Benefits from Productivity and Innovation Credit and Capability Development Grant
Ministry of Trade and IndustrySpeakers
Summary
This question concerns Mr Desmond Choo’s inquiry regarding worker benefits from the Productivity and Innovation Credit (PIC) and Capability Development Grant (CDG) and how productivity gains are shared equitably. Minister for Trade and Industry (Industry) S Iswaran stated that over the last three years, PIC benefited 80,000 enterprises and 2.5 million workers annually, while CDG supported 700 enterprises and 150,000 workers. To share gains, the Government, industry, and unions collaborate on measures that result in allowances or payments for workers through National Trades Union Congress partnerships. He also highlighted that the Inclusive Growth Programme co-funds productivity projects on the condition that companies share resultant gains with workers through higher wages. These measures aim to help both Singapore enterprises and workers achieve productivity improvements and build business capabilities while ensuring that gains are distributed fairly.
Transcript
3 Mr Desmond Choo asked the Minister for Trade and Industry (Industry) (a) how many workers have benefited from the Productivity and Innovation Credit (PIC) and Capability Development Grant (CDG) over the last three years; and (b) how can the Ministry work towards having productivity gains from public schemes, such as PIC and CDG, be shared equitably with workers.
Mr S Iswaran: The Productivity and Innovation Credit (PIC) and Capability Development Grant (CDG) are aimed at helping Singapore enterprises and workers achieve productivity improvements and build business capabilities. Over the last three years, an average of 80,000 enterprises, employing more than 2.5 million workers, benefited from the PIC scheme annually. Over the same period, an annual average of 700 enterprises, employing more than 150,000 workers, tapped on the CDG.
The Government, industry and the unions have been working together to enable both companies and workers to benefit from productivity improvements. For example, the National Trades Union Congress (NTUC) has partnered various companies on measures that raise their productivity and competitiveness. The resultant productivity gains are then shared with workers in these companies, such as through allowances or payments. As a specific example, the Inclusive Growth Programme (IGP) administered by the Employment and Employability Institute (e2i) co-funds companies to embark on productivity improvement projects. The companies, in turn, are required to share their productivity gains with their workers through higher wages.