SHORTLISTED HDB FLAT APPLICANTS (Retention of original queue position for downgraders)

Mdm Claire Chiang See Ngoh asked the Minister for Manpower what is the breakdown in terms of gender, age, industry, types of courses and amount of benefits received, of employees who have benefited from the Skills Redevelopment Programme; and if the subsidy does not cover the full amount of the training programme, what options an interested party has in order to obtain funding to cover the difference.

Mdm Claire Chiang See Ngoh asked the Minister for Manpower whether there are plans for skills redevelopment programmes to be offered to workers who have been retrenched and, if so, what kind of training will be offered for what kind of jobs.

The Minister for Manpower (Dr Lee Boon Yang): Mr Speaker, Sir, Questions 5 and 6 are on a similar subject. May I have your permission to take both Questions together?

Mr Speaker: Yes.

Dr Lee Boon Yang: Mr Speaker, Sir, the Ministry is working closely with the NTUC and the SNEF (Singapore National Employers' Federation) to promote the Skills Redevelopment Programme (SRP). This programme is designed to enhance the employability of the local workforce by encouraging employers to send their workers for skills upgrading and retraining. The aim is to equip the under-educated and lower-skilled workers with certifiable skills to enable them to remain employable in the future.

Of the 4,176 workers who have so far benefited from the programme, 70% have Secondary Two education or less. 46% of these workers are above the age of 40, with another 39% between the ages of 30 and 39.

Some 80% of the employees who have benefited from the Skills Redevelopment Programme are from the manufacturing sector, as this was the first to be adversely affected by the economic downturn. About 70% of the SRP participants are females, since there are more women in the manufacturing industry.

A requirement of the Skills Redevelopment Programme is that the courses offered must lead to national certification. This protects the worker and ensures recognition of skills by the employer. The types of courses offered include preparatory courses such as language and numeracy, Certificate of Competency, National Technical Certificates (NTC) levels 2 and 3, and other certificate courses offered by the polytechnics and the ITE. These skills are required by jobs in various sectors, including manufacturing and services.

The current estimate of benefits granted is about $16.7 million, or about $4,000 per worker. This is based on a funding mechanism that subsidises up to 80% of the course fees, and up to 70% of the worker's absentee payroll. The employer is asked to co-share the cost of the training, since he is the immediate beneficiary of a better-skilled worker.

Workers who have been or are about to be retrenched are, in fact, already a group that is being targeted for retraining under the SRP for employment in new and high growth areas. These include the wafer fabrication and process chemical industries. The NTUC and my Ministry are working with agencies such as the EDB, STB, TDB and PSB to get these industries to recruit the retrenched workers to meet their manpower needs. The SRP will provide such recruits with the necessary training for their new jobs.

Sir, the Ministry is also working with the Ministry of Trade and Industry, the NTUC and other economic agencies and industry bodies to expand the spectrum of certifiable courses under the SRP in areas relevant to the needs of each industry. We will provide a wider range of training to meet employers' needs.

Dr Lee Tsao Yuan (Nominated Member): Would the Minister elaborate on whether there has been an increased willingness on the part of workers to go for retraining in view of the economic uncertainty and downturn?

Dr Lee Boon Yang: When the SRP was launched in December 1996, as a pilot project, this was in fact one of the main concerns. Will our workers be sufficiently motivated and will they be sufficiently interested in taking advantage of the training opportunities offered under the SRP? The other concern was of course whether employers will support such a programme. As the economic crisis unfolds and as workers become more concerned and worried about job security, we found a matching increase in interest to undergo retraining and skills upgrading by the workers themselves. So we find that workers, particularly those who are low-skilled and with lower education, as can be seen from the figures that I gave earlier on, were very amenable to undergo retraining and skills upgrading courses. Fortunately, over the same period, we also found a greater interest on the part of employers to participate in these programmes because they would be able to minimise the need to retrench workers and, instead of laying off workers, they can send workers for skills upgrading or retraining under the SRP, and Government will come in and assist them with up to 70% grant on the absentee payroll. So it is a win-win situation for workers, employers and the Government too.