Committee of Supply – Head S (Ministry of Manpower)

Review Employment Act and Employment Claims Act

Mr Patrick Tay Teck Guan (West Coast): Mr Chairman, I beg to move, "That the total sum to be allocated for Head S of the Estimates be reduced by $100".

The workforce profile in Singapore is changing rapidly. Today, 54% of our resident workforce are professionals, managers, executives and technicians (PMETs) and 34% are professionals, managers and executives (PMEs).

There have been many PMEs approaching the Labour Movement for help via our various workplace advisory platforms with a variety of issues from unfair dismissals to breaches of provisions in the Employment Act (EA). However, PMEs with a monthly basic salary of more than $4,500 are not covered under the Act.

Since April 2017, we have the new Employment Claims Tribunal (ECT) as well as the Tripartite Alliance for Disputes Management (TADM) to assist PMEs to a speedier resolution of their disputes. The Employment Claims Tribunal, which came into force on 1 April 2017, has already done away with a salary cap for salary-related claims by employees but the ECT is limited to salary-related claims, both contractually and statutorily.

The median gross monthly salaries of workers stand at $4,056 in 2016. For PMETs, the gross monthly salaries for P-50 – or at the 50th percentile – for residents stand at $5,910 as at June 2016.

Our Labour Movement has also been challenged with difficult questions concerning various parts of the EA the past few years as it also affects our unions and union members amidst a backdrop of a higher number of layoffs in 2016, unfair dismissals, mergers, acquisitions, outsourcing, volatility and interesting new vehicles involving the sale and transfer of companies/staff.

Based on cases our Labour Movement has encountered in the past few years, a changing workforce profile, upward movements of median wages as well as a stronger impetus to ensure our employment laws stay relevant, I hope to see three things. First, expansion of the scope of EA to cover PMEs beyond the current $4,500 limit; second, extension of the Part IV protection to cover non-workmen beyond the current $2,500 limit; and third, enhancements to the existing dispute resolution framework.

First, expansion. Despite the last round of EA amendments in April 2014, we have still been receiving feedback/queries from PMEs through various channels, such as through our unions/union leaders, TADM, my Meet-the-People sessions (MPS), our U PME Centres, our National Trades Union Congress (NTUC) LawWorks Legal Clinics, as well as through my social media platforms such as LinkedIn and Facebook, from aggrieved PMEs whom we were unable to assist as they earned more than $4,500 per month.

Despite the amendments to the Industrial Relations Act (IRA) in April 2015 to allow collective representation of PMEs by all unions, in some of our unionised companies, management have occasionally attempted to use this "$4,500 limit” in the EA as a proxy to suggest that the union cannot expand its scope of representation beyond those earning more than this sum. Fortunately, such cases are not aplenty. With rising median wages, including that of PMEs, and PMEs gradually forming the majority of the workforce, there is a need to review this $4,500 cap to ensure the EA serves the majority of the working population.

While the intent of the cap is to strike a balance between the rights of employees and to allow companies to manage their labour obligations and costs, the changing profile of our workforce requires a regular review of the scope of coverage of EA to ensure that these policy tensions are adequately balanced. In fact, whether there is a need to have this "PME versus Rank and File" dichotomy is something we need to review whether now or in the near future. I submit, therefore, we should remove this $4,500 salary cap completely so that all employees in Singapore can enjoy the basic protection under EA.

Second, extension. Part IV of the EA is important as it involves the "hours of work" and determines the scope of those who are entitled to overtime payments. The two current categories of workers entitled to overtime payments are, first, employees who are not a workman but who is covered under the EA and earns a monthly basic salary of not more than $2,500; and second, a workman earning a basic monthly salary of not more than $4,500.

To keep pace with wage movements, I submit there is a need to review both the $2,500 and $4,500 limits accordingly and raise it to keep pace with rising median wages.

Moving ahead, I also see a need to address whether the dichotomy between "workman" and "non-workman" is still tenable and whether it is also appropriate to consider extending the scope of Part IV to PMEs. This may well be needed as the dichotomy between "Rank and File" and "PME" workers becomes increasingly blurred. But it will require a closer and deeper examination as it will have a significant impact to both workers and employers.

Third, enhancement. As shared earlier, PMEs earning above $4,500 are not protected by provisions in the EA, such as section 14 on wrongful/unfair dismissals. By the same token, the ECT does not have jurisdiction to hear wrongful/unfair dismissal cases under EA. Currently, union members in unionised companies can file a case to the Manpower Minister for such unfair/wrongful dismissal cases. However, as we see more cases of workers, especially PMEs, facing such unfair/wrongful dismissals, it is also imperative that the Employment Claims Act be reviewed and the ECT’s jurisdiction be expanded to cover unfair/wrongful dismissal cases over and above the current salary-related claims.

Another area for enhancement and greater clarity would be the very technical and highly moot provision of section 18A of EA. In it, an employer has the right to transfer an employee to another employer if the organisation is being restructured. Section 18A allows for the transfer of employees to a new entity. I suggest we should consider amending section 18A to provide greater clarity. The other alternative would be to issue tripartite guidelines or an explicit articulation on what transfers or transactions fall within or outside of section 18A. This is one area that has constantly been tested and challenged, and greater clarity would be a boon for unions, employers and legal counsel. Mr Chairman, in Mandarin.

Workforce Restructuring an Productivity

(In Mandarin): [Please refer to Vernacular Speech.] Many PMEs have approached us for help. They face a lot of work-related problems, including unfair dismissal and also disputes related to EA. However, as some of these workers' monthly salary is more than $4,500, we are, therefore, unable to assist them.

In the past few years, the median income has been on the rise, and it applies to PMEs as well. The proportion of PMEs in our workforce has also been increasing.

To meet the needs of the future workforce and the requirements of jobs and workplaces in the future, I suggest we amend the EA in the following three areas.

First of all, we should remove the salary ceiling to cover all workers, including PMEs with monthly salary exceeding $4,500, so that they will all be protected under EA.

Second, with the rise in median salary, the monthly salary cap of non-manual workers covered under Part 4 of the EA should also increase.

Third, the current dispute mediation framework should also be enhanced, for example, to allow the ECT to handle unfair dismissal cases.

(In English): In summary, these three areas are important areas for review to ensure the EA stays relevant and serves the needs of the future workforce, the future of work and the future of workplaces. However, we must bear in mind that the amendments should not compromise the need to preserve effective collective bargaining and bring more workers within the tripartite relationship. We look forward to work with our unions/union leaders and our tripartite partners closely in the process of review and look forward to positive changes to the labour laws in this direction to better protect workers in Singapore.

Question proposed.

Protecting PMEs under the Employment Act

Dr Intan Azura Mokhtar (Ang Mo Kio): Mr Chairman, currently, PMEs who earn a basic salary of $4,500 or more are not protected under the EA. According to recent employment data, the median gross salary of resident employees is about $4,050 a month. This means that just under half of our resident employees would easily fall under the category of PMEs earning at least $4,500 a month. Yet, they are not protected under our EA.

It is time that our EA be reviewed to ensure more of our workers are protected under it, particularly when retrenchments or employment disputes arise. It would be good to increase the salary cap as there are more Singaporeans and resident employees who are now earning $4,500 a month and where we now also see more PMEs among Singaporeans. Better still, remove the salary cap altogether so that all Singaporean employees, PMEs or otherwise, are protected under the EA.

Supporting Contract Workers

Assoc Prof Daniel Goh Pei Siong (Non-Constituency Member): Mr Chairman, Sir, term contract workers make up 10% of our resident workforce. Last year, the Tripartite Standard on Employment of Term Contract Employees was launched. It is a good first step in ensuring better protection of contract workers. When I asked the Parliamentary Question (PQ) on the compliance mechanisms for the Standard in October last year, Minister Josephine Teo said that in two months, 400 employers, accounting for more than 28,000, or 17%, of all resident term contract workers, have adopted the Standard. Could the Minister give an update on how many contract workers are now covered under the Standard?

I have two points to make. First, on compliance. In her reply, Minister Teo said that the Standard relies on self-assessment by companies and engagements with employers based on complaints from employees. I would like to ask the Minister, in the past six months since the Standard was established, how many complaints have been received and what are the outcomes of the engagements?

I understand the Ministry's position to calibrate the compliance to give employers the incentive to adopt the Standard. But there is also the need for the Ministry to do occasional audits to make sure that the Standard is meaningful for contract workers. I believe many public agencies are hiring term contract workers and they should have adopted the Standard. I would like to suggest that the Ministry audit the agencies and survey the contract workers to find out whether the Standard is working and where the gaps are.

Second, on the coverage of protection. Currently, the Standard covers prorated leave benefits, adequate training and the notice period for early termination or non-renewal. The notice period is the same as the notice period for retrenchment of permanent employees. But what is missing in the Standard for Term Contract Workers is the recommendation of retrenchment benefits. Without this recommendation in the Standard, term contracts remain a risk of being the route for employers to avoid the moral and regulatory pressure of retrenching employees responsibly and fairly.

Protect Vulnerable Employees

Ms Kuik Shiao-Yin (Nominated Member): There are three groups of vulnerable employees I will cover in this cut: women, foreign domestic workers (FDWs) and people with disabilities.

First, women. In November 2017, The Straits Times interviewed a 28-year-old female lawyer whose former boss repeatedly harassed her. After she rejected him again and again, her boss shifted her work away from legal work to menial tasks. And though she reported her situation to all the appropriate levels of power, she was met with cultural roadblocks: a female senior colleague who told her to stay silent, a founding partner of the firm who brushed it off as "such things happen when you are a pretty girl", and a human resource (HR) department which advised her "not to make a fuss".

After a year of feeling trapped, she confessed her story to her father – who was also a lawyer – who insisted that she make a Police report. Scared for her future career prospects, she chose to inform the firm of her intentions to go to the Police. The firm finally dealt with the matter by getting her to sign a non-disclosure agreement prohibiting her from reporting the matter to the Police. In exchange, she received a year’s salary and had to leave the firm immediately. The article said nothing further about the boss. So, for all we know, he is still out there harassing his employees.

The female lawyer told the reporter, "I am not someone who doesn't speak her mind. But when I spoke up, I was told I'm a liar and I made things up. I hope that more people don't have to feel all alone and they can find some support."

What is troubling about this story to me is that if a relatively well-resourced and legally trained employee with the support of a well-resourced and legally trained parent felt that helpless in the situation, how much more difficult would it be for an employee with less power and resources to seek help?

Can the Ministry consider two ways of enhancing protection of women from workplace harassment? First, the Tripartite Advisory to Manage Workplace Harassment is useful but there is no awareness about who is actually meeting those guidelines. Can the Ministry consider having a public register that actually tracks which companies are adopting the measures suggested in the Advisory?

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Second, because it is usually too complicated, expensive and ultimately pretty awkward to get a Court order against a colleague or boss, most victims do not bother with getting a protection order. Some victims also rather not immediately escalate their situation to the Police because they are uncertain about the impact on their personal safety and professional reputation.

Harassment victims could benefit from having a safe and trusted third party with institutional authority to help them deal with their situation. Currently, the Tripartite Guidelines on Fair Employment Practices (TGFEP) is an educational body and the Tripartite Alliance for Dispute Management (TDM) and ECT deal with more straightforward claims like salary disputes.

Can the Ministry consider empowering either TGFEP or the other two bodies to deal with workplace harassment grievances, or have its hotline for reporting labour infringements be extended specifically to workplace harassment as well?

On FDWs, according to a March 2017 Singapore Law Review article, the Ministry of Manpower's (MOM's) "Employer’s Guide" is a good step. But some of the language used in there is still a bit ambiguous. Right now, words like "should" and "must" are used interchangeably in the guide. But "should" is an aspirational goal whereas "must" sounds like an indisputable requirement.

For instance, the guide uses "should" for "your foreign domestic worker should not sleep near any dangerous equipment or structure that could potentially cause hurt or harm to her, and "You and your foreign domestic worker should mutually agree on which day of the week she should take the rest day". But it uses "must" for: "You must provide your worker with three meals a day" and "you must minimally provide your worker with a mattress, pillow and blanket". But if we believe in workers' safety and workers' rights, then surely our domestic workers must sleep in safe quarters and must mutually agree on their rest days.

So, can the Ministry replace "should" with "must" in the guide wherever appropriate? This would help lessen public misunderstanding about what is MOM's tolerance level for abuse that an employer can get away with.

Lastly, on people with disabilities, the EA does not define what unfair dismissal is, leaving room for misunderstanding. People with disabilities have been dismissed without explanation by their employers. Can the Ministry amend the EA to provide a clearer definition of what constitutes an "unfair" dismissal and set out legal remedies for unfair dismissals?

Since our workforce is rapidly ageing, acquired disabilities, such as mobility issues and sensory impairments, will become a growing challenge. Some employees also acquire a disability while working for a company.

Currently, there is no requirement for a company to accommodate the employee’s changed situation, such as redesigning a job or offering an alternative role. Can the Ministry require or assist employers to provide reasonable job accommodations for employees who acquire disabilities in the course of their employment so that they may continue in their current role, wherever this is possible or appropriate?

Economic Growth and Jobs for Locals

Assoc Prof Dr Muhammad Faishal Ibrahim (Nee Soon): Mr Chairman, the Singapore economy grew by 3.6% in 2017. This is better than the economic growth in 2015 and 2016.

On the employment front, we were informed of a drop in Singapore's total employment in 2017. This was due to a larger drop in foreign employment, although local employment grew.

I would like to ask the Minister: has the economic growth in the past few years benefited Singaporeans, in particular, the growth in PMET jobs?

Workforce Restructuring and Productivity

Mr Desmond Choo (Tampines) (In Mandarin): [Please refer to Vernacular Speech.] Mr Speaker, Sir, it has been several years since Singapore started its economic transformation, focusing on productivity and innovation. The tripartite partners have restructured business processes and the workforce. We achieved 3% productivity growth last year but some economists have cautioned that such a pace might not be sustainable because of limits from a tight labour market. Can the Minister share if this growth is sustainable and what can we do to maintain productivity growth?

Yet, productivity growth is only meaningful in how they have benefited our workers who have dedicated themselves to helping companies to grow. How has the productivity growth resulted in better jobs and better wages for our workers? Can we consider setting gains-sharing as a basic requirement for qualifying for Government funding schemes?

Capital investment without complementary competent manpower impedes productivity growth. It is important that our workers can take on new opportunities quickly. I hope that MOM can also offer a Career Trial Programme to fresh graduates as well. This helps them with finding an ideal job and lowers the attrition for the employers.

The Professional Conversion Programme (PCP) has given mid-career Singaporeans a viable transition to another industry. Yet, many Singaporeans do not know about this good programme. Would the Ministry consider working with organisations, such as the People’s Association (PA) and NTUC to promote and increase awareness of PCP?

I am convinced that if the tripartite partners can work together, then the strong productivity growth last year will not be a one-off phenomenon.

Local-foreign Complementarity

Assoc Prof Dr Muhammad Faishal Ibrahim: Mr Chairman, over the last two years' Committee of Supply (COS) debates, I have raised the issue about Singaporean and foreign workers, in terms of the Singaporean Core and the complementarity of local and foreign workers. I would like to ask the Minister for an update. Can the Minister share on MOM's treatment of "Triple Weak" and "Triple Strong" companies? I would also like to know if these efforts have resulted in better outcomes for Singaporeans, in particular, for our PMETs.

Mr Lee Yi Shyan (East Coast): Mr Chairman, in a May 2017 Business Times report, a headline read: "Tech talent shortage in Singapore unable to meet industry demands". It quoted Hays Consultancy saying that employers were struggling to fill a number of tech roles, including cloud architects, cybersecurity professionals, data scientists and analysts, and mobile app developers. In another report in August 2017, a Business Times’ headline read: "In the Asia Pacific, talent shortages will bite hardest in Singapore".

Given that we are rolling out 23 Industry Transformation Maps (ITMs), and new skills and talents are needed to make these transformations successful, what is MOM's assessment of the manpower shortage problems? How would the shortage impact Singapore’s overall competitiveness and ability to create jobs for Singaporeans?

How would MOM help employers, particularly those who are making efforts to raise productivity using technology, to recruit sufficient talents locally or overseas? For new and special technical fields which our local institutions have not yet produced in the right numbers, would MOM allow firms to recruit more overseas talents in the interim?

Ms Jessica Tan Soon Neo (East Coast): Mr Chairman, can the Minister provide an update on MOM's treatment of companies on the "Triple Weak" watchlist and of "Triple Strong" companies? Have the "Triple Weak" companies been able to improve the Singapore Core in their workforce? What improvements have been made in the HR practices of "Triple Weak" companies to build the strong Singapore Core? Have these resulted in Singaporean PMETs getting quality roles in organisations and seeing their incomes grow? Have we seen an increase of "Triple Strong" companies?

With the improving economic growth this year, are we seeing growth in PMET jobs? More importantly, have Singaporean PMETs been able to qualify for these jobs? What more can be done to raise the number and quality of PMET jobs for Singaporeans?

I am concerned if there continues to be missed match and mismatch of PMETs for the available jobs. Have the various SkillsFuture programmes, like the Career Support Programme (CSP) and PCP, been able to address these gaps between jobs and the persons qualifying for these roles? Have businesses supported the PCP and CSP programmes? What progress has been made for local PMETs on these programmes? While there may be suitable job opportunities, are organisations with these PMET roles prepared to leverage these programmes to work with PMETs to transition into these roles?

While we continue to focus on improving the quality of jobs for local PMETs, we must also recognise that with the pace of change and disruptions brought about by technological advancements, businesses do require new skills. In the short term, we may not have the skills and we are already hearing from businesses challenges in filling these roles. This would mean that we will need to continue to tap on foreign talent. Is there support available for businesses to strengthen the local-foreign manpower complementarity? With a third of our workforce comprising of foreigners, what is being done to raise the quality of foreign workers in Singapore?

Review of Fair Consideration Framework

Mr Patrick Tay Teck Guan: I have been lobbying on strengthening the Singaporean Core, Fair and Progressive Hiring and eradication of nationality bias since 2011. It has been an arduous but positive journey. We have seen the introduction of the Fair Consideration Framework (FCF) and the National Jobs Bank in 2014.

There are also greater focus and awareness of the move towards not just fair but progressive workplaces and employment practices by the Tripartite Alliance for Fair and Progressive Employment Practices (TAFEP) and our tripartite partners. Anecdotally, the situation has improved when I speak to fellow PMEs. However, I do still hear complaints of two kinds.

First, hiring-of-its-own-kind practices and companies advertising in the Jobs Bank for the sake of advertising and treating the FCF and the Jobs Bank as mere window dressing. This happens not just in big multinational corporations (MNCs) but also small and medium enterprises (SMEs).

Some also share that employment agencies and placement companies are also where some of these malpractices happen. The general concern is over the glaring disproportionate number of foreign PMEs in certain sectors and companies. In some cases, the nationality biasness results in job losses of local PMEs and hiring of foreign PMEs for jobs which local PMEs can fill.

In this regard, I wish to ask MOM to provide an update on how effective FCF has been in the past three years since implementation in levelling the playing field for our local PMEs and in eradicating "nationality bias" discrimination in hiring practices, including by employment and placement agencies.

I know the Minister has shared that he has nailed more than 300 companies into what he calls the "watchlist" where he sees the "Triple Weak". Has there been an improvement since the last time he shared about this "watchlist" and can he share what kinds of companies, whether MNCs or SMEs, and from what sectors these companies are from? I have five concrete suggestions for MOM in respect of what we can do.

Suggestion 1 – At present, you are exempted from the Jobs Bank advertising requirement in any of these cases: (a) your company has 25 or fewer employees; (b) the job position is paying a fixed monthly salary of $12,000 and above; (c) the job is to be filled by an intra-corporate transferee (ICT); and (d) the job is necessary for short-term contingencies, that is, the period of employment in Singapore is not more than one month. Can these areas be reviewed so that one is not easily exempted from the FCF requirements?

Suggestion 2 – Besides executive sanctions and measures, I suggest MOM can also recognise and offer "carrots" and recognition to those companies and businesses which demonstrate an exemplary Singaporean Core and a resolute commitment to hire and develop Singaporeans through the Human Capital Partnership programme (HCP).

Suggestion 3 – To encourage building a strong Singaporean Core, companies and organisations which outsource some of their services, such as information technology (IT), HR or accounting and even construction projects, can, within the terms of the tender or contract, not buy from these Triple weak companies, or purchase from companies or organisations which have been recognised by the HCP mark. I suggest the public sector, including Government-linked corporations, take the lead and should not procure services or buy from any of these Triple Weak companies.

Suggestion 4 – Over and above existing requirements under the law, there could be tighter regulation and accreditation of employment and placement agencies to weed out biased and unfair hiring-of-its-own-kind practices and ensure a strong Singaporean Core. By the same token, these agencies, recruitment companies and even company HR departments should not and must not treat the advertising requirement as mere window dressing, and their practices closely monitored. Their frontline and placement staff should undergo mandatory training and accreditation to understand the concept of building the Singaporean Core, FCF and the Jobs Bank.

Finally, Suggestion 5 – A Tripartite Capability Development Toolkit can also be developed by TAFEP for companies to address capability gaps within their organisations and put best practices in place to achieve HCP outcomes, such as hiring and developing a strong Singaporean Core.

Fair Consideration Framework

Mr Chong Kee Hiong (Bishan-Toa Payoh): According to a World Bank report last year, Singapore ranked second in the world for ease of doing business. We want to remain highly attractive to companies around the world to draw their investments which will create jobs for Singaporeans.

Investors and businesses, whether global or local, want access to global talent. This is especially so in high-tech companies, such as artificial intelligence (AI), cloud computing and robotics, where talents are in short supply and, hence, courted worldwide. We should welcome them because they bring unique value to the local economy.

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At the same time, we must ensure the transfer of expertise and technical know-how from these foreign employees to local employees within specific timeframes. Such transfers are critical if we are to build a strong Singaporean Core and boost local competencies. How to facilitate these transfers is the challenge. Monitoring and regulating the ratio and number of Singaporean staff at certain positions within companies after they have been occupied for a certain number of years by foreign staff is one way. Does the Ministry have a process of tracking such data across industries? Another way is to require companies, in particular, those in critical sectors, to justify and limit the ratio of foreign hires and limit how long they can work here.

We have to strike a balance between meeting their demand for selected foreign employees to work in Singapore and providing Singaporeans with job opportunities.

FCF seeks to ensure that Singaporeans are considered fairly for jobs. I would like to ask the Ministry for updates on the effectiveness of FCF enforcement measures and its compliance success rate. How many employers are currently on the FCF Watchlist and which are the main sectors or industries where infringements occur? Does the Ministry also have the breakdown of the job categories, levels of seniority and salary ranges of jobs which had gone to the foreigners in these cases? What are the main sources and channels of feedback, complaints and whistleblowing? How many Employment Pass (EP) applications by errant firms had been rejected by the Ministry in each of the last few years? Having such details will be useful for the Ministry to spot red flags, improve preventive measures and formulate better manpower policies to protect jobs for Singaporeans, as not all errant firms will be captured on the radar of FCF.

Would the Ministry also share with us the effectiveness of our National Jobs Bank in helping Singaporeans find jobs? Does the Ministry have some way of monitoring and evaluating the effectiveness and usefulness of this portal in ensuring that jobs are actually given to Singaporeans? If not, I would like to suggest that the Ministry consider doing so as soon as possible. Should it be ineffective, we will have to come up with new strategies and ways to connect employers with Singaporean hires.

Improving Employability for Singaporeans

Mr Lim Biow Chuan (Mountbatten): Last year, during the COS debate, MOM shared that there were 250 companies on the FCF Watchlist. These are companies which have been identified as the Triple Weak companies and which do not adopt fair and progressive employment practices. The companies employ foreign workers at the expense of Singaporean workers and this has created much unhappiness among Singaporeans who have lost their jobs or are employed by companies with a majority of foreigners. Their employment practice has also created much resentment among Singaporeans against foreigners.

In October 2017, MOM shared that the number of such companies on the FCF Watchlist has gone up to 300 companies. This is clearly unsatisfactory as it suggests that these companies are not deterred by the punitive action by MOM and are also not bothered about creating more employment for Singaporeans.

Last month, during a house visit, my resident told me that her company has discriminatory practices in favour of foreigners because of the Managing Director's preference. Despite my request, she did not wish to reveal the name of the company as she was concerned about her own employment. And mind you, she works in HR. My concern is whether there are even more such Triple Weak companies which have discriminatory employment practices against Singaporeans and employ foreigners at the expense of Singapore Citizens.

May I ask MOM what other action can the Government take against companies which have been assessed to be Triple Weak companies and are on the FCF Watchlist? Can we consider revoking these companies' work passes or EPs of the foreigners in their companies?

We need to send a strong signal to such companies that if they are not interested in building a Singaporean Core and intend to hire mainly foreigners, then they should face the consequences as there is no purpose in allowing such companies to thrive in our business environment because they exist at the expense of the Singaporean Core.

Capability Transfer Programme

Mr Patrick Tay Teck Guan: Sir, I am aware that the Capability Transfer Programme (CTP) was rolled out late last year. I wish to ask for an update and how successful it has been thus far and how does it benefit our local PMEs.

I have received feedback from the professional services industry, including the information and communications technology (ICT) and financial sectors, that the current subvention may not suffice and appear unattractive, considering the wage levels of experts in these sectors. Can MOM consider enhancing this cap on a case-by-case basis based on sector-specific needs?

Mr Low Thia Khiang (Aljunied): Chairman, Sir, I am glad to note that the SkillsFuture Leadership Development Initiative is steaming ahead and that more programmes are coming online under the initiative, such as the ASEAN Leadership Programme, to help Singaporean executives understand ASEAN business cultures better.

It is important to ensure we cultivate a Singaporean Core in leadership positions across the economy. CTP is another important initiative to be welcomed because it places Singaporeans at the heart of our economic transformation. CTP will help to deepen knowledge transfers to Singaporean workers and train up a strong body of highly-skilled and continuous learning local workforce.

In this light, can the Minister elaborate on the outcomes expected from CTP grants and the metrics that would be used to measure the outcomes to make sure the money is well spent? I am asking this because we have to be careful that CTP is not used to lighten the costs incurred by companies for routine training for their workers. There must be concrete capability development, and this should be measurable.

I understand that CTP offers funding for industry-level projects, such as company-level projects. My concern with funding for company-level projects is that the capability transfer will be limited to benefiting a single company instead of the whole sector. This means that the Government would end up supporting an uncompetitive situation in a sector.

For example, a large company dominating a sector could use CTP to acquire exclusive training for its staff, thereby enhancing its capability and competitive edge against other companies in the sector. Can the Minister give some examples of company-level projects funded by CTP and how the scenario I just described was avoided? How has the Ministry ensured the capability transferred to a company would benefit the sector as a whole?

Review of S Pass Framework

Mr Patrick Tay Teck Guan: Sir, on the topic of S Pass, I wish to submit that, despite raising the qualifying salaries for S pass to $2,200 and new quotas, I still hear two kinds of complaints.

Firstly, the complaint of creative circumvention of this salary requirement by companies.

Secondly, although S Pass is for selective strategic skillsets in specific industries, for example, like healthcare where they are welcomed and needed by fellow workers, there are cases where S Pass is issued to employers for workers doing mere administration or office tasks.

Thirdly, the median wages of semi-skilled workers have also gone up in the past years. I wish to ask if there are any safeguards to make sure that Singaporeans are not replaced by many of these younger, better educated S Pass holders. Is the scheme too attractive and flexible such that it will be abused?

Finally, should the scheme be reviewed, salary ceiling raised or the scheme be eventually done away with altogether?

Training and Upgrading of Foreign Workers

Mr Thomas Chua Kee Seng (Nominated Member) (In Mandarin): [Please refer to Vernacular Speech.] Chairman, foreign workers form an integral part of Singapore's workforce. In many sectors of the economy, foreign workers supplement the types of functions that local workers are not equipped to undertake and, thus, perform an indispensable role in our economic development.

Based on the trend of the Government's manpower policy, businesses need to bring in foreign workers with a higher level of technical proficiency. While they are working, they also need to receive continual training, particularly in an environment characterised by rapid technological advances and industry transformation. However, training requires expenses. As many enterprises are striving hard to transform, I hope the Government could support enterprises to manage these expenditures.

In his speech at the Budget Debate, Mr Heng Chee How, Senior Minister of State cum NTUC's Deputy Secretary-General, emphasised that as our enterprises transform and upgrade, apart from the local workers, our foreign workers should also not be neglected.

In fact, the Government need not worry too much on how to support skills upgrading of foreign workers. I would like to raise a suggestion: a portion of foreign worker levies collected could be channelled back to the business sector, to help enterprises in the training of foreign workers. This suggestion is based on the example of how the Government plans to use carbon tax in this year's Budget. In the first five years of implementing the carbon tax, the Government plans to use the tax revenue to provide more grants and support to help enterprises enhance energy efficiency and reduce emissions. In the same way, instead of channelling foreign worker levies into other areas, I would suggest that the Government channel a portion of this levy towards training of foreign workers to uplift the overall skills level of the workforce.

Further, the gig economy is rapidly emerging and has become a trend to be paid attention to. To date, the number of self-employed persons has already reached 200,000. Self-employed persons do not have regular employers, but this is precisely why many employers do regard them as a welcome addition to the workforce during the current manpower shortage. This is because companies always have certain projects which need to be managed by people with special expertise or talents. If companies can find people with suitable criteria, and both parties agree to this flexible arrangement where the work is completed within a designated period, everyone would be perfectly happy. Often this is also a more cost-effective solution.

Not long ago, in order to protect the rights of self-employed persons, the Government set up a Tripartite Workgroup (TWG) on Self-employed Persons to identify recommendations. The Minister for Manpower has given his in-principle acceptance of these recommendations. We look forward to having these solutions rolled out as quickly as possible.

Helping to alleviate the worries of these self-employed persons and building an even stronger and balanced employer-employee relationship is certainly good news to the business community all round!

Local Workforce Shortage in Sectors

Mr Chong Kee Hiong: To build a workforce with a strong Singaporean Core, we need Singaporean workers distributed across different sectors and at all levels of seniority and skills. It is important that we have our own local staff with technical competence and core skills for key sectors.

Unfortunately, there are substantial labour shortages in certain sectors, such as in healthcare and occupational jobs, such as skilled technicians. These shortages have resulted in dependency on foreign employees which, in turn, sometimes lead to communication difficulties due to cultural and language differences, or where even the hiring of foreigners is not enough to meet demand, we have to contend with long waiting times for repairs. It is clear that hiring foreign employees in certain sectors is not a sustainable solution to labour shortage.

Would the Minister share the details of the local workforce shortages in various sectors? What measures do we have to boost the presence of local hires in these industries?

Companies must also restructure these jobs to meet the expectations of new local hires, in terms of pay, number of hours worked and job perception. Companies should consider ways to differentiate themselves from their competition so that they can justify their higher fees and prices, in order to afford higher salaries to attract local employees. In addition, companies can improve work conditions by tapping upon technological innovations to make such jobs either easier or safer, or both.

The Lean Enterprise Development Scheme (LEDS) was launched in 2015 to grow a more manpower-lean workforce, help build a strong Singaporean Core and nurture a higher-quality workforce. Would the Ministry share an update on the progress of this scheme?

Lean Enterprise Development Scheme

Ms Jessica Tan Soon Neo: Mr Chairman, a key thrust of Budget 2018 is to drive pervasive innovation to support businesses to innovate across the entire value chain.

LEDS, which was announced in 2015, is focused on helping businesses innovate and transform to become more manpower-lean and productive. So, with digital disruption, business models are being challenged. And to transform, businesses require a change of mindset and a re-imagination of their businesses. Can the Minister share how effective LEDS has been in helping companies transform and become more manpower-lean?

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It has been reported that over 5,000 companies have tapped on LEDS to transform their business operations and improve productivity. Have these companies been able to restructure jobs to become more attractive for workers? Given our ageing population, have the business transformation efforts made work processes more conducive for mature workers?

I spoke in my Budget Debate speech on the benefits of businesses tapping on mature workers. Mature workers are a source of business experience but may have gaps in the new skills required for the jobs available. By making our workplaces more inclusive, businesses can benefit from the intergenerational diversity of their workforce. Given our tight labour market, especially for PMET roles, it would a shame for us not to tap the potential of this talent base.

The Chairman: Mr Patrick Tay.

Mr Patrick Tay Teck Guan: Chairman, can I take both cuts together?

The Chairman: Yes, please.

Online Jobs Marketplace and Jobs Bank

Mr Patrick Tay Teck Guan: Sir, I wish to ask on the progress of the National Jobs Bank and the online jobs marketplace, which the Minister alluded to last year, and how MOM and Workforce Singapore (WSG) have been making use of the data to extrapolate the job openings and identify the skills gaps to better facilitate job matching and employment, especially for PMEs.

Moving ahead, I hope to see even better use of the jobseeker, hirer, jobs and skills data in the Jobs Bank to help minimise both the missed matches and mismatches.

PMEs and Long-term Unemployed

As shared during my Budget Debate speech, I am particularly concerned about the three challenges of long-term unemployment, structural unemployment and underemployment. It affects PMEs, mature PMEs, older PMEs and, increasingly, rank-and-file workers, too.

I wish to ask MOM what has been done in the past three years to address the above challenges and how effective have the schemes been. In particular, I have three suggestions for MOM to overcome some of these challenges.

First, eradicate ageism and all hints of it. Till today, I still hear anecdotally of age discrimination amongst employers. We have an imminent ageing workforce. Can we do more to get employers to be open in hiring and redesign their work and workplaces to cater to this group, instead of negating hiring them altogether?

Second, expand support for employment facilitation and employment for both PMEs and rank-and-file workers. Our citizen unemployment has crept to about 3.3% in 2017. Can the various schemes, including the Work Trial and Career Trial, be further expanded to cover all groups of workers?

The Labour Movement has carried out a detailed survey last year and the survey revealed that there are, indeed, mismatches of placement, skills and expectations, such as remuneration and job requirement. Of these, the mismatch of expectations between employer and worker is the most common occurrence. By the same token, the type of mismatches differed between different sectors, such as the manufacturing sector and services sector. As the types of mismatches differ, the policy interventions must be customised to the needs of the sector.

In addition, the policies need to be dynamic to address the changing and evolving types of mismatches. It is, therefore, imperative to identify which form of mismatch a jobseeker is affected by and address it early lest it develops into another type of mismatch over time.

Long-term Unemployment

Mr Low Thia Khiang: Chairman, Sir, last year, we experienced one of the best years in economic growth in recent memory. However, despite stronger than expected economic growth, long-term unemployment has been sticky.

Long-term unemployment rose to its highest in 14 years in 2016. In September 2016, three in 10 unemployed resident workers could not find employment after more than six months. The long-term resident unemployment rate rose to 0.8%. This meant that 17,600 workers were jobless for at least 25 weeks. The spike was mainly caused by older workers aged 50 and above and PMETs experiencing extended joblessness.

In September 2017, according to MOM figures, the rate remained at 0.8%. Older workers and PMETs again had lower rates of finding employment within six months than the overall rate.

Economists and the Government have explained the issue as caused by job-skills mismatches. New technologies and economic shifts have made many job functions and skills obsolete. Therefore, it is good that the Government implemented programmes, such as the PCP and Place-and-Train (PnT) programmes in the last few years to help workers retrain and reskill. Despite these programmes, long-term unemployment has remained sticky.

PCP placed 3,300 PMETs in 2017, but only 10% were long-term unemployed workers. PnT placed 1,800 workers, but only 5% were long-term unemployed workers. Why are the programmes not helping enough long-term unemployed workers? What else can we do for the long-term unemployed workers?

Employment Support for Locals

Assoc Prof Dr Muhammad Faishal Ibrahim: Sir, during last year’s COS debate, Minister Lim Swee Say shared that MOM was working on a few strategies to provide enough jobs for Singaporeans and better-quality ones, too. Many initiatives have been undertaken and enhanced, such as the enhanced PCP, the Attach-and-Train scheme, and the enhanced CSP.

I would like to ask the Minister: how effective have MOM's efforts been in helping locals, particularly mature PMETs and those who have been unemployed for long periods, to take on new job opportunities? Will MOM similarly be doing more to help the rank-and-file workers?

Skills Fit, Job Fit and Career Growth

Ms K Thanaletchimi (Nominated Member): Sir, PCP encourages Singaporeans to pick up skills and knowledge in different industry sector. With new schemes, such as CTP, it will be helpful to plug the gap in skillsets in certain important fields by supporting the transfer of skills from foreign specialists to fill the talent shortage, eventually to Singaporeans.

Other Career Support Programmes (CSP), such as Work Trial and the new Career Trial Scheme, can be effective means for bold career switchers to not only switch industry, but also switch to different jobs to try them out before deciding to take on the job as a career. We should also identify the success rate of schemes like PCP and CSP in each and every ITM sector by focusing on it sector by sector.

For sectors where PCP or CSP is less popular or the dropout rate is high, we should address those concerns and put in place measures for these schemes to grow. Conducting focus group discussions could be one way to better understand why certain schemes are less popular before we could tweak the programmes for better acceptance. Some other improvements could include mentors to provide support and longer work trial periods for better job assessment.

For example, of the 223 Singaporeans from non-healthcare sectors who enrolled into the healthcare conversion programmes between 2009 and 2011, 82% completed their training and were successfully placed into a healthcare job. Among those successfully placed, 92% remained in their jobs after the end of the minimum service period. Can we define the minimum service period – the retention period – to be at least two years, so as to deem PCP as a successful placement?

For the 18% not successfully placed in the sector, what are the options for them? What are the reasons for their unsuccessful placement? For the 8% who left their jobs after their bonds, what are their reasons? Were we able to keep them in the same industry? Or had they left to return to their previous industry? Would we be able to allow longer trial periods for individuals to ascertain their job fit for some of the professions?

Perhaps, a psychometric test could be conducted for some of these professions to evaluate their suitability during the interview phase. Hopefully, this would provide a better return of investment for all parties that have put in efforts and resources to provide training opportunities and for those who had made the job switch. Similarly, we could also examine the causal factor for dropout rates for the ITM sector.

The ultimate outcome is to develop skilled and productive workers for employers, a well-paying career for the individual, and, for the Government, one less unemployed worker to provide social support for. I believe PCP and CSP are good steps to build a better skilled and productive workforce. I support this move.

The Chairman: Assoc Prof Randolph Tan. Not here. Ms Jessica Tan.

Changing the Employment Model for Freelancers

Ms Jessica Tan Soon Neo: Mr Chairman, based on the TWG Report on self-employed persons (SEPs), the share of SEPs is at 8% to 10% of our total resident workforce. Although this is not a large proportion of the workforce in numbers of persons, this is not insignificant. In 2016, this made up 210,000.

The report had also indicated that the majority of SEPs – 80% of them – prefer self-employment over regular employment, primarily for the autonomy. Digital platforms are making it more attractive for SEPs as they enable direct connections of those who provide services to those who need the services. This enables a sharing economy and potential efficiencies.

The profile of SEPs reflect the changes in our wider workforce. A greater proportion are aged 50 and above. There is also an increase in the share of those with tertiary education and they are also earning more, especially PMET SEPs.

On the part of businesses, digitalisation is also disrupting the way work is done, employment models and how businesses collaborate. Technological advancement is allowing greater flexibility of how and where work is done.

Work can now be shared across different persons, and people do not need to be in the same time zones or same place to do work. We are already seeing this impacting many industries from healthcare, education, food and many other services.

Businesses are not only directly employing their staff in regular employment but procuring relevant services of SEPs, as and when they are required. Hence, we will probably see an increasing trend of SEPs over time.

Although SEPs have the potential to earn a higher income, they do face irregular income streams, lack of a framework for training and development and do not have health and income protection to manage prolonged or sudden illnesses. Can the Ministry share the responses to the TWG's recommendations to address these challenges?

Career Advisory for Freelancers

Mr Ang Hin Kee (Ang Mo Kio): Mr Chairman, as mentioned by Ms Jessica Tan, freelancers or SEPs make up close to 10% of our workforce. The TWG was formed by the Minister for Manpower in 2017 to identify the main challenges faced and to make recommendations. I thank the Minister for inviting me to join the workgroup. We have submitted our recommendations to the Ministry. I look forward to targeted assistance and specific support for our SEPs.

In particular, I would like to draw our attention to a segment of SEPs. In the recent joint graduate employment survey of graduates from the National University of Singapore (NUS), Nanyang Technological University (NTU) and Singapore Management University (SMU), results state that more went into freelance work – 2.4% in 2017 compared to 1.7% in 2016. What is the Ministry’s assessment of this small but growing number?

In another survey conducted by MOM in 2016, 83% of approximately 200,000 respondents cited freelance work as their preferred choice of employment. However, 17% did not engage in freelance work as a preferred choice. Again, I would like to ask: what is the Ministry's assessment of this segment? Did they fail in their efforts to seek permanent employment?

For working adults who are currently freelancers not as their preferred choice, what are the types of assistance available to help them transit to full-time employment? For school leavers, are we able to strengthen our channels to guide our youths on the appropriate career choice to springboard their aspirations?

I know we have Education and Career Guidance Counsellors (ECGCs) in schools, polytechnics or Institutes of Technical Education (ITEs) and career coaches at the Employment and Employability Institute (e2i) and Workforce Singapore (WSG) career centres to provide career guidance. Are these counsellors and coaches familiar with the nature of freelance work? Can they give a fair assessment of the risks involved, compared with permanent employment? Are they equipped with enough information, so as to better guide and advise their clients? To this end, I would encourage they enhance the support by collaborating with freelance groups to invite experts to mentor, conduct talks to share insights and raise greater awareness on the nature of freelance work.

Finally, I would also like to know how MOM will engage the various Government agencies, industry associations and freelance communities to implement the TWG recommendations.

Self-employed Persons' Well-being

Mr Kok Heng Leun (Nominated Member): I worked as a freelancer for almost eight years between 2003 and 2011 in the Arts. Back then, my concern was whether I had enough jobs to ensure my financial survival in the short term. At times, I would be offered part-time work with employer Central Provident Fund (CPF) contributions, and that was a bonus and I felt more secure. But by and large, the security of benefits, such as CPF provisions, was not something I thought much about.

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My experience then is similar to what freelancers face today, perhaps an exacerbated level in the gig economy. Because of their relative lack of experience, they can be easily exploited by hirers offering them less pay. To ensure they get a job despite their lack of a portfolio, new entrants resort to undercutting, thereby creating a vicious cycle of decreasing wages. They may take on more jobs than they can handle, endangering their own health and lives in some cases.

In full-time employment, there are legal and contractual obligations enshrining a social compact between employer and employee – employers' CPF contributions, paid sick leave, workplace insurance and other welfare.

But with a freelance engagement, the hirer does not bear such responsibilities. In fact, sometimes, there is no agreement signed, no reimbursement for workplace injuries, no assurance of remuneration deadlines. These are purely transactional relationships, where the hirer stands to gain because there is willing labour. This freelance employment model will continue to thrive, because it is highly efficient. It is what the gig economy relies heavily on. As a first step, to ensure a fairer social compact, perhaps the Government can look at mandating hirers, probably starting from the Government agencies, to make contributions to CPF for the freelancers engaged.

The more they come together, the stronger their negotiating power. It allows us to take care not only of ourselves, but of others like us. It goes beyond the transactional because, through a social compact, we see our interdependency, thereby growing stronger as a society.

CPF for Self-employed Workers

Mr Chen Show Mao (Aljunied): Sir, self-employed persons account for around 8% to 10% of working residents and, with the rise of the gig economy, may well increase significantly in the future.

The Ministry has indicated it accepts the TWG's recommendation of a contribute-as-you-earn model for MediSave whereby contributions to the SEP's MediSave account of CPF is required as and when a service fee is earned. As the Ministry further studies its implementation, could the Government also look into more ways to encourage gig workers to make further voluntary contributions to their CPF by providing them with strong incentives to do so?

There is substantial evidence from public policy efforts that positive actions can be induced through non-compulsory incentive mechanisms. For instance, could a "default" be established where CPF deductions, beyond MediSave, initially match those of regular-economy workers with the same job profile but, being non-binding, would permit opting into a lower amount? Alternatively, could gig workers receive information in their CPF statements about typical contributions by regular-economy workers in comparable employment circumstances, to encourage them to follow the "social norm"?

SEPs typically face short-term cash flow needs, which may trump their longer-term economic interest in saving for future retirement. Could the Government look into offering incentives for SEPs who voluntarily contribute to their Ordinary, Special or Retirement accounts, including favourable tax treatment when they do so?

Women as a Valuable Manpower Resource

Dr Intan Azura Mokhtar: Mr Chairman, in 2017, the labour force participation rate for women aged 15 and above was 59.8%. This was a slight dip from 60.4% for both 2016 and 2015.

There are various reasons that women may choose not to work or be employed. These reasons range from childcare or elderly care responsibilities to the decision to have a better work-life balance and work from home on a flexi-work basis. To what extent does our labour force participation rate data capture the proportion of women who are home-based entrepreneurs or who are on flexi-work schemes? What are some plans that the Ministry has to help and encourage more women to work or be economically active? To what extent have employers implemented flexi-work or work from home schemes to help our women who may wish to have a better work-life balance, and what more can we do, as a society and couples, better manage their familial and economic responsibilities more equitably, thus reducing the burden of familial responsibilities that rest on more women and reducing the burden of economic responsibilities that rest more on men?

There are increasingly more women who are home-based entrepreneurs due to the work flexibility it provides. How can the Government better support our home-based women entrepreneurs? What are some possible schemes or grants that can be made available to them, such as "micro-loans" or "seed" funding, for instance? How else can the Government provide support for this network of home-based women entrepreneurs? Another concern that I have is that women are still not seen as a valuable source of manpower in the workplace.

Looking at the manpower statistics of 2017, more women are earning lower salaries compared to men. The only income brackets where there are more women employees than men are jobs where the monthly salaries are less than $1,500. For jobs that pay a monthly salary of at least $1,500 up to below $11,000, there are consistently more male employees than female employees in every income bracket. I just cannot accept that women are less capable such that they deserve lower salaries or cannot be employed in positions that pay more for which they are given more responsibilities.

I hope the Ministry will look into how employers employ the workers, particularly in ensuring that women are given equal opportunities, equal recognition and equal remuneration for jobs.

Maternity Protection

Mr Louis Ng Kok Kwang (Nee Soon): Sir, there is no job protection after a mother returns from maternity leave. Mothers have experienced being treated harshly or assessed unfairly at work due to their pregnancy, and some have been dismissed subsequently upon their return from maternity leave.

In the United Kingdom (UK), it is unfair dismissal and maternity discrimination if an employer does not allow an employee to return to the same job after maternity leave. The International Labour Organization (ILO) Convention on Maternity Protection sets the international standard in guaranteeing a woman's right to return to the same position or an equivalent position paid at the same rate at the end of her maternity leave.

Can the Ministry enhance protections for mothers by giving employees the right to return to their job and prohibit any termination during an employee's pregnancy, maternity leave, as well as three months after returning to work from her maternity leave?

Supporting Families in the Workplace

Mr Desmond Choo: There are an increasing number of Singaporeans who have to take care of both younger children and older parents because of our marriage trends. They will need greater support at the workplace to balance work-life responsibilities. The recent launch of the Tripartite Standard on Flexible Work Arrangements (TS-FWAs) is a step in the right direction. I would like to ask the Minister how we can further spread and deepen the adoption of FWA.

With the Tripartite Standard in place, there is an opportunity to accelerate adoption of FWA. Frequently, the inertia of established work processes and schedules causes employers to go beyond part-time work as an FWA option. I would encourage the Ministry to consider giving to our young parents with newly born children the legislated right to request for FWAs in the first year of birth of their children. This would encourage employers to review existing structures. Our parents will also feel that they are less of an exception in working towards FWAs with their employers.

Understandably, companies, especially the smaller ones, might find it difficult to implement. The recent announcement on adjustment in work-life grant is particularly welcomed. Capabilities of the work-life consultants can also be enhanced to look into the process redesign and change management in companies which are really the key issues affecting FWA implementation.

The other impact of balancing family needs is that our caregivers tend to drop out of the workforce. Our female residents, being the primary caregivers, have a lower workforce participation rate than their male counterparts. They are also the primary caregivers, whether for children or their parents. The consequence is less retirement savings due to the drop in CPF contributions during the years that they may have left the workforce to care for their families. How can the Ministry review the CPF cash and retirement sum top-up schemes to help our Singaporean women to be secure in their retirement?

Promoting Fair Employment Practices

Ms K Thanaletchimi: Sir, the tripartite partners have recently introduced various Tripartite Standards (TS) for employers to adopt as good employment practices. While 5,219 unique companies have pledged on Fair Employment Practices, only 11.8% have adopted these standards to date.

I urge the Ministry to adopt a more targeted approach in identifying the reason behind the low TS adoption rate. With the Government's role as a facilitator and enabler in the Industry Transformation Programme, can MOM tap on this engagement platform to better understand the concerns of companies? This also allows us to gather targeted feedback from the companies to improve the initiative.

TS can help address two issues that may arise in any company in today's society – grievance handling and FWAs. Employers need to have established grievance handling procedures to ensure that employee issues are duly addressed and resolved. MOM can work with training providers to implement online resource platforms that allow management, HR and line managers to access the tools on handling employee grievances easily. MOM can also introduce examinable topics that line managers can take periodically to evaluate their standards as a TS adopter.

Another challenge is the need for FWAs in the workplace. Successful implementation of FWA can achieve win-win outcomes for both employer and employee. MOM and TAFEP can conduct regular dialogue sessions for companies and employees to share how they have benefited from adopting robust FWA practices. This will encourage more companies to adopt or review their existing FWA practice.

Currently, TAFEP focuses on incentivising companies to be TS adopters through positive publicity and added resources. I would like to urge MOM to consider using TS as a set of qualifying criteria for companies to be eligible for various funding supports from MOM. These could include enterprise capability funds and employee support funds, such as WordPro, CSP and PCP and so on. This sends a clear message that the Ministry places strong emphasis on Fair Employment Practices.

More should be done to raise public awareness on the TS so that our workforce recognises the TS adoption watermark as quality-assurance of that company. MOM can work with human capital partners, tertiary institutions, trade unions and grassroots organisations to spread the stringent qualifying criteria to be a TS Adopter, and to educate the public on its importance.

In conclusion, I am optimistic that employers who adopt TS are also seen as fair and good employers that value every worker.

Managing Workplace Harassment

Mr Louis Ng Kok Kwang: Sir, employers should ensure a safe and inclusive workplace for all workers, including by preventing and responsibly handling workplace sexual harassment.

However, the Ministry does not track how many employers have implemented the Tripartite Advisory on managing workplace harassment.

The Association of Women for Action and Research's (AWARE's) Sexual Assault Care Centre saw 108 cases of workplace-related incidents in 2017, a rise from 91 cases in 2016 and 66 cases in 2015. This suggests workplace harassment is a common problem that employees are increasingly voicing out against.

Can the Ministry intensify promotion of the Advisory standards to employers, including setting up and maintaining a public database for employers to voluntarily declare that they have written policies to manage workplace harassment?

Sexual Harassment in the Workplace

Mr Dennis Tan Lip Fong (Non-Constituency Member): Mr Chairman, in the last few months, the topic of sexual harassment in the workplace has been hotly discussed globally. Many, mostly women, have taken to social media to talk about their experience in facing and dealing with sexual harassment at the workplace.

Minister Lim Swee Say told the House last year that TAFEP received 800 complaints over the last three years, of which fewer than five were about workplace harassment. It was not clear if these included sexual harassment cases.

This contrasted with the survey done by AWARE in 2008 with 500 respondents where 54% of the respondents experienced sexual harassment at the workplace. But more recently, according to a Straits Times report on 10 December 2017, one in four cases at AWARE's Sexual Assault Care Centre are about workplace harassment. We have also read press reports of such cases in the past year.

Are there sexual harassment incidences happening at our workplaces which are not being surfaced? Due to a variety of reasons, for example, out of fear of repercussions at the workplace, affected persons are highly and likely to be reluctant to report sexual harassment at their workplace, especially if the perpetrator is a superior. This is especially so if company policies are not explicit on what constitutes sexual harassment, and what standard of procedures are taken when reports are made.

Minister Lim Swee Say had said that TAFEP works with NTUC and the Singapore National Employers' Federation (SNEF) to conduct regular courses to manage workplace harassment and have trained a fair amount of company representatives in the past two years.

However, the measures in TAFEP guidelines are not prescriptive, and the Ministry does not track how many firms have implemented the recommendations. At present, the TAFEP guidelines are clear and good in giving specific guides to employers on what they can do to reduce incidences of workplace harassment. However, the guidelines still place a bit more emphasis on affected persons taking responsibility for their own workplace safety – keeping alert, looking out for signs, and understanding what constitutes harassment.

There is less emphasis, however, on educating staff on how to not harass, and the consequences of doing so. The guidelines also do not illuminate on sexual harassment in detail. As seen in recent debates around the globe, it can be sometimes ambiguous to perpetrators on what constitutes sexual harassment.

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I would like to propose that MOM should issue definitive guidelines on workplace harassment. Such guidelines can include clearer definitions of sexual harassment as well as to take into account the concerns I have raised earlier. MOM should also keep track of companies which have implemented the recommendations made in the guidelines, and whether guidelines are followed through in reported cases.

Finally, may I suggest that MOM could consider carrying out a fresh survey to get a more realistic picture on the incidence of sexual harassment at the workplace in Singapore? It may provide a better picture so as to help the Ministry as well as non-government organisations (NGOs) to take a more focused approach to handling all related issues more effectively.

CPF Retirement Funds

Mr Chong Kee Hiong: Chairman, just last month, Minister Teo shared in this House that in 2016, 58% of active CPF members at age 55 met the Basic Retirement Sum. Does the Ministry have the gender breakdown for this group that meets the Basic Retirement Sum? Are women as equally represented in this group as men? Is more being done to encourage top-ups and transfers?

Among the remaining 42% who have not accumulated enough for the Basic Retirement Sum (BRS), 55% were Workfare Income Supplement (WIS) scheme recipients. This means that we have a substantial number, most of whom are low-income earners, who will barely have enough for retirement. We have not even included the numbers of those who are not active CPF members. Does the Minister also have the projections for the amount needed each month for an individual in retirement in the next 10, 20 and 30 years? Based on these projections, the Basic Retirement Sum drawdown forms what proportion of the total amount needed?

Strengthening Retirement Adequacy

Mr Zainal Sapari (Pasir Ris-Punggol): It is a global phenomenon that life expectancy is increasing in many countries. Studies show that global life expectancy will increase, on average, by two and a half years every decade, or an increase of three months every year or six hours every day. Singapore's life expectancy is increasing by three and a half years every decade. So, if you were born between the 1960s and 1980s like me, half of us can expect to live for over 90 years. For those born from 2000 onwards, 50% can live beyond 100 years.

I had made a call in my Budget speech for our tripartite partners to consider gradually making employers’ CPF contribution rates to be the same for all workers up to 67 years of age to help with retirement adequacy. I do acknowledge it will be difficult for the tripartite partners to reach a common consensus. Given the circumstances, perhaps MOM can help members to get better returns from the CPF Investment Scheme (CPFIS).

The Minister mentioned last year at COS that MOM will review the CPFIS to better serve the interest of CPF members. I am concerned that some members are investing through the CPFIS even though they are not financially knowledgeable. They may not fully understand the risks and costs involved, and this could be detrimental to their retirement adequacy.

Can the Minister provide an update on this review, in particular, with regard to how we can help CPF members have better awareness on how much they actually understand the financial implications before they decide whether to invest their CPF savings?

Silver Support

Assoc Prof Daniel Goh Pei Siong: Chairman, Sir, I have argued in my Budget Debate speech that Silver Support payouts to needy seniors based on HDB flat type may cause hardship for the seniors as well as send the wrong signals. Seniors who meet the criteria for Silver Support are already means-tested to be requiring cash support to meet their everyday needs. They are rigorously means-tested to have low lifetime wages, live in an HDB flat, not own large properties and have low household support. The HDB flat type is not part of the means-testing. However, seniors who live in larger flats get less payouts though they are just as needy as those who live in smaller flats.

This does not make sense. The seniors who qualify for Silver Support are already means-tested to be needy. The size of the flat that they happen to live in does not make them more or less needy. Many seniors often do not have a choice of which son or daughter to live with, or the size of the flat could be a legacy. Having payouts tiered according to flat types seems to signal two things to seniors and their families. One, it is better for a senior to stay with the child with a smaller flat or to live alone. Two, it is better for the family to downgrade to a smaller flat. These signals go against the thrust to get our seniors to age in place. Can the Minister explain the rationale behind the tiered payouts?

I also have several questions to address other specific concerns. What is the breakdown of beneficiaries of the Silver Support Scheme by gender? Since the payouts started, how many beneficiaries have lost their eligibility for Silver Support and what were the reasons?

The Minister had said that seniors who did not qualify for Silver Support could appeal for a review of eligibility. How many appeals have been received so far? Out of these, how many were approved? What were the main reasons when the appeals were not approved? On the appeal process, how can a senior make the appeal? What documents or documentation are required for the appeals?

Employee CPF Contribution Flexibility

Mr Leon Perera (Non-Constituency Member): Mr Chairman, Sir, when we discuss retirement adequacy, we speak of replacement rates – the ratio of retirement income to pre-retirement earnings.

Nowadays, many PMETs are finding themselves retrenched, being unemployed for stretches of time, and/or having to take pay cuts later in life. As a result, the replacement rate from just CPF LIFE payouts may increase as a result of their income dropping later in life.

In the case of people who are in this at-risk group who have already reached a CPF Minimum Sum, and who can show their income has dropped severely, can MOM consider allowing them on an appeal and for a limited time to contribute a smaller amount in employee CPF so as to free up more cash for their day-to-day needs? That would mean that their CPF does not grow quickly and would get less CPF LIFE payouts when they retire, but they will still get their CPF LIFE payout generated by the Minimum Sum. And if their working income has dropped drastically, then their smaller CPF LIFE payout in future would still achieve a reasonable replacement rate with less employee CPF paid for some years prior to retirement. I hope MOM will consider this.

CPF LIFE and Women

Assoc Prof Daniel Goh Pei Siong: Chairman, Sir, the gender differentiated premiums for CPF Life compounds the effect of the gender income gap. This gap stands at 18% and has not changed in a decade. It suggests we have hit a structural limit to closing the gap by improving the educational attainment of women. To put it simply, this structural limit is that women's participation in the workforce tends to follow the M-curve, leaving employment in their 30s and 40s to provide caregiving for children or aged parents.

In general terms, the current gender income gap means that women will have 18% less CPF savings than men when they enroll in CPF LIFE. With the gender differentiated premiums, women will get less income per month from CPF LIFE than men.

The argument for gender differentiated CPF LIFE payouts is that it is fair because women as a group live longer than men. The corollary is that a unisex CPF LIFE with the same payouts for men and women will make men "cross-subsidise" women for living longer. I do not know why men "cross-subsidising" women so that everyone can have a reasonable retirement income until they pass on is so terrible a notion.

Let us take a step back and consider this. Women are already disadvantaged by the gender income gap and the unpaid caregiving in the middle of the M-curve. Should not women be given the slight advantage at the end of their lives, just in terms of CPF LIFE payouts, for the sacrifices they willingly take up during the most productive phase of their lives?

The other argument for gender differentiated CPF LIFE payouts is that it is following the industry norm for annuities. But CPF LIFE is not a commercial product sold by a private insurer. It is a national pension programme that combines commercial standards and the social protection concerns of a progressive Government. The retirement inadequacy of women is a major social protection concern in our ageing society.

Support for Caregivers

Mr Kok Heng Leun: The 2017 study on Singapore's older family caregivers by CARE showed that caregivers above 70 years old are primarily spouses, 90% of whom are female. More than half of these older family caregivers do the work alone. Many of them are in declining health themselves, with 30% showing symptoms of clinical depression. Despite their frailty, they dedicate up to 60 hours a week in caregiving.

In another Ministry of Social and Family Development (MSF) survey on informal caregiving, it was shown that caregivers experienced substantial stress due to financial stress arising from caregiving. This was especially acute with younger caregivers because of their multiple commitments, as these so-called "sandwich" caregivers have to work, tend to their children and care for their elderly parents. If we aspire to be a caring society, then we cannot be negligent towards caregivers. The elderly folks taking care of their spouses, caregivers for the disabled, or the above mentioned "sandwich" caregivers, they deserve our support and utmost respect.

To help them, one way is to provide tax rebates for families who have members who are caregivers. Another would be through direct allowances, with CPF contributions provided to caregivers to defray the loss of incomes due to caregiving and ensure long-term security.

In Australia, allowances are given to those with heavy and regular caring duties that result in forgone earnings. In Norway, municipalities which are responsible for long-term care services employed family caregivers directly and provide a wage and insurance plan.

We could also introduce a long-term care (LTC) insurance plan, and LTC insurance which individuals can tap on to pay for their own LTC arrangements as well as those of their family members. This would be similar to funds in Germany where social security or LTC insurance can be used for oneself or one's family members.

With our greying population, the burden of caregiving will increase significantly. To be a truly compassionate society, we need to put in place structures of support for the caregivers in our midst.

Older Workers and CPF

Dr Intan Azura Mokhtar: It has been reported that while our unemployment level remains low, there are substantial numbers of jobseekers who have been out of work for at least six months and who have found it difficult to get new employment. In other words, they are considered to be facing long-term unemployment. While the number of long-term unemployed has risen only 0.02% for the period 2015 to 2017, what is worrying is the re-entry rate of older workers aged 50 and above. It was found that less than 56% of resident workers aged 50 or older were able to re-enter the job market, compared to more than 66% for the national average.

How effective have the PCP, CSP or Adapt and Grow (A&G) schemes been in helping older workers aged 50 and above to re-enter the job market? How many of our older workers have managed to draw a salary equivalent to their last drawn salary after undergoing PCP, CSP or A&G as they re-enter the job market? How many have managed to see an increase in their monthly salary after having gone through PCP, CSP or A&G?

I would also like to urge the Ministry to consider reviewing the CPF contribution rates for older workers aged above 55. At the moment, once employees are more than 55 years old, the employee CPF contribution is reduced by 7% while the employer CPF contribution is reduced by 4%. This results in an overall reduction of 11% for their combined CPF contribution each month. This is not a small amount. As we encourage Singaporeans to continue to stay active, be gainfully employed and financially independent and make their golden years count, the Government also needs to help them to do so.

At the age of 55 or 56, many Singaporeans are still supporting school-going children as well as elderly parents and are still paying for their housing loans. Drastically reducing the monthly CPF contributions by 11% when they reach 56 years old would mean that they would need to pay more of their housing loan in cash or that they would need to pay for their children's post-secondary tuition fees in cash.

Bearing in mind that more Singaporeans are marrying later and having children later, this situation will be experienced by more Singaporeans as we live through this decade and the next couple of decades. I would like to propose to the Ministry not to cut the CPF contribution rates for Singaporeans aged 56 to 60. Let it remain at 17% for employer CPF contribution at 20% for employee CPF contribution. Many Singaporeans still want to work and be gainfully employed between the ages of 56 and 60, as they still have financial commitments to fulfil.

Between the age of 56 and 60, many Singaporeans are still healthy and active, both physically and mentally, and are still able to actively and productively contribute to their work and fulfil their job responsibilities. If retaining the CPF contribution rates for this group of Singaporeans would render them less attractive to be employed, there are two suggestions.

One, the CPF contribution rates can be staggered downwards progressively rather than a drastic cut once they cross the threshold of 55 to 56 years. For instance, upon reaching 56, the employer CPF contribution can be 16% and the employee CPF contribution can be 19%. Upon reaching 57, their employer CPF contribution can be 15% and the employee contribution can be 18%. The reduction goes down progressively 1% to 2% a year until they reach 60.

Two, the Government can come in to provide a buffer for CPF reduction in a bid to encourage older Singaporeans to continue to work, be financially independent and stay active. Where employers are reluctant to continue to pay the more than 13% CPF contribution, the Government can step in and plug the gap. For instance, upon reaching 56, the employer contributes CPF at the rate of 13% while the Government contributes 3%.

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I would like to urge employers to recognise the contribution of older Singaporean workers. They have a wealth of historical and institutional knowledge as well as work-related experiences that can be tapped on. Employers should find ways in which older workers, if they are less physically able to continue to perform the work that they have been doing, can undergo job redesign to become trainers or mentors to younger workers. It is a waste of talent and experience to let older Singaporean workers retire or even end up doing menial work.

More Inclusive Workplace for Older Workers

Mr Chong Kee Hiong: Chairman, we can expect older workers to comprise an increasing proportion of our workforce. Some seniors will even continue working beyond the re-employment age of 67. We should support those who wish to remain active at work to contribute their experience and expertise. Job redesigning and the implementation of age-friendly work practices will become increasingly important and pervasive across different industries and sectors.

The Ministry had enhanced the WorkPro Job Redesign Grant in July 2016 to encourage companies to redesign jobs for our senior workers. More than 600 companies had applied for the grant to date, benefiting over 9,500 older workers. May I ask how far are we from the Ministry's target of the number of companies it wants to attract for this grant? What is the sectoral breakdown for the companies which had applied successfully? Does the Ministry have information on the penetration rate for different sectors and why some sectors attract more successful applications than others? I would also like to ask about the proportion of companies which enjoyed productivity gains after job redesigning with the grant.

Since so many firms have utilised the grant, is there a platform for best practices to be shared so that other companies can benefit from faster and smoother workplace or workflow redesign to better suit older employees? What measures does the Ministry have to raise awareness about the availability of the grant and share the stories of successful applications? Could the Ministry make it mandatory for all public contracts for tender to include a term and condition that suppliers have to adopt these age-friendly practices?

Due to the emergence of new technologies, all of us must be prepared to do things differently for the same jobs or experience career conversions. Such changes are challenging for many senior workers.

The Minister for Finance mentioned in his Budget Statement that the PCPs have helped more than 3,700 mid-career individuals take up new jobs last year. Does the Ministry have details of the number of beneficiaries in various age groups? What is the proportion of individuals aged 60 and above? Does the Ministry have plans to allocate more resources to train and support seniors who make such career transitions?

Would the Ministry also share a progress report about older lower- to middle-income workers involved in the Work Trial scheme which enables them to try out new careers? What is the success rate and how many workers above the age of 60 have benefited?

Helping Senior Workers Thrive

Ms Tin Pei Ling (MacPherson): Sir, there are seniors who want to work, either out of passion or compelled by financial needs. In the course of my community work, I have met a good number of seniors who have expressed interest in working and, yet, despite relevant experience, find themselves stonewalled after employers find out about their age. Sadly, they could only turn to menial jobs that are physically demanding. Is this ageism?

Looking ahead as our economy evolves, there will be fewer jobs that demand labour but more jobs requiring intellectual wisdom. The elderly tomorrow will be better-educated and tech-savvy. If we do not combat ageism now and start changing how we structure work, everyone will soon lose out, especially as our population ages rapidly. To be clear, this is not to ask for special privileges. Assessment should be based on merit. But what if a senior candidate is denied the chance, not because of his innate ability, but because the work environment, process and job roles were designed against them?

Therefore, it is imperative to create employment opportunities for seniors and a favourable environment to help them thrive. What is MOM doing to stamp out ageism? Would MOM consider adding teeth to the legislation?

Alas, legislation is a crude though effective way of combating ageism. More importantly is how do we redesign the workplace and work for seniors? Apart from the grants available, could the Government take the lead in testing how work environment, workflows, job role designs and compensation and benefits, such as health benefits, CPF contributions and leave conversion, can be adapted and optimised for senior workers?

Not all seniors will choose to work. Some may choose to volunteer or pursue unfulfilled dreams. But let us just make the workplace elderly-friendly and give the seniors an option to decide for themselves.

Productivity of Older Workers

Mr Chen Show Mao: Sir, many Members have spoken on the importance of our older workers to our future. I agree with them. I would like to urge that we give importance to raising the productivity of older workers and to job redesign as a means to achieve that by making it part of the ITMs, in addition to leaving it to the efforts of individual employers.

Could we expressly identify Job Redesign for Older Workers as a key component of each ITM to be set out among the suite of initiatives for improving productivity in any given industry, so that we may spur the collective thinking that can go into finding better solutions of Job Redesign for Older Workers, and direct some of the industry’s efforts at innovation in this direction? Perhaps, resources could be pooled by companies in the industry to develop best practices, to modify tools and equipment for use off-the-shelf by older workers throughout the industry?

As businesses in our industries think about how to change, even disrupt, processes in the workplace in order to generate greater value on the back of better-used resources, could we make Job Redesign for Older Workers a required part of the syllabus?

We know productivity is one of the four pillars supporting the growth and competitiveness plans of an ITM. Could we envision Job Redesign for Older Workers as a key component of ITMs: a third Horizontal, along with promoting ICT adoption and Skills development? It can help to support the industries and produce improvements across the economy in the face of an ageing workforce.

Non-discrimination in Employment

Mr Muhamad Faisal Bin Abdul Manap (Aljunied): Surveys conducted over the years continue to indicate that racial discrimination remains an issue in Singapore. These surveys, coupled with personal accounts, showed that racial discrimination is prevalent, specifically in the areas of housing and employment. Despite the publication of fair employment practices by MOM, accounts of employment discrimination remain.

For example, in the recent survey conducted by One Singapore, 48% of the Malay respondents and 41% of the Indian respondents and respondents of other ethnicities said that they face discrimination when applying for a job. The same survey also said that 20% of the Malay respondents and 18% of the Indian respondents and respondents of other ethnicities said that they very often or always felt discriminated against when applying for work.

Such responses suggest that the current Fair Employment Practices under TAFEP have not addressed discriminatory employment practices as successfully as it could, even if the number of such complaints has, indeed, gone down over the past year. If anything, these surveys show a possible under-reporting of discriminatory employment practices.

The issue with discrimination and discriminatory practices is that people can feel and believe that they are not behaving in a discriminatory fashion when they actually may be. Discriminatory behaviour can be latent. They can be casual. People often do not consciously try to be racist even when the actions actively marginalised others or, at least, make others feel uncomfortable or unwelcome.

I also understand that Singapore has recently ratified the International Convention on the Elimination of All Forms of Racial Discrimination in November last year. I would, therefore, like to ask how the Ministry would work and also to better communicate with various stakeholders to fulfil the Government's commitments under the Convention to better deal with discrimination. Would MOM consider working with the Ministry of Culture, Community and Youth (MCCY) to strengthen existing enforcement procedures against discriminatory employment practices?

Employment for People with Mental Illness

Assoc Prof Daniel Goh Pei Siong: Chairman, Sir, in many jurisdictions, there are laws that ban the use of pre-employment questionnaires asking jobseekers about their mental health, to reduce discrimination. In 2016, the Minister replied to my question on doing the same here that such declarations will not disqualify a candidate from being considered for the job. However, the reality is not so rosy. In October 2016, The Straits Times reported on employment discrimination faced by people with mental illness, in which several interviewees said that they felt the “sense of societal rejection most acutely while job hunting".

I understand that job applicants who think they have been discriminated against could report the case to MOM, which will then investigate to make sure that the employers are conducting fair and progressive recruitment practices. The problem is that hard evidence of discrimination often does not exist, as the discrimination is often not communicated or is only verbally communicated. Can the Minister please share how many cases of discrimination on the basis of mental illness have been reported to MOM and the outcomes of the investigations by MOM?

Sir, we have done quite well in encouraging employers to hire and integrate people with disabilities into the regular workforce. The culture of inclusive and progressive employment is setting in. The mindsets of employers and consumers have been changing. I believe the Government could and should extend the same experience to promote the inclusive employment of people with mental illness and change the prevailing prejudices against mental illness.

The World Health Organization has estimated that, in developed economies, one in four people have a mental illness some time in their lifetime. Inclusive employment of people will go a long way towards combating society’s prejudices against mental illness. Inclusive employment will assure people with mental illness that seeking help for their illness will not prevent them from gainful employment in the future which, in turn, will help them integrate into society and minimise relapses.

The Chairman: Mr Zainal Sapari, please take your two cuts together.

Uplifting Low-wage Workers

Mr Zainal Sapari: Sir, the Progressive Wage Models (PWMs) in the cleaning, security and landscaping sectors have helped over 70,000 low-wage workers to become more productive through skills training and earn higher wages. The effects of the PWMs are not one-off. The cleaning and security PWMs were recently enhanced to provide these workers with year-on-year increments in wages.

These planned built-in increases in wages will partly address the problem of "down-waging" when their contracts are being renewed. It also helps the service providers to manage business cost better when they bid for contracts as the future manpower cost is more predictable. Would MOM look at extending the PWM to more sectors, such as through industry-led or voluntary arrangements?

I would also like to ask what more can be done to improve their wages and employment conditions. Could we review the EA to make it more pro-low-wage workers? For example, could the pay for working on the rest day be standardised, regardless of whether it is at the request of the employee or employer? Many employers now find ways to pay only the lower rates applicable for work done at employees’ request although it is really them who made the request. Could the Annual Wage Supplement (AWS) be made mandatory? Could we explore the possibility for employers to pay the medication cost for outpatient treatment done at company-appointed clinics or Government polyclinics for non-chronic illnesses?

Mandating Proper Rest Area for Workers

I would like to raise the issue of rest areas provided by companies for their workers. In the low-wage sectors, such as construction, landscape and security, the workers often find themselves deployed at various sites throughout Singapore. At these places, companies may provide good, proper rest areas for their permanent employees. However, when it comes to the outsourced workers who slog at these sites, they often find that there are no proper rest areas provided to them. Neither are they allowed to share rest areas provided to the permanent employees. These workers also put in effort and hard work into their job duties, and the fruits of their labour often result in a better environment for everyone at the site.

These workers deserve the proper dignity of having proper rest areas so that they can carry out their work more productively. Thus, I would like to call for a review of the Workplace Safety and Health (WSH) guidelines to incorporate compulsory designated rest areas for outsourced workers, such as cleaners, landscape workers and security guards, at their respective workplaces.

Strengthening Workplace Safety and Health

Mr Melvin Yong Yik Chye (Tanjong Pagar): Mr Chairman, in our national quest for industry transformation, many sectors are focused on technology adoption, productivity improvement and workforce development. These are important, but it is critical that we do not take WSH for granted. On the contrary, we must constantly ask ourselves how can we make WSH more pervasive in every workplace?

In Finland, it is mandated that there must be one elected Occupational Safety and Health representative in workplaces where there are at least 10 employees working regularly. Should Singapore have a mandatory WSH officer in every company?

While we ponder over this, perhaps a more practical approach would be to make it compulsory for companies to appoint a WSH representative as part of the certification for BizSAFE Level 3. There is currently no such provision. For now, companies must appoint a Risk Management Champion (RMC) for BizSAFE Level 2. With structured training, we believe that the role of these RMCs can be expanded to serve as WSH representatives.

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With more WSH-trained staff on the ground, one area that we can do better moving forward is to encourage better near-miss reporting to reduce the occurrence of accidents. A structured and well-participated near-miss reporting regime would help to better identify dangerous work conditions and early interventions can help bring down the accident rate.

While it is important to have preventive measures to reduce workplace injuries, it is equally important to help workers return to work in the unfortunate event of an accident. At last year’s COS debate, I highlighted the need for a support framework, beyond the existing Workplace Injury Compensation Act (WICA), to help our injured workers return to work. I am heartened that the tripartite partners launched the Return-To-Work (RTW) Programme in November 2017.

Can MOM provide an update on employers’ participation in near-miss reporting and the RTW Programme? Are there any plans to make participation in these two initiatives mandatory in the years ahead?

Also, the RTW grant is currently restricted to SMEs and does not cover cases involving vocational rehabilitation. To promote and deepen the RTW culture, can MOM consider extending the grant to non-SMEs as well as to cover vocational rehabilitation?

While much of our WSH efforts today focus on workplace safety, physical health and mental well-being seem to have been neglected in our WSH efforts and conversations. With an ageing workforce, workplace health issues will likely become more prevalent in the coming years.

Prolonged exposure to health hazards at work may result in work-related illnesses, some of which may even be irreversible. A build-up of stress and fatigue can also lead to distractions, raising the risk of getting injured at work. Occupational health management is, therefore, critical to ensure that our workers are healthy at work and can perform their roles effectively and productively. Beyond workplace safety, are there any upcoming plans by MOM on workplace health issues as part of Total WSH? Just as we have Total Defence, we must endeavour to have Total WSH.

Workplace Safety and Health

Ms K Thanaletchimi: Sir, the basic rights of all working people to a safe and healthy work environment are imperative. Workplaces are generally regarded as safe physical environments by most. However, it is increasingly common for employees to be subjected to abuse or harassment. It can be physical, verbal and even via the Internet. Hence, there is a greater need for awareness and protection against all workplace abuse and harassment.

I advocate strongly for all organisations to adopt zero tolerance towards abuse and take firm steps to stamp out errant behaviours. All employees must be informed on the reporting and response procedure for workplace abuse and harassment.

Workplace harassment includes any conduct or behaviour that violates another person's dignity or create an unfavourable work environment, thereby posing a risk to that person’s safety and health. More can be done to educate employees on how to respond to workplace abuse and harassment. Often, the psychological trauma is neglected, but the long-term effect to overall wellness is no less severe.

For a start, an injury or harm as a result of workplace harassment must be treated with the same level of priority as an injury from a work-related accident. I urge the Minister to make the reporting of workplace abuse and harassment mandatory. It is important to understand the scale of the problem. Collating relevant statistics would allow for an in-depth study to identify possible interventions effectively.

Under the Protection from Harassment Act (POHA), even though a range of civil remedies and criminal sanctions is available to better protect people from harassment and related anti-social behaviour, it may not be sufficient to address individual concerns efficiently and cost effectively. Therefore, I propose to form a mediation body to address such cases efficiently and in a cost-effective manner. This will help to reduce the administrative and financial burden through Court proceedings.

It is, indeed, alarming that in recent months, there have been several incidents of online criticism of Public Service sector staff. I am very concerned about the growing trend of such a campaign as it will inevitably lead to cyber-flaming. Without the benefits of complete information, it is nearly impossible to determine the validity of the claim of either party. Affected employees will be subjected to greater distress and psychological trauma as a result, while the perpetrator gets away scot-free.

The Act needs to be enhanced to address such threats and to protect employees from not just workplace abuse, but from the cyber realm as well. As we put in measures to deter potential physical abuse, we must also look at measures to protect the cyberspace from unfounded attacks. This would also involve public education and, more importantly, how to provide the relevant psychological support for affected staff at the workplace.

The Chairman: Mr Kok Heng Leun, could you take your two cuts together?

Foreign Worker Recruitment

Mr Kok Heng Leun: Over the last year, there have been reports of appalling cases of foreign labour abuse, from over-crowded, unsanitary dormitories, to workers served expired food, to workers forced to accept less than half their promised salaries.

Yet, these are merely the cases that have come to light. In order to come to Singapore to work, many foreign workers have to raise significant sums of money to pay recruitment agencies, making them vulnerable to forced labour and debt bondage.

Therefore, even in cases when these workers are underpaid or not paid, or when they experience safety violations, they would rather stay silent, to avoid losing their jobs and, by extension, their ability to repay their debts. To target the root cause of these problems, I would like to ask the Ministry to look into helping these workers to reduce their recruitment costs.

In last year's COS, I have spoken about recruitment approaches in Korea, in which the Ministry has said that they would look into. I would, therefore, like to ask for an update on this issue.

Currently, based on our FCF before the submission of any EP applications, employers are required to advertise the job vacancies on the online Jobs Bank so that there are measures to ensure Singaporeans are considered fairly for these openings. At the same time, the Jobs Bank provides an added benefit of transparency. Jobseekers from Singapore or overseas can access the same vacancies directly without any interference from middlemen or recruitment agencies. Could we, therefore, look into extending this approach to other foreign non-domestic Work Permit vacancies?

This infrastructure that we already possess with the Jobs Bank can be applied here as a viable ready-made solution. By reducing the burden of recruitment costs, foreign workers will have improved mental health states, thereby increasing their productivity and overall work safety levels. Also, they will not shy away from reporting errant employers who flout workplace safety regulations or unjustly withholding pay.

Employment Contracts

The second issue of concern I would like to bring up is the non-issuance of contracts to foreign workers. At the moment, foreign workers accept work in Singapore based on their in-principle approval (IPA) which lists their jobs, pay and deductions. Yet, upon arriving in Singapore, many either realise that they have been duped by forged IPAs or that their key employment terms (KET) issued within 14 days of starting work, are not aligned with the IPAs. In fact, this KET does not even need to be signed nor is it an actual employment contract.

As a basic fair employment practice, MOM should mandate that a standardised contract be issued and signed by both parties and submitted to MOM before Work Permits can be issued. MOM's newly-announced Settling-in Programme for male construction workers could be an opportune time to educate the workers about KETs and employment contracts as well.

We must ensure that our workers are accorded rights and protection against abuse. We should, therefore, do our best to ensure that our foreign workers, often tasked with hard, menial labour to build our roads and homes, are working under humane conditions and never exploited.

Protecting Our Migrant Workforce

Mr Melvin Yong Yik Chye: Mr Chairman, one-third of our current workforce are migrant workers, and it is imperative that we continue to look into their well-being and ensure that they are fairly treated while working here in Singapore. Through the work of NTUC's Migrant Workers Centre, we have identified salary-related disputes as one of the most common issues affecting migrant workers. To minimise such disputes, how is MOM encouraging our employers to use electronic payment for their migrant workers' salaries?

Migrant workers here often worry about losing their jobs should they raise a complaint with the authorities. To encourage early reporting of salary-related cases, can MOM consider doing some degree of matching between companies submitting new Work Permit applications for fresh workers and migrant workers here who have requested for a change of employers?

Today, there are various efforts by different organisations to orientate new migrant workers who arrive in Singapore. Such efforts can be disparate. Does MOM have any plans to synergise these various efforts to holistically orientate and integrate our migrant workers, particularly in their early days in Singapore? A one-stop help centre can also serve to be a valuable resource and avenue of support throughout their stay here while working.

Many companies today still focus on quantity, instead of quality, when looking to hire migrant workers. Where possible, employers should leverage the experience of their current migrant workforce and do more to upskill them. In line with Singapore's overall productivity effort, will MOM introduce new measures to encourage employers to bring in higher-skilled migrant workers? Does MOM have any plans in 2018 to further tighten the in-flow of migrant workers in terms of skills and competencies?

Mandatory Electronic Payment of Salaries

Mr Louis Ng Kok Kwang: Sir, many employers of non-domestic workers continue to pay salary in cash. The only documentation that payments have been made is salary vouchers. However, salary vouchers are easily forged and might not tally with the cash amount paid. When workers lodge complaints and salary vouchers are disputed, it is very difficult for MOM to ascertain where the truth lies.

Will MOM consider making it mandatory to pay salaries to non-domestic workers through banks, creating an audit trail as to how much was actually paid? As we move into a cashless society, there is no doubt that all migrant workers will have a bank account.

Many states in the Gulf ‒ the United Arab Emirates (UAE), Kuwait, Qatar, Saudi Arabia and Oman ‒ have also implemented such a mandatory requirement. In addition, their laws require banks, payroll outsourced providers or employers themselves to certify monthly that full salaries have been paid, creating an early-warning system for the authorities.

The Chairman: Assoc Prof Randolph Tan, not here. Minister Lim Swee Say.

The Minister for Manpower (Mr Lim Swee Say): Mr Chairman, with your permission, I have asked the Clerk to place the MOM COS-in-brief on the seats of the Members at the start of the Sitting.

Mr Chairman, may I also seek your permission to display some slides on the LED screen?

The Chairman: Yes, please. [Some slides are shown to hon Members.]

Mr Lim Swee Say: Thank you, Sir. The employment landscape has changed in the past three years from 2015 to 2017, compared to the previous three years from 2012 to 2014.

Net job growth slowed from more than 100,000 a year to less than 10,000 a year. Retrenchment went up to 19,000 in 2016. The resident unemployment rate increased to 3.2% in December 2016. The long-term unemployment rate went up, too, to 0.8% in September 2016.

The reasons were partly cyclical but mostly structural: externally, faster pace of technology and innovation and keener and stronger competition; internally, ageing of the local population and the changing profile of our local workforce.

Manpower-driven growth of the past was no longer sustainable. Low productivity growth will weaken our economic competitiveness. Fast growth of foreign manpower will increase social tension and weaken our social cohesion. This is why we have to transform our economy to be more innovative, manpower-lean and productive.

As we transform, we are mindful that one main concern out there is about jobs. Will technology destroy more old jobs? Will foreigners take away more new jobs? Will we end up with "jobless growth" for our people?

Ms Jessica Tan, Mr Lee Yi Shyan, Mr Desmond Choo and Asooc Prof Faishal Ibrahim asked whether our locals have benefited from the economic growth and transformation efforts.

Again, comparing the past three years from 2015 to 2017 with the previous three years from 2012 to 2014, even though growth of foreign employment has turned negative, local employment growth has rebounded to 21,000 last year. Quality of local employment has improved, too. PMET share of the local workforce went up faster in the past three years than the previous three years.

In terms of wage growth, annualised real income growth of our residents for the previous three years is shown in grey and, for the past three years, it is shown in pink. So, grey means 2012 to 2014, and pink means 2015 to 2017. We can see that real income grew faster across all income groups, up from 2.3% to 3.7%. We can also see that wages at the 20th and 30th percentiles (P20 and P30) not only grew faster than before but also higher than most income groups.

Sir, economic and workforce restructuring is never painless, but we have to do what is necessary. We are certainly in a better shape today. In the past three years, manpower growth has slowed from an average of 4% to 1%, while productivity gain has grown from 0.4% previously to 1.8% over the last three years on average, 1.8% per year over the last three years.

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Having transformed from a high manpower growth, low productivity gain of 4 + 0.4 = 4.4, or 4% manpower growth and 0.4% productivity growth, to give us 4.4% gross domestic product (GDP) growth, from 2012-2014, we have transformed to 1 + 1.8 = 2.8 in the last three years. That is, 1% manpower growth and 1.8% growth in productivity, to give us the average of 2.8% growth on GDP. We are now much closer to our future growth strategy of 1 + 2 = 3.

Sir, 1 + 2 = 3 is not a rigid formula for future growth but it is a framework to remind us of the need to become more manpower-lean and more productive if we want to ensure that our future growth will be more sustainable.

Mr Desmond Choo asked if the productivity growth is sustainable. Sir, we have made good progress but transformation is uneven, not pervasive enough across all sectors. To make transformation and productivity growth more sustainable, we must press on with four key thrusts. And these are: better job growth in our economy; better employment outcomes for our people; better protection for our workers; and lastly, better capabilities in our Singapore Workforce.

First, better job growth in our economy. Average net job growth of less than 10,000 a year in the past three years was not high enough. We need to bring it up to about 25,000 to 40,000 a year to provide enough jobs for a 3.4 million workforce growing at about 1%.

We must also keep improving the quality and attractiveness of jobs to meet the higher aspirations of our people. So, instead of developing Lean Enterprises individually, we need to develop Lean Industry collectively, especially for sectors that are less attractive to locals today. Minister Josephine Teo will elaborate on this.

Second, better employment outcomes for our people. Last year, under the Adapt and Grow initiative, we helped more than 25,000 jobseekers to secure jobs successfully. Even though the resident unemployment rate has declined since June last year, we are still concerned that unemployment in future is likely to be stickier, not due to shortage of jobs but shortage of skills and job-skill mismatches. I think the concern was also shared by Mr Low Thia Khiang.

We have enhanced the national Jobs Bank into an online job portal known as MyCareersFuture. We are also strengthening the Adapt and Grow Initiative to minimise missed matches and mismatches. Minister Josephine Teo will elaborate later.

Sir, as we make our economy more innovative, we must also keep our workforce inclusive, young and old, high and low in terms of age and skill profile, and for both genders.

For our older workers, the re-employment age was raised from 65 to 67 last year. Employment rates for mature workers aged 55 to 64 and 65 and over, have continued to improve. We are also actively promoting more companies to make better use of technology to make jobs Easier Safer and Smarter (ESS) for our mature workers.

Mr Zainal Sapari and Dr Intan Mokhtar suggested raising their CPF contribution rates. Mr Heng Chee How suggested to review the need for statutory retirement and to raise re-employment age further beyond 67. Sir, the Tripartite Committee on Employability of Older Workers was set up in 2005. The issues raised by Mr Heng, Mr Zainal Sapari and Dr Intan are important issues. The Tripartite Committee will study them.

Sir, for low-wage workers, I agree with Members that we must do more to improve their skills, productivity, careers and wages in a more sustainable manner. We introduced the PWM for cleaning in 2014, followed by landscaping and security two years later in 2016. The outcome is positive.

A few days ago, I came across a Straits Times article by NUS economists Kenneth Ler and Ivan Png titled "Impact of Progressive Wage Model", and I quote, "In sum, as a unique kind of "minimum wage" policy, the PWM has succeeded in raising wages without apparently reducing employment. More importantly, as a tailored, structured and progressive policy, it provides a wage ladder for low-skilled Singaporean workers, holding out its promise of growing income over time." Sir, we will make the adoption of PWM more widespread to benefit more workers. Minister of State Sam Tan will elaborate later.

Third, better protection for our workers. Our workforce is changing fast. We now have more PMETs, fewer rank-and-file. This trend will continue.

Our employment landscape is changing too. With the growth of the platform economy, we can expect to see more freelancers and SEPs. We are concerned for them in terms of skills upgrading, fair treatment, loss of income due to injury or illness and savings for healthcare and retirement. Minister Josephine Teo will elaborate on this later.

For the vast majority who still engage in jobs with the employer-employee relationship, Mr Patrick Tay and Dr Intan Mokhtar called for a review of the EA. I agree with them. Currently, EA covers three groups of employees. First, all workmen who are manual workers or blue-collar workers, including most technicians; second, all non-workmen who are non-manual workers or white-collar workers; and lastly, some but not all managers and executives with a salary cap of $4,500. With PMETs making up 56% of the local workforce now, going up to 65% by around 2030, it is timely to make a more fundamental change to the coverage of EA. In consultation with the tripartite partners, we have decided to enhance our current EA framework.

First, we will remove the salary cap of EA to cover all employees, including all PMETs. I am sure Mr Patrick Tay must be very happy to hear this because he has been championing this for many years. The exceptions are public servants, domestic workers and seafarers who are covered separately, such as by other Acts due to their nature of work.

All core employee benefits in EA, including annual leave, paid public holidays, paid sick leave and paid hospitalisation leave and other protection, such as timely payment of salary, maternity protection and childcare leave, statutory protection against wrongful dismissal and the right to preserve existing terms and conditions for employment transfer resulting from sale of business and business restructuring, all these will now be extended to all employees. And this will cover an additional 430,000 PMEs.

Mr Patrick Tay asked for more clarity on the types of transfers within or outside the scope of section 18A about sale of businesses and business restructuring. We agree that more clarity is useful. We will work with the tripartite partners to update our guidelines on this.

Second, we will extend additional protection on hours of work and overtime payment to more workers. For workmen, the current salary cap of $4,500 already covers more than 99% of workmen. So, there will be no change. But for non-workmen, the current cap of $2,500 will be raised to $2,600 so that this enhancement will extend coverage to half of our workforce. As for overtime pay, the salary cap for non-workmen will be revised upwards, from $2,250 to $2,600. About 100,000 non-workmen will benefit from this increase.

The third and final change to the EA concerns dispute resolution relating to salary disputes or wrongful dismissal. Currently, all salary-related disputes are mediated at TADM. If unresolved, the claims are heard at ECT. But wrongful dismissals are adjudicated by MOM, not ECT. We will shift it over to ECT to provide both employers and employees with "one-stop service". We will seek Parliament's approval of these amendments to EA later this year for implementation by 1 April next year.

Assoc Prof Daniel Goh spoke about protection for contract workers. The tripartite partners launched the Tripartite Standard on the employment of term contract workers in July last year. For contracts of 14 days or more, the Standard calls for companies to treat contracts renewed within one month from end of previous contract as continuous and cumulative in terms of length of service, for the computation of leave benefits and the notice period for early termination or non-renewal. It also calls for companies to provide training to ensure that their contract workers can perform their roles effectively.

Assoc Prof Daniel Goh asked for an update. As of end February, more than 550 employers, covering more than 30,000 term-contract employees, have adopted this Standard. So far, we have not received any complaint from any of these contract employers.

Assoc Prof Daniel Goh also suggested that we should conduct audits and surveys, and to include retrenchment benefits in the Standard. Being a new Standard, the focus now of the tripartite partners is to increase the adoption by more employers. So, we will look into the suggestions by Assoc Prof Daniel Goh when we next review the Standard.

Sir, another important area of protection for our workers is their safety and health. Through joint efforts of the tripartite partners, our WSH performance has improved. The fatality rate has dropped to 1.2 last year, the lowest level ever recorded for our workforce. Our next target, under WSH 2028 to be formulated, is to bring it down further to below one per 100,000 workers.

We are also committed to reduce workplace injuries as well as to enhance workplace health by embracing a mindset of Total WSH. Minister of State Sam Tan will elaborate later.

Last but not least, our fourth and probably one of the most critical challenges is to ensure that slower growth of our Singapore Workforce will not become the bottleneck in the future growth of our Singapore Economy. Today, our Singapore Workforce of 3.4 million is made up of 2.3 million locals, two-thirds of the total workforce; and 1.1 million foreigners, one-third of our total workforce. So, "two-thirds" local plus "one-third" foreign give us "one" Singapore Workforce.

With slower manpower growth into the future, we need to maximise the potential of our two-thirds local and our one-third foreign so that, together, we can maximise the potential of our Total Singapore Workforce. We must strive for two-thirds plus one-third is not just equal to one, but greater than one.

First, we must not allow two-thirds plus one-third to be less than one, and this could happen if unfair employers discriminate against our local workers. To prevent this from happening, we are pro-business but only to those businesses which are pro-worker.

We have identified 500 companies so far. They have the preconceived ideas that our local PMETs are either unable or unwilling to do the job. So, they write them off without even considering them fairly. We, therefore, put them on our FCF Watchlist. Their EP applications are subjected to additional scrutiny. This is to eradicate "nationality bias", as described by Mr Patrick Tay. In response to Mr Patrick Tay and Mr Chong Kee Hiong, these companies on our Watchlist come from various sectors, including employment agencies and placement companies.

Mr Patrick Tay, Ms Jessica Tan, Mr Chong Kee Hiong, Mr Lim Biow Chuan and Assoc Prof Faishal Ibrahim asked for an update. Since we started in February 2016, a total of 1,900 EP applications have been withheld or rejected by MOM or withdrawn by the companies. TAFEP worked with them to improve their HR practices. WSG, NTUC-e2i and Institutes of Higher Learning (IHLs) worked with them to recruit fresh graduates and our mid-career local PMETs. As a result, more than 2,200 Singaporean PMETs were hired by these companies.

One of these companies is an IT services firm with more than 1,000 PMET employees. It was placed on the Watchlist in February 2016. The company worked with TAFEP and the Infocomm Media Development Authority (IMDA) to attract and retain locals and hired about 200 more Singaporeans. After exiting from the Watchlist, this company continues to adopt fairer and more progressive HR practices. Indeed, these are win-win outcomes for both the business and the workers.

Another example, a private wealth management company with 80 PMET employees used to hire mostly foreign PMETs to serve mostly expatriate clients. It was placed on the Watchlist in February 2016. Since then, it has repositioned to serve both local and expatriate clients, and they hired 30 Singaporean wealth managers and PMETs, trained them here as well as overseas. After being removed from the Watchlist, the company continues to hire and develop more of our local wealth managers and PMETs to grow their business. Again, another case of win-win outcomes.

12.15 pm

So far, 150 companies out of the 500 companies have improved their HR practices and exited from the Watchlist. Of the remaining 350 companies, 60 of them have not been cooperative and showed no signs of improvement. We have curtailed their work pass privileges: no new EP applications, no renewal of existing EPs, until they adopt fair HR practices. Sir, we will continue to fight this win-lose mindset of "two-thirds plus one-third less than one", because it results in a waste of our precious human capital.

Second, for "two-thirds plus one-third, greater than one", we will make the "two-thirds local" better and strengthen our local core. I agree with Ms Jessica Tan and Mr Lim Biow Chuan. We will continue to enhance the employment and employability of Singaporean PMETs. We will create more jobs of the future for them through Industry Transformation. We will create more skills of the future in them through the SkillsFuture movement, and we will create more careers of the future with them through the Adapt and Grow initiative.

To ensure fair access to more jobs and better jobs, we will strengthen the FCF further, as suggested by Mr Patrick Tay. We will expand the requirement to advertise jobs on the national Jobs Bank before EP application to cover more employers, not just those with more than 25 employees, but also those with at least 10 employees.

At the same time, it will also cover more jobs with a salary of up to $12,000 as of today, to jobs with a salary of up to $15,000. This will take effect from 1 July this year. Sir, thirdly, for "two-thirds plus one-third, greater than one", we will make the "one-third foreign" better, a point made by Ms Jessica Tan.

As we moderate the intake of foreign manpower, especially foreign professionals, employers say they cannot find enough locals who have the skills and are willing to do the jobs. They say this has slowed down their pace of business transformation and growth. They feel our foreign manpower policy is too tight. To them, MOM is not pro-business enough.

But on the other hand, we hear ground feedback that there are still too many foreigners, too much competition here for jobs with our locals. They feel that our foreign manpower policy is too loose. So, to them, MOM is not pro-worker enough.

Sir, the policy objective of MOM is to strike a fine and dynamic balance between the two – open enough to be pro-business to support business growth, and yet, at the same time, tight enough to be pro-worker to enhance local employment growth.

We, therefore, stay open to the intake of foreign professionals, but continue to tighten the criteria for EP. We did that in 2014 and 2017. This is to calibrate the growth of EP holders and enhance their overall quality, both at the same time.

Assoc Prof Faishal Ibrahim asks for the outcomes. In the past three years, on average, we approved about 50,000 new EPs every year. But at the same time, about the same number of EPs were not renewed, and the growth of EPs, therefore, slowed to an average of 3,000 a year in the past three years. This is significantly lower than the peak of 32,000 in one year, in 2011.

On the whole, the local share of net growth in PMET employment improved from an average of 68% in the previous three years – 2012 to 2014 – to an average of 78%. So, from 68%, it went up to 78% in the past three years.

Out of every 10 net increase in PMET jobs in the last three years, seven to eight of them went to our local PMETs. Sectors where locals accounted for a large majority of the net growth in PMET employment include professional services, infocomm, healthcare, finance and insurance.

In short, we were able to draw on foreign professionals to help meet the manpower needs of the industry, while at the same time strengthen our local core. By working together, complementing each other more and competing with each other less, our Singapore workforce of "two-thirds local and one-third foreign" will be able to support a faster pace of industry transformation for us to compete better globally for better investments and jobs.

Mr Lee Yi Shyan asked for flexibility for employers to hire foreign PMETs, especially those with skills in great shortage in Singapore. Sir, let me clarify that the tightening of EP criteria should not be an issue for most foreign professionals with skills in great demand globally and in short supply locally. These include, for example, AI, data analytics, advanced manufacturing, digital services. These are the expertise often cited in the media by various business groups. Such professionals would command a salary premium and should be able to meet our EP criteria, in terms of salary, qualification and experience.

With the exception of those on our FCF Watchlist, as long as the employing companies have complied with our FCF in giving fair consideration to our local PMETs, they should generally be able to obtain approval for work pass applications for such specialists in short supply globally and in critical shortage locally.

In the exceptional situation where the EP applicants with the skillsets much needed here and yet are not able to meet our EP criteria, we do allow sector agencies to exercise some flexibility but only in a highly selective manner, on the condition that there is, indeed, a shortage of such skills here and that these foreign professionals are needed to help speed up our industry transformation and growth.

Sir, so on balance, our manpower policy is both pro-business and pro-worker. It is designed to improve the quality of both our local and foreign workforces in Singapore and enhance the complementarity with each other. This is so that we can meet the manpower needs of businesses for them to transform and grow and the career aspirations of our people for them to adapt and grow.

Guided by this policy objective, we will introduce further changes to make "one-third foreign" even better. For the S Pass holders who are mid-level skilled foreigners, their minimum qualifying salary was last updated in 2013. I agree with Mr Patrick Tay that it is timely to review. We will increase entry level salary by $200, up from $2,200 to $2,400.

As per current practice, those with more years of experience will need to meet higher salary thresholds. To allow companies more time to adjust, the increase will be done in two steps: $100 from January next year and the next $100 from January 2020. We will also provide a transition period for existing S Pass holders.

For Work Permit holders, there will be no further tightening for now, hence, no change to dependency ratio ceiling (DRC) and levy. As pointed out by Mr Melvin Yong and Mr Thomas Chua, our focus is to enhance the quality and productivity of these foreign workers.

Work Permit holders at basic skill level (R2) from non-traditional sources and the People's Republic of China (PRC), they are now allowed to work here for a maximum of 10 years. Those with higher skills (R1) in Services and Manufacturing are allowed to stay here for up to 18 years, and 22 years if they work in Construction, Process and Marine Shipyard.

In response to feedback from the industry, we will extend the maximum period of employment by another four years. So, for those on 10 years, will now go to 14 years. Those on 18 years, to 22 years; and from 22 years to 26 years. This will apply to all sectors and for both R1 and R2 to take effect from 1 May this year.

We will also give employers more pathways to improve the quality of their foreign workers. Besides skills certification, those who are more experienced with higher salary can also be upgraded from R2 to R1 pass. This is currently allowed for Construction, Process and Services sectors. We will now extend it to Manufacturing and Marine Shipyard sectors. We believe this will be helpful to companies that want to hire and retain their better Work Permit holders. It will take effect from 1 September this year.

Fourth, for "two-thirds plus one-third, greater than one", we need to make the "plus" better. To recognise and spread the adoption of progressive HR practices, we launched the Human Capital Partnership (HCP) Programme in February last year. One hundred and thirty-four HC Partners are now on board. They are from various sectors ranging from MNCs to SMEs. Together, they employ over 140,000 locals.

Mr Patrick Tay, Ms Jessica Tan and Assoc Prof Faishal Ibrahim asked for an update on HCP. Sir, HCP companies believe in transforming HR into HC, that is, Human Resource into Human Capital, not consumption of Human Resource but investment in Human Capital, turning HR into their most precious capital.

First, they have strong local core at all levels. Collectively, local PMETs account for about 90% of the total PMET workforce in these companies; not just more than 90% at the entry to middle level, but also more than 80% at the senior to top levels.

Second, their workforce is highly inclusive. Jobs are redesigned to be less physically demanding for the older workers. FWAs are offered to allow those with care responsibility at home to share job; and for employees to go on sabbaticals and pursue new opportunities within the company when they return; to pursue part-time studies to upgrade themselves; or to enable retired employees to return to work on a part-time basis.

Third, HCP companies believe strongly in strengthening local-foreign complementarity. They transfer skills from foreign experts to our local workforce and build up the local core in their senior management team.

One HC Partner which left a deep impression on me is Keystone Cable. Keystone Cable is a local SME with 140 employees. It is a maker of power and control cables with a strong foothold in the region. The plant is located in Senoko, not easy to attract locals. In fact, it has to work doubly hard to compete with MNCs for talent.

But as a flexible and nimble SME, it embraces the mindset of human capital development. Starting off as a delivery driver, Mr Jimmy Wong is now a Sales Executive. He brought in $1 million worth of sales in just six months in his new job. He is now being groomed to take on clients in overseas markets. The company was able to attract 20% more job applications last year. But what is even more impressive is that 100% of those they offered jobs to accepted their offers!

Sir, we will keep growing the HCP community, as suggested by Mr Patrick Tay. We will also promote adoption of tripartite standards, as reminded by Ms Thanaletchimi.

Fifth and last, we must strengthen the synergy between "two-thirds local" and "one-third foreign" so that the outcome will not be "equal to one", but "greater than one".

Globally, there is big concern that technology will take away many jobs. Yet, we see an amazing race to embrace technology. China is the world’s No 1 user of industrial robots today.

Globally, there is a big concern that foreigners will take away jobs from the locals. Yet, more countries are opening up even more to attract foreigners with the skills and expertise to offer, including China and Japan.

This reminded me of the story of two men walking in the jungle. A tiger was catching up on them. One of them squatted down to tighten his shoelace, the other asked "what are you trying to do?" He said, "I am tightening the shoelace". "But the tiger is coming on us, you still have time to tighten your shoelace?" He said, "Yeah, because I am getting ready to run." "You mean you can run faster than a tiger?" "No, of course not. But all I need to do is outrun you."

Now, in the global village, it is not possible to outrun technology, but we can outrun the competition. Those running slower will see more jobs being destroyed by technology. Those who run faster can create new jobs with technology more than the loss of existing jobs to technology. This explains why China is running fast with robots, and Japan is not slow, too.

With the help of robots and AI, Honda Motor, Canon and Pioneer are bringing production of car components, car navigation systems, digital cameras back to Japan. So, "Made-in-Japan” is making a comeback but, this time, with the help of not just robots, but intelligent robots and human co-workers.

With the world out there running fast, just imagine, what if one day, a "cheaper" China becomes better by using technology faster than us, and a "better" Japan becomes cheaper also by using technology faster than us. If this happens, they would become cheaper, better and faster than Singapore. What future will we have then?

12.30 pm

So, Singapore must run fast, too. In fact, the faster, the better, and we are. We are running fast in Advanced Manufacturing. At Bedok Industrial Estate, my constituency, Panasonic is building a Smart Factory there. It will have machines fitted with sensors interconnected to work with one another. Operations will be more manpower-lean and the local workers will be retrained to take on new and better jobs, such as robot coordinators.

The adoption of predictive management will mean near-zero operation incidents, such as no machine breakdowns, no product defects.

We are also running fast in AI. We now have AI Singapore, our National AI programme, to anchor deep national capabilities in AI. We also have the AI Business Partnership Programme to encourage and facilitate AI adoption in our industry, and the AI Apprenticeship Programme to develop AI professionals with key skills, such as machine learning and deep learning.

In digital services, the Monetary Authority of Singapore (MAS) is promoting fintech to realise our vision of becoming a Smart Financial Centre. It is working with industry to push through ground-breaking initiatives – blockchain, quantum computing, Big Data, AI and so on. In fact, we move so fast that, today, Singapore is one of the top global fintech hubs alongside London, New York and Silicon Valley.

We are also running fast in becoming a Smart Nation. In the 1980s, when I was still a young man, we became an Intelligent Island through national computerisation, office automation and computer-integrated manufacturing. This time round, we aspire to become a Smart Nation and a Digital Government through the Internet-of-Things (IoT), National Digital Identity, Smart Urban Mobility, Cybersecurity and more.

Sir, all these are important and strategic initiatives to bring and keep us at the forefront of global technology and innovation. However, to truly succeed in becoming a pervasively innovative economy and society, we need to do much more. We need to speed up the development and transfer of new and better global capabilities to our local workforce, a point made by Mr Chong Kee Hiong, not just in high-tech, high-profile and high-impact sectors, but in as many sectors as possible, and as quickly as possible. This is why we are piloting CTP because the potential scope for transfer and development of new capabilities is limited only by our focus and determination.

Mr Patrick Tay asked for an update. I will illustrate with a few examples. In Precision Engineering, smartphones are getting bigger but flatter and lighter. Hence, our local industry needs to use softer alloy and fit in more chips and components. Companies need to use high-speed, high-precision machines to prevent cracking and warping. Local engineers and technicians are also required to have new skills to advise on product design and material selection.

To compete well, our local industry needs to acquire new technologies and new capabilities to offer lower cost – to be cheaper; higher accuracy – to be better; and shorter cycle time – to be faster. So, cheaper, better and faster.

Under CTP, over a period of 15 months, we support our precision engineering companies to install high-speed high-precision machines and to bring in foreign specialists from Germany to train our local trainers, training locally as well as through remote coaching, who are now able to train our local trainees from several companies in the industry.

In the area of pharmaceutical transportation, today, more than 20,000 tonnes of global pharmaceutical cargo go through Changi Airport annually. The global market is still growing and growing very fast. But out of 209 companies certified by the International Air Transport Association (IATA) to handle such cargo, we have only 10 of them here.

To grow Singapore's market share in a global industry that is growing very fast, the Singapore Aircargo Agents Association (SAAA), the Changi Airport Group (CAG), the Civil Aviation Authority of Singapore (CAAS) and the industry, they want to work together to bring in IATA-certified trainers from the UK and Dubai to train a group of local specialists here, who will then be able to multiply this capability by training other locals. In total, we aim for up to 25 companies, up from the 10 currently to 25, to be able to obtain IATA certification. So, here is another example of capability transfer.

Sir, CTP is also relevant to the domestic sector. For example, in lift maintenance, the current approach is wait for the lift to break down, then repair, then wait for the lift to break down again. A better approach actually is to make all our lifts in Singapore into "smart lifts", using predictive data analytics and maintenance, to shift from corrective maintenance, which means waiting for failure, to preventive maintenance before failure, which is being done by many companies today, to predictive maintenance, or reduce the probability of failure. So, predict what is likely to happen before it happens.

Under CTP, we will partner leading global vendors to bring in overseas specialists or send our local trainers overseas so that, later on, they can return to train our local trainees here. In this way, we can anchor "smart lift" capability in Singapore.

Furniture manufacturing is another example. Not many of us know that our local furnishing industry is a S$6 billion industry with over 1,900 companies. Manufacturing facilities here focus mainly on made-to-order furniture. Today, we can design and make furniture using three-axis Computer Numeric Control (CNC) machines. I asked them what does it mean by "three-axis", they said these machines can move left, right, up, down, front and back.

In the words of the industry themselves, we are now still at Industry 2.0. To upgrade our local industry to 4.0, we will help them to bring in the 5-axis CNC machines where the tools can twist and turn, cut in different directions, to create contour and more complex shapes. So, this will also make the jobs of the craftsmen ESS! Under CTP, the Singapore Furniture Industries Council, together with WSG, will bring in specialists from Italy to train our local trainers and craftsmen.

Another example of a domestic industry is car maintenance. The market for hybrid cars grew by 200% in the last two years, from 6,000 a year to 20,000 last year. New capabilities are needed for the repair and maintenance of these hybrid cars, no longer just changing the oil filter, checking and replacing battery, lights and brakes, but have to handle a completely different system, such as carry out a battery load test, high voltage cable inspection, front motor test, hybrid transmission test and so on.

Currently, independent third-party car workshops have no access to certifiable training to improve the skillsets of our local technicians. Under CTP, we will partner the Singapore Motor Workshop Association to bring in specialists from Germany to train our local mechanics and to transfer the capability to our local industry.

Sir, these are just some examples to illustrate the point that the scope for capability transfer is tremendous – Hi Tech to Hi Touch; MNCs to SMEs; domestic to export-oriented industries.

We will support good projects from any company and any industry beyond those currently supported by economic agencies for specific sectors.

Mr Patrick Tay asked for details of CTP. To achieve real transfer of capability, project duration is mostly in months and years, not days and weeks. Specialists have to do more than just training but also coaching and working alongside our local workers and be their trainer, mentor and guide. Costs can often be the obstacle, especially for local enterprises.

Under CTP, we will co-fund the cost of capability transfer for foreign specialists to train our locals here or for local trainers to be trained overseas so that, over time, we will be able to anchor more capabilities here to upgrade our local workforce and industries as we transform, adapt and grow.

In reply to Mr Low Thia Khiang, I would like to assure him that in our project evaluation, we will consult the sector agencies and be guided by the various ITMs to ensure that these capabilities will really be relevant and able to strengthen our future competitiveness.

Mr Patrick Tay asked about the funding levels. Funding support will range from 30%, 50% and 70% of the cost of capability transfer, which includes the salary cost of the expert trainers, both local and foreign; cost of living allowances in Singapore and overseas; airfare and training equipment for the industry.

Projects with higher impact on the industry and those benefiting SMEs will receive a higher level of support. So, Mr Low Thia Khiang would be pleased to hear this. So, if the industry impact benefits mainly SMEs, you will get a higher level of support. Total funding per project is currently capped at $300,000. In exceptional cases, as highlighted by Mr Patrick Tay, where the cost of capability transfer is high, and local expertise is much needed but lacking, funding support of up to 90% and project cost of more than $300,000 will be assessed on a case-by-case basis.

Mr Desmond Choo said we should scale up CTP and accelerate the acquisition of new capabilities. I agree with him fully. We started the pilot late last year, just a few months ago. We will reach out extensively to create more awareness and generate more interest.

We hope our sector agencies and tripartite partners, including the Labour Movement and various industry groups, will make good use of CTP to fill the many capability gaps in a more pervasive manner. We hope to do this across all sectors, with all sizes of companies, as quickly as possible.

Sir, our strategy of "two-thirds plus one-third, greater than one" will help ensure that our Singapore Workforce can better support the growth of an innovative Singapore economy, and also create better skills, jobs and careers for an inclusive Singapore Workforce.

"Two-thirds plus one-third, greater than one" may be bad mathematics. However, if we work together, I am confident that even bad mathematics can be turned into good manpower policy for the benefit of all. Mr Chairman, in Mandarin, please.

(In Mandarin): [Please refer to Vernacular Speech.] Chairman, the whole world is changing rapidly. In a world where only the fittest will survive, we have adopted a two-pronged strategy.

First, shi shi zao ying xiong (heroes are born out of circumstances). The rapid development of technology and innovation is inevitable and cannot be stopped. If we refuse to make changes or are slow to adapt, we will definitely be eliminated. People say that it is better to suffer for the short term than to endure pain for the long term. To continue with our development, we must master new technology, transform quickly and strengthen our competitiveness.

With determination, we have achieved significant results. The economy has turned around, productivity has gone up, unemployment rate has gone down and wages are growing. This is something that we have achieved by working together. But we cannot be complacent. Economic transformation is like rowing a boat against the current. If we do not move forward, we will be pushed backwards.

Our second strategy is ying xiong zao shi shi (heroes create the right circumstances for themselves). As we strengthen our economic competitiveness, we must also optimise our unique strengths and advantages, as well as strengthen the cohesiveness of our workforce. This is critical.

We must ensure that the benefits and opportunities brought about by the future economy benefit every segment of our society, regardless of age, level of skills and income. We must pay special attention to older and lower-income workers. We must also help workers with young children and aged parents, so that they can look after their families while advancing their careers.

We must also learn from others and overcome our shortcomings, ensure that locals and foreign workers can work better together and benefit from each other. We should not be competing against each other within the country but against competitors overseas, in order to achieve better economic growth and better employment opportunities for Singaporeans.

For some countries, just strengthening their economic competitiveness is considered a success but, for Singapore, we have to strengthen our competitiveness as well as the cohesiveness of our workforce. To us, that is what success really is about.

There are two types of pathways in this world: easy paths and difficult paths. Some countries choose the easy path because it is easier and they can travel faster, but eventually, instead of reaching their destination, they reach a dead end.

What we have chosen is not an easy path. We know that in transformation and upgrading, there are no shortcuts. Although the path is not easy, but as long as our tripartite partners work together and help our workers, we will be able to move ahead of others. When we reach the destination, it is definitely not a dead end but a brand-new wide horizon.

Therefore, let us continue to forge ahead together on this difficult path with a common belief, as one economy, as one society, as one country. Only then can we ensure that Singapore continues to maintain a special place in the Association of Southeast Asian Nations (ASEAN), in Asia and the world. And only then can we ensure that our workers have better jobs, better wages, safe and happy homes, that each generation will be better than the last, and that lives continue to improve.

(In English): Sir, we firmly believe that a job is the best welfare, and full employment is the best protection for our people. Together with our tripartite partners at the national and sector levels, we have to do our best to transform across all sectors, for our economy to transform and grow, pervasively, as One Singapore Unlimited.

We also have to do our best to create better jobs, better skills for everyone to adapt and grow inclusively as One Singapore United. Advances in technology will destroy many old jobs globally and here in Singapore. But if we do more together to build new and better capability faster than our competitors, we can move ahead and stay ahead, to make every enterprise a better enterprise, every job a better job and every worker a better worker. Together, we can strive for innovative, inclusive and sustainable growth for everyone.

Ultimately, as Minister Heng Swee Keat said in Budget 2018: Together, A Better Future. On that note, I thank you, Sir. [Applause.]

The Chairman: Minister Josephine Teo.

The Second Minister for Manpower (Mrs Josephine Teo): Mr Chairman, I will be sharing what more MOM is doing to help Singaporeans have better jobs, better employment outcomes, better protection and better retirement adequacy. Let me start with better jobs.

Given that our workforce growth is slowing, our businesses have to become more manpower-lean. At the same time, businesses may need to redesign jobs to support an ageing workforce or be more attractive to local jobseekers, who now have higher aspirations.

MOM, together with several sector lead agencies, are helping businesses transform through LEDS. Ms Jessica Tan asked about its effectiveness. Since its launch in October 2015, we have built up good momentum. We have helped about 6,700 companies, which are three times the number a year ago. They come from all sectors and are of all sizes.

One interesting project was undertaken by the Gratify Group, a company which owns many different food and beverage (F&B) brands. The owner, Frank Lau, wanted to make sure that his company's expansion plans would not be held back as a result of a lack of manpower. Hence, when conceptualising its new brand which is called "Omoomodon", he set himself a challenge that every outlet must be able to operate with just three staff per shift, when most similar concepts needed at least five staff per shift.

In the F&B business, what Frank wanted was certainly a tall order. Please pardon the pun. But Frank believed that he needed to push the boundaries to have any chance of scaling the business in a sustainable way. He engaged the Singapore Productivity Centre to redesign his workflow and processes. They started with the menu, with food preparation very much in mind. They studied operational flows at many food outlets and collected data on time-consuming tasks. The end result included a central kitchen, self-service ordering and payment and optimised kitchen designs. Staff were also crossed-trained to prepare food and attend to customers.

The improved job scope resulted in better pay and higher retention. Salaries offered by Omoomodon are, on average, 15% higher than market rate, there is lower attrition as workers are more motivated to stay. Thanks to these measures, manpower required for each new outlet was reduced by up to 60%.

This example shows how transformation is possible. LEDS supports all of the firms. It provides a "one-stop" service for businesses, especially SMEs, to access schemes offered by different Government agencies, without having to figure out where and who to approach for what.

However, not all transformations need customised solutions like Frank did. Many businesses will benefit just adopting ready-to-go productivity solutions, for example, the Smart Management and Tracking System (SMTS). Using radio frequency identification (RFID) technology to manage, track and audit assets to reduce stocktaking time, the companies can enjoy much productivity improvement. It is useful for nearly all businesses in manufacturing and retail.

There are now more than 40 ready-to-go solutions pre-approved by Government agencies, such as the Standards, Productivity and Innovation Board (SPRING) Singapore, the Agency for Science, Technology and Research (A*STAR) and the Infocomm Media Development Authority (IMDA). These ready-to-go solutions have been tried and tested. So, there is no need for businesses to worry about ineffective solutions or fly-by-night vendors.

Through LEDS, we aim to make technology and innovation pervasive, not only at the enterprise level, but also at the industry level, to quicken the pace of transformation, and not just in one or two sectors but across all 23 ITM sectors. For instance, under the Lean Hotel Initiative, 16 hotels came together to collectively identify gaps and design industry solutions. In just four months, the hotels had achieved productivity savings of between 4.5% and 28%, without having to compromise service quality.

We also plan to go beyond the ITMs to non-ITM sectors, and are in discussions with several industries, such as furniture, farms, lifts and escalators, to support their transformation.

Mr Chairman, as businesses transform and jobs become better, so, too, must workers adapt. This is how we can achieve better employment outcomes. As mentioned by Minister Lim Swee Say, the Adapt and Grow initiative helped place more than 25,000 jobseekers into new jobs and careers in 2017, about 20% more than in 2016.

Broadly speaking, we aim to help both missed matches − where employer and jobseekers have not found each other, and mismatches − where there are skills or wage gaps that make it hard for the jobseeker to secure a job. Of the 25,000 jobseekers placed, about 60% involved missed matches. The jobseekers were job-ready but somehow missed finding the right employers. WSG and NTUC-e2i helped them to find a match.

Mr Patrick Tay and Mr Chong Kee Hiong asked for an update on our efforts to strengthen job matching through the national Jobs Bank. We are transforming Jobs Bank into a new platform called MyCareersFuture. MyCareersFuture will have new features to help jobseekers and employers find better matches. It will have intelligent job matching, and can recommend jobs to jobseekers that would best fit their skillsets. It will also highlight jobs that are supported by Adapt and Grow programmes, such as PCPs, to help bridge job and skill mismatches. MyCareersFuture has been up and running since 2 January this year and the portal will be officially launched in the second quarter this year.

Besides reducing missed matches, we helped to close skills or wage mismatches. Of the 25,000 jobseekers placed, 40% involved jobseekers with some form of mismatch. This proportion has grown significantly from just 25% in 2016.

Placements of mismatch cases doubled from about 5,000 in 2016 to about 10,000 in 2017. This reflects our more intensive efforts to address mismatches. As our economy restructures, job-skills mismatch will be a growing challenge. They can be very unsettling for individuals who have lost their jobs or are at risk of retrenchment. This is why our key focus has been to step up support for jobseekers with skills or wage mismatches, because they need more help. Last year, we strengthened support under PCP and CSP.

Assoc Prof Faishal Ibrahim, Mr Low Thia Khiang and Dr Intan Mokhtar asked how effective MOM's efforts have been in helping the long-term unemployed, older workers and mature workers. If Members recall, CSP provides a wage subsidy that helps to close the gap between what PMET jobseekers expect and what employers are prepared to offer.

With the enhanced wage support under CSP, placements have quadrupled from about 260 in 2016 to over 1,100 in 2017. Among the CSP placements, more than 80% were long-term unemployed. The retention rate of those placed has been encouraging. Within 12 months of placement, about 70% of those placed in 2015 and 2016 have remained in employment.

Besides CSP, we also raised the salary support caps of PCPs. PCP placements in 2017 were almost three times that in 2016. In particular, the proportion of mature PMETs, especially those who are 50 years old and above, has more than doubled.

Similarly, the proportion placed in mid-level jobs paying $4,000 or more has also doubled. Ms K Thanaletchimi would be happy to know that overall dropout rates for PCPs are low as more than nine in 10 participants complete the programmes.

Even in the healthcare sector which has a longer training period for PCPs, almost nine in 10 have successfully completed the programmes. For the minority who drop out, most have personal reasons, or find it challenging to adapt.

We have worked with the Ministry of Health (MOH) to reduce the duration of some PCPs, such as nursing, without compromising the quality of training. More importantly, we need to strike a balance between stringent criteria and processes to screen individuals and give jobseekers sufficient opportunities to start new careers.

One person who has started a new career is Mr Soon Sie Chye who is 44 years old. After graduating with a degree in Electronic and Electrical Engineering from Loughborough University, Sie Chye spent the early part of his career working as an engineer. More than 10 years ago, he made a career switch to join the banking sector, where he had a fruitful career, leading back office teams in different banks.

However, he always had a lifelong dream to set up his own business. In 2014, he took the plunge but, in less than two years, the venture failed and he became unemployed for more than a year. It was a challenging and stressful period as he just had a newborn. During this period, the family had to depend on his wife's income and their savings, while he soldiered on in his job search.

Sie Chye came across South Island Aquarium, a company specialising in imports and exports of aquatic plants and ornamental fish. Although he had to take a pay cut, Sie Chye was keen on the role as he felt the company had good potential and was excited by its expansion plans. The company was also keen to tap on his MNC and management experience.

To better prepare for his role as a Business Manager, Sie Chye was enrolled in the PCP for International Trading Executives. This is a one-year programme to bridge skills gaps in supply chain, trade finance and e-commerce. He is now five months into the PCP.

Mr Low Thia Khiang asked about the long-term unemployment situation. In fact, Sie Chye is one of the more than 6,600 individuals previously unemployed for at least six months, which is the definition of long-term unemployed, who found a job through the Adapt and Grow initiative.

This is a 25% increase in the number of long-term unemployed placed, compared to 2016. They account for close to 50% of unemployed jobseekers placed through Adapt and Grow when all the different programmes are combined. Realistically, not all of the long-term unemployed jobseekers will succeed in the new jobs that we help match them to.

But we are prepared to take some risk, through support programmes, to help them get on their feet. Otherwise, we risk the pool of long-term unemployed getting bigger and their families falling deeper into difficulties.

Today, with a growing economy and these programmes in place, the long-term unemployment rate for local PMETs has improved from 0.9% in 2016 to 0.7% in 2017. However, compared to a few years ago, the resident long-term unemployment rate remains slightly elevated. But it is not at its highest, contrary to what Mr Low Thia Khiang thinks.

Nevertheless, we believe there is still much more to do. Besides helping those already unemployed, like Sie Chye, we are also helping those at risk of displacement. One such example is Mr Vincent See. Vincent had spent a major part of his career performing IT support in the hospitality sector. However, when he saw his company restructuring to cut costs, he thought he should make plans. Although worried that he could not adapt at his age – he is 51 – Vincent also saw an opportunity to learn something new.

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Given the strong growth of e-commerce, he saw logistics as a growth sector and signed up for the Attach and Train programme for Logistics Executives. Unlike the usual PCPs, the Attach and Train programme does not guarantee a job at the start. This is because some sectors or employers are growing but are not yet ready to hire more. But rather than to wait, the programme helps jobseekers like Vincent build up their curriculum vitae (CV) to be ready for a new career when the opportunities come.

Vincent is currently six months into the Attach and Train programme with ST Logistics. The company has been suitably impressed by him and is also ready to hire. Although Vincent’s training attachment will only end this June, ST Logistics has already offered him full-time employment.

Vincent is one of 13,000 mature jobseekers helped through Adapt and Grow in 2017. He is also a very good example of how the Government can help a mature worker, who has taken proactive steps to overcome his fears, to find a new career in a growth sector.

These mature workers account for about half of all placements under Adapt and Grow. About half of them, like Vincent, are 50 years old and above. We now have over 100 PCPs in more than 30 sectors helping both displaced PMETs as well as those like Vincent who are at risk of displacement.

Last year, MOM announced stepped-up efforts to place local PMETs in five growth sectors with good potential for PMET jobs, namely, infocomm and media, professional services, finance and insurance, wholesale trade and healthcare. We have generated positive momentum. Placements in these five sectors accounted for about 50% of all PMET mismatch placements in the second half of 2017. About 50% were mature local PMETs.

Through this effort, we have gained new insights into how we can support the manpower needs of companies that are growing and transforming. The key is to engage the companies early, before they have firmed up their plans. By doing so, it is more likely that their existing employees can be a part of the company's future, instead of being just part of the past.

Our model of PCPs will, therefore, evolve. We no longer wait till workers are unemployed or retrenched to reach out to them. Instead, we work with companies ahead of time to put in place redeployment PCPs, such as in Consumer Banking, where existing staff are retrained and redeployed.

As the banks transform their frontline services, hundreds of bank tellers and cashiers are adapting to do digital marketing, data analysis and product development. These staff can avoid painful retrenchment and, at the same time, help their employers meet their new manpower needs. In 2018, we expect more placements to come from such redeployment PCPs.

Our Adapt and Grow efforts are not only targeted at PMETs. A sizeable proportion, about 40%, placed under Adapt and Grow are rank-and-file workers. Similar to PCPs for PMETs, we also have Place and Train programmes for rank-and-file workers to reskill to take on new roles. More than 2,000 workers were placed under such programmes in 2017, representing a more than 50% increase from 2016.

We have also piloted the Work Trial scheme in 2016. This scheme is targeted at jobseekers who are job-ready but are not sure about the specific jobs. It could also be that the jobseeker and prospective employers are unsure about each other. Through Work Trial, they have up to three months to assess each other, with Government bearing the cost. In 2017, the number of jobseekers placed through Work Trial has increased five times, from about 100 to 500.

One of them is Mr Muhd Sahfari. Sahfari left his previous job as a sales manager in an IT solutions company as he felt the environment was not quite suited for him. However, he was still keen on a sales position as he enjoys interacting with people. He found out that Crosstrack was hiring a sales manager. In case you are wondering, Crosstrack is a startup which provides an online marketplace to allow customers to source for the most suitable courier for their delivery jobs. Unlike his previous sales jobs which were focused on direct sales, Crosstrack's requirement of a sales manager includes operations management and liaising with delivery drivers. Sahfari was, therefore, apprehensive. He thought to himself, could he cope with the additional workload and does a tech startup offer sufficient job security? Therefore, he decided to sign up for Work Trial before committing on a permanent basis.

Through the Work Trial, Muhammad had the opportunity to try out a new job in an unfamiliar environment, in a startup. Not only did he enjoy the dynamic nature of a startup, he also picked up new IT skills. Crosstrack saw that he had the right aptitude and attitude and employed him on a permanent basis when the Work Trial ended.

So far, the Adapt and Grow initiative has been able to provide the appropriate interventions for jobseekers at different stages, as highlighted by Mr Patrick Tay. However, we are always looking for better ways to scale up, enhance existing programmes or introduce new ones which will help jobseekers. This year, we will make three enhancements to Adapt and Grow.

First, we will introduce three new Attach-and-Train PCPs by the second quarter of this year in areas where we expect manpower demand to increase, namely, AI Game Programmers, Robotics Engineers, and Food Production Specialists.

Second, we will also do more for our rank-and-file workers, a suggestion raised by Assoc Prof Faishal Ibrahim. In particular, to further encourage employers to hire long-term unemployed rank-and-file workers, we will raise the salary support for such workers under the Place-and-Train programme from 70% to 90% of monthly salary. We will also increase the maximum monthly payout to employers from $2,000 to $3,000.

Third, there is scope to enhance the upward mobility of lower- to middle-income workers by helping them take up better jobs. Part of this is done through efforts under LEDS to uplift and transform jobs. But the other part is helping workers to access such jobs. The Work Trial has proven useful in plugging information gaps. Without Work Trial, Sahfari would likely have missed out on a good career opportunity in a growth sector and Crosstrack would have missed out on a good hire.

Mr Desmond Choo will be glad to know that we will expand the current scope of Work Trial to provide workers with more opportunities to try out better jobs, specifically better paid jobs, and help companies which need more manpower to assess jobseekers. This was also a point which was raised by Mr Chong Kee Hiong.

We will call the enhanced programme Career Trial. Under the Career Trial programme, we will double the maximum training allowance from $1,200 per month to $2,400 per month. Further, the salary support to employers and the Additional Retention Incentive, will be available for all jobseekers who are unemployed for six months or more, instead of only for those unemployed for 12 months or more previously. We will also increase the maximum salary support to employers, from $3,600 to $5,400 per jobseeker over a six-month period.

Mr Chairman, the Adapt and Grow initiative is a viable way to help Singaporeans have better employment outcomes even as our economy restructures. We will continue to improve on the scheme designs and intensify our outreach to enable more Singaporeans to be matched to good jobs and careers. Mr Chairman, if you allow, I would like to wrap up this section in Mandarin.

(In Mandarin): [Please refer to Vernacular Speech.] Mr Chairman, the Adapt and Grow initiative had reaped significant results in the past few years. Through this initiative, we managed to help more than 25,000 Singaporeans find jobs last year. This is 20% more than the year before. In particular, there was an increase in the placement of mature workers, long-term unemployed and PMETs.

We will maintain the current momentum, enhance support and increase our scope of coverage through various programmes to ensure that Singaporeans are able to take up new jobs and adapt to the demands of this new era, even if they have to make a switch in their careers.

Mr Chairman, besides helping Singaporeans find good jobs, MOM also set up a tripartite work group (TWG) last year to study the challenges faced by SEPs. Last month, TWG submitted a set of useful proposals, which have been accepted by the Government. We will work with our tripartite partners to implement these proposals progressively in the next two years.

Firstly, with regard to contracts between service buyers and SEPs, a new Tripartite Standard on Contracting with SEPs will be launched.

Secondly, TADM will help mediate disputes between service buyers and SEPs.

Thirdly, we will work with interested SEP associations to develop occupation-specific frameworks to ensure that SEPs are equipped with relevant skills.

Fourthly, we will launch a new insurance product to mitigate SEPs' loss of income during prolonged injury or illness.

Fifthly, we will study how to promote adoption of the abovementioned insurance for higher-risk occupations.

Sixthly, the Government will pilot the "contribute-as-you-earn" model to help SEPs save in their MediSave accounts, and study how other corporate service buyers could also adopt this model.

I will elaborate on the implementation timeline for these proposals in English.

(In English): Mr Chairman, for the last decade, SEPs have constituted 8% to 10% of our resident workforce. At the COS debate last year, Minister Lim Swee Say highlighted the possible increase in the number of SEPs, given the emergence of the gig economy. This was the impetus for setting up TWG to look into the concerns of SEPs.

Before I give the Government's response to the TWG's recommendations, let me first provide an update of the SEP landscape, which will also address questions and concerns raised by Mr Thomas Chua, Ms Jessica Tan and Mr Kok Heng Leun.

From our most recent survey in 2017, the number of residents who took up self-employed work for at least six months in 2017 has grown to 223,500, about 10% more than the year before. This growth took place at the same time as regular employment among residents also went up.

All the increase in the number of SEPs came from those who did self-employed work as their main jobs, rather than as secondary sources of income. Such SEPs are referred to as "primary SEPs" because they depend on self-employment primarily for their livelihoods. Primary SEPs are also the group we are most interested in. Primary SEPs now constitute 8.4% of our resident workforce, still well within the range of 8% to 10% observed over the last decade.

What do we know about the age and education profiles of primary SEPs, and have they changed in 2017? By age, more than half of the primary SEPs are 50 and above; less than 10% are below 30. The age distribution in 2017 remains largely the same as 2016.

However, the share of primary SEPs with tertiary qualifications rose from 37% to 40%, in tandem with the rise in education profile among the local workforce. But it is still much less than the 55% tertiary-educated in the local workforce.

The most recent survey also showed a notable increase in the number of primary SEPs who said they preferred regular employment over self-employment. This group rose from 19% in 2016 to 23% in 2017.

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In other words, about one in five primary SEPs prefer to be in a regular job. However, they tend to be older and have lower educational qualifications. We are very keen to help them and Mr Ang Hin Kee asked how.

First, is to improve the SEPs' awareness of job matching schemes available and encourage them to come forward to the career centres run by WSG and NTUC-e2i. Our existing schemes, as well as the new Career Trial programme that I spoke about, can also help. Certainly, we should help career counsellors and coaches become more aware of these efforts so that they can provide the right advice.

But these efforts will need such SEPs to become active jobseekers. At present, more than 80% of them say they have not been looking for a regular job actively, even though they prefer it over self-employment.

For the vast majority of SEPs who continue to prefer self-employment as a career, we should also address their concerns and provide them with support. To recap, TWG noted in its report that although the SEPs were very diverse, there were four common challenges they faced. First, payment-related disputes; second, loss of income due to prolonged illness or injury; third, lack of CPF savings for healthcare and retirement; and fourth, lack of occupation-specific competency frameworks.

Mr Thomas Chua, Ms Jessica Tan and Mr Ang Hin Kee asked about MOM's response. We are grateful to the TWG members who include Mr Ang, for your well-considered and balanced recommendations. They were very constructive. The Government accepts all seven recommendations and will find ways to fully implement them. Let me share our plans.

First, payment-related disputes. Some observers have suggested mandating written contracts for all SEPs to minimise payment disputes. The TWG considered this but finds it impractical. This is because buyers of SEPs' services include micro-SMEs and even individual households, such as for private home tuition. Some purchases are of very small value

Instead, today, we formally launched the Tripartite Standard on Contracting with SEPs. This was developed with tripartite partners in line with the TWG's recommendations. It is an agreed benchmark which SEPs should encourage buyers to adopt. SEPs will be able to identify and contract with progressive service buyers who adopt the standard. Buyers who adopt the standard need to discuss and agree clearly, with the SEPs, terms of engagement, such as the range of services to be delivered, project timelines and milestones, payment schedules. These will have to be set out in writing.

The standard is a good start to make clear the working arrangements between businesses and SEPs. Over time, the standard will help shape contracting norms and entrench best practices.

But even with written agreements, disputes could potentially still arise. For SEPs with sector agencies, we encourage them to continue to approach their sector agencies. These sector agencies would be in a better position to help resolve disputes. For instance, the Land Transport Authority (LTA) facilitates mediation of disputes between taxi operators and taxi drivers. LTA is best suited for this role because, apart from being familiar with issues in the industry, it has convening power as the regulator of both taxi operators and taxi drivers.

For other SEPs, from September last year, TADM started piloting voluntary mediation when they have payment disputes with businesses. With immediate effect, TADM will extend voluntary mediation services to all SEPs who have payment disputes with businesses.

Additionally, the TWG recommended that a prolonged medical leave (PML) insurance product be developed to mitigate the SEPs' loss of income during prolonged injury or illness. Today, some SEPs buy additional riders on top of their private insurance plans to provide for this. However, there is a lack of an affordable standalone PML insurance product today. This means that SEPs have no alternative if they do not wish to buy the main insurance product. It is only available as a rider.

Observers and SEPs have also asked if service buyers should be made to buy insurance for SEPs, just as businesses buy work injury insurance for their employees. However, unlike a regular employee, most SEPs contract with multiple service buyers. It will not be possible to determine precisely how much coverage each service buyer should provide for the SEP.

We will, therefore, take a practical approach of making the insurance product available for SEPs to purchase for their own protection. I am encouraged that NTUC Income is keen to develop a PML insurance product that will fulfil the TWG's recommendations. Other insurance companies may also step forward to offer such insurance.

Let me now address the question of whether all SEPs should be compelled to have this type of insurance. SEPs are a diverse group. They can be found in numerous occupations, many of which have low-risk of injury, such as real estate agents. SEPs themselves have varying health conditions. We, therefore, agree with TWG that the purchase of PML insurance should largely be kept voluntary.

That said, we want to encourage widespread adoption of insurance by SEPs in some higher-risk occupations, as they are most in need of such protection. Making insurance coverage the norm for SEPs in these occupations would make clear to the buyers of their services that the insurance costs would be priced into their fees. This is only fair. As a start, we have identified two occupational groups in which to promote PML insurance coverage.

The first group is sports coaches and instructors. Collectively, Ministry of Education (MOE) schools are major buyers of their services. MOE has agreed in-principle to help shape a new norm by contracting only with self-employed coaches and instructors who have such PML insurance coverage. SEP coaches and instructors may then price the cost of PML insurance coverage into their bids for MOE's work or projects.

Another occupational group which will benefit from PML insurance are taxi drivers and private hire car drivers. The individual buyers of their services are really the commuters, and there are many. But there are significant intermediaries like the taxi operators and matching platforms like Grab and Uber.

MOM and LTA will study how to ensure that active taxi and private hire car drivers also have PML insurance coverage, together with these intermediaries, the National Taxi Association (NTA) and the National Private Hire Vehicles Association (NPHVA).

Together, sport coaches, taxi and private hire car drivers comprise about 30% of all SEPs. In consultation with relevant stakeholders, MOM will also work closely with MOE and LTA on the way forward to promote PML insurance coverage as a norm, starting with these two occupational groups. The aim is to have a viable plan and for a PML insurance product to be available in 2019.

The Government also accepts the TWG's recommendation to help SEPs save more regularly for their healthcare and retirement needs through a "contribute-as-you-earn" (CAYE) model. CPF is the cornerstone of our social security system. CPF schemes are not limited to regular employees. SEPs can also make use of CPF to save for their healthcare and retirement needs.

Currently, SEPs are already required to contribute to their MediSave accounts on an annual basis. They can additionally make voluntary CPF contributions to build up their retirement savings. Even though MediSave contributions are mandatory today, about one in four SEPs have not been keeping up with their MediSave contributions. The question is: why?

Well, this is because SEPs are given up to 12 months from the time income is assessed to make their MediSave contributions. A key challenge is that they may not set aside enough cash on a regular basis. So, when the time comes to make that lump-sum contribution to their MediSave accounts, they find it difficult to do so.

Without sufficient MediSave contributions, these SEPs may not be able to pay for out-of-pocket healthcare expenses or keep up with their MediShield Life premiums. They will face a longer-term risk of not being able to pay for their healthcare in old age. So, we are very concerned about them. It will be easier for them to make smaller, but more regular contributions as they receive the earnings. So, this is why the Government agrees to study how to implement the TWG's recommendation for a CAYE model for SEPs' MediSave contributions.

This means that a MediSave contribution is required as and when a service fee is earned, similar to employees today who pay CPF when they receive their monthly salaries. The service buyer or intermediary who contracts with the SEP will deduct and transmit the MediSave contribution to the SEP's MediSave account whenever they pay the SEP.

There is no change to the SEP's obligation to make the MediSave contribution and, for the time being, neither will we require SEPs to contribute to their Special Account to build up their retirement savings. While this is an important issue, this matter should be reviewed only after we have effectively addressed the problem of SEPs defaulting on their MediSave contributions.

Mr Chen Show Mao offered several suggestions to nudge SEPs to make voluntary contributions beyond MediSave. We thank him for his suggestions and will study their feasibility.

Realistically, CAYE can only work for SEPs who contract with corporate service buyers or get work through certain significant intermediaries. The individual hirer of a private home tutor, for example, will not be in a position to help the SEP make his MediSave contribution.

Intermediaries who work with SEPs, such as Grab and Caregiver Asia, have indicated their support for CAYE. But CAYE will not be straightforward to roll out. We will have to work through implementation issues, such as the correct amount of MediSave contributions to deduct in each transaction.

The Government, as a service buyer, will take the lead to implement CAYE. Government Procurement Entities aim to start a pilot by 2020 which will allow us to work through the implementation issues for CAYE and help smoothen its subsequent implementation in the private sector. We will provide more details when ready. In the meantime, we welcome companies to continue their voluntary MediSave contributions for their SEPs.

The final recommendation by the TWG is for the tripartite partners to support SEP associations in developing occupation-specific competency frameworks. Our tripartite partners are committed to doing so. To date, 15 of the 23 priority sectors have launched Skills Frameworks that support the sector's industry transformation. These Skills Frameworks provide key information on sector, career pathways, occupations/job roles, and the skills required for these occupations/job roles. They also list the training programmes that individuals or employers can tap on. The information in these Skills Frameworks will be relevant to both employees as well as SEPs in those sectors.

The Freelancers and Self-Employed Unit (U FSE) in the Labour Movement is also working with many groups, such as the sports coaches, to develop a training and accreditation scheme.

There are SEP associations that have proactively helped their SEPs to learn new skills. For example, NTA, under the leadership of Mr Ang Hin Kee, saw that foundational digital skills, as well as familiarity with digital applications, such as Parking.sg and mobile payment apps, would benefit its members in their day-to-day work. They also knew the course schedule had to cater to taxi drivers' unique work schedules.

NTA worked closely with one of the SkillsFuture Singapore's (SSG's) appointed training providers and SSG to customise the SkillsFuture for Digital Workplace programme for NTA members. SSG also provides course fee subsidies for the programme to keep the cost affordable for the drivers. If I understand correctly, they pay about $50 for each course.

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SEP associations can strengthen support to help their members make their SEP careers more sustainable. The Government and the tripartite partners are keen to work with more SEP associations on this front.

Mr Chairman, let me summarise the Government's response to the TWG’s seven recommendations.

Three recommendations are being implemented from today or have been ongoing. They are the Tripartite Standard on Contracting with SEPs, which we just launched; the extension of voluntary mediation services by TADM to cover SEPs; and the support of the tripartite partners for SEP associations to develop occupation-specific competency frameworks so that SEPs can remain relevant.

Another three recommendations will be implemented in 2019 or 2020. They are to make available a PML insurance product. To promote PML insurance coverage as a norm, starting with two occupational groups, namely, sports coaches and instructors, as well as taxi and private hire car drivers. And to start a pilot programme where the Government, as a service buyer, will implement CAYE for the MediSave obligations for its self-employed contractors.

The recommendation to introduce CAYE for other service buyers will require further study. The Government will focus on selected occupations where there are significant intermediaries or where there are large corporate service buyers we can work with.

We are confident that the TWG recommendations will help address the main common challenges that SEPs face. And we will continue to monitor the SEP landscape to stay on top of the changing trends.

Mr Chairman, as we look to support SEPs better, we are also committed to making our workplaces progressive for all, including for our women. Our female employment rate has improved steadily. Over the last three years, it averaged 72%, higher than the 69% average in the previous three years. In terms of full-time employment, we are ranked sixth, compared to 35 Organization for Economic Cooperation and Development (OECD) countries.

With more women in the workforce, has workplace harassment become a bigger problem? I would like to assure Ms Kuik Shiao-Yin, Mr Louis Ng, Ms Thanaletchimi and Mr Dennis Tan that the Government takes this matter seriously and that the situation is closely, carefully monitored.

Together with the tripartite partners, we have taken a multi-pronged approach towards protecting people against workplace harassment. In 2014, POHA was introduced. Employees who experience workplace harassment should seek help promptly, including for attacks on employees in cyberspace, as raised by Ms Thanaletchimi. They can report such incidents to MOM, as well as to TAFEP, which Ms Kuik Shiao-Yin suggested. They can also seek civil remedies directly through the Courts or report serious cases to the Police.

Between 2013 and 2017, an average of about 20 Police reports were filed annually involving sexual harassment or insults of modesty occurring at the workplace. They were thoroughly investigated and the offenders taken to task.

Some employees prefer to resolve the matter privately without involving the authorities but would rather report the matter to their employers. Legislating mandatory reporting by employers, as suggested by Ms Thanaletchimi, will close off this avenue for such employees and discourage them from raising the matter with anyone. This is not helpful to them.

Instead, the tripartite partners introduced the Tripartite Advisory on Managing Workplace Harassment in 2015 to remind our employers of their obligations to prevent and manage workplace harassment. They should also inform the employees of the avenues where they can seek help.

Last year, we also launched the Tripartite Standard on Grievance Handling which covers workplace harassment. Three hundred and twenty employers adopted the standard, covering about 260,000 employees. A mediation body called for by Ms Thanaletchimi already exists as TADM can also mediate harassment cases.

What about gender pay gap which Dr Intan Mokhtar was concerned about? Assoc Prof Daniel Goh cited a study by ValuePenguin. I think he did so during the debate on the Budget, and the study said that gender pay gap "has remained at around 18% to 19%" from 2006 to 2016. Unfortunately, the study did not make an apple-to-apple comparison as it included both full-time and part-time employed residents. More women than men worked part-time to meet their family and caregiving responsibilities and naturally earned less.

MOM's Comprehensive Labour Force Survey allows us to look at only full-time employed residents and compare salaries of men and women in similar occupational groups. The data shows that a gender pay gap of 11.8% in 2017 still exists. But this is a significant improvement from 20% 10 years ago. There was also broad-based improvement across most occupational groups.

The remaining pay gap can be attributed to the fact that women are more likely to exit the workforce or have intermittent patterns of work for reasons, such as childcare and sometimes caring for the elderly. If and when they return to the workforce, as a result, they also have to catch up with their male counterparts.

The same reason probably explains why more men than women achieve retirement adequacy. In 2017, 66% of active male members and 53% of active female members turning 55 met their CPF BRS. So, 66% for the active male CPF members, and 53% for the active female CPF members.

Mr Chong Kee Hiong will be pleased to know that the gap is closing. In 2007, the median retirement savings for women at age 55 were about 60% of median balances at age 55 for men. By 2017, 10 years on, this ratio has improved to 74%. And we expect the gap to further narrow over time.

To address Assoc Prof Daniel Goh's concern about the gender difference in CPF LIFE payouts, the best way is really to enable the women to remain in the workforce, so that they continue to advance in their careers and build up retirement savings. This was the key thrust of my speech last night at an event organised by the Singapore Chinese Chamber of Commerce and Industry (SCCCI) to celebrate International Women’s Day.

Mr Desmond Choo and Ms Thanaletchimi will be pleased that during the event, I also announced that the Government will set aside about $30 million to further promote FWAs. We will do so through the enhanced WorkPro Work-Life Grant, which will provide higher grant support to employers, especially for putting in place job-sharing schemes. This enhancement comes on top of the Tripartite Standard on FWAs launched last year which now covers some 250,000 employees. The Tripartite Standard on Unpaid Leave for Unexpected Care Needs which I launched a few days ago during the COS debate on the Prime Minister's Office (PMO); and, thirdly, the very significant expansion of preschool places which the Government is fully committed to.

These measures that I have highlighted will help the current and future cohorts of younger women remain in the workforce and improve their retirement adequacy. For the older cohorts of women who still did not manage to save enough for retirement, we have introduced a number of measures to help. In 2016, we made it easier for members to transfer CPF savings to their spouses’ account by lowering the minimum threshold they must meet, from the Full Retirement Sum to the Basic Retirement Sum.

From October 2018, we will also make it easier for children to transfer CPF savings to their parents and grandparents. I will say more about this later.

Mr Chairman, overall, with our tripartite efforts, we have made progress in helping Singapore women to better manage their family responsibilities and work aspirations. There is certainly more to be done, and we will continue to strengthen our efforts.

Mr Chairman, beyond helping our workers gain access to good jobs and have good employment outcomes, we also want to help them have better retirement adequacy for better peace of mind in old age. Our CPF system serves Singaporeans well in supporting our three basic needs, namely, housing, healthcare and retirement. Today, six in 10 active CPF members turning age 55 have at least the BRS in their Retirement Accounts. By 2020, we expect this proportion to increase to 70% and even more over time.

To help CPF members save more for their retirement, we stepped up efforts to encourage members to top-up their own or their loved ones’ CPF accounts. In 2017, over 61,000 members received about $1 billion in cash top-ups to their Special or Retirement Accounts. In addition, over 35,000 members received about $1 billion in CPF transfers. Forty percent of these members who received cash top-ups, CPF transfers or both, had less than BRS. In other words, these top-ups and transfers were very useful to them.

We have also enhanced WIS and introduced Silver Support to provide additional retirement support to lower-income Singaporeans. Today, about 152,000 seniors qualify for Silver Support. They constitute about 30% of the population of seniors aged 65 and above. I am pleased to share with Members that about two-thirds of the Silver Support recipients are women. I think this shows very clearly that we are not averse to helping those who need more help and that, of course, includes women, especially those of the previous generation who did not have as much of a runway to build up their retirement savings.

Assoc Prof Daniel Goh asked if the payouts can be the same, regardless of flat types. Although all Silver Support recipients are already means-tested, the degree of family support they enjoy is not the same. The purpose of Silver Support is to top-up and to help those who perhaps do not have as strong family support and also because they accumulated too little during their productive years. So, housing type is not a perfect proxy for family support, but it is an uncomplicated indicator. Singaporeans with exceptional circumstances can appeal to be eligible for Silver Support or to receive higher payouts. The appeals will be seriously considered.

Since the scheme started in July 2016, about 10,000 appeals had been received. About half were approved because of the appellant's changed circumstances. This is why it is also not so meaningful to look only at those who drop out from Silver Support because there are also those who qualify. There are those who did not qualify in the past but then subsequently qualify. So, there are people who used to get it but no longer get it because the assessment is updated regularly and they no longer meet the eligibility criteria. But there are also people who did not meet the criteria in the past, but then subsequently were able to. The important thing is that about 30% of seniors above the age of 65 continue to receive Silver Support.

Mr Leon Perera asked about giving CPF members flexibility with their mandatory CPF contributions. I understand his point of view. But I should emphasise that the primary purpose of CPF is to save for our retirement.

Today, while the CPF system is enabling more Singaporeans to have adequate savings in retirement, there are still groups that we want to help build up retirement adequacy. For example, as pointed out by Members like Dr Intan Mokhtar and Mr Zainal Sapari, low-wage workers and older workers continue to need help.

Besides the schemes that I have described earlier, we have also tightened rules on CPF withdrawals for everyone, precisely to ensure that retirement savings continue to be steadily built up and are not depleted. For those who have built up substantial CPF savings, we are helping them grow those savings in better ways, which I will talk about later. It will, therefore, be incongruent with our current focus to start loosening up, whether in terms of the rules on withdrawal or contributions. Let us stay focused on the task at hand, safeguard and grow our CPF savings so that all Singaporeans can have better peace of mind in retirement, for as long as they live.

Mr Chairman, Mr Zainal Sapari expressed concerns that some CPF members who invest through the CPF Investment Scheme (CPFIS) might not fully understand the risks and costs involved. So, their painstakingly built-up retirement savings may be lost.

Currently, there are two ways for members to grow their CPF savings. For those who have no appetite for risk, they can earn risk-free interest on their CPF savings. Those who have an appetite for risk may choose to invest their monies through CPFIS.

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However, a member who is willing to take risk may not have the knowledge to invest. Based on a poll commissioned on behalf of the CPF Advisory Panel in 2015, more than half of the CPFIS investors considered themselves to have "limited" investment knowledge but it did not prevent them from taking those investments.

CPF members should exercise caution when investing their CPF savings. Over a two-year period between October 2014 and September 2016, 29% of members who invested their Ordinary Account (OA) savings made cumulative total losses. Another 22% achieved cumulative profit that is less than or just equal to the OA interest rate of 2.5% per annum. In other words, slightly more than half of the members with a CPFIS-OA account did not do better through their own investments than if they simply left their CPF balances alone to earn a risk-free interest rate.

We have been studying the feasibility of a third option for this group of members and the scheme is called the Lifetime Retirement Investment Scheme (LRIS). This LRIS is targeted at CPF members who have an appetite for risk but neither the knowledge nor time to invest. We are aiming for something low-cost. We want to take advantage of the longer time horizon available to CPF members to earn better upside investment gains.

Yet, the product should also provide some assurance against downside risks. Members can well imagine that such a scheme is not easy to design and will require further study. In the meantime, we will make three enhancements to better cater CPFIS to members with an appetite for risk and have both the knowledge and time to invest.

First, we will introduce a self-awareness questionnaire (SAQ) that will be available to all CPF members. This questionnaire will provide feedback to the member on his level of basic financial knowledge and remind him of the different options available to him to grow his CPF savings, such as CPF interest rates or the upcoming LRIS.

But regardless of the feedback, members can still decide whether or not to invest through the CPFIS. The questionnaire will be part of the process of opening a CPFIS account from 1 October this year. Members who already have a CPFIS account are not required to take the questionnaire but are strongly encouraged to do so.

The second enhancement is to disallow sales charges for products that are offered under the CPFIS. Currently, financial advisors can receive a sales charge of up to 3% of the transacted amount when members use their CPF to purchase unit trusts and investment-linked insurance policies.

This sales charge has an unintended consequence that is detrimental to CPF members' interests. It encourages financial advisors to sell products to earn more commissions which causes the members to "churn" their investments. Buy sell, buy sell. Each time, there is a sales charge.

Our target group of CPFIS members will generally not need to rely heavily on financial advisors to decide which investment products to purchase. They can already directly buy unit trusts on online platforms, such as FundSupermart, Navigator and POEMS for zero sales charge. Therefore, the sales charge adds another layer of cost that reduces the member’s investment returns.

By removing the sales charge, financial advisors no longer have an incentive to push products. This also reduces the cost of investing for CPFIS members and will better align the investment behaviour to members who have time and knowledge.

The third enhancement is to reduce the maximum wrap fees charged for CPFIS investments such that wrap fees cover only the cost to maintain wrap accounts. For Members' information, currently, some CPF members set up a wrap account on investment platforms. Financial advisors can charge an annual wrap fee of up to 1% of the amount of funds that they manage in the wrap accounts. The wrap fee covers advisory services and the costs to maintain the wrap account.

We are not opposed to wrap accounts as they are generally considered to bring convenience to investors. Again, the targeted members for CPFIS are not expected to rely on advisory services that are usually included in the wrap fees.

We will, therefore, lower the cap on annual wrap fees to 0.4% of the total amount managed. This is similar to the fees charged by online investment platforms in the cash market. We will review the cap on wrap fees from time to time as the investment landscape evolves.

We are mindful that these enhancements may affect the financial advisory industry which will no longer be able to impose the sales charge on new CPFIS investments and will have to charge only lower wrap fees on wrap accounts. However, we do not expect this impact to be too substantial.

Currently, the Life Insurance Association estimates that about 15% of premiums from new insurance business came from CPFIS products while the remaining 85% of premiums came from the cash market. Nonetheless, to give the industry adequate time to adjust, we will implement these fee changes in two steps.

(a) The cap on sales charges will be reduced to 1.5% from 1 October 2018 and further reduced to 0% from 1 October 2019; and

(b) The cap on wrap fees for both existing and new accounts will be reduced from 1% to 0.7% from 1 October 2018 and further reduced to 0.4% from 1 October 2019.

(In Mandarin): [Please refer to Vernacular Speech.] Chairman, we will enhance the CPFIS to further protect the interests of CPF members. Through self-awareness, CPF members can better understand which option is most suitable if they want to achieve the best returns from their CPF savings.

For members who do not have enough time or who are unfamiliar with investments, leaving their CPF savings in their accounts to earn risk-free interest may be the most ideal option.

For members with time and investment knowledge, fees charged for various investment schemes will be lowered in future.

(In English): Mr Chairman, let me conclude. We are taking active steps to help Singaporeans move into better jobs and secure better employment outcomes, even as the economy restructures. The women in our workforce have made progress and will get more help to stay in employment. Our SEPs and CPF members will also enjoy better protection. MOM will continue to improve our schemes and programmes to ensure that we have an inclusive workforce and progressive workplaces. We have our work cut out for us and we look forward to Members' support.

The Chairman: Minister of State Sam Tan.

The Minister of State for Manpower (Mr Sam Tan Chin Siong): Mr Chairman, the Minister and Second Minister for Manpower spoke about the need to transform and grow, and to adapt and grow. In line with these efforts, I will focus on how we will better support older and low-wage workers. I will also talk about promoting an inclusive, safe and healthy workplace for our workers.

Sir, let me start with older workers, a subject that is very close to my heart. The employment outcomes of our older workers have improved over the years. The employment rate of older residents aged 55 to 64 has increased from 64% in 2012 to 67% in 2017.

Our older worker employment rate is higher than countries, such as Australia, Korea, the US and UK. In fact, compared to the 35 OECD countries, Singapore would be ranked among the top 10.

The unemployment rate of older residents has also remained low at below 3% over the last five years. This is comparable to the overall unemployment rate. This means that the vast majority of older residents in the labour force who want to find a job can find a job. And for those who need assistance to find a job, we will continue to help them through the Adapt and Grow initiative.

Sir, let me give an update on our older workers and also the employment situation and the efforts taken to help them to adapt and grow. Last year, we took further steps to enhance the employability of our older workers.

First, we raised the re-employment age from 65 to 67 in July 2017. We are heartened to see that both employers and workers have embraced the re-employment concept and our older workers have benefited. Since re-employment was introduced in 2012, over 98% of private sector local employees who wished to continue working were offered re-employment at age 62. Of those who were re-employed in the same job, 98% did not experience any cut in their basic wages.

Second, we extended the Special Employment Credit (SEC) scheme, which provides wage support to employers who hire older workers. So far, 93,000 employers who employed over 350,000 eligible older workers have benefited since SEC was extended in 2017. And since 2011, over $3 billion of SEC has been paid.

While results are encouraging, we hope to do even more and better. Hence, one key priority is to ensure that both jobs and workplaces become more conducive for our older workers. We agree with Dr Intan Mokhtar and Mr Chen Show Mao on the importance of job redesign. It can transform work processes for older workers, which Ms Jessica Tan has also brought up.

To encourage adoption of job redesign, we enhanced WorkPro in 2016 to provide more generous funding of up to $300,000 per company, and to complement other capability development grants. Since WorkPro's enhancement, WSG, NTUC-e2i and the Singapore National Employers' Federation (SNEF) have funded more than 650 companies, benefiting more than 10,000 older workers aged 50 and older.

Through working with companies, we learnt that job redesign not only makes older workers' existing jobs easier, safer and smarter, it also creates new jobs and opportunities for them. One example is Mdm Toh Kim Pong, a 69-year-old employee at Goodwood Park Hotel. In the past, two younger employees were needed to transport linen to the laundromat. To do this, they have to push trolleys manually, carrying up to 100 kilogrammes (kg) of linen, up a steep slope and across an open-air carpark. Because of her age, this was a task that Mdm Toh could not do. The hotel then decided to tap on WorkPro to introduce motorised trolleys and train older workers like Mdm Toh to operate them. As a result, Mdm Toh is now able to take on a new task previously too strenuous for her. This has also led to a wage increase for her.

Given the success story of Goodwood Park Hotel, I encourage more companies to make their jobs age-friendly through the WorkPro Job Redesign Grant, which is part of LEDS mentioned by the Second Minister earlier. This will also support the growing pool of older Singaporean workers.

Sir, I would like to talk about age-friendly workplaces now. Mr Chong Kee Hiong and Miss Cheryl Chan have asked about age-friendly workplace practices. Mr Patrick Tay and Ms Tin Pei Ling also surfaced this issue of ageism. The tripartite partners share these concerns, too, and have been working hard and taking measures to address them. We all agree that what we should all do is to work towards a workplace culture where our older workers feel valued, and companies think about the needs of older workers when they put in place policies and practices.

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In fact, employers are recognising the benefits of having age-friendly and inclusive workplace practices. According to a 2016 survey by TAFEP, seven in 10 employers are willing to redesign job scopes to accommodate older workers. Still, there is room for improvement.

So, I am happy to say that the tripartite partners have developed a Tripartite Standard on Age-friendly Workplace Practices. This Tripartite Standard will promote inclusive workplaces that meet the specific needs of older workers. More details will be shared later when the Standard is launched next month.

As we continue to encourage inclusive behaviour, we will also take action against discriminatory practices. Sir, there is no place for age discrimination in our workplaces. To counter any age discrimination in our workplaces, TAFEP looks into all age-discrimination complaints. MOM will not hesitate to take enforcement actions against errant employers who discriminate against older workers.

Let me now talk about our support for low-wage workers. Sir, this Government pays particular attention to low-wage workers. We strive to uplift their wages, enhance their employment conditions and improve their lives even as they work hard and make an honest living. We do this in two ways. First, through broad-based efforts, and second, through additional support for specific sectors.

Let me talk about the broad-based efforts. The WIS scheme is a key pillar of our support for low-wage workers. As a permanent scheme, it helps low-wage workers build up their retirement savings and meet their daily needs as they work. Since WIS started in 2007, a total of $5.5 billion has been paid to about 830,000 recipients, of which, $3.7 billion went to their CPF for their retirement; $1.8 billion was given to them in cash to supplement their income.

Besides supplementing their income, Workfare Training Support (WTS) gives them opportunities to upskill and reskill to improve their employability. Since 2010, more than 270,000 low-wage workers have tapped on WTS to upskill and reskill. And more than $280 million was used to support such training efforts.

Mr Zainal Sapari pointed out that some of our low-wage workers remain vulnerable and may face unfavourable working conditions. We fully share his concerns. MOM and CPF Board are aware of this. We have stepped up public education and enforcement efforts through the WorkRight initiative. WorkRight ensures that low-wage workers are aware of and not denied their employment rights.

Today, eight in 10 employers inspected were found to have complied with the EA and CPF Act. This is an increase from seven in 10 in 2012. So, we see a gradual improvement. We take firm actions, including prosecution, against errant employers. Therefore, I urge Members to inform MOM if they come across workers who are denied their statutory employment rights.

For specific sectors, we also take a more targeted approach. In particular, the tripartite partners have implemented mandatory PWM in the cleaning, security and landscaping sectors. Through PWM, over 70,000 resident workers have benefited from better wages and better career progression. Real wage growth of workers in PWM sectors has exceeded resident median income growth for the past five years. Workers in these sectors also now have clear progression pathways that commensurate with their skills and competencies. Let me further share the progress in each of our PWM sectors in greater detail.

For the cleaning sector, the PWM was announced in 2012 and came into effect in 2014, and we have seen positive results over the years. From 2011 to 2016, the real median gross wages of full-time resident cleaners grew by about 5.7% per annum. We enhanced the Cleaning PWM in December 2016 to increase their wages further. More than 41,000 cleaners can benefit from an increase in the PWM basic wages of between 3.4% and 4.6% per annum for six years, from July 2017 onwards. And from 2020, cleaners will also enjoy a mandatory annual bonus equivalent to at least two weeks of monthly basic wages.

Similarly, we have seen good progress for security officers. Since the PWM was launched in 2014 and implemented in 2016, the real median gross wage of full-time resident security guards grew by 6.4% per annum from 2011 to 2016. The tripartite partners worked together to further enhance the security PWM in November 2017. Over 34,000 resident security officers can now look forward to higher PWM basic wage increases each year of between 4.1% and to 5.7% for six years, from 1 January 2019.

To transform the industry, the tripartite partners took a decisive step to improve the working hours of our security officers. From 1 January 2021, MOM will no longer grant overtime exemption for the security industry. This will reduce their current overtime hours from as high as 95 hours a month, to not more than the statutory limit of 72 hours. And to become more manpower-lean and productive, the industry is committed to adopt greater use of technology. And with these measures in place, workers will stand to benefit from having higher wages and shorter working hours. This is something that we really want to do for our security officers to modernise the industry and also to professionalise their career.

Finally, for the landscape sector, the real median gross wage of full-time resident landscape maintenance workers has increased by 3% per annum from 2011 to 2016. And we continue to work on improving their wages and working conditions. With the cleaning and security PWM enhanced in 2016 and 2017 respectively, the tripartite partners will review and enhance the landscape PWM this year. More details will be announced by the Tripartite Cluster for Landscape Industry (TCL) after the tripartite negotiations have concluded.

Sir, through these tripartite efforts, both our broad-based measures and sectoral efforts have improved the lives of our low-wage workers. The wages and employment conditions for low-wage workers across the board have improved over time.

Over the past five years from 2012 to 2017, the real income growth at the 20th percentile (P20) of full-time employed citizens grew by 4.3% per annum, faster than at the median of 3.9% per annum. And for working hours, not only did their income increase, they also worked shorter hours. Resident low-wage workers worked fewer hours per week, from 49 hours in 2012 to 46 hours in 2017. On job security, there was also greater job security for low-wage workers. More workers were placed on permanent contracts and the number of casual on-call workers has decreased.

Even so, the work does not stop for us. In MOM, we will continue to work with the tripartite workers to support sustainable wage increases through PWM and raise employment standards through best sourcing.

Given the good progress in the three PWM sectors, we want to see further adoption of PWM in other sectors. PWM can benefit workers beyond low-wage workers, to other rank-and-file workers as well.

As a start, lift firms and unions are working with the Building and Construction Authority (BCA) to introduce a voluntary PWM for lift technicians. This is especially useful, with a growing demand for lift technicians in Singapore. MOM will support them in this effort. More details will be announced by the industry when ready.

MOM also stands ready to support the tripartite partners to develop and adopt PWM voluntarily for other sectors.

Second, the Government will further safeguard the basic employment rights of outsourced workers in the cleaning, security and landscape sectors. Today, employment law criteria are already part of the professional accreditation and grading frameworks for the cleaning and security sectors respectively. We will take a further step to introduce employment law criteria for the landscape sector.

Starting this year, NParks will introduce employment law criteria in the Landscape Company Register (LCR). Going forward, employers in these three outsourced sectors stand to lose their eligibility to bid for Government contracts, if they contravene employment-related offences.

Additionally, from January 2019 onwards, the Government will only procure from companies with consistent track records in their employment and professional standards. We will require cleaning, security and landscape companies to have two consecutive accreditation status, good grading and LCR status respectively. More details will be shared with the respective industries in the coming weeks. This means that companies in these three PWM sectors must treat their workers fairly in order to qualify for Government contracts.

Through this measure, the Government is taking the lead. The Labour Movement and the PWM tripartite committees led by Mr Zainal Sapari will urge more businesses to follow suit. Mr Zainal Sapari is the champion for low-wage workers. And I hope more businesses will heed the call and adopt similar best sourcing practices.

The tripartite partners will also continue to find ways to improve the employment conditions of workers in these PWM sectors. To this end, the PWM tripartite committees should study further measures, such as Mr Zainal Sapari's proposal to mandate rest areas in these outsourced sectors.

Mr Zainal Sapari has also asked to compel employers to pay for outpatient treatment for low-wage workers. However, our worry is that doing so may inadvertently affect the employability of workers with poorer health. So, this is the very group of vulnerable workers that the tripartite partners are trying to help. We do not want to introduce something that may inadvertently create implications for them which will impact their employment opportunities.

Sir, let me recap our schemes. Under our CPF system, employers are already required to contribute to their employees' MediSave. At the same time, the Government makes additional MediSave contribution to low-wage workers via schemes, such as WIS.

And we have our 3Ms, meaning MediSave, MediShield Life and MediFund, and other significant Government subsidies through schemes, such as the Community Health Assist Scheme (CHAS). No Singaporean will be denied access to healthcare because of their inability to pay.

Mr Zainal Sapari also called for mandatory AWS for low-wage workers. Under our existing Flexible and Performance-based wage systems, a worker's total annual wage package is made up of three components: monthly fixed component; monthly variable component and annual variable component where AWS is part of the annual variable component.

This design of monthly fixed, monthly variable and annual variable components varies widely across industries, companies and even occupations. As such, the consensus of the tripartite partners is to give employers and unions the flexibility to negotiate their total annual wage package, including AWS, and not mandate the structure of the wage payments.

Sir, I have spoken about our efforts to support older workers and low-wage workers. Our initiatives will particularly help the group of older low-wage workers. For example, they receive higher WIS payouts and benefit more from PWM.

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Besides supporting older and low-wage workers, we should ensure that our workplaces are inclusive for all. Not only should we make every worker a better worker, every job a better job, we should also do our best to make every workplace a better workplace. A better and more inclusive workplace has no room for discrimination on account of gender, race or mental condition.

And I thank Dr Intan, Mr Muhamad Faisal Manap, Assoc Prof Daniel Goh and Ms Tin Pei Ling for raising this point. To this end, all employers should embrace fair and merit-based employment, as stipulated in TGFEP. MOM will also take appropriate enforcement actions against employers found to have engaged in unfair employment practices.

At the same time, we should make our workplace more accommodating towards persons with disabilities, as pointed out by Ms Kuik Shiao-Yin. The Government supports employers in this aspect. For example, the Open Door Programme (ODP) provides funding support to employers who hire persons with disabilities and redesign jobs for them.

Mr Melvin Yong, Mr Kok Heng Leun and Mr Louis Ng asked about protections and measures in place for our migrant workforce, including electronic payment of salary, employment contract and recruitment practices. We are fully committed to protecting the well-being of our foreign workers.

There are laws and policies for areas, including salary payment and local employment agency fees. By law, foreign workers are to be issued the Key Employment Terms (KETs) within 14 days of arrival. The KETs state clearly the employment terms, including working hours, leave benefits and the salary amount. It is an offence under our law for employers to reduce the salary from what is stated in the In-Principle Approval (IPA) letter without the worker’s written consent. To limit the financial burden on workers, local employment agencies are also prohibited from charging foreign workers recruitment fees more than one month of their salary per year of service.

We also ensure that foreign workers know their rights and responsibilities, and we assist them proactively when they need help. We work with our partners, for example, the Migrant Workers Centre (MWC), to educate both workers and employers on the benefits of salary e-payment. MWC also assists foreign workers with valid salary claims to seek employment.

Finally, Mr Melvin Yong has spoken on WSH. Ten years ago, we set ourselves a "WSH 2018" target of reducing the workplace fatality injury rate from 2.8 per 100,000 workers in 2008 to 1.8 by 2018. I am happy to report that we have made significant progress, thanks to efforts from the tripartite partners, WSH professionals and workers. Our workplace fatality rate dropped to 1.2 last year. As mentioned by Minister Lim Swee Say just now, this is the lowest rate recorded for the whole workforce. But we should not be complacent. We are still lagging behind other countries with a workplace fatality rate of less than one.

We can do more. Over the next 10 years, we must aspire to provide our workers with workplaces that are among the safest and healthiest in the world. To do so, we need new breakthroughs in our strategy. We should chart out a comprehensive plan for WSH development over the next 10 years. To do this, I am pleased to announce that we will convene a new WSH2028 Tripartite Strategy Committee (WSH2028 Committee).

This Committee will comprise leaders from industry, unions and key players in the WSH landscape and it will consult widely in the course of its work. It will be chaired by Mr John Ng, Chief Executive Officer (CEO) of Singapore LNG Corporation, who is also a WSH Council member.

Mr Melvin Yong has given good ideas on how to improve our WSH programmes, such as near-miss reporting, WSH representatives in companies and many others. The WSH2028 Committee will study all these suggestions.

While the WSH2028 Committee will formulate specific recommendations, I will now want to take this opportunity to sketch out broad areas that the Committee will look in.

First, we will find ways to strengthen WSH ownership among companies and workers. This means being self-motivated to improve WSH. The Committee will study how we can influence everyone from C-suite executives to rank-and-file workers to being more committed to WSH.

Second, we should increase integration of workplace safety with workplace health as part of Total WSH. Improving both workplace safety and workplace health is important because they reinforce each other. We will study further ways to help companies detect and reduce both safety and health risks.

Third, we need to deepen WSH capabilities of companies and workers, such as by raising the competencies of WSH professionals and improving the quality of WSH training providers.

Fourth, we want to strengthen partnerships with different stakeholders to promote and reinforce positive WSH behaviour. This includes having insurers price premiums more accurately based on claims history by companies, and technology companies providing solutions to detect risky work situations, and hospitals reintegrating injured workers as part of the Return-to-Work programme.

Lastly, the Committee will review the regulatory regime to ensure that it remains effective without excessive burden on compliant companies. The Committee will consider ideas, such as differentiating our enforcement approach based on firms’ or companies' past track records. The WSH2028 Committee will start work in April and intends to complete its report in a year’s time.

In conclusion, Mr Chairman, I have outlined the key efforts of MOM in supporting older and low-wage workers, and promoting inclusive, safe and healthy workplaces. Through our tripartite efforts, we have made encouraging progress in these areas plus, as we always say, we are not satisfied with what the progress has been and will always look for new areas for improvements.

So, we will press on with our efforts to make Singapore a great workplace for our workers.

The Chairman: Clarifications? Mr Kok Heng Leun.

Mr Kok Heng Leun: I would like to thank the Second Minister for the reply on SEPs. I am glad to hear that MOM is looking for insurance for prolonged medical leave. I would like to speak on behalf of a lot of the dance community who go to school and Community Centres to teach. They are, quite a lot of times, susceptible to injuries. So, I hope that this group can be included in it.

Secondly, also the stage technicians who would work both indoors and outdoors in events. There is a lot of possibility of casualties during the process. And I hope that it can also be included.

For the third question, I wish to direct it to Minister of State Sam Tan. Previously, with regard to my questions, the Ministry had agreed to check on how the Koreans have been recruiting their foreign workers. I would like to have an update on whether that was followed through and, if so, what was the outcome?

The Chairman: Minister Josephine Teo.

Mrs Josephine Teo: Mr Chairman, I would like to thank the Member for sharing his concerns about the dance community as well as the stage technicians. We will certainly be very keen to get in touch with the associations that they belong to and to explore ways in which we can promote the adoption of long medical leave insurance as a norm for their occupations.

The Chairman: Minister of State Sam Tan.

Mr Sam Tan Chin Siong: I thank the Member for his enquiry on the status of South Korea's recruitment system. MOM has studied the South Korean system. Essentially, under the South Korean model, the Government becomes the Employment Agent for foreign workers. Based on our experience, I do not think this will be practical for the Singapore situation. We have a far greater proportion of foreign workers in Singapore. One third, or 1.1 million, of our workers are foreign workers.

So, it is not feasible for the Government to be a surrogate employment agency for this big group of foreign workers. After very thorough studies, we do not think the South Korean model is something that can be adopted in Singapore effectively.

The South Korean model cannot guarantee that the source country where the foreign workers are imported from would take prudent measures or effective measures to protect the foreign workers from being exploited by the middlemen in the source country. Under the South Korean system, the Government can do something to protect the interest of the foreign workers in South Korea, it does not have the jurisdictions to do something at the source country.

In Singapore, we have put in place many measures to protect the interest of our foreign workers. We have legislated an Act, the Employment of Foreign Manpower Act, to protect the rights of the foreign workers. We also work with many voluntary welfare organisations (VWOs) to help the foreign workers.

Lastly, we have also been actively engaging the foreign embassies where they have foreign workers working in Singapore to make sure, from time to time, that if there are issues concerning the well-being of their foreign workers, we can take up these issues with the foreign embassies. We ask them to pay attention on the treatment of their foreign workers within their own source country.

All in all, we have studied this and, with due respect, it is something that it is still quite new in South Korea. We do not think that it would be practical for us to implement the same approach or same system in Singapore.

The Chairman: Mr Low Thia Khiang.

Mr Low Thia Khiang: Sir, I think we should protect our local employers and local workers more than foreign workers. Clarification, please.

Firstly, what is the current profile of the long-term unemployed workers compared to 2016? Secondly, whether agencies like e2i and the Workforce Development Agency (WDA) would focus more on service of these long-term unemployed workers who seek help because there was feedback that they had visited these agencies for several times but remain unemployed.

Mrs Josephine Teo: Mr Chairman, the long-term unemployed includes those who are PMETs as well as rank-and-file. They are also of various age groups. To Mr Low's question about whether they get help from WSG as well as NTUC-e2i, the answer is yes. I shared that, last year, we helped 6,600 of them. For those persons who are helped, the help to them was real and not imagined. As for profile, I am not sure exactly what Mr Low is seeking. But if he could let me know, we will try and find out and share with him.

The Chairman: Mr Ang Hin Kee.

Mr Ang Hin Kee: A question for the Second Minister. We are, of course, concerned that many aspiring young people want to be freelancers, especially those who want to be private hire car drivers or taxi drivers. But moving forward, with the advent of things like autonomous vehicles, there may be a danger that some of them may enter into a career whereby they may be displaced.

So, I would like to enquire if the career counsellors and coaches would be equipped to guide individuals who aspire to be freelancers to make an informed choice or to direct them towards employment that is of a permanent nature, such as an employee-employer relationship, other than the fact that they just make up their mind to probably enter into a lower entry barrier job of a freelancer.

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Mrs Josephine Teo: Mr Chairman, to Mr Ang's question, at present, if we look at the profile of the SEPs who took up self-employment work more recently, they are quite a mixed bag. They include those that he highlighted, such as media freelancers. They also include people who have taken up work like private hire car driving.

The main thing is that it depends on whether they are doing it as their primary livelihood. If they are doing it as a primary livelihood, then we are, of course, more interested in whether this is their preferred model of work. If they are doing it as a secondary form of employment, it is something that they decided to take on to earn an additional stream of income, we do not have any issues with that.

But we agree with the Member that it probably makes good sense to reach out to career counsellors, those who work with students, in particular, whether they are at the polytechnics or universities, or even other institutions, as well as our own career coaches, to help them appreciate what it is like to be a freelancer and the challenges that are faced, so that they can give correct advice. So, this is something that we can follow up on.

The Chairman: Minister of State Sam Tan.

Mr Sam Tan Chin Siong: Mr Chairman, I would like to respond to the comment made by hon Member Mr Low Thia Khiang. He mentioned just now that while we are looking after the well-being of foreign workers, we should also protect our local workers. He made a very important point here and I fully agree with him.

In fact, our local workers are always close to our hearts. This is why we have very comprehensive legislation to protect the workers' rights. The Minister has mentioned earlier in his speech about making an amendment to the EA. We also have a slew of many other programmes like Adapt and Grow, PCP, CSP, WIS and all that. The sole purpose is to provide a wide range of programmes and assistance to help our local workers to adapt and grow and then also to develop, so that they will be able to secure better job security and employment prospects. I share totally Mr Low Thia Khiang's point that local workers are always the core interest of the Government.

Bearing in mind that while we look after the local workers, we should also treat our foreign workers fairly, so that there is this complementarity between the local and the foreign workers. Otherwise, the ideal situation described by Minister Lim Swee Say of "two-thirds plus one-third, is greater than one" would not happen. If we treat our local workers better than foreign workers, then we will see the situation of "two-thirds plus one-third is less than one". This is not the situation that we would like to see.

The Chairman: Mr Dennis Tan.

Mr Dennis Tan Lip Fong: Mr Chairman, I have a question for Minister Lim Swee Say. At the Second Reading of the Employment Claims Bill in August 2016, I suggested to the Ministry that we have one tribunal to handle salary claims, unfair dismissal as well as discrimination. So, I am happy to hear and I welcome the Minister's announcement that we are going to have a one-stop Dispute Resolution Centre to handle salary claims and unfair dismissal.

My question to the Minister is: would the Minister consider, at some point in the future, to expand the service of this Dispute Resolution Centre to include claims and complaints relating to discrimination and workplace harassment? The Minister of State Sam Tan correctly mentioned just now that MOM looks into cases of complaints of discrimination against, for example, older workers.

Mr Lim Swee Say: Mr Chairman, basically the disputes provided for under the EA are what MOM can handle. When ECT was set up, it was set up to handle only salary-related claims. Even so, the tripartite partners decided that we will go on voluntary mediation for disputes which are not salary related. In other words, we currently do not have the legal rights to mediate non-salary related claims, but we did it on the basis whereby we asked the employers/employees whether they are prepared to do so on a voluntary basis.

As it turned out, the percentage was, if I recall correctly, at least more than 70% of them were prepared to do so. With that in mind, we have decided why not take the next step to formalise it? So, that is what we are doing.

Mr Dennis Tan asked whether some of these dispute resolutions would come under ECT. For those wrongful dismissal disputes which are covered under EA, they will all be transferred to ECT. So, that is the next step. All salary-related and wrongful dismissal disputes, which were covered under the EA, will now be transferred to ECT entirely.

In addition to that, because we have removed the salary ceiling, more people can now qualify for EA. As a result, more of them, next year, when we amend the Act, will be able to benefit from the one-stop service from ECT.

The Chairman: Ms Jessica Tan.

Ms Jessica Tan Soon Neo: Mr Chairman, Minister Josephine Teo had shared with regard to the comprehensive Labour Force Survey that was done regarding the gender pay gap. Could I ask a clarification? It is troubling to hear that there is still an 11.8% gap, although there have been improvements. But the Minister did share that some of the causes were relating to women stepping out of the workforce and then returning to the workforce. I do hope that MOM will work with the employers, if they are returning back to the workforce and they are doing the value of the job, and they do have the competencies for the job, they should not be penalised. They should be paid the same value of that job, and it should be performance-based rather than how long you have been in the job or whether you have taken time out of the workforce.

Mrs Josephine Teo: Mr Chairman, I thank the Member Ms Jessica Tan for giving me an opportunity to say a little bit more about how we look at the data. I asked to look at the data within the public sector and it was quite interesting. For a particular scheme of service, in fact, the median pay of the female officers was higher than the males. So, I wondered why. And as it turns out, the composition of the females and the males in the workforce also matters a great deal. It turns out that the nature of the work performed by females in the public sector lend themselves to earning higher pay.

What I would say is this: when we look at the gender pay gap, whether it is numbers compiled by ValuePenguin or whether it is even based on our comprehensive Labour Force Survey, we should not take it at face value. The fact that more women might have exited the workforce and, as a result, in terms of cumulative length of service is perhaps not as high, that contributes to the gender pay gap. Composition of the male workforce and the female workforce, and what kinds of work are being done, also matter.

If we dug deeper and looked at the gender pay gap within occupations, and then controlled for years of service, I half suspect that the gap is not going to look as high as it does. But having said that, putting all of those things aside, it is still the right thing to do for us to enable as many women as possible to stay in the workforce, give them a chance to grow their careers, and not to have to choose between family and work. That is the right thing to do to enable them to fulfil all of their aspirations for work and family, and we will press on to do that.

Also, if we look at the whole slew of measures that can be taken, by far, the one that perhaps will make the most difference is the availability of FWAs because the reality of their lives are that, at home, there will still be responsibilities to be shared. Even if they have a spouse, a partner, who is willing and able to chip in, very often, exigencies require them to take time out. How do we best enable persons with caregiving responsibilities, not just women, to remain active in the workforce? That must be the thrust of our efforts.

The Chairman: Dr Intan Mokhtar.

Dr Intan Azura Mokhtar: Mr Chairman, I would like to address this to the Second Minister. My question is similar to the hon Member Ms Jessica Tan; it is about the gender pay gap. It is heartening to know that, if you look at the public sector, the gap is probably not as much as 11.8% that the Minister shared earlier. But are there plans to address this gender pay gap and further reduce it, especially in the private sector and, especially those in senior management positions? Because I shared the data in my speech earlier that, specifically, for those who are earning more than $11,000 a month, the number of male employees is twice that of female employees. If we can try and reduce that difference further in the senior management positions, that would be good.

Mrs Josephine Teo: Mr Chairman, as I had explained, it is not entirely clear to me that there are, in fact, very significant gender pay gaps, after you have controlled for occupation and for years of service. The best thing that we can do is go back to what will enable the women to make progress in their careers, which is not to exit, and the way in which to do it is to make FWAs available to them.

I should just make a small point. I looked at the public sector data and it was quite interesting. Certainly, among the superscale officers, there is no difference between the male and female officers. For the other grades, as I had mentioned, sometimes, it has to do with the composition, what kinds of work they are doing. I hope that addresses the Member's question.

The Chairman: Ms Thanaletchimi.

Ms K Thanaletchimi: Two clarifications. One, on CTP. Does CTP apply to private and public sector and Government agencies, or is it only for the private sector?

The second question is on workplace abuse and harassment. I just wish to know Second Minister Josephine Teo's take on what she feels about having a Tripartite Standard for managing workplace abuse and harassment rather than having it subsumed under the Grievance Handling or Grievance Management Tripartite Standard. This is to give more clarity to employers on how exactly to manage situations like that, rather than making it more a general statement under the Grievance Handling Tripartite Standard.

Mr Lim Swee Say: Mr Chairman, my answer is a quick one. For CTP, funding support is only for the private sector organisations, not for public sector.

The Chairman: Ms Thanaletchimi.

Ms K Thanaletchimi: That means, does it apply to the healthcare sector because it is like quasi-Government?

Mr Lim Swee Say: The healthcare sector, I think for the hospitals, you are not considered Government, right?

Ms K Thanaletchimi: It is quasi.

Mr Lim Swee Say: Exactly. So long as you are a private sector organisation, you can apply.

The Chairman: Minister Josephine Teo.

Mrs Josephine Teo: Mr Chairman, I have to address Ms Thanaletchimi's question. I should say that these interventions can evolve over time. We will take the suggestion and we will look at it. If there is a good reason for us to have a separate Tripartite Standard, yes, I think so, but let us take a look at it.

I should also just supplement my reply to Dr Intan Mokhtar. In the private sector, it is very hard for the Government to intervene. But I cannot imagine why in the private sector, the employers would not figure that they should reward according to talent. If there are specific instances where someone has been discriminated against, I will be very interested to find out.

The Chairman: Assoc Prof Daniel Goh.

Assoc Prof Daniel Goh Pei Siong: Mr Chairman, I thank the Second Minister for her responses to the Silver Support and CPF LIFE issues. I have two clarifications.

Regarding the Second Minister's statement that Silver Support payouts using flat sizes is an uncomplicated way to measure household support, that is reasonable. The first question is I am wondering whether the cutting up of the payouts in the four tiers, 1- and 2-room flats is $750 and all the way to 5-room flats, it becomes $300. Is this too fine a banding and creating, therefore, a kind of complicated picture of household support that is much more complicated than what is on the ground? For one, 1-room and 2-room flats can be combined with 3-room flats. I think a lot of seniors who are caught up in that kind of situation where they need our support from Silver Support, living in those flats would be quite similar.

2.45 pm

The second question that I have is regarding the appeal process. The Second Minister said that it is an uncomplicated measure, yes. But there could be complicated life situations that the seniors face due to support issues from household members. They might be living in 5-room flats and they might be making an appeal for eligibility. Could they also make an appeal in terms of the quantum?

Mrs Josephine Teo: Mr Chairman, the answer to the latter question is, yes, they can appeal for either the quantum or eligibility. Both types of appeals are seriously looked into. I accept the fact that, regardless of housing type, people can have complicated family arrangements. There have been cases where we have reviewed and drawn the conclusion that they are worthy of higher support from the Silver Support. So, that can be done.

As to the Member's other question about whether the flat type is cut too finely, well, service and conservancy charges are dependent on also that type of clustering. So, from that perspective, it has not been a difficulty.

The Chairman: Mr Louis Ng.

Mr Louis Ng Kok Kwang: Chairman, I have three clarifications. First with regard to my cut on Maternity Protection, can I ask whether Singapore will consider ratifying the ILO Convention on Maternity Protection?

Second, I might have missed the reply, but can MOM set up and maintain the public database for employers to voluntarily declare that they have written policies to manage workplace harassments or that they have implemented the Tripartite Advisory on Managing Workplace Harassment?

The third question, to the Minister of State, is whether he can clarify why employers need to pay salaries of S Pass holders electronically but not for Work Permit holders. I thought I should also respond to the Minister's shoelace story, just to share with Members of this House that if you do see a wild animal, it is best not to run. Best to stay still.

Mrs Josephine Teo: Mr Chairman, to the question on Maternity Protection, our women should feel secure that they can remain in work even when they get pregnant. Our laws provide sufficient protection against dismissal during pregnancy as well as Maternity Leave. We do get referrals to look into cases and we will take the errant employers to task. If Mr Louis Ng is aware of specific cases, we will certainly look into them.

It does not always require for us to sign on to the ILO's Convention. We are party to the declaration that the ILO has, and we have a very long-standing partnership with the ILO. But all of the ILO Conventions are very binary in nature. When you sign on to one Convention, you must accept every single clause that is specified in the Convention. The difficulty is that, sometimes, we are party to other treaties or agreements that would make it very difficult for us to adhere so strictly to all of the items specified. As a country that values very strongly our commitment whenever we sign on these international conventions, we do not take them lightly.

But let me assure the Member that the laws in Singapore already provide adequate protection to women who become pregnant, as well as when they are on Maternity Leave.

The Chairman: Well, animal or no animal, some of us need to run. Would the Member wish to withdraw his amendment?

Mr Patrick Tay Teck Guan: In closing, I thank my fellow Parliamentary colleagues who, together with me, filed 54 cuts and shared their thoughts, views, questions and suggestions. I believe it has thrown greater light on the challenges we face as a country and the right things we must do to better our work, workforce and workplaces amidst the backdrop of digitalisation, disruption and demographic changes.

I would like to thank Minister Lim Swee Say, Second Minister Josephine Teo and Minister of State Sam Tan Chin Siong for their comprehensive updates, responses and the slew of new initiatives, policies and programmes which we can look forward to. I would also want to thank Permanent Secretary Aubeck, Deputy Secretaries Augustine and Ping Soon and the MOM team, including the Statutory Boards, for their hard work behind the scenes.

Sir, on a personal note, I would like to thank the former Manpower Minister and also the current Ministers of Manpower for realising my dream and wish to not just raise the salary cap, but also to remove it entirely in the Employment Act. With that, I beg leave to withdraw my amendment.

The Chairman: You are welcome.

Amendment, by leave, withdrawn.

The sum of $1,683,874,300 for Head S ordered to stand part of the Main Estimates.

The sum of $24,183,800 for Head S ordered to stand part of the Development Estimates.

The Chairman: Order, I propose to take a break now.

Thereupon Mr Speaker left the Chair of the Committee and took the Chair of the House.

Mr Speaker: Order. I suspend the Sitting and will take the Chair at 3.15 pm.

Sitting accordingly suspended

at 2.53 pm until 3.15 pm.

Sitting resumed at 3.15 pm

[Mr Speaker in the Chair]

Debate in Committee of Supply resumed.

[Mr Speaker in the Chair]