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Mr Speaker, thank you for allowing me to join the debate.
Indeed, workers and unions are concerned about
a. The rising cost of living.
b. The need to adapt to new ways of working.
c. But their primary concern has always been, “Can their wages and income keep up with rising costs of living? Would the increase in GST worsen the cost-of-living problems?”
d. The anxieties are real and lived but workers also keenly understand that higher costs are here to stay, and longer-term solutions are needed.
Important to invest in our workers for the long run to protect them against inflation
The time-tested solution is a three-pronged one. Firstly, timely assistance during exigencies. Two, sustainable wage growth in the long term and, Three, moderating costs of living. Allow me to take them in turn.
a. The labour movement is thankful for the October 2022’s $1.5 billion cost of living support
i. This was in addition to the $1.5 billion that was given out in June 2022
b. These short-term packages help to blunt the impact of sharp increases in costs during unprecedented inflation globally
c. We are also mindful that the Assurance Package will still be in place to support workers when GST kicks in next year. It was $6.6 billion, and it will be boosted to $8.0 billion. Workers are ensured that if inflation remains high, government will continue to support them.
d. My fellow labour MP, Ms Yeo Wan Ling will share how these packages have helped our lower-wage and self-employed workers to cope.
We cannot rely on special packages indefinitely. The lasting solution is we must keep wages growing ahead of inflation sustainably.
i. We appreciate that costs of doing business have increased.
ii. Singapore is a price-taker for virtually any items we import.
iii. We are price-takers for most of our factors of production.
b. Therefore, we must not lose sight in driving productivity
i. We need to ensure that there is continued investment in companies and workers so that our economy is vibrant and productive.
ii. Only when businesses do well, can our workers enjoy sustainable wage gains.
c. Training is essential to help our workers get those better jobs and better pay.
i. It is tempting to reduce training costs during such times.
ii. But these are longer-term investment in our workforce that will reap longer term benefits.
iii. We hope that the government will continue to fund and maintain the SkillsFuture movement.
d. We will also need businesses to rethink business models to capitalise on technology to increase productivity.
i. NTUC has embarked on the proliferating the set-up of Company Training Committees to foster and engender transformation at the firm level.
ii. This was done in partnership with the government.
iii. These 2,500 CTCs, by the end of 2025, will develop the Operation & Technology Roadmap programme (OTR) with companies.
iv. OTR can assist businesses to use innovation and technology to move up the value chain.
v. Workers can be more productive as a result.
vi. Particularly, I urge SMEs owners to consider participating in OTR Programmes. SMEs hire the bulk of our workforce and are instrumental in helping a large proportion of our workers to get better wages.
1. Eligible SMEs may apply for grants extended by Enterprise Singapore to offset up to 80% of OTR costs.
e. The government and the union stand ready to assist both workers and enterprises at every step of the way to boost productivity.
f. We are not merely idle observers of rising costs. We can determine our own fate.
Raising productivity is key but we must also make sure that gains are shared fairly and equitably
a. This is an important tenet of our social compact.
b. There are workers, especially lower wage ones, in sectors where market forces might work against them.
c. PWM has helped these workers to be paid better.
i. It will also help to keep wage disparity tighter. It has served both economic and social purposes.
ii. We have expanded to the Retail sector and workers will see around 8.5% wage increase.
iii. We will expand into Food Services and Waste Management next year.
iv. We will need to study expanding into other areas more rapidly to help our lower-wage workers.
d. The support from the government via the Progressive Wage Credit Scheme (PWCS) to help businesses cope with the increased cost of wages are vital in the interim.
i. Throughout the period of PWCS support, I hope businesses will use this interim period to devise new ways to attract local talent and increase productivity.
ii. Businesses should tap on grants to increase productivity. Examples of these grants, there are a lot of them that seek to increase job productivity include the Productivity Solutions Grant which offers up to 80% of support for the Food Services and Retail sectors.
iii. There is also the NTUC Company Training Committee Grant which provides funding support of up to 70% of qualifying costs for each project which aims to enhance business capabilities.
iv. I hope that the Tripartite partners will persist in the implementation when the easier path might be to delay them in the face of rising costs.
e. As for our vulnerable workers, such as mature workers, PWDs and ex- offenders, the Ministry of Manpower will be extending Jobs Growth Incentive (JGI) to March 2023.
i. I hope that employers will continue to tap on the JGI to hire our vulnerable workers, who are very qualified as well.
ii. Beyond the March 2023 horizon, I also call on the government to consider further extensions of the JGI if inflationary pressure has not eased by then.
iii. Additional support for PWDs in the form of the Enabling Employment Credit, which offers employers wage offsets of up to 30% for eligible Singaporean PWDs should continue to ensure sufficient employment support.
But we must at no point be under any delusion that Singapore is able to do all these without resources. We could do all these because
a. Firstly, there are investments to create new and better jobs
b. Two, we have the resources to invest in our workers and care for Singaporeans
c. This system has helped us grow our wages over the years. For example, real basic wages grew by 2.8% a year over the last 10 years1
d. The economic and geo-political imperatives to train and transform will be even greater as
i. Structural changes become deeper and more pervasive
ii. Economic conditions become more volatile
iii. Even more resources will be needed to help workers
We must keep faith in investing our workers for the long run to protect them against inflation
a. Similarly, we must reject short term solutions that harm longer term viability
b. Solutions such as consuming more of our NIRC now instead of investing them to meet future unpredictable challenges are very risky
c. More consumption today must also mean less to invest for future returns. This is inevitable.
d. Sustainable wage growth is still the best protection against long term inflation.
NTUC will do its part to help workers tide over challenging times
NTUC will do our part to help workers tide over challenging times.
a. The union has always stood ready to step up during times of need
b. In recent years, when the pandemic first hit in 2020, NTUC Enterprise rolled out a $50 million support package to help with the cost of living.
c. In 2021, they rolled out another $20 million support package to manage the cost of living and help stretch savings across different areas such as insurance, health care, education, and financial planning.
d. This year, NTUC also launched a $3.7 million NTUC Care Fund (Special assistance) Programme in August to help 28,000 lower-wage workers defray daily expenses and higher inflation.
e. These are all in addition to the support provided by the various unions.
NTUC and its Social Enterprises will continue to moderate the Costs of Living
a. It was a mission that we took on since the formation of the co-operatives in 19702.
b. Our social enterprises face the same cost pressures as any other businesses.
i. We face the same cost increase in logistics, manpower and goods
ii. We are in tradable sectors where there is the same competition for raw materials and manpower as any other commercial entities
c. But we will persist in our mission
i. NTUC FairPrice continues to benchmark prices and keep food and daily essentials available and affordable.
ii. It is constantly updating and enhancing its range of House Brands to offer better value and quality to meet the evolving needs of consumers in Singapore.
iii. For example, late last year, NTUC FairPrice brought down the cost of Antigen Rapid Test (ART) kits by half to relieve the financial burden on workers, including those rostered to go through routine rostered testing.
d. There is also the “Greater Value Everyday” campaign which consists of various discount and value schemes. For example, the Save Even More scheme sees groups such as the Pioneer and Merdeka Generations, our seniors, CHAS Blue card holders enjoying the same existing discount schemes from Monday to Friday.
e. Kopitiam and NTUC Foodfare launched a new initiative in May this year to help workers access cooked food and drinks at lower prices.
i. By the end of this year, 2.4 million NTUC Members and NTUC Link Members will be able to benefit from 10% savings when they use the NTUC FairPrice app for purchases at Kopitiam.
Ahead of the implementation of Goods & Services Tax (GST) increase in Singapore, NTUC FairPrice has announced that it will be offering a discount on 500 essential items for the first six months of 2023. This initiative will apply across all FairPrice supermarkets, including FairPrice Online.
a. This basket of 500 key essential items is selected based on items that customers purchase frequently and serves the top-of-mind needs of customers. They comprise national brands, house brands, fresh fruits, vegetables, meat, staples, dairy, paper products and household cleaners. Quite a lot.
b. The Union will continue to actively monitor the impact of inflation and will work in tandem with the government to enhance our efforts when required.
Conclusion
Mr. Speaker, the Bill aims to guard the fiscal health of our nation and care for Singaporeans in the longer run.
a. To combat the short-term impact of the GST increase, the Labour Movement is heartened that the Government has rolled out a comprehensive set of measures since the start of the year and will stand ready to help Singaporeans if things don’t get better.
b. And the Labour Movement will complement the Government’s effort to help Singaporeans cope.
c. NTUC, along with its Social Enterprises, will continue to ensure that our workers and families have accessible, affordable, and quality goods and services.
d. We believe that a longer term and more sustainable approach for our workers and businesses to cope with the rising cost of living is through boosting skills and capabilities.
e. We stand committed to work with the government to help workers stay relevant with training and help businesses do even better.
f. Mr. Speaker, I support the Bill.
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