UNEMPLOYMENT (Measures to reduce)

Encik Abbas Abu Amin asked the Minister for Labour what is the latest unemployment situation and whether his Ministry has plans (i) to encourage part-time employment, (ii) to persuade employers in the private sector to increase the retirement age of their workers and (iii) to monitor the supply and demand on foreign workers so as not to jeopardize our own people of job opportunities.

Mr Lim Boon Heng asked the Minister for Labour what is the latest available unemployment rate.

The Minister for Labour (Mr Lee Yock Suan): Mr Speaker, Sir, may I answer Questions 13 and 14 together as they overlap.

The latest labour force survey in September 1987 shows that there were an estimated 44,700 unemployed persons, a decline of 14,100 persons from June 1987. This gives an unemployment rate of 3.6%, down from the 4.7% recorded in June 1987.

With economic recovery, the unemployment situation has improved as many of the jobs created have been taken up by Singaporeans.

My Ministry has been encouraging companies to employ more part-time workers as an additional source to meet their labour requirements. Our survey shows that about 27,000 housewives are interested to return to work. Of these, about 12,000 would like to work part-time. This is a potential pool of persons for employers to attract back to the workforce by devising part-time schemes with working hours which suit these women. There is also the pool of retired workers some of whom may be prepared to seek part-time employment. My Ministry is presently looking into how the Employment Act can be amended to facilitate part-time employment.

I have made clear that the Government would like employers in the private sector to raise the retirement age of their workers to 60 years. In July this year I informed the House of the Government's intention to gradually reduce the CPF contribution rates for employees working beyond 55 years of age to facilitate the raising of the retirement age. I hope employers and their unions will settle this issue during the negotiations of new collective agreements. My Ministry will closely monitor progress on this issue.

My Ministry is regulating the entry of foreign workers into Singapore. I will explain our work permit policy later in reply to Questions 15 and 30. 11.28 am

[Mr Deputy Speaker in the Chair]

Mr Chiam See Tong: Sir, of these foreign workers, how many of them are from Malaysia and are commuting to and from Singapore daily?

Mr Lee Yock Suan: Mr Deputy Speaker, Sir, I do not have the figures here.

Mr Chng Hee Kok: Sir, in view of the improved situation, will the Minister direct his Ministry to be less stringent in issuing work permits for local industries?

Mr Lee Yock Suan: Mr Deputy Speaker, I will be answering questions on the work permit policy in reply to Questions 15 and 30. Maybe the Member can ask his question later.