Mr Lim Boon Heng, Secretary General, NTUC
Ladies and Gentlemen
Introduction
On 18 May, last Sunday, many Singaporeans had thought that we would be taken off the WHO list of SARS affected areas. Unfortunately, our hopes had to be adjusted as we discover a new probable SARS case. This is a good reminder that we must not lower our vigilance or slacken our efforts to fight SARS.
But our efforts are not unnoticed. Canada and Australia have joined the US in taking Singapore off their travel advisory list. These are important votes of confidence in our SARS control measures. It is a result of the joint effort by the Government and the people to keep SARS under control. With these positive endorsements, we hope that tourists will progressively return to Singapore, and help revive the SARS affected businesses.
Response to SARs in the Taxi Industry
In the meantime, we still need to weather the downturn. The taxi industry SARS task force has played a crucial role in helping the industry tackle the impact of SARS. It was set up by the Taxi Operators' Association and the taxi companies immediately after the outbreak of SARS. It implemented the SARS relief scheme for taxi operators and translated the Government's SARS relief package, which included a $2,000 reduction in diesel tax and a waiver of the $25 taxi operator licence fee, into money in the pocket for taxi drivers.
The task force also set up fever checkpoints for taxi operators to restore public confidence in taxi service, as well as to help fight the spread of SARS. After the launch, the number of taxi operators who voluntarily went to these checkpoints to have their temperatures checked trebled from 5,000 to 19,000 in less than a week. I commend the task force for their proactive response to the SARS situation.
One of the key factors of success for the taskforce was the support they received from the community. Many companies have contributed generously to the taskforce. I would also like to thank all of them for their support.
Savings for Economic Security
In early April, just after the SARS outbreak, Comfort reported that average daily phone bookings had fallen from pre-SARS level of 28,000 to 15,000 and that taxi operators' average daily take-home earnings had dropped from an average of $65 to $46 - a huge 30% reduction. This greatly affects those operators who rely on their daily earnings to support their families or pay their mortgages.
We are seeing some initial signs of business turning for the better. In the first week of May, it was reported that average take home pay has gone up slightly from $46 to $56 a day. But daily bookings remain low. The business is still some way before returning to normalcy. But I hope it will continue to improve, as the Government and the people continue to work together to put a tight lid on the SARS situation.
The SARS crisis has highlighted the importance of being prepared for difficult times. We must all build up our individual reserves, not only to prepare ourselves for rainy days, but also to help us save for our retirement. Most Singaporeans have built up nest eggs in their CPF accounts. But for those who are self-employed, contributions to the CPF accounts are not mandatory. This group will have greater personal responsibility in planning for unforeseen circumstances and their own retirement. Some of them still do not have savings, or have insufficient savings, but it is never too late to start building it up.
It is especially important for taxi operators to save, because driving a taxi is an unpredictable business. It is highly dependent on the state of the economy and the volume of tourists coming to Singapore. The mode of operations can also change drastically because of new government policies or new technology, such as the introduction of Electronic Road Pricing, or using satellite tracking system for phone bookings.
The NTUC Thrift & Loan Cooperative Ltd and the Taxi Operators' Associations have therefore jointly set up the Taxi Operators' Saving Scheme. The taxi companies and many well-wishers have provided generous financial support for this programme. As a gesture of support, they have agreed to provide matching contributions, for the next three years, into each savings account.
I urge all taxi operators to sign up for the scheme as soon as possible, and not only that, maintain and grow the scheme in the years to come, so as to better provide for your and your children's future. On that note, I am happy to launch the Taxi Operators' Saving Scheme.
