Mr Speaker Sir,
Reflections on Singapore’s success; future challenges
As a nation, Singapore – despite its size, limited resources and dependence on the global economy – has done well. Many have called us an economic miracle. Since independence Singapore has sustained economic progress, social harmony and political stability. And in the last 15 years since the upheaval of the Asian economic crisis, we have weathered each subsequent storm to emerge stronger and more resolute.
But these achievements are not something we can take for granted. Our so called ‘miracles’ are won by the hard work and sacrifices of every Singaporean. And it is important that we not sit on our laurels because the challenges are far from over. There are continued challenges that we must face, brought on by a climate of rapid economic flux, social and demographic changes and global instability.
For one, economic cycles are getting shorter and shorter - happening once every three years. Compounding this is the uncertain global economic climate which inevitably affects our own. The debt crisis in Europe, declining US economy and potential bubble crash in China will all have a lasting impact on Singapore. This puts pressure on everyone as they struggle to keep pace with rising costs amid economic uncertainties. Internally, Singapore also faces challenges associated with declining birth rates an aging population, a limited labour pool and inflation. The anxiety over these global and local challenges is evident. The question is: can Singapore continue to continue to be an economic miracle and recover from crisis as we one did?
Growing concern among the young
Talking to my constituents and listening to them, I see that many are uncertain and concerned over what the future holds. This anxiety is not only felt by fresh graduates, young professionals and families - but also in the older generation, who wonder if their children will be able to enjoy the same economic successes as they once did.
I also get the sense that the younger generation also feel anxious about Singapore as a nation and want to play a part in shaping the country and its identity as it matures. More than just economic success, more Singaporeans are looking to find their place in society, contribute to it, and shape it. This is reflected in the number of non-government organisations, social enterprises and welfare groups who have contributed to the community, helped the less fortunate and even protect animal rights.
Continue Getting our fundamentals right
First of all, I think it is important for ensure that our fundamentals evolve and remain sound to ensure that all Singaporeans are able to enjoy opportunities and access to education, employment, a home and good health.
Education and Employment
One important area that sets the foundation for these is education. Singapore has one of the highest rates of education in the world. I am pleased that this year, our public universities took in 12,000 students - the largest cohort ever. I am also reassured that from next year, our public universities will extend another 2,000 places each year for Singaporeans. By 2015, university intake will be expanded to 14,000 each year. To help ensure all Singaporeans can afford their education in a public university, currently, the government subsidies about 70% of fees. I hope MOE could increase this subsidy to 80%.
Over and above formal education and book learning, it is good that our education policies have been enhanced to provide co-curricular activities, overseas trips and other educational and skills-based activities that help our students broaden their world view and build new skill sets. Moving forward, we must ensure that our graduates are future-ready, not just equipped with the right skills but more importantly right values for the working world.
Another area to look at is to ensure that our competitive edge in bilingualism remains strong. This has long been a unique strength in Singapore, but more and more, other Asian economies are becoming proficiently bilingual. To keep pace, we must strengthen our bilingual policy in our schools. MOE should ensure our education system places more emphasis on language proficiency of both English and mother tongue, and traditional values.
Our overall unemployment rates remain low at about 2 to 3%. And Singapore enjoys one of the highest employment rates in the world. About 77% of Singaporeans aged 25 to 64 were employed last year – a figure that far exceeds other similar Asian economies such as Hong Kong, Taiwan, South Korea and Japan.
We should also monitor and to be mindful of our youth unemployment rate too. In Q2 this year, 6.8% of Singaporeans aged under 30 were unemployed. This rate is very much lower than that of other developed countries, but we must ensure that it does not skyrocket. In Spain, unemployment among 16 to 29-year-olds is about 45%, causing discontent and anger in the country. The UK is also seeing record youth unemployment of about 20% among its 16 to 24-year-old youth.
Our education system and our employment policies and labour market must thus be equipped to produce a competitive future workforce and provide adequate employment for them.
One way may be to roll out more internships and apprenticeships. All things being equal, local companies have shared feedback that they prefer to hire local graduates, but not when a foreign candidate has more relevant experience. We must ensure our graduates have the competitive edge that ensures they remain employable in a competitive labour market.
Graduates are often caught in a Catch-22 situation where they are not hired due to lack of experience but cannot secure the jobs needed to gain that experience in the first place. We should extend and raise the awareness of SPRING Singapore's Management Associate Partnership (MAP) for fresh graduates, and the Enterprise Internship Programme (EIP) for undergraduates and polytechnic students. This is a good way to provide the experience needed.
Responsible Employers and Fair Labour Market
Employers have a big role to play in the growth of the nation – economically and socially. Not only must their hiring practices be fair and sound, they must also be accountable for the impact they make on society.
One are is to be fair employers that hire on merit. This means giving a fair and equitable chance to all potential jobseekers regardless of age, gender and physical impairment. To this end, the Manpower Ministry has enacted anti-discrimination regulations to ensure fair hiring practices. The new re-employment act also serves to ensure that mature-age Singaporeans have the choice to continue working if they choose to do so and in doing so give their workplace the benefit of their experience.
Increasingly, companies are becoming more aware of the concept of Corporate and Social Responsibility (CSR). This is a good thing. It is important that CSR is seen as an integral, not additional, part of business practices.
It is important that CSR is not just seen in terms of doing good outside the company, but internally as well. One overlooked area of being a socially responsible employer is in maintaining hiring policies that give a fair chance to Singaporeans.
To this end, the National Trades Union Congress (NTUC) and the Singapore National Employers Federation (SNEF) recently held a consultation session to collect feedback on how to ensure fair employment opportunities for Singaporeans. I am surprised and a little disappointed that employers have been resistant to more control measures to give Singaporeans more opportunities. As Singapore-based companies, it is important that a fair chance is given to locals as long as they have the right skills. I am heartened that the SNEF has emphasised that there should be more training and better job matching to better help both employers and local job seekers. But I urge employers to be socially responsible corporate citizens and rethink their hiring policies that favour foreigners. Companies must make reasonable efforts to hire Singaporeans and develop their workplace skills.
As for hiring foreign talent, employers must ensure that the intermediaries have ethical practices. This is the right and responsible thing to do. I propose that skills certification becomes a pre-requisite for work permit approval or renewal. MOM should enhance legislative protection for all employees and ensure employers are fair in recruiting workers and fair in sharing the profits with workers.
Providing Social Safety Nets; Protecting Our Social Capital
While we strive to achieve economic growth and maintain a strong, resilient and competitive labour market with a suitably skilled, flexible and innovative labour force, we must also look towards enhancing our social safety nets to ensure no one slips through the cracks.
I am heartened that President Tony Tan has emphasises the issue of reaching out to all Singaporeans, and in particular to make sure that the lower income, the elderly and those in need have the chance to life their lives to the fullest. And not just in the economic sense, but in all other areas as well – homes, income, education, social growth and personal development. To me family is one important social safety net. MCYS should facilitate family to support the elderly and provide greater support to family care givers and family of children with divorced parent.
One other important social safety net is ensuring healthcare insurance coverage for all. This becomes more important as our population ages and family sizes shrink. The enhancements and revisions to MediShield, MediSave, MediFund and portable medical benefits have been good and must be reviewed frequently so that they evolve in tandem to meet changing demands and rising costs. On top of the 3M framework, MOH should ensure all Singaporeans have sufficient insurance coverage for their medical needs.
Socially, we must be prepared to evolve with our changing demographics. An ageing population calls for more age-friendly amenities and policies to ensure ageing-in-place through adequate healthcare, social and physical infrastructure. A new immigrant population means our nation will be even more cosmopolitan and diverse, rich in ethnic and cultural diversity. We must strengthen our social bonds to continue our proud legacy of harmonious multiculturalism – an achievement we must not take for granted.
United Together To Achieve Inclusive Growth
Economic, population and social changes are inevitable. My heart goes out to the concerns and anxieties of Singaporeans who are worried about their future prospects. I empathise with the hardships and concerns, but it is important to not only empathise but act. We must not just amplify the concerns and resort to emotional arguments.
Instead, we must look to practical, sustainable solutions. It is encouraging that so many Singaporeans want to engage with issues of national and community importance. The President has highlighted in his address that the government will move towards opening up even more platforms for people to have their voiced heard. This must be undertaken in the spirit of good faith, that means, comments and constructive criticism should be given in an objective, informed manner that takes into considerations the context and limitations of Singapore’s existing policies. As the government reaches out to keep and open mind to the people, so must the people of Singapore.
Already, changes are being made to improve the things that need to be improved. Many of these solutions will take time to show results. In addressing our economic and social challenges, we must be careful not to react with populist measures that only solve a problem superficially.
The concerns are real and the challenges are many. I am confident that together, we can overcome these many challenges as long as we are united and worked together as one people one nation.
Together, we must ensure that all Singaporeans can enjoy the fruits of their labour and share in the progress and prosperity of the nation.
