Mr Speaker, Sir, listening earlier to PM's statement, I am now more convinced that the changes to the CPF scheme are inevitable. This move will further enhance our labour market flexibility and thus help save jobs and sustain economic growth. I am happy that the Government has struck a good balance with structural changes in the long term and softer impact on workers. We are reassured by PM that most Singaporeans would be able to cope with the changes made to the CPF. And the fundamental objectives of financial security in retirement and home ownership would not be compromised with the proposed changes.
Sir, I am sure that workers will applaud the Government's decision to take a gradual approach in implementing these changes. This is most welcomed as it helps workers to adapt to the changes and retuning of the CPF scheme. I am also pleased that the Government has also shown consideration with the implementation of changes made on the withdrawal age of 55.Those who are now 51 years old need not have to worry that their plans after 55 years old will be affected.
I hope employers will respond positively to PM's call to plough back the savings, particularly for those companies which are doing well, to workers in the form of variable payment.
Sir, the CPF changes this round would be most drastic. The changes will affect various groups differently. Based on the feedback I received from the union leaders, the main concerns across the entire workforce are that the cost of living is high and their commitment on housing will be affected. It is a very difficult transition for many people, a large part of it is emotional. Most people would require more time and more help to face this hard reality.
Union leaders, in general, agree that the CPF reform is necessary at this point of time. But they hope more could be done to help those who face difficulties.
In view of this, as we acknowledge the urgency to restructure our economy and reform wages and retune CPF, we also need a thorough review and reform in the way we address the social needs of the workers. The Government needs to commit and take concrete efforts in refining the social safety net as well.
Grassroots and union leaders agree that wages are high. However, they feel that the cost of living is also too high and thus it would be difficult to make adjustments to the wages. Whilst workers are prepared to accept restructuring and CPF reform, what they have heard from the Government is: be prepared to pay more, particularly in areas such as public transport and healthcare. I am pleased that The Acting Minister of Health has recently announced that MOH will take steps to address the issue of medical cost. But there is still a strong perception that the government had not done enough to bring the other costs component down.
Take public transport as one example. The bus companies have to pay for the costs of maintaining the bus interchanges and terminals. But the advertising and rental revenue from these areas goes back to LTA. The public does not understand why this revenue cannot go directly to the operator to help defray part of the costs so as to bring public transport costs down.
Today, the economic landscape is very much different from that of the 1990s. It is therefore timely for the Government to really consider doing another review to look into the cost of living again and the areas of key concern, such as health, education, transport and housing. More importantly, to seriously review government policies, for example, rules and requirements, that have an impact on or are likely to become cost-driving factors to our cost of living.
Sir, the changes to the CPF will also affect many Singaporeans who have.already made commitments on housing. We have to have something more concrete to help them. As the Government announces changes to the CPF system, some union leaders have also asked whether we can also make it easier for those who are affected by the economic situation to downgrade to smaller HDB flats. The lower income workers need more help in such a difficult time.
Members of the business community should do more, and we think they can contribute to and supplement the Government's efforts to help the needy. For example, NTUC FairPrice has given $1 million worth of vouchers to the Advisors of all the CCCs and grassroots organisations to reach out to their residents and help the needy.
In 1999, the public transport operators gave a 5% rebate to the commuters. This time round, I would like to urge the public transport operators to consider sharing the savings from the CPF cut with families which are facing difficulties, especially those with school-going children, in the form of vouchers or rebates, either through the unions or grassroots organisations, for them to purchase their monthly tickets. Such CPF savings should not go to the shareholders.
Sir, moving ahead, union leaders can play a part by advocating our workers to face the challenges, adapt to changes, and to opt for simplicity and affordability. The Government can further help by sending a strong signal that it cares. Our workforce is the world's No. 1 workforce. Thus, I am very confident that, together, Singapore and Singaporeans will make this transition and get through this difficult period to a better life.
