UNFILLED JOB VACANCIES IN SERVICES SECTOR

UNFILLED JOB VACANCIES IN SERVICES SECTOR: 21.

Mr Teo Siong Seng asked the Minister for Manpower whether his Ministry will consider reviewing the foreign worker policies in view of the latest official statistics revealing a record number of job vacancies left unfilled for a

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protracted period especially for rank-and-file workers and in the services sector.

Mr Speaker: You have two-and-a-half minutes left, Mr Gan.

The Minister for Manpower (Mr Gan Kim Yong): Mr Speaker, Sir, the robust economic recovery in 2010 had brought about strong economic and employment growth. As a result, job vacancies rose by 36% over the year, to 50,200 in September 2010.

Amidst the tight labour market, it is natural for employers to desire greater access to foreign workers. However, an over-reliance on low-skilled foreign workforce is not sustainable in the long term. Companies which are heavily dependent on low-skilled foreign workers for growth should instead improve their productivity – they should move up the value chain, review their business models, redesign work processes, and upgrade the skills of their workers. Such efforts will not only enhance their competitiveness but are, in fact, critical for their viability.

This is why we need to continue to moderate the demand for foreign manpower and encourage companies to improve efficiency and raise productivity. Sir, we announced last year that the Foreign Worker Levy (FWL) for Work Permit and S-Pass holders would be increased in phases, starting from 1st July 2010. Entry criteria and other requirements have also been finetuned to raise the quality of our foreign workforce here.

The Government has introduced several schemes to help companies innovate and improve. For example, the Government has established a S$2 billion National Productivity Fund (NPF) to support productivity initiatives at all levels. In particular, the Building and Construction Authority (BCA) has tapped on the NPF to launch the S$250 million Construction Productivity and Capability

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Fund (CPCF) which aims to improve productivity in the construction sector through technology adoption, workforce development and training, and capability development. The Government has also introduced a Productivity and Innovation Credit (PIC) during last year’s Budget to provide enhanced tax deductions when companies undertake productivity or innovation-related investments, such as training, research and development, and design.

At the same time, the Government is working closely with our tripartite partners to facilitate the employment of local residents. For example, we have a large pool of inactive residents, especially women, who could be encouraged to rejoin the workforce if the jobs offered flexibility. The Flexi-Works! scheme offers a grant of $100,000 to help companies hire the economically-inactive on part-time or flexible work arrangements. NTUC Women’s Development Secretariat (WDS) also holds regular job fairs targeted at women who are new to the workforce or who have not worked for a long time. Another pool of potential labour that companies can tap on is the older residents. The Retirement and Re-employment Act will take effect from 1st January 2012 to provide more job opportunities for older workers. Through the ADVANTAGE! Scheme, we offer a financial grant of up to $400,000 to help companies recruit, retain and re-employ older workers.

Sir, therefore, I encourage businesses that have manpower needs to tap on these sources of local residents and make use of the various schemes for their businesses to raise their productivity and to reduce their reliance on foreign workers.

3.00 pm

Mr Speaker: Order. End of Question time.

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[ Pursuant to Standing Order No. 22(3), Written Answers to Question Nos. 22 and 23 on the Order Paper are reproduced in the Appendix*.]