1. One week ago, at the National Day Dinner organised by the Bukit Batok East grassroots organisations, I mentioned that for our future, we need to do three things: remake our economy so as to provide enough jobs for Singaporeans; remake the city so that it is lively and interesting; and review the social compact.
2. We are remaking the economy. It is a constant effort.
3. In manufacturing, we have moved up the knowledge ladder. Whereas in the past, companies such as Philips and Hewlett Packard set up production lines employing thousands of assembly line workers, today they do product development employing thousands of design engineers. They employ few production workers, and they are engaged in prototype production. We have developed the chemical industries which provide jobs for process technicians. We have embarked on more research and development activities, opening up jobs for university graduates.
4. In the services sector, we have developed financial services, logistics and tourism. The tourism sector will make a major leap with the development of integrated resorts.
5. In the domestic services sector, we have re-designed some jobs. The aim is to raise productivity, so that workers can be paid more, so that such jobs will not be shunned. We are making good progress on this front. It is necessary, because the production workers who lost their jobs in the restructuring of the economy need new jobs.
6. Providing jobs for Singaporeans is the first priority in any social compact. In the past, it was easier, because our cost structure was low, and suitable for many labour-intensive activities that require low skills. Today, our high cost structure is suitable for knowledge-intensive activities. Therefore, it is necessary for us to re-create jobs, especially in the domestic services sector, for Singaporeans with lower education and lower skills.
7. In the cleaning sector, it has been possible to raise productivity through job re-design, and to pay workers 50% more. But in public transport, we cannot raise productivity by so much. So, we have restructured the wage system, paying more for new-hires.
8. Beyond jobs, the social compact includes housing, education and healthcare.
9. Singaporeans have moved into quality housing because of the HDB, and HDB flats have been subsidised. Today, the vast majority of Singaporeans have substantial assets in the homes they own.
10. Education is provided to all children, so that they can get the best education they are capable of. Some people do complain about the cost of tertiary education. They do not like students taking loans. But we must understand that in most developed countries, students take loans and pay the loans when they start working. I was recently in Canada. Students there may even take a year off to work, in order to accumulate some money to meet their university expenses. And they work while they study, to pay their way. In Singapore, some students work also, as tuition teachers or waiters or waitresses at banquets.
11. For medical care, we have Medisave, Medishield and Medifund. Hospital charges are structured so that those with lower income are subsidised more.
12. So what do we need to do in a review of our social compact?
13. Firstly, enable Singaporeans to work and earn a living. It means helping them upgrade their skills. It means breaking down ignorance and prejudice, so that everyone, regardless of race or religion, is given a chance based on merit. Employers must play their part. We have a harmonious society for them to do business and make money because we have nurtured inter-racial and inter-religious understanding. Employers should not wreck these efforts through thoughtless discrimination.
14. Secondly, we must enable low-skilled Singaporeans to own their own homes, even as prices of HDB flats move towards the market price. The principle of affordability should be maintained.
15. Thirdly, as we live longer, we should enable people to work longer. It is said that Singaporeans are asset-rich but cash-poor. They have a roof over their heads, but not enough money to spend. The way forward is continued employment.
16. I have said that we need to forge a national consensus on providing jobs for older workers. This means employers re-looking at the way work is done, so that older workers can be productively engaged. It means employees adopting a flexible approach towards pay and working patterns. It means the community at large accepting being served by older workers.
17. I am happy that public discourse on this subject has resulted in greater understanding of the various issues. I am confident therefore, that the future is bright for all Singaporeans.
I wish everyone a Happy National Day!
