By Ryan Chan
The second phase of the IGP is kicking into gear to target more companies to enhance their operations by driving productivity and to train workers to increase efficiency.
Administered by NTUC’s e2i (Employment and Employability Institute), the IGP saw its first run end recently in December 2015. NTUC Secretary-General Chan Chun Sing then announced the extension to the programme at the May Day Rally this year.
What is IGP?
The IGP gives companies up to 50 per cent funding for automation, equipment, process re-engineering and training costs to raise productivity, with any gains to be passed along to workers through wage increases.
The first run was a success, with more than 2,400 projects, 69 per cent of which came from small and medium-sized enterprises (SMEs).
e2i CEO Gilbert Tan said that the IGP has helped raised productivity and wages for more than 100,000 workers. Low-wage workers also benefitted from an average wage increase of 18 per cent.
“Given that it remains the only programme that ties productivity with wages, the Government has approved for IGP to continue, with up to $100 million to support productivity projects which target to benefit 100,000 more workers,” he added.
IGP in Numbers
Workers impacted: 100,116
2,400 IGP projects across 30 sectors
Wage increment: average of 18%
Top 5 sectors based on number of projects:
1. Cleaning
2. Security
3. Landscape
4. Food and beverage (F&B)
5. General manufacturing
For more information, visit e2i.com.sg/IGP. To apply for the Inclusive Growth Programme, email igp@e2i.com.sg.
Case Study: Modernisation Mooncake Making
One company that has successfully tapped on IGP is Chinatown Tai Chong Kok Confectionery Hue Kee, a name synonymous with traditional homemade mooncakes.
These were the challenges they faced:
- Food packaging and sealing was done manually, resulting in inconsistency, which led to packaging and food wastage.
- All utensils were hand-washed, which was time-consuming.
- Peak periods like the Mooncake Festival meant a higher output per worker was required.
By tapping on IGP in June 2015, the confectionery received funding to purchase equipment that increased productivity and allowed workers to be redeployed to other tasks. They now have a:
- Form-fill seal machine and vacuum packaging machine that raise the rate of packing per hour. Packaging is more consistent and there is less packaging and food wastage.
- Utensil washer for more to be washed at the same time. This allows workers to be deployed to wherever help is needed.
- Gram freezer that allows for storage of large quantities of frozen dough, especially useful during peak periods.
Along with the above machines, the confectionery also purchased nine other equipment such as a blast chiller, pastry sheeter, gas steamer and deep fat fryer. These have contributed to easier food preparation and increased storage capacity, lowering the restocking frequency as a result.
Among the companies that have tapped on IGP, Chinatown Tai Chong Kok Confectionery Hue Kee gave the highest wage increase to its workers. Its two part-time staff received a 12 per cent increase in wages, while their full-time counterparts received a 20 per cent raise.
Source: NTUC This Week
