Mr Speaker, Sir
Thank you for allowing me to join in the Budget debate
I welcome the measures announced by the Finance Minister to build an inclusive society and a stronger Singapore
Sir, I would like to propose three recommendations for the Finance Ministry’s consideration:
1) Intensify efforts to help more Singaporeans get a job
2) Quicken pace of our strategy to achieve a deep-skilled Singaporean workforce
3) Develop a self-reliant Singapore population
(1) Intensify efforts to help more Singaporeans get a job
Increase employment rate
I will like to see more segments of Singaporeans being able to find employment more quickly. Specifically older workers, back-to-work women and ex-offenders
Today, unemployment rate for Singaporeans is 3%
In many economies such as US and Europe, they struggle to bring down unemployment rates of 8-10%
Have we done well in comparison? On one hand, the answer is yes
On the other hand, while I am glad that the Finance Minister has announced plans to enhance the existing Special Employment Credits (SEC) scheme
I believe we can do more
Helping older workers stay employed
In an interview with Channel News Asia some weeks ago, I called for more to be done through the SEC scheme for older workers, back-to-work women, ex-offenders and those with disabilities. What the Finance Minister has announced was far beyond my expectations. It was an aggressive move and companies should take advantage of the new enhanced scheme
An aggressive enhanced SEC scheme
SEC scheme is now
- Expanded to include more older workers – those who are 50 years and above will be covered
- Quantum raised to cover older workers earning up to $4,000
- Duration extended till 2016
- Also extended to employers who hire Singaporeans who graduate from Special Education schools
I hope the Ministry can also consider extending similar help to back-to-work women and ex-offenders
a) Back-to-Work Women
Many women who stopped work to take care of their families, would like to go back to work. Employment rate for women of ages 25 – 54 years old rose from 71. 7% in 2010 to 73% last year. Apart from providing childcare support and flexi-work arrangements. We can do more to assist women return to the workforce
b) Ex-offenders
The second group of workers is ex-offenders
A recent report released by the Singapore Prison Service in Feb indicated that the number of inmates who secured jobs before release rose by 35%
This figure is encouraging
I find it heartening to see more employers creating job opportunities
Helping the ex-offenders re-integrate back into society more effectively
How can the Budget do more to help them?
I would like to propose that the same SEC scheme be extended to employers who hire back-to-work women or ex-offenders
- Companies will receive SEC, valid for up to one year if the new hires are back-to work women or ex- offenders
- scheme to cover those who are 50 years old and below
With this revision, we can tap on our latent pool of back-to-work women and ex offenders as well
(2) Quicken pace of our strategy to achieve a deep-skilled Singaporean workforce
Broad-based skills training targeted at all workers
Mr Speaker, Sir
During the last economic downturn, we had Skills Programme for Upgrading and Resilience (SPUR)
Not only were companies able to cut costs and save jobs. More importantly, workers were better trained
In this year’s Budget, Minister of Finance has continued to strongly support training
- SMEs who upgrade their workers for courses certified by WDA and academic
CET programmes will receive 90% course fee subsidy
- Absentee payroll cap increased from $4.50 to $7.50 per hour
- Self-employed individuals will also get to enjoy similar training benefits
Not enough Singaporeans to do specialised jobs
I will like to draw your attention to an article dated 3 February 2012 in MyPaper Titled "Not enough Singaporeans to fill specialised jobs"
Article noted that foreigners are favoured over Singaporeans for some jobs
Because our local workforce lack the skill sets and expertise needed in areas such as
environmental engineering, energy solutions, shipping and logistics etc
What does this imply?
- Does it mean that WDA’s programmes are not effective?
- Is it because we are not spending enough to train Singaporeans?
- Or is it that institutions for higher learning such as
ITEs/Polytechnics/Universities are not able to train our workers in these areas?
The answer is obviously no.
For example, I am heartened to hear that MOE will start the Singapore Industry Scholarship
To develop future Singaporean leaders with deep knowledge in various sectors such as engineering, energy and tourism
While I am happy that many undergraduates will stand to benefit from this initiative;
There are many more adults looking for a job or thinking of doing a career switch, who will need similar assistance to acquire deep skills
In addition, from what I observed on the ground
There are many companies who still regard manpower and training needs as an ‘afterthought’
Manpower and training needs not an “afterthought”
What do I mean by that?
Let me share an analogy in Chinese to illustrate my point
In English, it simply means:
- It might take one year to grow rice;
- It might take ten years to plant trees;
- But it will take a lifetime to invest in education and training of people
Mr Speaker, Sir
The 2012 Budget is a plan for the future
To help Singapore be stronger and more competitive
Suppose a company decides to invest in Singapore
This is a planned decision for the future
- Land has to be identified, infrastructure has to be built
- Material and machinery costs have to be calculated
- Manpower needs have to be considered
Such planning is not done in the midst of the construction
Everything is thought through even before a decision is made to invest here
Plan early to gear up workforce
Manpower and training needs should not be an “afterthought”
If we have known ahead that a company is investing in Singapore
And that time is needed to conduct specialised skills training
Companies should work with economic agencies, MOM, MOE, ITEs/Polytechnics, unions etc at early stage
MOE’s announcement to groom Singaporeans from young is one step in the right direction
But we need to go beyond the academic route
We will also need to be aggressive in our Continuing Education and Training (CET) route
- Understand manpower needs and skill sets required
- Develop course curriculum and train Singaporeans
- Give locals who are looking for a job or switching to another career the
opportunities to be trained to enter new trade
This way, we can gear up our local workforce to cater to the company’s needs ahead of
time
Planning ahead pays off
Let me share an example of how planning ahead pays off for a company
Rolls-Royce’s new facility at Aerospace Park was officially opened by Prime Minister Lee recently
I visited the place more than a year ago, even before their building is completed
The company had talks with e2i, NTUC, union, WDA to identify skill sets and type of
workers needed for their new facility
Together, we have placed over 80 Singaporeans till date on an apprenticeship scheme
to be Aerospace Technicians
Many are ITE graduates who now have access to:
- join a top-notch company
- enjoy good pay
- have good career prospects
- acquire specialised skills
Developing a Singaporean core
Through this, we are building a Singaporean core group, who will have the access to work in industries which offer good paying jobs
This behaviour is what all companies should adopt
More importantly, Government agencies overseeing different sectors should develop a comprehensive manpower strategy that involve all stakeholders
One that allows us to build our own future-ready workforce
Comprising a core pool of Singaporeans who are highly-skilled
(3) Develop a self-reliant Singapore population
Strong social safety net
Mr Speaker, Sir
My third point is on developing a self-reliant Singaporean population
I applaud the Government for the measures announced to enhance our existing social safety net
We have an even stronger support for the poor and low income families now
There is also a special focus to prevent a permanent underclass from forming
Through the education route to enhance the social mobility of children who come from low income families
Can we do more to encourage more of these families break out and stay out of the social safety net?
Incentive to do better
I received feedback on the ground from social workers and others
That the strength of our current social assistance may have some unintended consequences
Let me try to illustrate
Some low income families are concerned that if they earn higher income, and as a result exceed the income criteria for social assistance
They will therefore not be eligible for social assistance, and will lose out on a lot of
subsidies
As such, many may choose not to earn higher income, prefer to stay under the radar
This may result in a disincentive to exit from the support scheme
Some may lose the drive to do better and earn more
As they feel that their slight salary increment cannot make up for what they lose out in
subsidies
How can Government help
I welcome new initiatives announced by the Government:
i) Top up funds for our social safety nets (Edusave, ComCare etc)
ii) Enhance efforts to increase mobility of children from low income families
iii) Hire more social workers to help more needy families
I will like to suggest that the Government consider a complementary approach
May I propose that we reward those who upgraded their skills, worked hard, and improved their income
And successfully moved out from the social safety net?
Reward those who are determined to improve
Perhaps we can consider two options to incentivise them to do better
i) Hand out the same amount of subsidies they were receiving previously for another year
ii) Alternatively, we can consider giving them a lump sum incentive
This is for those who were previously receiving social assistance, but are now earning a
higher income which exceeds the income criteria for continued social assistance
This will send a clear message that the Government wants to develop a self-reliant population whereby individuals will be encouraged to continue to work hard to improve their lives, and their family’s lives
Conclusion
Mr Speaker, Sir
It is important that we:
1) Intensify efforts to help more Singaporeans get a job – so that more segments of Singaporeans who wish to work can do so quickly
2) Quicken pace of our strategy to achieve a deep-skilled Singaporean
workforce – so that we have a Singaporean core team to spearhead competitiveness in different sectors
3) Encourage Singaporeans to stay motivated and continuously strive for
improvement – so that we can develop a self-reliant Singapore population
Sir, with that, I support the Budget
