Model ID: 98d55e13-17d4-40ce-827a-4b198a9b7b24
Sitecore Context Id: 98d55e13-17d4-40ce-827a-4b198a9b7b24;
Mr Speaker, Budget 2020, as announced by Minister for Finance, DPM Heng Swee Keat, is both responsive and forward-thinking, amid the ongoing COVID-19 outbreak and a slowing economy.
The Budget reflects the values and priorities of our citizens and charts the direction to deploy our limited financial resources to meet our nation's goals and objectives.
A Substantial budget amount has been put aside for Health, Education and measures that address climate change. Rightly so and I welcome these moves.
DPM spoke on another critical aspect of the Budget that is of importance to the workers of Singapore. That is on transforming our industries and workforce.
Transforming industries and workforce
Let me pause here to declare my interest as a Unionist and a representative of the labour movement in Singapore.
Singapore went through a major industrial transformation in the '70s and the government of the day then stepped up training of the workforce to handle new jobs that came into Singapore.
Fifty years have gone by, and we now at the Crossroad of change. Our economy, while fundamentally strong, has slowed down tremendously with and overall growth of just 0.7% in 2019.
With global trade slowdown and growing uncertainties, the Ministry for Trade and Industry has downgraded Singapore's GDP to be around negative 0.5% to positive 1.5% for 2020.
To deal with the immediate challenge, the proposed Stabilising and Support package under Budget 2020 will help enterprises with wage cost and cash flow pressures as they grapple with the current problem.
At the same time, it will also help our workers to stay in their jobs and to go for skills upgrading.
I applaud the Job Support Scheme, which aims to ensure that our workers stay employed by supporting companies defray their wage cost. It will offset 8% of a Singaporean worker's wage, capped at $3600. It is estimated to benefit 1.9 million workers.
But, may I seek clarification from the Minister the reasons for the short duration of the support? What happens, God forbid if COVID-19 outbreak stays around longer? Also, companies do need time to adjust even after COVID-19 is over. Will the government consider extending the support? How do we ensure that the companies that benefited from these subsidies will not let go of their workers after the support ends?
Yesterday, the Ministry of Manpower announced the introduction of a temporary Scheme to help the manufacturing and service sectors manage their manpower needs. MOM will allow businesses in these sectors with excess foreign workforce, to transfer their workers to companies with manpower shortage. On that note, can the government consider reducing foreign workers levies for firms affected by COVID-19, similar to what was in place during the 2003 SARS period?
Under the Transformation and Growth Strategy, there are three key thrusts, of which Developing our people is one. This thrust aims to enable our citizens to get better jobs, better wages and to stay employable.
The new SkillsFuture Enterprise credit and the SkillsFuture Mid-Career support package aims to do that. It is a welcome move, as both companies and workers benefits. It will encourage the companies to send their workers for training and skills upgrading, and at the same time, the workers will benefit in terms of their employability.
In many sectors, a portion of workers' monthly pay comprises of variables such as operational incentives, overtime or shift allowances. Workers will have to forego these variable payments to attend training to undertake new or additional roles. In some cases, these variables can be as high as 1/3 of their monthly gross pay if not more.
The Labour movement calls on employers to share the productivity gains fairly and to recognise workers who support company transformation through skills upgrading, at the expense of undertaking short term pay reduction.
This gesture will strengthen the trust between employers and their workers while ensuring the workforce is well- equipped and future-ready.
Taking care of older workers
At the last National day Rally, PM announced raising the retirement age to 65 and Reemployment age to 70, in phases by the end of the decade.
The labour movement had since then called on companies to move forward the implementation date before the law comes into place. Unfortunately, many are reluctant, citing cost as a significant factor.
I am happy to hear of the introduction of the Senior Worker Support Package. The labour movement hopes there is less of an excuse now but to move forward to our call.
The Senior Employment Credit and the Senior Workers Early Adopter Grant, together with the CPF Transition Offset will help companies manage the overall wage cost. I urge employers to not view these senior workers as cost burden but as valuable assets with tacit knowledge, as these senior employees will be the ones, guiding and grooming the next generation of our workforce with their vast experience.
On that note, there are some groups of senior employees that the companies are reluctant to extend their retirement age. They are the general administrative staff who are deemed easily replaceable with younger employees due to lower-wage cost and employees in specific roles where physical fitness is a requirement.
Technologies such as robotic process automation or commonly known as RPA executes repetitive business processes cheaper, faster and without human errors. As such technologies become more pervasive in workplaces, office -base generalist staff become vulnerable and face more reduced opportunities for reemployment when they retire.
Labour Movement calls on employers to intervene early through career planning customised to individual employee's needs and profiles. The companies can consider reskilling them in the '40s to achieve better job security and job progression when they retire and seek reemployment in the company.
An example of a forward-thinking company is PSA. It has embarked on upskilling and reskilling its employees through job redesign. The more matured workers are given similar opportunities and encouraged to upgrade their skills so that they continue to contribute productively with the new technologies adopted.
PSA is also taking active steps in encouraging older workers to reskill and upskill. For example, PSA currently offers alternative employment for personnel from the Emergency Response Team upon retirement at 55 years old. Working with the union, PSA is encouraging the ER personnel to transit earlier in their 40s, so that they have a longer runway in a new career path while they are in a better position to make the transition.
These reskilling reframes one's mindset and gets them prepared for the change, and it takes two hands to clap. While employers do their part, employees themselves need to embrace the culture of continuous upskilling and reskilling.
Conclusion
In conclusion Mr Speaker, in his budget speech, DPM spoke on the importance of the short term measures to deal with the immediate challenges of the COVID - 19 outbreak and to weather the near term economic uncertainties while planning for long term on growing our economy and creating opportunities for our people. Budget 2020 addresses these.
DPM's calls resonate with the labour movement. The time is now, to take action and walk the talk. Our call is the government's call! 'Every Worker matters'.
I move in support of the Budget.
Thank You
