NON-PROFIT SECTOR'S CONTRIBUTION TO GDP

NON-PROFIT SECTOR'S CONTRIBUTION TO GDP: 17.

Mrs Mildred Tan asked the Minister for Community Development, Youth and Sports (a) how much of Singapore's GDP is accounted for by the non-profit sector; (b) what is the rate of growth for this sector over the past 10 years and what is the projected growth; (c) how much of the local workforce is in this sector; (d) what are the types and amounts of capital funding for this sector; and (e) what is the percentage of funding that comes from donations, Government funding, and fees collected by these organisations.

The Minister of State for Community Development, Youth and Sports (Mrs Yu-Foo Yee Shoon) (for the Minister for Community Development, Youth and Sports): Mr Speaker, Sir, there is no standard definition of the non-profit sector. For Singapore, the non-profit sector generally consists of organisations that are not set up to generate profit and rely mainly on grants and donations to cover their operating expenditure. These organisations are across sectors such as social service, health, education, arts and sports, among others. They include charities and Institutions of a Public Character (IPCs).

The non-profit sector contributed 1% of Singapore's GDP and employed some 48,000 people in 2009. The sector grew at a compounded annual growth rate of about 7% from year 2000 to 2009.

For financial year 2009, the Government provided $54 million in capital funding for infrastructural development to non-profit organisations in the education, health and social service sectors. In 2009, Government funding accounted for almost 50% of the total funding received by the charity sector; the other 50% came from donations and fees.

In the area of social services specifically, local manpower for the social service sector rose from 5,114 in 2003 to 7,207 in 2009. MCYS' funding to social services increased by more than threefold over 10 years to $139 million in FY2010.

The Government also provides additional funding to help non-profit organisations develop their capabilities through the $45 million Voluntary Welfare Organisations Charity Capability Fund (VCF).

The Government supports the critical work done by non-profit organisations through funding as well as by encouraging community giving. The tax deduction for donations was increased to 2.5 times in 2009 and this has been extended for another five years until 2015.

There are also matching grants for donations towards essential areas. During the recent Budget 2011, $1 billion was set aside for the Community Silver Trust to match donations to voluntary welfare organisations that provide long-term care for the elderly and disabled.

The non-profit sector complements the public and private sectors. The non-profit sector and its volunteers serve the community with passion and champion causes to create a better society, be it in the arts, sports or other sectors. It also provides opportunities for people to volunteer and be actively engaged, which in turn fosters social cohesion. Thus, it is vital that the non-profit sector continues to grow. The Government and the community will continue to support and grow the sector to achieve better social outcomes.

Mrs Mildred Tan (Nominated Member): I thank the Minister of State for her comprehensive reply. I just have one quick question. With this growing trend, what is the Government's stand in ensuring the continuous upgrading of competencies in this field? There is a phenomenal number of people in this sector and the numbers keep growing every year. So what steps of measures are we looking at to upgrade the skills and competencies of the people?

Mrs Yu-Foo Yee Shoon: Mr Speaker, the Member has filed a second Question about the voluntary sector and it is related to this supplementary Question she has now asked. May I take the next question now?

Mr Speaker: Yes.