MINISTRY OF LABOUR

We shall continue to promote harmonious industrial relations and a safe and healthy working environment.

Industrial Relations and Wage Reform

The experience of an economic recession and two years of wage restraint has strengthened the partnership between management and unions, and improved prospects for investment, employment and economic growth.

Both management and unions have accepted the need for flexible wage systems linked to productivity and profitability. We will encourage more firms to adopt flexible wage systems.

Use of Manpower

With full employment, employers must upgrade and mechanize further to improve productivity. The Government will continue to regulate recruitment of unskilled foreign workers, so that Singapore will not become over-dependent on them.

We will raise the retirement age to 60 within the next three years, and encourage part-time employment. If necessary, we will amend the Employment Act to do so.

Social Security

The CPF scheme already provides for the old age, housing and hospitalization needs of Singaporeans. With the Minimum Sum Scheme in place, we will keep the CPF withdrawal age at 55 even after raising the retirement age to 60.

We will extend the CPF scheme to more self-employed working Singaporeans.

As the economy grows, we will raise the CPF contribution rate in step, to reach the long-term target of 40%, split equally between employers and employees.

We will allow Singaporeans to invest part of their CPF savings in tertiary education for themselves and their children, up to the limit of the fees set by NUS and NTI. After the students have graduated and started working, they must pay back to CPF the funds they have used, so that the basic objectives of the CPF scheme are not undermined, and their parents' needs are not neglected.

We will review Workmen's Compensation rates.

Industrial Safety and Health

There are now fewer factory accidents. We will continue to encourage self-regulation in industrial safety and health, and step up safety and health education programmes together with employers and unions.

LEE YOCK SUAN Minister for Labour