INSTITUTE OF TECHNICAL EDUCATION BILL

Order for Second Reading read. 2.20 pm

The Senior Minister of State for Education (Dr Tay Eng Soon): Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time."

The Bill provides for the establishment of the Institute of Technical Education, Singapore, or ITE in short, which will take over the functions of the Vocational and Industrial Training Board (VITB).

Sir, vocational and technical training started in Singapore in the 1960s, first under the Technical Education Department of the Ministry of Education (MOE), and then under the Industrial Training Board (ITB) in the 70s and from 1979 till now under the VITB. The total number of skilled workers that have been trained and certified is 150,000. Most of these persons are still in our workforce. Today, they constitute some 12% of the total workforce of 1.3 million. In the last 10 years alone, VITB trained and certified 120,000 skilled workers for our economy.

Sir, one of the key factors enabling our economy to compete against others in the international arena is the quality and number of trained skilled workers we have. BERI, the Business Environment Risk Intelligence company, has rated our workforce as being No. 1 continuously for the past 12 years. Their rating takes into account our relative productivity, our legal and industrial relations framework and the availability of trained manpower compared with other countries. Although we have been ranked first overall, BERI has also pointed out that we rank only 14th in respect of the availability of trained manpower, including skilled workers.

This weakness is due to the sizeable pool of low educated, low skilled workers in our workforce from the past. But this position is steadily improving, first from the output of new skilled workers from our training institutes, and secondly, from the upgrading of workers through the wide range of worker education and training programmes such as BEST, WISE, MOST, TIME and Fast Forward.

The present and the projected intake for the new ITE, for full-time and apprenticeship training courses, is 10,000 per year. In addition, the number of skilled workers trained and certified through our continuing education and training programmes is 5,000 each year. Based on these outputs and allowing for attrition and retirements, our total pool of skilled workers by the year 2000 will reach 280,000, constituting 18% of the 1.5 million workforce at that time. In absolute terms, this would represent an increase of 130,000 or 87% more than the pool of 150,000 skilled workers trained and certified by VITB today.

Sir, I believe that we will steadily improve our labour force and maintain our No. 1 position in the BERI report. More importantly, we will improve our comparative advantage which is the quality of our workforce and thus maintain our competitiveness in the international market. Recent changes to improve our education system, and the proposal to upgrade VITB to the Institute of Technical Education, will help us achieve this goal.

Sir, in July 1990, the Minister for Education set up an MOE Committee to review Primary School Education. The MOE Review Committee proposed two changes which have direct implications for VITB. First, all students will receive at least 10 years of general education, including secondary education, before they proceed for further education and training. Secondly, a new Normal (Technical) course will be introduced in secondary schools. The course will better orientate and prepare the less academically inclined pupils for vocational training.

In parallel with the MOE Review, the VITB also set up a Review Committee to examine the proposed changes, and to formulate plans to upgrade vocational training.

The current training system has been developed to meet the training needs of both primary and secondary school leavers under the New Education System (NES) introduced in 1980. It consists of different levels of training:

(i) National Trade Certificate Grade 3 (NTC-3) level courses, mainly for primary school leavers, and

(ii) National Trade Certificate Grade 2 (NTC-2) level courses, Industrial Technician Certificate (ITC), Certificate in Office Skills (COS) and Certificate in Business Studies (CBS) for secondary school leavers.

This system that we have evolved has been successful in attracting more school leavers to join vocational training. The enrolment of full-time VITB trainees has grown steadily from 10,000 in 1980 to 16,000 in 1990, an increase of 60%. The VITB now admits about 10,000 school leavers annually, equivalent to one quarter of our average school cohort.

Sir, VITB's experience shows that secondary school leavers in its technical, commercial and skills courses are able to complete their courses successfully. VITB's Graduate Employment Surveys show that most of them are working in jobs for which they are trained. They are well received by industry, have good starting salaries and good career prospects.

However, the performance of primary school leavers is not as good. Many of them do not complete their training. They leave for the job market half way through their course or fail to pass the NTC-3 certificate when they reach the end. The net number of primary school leavers successfully obtaining the full NTC-3 certificate is a mere 40%.

Unfortunately, this is not the end of the problem. VITB's Graduate Employment Surveys show that 75% of NTC-3 graduates with only primary education are not getting jobs for which they are trained. They are going into some other area of employment. That is a waste. The reason is that the salaries offered to them are not attractive and are often similar to those who are unskilled. Employers seem to place a low value on NTC-3 graduates with a primary education. Thus, it has become clear that trainees with only primary school education have not been successful as vocational trainees. It appears that employers prefer vocational graduates to have at least a secondary education.

The VITB reviewed its current training system, and, in March 1991, announced four major plans to upgrade vocational training. The first plan is to upgrade VITB to a post-secondary institution providing training for secondary school leavers who, in future, will have at least 10 years of schooling. The Basic Vocational Training Programmes for primary school leavers will be phased out by 1995 when there will be very few primary school leavers under the improved primary school system. Courses for secondary school leavers will be further expanded. For example, more NTC-2 places will be made available. Secondary school leavers are expected to make it to NTC-2. But for those who are unable to do so, they will be awarded NTC-3 certificates commensurate with their training. I do not foresee the phasing out altogether of NTC-3 courses as some employers will continue to recruit such graduates. However, in future, NTC-3 courses will be provided through the apprenticeship route by employers who need such skills.

The second plan is to expand the scope of apprenticeship training in Singapore. Formal apprenticeship in Singapore started as far back as 1968. But in the rapid growth in the 1970s and 1980s, industries were not ready to train workers for their own needs.

Today, our industries are ready to play a more active role in the training of the skilled workers they need. They recognise the importance of having skilled workers who can operate their increasingly sophisticated and specialised facilities. A new national framework for apprenticeship schemes was thus introduced in 1990.

VITB's plan to upgrade and expand the scope of apprenticeship in Singapore will help companies to train skilled workers in many new areas which are not available through the full-time institutional system, thus widening skill options for school leavers. These new areas include aerospace skills, retail sales, health care, travel and tourism, and computer operations. With the Skills Development Fund support, the apprenticeship scheme will enable firms to recruit workers and to turn them into skilled workers. For the trainees, they can earn and learn at the same time. Small and medium sized enterprises are beginning to take advantage of the scheme. Firms wanting to take part in the apprenticeship scheme must satisfy VITB that they have qualified industrial trainers and a proper apprenticeship programme.

Sir, apprenticeship training, which we are emphasising and promoting, is not just another method of skills training. Skills and knowledge can certainly be provided through full-time institutional training. But apprenticeship training has the potential to do more. Let me explain. In the 2-3 years that an apprentice spends with his company, a strong bond of loyalty can be established between the apprentice and his trainers and supervisors and ultimately with his firm. This can happen especially if the firm treats the apprentice with care. Sir, this is precisely the reason why firms in Japan, Germany and Switzerland strongly advocate the apprenticeship method of training. In Germany and Switzerland, nearly 70% of their school cohort go into apprenticeship training before going on to work or to higher education. In Japan, all new employees, even degree graduates, have to go through a 3-year in-company training course starting from the shop floor. The purpose of all this is not just to develop in them company skills and knowledge, but also good work attitudes and loyalty. No wonder, the workers from these three countries are among the best in the world.

Sir, VITB or ITE as a training institution can certainly train skills and give knowledge, but it cannot develop loyalty on behalf of the companies. Properly run apprenticeship training can, and can thus lead to a reduction in job hopping, as is the case in Japan, Germany and Switzerland despite their tight labour market. We would do well to follow the example of these three countries.

VITB has had extensive dialogue with Singapore Manufacturers Association (SMA) and many firms. I am glad to say that the consensus and support for apprenticeship training in Singapore is growing. At the moment, nearly 320 firms are committed and are involved in providing apprenticeship training in collaboration with VITB.

VITB's third plan is to create new opportunities for its graduates to progress to higher levels of training, both within its own training system and to the polytechnics.

In July 1991, the polytechnics enrolled some 140 and 740 VITB graduates into their full-time and part-time courses respectively. Compared with the previous year, the increases were four times for full-time courses and double for the part-time courses. Subject to the experience with these VITB graduates in diploma courses, the polytechnics are prepared to take in more VITB graduates in future.

In the fourth plan, ITE will spend some $250 million to build seven new training institutes and redevelop three existing ones over the next six to seven years. The aim is to provide an enriching, total learning environment for its trainees besides improving the quality of training courses.

With the upgrading of the vocational training system in Singapore, the VITB must take on a new role. This means a change in its corporate name and a restatement of its mission and objectives. The new Institute of Technical Education, Singapore, will be a post-secondary education and training institution, providing technical training for school leavers who have completed 10 years of general education.

Sir, I now turn to the Institute of Technical Education Bill. It proposes to establish the Institute of Technical Education as a body corporate comprising a Board of Governors, the Chief Executive Officer and other officers.

The Bill defines the main functions of the ITE and the powers and duties of the Board of Governors. The Bill has made provisions for all VITB staff to be transferred to the ITE upon its formation. It also provides for the transfer of all existing training institutes under VITB to the new ITE. The Institute of Technical Education will be a statutory board replacing the existing Vocational and Industrial Training Board.

Sir, I beg to move.

Question proposed.

Mr Chiam See Tong: Sir, I note the Minister had technical problems with the lectern. It is perhaps timely that the Institute of Technical Education is established.

Sir, may I have some clarifications? This Bill says that it repeals the Vocational and Industrial Training Board Act. Does it mean that when this Bill comes into being, the Vocational and Industrial Training Board will cease to exist? If that is so, then this Bill is not really establishing a new technical institute of education, but rather just taking one label down and putting up a new one. The Opposition, in fact, hopes that a new technical institute will be established, because Singapore needs a lot more skilled people and much more training of vocational, industrial and technical personnel. Even as shown by the statistics given by the Minister, over the last 10 years, the VITB only trained 120,000 of our school leavers. This is definitely not enough with a workforce of over a million people. And I believe not long ago, we read that 60% of our workers were illiterate in literacy and numeracy. Even up to today, there are only 150,000 trained and certified skilled workers. This is about 10% of the workforce. No wonder, we are ranked 14th by Beri's standard, as far as trained manpower is concerned.

The Minister has talked much of the apprenticeship training schemes of Japan, Germany and Switzerland. They have a long history of apprenticeship. Singapore does not, especially when we are an Asian country, and people are very selfish in departing their skills. I had mentioned this once and I met with very hostile reception. I hope attitudes have changed.

Sir, it is a good thing to have apprenticeship schemes in Singapore. I think all professions, all business people, should be encouraged to have this kind of culture.

Sir, if Singapore is to increase its industrial and technical activities, then it must have a good infrastructure. A good infrastructure must include of course trained and skilled workers. Therefore, we must go all out to get more of our school leavers to be properly trained.

There is another aspect of skills training. Not only will skills training equip them to earn a living, but in fact it will also inculcate discipline, dignity and self-respect in our workers. This is an important aspect. One of the problems of primary school leavers is that perhaps they lack this self-respect and they have no confidence in themselves. The solution perhaps is not to phase out NTC-3, but rather to make our schooling compulsory for eight years. If we could afford, it would be 10 years. Then they will have secondary school training.

Sir, despite what I have said about replacing a label, I do support the Bill and I hope the Bill, when it is implemented, will also have some aspects in which our apprentices could benefit from them.

Dr Tay Eng Soon: Mr Speaker, Sir, I thank Mr Chiam for supporting the Bill. I notice, as I was making the speech, that he was furiously writing down many things that I have mentioned and he has brought them up for discussion. I welcome that.

It is not a change of label when VITB becomes ITE, because there is restructuring that will take place to make the new Institute different from the old VITB. I have already mentioned in my speech that the focus of the ITE will be for those who have finished 10 years of schooling. That means upgrading courses, expanding courses, higher level courses for people who have completed the very extensive schooling before going on for training. That is quite different from taking primary school leavers and giving them training.

I do not want to comment on some of his other points because actually they are straight from my speech and I think there is no need for further comment. However, he made one point regarding the continuation of NTC-3 courses. I made it very clear in my speech that NTC-3 courses have a problem, especially for those who have just finished primary education and gone on to that kind of course. First, many do not complete it. Secondly, for those who successfully complete NTC-3 courses, they are not getting salaries more than unskilled workers, indicating to us that employers do not place high value on NTC-3 courses for primary school leavers. So the position that ITE will take will be to encourage employers who need NTC-3 graduates to get involved in apprenticeship programmes and to be involved in running NTC-3 courses. Whatever we train in VITB or ITE must be in response to employers' needs and not for any other reason, because it must meet the job market and then the trainees will be profitably employed after their training.

Question put, and agreed to.

Bill accordingly read a Second time and committed to a Committee of the whole House.

The House immediately resolved itself into a Committee on the Bill. - [Dr Tay Eng Soon].

Bill considered in Committee; reported without amendment; read a Third time and passed.

Mr Speaker: Order. I suspend the Sitting and will take the Chair again at 3.10 pm.

Sitting accordingly suspended at 2.46 pm until 3.10 pm. Sitting resumed at 3.10 pm