the Jobs Bank. We launched the Jobs Bank in July last year. It was intended to make job opportunities more transparent to Singaporean job seekers and allow employers to access a larger pool of Singaporean candidates.

Participation in the Jobs Bank has been encouraging. As at 1 February this year, some 16,000 employers and 76,000 individuals have registered with the Jobs Bank. On average, since the launch of the Jobs Bank up to 1 February this year, there are about 68,000 live job vacancies on the Jobs Bank, with more than 70% of the jobs for PMETs, and about 20,000 offering a monthly salary of at least $5,000.

More large employers have also come on board the Jobs Bank, such as OCBC Bank, Panasonic Asia Pacific Pte Ltd, as well as Government agencies. It is also encouraging to see that employers are using the Jobs Bank for a wide range of jobs, both PMET and non-PMET.

Since the launch of the Jobs Bank, WDA has taken in feedback from the public and enhanced the portal to make it more user-friendly. For example, we enhanced the search functions for job openings through refining the categorisation of job vacancies and greater job search customisation. These enhancements have been received positively.

We have also received feedback from job seekers and employers that the Jobs Bank has made it easier for them to find job opportunities and local job applicants.

Mr Chandrasekaran Kandasamy, aged 47, is one example of a job seeker who found employment through the Jobs Bank. He was retrenched last year. While he had more than 16 years of experience in the manufacturing sector as a Procurement Engineer, he was unsure of the job opportunities in the market. Mr Chandrasekaran was the sole breadwinner in his family and he needed to find permanent employment as soon as possible. He approached the WDA Career Centre in July last year. With the advice of his Career Coach, he registered with the Jobs Bank to increase his opportunities for employment. Mr Chandrasekaran successfully found employment through the Jobs Bank with a manufacturing company, AB SCIEX Pte Ltd, in September last year and has been with the company since.

Employers have also benefited. Accountancy and business advisory firm, Baker Tilly TFW, is one such example. Through the Jobs Bank, Baker Tilly TFW was able to widen their pool of local job candidates for recruitment purposes. To date, they have successfully recruited four Singaporeans as auditors through the Jobs Bank.

This is a positive start for the Jobs Bank. MOM and WDA will continue to enhance the Jobs Bank and work with industry partners to expand its use. As Assoc Prof Randolph Tan suggested, we fully intend to look into how data from the Jobs Bank can be used, to supplement other available data to help job seekers. One key area is to develop a more detailed picture of skills in short supply, which we can develop among Singaporeans. We encourage more employers and job seekers to come onboard the Jobs Bank and we welcome feedback to make it a more useful platform so that more can benefit from it.

Mr Patrick Tay, Mr Zaqy Mohamad, Mr Zainal Sapari and Mr Gerald Giam have asked about tracking the outcomes of Jobs Bank postings and evaluating the effectiveness of the Jobs Bank and the Fair Consideration Framework (FCF).

The Jobs Bank, together with the Fair Consideration Framework, is intended to facilitate a fair hiring process and greater awareness of job vacancies. They set clear expectations for employers to consider Singaporeans fairly for job opportunities and enhance job market transparency. Singaporeans recognise the need to compete for jobs on the basis of merit. What the Government is doing is to help them get a fair opportunity. Singaporeans must still show that they are able to take on the jobs that they aspire to. There could be various reasons why an employer may not hire the Singaporean applicant even after considering applications fairly. For example, there could be jobs that require skills that the applicant does not possess. The employer is best placed to decide the best candidate for the job. What we do expect is that the decision is made fairly, based on merit.

The Jobs Bank is not the only avenue for job search. Singaporeans may also find jobs through means other than the Jobs Bank, such as by being hired directly by the firm or through private job portals and other job ads. Even when Singaporeans apply for a job that they see on the Jobs Bank, we cannot directly track this.

For example, job seekers may apply directly through firms' in-house HR portals. Therefore, data on the number of Singaporeans who were placed in a job vacancy which was advertised on the Jobs Bank would not be a representative or accurate indicator of how well Singaporeans are doing in the labour market in general.

But let me assure Members that this Government is committed to doing everything we can to help every willing Singaporean to learn and to be competitive in the job market. Singaporeans are our only resource, and the Government has invested heavily in developing their talents from childhood until beyond retirement. If you are willing to pick up a work-relevant skill, we will help you – through SkillsFuture, through career guidance, through course subsidies. If you need help finding a suitable job, we will help you – with interview skills, with job matching.

So, the Jobs Bank and FCF cannot and should not be evaluated in isolation. Rather, they are part of a broader labour market ecosystem, which has produced healthy employment outcomes for Singaporeans. This ecosystem includes:

(a) A dynamic economy that is able to compete globally and create new, exciting and meaningful career opportunities for Singaporeans;

(b) An education and training system that ensures that Singaporeans are well-equipped to take up the quality jobs created by our economy; and

(c) An overall labour market that is kept tight, and which is efficient and transparent. This is what the FCF and Jobs Bank are about.

This ecosystem, of which the FCF and Jobs Bank are part of, has benefited Singaporeans. Our annual average citizen unemployment rate in 2014 remains low at 2.9%. This situation is completely different from those in many developed countries which face higher unemployment. Singaporean workers have also had positive real wage growth over the last five years. We have seen a sustained increase in median income over the last five years.

Real median income among full-time employed citizens grew by 2.1% per annum over the past five years. The rate of re-entry into employment within six months of redundancy for displaced workers has also improved in recent quarters. On Mr Zaqy Mohamad's question, the number of complaints on nationality-related discrimination has fallen by 25% from about 310 in 2013 to about 230 in 2014. We have pursued every single one of these cases to establish if they adopted discriminatory practices. When we find proof, MOM will not hesitate to take action. In December last year, we curbed the work pass privileges of Prime Gold International for engaging in discriminatory employment practices as they had retrenched Singaporeans only to fill the positions with foreigners.

We need to continue to watch firms' hiring practices closely. This brings me to the other component of FCF, that is, additional scrutiny for firms which have room to improve their employment practices, which Mr Patrick Tay and Mr Pritam Singh have asked about.

My Ministry proactively identifies employers for additional scrutiny using information, such as whether they have a disproportionately low concentration of Singaporeans at the PME level compared to others in their industry. This scrutiny goes in-depth – where we look at their HR practices, such as their hiring policies and talent development approach. Through this scrutiny, we identify employers that have areas for improvement. And so far, this engagement has been useful.

First, it allows us to understand more closely the challenges that both employers and employees face. Second, it allows the Government to provide more targeted assistance and advice to employers to address the gaps in their employment practices. Third, it projects our clear determination to detect and enforce against discriminatory employment practices.

Let me elaborate further.

First, on understanding the challenges. We have found some employers who find it difficult to hire locals as they require niche skills which very few locals have.

One key sector that faces these issues acutely is the ICT sector, as many of its professionals need up-to-date and specialised programming skills, which few Singaporeans have. To address this, MOM has connected these employers with relevant agencies, such as IDA for the ICT sector, to help build their local pipeline. For example, IDA is assisting the ICT companies to provide internship and mentorship opportunities for students, encourage them to send their local employees for on-the-job training to broaden and deepen their competencies in niche technology areas, and help them gain access to a wider network for their recruitment purposes. Looking ahead, the broader SkillsFuture initiatives, such as the Earn and Learn programme, as well as the Sector Manpower Plans, will further strengthen our efforts on this front.

There are other employers with areas for improvement. Here, we take a constructive approach – we work with the employer to develop an action plan to implement these improvements and periodically review their progress. For example, some of the employers were found to lack proper training and development plans for their staff and had unclear recruitment and appraisal criteria and processes. We have asked the employers to address these gaps and to communicate grievance handling avenues to their employees. If we find outright discriminatory practice, we will take action immediately.

We will continue to watch firms' hiring practices closely, especially those that appear to comply with our advertising requirements but do not consider Singaporeans fairly. We will not hesitate to take such employers to task.

Mr Patrick Tay suggested making it mandatory for employers to publish the salaries of their job postings on the Jobs Bank. Currently, employers who wish to submit an EP application are required to declare the salary range of their job posting to WDA through the Jobs Bank. This allows us to check whether the salary of the subsequent EP application matches that of the job that was advertised, and in the event of a complaint by a job applicant who may have been told a different salary – we can check. It is, however, optional for employers to publish the salary range on the advertisement itself.

We need to weigh the pros and cons of making it compulsory for employers to publish the salaries of their job postings. There are merits in doing so, such as greater transparency for local job applicants and improving the efficiency of the labour market. Publishing the salary range can also help employers attract more suitable candidates. It is, however, not a common practice for employers, especially SMEs, to indicate salary ranges in their job advertisements. Many employers tend to prefer holding back such information for competitive and internal confidentiality reasons.

Over time, when employers become more comfortable and familiar with the Jobs Bank, we will revisit this issue in consultation with our tripartite partners.

Mr Patrick Tay has suggested extending the advertising requirement to firms applying for S Pass holders. Other MPs too raised this, for example, Assoc Prof Randolph Tan and Mr Gerald Giam.

4.45 pm

To be clear, all employers are required to consider Singaporeans fairly for job opportunities, regardless of whether there are advertising exemptions. We have not made the advertising requirement mandatory for firms submitting applications for S Passes, because there are other tools, such as levies and Dependency Ratio Ceilings that spur firms to search for suitable Singaporeans before applying for an S Pass. Nonetheless, we will monitor the hiring of S Pass holders and assess if further measures are needed.

Finally, I would like to highlight how in the last two to three years, MOM have together with our tripartite partners undertaken a broad review of our employment legislation and institutions to see how we can better meet the changing needs of our workforce. We updated the Employment Act in 2014 to deepen protection for PMEs earning up to $4,500. Earlier this year, this House passed the Industrial Relations (Amendment) Bill. Come April this year, there will be more options for unions and employers to work out arrangements to meet the needs of PMEs at the workplace. We will also set up an Employment Claims Tribunal (ECT) to provide all employees, including PMEs, with an expeditious and affordable dispute resolution mechanism for their salary-related disputes.

Mr Patrick Tay spoke about the Tripartite Mediation Framework (TMF). We announced in April last year that my Ministry was working with tripartite partners to strengthen the Tripartite Mediation Framework as an alternative mechanism to resolve employment disputes. Mr Tay would be pleased to know that we will also remove the existing salary cap of $4,500 for managers and executive union members. Presently, workers can seek tripartite mediation for issues relating to salary payment, breach of employment contracts and payment of retrenchment benefits. As part of the review, we are also looking at expanding the current set of issues to cover re-employment disputes and other employment statutory benefits such as leave benefits.

I would also like to thank Mr Patrick Tay for his support for the Employment Claims Tribunal. The tribunal will address the current challenge faced by PMEs earning above $4,500, who can only pursue breaches of employment contract through civil suits, which can be protracted and expensive. We have studied the tribunals in UK, Australia and Hong Kong to draw lessons.

Under our proposal, the ECT will hear salary-related claims that are statutory and contractual, subject to a certain claims limit. A higher "claims cap" will apply to cases which have undergone formal mediation processes, such as the TMF.

We also agree with Mr Tay that the ECT adjudicators should have a strong appreciation of the employment and industrial relations landscape in Singapore.

On the ease of enforceability of ECT orders, we understand Mr Tay's concerns about duration and cost of procedures if one seeks to enforce the order through a Writ of Seizure and Sale. We will review the process together with the Ministry of Law.

My Ministry is also looking at how the Tribunal and the enhanced TMF can complement each other in helping employers and workers resolve their disputes in an expeditious and amicable manner. We will consider Mr Tay's suggestion to have compulsory mediation and work through the details with our tripartite partners.

The Tribunal will look at a specific set of employment disputes relating to the employment contract or benefits provided for in employment legislation. But it cannot resolve every workplace issue. It is in the interest of both employers and employees to try to resolve any dispute early and at the workplace as a first resort. Companies should, as a matter of good practice, have a process to handle grievances and disputes at the workplace. Unions, too, continue to play an important role in assisting and representing workers.

Together with the recent amendments to the Employment Act and Industrial Relations Act, these proposed changes reflect MOM's and the tripartite partners' efforts to enhance protection, workplace representation and access to dispute resolution mechanisms for workers.

Madam, MOM remains committed to our priorities to ensure better jobs and higher incomes, progressive and harmonious workplaces and a secure retirement for all Singaporeans. By working closely with our tripartite partners, the industry and other stakeholders, we believe this can and will be achieved. We will press on in our efforts towards securing peace of mind for Singaporeans.

The Chairman: Mr Christopher de Souza is not in the Chamber. Mr Gerald Chiam.

Sectoral Minimum Wages

Mr Gerald Giam Yean Song: Mdm Chair, a minimum wage aims to protect employees from exploitation and enables them to afford the basic necessities of life. But critics say it makes lower skilled workers uncompetitive, resulting in job losses as companies move overseas or hire fewer workers.

There is no national minimum wage in Singapore. Salaries are subject to negotiation and mutual agreement between employers and employees or the trade union representing the employees.

However, the wages of those in the lowest income group are not enough to cope with the high cost of living in Singapore. According to the Household Expenditure Survey, there are almost 85,000 resident households with a monthly income of less than $1,000 a month. Yet, these households spend an average of $1,461 per month, or 46% more than they earn. [Please refer to "Clarification by Senior Parliamentary Secretary to the Minister for Manpower", Official Report, 10 March 2015, Vol 93, Issue No 13.]

The Progressive Wage Model is being implemented for the cleaning and security sectors, and soon the landscaping sector. However, these are not the only sectors which suffer from the malaise of low wages. Low-wage jobs can be found in other domestic-oriented sectors like F&B, retail and personal services. In these sectors, jobs are usually performed locally for customers who are in Singapore, so there is less risk that such jobs will move overseas even if wages rise.

The Finance Minister has pointed out in his Budget Statement that productivity growth in the domestic-oriented sector is less than a fifth of that for the outward-oriented sectors, yet employment growth has been mainly in the former. This lends weight to the need for these sectors to be upgraded to improve their productivity.

I urge the Government to look into introducing sectoral minimum wages under the Progressive Wage Model to more domestic-oriented industry sectors, so as to ensure that Singaporeans in those sectors are paid wages that are enough for themselves and their families to live on.

The Chairman: Mr Zainal Sapari, you have two cuts. Please take them together.

Improving Low-wage Workers' Productivity and Wages

Mr Zainal Sapari: Madam, I would like the Ministry to do a stock take on the policies aimed at improving our low-wage workers such as Workfare, WorkRight, Mandatory Progressive Wage Model, and other tripartite efforts. I believe that these policies must stay as relevant as possible if they are to be effective in helping low-wage workers. As an outcome, it is important that we strive for higher annual wage growth for the workers at the 20th percentile compared to the 50th percentile on a sustainable basis through a more concerted effort to improve productivity.

Moving forward, I would like to check whether MOM has any plan to boost productivity in retail, logistics, and F&B sectors where there are many low-wage workers. I believe there is a need for a more concerted coordination from tripartite partners and the industry players to ramp up our productivity efforts in these sectors where there are many low-wage workers.

Workfare Income Supplement to Support More Low-wage Workers

My second cut. Madam, I believe that the implementation of the Workfare Income Supplement (WIS) has gone a long way in improving the lives of many low-wage workers in Singapore. The last enhancement made for low-wage workers was during Budget 2013. It has been two years. I believe there is now scope for us to give the low-wage workers a hope for a better future by revising on the WIS schemes in place for them.

I would like to propose for the Government to review WIS and consider further enhancements that will allow more low-wage workers to attain greater financial security and savings for their Minimum Sum. I have three suggestions. Firstly, I would like to propose for the Government to increase the quantum of WIS that goes into the CPF. Secondly, the Government should also consider lowering the age eligibility criteria for workers to receive WIS from the current 35 years to 30 years to enable more low-wage workers to benefit. Finally, I would like to propose for those 55 and above to qualify for the maximum payout, instead of the current 60.

Employers of Foreign Domestic Workers

Mrs Lina Chiam: Mdm Chair, we should rightly uphold the rights and dignity of foreign domestic workers, just as with any other human being. Nonetheless, the process of contracting them for work is run just like any other business. This calls for some equity and fairness for the employers of domestic helpers too, so that they themselves are not left in the lurch.

Employers have received repeated calls from employment agencies to increase the salaries of foreign domestic workers, in order to attract them to Singapore. Yet, each time the placement fees of the foreign helpers will be raised as well. High placement fees are disincentive to foreign domestic helpers as she has to work more months to cover her loan from her employer.

Recently, the agency fees for hiring a new maid has been raised to as much as $4,000, equivalent to eight months of their salary, which has resulted for calls to cap fees collected from foreign domestic workers. The reduction of the maids levy does not seem to be of much help here.

Employers feel the impact as they are the ones who have to make the advance payment to the increased placement fees, without any guarantee on the character of their new helpers. Most working couples feel the "pinch" when they have to put up such a large amount of money upfront, and there is no guarantee that they will leave the next month.

Engaging a maid should be fair to all stakeholders and there should be equitable terms for the employers of foreign domestic helpers on the MOM contract between the employer and the domestic worker under the termination and repatriation clause, which states that the employer have to bear the costs of repatriation fees of sending the maid home by air, even though she terminates the contract of two years by herself, not by the employer.

There are no clauses under the MOM contract to indemnify the employer, over repeated breakage of expensive items worth hundreds or thousands of dollars, or cause other preventable damages to the house through carelessness.

There is no guarantee she might request a transfer before working for three months, disadvantaging working parents with young children that needs a maid. How about stolen money? Employer cannot recoup the money and the only way they could do is to repatriate her, which incur more costs to the employer.

It is high time that MOM review some of its clauses to give more equitable terms to its employers under its terms and conditions.

Workplace Safety and Health

Mr K Karthikeyan (Nominated Member): Mdm Chair, every worker's dream is to come back home to their loved ones as how they left for work. I strongly believe that most workplace accidents can be prevented if prompt actions were taken. A strong safety culture is necessary. Many companies place safety as an important priority, but in reality, it is not it is not in the top of their to-do list in many companies. Under the Demerit Points System, MOM could intervene by restricting companies' access to foreign manpower if they have poor safety records. MOM previously announced that the Demerit Points System will be reviewed to deter at-risk behaviours by contractors. Will MOM enhance the system to identify errant contractors earlier for timely intervention?

Secondly, safety incidents in major hazard installations could potentially cause severe damage to properties and lives. There were some incidents of chemical leak in Jurong Island and if not handled properly can cause a domino effect and I also vividly recall that a fire broke out at Shell Bukom a few years ago.

I remember that I remained stuck in traffic for three hours in Jurong Island as one of the companies had gas leak. It was due to only one entrance or exit to Jurong Island. That prompted JTC to look at another entrance and exit. What were the lessons learnt and what has the Government done on the safety front to manage these installations?

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Lastly but most importantly, the livelihood of workers. The workers can be affected after sustaining an injury at work. For some workers, they are unable to carry out their work duties after the injury and face losing their jobs. The anxiety of losing their jobs coupled with the physical stress of recovery can be overwhelming.

As such, what can MOM do to help these workers tide over their recovery period and stay in the workforce? Singapore, known for implementing what they say, therefore we should be a shining example for workplace safety and health in the world.

Safety at Workplaces

Assoc Prof Randolph Tan (Nominated Member): Mdm Chair, the difficulty in attracting locals to fill certain positions is a point often raised by employers in the current labour crunch. Locals are often seen as being too ready to avoid uncomfortable work. However, the real problem could be safety. It is worthwhile looking to see if there is a potential correlation between lack of safety at workplaces, and the availability of Singapore residents as workers. The shortage of resident workers is evident not just at construction sites, but also in other workplaces where physical exertion is routine. Safe workplaces hold the promise of a career, so this goes to the core of our manpower issues. Hence, on-the-job training should emphasise safety and care for oneself as well as one's colleagues as priorities.

I commend Ministry for already taking a very proactive approach to this issue. My aim in proposing this amendment is to push for more resources to be invested into dealing with it. I would like to recognise the importance of the good work that Ministry officials do in visiting and performing checks at work sites. A lot of difficult work at ground level is necessary, and Ministry's efforts show that good policies must go hand-in-hand with stringent monitoring in order to root out frequent violators.

Poor safety could be symptomatic of wider problems with work practices. These are impediments which can prevent workers from asserting sufficient control of their work environments in order to promote efficient work habits that can improve their productivity. In addition, the problem of challenging working environments with safety issues and bad practices actually extends beyond work sites.

As an example, consider retail sector workers, such as sales assistants and department stores who perform heavy lifting. This is a natural part of job and, I agree it would be unreasonable to make the distinction which disallows sales assistants from performing such roles. But the concern comes when sales assistants without suitable equipment and body harnesses or support, performs such work regularly. In addition to being a de-motivating factor, inappropriate lifting that does not conform to guidelines set out in the Singapore Standards, specifically the Code of Practice for Manual Handling published by SPRING, may pose safety risks. In order to address such safety concerns, it is important for Ministry's workpIace safety programmes to be adequately resourced.

In this regard, I would like to ask for an assurance that the reduction of 26.9% in the Budget for Manpower Development under the Progressive Workplaces Programme will not have an impact on its capacity to pursue continued improvements in the workplace issues highlighted.

The Chairman: Mr Partick Tay, you have two cuts. Take them together.

Review of Work Injury Compensation

Mr Patrick Tay Teck Guan: Mdm Chair, the last effected change in the work injury compensation claim limits was in 2012 and was based on median wages of 2010. However, wages as well as the cost of healthcare has gone up the past few years and I urge Ministry of Manpower (MOM) to review both the minimum and maximum payout limits for all Heads under the work injury compensation framework to ensure equitable payouts to workers who suffer workplace injuries. In particular, I draw attention to two in the string of cases which were taken to the Courts by injured workers the past two years.

In one case reported in the papers on 7 November 2013, a worker's left hand was crushed by a print machine. His arm had to be amputated below the shoulder. He went by the civil route and arrived at a settlement of $290,000 before the trial began. The worker's contributory negligence was factored into the deal in this case.

By the same token, in a second case reported in the papers on 21 April 2014, an aircraft technician injured his back in 2008 when lifting cabin seats. WICA compensation was assessed in 2009 at $4,500 based on the medical assessment and using the 2008 WICA claim limits. He then filed a civil suit and eventually settled in 2014 at $275,000. These cases seem to suggest to us the inadequacy of our current work injury compensation claim limits amount although it is a no fault regime. It is therefore with this backdrop and the changes in wages and rising medical treatment and healthcare costs in Singapore that I urge MOM to review the work injury compensation claim amounts and limits.

My other suggestion would be for MOM to explore the possibility of working with employers and industry to provide WICA coverage for freelancers for workplace injury. Oftentimes, they are self-employed or sole-proprietors who work on site but are not covered if they sustain injuries, suffer permanent incapacity or die in the delivery of the service. Although there is no employer-employee relationship, I am sure MOM can work with buyers of their services to provide medical and accident insurance coverage for them.

Review of Workplace Safety and Health Laws

Mdm Chair, my second cut. The number of workplace injuries has increased the past three years although workplace fatalities plateaued the past three years. A guiding principle of the Workplace Safety and Health Act is that all people are given the highest level of health and safety protection from hazards arising from work, so far as is reasonably practicable. Prevention is certainly better than cure.

The landscape in Singapore is changing. We see more SMEs and a changing workforce profile, particularly an ageing one with more women coming back to work and a growing number of freelance professionals.

I wish to ask how MOM is going to deal with these challenges with small businesses sprouting everywhere and with a changing workforce make-up and yet effectively maintain the highest standards of safety in all workplaces.

To further exacerbate the problem, some of the safety requirements vary and differ according to their location and type of work involved especially in risk management and management of hazards. Is there a need therefore to review the existing Workplace Safety and Health (WSH) framework to ensure an even more coordinated approach and raise safety standards in Singapore?

The Chairman: Senior Parliamentary Secretary, Mr Hawazi Daipi.

The Senior Parliamentary Secretary to the Minister for Manpower (Mr Hawazi Daipi): Mdm Chair, several Members of Parliament have raised queries on what the Government can do for low-wage workers. A decade ago, a Ministerial Committee on Low-Wage Workers was set up by the Prime Minister to address some of the key challenges facing our low-wage workers then. This includes slow wage growth and the need to stay relevant in the evolving economy. I thought it would be useful, 10 years on, to share how we have addressed these issues and the new challenges that have arisen, and consider what more we can do in the years ahead. This would also address Mr Zainal Sapari's request for a stock-take on how our policies have helped uplift our low-wage workers.

Since the 2005 Ministerial Committee was set up, the Government has embarked on a number of key initiatives to support low-wage workers. Let me quickly recap some of the things we have done.

First, we embarked on efforts to support wages at the lower end. In 2007, we introduced the Workfare Income Supplement (WIS) which supplements the incomes and retirement savings of low-wage workers. Since then, we have expanded the coverage and quantum of the WIS payout on two occasions in 2010 and 2013. Workfare is now a permanent feature of our social security system.

Second, we recognised that there were market failures in certain sectors that were causing wages to stagnate. In some sectors, cheap-sourcing was prevalent and workers had limited bargaining power to improve their wages and employment terms. NTUC had been spearheading the development of a Progressive Wage Model (PWM), negotiated between employers and unions, as a way to help low-wage workers bargain for sustainable wage increases by tying these to productivity improvements and skill training.

The Government supported this effort and agreed to enforce the PWM in three sectors – cleaning, security and landscaping. We then embarked on a tripartite process of developing a mandatory PWM in these sectors. Since we started on this journey in 2012, the PWM for the cleaning and security sectors have already been announced, and the PWM for the landscaping sector is due to be released this year. In the case of the cleaning sector, enforcement has begun under NEA's new licensing regime for cleaning companies.

Third, we raised the full-time equivalent (FTE) salary threshold for full-time local workers. The FTE salary threshold is used as a basis to calculate the foreign worker quota for the company. Raising the FTE salary threshold has helped to ensure that local workers are employed in a meaningful capacity, and are not just being used in a token fashion to increase foreign worker quotas.

To help our low-wage workers stay relevant and employable, much of our efforts are tied to equipping them with applicable skills and qualifications. In 2010, we introduced the Workfare Training Support (WTS) Scheme to encourage low-wage workers aged 35 and above to upgrade their skills through training to improve their employability. Over the years, we have enhanced its coverage to cover more courses and to provide allowances for self-initiated training. Training take-up rates have been steadily improving. Since the WTS scheme was enhanced in July 2013, we have seen encouraging take-up rates, with close to 88,000 low-wage workers benefiting from the WTS scheme as at December 2014. We are also looking at how to increase access to training by bringing CET opportunities closer to workers and workplaces. One example is the English@Workplace Programme that provides customised English training at workplaces.

Let me now address the issue of improving employment conditions. Since the 2005 Ministerial Committee, another area which we have looked at is the susceptibility of our low-wage workers to poor employment standards. Many low-wage workers may be unaware of their employment rights and CPF entitlements. At the same time, good employment standards are likely to encourage more regular work, and bring more people back into the workforce.

This is why we introduced the WorkRight initiative in 2012. We have since scaled up our annual proactive inspections on employment rights ten-fold, from 500 to 5,000 a year. Employers have generally been forthcoming in rectifying non-compliance. Let us take a look at sectors such as cleaning, retail and F&B, where a high proportion of low-wage workers are employed. Today, 9 out of 10 employers in these sectors comply with employment laws, up from 7 out of 10.

More than 35,000 Singaporeans have benefited as a result. They now enjoy their statutory entitlements such as timely payment of salary, CPF contributions or payment of overtime allowance.

Mdm Chair, we have made progress in the last decade. Our tight labour market and low unemployment rates, has meant that finding a job is not difficult for our low-wage workers. Wages have also grown. Real income of full-time employed Singapore Citizens at the 20th percentile grew by 1.5% per annum, between 2009 and 2014. As Minister Tan Chuan-Jin mentioned earlier, we have managed to avoid the wage stagnation that many developed economies had been facing. With the various policies and programmes we have in place, our low-wage workers today are better supported than they were 10 years ago.

We should continue to review and refine our existing programmes, as well as identify new solutions to better support low-wage workers. We have received several suggestions and feedback from Members of Parliament on how we can do this.

Mr Zainal Sapari has called for the Government to review WIS and consider further enhancements to give low-wage workers a better hope for their future. WIS is reviewed regularly, with the last major review in 2013. Our reviews take into account wage and labour force trends, among other considerations, to ensure that the scheme continues to provide meaningful support to the bottom 20% to 30% of working Singaporeans. Beyond WIS, the broader CPF enhancements, such as higher interest rates and higher CPF contributions for older workers would also help the low-wage group boost their retirement savings. We will work closely with our tripartite partners to gather further feedback and suggestions in the lead-up to the next WIS review in 2016.

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Mr Zainal Sapari has also called for MOM to put in effort to enable a higher annual wage growth for the P20 worker vis-a-vis the median worker in a sustainable way. Our fundamental position is that income growth must be supported at all levels by corresponding productivity growth in the longer term. Hence, we will continue to focus on policies that contribute to a vibrant economy, improve employment outcomes and sustainably lift wages for all Singaporeans.

Mr Gerald Giam and Mr Karthikeyan have asked if the PWM can be extended to more sectors of the economy. In fact, the unions have been working on negotiating PWMs with employers in a variety of sectors including hotel, F&B and retail. However, the approach of making the PWM mandatory through Government regulation should be used sparingly, in sectors where cheap-sourcing is prevalent. I had mentioned last year that the Government has no plans to extend the mandatory PWM to sectors beyond cleaning, security and landscaping and this position has not changed. We should allow the market to determine a suitable trajectory of wages based on productivity improvements over time. Also, low wage workers in all sectors receive a boost to incomes and retirement savings via the Workfare Income Supplement scheme (WIS).

Madam, our Members have talked about the collective efforts taken by the tripartite partners to uplift low-wage workers. The concerns and challenges faced by low-wage workers are multi-faceted and require strong tripartite partnerships. We have seen this in action through various platforms, such as the tripartite clusters tasked with developing the PWMs as well as the National Wages Council.

Another key platform to bring together the collective energies of tripartite partners to address low-wage worker issues would be the Tripartite Committee for Low-Wage Workers and Inclusive Growth (TriCom). Since its formation in 2010, the TriCom has provided valuable inputs to strengthen various Government policies including Workfare and WorkRight.

The Low-Wage Worker TriCom has recently commenced its new two-year term. In the upcoming term, the TriCom will focus on several issues.

First, it will look at the challenges of low-wage workers in SMEs which are currently facing multiple manpower challenges and industry competition.

Second, it will focus on casual workers to better understand the profile and challenges of these workers. It will then develop measures to move them, where necessary, into more secured jobs with better pay and working conditions.

Third, the TriCom will also recommend productivity and job-redesign measures with a focus on jobs commonly undertaken by low-wage workers. As Mr Zainal Sapari has pointed out, there is a need to boost productivity in retail, logistics, and F&B sectors where there are many low-wage Singaporean workers. While there are on-going broader efforts to raise productivity, the TriCom aims to provide specific recommendations on how we can do so for jobs commonly undertaken by low-wage workers. This can yield tangible and meaningful benefits for all stakeholders.

Take Baker's Heaven, a company that produces pastries and cakes for example. The company's earlier, more manual process of making pastries and cakes was highly labour intensive as employees had to manually cut the dough into appropriate sizes. At times, staff would have to work over the weekends to complete urgent orders. Tapping on e2i's Inclusive Growth Programme (IGP), Baker's Heaven developed an integrated production line that automated at least 80% of the pastry production process. With this improvement, Baker's Heaven is now able to produce more pastries and cakes to fulfil bulk and urgent orders as it cut production time by up to 50%. This has also translated to tangible wage increases of up to 10% for employees who went through training to learn how to use the new machines.

Lastly, the TriCom will also look into how companies can better adopt best sourcing practices. While mandatory PWMs have helped shift the focus of contracts back to productivity and service quality, more can be done to ensure that service buyers and providers in general move away from headcount-based contracts and contracting based on price alone.

Going forward, we are also working with NTUC to expand our efforts to reach out to vulnerable low-wage workers, and raise awareness of the avenues of help available. NTUC has set up its first U Care Centre (UCC) with funding support from the Government. It is situated at the Devan Nair Institute for Employment and Employability in Jurong East, and currently provides workplace advisory and job referral services for low-wage workers. It also regularly organises employment seminars to increase low-wage workers' awareness of their employment rights. Going forward, NTUC has plans to reach out to more low-wage workers by increasing access to the services of UCC at the heartlands, and this is something that the MOM is strongly supporting.

I will now address Mrs Lina Chiam's comments on ensuring equitable terms for employers of foreign domestic workers. MOM would like to assure Members that we have a robust framework in place to safeguard the interests of both employers and their foreign domestic workers (FDWs). Employers must ensure the well-being of their FDWs, such as through providing them with food, accommodation and rest. Similarly, FDWs are required to follow a set of conditions tagged to their work passes, including employment obligations and personal conduct. MOM also regulates employment agencies to ensure that they provide proper services to both employers and workers.

Madam, let us now turn to another important aspect of MOM's work, which is Workplace Safety and Health (WSH). We started the first half of 2014 with a spate of workplace accidents that resulted in a loss of 34 lives; 21 of which occurred in the first three months. Seventeen of the 34 fatalities were from the construction industry. In response, MOM and WSH Council implemented a series of short and medium term measures targeted at the construction industry. I am glad to note that the incidences of fatalities had moderated in the second half of 2014. There was a total of 60 workplace fatalities in 2014, 13 less than the 73 fatalities in 2013. As announced by the Minister, we have achieved our workplace fatality rate target of 1.8 per 100,000 workers four years ahead of the 2018 schedule. This did not happen by chance but is a result of relentless effort to identify problem areas and implement multi-pronged measures to improve WSH standards. I would like to acknowledge the support and hard work by every stakeholder in helping to achieve the workplace fatality rate target. We need to work together to ensure that the performance in 2014 was not a one-time phenomenon. There is also some cause to be concerned. While the number of fatalities has reduced, the number of non-fatal injury cases has increased over the last three years from 10,060 in 2011 to about 13,000 in 2014. We need to continue to press on and do more in order to achieve sustainable improvements in our Workplace Safety and Health performance.

We will, therefore, see through the series of previously announced measures to enhance workplace safety in the construction sector, which accounted for 45% of workplace fatalities last year. So we will continue to place a lot of resources and attention to the construction industry.

Mr Karthikeyan has asked if MOM would be enhancing the system to identify errant contractors earlier for timely intervention. I am pleased to share that the review on the Demerit Points System for contractors (DPS) has been completed. The aim of the review was to strengthen DPS's deterrence against errant companies who blatantly flout safety rules. The enhancements were finalised after consultations with the construction industry, including the WSH Council's Construction and Landscape Committee and the Singapore Contractors Association Limited (SCAL).

The enhanced DPS will come in force on 1 July 2015. There are four key changes. First, the DPS will be simplified to a single-stage system where accumulation of demerit points will trigger debarment of foreign workers. Second, the number of demerit points will be calibrated to deter employers from putting their workers to unnecessary risks at work. Third, the validity period of the demerit points will be extended from the current 12 months to 18 months to bring about sustained adherence to good WSH practices. Lastly, the demerit points will be accumulated on a company-wide basis and debarment of a contractor's access to foreign workers will apply to the entire company instead of by contract.

We hope the enhanced DPS will help drive companies to put in greater coherent effort to address systemic safety lapses across their worksites.

Mr Karthikeyan also asked about MOM's efforts on the management of Major Hazard Installations (MHIs). These installations include petroleum refining and manufacturing facilities, chemical processing plants and facilities where large quantities of toxic and flammable substances are stored or used. The likelihood of a major accident for such installations is low due to the stringent workplace safety and health management system in place. Notwithstanding this, their complex operating environment and high concentration of highly hazardous chemicals means that any accident can potentially result in catastrophic consequences. Therefore, I am glad that Mr Karthikeyan spoke about this.

In March 2014, MOM set up an Inter-Agency Taskforce to review and enhance our existing regulatory framework for MHIs to be in line with international best practices. Involving key Government agencies such as NEA, SCDF, EDB and JTC, the Taskforce has completed its work and we will be implementing the following changes.

First, we are shifting away from a prescriptive one-size-fits-all regulatory approach. Instead, MHI operators will be given greater flexibility to tailor their risk mitigating measures to best suit their needs. Operators will also take on greater responsibilities for their Safety, Health and Environment (SHE) by proactively identifying and managing the risks created. For this, we will be adopting a Safety Case regime where MHI operators will need to integrate all their SHE protocols onsite. They will also be required to demonstrate to the regulators that they have managed their risks to as low as reasonably practicable. Feedback from the industry consultations indicate that MHI operators understand the benefits of the Safety Case regime and are receptive to it. We will continue to work closely with the industry to jointly develop guidelines, including technical guidance, for the Safety Case regime.

Next, we will introduce a set of MHI Regulations under the Workplace Safety and Health Act. This is to effect the Safety Case regime and streamline existing SHE regulatory requirements for MHIs. To mitigate potential domino effects in the event of a major accident, MHI operators will be required to share pertinent information on the nature and extent of risks imposed on other installations within the cluster. This will allow neighbouring sites to take these additional risks into account in their risk management processes and emergency response planning. We are targeting to enact the MHI Regulations in the first half of 2016 for implementation in 2017.

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Lastly, a National MHI Regulatory Office (NMRO) will be set up in 2016 to better coordinate safety case assessments, inspections and investigations. Led by MOM, the NMRO will also consist of officers from SCDF and NEA and will serve as a single regulatory front for MHIs on SHE matters.

Assoc Prof Randolph Tan asked about workplace safety in sectors other than construction work sites. We share his concerns, and have programmes in place to address safety issues in workplaces such as the retail sector. I would like to assure Assoc Prof Tan that our efforts to improve workplace safety will not be affected by the reduction in the Budget for manpower development under the progressive workplaces programme.

We also agree with Mr Patrick Tay that every employee has a right to a safe and healthy workplace. It was with this principle in mind that the WSH Act was extended to cover all workplaces since September 2011. We will continue to calibrate our measures to ensure they stay relevant and effective in raising safety standards amid in the dynamic landscape. One key area is through engagement to raise WSH awareness. MOM and WSH Council will continue to roll out engagement initiatives to reach out not only to factories, but to all workers in all workplaces.

To reach out to these groups of workers, flash mob skits on common workplace hazards and good safety practice were put out at heartlands and shopping centres. WSH guidelines and collaterals are also made easily available on WSH Council website to help industries identify and mitigate risks associated with their operations. To raise WSH capability, employers could enrol their workers for training courses on risk management to equip them with workplace hazard identification and management skills. The employer can further complement these courses with on-the-job training to contextualise the risks that they face at their workplaces.

For workplaces to be truly safe, comprehensive systems to manage WSH are not be enough. All workers must take personal ownership of WSH outcomes and put safety and health as the first priority in all the work they do. Such progressive and pervasive WSH culture needs to be nurtured. The WSH Council is leading efforts to champion a Vision Zero movement which requires a mindset that all injuries and ill health arising from work are preventable, and a belief that zero harm is possible.

Mr Patrick Tay also spoke about medical and accident insurance coverage for freelancers who were injured at work. The Work Injury Compensation Act (WICA) imposes duty on employers to compensate their employees in the event of an injury arising from work. For freelancers, they are not covered under WICA as they are considered to be their own employers. Nonetheless, we encourage self-employed persons to take responsibility for their own well-being and purchase adequate insurance to ensure some financial certainty in the event that they are injured whilst at work.

Moreover, given the diverse nature of freelancers, there cannot be a one-size fits all solution. This is perhaps an area where the industry associations, working together with unions, may be better placed to take the lead. They would be able to identify measures meaningful to the conditions for the specific segment of freelancers they represent. For instance, I am heartened to note that the Association of Independent Producers worked with Media Development Authority (MDA) to establish a code of industry best practices to guide relations between companies and freelancers. The Code currently covers payment terms and contractual agreements and will eventually be expanded to touch on workplace insurance as well. I understand that NTUC's Freelancers and Self-Employed Unit has plans to embark on other initiatives for different freelance segments.

Mr Patrick Tay spoke about the need to review the work injury compensation claim amounts and limits. MOM conducts regular reviews on the compensation limits under the Work Injury Compensation Act (WICA) to ensure that its payouts remain calibrated with rising income and healthcare costs.

We agree with Mr Karthikeyan that the livelihood of workers can be affected after getting injured at work. Many of them were unable to perform their original task due to injury. We have seen cases of injured workers losing their jobs, especially if the recovery period is protracted. There are also some who were the sole breadwinner of their families. The emotional and physical stress to place food on the table for their families while struggling to recover from their injuries could be overwhelming.

We will be reviewing the compensation limits for death and permanent incapacity to be in-line with the rise in nominal median wages since the limits were last revised in 2012.

To address the increase in industrial accident medical bills, MOM will also be raising the cap for medical expenses claimable to ensure that WICA continues to fully cover more than 95% of claims where hospitalisation is required. Currently, this coverage is capped at $30,000 per accident or for a period of one year from the accident, whichever is reached first.

While it is important that injured workers get fair compensation expeditiously, it is equally if not more important, that injured workers are able to get back to work as soon as possible. In our dealings with injured workers, they often cite fear in losing their job as they may be unable to carry out their work properly due to their injury. This need not be the case for some of the cases if an early intervention programme was put in place to facilitate their rehabilitation and return to work.

In 2012, MOM conducted a study to examine the benefits of early Return to Work. As part of the study, occupational therapists were engaged to help facilitate and coordinate the return to work for a group of employees injured at work. Through this intervention, we managed to help this group of employees to return to work 10 days earlier on average. This reduction in man-days lost also translated to a cost savings for the employers. So quite clearly, we found that it is beneficial for both the employers and employees, and am sure the insurance companies too.

I am glad to share that some companies recognise benefits of such Return to Work interventions and have been proactive in helping their injured employees get back to their work early. 3M Singapore is one such company. 3M's management views such interventions as an essential part of retaining valuable and skilled employees and provides the necessary support to their line managers to implement them. For their injured employees, these efforts not only aid their recovery, but also gave them assurance in terms of job and income security. For instance, when one of their production technologists returned after being on more than months of sick leave as a result of a fracture, 3M assessed his condition, worked out a temporary employment plan and assigned him light duties to facilitate his return to work. During this period, the employee continued to draw his original salary. I am pleased to note that not only was the employee able to return to his original job, he was subsequently promoted to the role of a production supervisor

We want to encourage more employers to implement such Return to Work interventions. As a start, we will be allowing expenditures that facilitate early Return to Work to be claimable as part of WICA medical expenses. Such costs include those incurred in engaging a professional to develop a return to work plan, to assess the work environment and to provide recommendations to employers on how to better accommodate their injured employees. In our preliminary consultation with the General Insurance Association of Singapore, the insurers are generally supportive of this initiative. We will be launching a public consultation on the proposed enhancements to WICA later this month.

Mdm Chair, MOM has made concerted efforts over the years to uplift our low-wage workers while elevating safety standards at work.

I would like to end my speech with an example of how our policies taken together can uplift low-wage workers in Singapore in a tangible way. Mr Kamaruddin Bin Syed Ibrahim, aged 54, is currently working for a cleaning company called AG Maintenance. When he first started out at AG, he was earning a monthly salary of about $1,200. With the support of his employer, he successfully completed the WSQ Certificate in Environment Cleaning that consisted of eight WSQ training modules in 2013. Because of this, he received the Training Commitment Award of $400 in the same year. The training that he underwent helped Mr Kamaruddin become more proficient in cleaning vertical surfaces, glass and ceiling. Amongst others, it also taught him the skills required to maintain the cleaning tools and equipment that he uses. Besides upgrading his skills and becoming more productive, Mr Kamaruddin also learnt to work safer. Through one of the training modules, he acquired the skills to identify and manage safety hazards at his workplace.

His company, AG, recognising the value-add he was able to bring to his work following his training, increased his salary to $1,600. So, it is quite a substantial increase in his salary – from $1,200 more or less to about $1,600. Mr Kamaruddin continues to benefit from WIS that supplements his income and retirement savings. His employer, Mr Bala, shared that sending his employees for training has resulted in him being able to offer his clients better quality cleaning services. Generally, his clients have also commented that they have been satisfied with better trained workers.

This is but one example of the many low-wage workers who have been helped by our policies. The improvement we have seen so far will spur us in striving to create a better and safer workplace for everyone.

The Chairman: We have a bit of time for clarification. Mr Gerald Giam.

Mr Gerald Giam Yean Song: Thank you, Madam. I have got three clarifications on the Jobs Bank, Fair Consideration framework, as well as the Progressive Wage Model.

Firstly, on the Jobs Bank, in response to Senior Minister of State Amy Khor's question, I am aware that job applications can come through many different channels. But for employers who post on the Jobs Bank, can they be required to update MOM whether the position was filled by Singaporean or foreigner? I think that is not too much to ask because the Jobs Bank service was provided for free to them, and this will enable the MOM to be able to spot any companies which are hiring an unusually high proportion of foreigners for new vacancies, and MOM can take steps to address it with these companies without waiting for complaints.

Secondly, on the Fair Consideration Framework, could I request for the Senior Minister of State's response to my suggestion that employers submitting EP applications be required to justify hiring a foreigner instead of a Singaporean?

And on a Progressive Wage Model, I know MOM is not currently planning to legislate PWM for sectors beyond cleaning, security and landscaping. The Senior Parliamentary Secretary cited criteria like outsourcing and cheap sourcing. So, are these the only three sectors where outsourcing and cheap sourcing are prevalent, and what other criteria is MOM looking for to quality for PWM?

5.45 pm

Dr Amy Khor Lean Suan: With regard to the Jobs Bank and requiring the employer to update the advertisement once the post is filled, I think the key objective of the Jobs Bank really is to make job opportunities more transparent to Singaporean jobseekers and, therefore, we want to encourage as many companies as possible to post on the Jobs Bank. If we require them to update the status of their job postings, that basically means additional paperwork and manpower for these firms, particularly if they are SMEs. And the concern, of course, is that there are many who may not want to post on the Jobs Bank because not everyone who posts on the Jobs Bank is actually looking to employ EP holders. And if that is the case, I think the outcome is actually poorer for Singaporean jobseekers.

In addition, I think referring to my reply earlier, we have also said that Jobs Bank is just one channel amongst the many channels to which employers can source for jobseekers and jobseekers can also source for job opportunities. And even if the job is actually through the Jobs Bank, if they apply directly through the firm's HR portal or directly to the firm, we may not be able to track it. So, if we are talking about tracking the employment outcomes of Singaporeans, the Jobs Bank itself may not give you a representative or accurate indicator of the level of employment for Singaporeans. We need to use other sources, for instance, what we do now through the regular surveys that we do, labour force job vacancy surveys. Of course, coupled with the information from the Jobs Bank, it will give us a good handle of how our market is as well as employment trends.

With regard to the hon Member's question about if we have these updates then it will be easier to identify which are the firms that may not be engaged in fair hiring practices in terms of giving Singaporeans a fair chance, or consider them fairly for the job, basically, for those who are going to apply for EP, after they have advertised in the Jobs Bank, we do require them, when they submit to tell us their job ID posting, that they have conformed with the advertisements as well as give us other information about salary levels when they put up through WDA for job postings so we can check. We will then also know from this information and we will ask them for reasons why they have not employed a Singaporean.

This would help us in various ways. First of all, of course, it can alert us also to firms that may just be submitting job advertisements, complying with that, but may not be engaged in fair hiring practices. So we can actually use that as an indicator. But we also use other indicators to alert us to companies that may not be considering Singaporeans fairly. So, we will engage these companies. In fact, let me add that in the UK, for instance, it is also not compulsory for employers to update the status of their job postings.

With regard to the hon Member's other question about other countries, some of them have onerous labour market testing in terms of having to prove that they have actually interviewed locals and they, for various reasons, have not hired them. Let me just reiterate that for us now, currently under our FCF, employers submit their EP application. As I have said, after posting, they give us the ID job posting number, we check against their requirement – 14 days. We also check against the salary, we will ask them to give us the reasons. As I have said, there are two reasons or objectives why we collect this set of information. Firstly, it is to capture the reasons why locals are not hired. This will also help us in terms of developing the skills of locals for such jobs. Secondly, it is to remind the employers – it is a clear signal to employers – that they should consider locals fairly before making an EP application.

Now, if we were to do more than that, put in place more requirements, the fact is that it may have unintended consequences. I think we all know that when we compete for jobs, it is actually in the global marketplace. It is between countries, it is not only within countries. Particularly for a small city-state like Singapore, the first thing we need to do is to compete for job opportunities with other cities in order to be able to get companies to set up shop and create jobs that Singaporeans want. So, if we make it too onerous, rigid, costly, cumbersome and time-consuming for firms to access manpower – because when the firms create jobs, they need to access manpower, not just Singaporeans, they may have to access workers and skills from overseas to complement the Singapore core workforce, then they may decide that it is so costly, cumbersome and if I have no access to manpower or my access to manpower is constrained, I may relocate some or all of the operations overseas to other countries. If that is the case, then the very jobs that Singaporeans aspire to and which we want to create and help Singaporeans to get may not be there in the first place. So, we need to strike a balance. We need to ensure that we have a fair and level playing field, ensure that companies will consider Singaporeans fairly for the job but, at the same time, we need to also make sure that the framework makes sense for companies, for employers, because many of the employers actually do access the local workforce to fill their positions. So, we need to calibrate and come up with a balanced framework that will help us achieve the objective of building a strong Singapore core and make sure that Singaporeans are able to be considered fairly for the jobs and, if they cannot because they do not have the right skills, then we will equip them or enable and encourage them to undertake skills upgrading, get the skills in order to get the jobs.

The Chairman: Ms Foo Mee Har.

Mr Hawazi Daipi: Madam, may I respond to Mr Giam's question?

The Chairman: Yes, on the Progressive Wage Model?

Mr Hawazi Daipi: Yes, a very quick one. We do not believe that we can only raise the income of low-wage workers in all sectors through Government-mandated initiatives like PWM. Where outsourcing is prevalent, widespread and there is a large number of local workers involved, there are many other ways to raise the income of low-wage workers. I have cited an example of how NTUC has worked with companies in the F&B, logistics and retail sectors where their members and individual workers working for companies can get better income through raising their productivity. And I cited the example of Baker's Heaven where workers enjoy up to 10% increase in their salary as a result of productivity improvement. In some sectors, in particular, three – security, landscaping and cleaning – where there is a necessity for a Government-mandated PWM, we would move in although it may take time to implement PWM. But for other sectors, we are quite happy to see NTUC working very closely with industry associations.

The Chairman: Ms Foo Mee Har.

Ms Foo Mee Har: Thank you, Madam. I would like to seek two clarifications. First, I would like to ask the Minister how we can ensure that members, when they withdraw their CPF, the decision is made in the best interest of the family. I say this in the light of the new CPF rules which now allow members the flexibility to withdraw amounts above the basic retirement sum, which is half of the original Minimum Sum. This is only predicated if the member owns a property. So should the spouse not have a say in CPF withdrawals, since withdrawal is predicated on the CPF charge on the family home? That is the first clarification.

Second, I would like to ask the Minister, for auto-switch function between spouses' accounts as an option, unless members opt out, so not mandatory, but make it automatic and unless members want to opt out. This option will help make transfer process fuss-free for couples and guide them towards an optimal arrangement for families unless they choose otherwise. Would the Minister not consider this as it helps shift the paradigm on how couples should optimise their CPF accounts for a safe and secure retirement for both parties?

Mr Tan Chuan-Jin: Mdm Chair, with regard to the first query, I think where properties are involved, when they are co-owned, the consent of the spouse would be required when they want to pledge it.

With regard to the second one, which is a broader issue of whether we should mandate this auto transfer of funds. As I have mentioned earlier, we believe that this is actually a very personal decision to be made on a family basis. Whether we should make it automatic and then for couples to opt out, I suppose that is one possibility. But I would be very hesitant to go down that path because there are many variables involved in the relationship of couples. I am not sure whether it is our place to ensure that couples do actively look out for each other in their provision for their retirement requirements. What we have done and what we are trying to encourage people to do is to top up for their loved ones. For example, whether not just spouses – children, siblings – you can actually use your cash to top up the accounts for those who may have lower accounts for various reasons, and the Government is committed to paying a higher level of interest rates for those accounts being topped up. Similarly, for the transfer for CPF funds, once you have met your Full Retirement Sum, especially for non-spouse, they are free to top up from the CPF. But for spouses, above the Basic Retirement Sum, we also encourage them to do that.

As highlighted earlier, this is one way to maximise the CPF system in order to provide for your loved ones. So, I would actually look at it beyond just the relationship between spouses, to within the family, from children to parents and also with siblings. And the Government is committed because when the funds are transferred and it is topped up to a person's CPF account, the Government will be paying fairly attractive rates, especially for those above 55, they can draw up to 6%, and that is quite significant, especially when you include the compounding effect and that will go a very long way to supporting these individuals. At this stage, I would be very hesitant to come in and for the Government to play a more intrusive role in making that happen.

Mr Low Thia Khiang: Thank you, Madam. First, on CPF Life. The CPF Life option is now to be exercised only at age 65 or whenever the member decides to draw down. That is according to the Minister. How about those who have committed their funds earlier from their Retirement Account to CPF Life? Are they disadvantaged, given the fact that now the Government pays a higher interest rate for the Retirement Account?

Madam, next, on SkillsFuture, I believe that the employer is the key to the success of this SkillsFuture initiative. So, what plans does MOM have to reach out to all the employers in various sectors to actively participate in this SkillsFuture? How does MOM monitor the progress in achieving the objectives of those specific schemes under SkillsFuture? Thirdly, for future leadership development initiatives, the Minister has cited some programmes under EDB and all that. What have those programmes cited achieved so far? How many Singaporeans are now in the pipeline of the corporate leadership, given that this programme has been running for some time? And how would SkillsFuture's new initiatives have added strength to that?

Mr Tan Chuan-Jin: Mdm Chair, with regard to the first question, for those who have exercised the choices from CPF plans earlier, the change that we are putting in place is for going forward. Individuals do not need to make the choice earlier. It is only upon which they decide to activate CPF payout – so, at 65 or beyond. For the interest rate regime that we are introducing, this does not prevent those existing members from enjoying the additional interest rates should they qualify.

6.00 pm

With regard to SkillsFuture, as mentioned, there are many stakeholders involved, employers being one of them. How do we encourage employers? As we have mentioned, there are various schemes available that should provide a level of subsidies for training for the workers concerned. I think it is in the company's best interests to do that. Actually, the biggest driver in this whole effort is the tightened labour market. Companies do sometimes find challenges looking for employees. SMEs, for example, do sometimes lament that people tend to look out at joining the bigger companies as opposed to SMEs. So, schemes that we are putting in place to support the SMEs is meant to help some of these companies to proactively get involved in the process so that these students, whether they are in the ITEs or polytechnics, can come on board with the companies and work with them earlier, for example, via their internships, and so on. Through these various measures, we do see the companies coming forward. In fact, some companies have already begun coming forward, and we will continue to work on that.

With regard to the development of leadership, this is an on-going process. We have seen even in the banking and financial sectors, a number of prominent Singaporeans holding leadership positions, not just senior positions within the banks here in Singapore, with some of them also managing regional businesses for the financial sector as well. What we do want to do is to make sure that the pipeline is there. We have seen good examples, pharmaceuticals is one that started off very early in the 60s and 70s in Singapore. We do see many of their senior management positions being held by Singaporeans. This is something we intend to do. We recognise – and this is from feedback from the industry, and this is not just from foreign bosses, but also Singaporean managers – in certain sectors, we do need to build up the skill set. This is where we work very closely with MOE to make sure that, in terms of the pipeline, we are equipping our people with skills, and that the schemes, scholarships and funding are available to help support companies to groom local individuals.

One of the factors that I have raised before in Parliament is the need for our local Singaporeans to have more international exposure. One of the curious observations that we have made is that, not just in financial sector but across various sectors, many Singaporeans are rather reluctant to be posted abroad for various reasons. The push factors need to be very significant. Singapore is comfortable. So, it takes a lot to want to go out. But it does actually affect their exposure to the region. Some of these companies are regional set-ups, or international set-ups, they do need managers and senior people with the relevant exposure. Companies are looking at that as well to see how best to make sure that Singaporeans can take that step forward. Some of them, for example, are looking at employing Singaporeans at an earlier age, perhaps before they have families, so that the reluctance to be posted abroad is perhaps slightly lower. So, these are the various measures that have been put in place to make sure that the pipeline is robust. But at the end of it, as the Member has mentioned as well, I think we all recognise that Singaporeans need to stand on their own feet and earn it on their own merit. But I also agree there needs to be a level playing field and there should not be glass ceilings. So the whole system – with the Jobs Bank, the FCF – is put in place to manage that, to send the right signals. But what we will do is to work very closely with MOE as well MTI and the respective agencies to make sure that the needs that are identified by the industry and the various sectors are being catered for, not only just in formal schooling period but also as part of SkillsFuture, and all the various modules that have been put in place that are meant to develop all Singaporeans with the potential, so that they can continue to move along that path.

Mr Ang Hin Kee: Madam, I would like to seek the Minister's support, perhaps, to look at this in selecting the courses that are eligible for SkillsFuture Credit. In 2008/2009, we had this structure Skills Programme for Upgrading and Resilience (SPUR) where the Ministry worked with the tripartite partners, both the employers and unions, to determine what were the courses that would receive enhanced funding and what were the training providers that could be qualified to provide the level of training that workers would need during the period. Earlier, the Minister mentioned that the courses will be determined and the criteria will be decided among the public agencies – like the MOE and MOM. So, I was hoping that the Minister could also consider reactivating this structure that was eligible during the SPUR period to consider it for SkillsFuture Credit.

Mr Tan Chuan-Jin: Mdm Chair, SkillsFuture is a very important part of our way going forward, to make sure that opportunities are available for Singaporeans, and we are open to working with various stakeholders, in terms of developing the specific courses that are available. And we will be quite happy to take up the Member's suggestions to explore what else we could do. Some of these things have been done before. I think there are many different approaches to do this, but we are not constraining ourselves. Where there are courses and modules that we think are practical and useful from the perspectives of both individual workers as well as from the industry, we will be quite happy to explore them, and to work them into the whole SkillsFuture setup.

Mr Seng Han Thong: May I ask whether the enhancements to the WIS over the years have been effective in encouraging Singaporeans to work? Two, since the WIS will be reviewed next year, can MOM consider lowering the age eligibility criterion from 35 to 30 years, and also offer a higher tier payout to lower income workers from age 55 and 60?

Mr Hawazi Daipi: Madam, I have actually responded to Mr Zainal Sapari's suggestion on the same point. Generally, I would say that what we have been offering to low-wage workers through WIS have been effective, and there are many other measures that we help them to boost their income. So, at the moment, we are not thinking of liberalising further the criterion for WIS payout.

Mrs Lina Chiam: I have two questions for the Senior Minister of State. The first one is, what are the safeguards her Ministry will have in place to prevent the abuse of the proposed SkillsFuture Scheme by third party companies and/or firms looking to profit by providing fraudulent or ill-will consultation services? And, second, would her Ministry consider introducing penalties for companies who apply for the scheme with the intention of abusing it?

Mr Tan Chuan-Jin: Mdm Chair, with regard to the courses and abuse by the vendors, we are fully aware of this. It is not just with regard to SkillsFuture, going forward. Even today, one of the things that I am preoccupied with and constantly working with WDA is to make sure that while we are providing funding – with good intent to support Singaporeans in their upgrading of their skills, as we are looking at re-skilling and upgrading themselves – we are mindful that vendors need to be responsible and need to do the right thing. But we are also under no illusion that there are vendors that seek to cut corners. Recently, there was one company that we found out – they were giving answers to the students. But a lot of this would depend on a couple of things. One, the audit effort put in by the various agencies. The other is also by feedback from the employees themselves who participate in these courses. If they find that actually they are just wasting their time and they are really not delivering quality modules, but the feedback needs to be provided, and we will investigate. Or it can be from the employers themselves. So, through a series of these different measures, I think we do want to weed out those companies who take advantage of this and do not carry out their responsibilities properly. And we will blacklist some of these individuals. Recently, I have also asked my staff to name the individuals concerned so that there is that aspect of making public those who are responsible for this.

Going forward, SkillsFuture is a major effort, a lot of monies are being put in. I am fully mindful that there will be those who are eyeing this opportunity. But, as I mentioned earlier, it is always a balance. If you want to ensure that there is zero abuse of the system, you may end up with a system that is very laborious and difficult to administer. That becomes less flexible. But if a system is too lax, you will have people taking advantage of it, and somewhere in between, we will have to strike a balance. I think that is probably true of most of our policies as well. We are always mindful that there will be people who want to take advantage of it, and that is where the audit trail is important, and individuals providing feedback. The important thing is to have sufficiently punitive series of measures that will deter individuals from taking those steps. And if they do, then we will have to whack them, to make sure that they pay for that.

The Chairman: Mr Zainudin, do you wish to withdraw your amendment? Further clarification, Mr Low? Keep it short, please.

Mr Low Thia Khiang: Madam, I refer to the Senior Minister of State's speech just now. She said that MOM will take the employer to task for not following the Fair Consideration Framework. I would like to seek clarification from the Senior Minister of State. Firstly, in what way would employers be taken to task; and, secondly, how many employers have been taken to task thus far? The other clarification was on the Jobs Bank. I would like to know when a company has a job vacancy, if the company considers the vacancy as an internal transfer, does it need to follow the framework to advertise on the Jobs Bank? Because I understand that it has become like a loophole where you consider it as an internal transfer and you do not advertise, but you get a transfer from another branch in other country to fill the vacancy, instead of advertising on the Jobs Bank to allow Singaporeans to apply.

Dr Amy Khor Lean Suan: Regarding the action that we will take for firms that we find have engaged in discriminatory practices, and the Member has also asked for the numbers, I have actually given it in the reply in response to Mr Zaqy Mohamad's query. There were a total of 230 nationality-related discrimination complaints that were received either by TAFEP or MOM in 2014. That was actually down from 310 in 2013. Basically, what we do is when we receive a complaint, we will assess and study the information provided by the complainant. Of the 230 complaints that we received, about 40% were unsubstantiated. There were actually complainants who, when we pursued, refused to provide further details, including their own names. These are unsubstantiated. I am tired. Sorry.

The Chairman: Dr Khor, you can keep your reply short, you will be less tired.

Dr Amy Khor Lean Suan: Yes, thank you. I have to explain why. For those allegations that are substantiated, the case officer will engage the company to learn about what are the issues, and so on. So, there are various recourse and actions that we take. For those that are just HR gaps, we will then advise them and get them to plug the gaps, and follow up. For those that are more serious, we may issue warnings and will also put them on a tighter scrutiny. And there will also be some cases where we may curb their work pass privileges. So, about a third of the cases, there were issues where we either issue warnings, put them on scrutiny or curb their work pass privileges.

Regarding the intra-corporate transfers, these are actually exempted from advertisement requirement. You know that we are a global and regional business hub, so companies that based their headquarters here will need to transfer some of their senior personnel and professionals here because they want to understand the market or to lend their expertise and experience. In fact, our own firms do the same thing when we venture abroad. And they also send locals overseas. So we allow exemptions, but it is actually very stringent. In order to allow exemptions, the definition of "ICT" must comply with WTO's definition under the General Agreement on Trade in Services. So, there are certain criteria that they must conform to. We actually implement these very stringently. We look at the salary, we look at the organisation chart, to see if they actually conform with the ICT definition before they are allowed to enter, and there are limits as to the length of the period they are able to stay here. But we need to allow this simply because, as I have said, we have got regional and global business hubs. Since we implemented the Jobs Bank, actually about half of the ICT applications have not been approved, have been rejected. The conditions are stringent. We study every case carefully.

The Chairman: Last clarification, Mr David Ong.

6.15 pm

Mr David Ong: Thank you, Madam for indulging. In fact, I do come across many people who have got very deep work experience, many years of experience. But in terms of skills, they have a problem using their skills because they have fallen short of the academic qualification to go into a Polytechnic. I wanted to check whether MOM can work with MOE to see whether we could have relevant experience in terms of accreditation and have them to be able to qualify to do a course in diploma or a course in University based on their experience and from related field they are in.

Mr Tan Chuan-Jin: Mdm Chair, the idea for SkillsFuture is to make it accessible for as many Singaporeans as possible. We recognise that there will be some requirements for some of these courses. But I do take on board the Member's concern that some members may not meet the criteria for some existing courses. We will be quite happy to review this, and to explore how best to address it. So, the idea is to make it as accessible as possible.

And if, I may take the opportunity to amplify on what Senior Minister of State Amy Khor mentioned: the intra-corporate transfer is something we take very seriously. It is important to understand that Singapore has become very globalised. Many of our businesses, many of Singaporeans, have a lot of opportunities to be deployed overseas. It is through some of these arrangements that have allowed Singaporeans to work and hold fairly important positions in other countries.

But there are very strict rules in place with regard to who qualifies for ICT. Some have said this is an easy backdoor – it is not, because there are specific criteria, such as the time period, the seniority. These effectively rule out a lot of rank and file, normal kind of jobs that we are looking at. Companies that want to try their luck on those fronts would not qualify, because those are not intra-corporate transfers. There are existing internationally recognised rules on how ICT should be regarded, and that is how we implement.

It is important to realise that it does benefit Singaporeans as well. Many of these agreements that we have made have benefitted our people, and allowed them to spread their wings. Although I had mentioned that there are those who are reluctant to be posted abroad, but there are also many established Singaporeans who have that opportunity. That has benefited not only them, but ultimately benefit us, because when they return, they bring with them the wealth of experience that is of tremendous value to our society as well.

The Chairman: Mr Zainudin, do you wish to withdraw your amendment?

Mr Zainudin Nordin: Mdm Chair, for all the resources that the Government is investing in continuous education and training, more still needs to be done to instil a lifelong learning culture in Singapore worker's psyche. So I think SkillsFuture is a very promising initiative to encourage working adults to improve themselves. I am confident that the Government will do more to maximise our investment it encompasses. Let us all do our best to help Singaporean workers to maximise their potential. On behalf of my colleagues, allow me to thank Minister Tan, Senior Minister of State Amy Khor and Senior Parliamentary Secretary Hawizi Daipi for their updates and the answers during the debate just now. Madam, I beg leave withdraw my amendment.

Amendment, by leave, withdrawn.

The sum of $1,454,043,600 for Head S ordered to stand part of the Main Estimates.

The sum of $24,289,900 for Head S ordered to stand part of the Development Estimates.