FOREIGN WORKERS LEVY (Use for training of workers and managers)

Dr Wong Kwei Cheong asked the Minister for Finance if he will consider using the revenue collected under the foreign workers levy for the training of workers and managers.

The Minister of State for Finance (BG George Yong-Boon Yeo) (for the Minister for Finance): Mr Speaker, Sir, the foreign workers levy was introduced to control the growth in employment of foreign workers and not as a revenue-generating measure, nor as a levy to fund training. The Skills Development Fund was set up specifically for the purpose of training of workers and supervisory staff and the levy collected is earmarked for this use. The question of earmarking the foreign workers levy for the training of workers and managers therefore does not arise.

The funds collected go into the Consolidated Fund and can be used, among other things, for the general promotion of education, training and skills development. For example, the EDB has set up a scheme known as INTECH (Initiatives in New Technology) to encourage the learning of new skills and know-how. It provides assistance through grants of up to 90% of allowable costs, subject to a maximum of $5 million per training project, to cover selected costs of undertaking such projects.

Dr Wong Kwei Cheong (Cairnhill): Sir, I hope the Minister of State is aware that since the reduction of the SDF from 4% to 1%, the policy has been changed to the training of workers, and not workers and managers. So there is now a big need of additional government funding for the training of managers. Since the Minister for Labour has previously reported that the Government is expected to collect $400 million from the foreign workers levy this year, I am wondering whether the Minister of State would consider using part of this money for the training of managers.

BG George Yong-Boon Yeo: Mr Speaker, Sir, additional funds for the training of managers should be considered on its own merits. There is no need to link the requirement for such training with the collection of foreign workers levy which is principally an administrative measure rather than a revenue-collecting measure. If there are good proposals for expending more money on the training of managers, I am sure any such proposal will be carefully considered either by the National Productivity Board or the Minister for Trade and Industry.