JOBS CREDIT SCHEME

JOBS CREDIT SCHEME:

(Phantom Workers): 1.

Mr Seah Kian Peng asked the Minister for Finance whether there is a system in place to ensure that Jobs Credit is not given to companies who are already hiring phantom workers.

The Second Minister for Finance (Mrs Lim Hwee Hua) (for the Minister for: Column: 699

Finance): Sir, a system has been put in place to ensure that Jobs Credit is not given to companies hiring phantom workers. Jobs Credit payments are withheld from employers that are under investigations or are being prosecuted by the Ministry of Manpower (MOM) for alleged hiring of phantom workers. Jobs Credit will only be paid to these employers if they are cleared of such allegations.

In addition, prior to each payout of the Jobs Credit, employers on the CPF Board's database will be screened for unusual contribution adjustments or significant increases in CPF contributions. For such employers, the Government will conduct verifications and, if necessary, will withhold payment to these employers until verifications are completed. We will also conduct selective audit checks. Should any abuse be uncovered, employers could be disqualified from subsequent Jobs Credit payments and face legal prosecution.

Mr Seah Kian Peng (Marine Parade): Sir, I thank the Minister for the answer. I would like to ask, after the first pay-out, whether the Ministry has found possible cases of companies hiring phantom workers.

Mrs Lim Hwee Hua: Sir, indeed there are some companies that are under investigation and as I have mentioned in my reply, if the allegations are proven correct upon verification, the Jobs Credit payment will be withheld.

Mdm Halimah Yacob (Jurong): I would like to ask the Minister how many companies have benefited from the Jobs Credit Scheme. How many workers have benefited from the Jobs Credit Scheme? Could the Minister also give us an assessment as to the effectiveness of the Jobs Credit Scheme in achieving its

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objectives? And could the Minister also inform the House if there was a mechanism in place to identify whether there were any phantom companies, even before phantom companies were found? And, finally, could the Minister also inform the House how many SMEs and MNCs have benefited from the Scheme?

Mrs Lim Hwee Hua: Sir, since the introduction of the Jobs Credit Scheme, about a hundred thousand employers, employing some 1.3 million local workers, have received S$920 million from the first of four payments of Jobs Credit in March 2009. This is based on the wages that they paid in October to December 2008. As to the split by SMEs and MNCs, I do not have that information with me. With regard to Mdm Halimah's question about whether there are ways to discover the phantom workers, the Ministry of Manpower (MOM) as I understand is working very hard to detect some of these companies. The point I want to put across is that as soon as we have any indication of such a possibility, the payments will be withheld. This is to prevent abuse.

Mr Speaker: Mdm Halimah, last question.

Mdm Halimah Yacob: Can I ask Minister for an assessment of the effectiveness of the Jobs Credit Scheme in meeting its objectives? I would appreciate a reply to that.

Mrs Lim Hwee Hua: Sir, as the Scheme has only been implemented since January, it is a little early to draw a definitive conclusion on the overall effectiveness. Suffice it to say that the anecdotal feedback from the employers has been rather positive. And many have indicated that the presence of the Jobs Credit Scheme has enabled them to re-assess their manpower requirements and many have actually constructively thought of ways of deploying the staff as well as

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sending them for training, whilst benefiting from the Jobs Credit Scheme as well.