Model ID: 44722d06-0584-4634-b9c5-b56eeb97b102
Sitecore Context Id: 44722d06-0584-4634-b9c5-b56eeb97b102;
Thank you for allowing me to join in the debate.
Introduction - Importance of Budget 2020 to secure the future of Singaporeans
Budget 2020 is empathetic and bold. Measures such as the Job Support Scheme and the Wage Credit Scheme will reassure workers that the government is helping to secure jobs. Amidst the immediate needs to mitigate against the adverse impact of Covid-19 outbreak, it is easy to lose sight of our longer-term imperatives. It is understandable as immediate survival is key. I will like to ask the Minister how do we continue to grow our economy and create good jobs for all Singaporeans even as we battle the outbreak? This outbreak has also highlighted the problems of being dependent on a large economy, of being interconnected with economies. Do we now need to re-examine our strategies and adjust course, rather than doing more of the same?
With its obvious focus on the Covid-19 economic fall-out, how are we still ensuring that we are funding our social strategies in education, healthcare and housing to ensure equal opportunities for all? It is critical that we need to stay true to what has made Singapore successful – equal opportunities for all Singaporeans.
Being a comprehensive Budget, it would almost be nit-picking to find gaps. I would like to spend some time on three other issues: 1) needs of the self-employed persons, 2) unmet needs of the younger workforce, and 3) the longer term workforce gender disparity issue.
Self-Employed Persons - Immediate and Longer Term Support
The Covid-19 outbreak highlights the precarious situation of Self-Employed Persons (SEPs). Many SEPs were and still are adversely affected – not only those in hospitality-related industries but also those in the creative, events, sporting, outdoor learning and transport industries. Budget 2020 will help SEPs as every Singaporean 21-year-old and above will get cash support, SkillsFuture Credit and targeted support for tourism-related industries.
But most of the Budget 2020 measures are channelled through companies, and our SEPs might not be helped. They also have limited medical and training support except those provided via SkillsFuture.
Those dependent on platforms such as Grab food delivery riders have an imbalance of bargaining powers. We often hear of adjustments to incentive structures unilaterally without consultation with the SEPs. This would probably not have happened or to a lesser extent, in a typical employer-employee structure.
The way forward is not one of absolute parity with traditional employees — SEPs do treasure the flexibility of contract work. Thus, there must be some trade-offs. It is one of having better balance of bargaining powers, especially for those working with larger entities such as the platform companies.
There are two possible approaches. One, to allow for greater union representation. And two, to classify SEPs, within a limited definition, especially the platform workers, as workers defined by the Employment Act. Both of these approaches are not without their limitations but it certainly betters the lot of the SEPs. Their ranks will certainly increase over time. I hope that the Ministry can also provide greater support for the SEPs in the second phase of Covid-19 support if ever one is needed.
Unmet Needs of the Younger Workforce
Our Young NTUC survey showed that younger Singaporeans are keen to develop themselves overseas. The Asia Ready Exposure Programme in Budget 2020 would greatly help our students to pick up those valuable experiences while still in school.
We also hope that young Singaporeans in their first or second career can also have such opportunities. Especially those in the early 20s, there is sufficient runway for an internship. However, the resources available to them are limited. Those Singaporeans who have graduated are dependent on their companies for overseas exposure. Can government provide a one stop center, and perhaps even subsidies for Younger Singaporeans to explore careers in Asia, especially South East Asia?
Gender Wage Gap
Next, let me discuss on the gender wage gap. It is not a common Budget debate topic. But first, it is an important issue and second, there are opportunities afforded from Covid-19 outbreak. MOM did a study not too long ago and found that women in Singapore are earning less than men today and that gap has grown slightly from 16 per cent in 2002 to 16.3 per cent in 2018. The adjusted gender pay gap was 6 per cent in 2018. The main adjustment was for occupational differences. Yet, it still runs counter to the principle that all things being equal, men and women must obtain the same pay if they are doing the same job with similar outcomes.
Women’s participation in the workforce
We acknowledge that there has been progress. And we also acknowledge that absolute gender parity in job outcomes is not necessarily a normative ideal. But there is immense value to pursue the economic outcomes of greater equality, besides addressing the social issues and the values that we engender as a nation.
Indeed, there are benefits to greater women participation at all levels. In an IMF Blog piece by Christine Lagarde and Johnathan Ostry on 28 November 2018, their conclusion was gender diversity matters. I quote, “Our analysis springs from the observation—supported by considerable microeconomic evidence—that women and men bring different skills and perspectives to the workplace, including different attitudes to risk and collaboration. Studies have also shown that the financial performance of firms improves with more gender-equal corporate boards…. our evidence—from macroeconomic, sectoral, and firm-level data—shows that women and men complement each other in the production process, creating an additional benefit from increasing women’s employment on growth.” Therefore the key benefits from narrowing gender wage gaps are: first, a bigger boost to growth; second, higher productivity; and third, a more equal and inclusive society.
Structural Issues
There are structural issues to tackle: first, Human Resources – and how we grade women who are out on maternity. A working mother would be entitled to up to 16 weeks of Government-Paid Maternity Leave. But oftentimes, in some organizations, they might be graded on the same 12 months as any other colleagues. This meant that from a work output perspective, the women on maternity are already at a disadvantage. Companies would argue that it would only be fair to the other colleagues who picked up the slack. But this also meant that good talent on maternity would not be given a level playing field to progress as progression are usually based on consistency of better graded performances. This has perhaps contributed to a lack of women in senior leadership positions over time.
Second, we see a persistent lack of women at the top leadership positions. Perhaps having a more diverse leadership might provide for better gender-neutral policies.
Third, some women decide to leave the workforce entirely because of a lack of supportive workplace measures such as flexible-work arrangements. Currently, only 47 per cent of firms in Singapore offer full-time flexible work arrangements, according to a McKinsey report.
Women are still often expected to take on the primary role at home. The responsibility of caregiving and housework also continue to disproportionately affect women, who find themselves taking on the double shift of working a job and taking on most of the household responsibilities.
This added burden of caregiving might have resulted in 83.4% of married men were employed in 2017 compared to 63.3% of married women in the same period of time.
What can be done?
Now what can be done: I would like to offer a few suggestions. First, women should be given the right to flexi-work arrangements (FWA) post-maternity. Normalising flexible working arrangement options gives a degree of comfort to working women, as it helps working caregivers avoid the conflict they face in trying to balance their careers with responsibilities at home – something especially accentuated post-maternity. It can be very difficult for a woman to ask for FWA if it is seen as a privilege and not a norm. Covid-19 outbreak has clearly shown that organizations can and are able to operate with broad FWA, even as we speak now. Previously, the argument was it was not possible.
Second, companies should grade women on maternity on an 8-months basis rather than on 12-months basis. Planning from the start meant that women will still be able to have more level promotion path after maternity.
Third, key leadership positions in our listed companies ought to be tracked and monitored to ensure that women are not being grossly under-represented. Company-wide reviews can be done consistently. Citigroup, for example has adjusted the pay in Singapore of women who earned less than their male peers for doing the same work. We all need to lean in to create an inclusive environment for women.
Conclusion
Budget 2020 is bold and comprehensive. It tackles the immediate challenges head-on without losing sight of the future transformation needs. Now, no budget is expected to address all issues, which is why we must also view each budget as part of a larger whole. It is a longer-term financial plan after all.
The Covid-19 episode requires significant shift of resources but it is necessary. Covid-19 will also eventually come to pass if we are united. And we must be ready when the upturn opportunities when that time comes. Notwithstanding my earlier suggestions, I support the Motion.
