MOM COS 2016 SPEECHES
Minister Lim Swee Say
8 April 20161
Since coming to MOM just about a year ago, I have been asked many questions on our labour
policies. Employers looking for workers say they cannot find local workers. They ask, can MOM
relax (its policies) on foreign workers – up the quota, down the levy – and be more pro-business?
Workers looking for jobs, especially those looking for PMET jobs, say they cannot get the jobs
they want, or the promotion they feel they deserve. So they ask, can MOM be more pro-workers,
and why not “Singaporean first”, “Singaporean Only”?
In the past 5 years from 2010 to 2015, employment rate for those aged 25-64 has gone up to 80.5%,
among the highest in the world. Unemployment rate, at less than 2% overall, and less than 3% for
locals, is among the lowest in the world.
Income growth was broad based. Real wage went up by 3% in real terms per year, not just median
but the bottom 20th percentile as well. Profile of jobs has continued to improve. Local PMET
employment now accounts for 54% of total local employment. So these are good employment
outcomes for our workers, and for our people.
The next 5 years will be much more challenging. We are going to see a drop in the growth of
labour force, a sharp and structural drop. The growth in local labour force will drop by more than
half, from an average of 55,000 a year in the past five years to just around an average of 20,000 a
year for the next five years. So it will drop by more than half.
Likewise, the growth in foreign workforce will drop too - also by more than half, from an average
of 55,000 per year too in the last 5 years to just 20,000 – 25,000 in the next five years. So put together,
the Singapore Workforce growth will continue to drop from 4% a year in 2011 – 2014 to 2% last
year and likely around 1% by 2020. So, from 4% to 2%, and to 1% by 2020. This has great impact
on the future employment landscape. Days of more than 100,000 job growth a year are over. It is
simply not sustainable.
So with no gain in productivity, we have moved from 4 + 0 = 4. 4% growth in Singapore Workforce
plus 0% growth in productivity to give us 4% GDP growth in the year 2011-2014 on the average.
Last year, it dropped to 2+0=2. 2% workforce growth, 0% productivity to give us 2% growth in
GDP.
Lim Swee Say, Speech at the Committee of Supply Debate 2016 (excerpts; accessed 16 Jan 2017)
http://www.mom.gov.sg/newsroom/speeches/2016/0408-speech-by-minister-at-cos-2016.
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Question is: what will happen next? From 4+0=4, to 2+0=2. What is going to happen next? Will
employment outcomes in next 5 years be better or worse? I can think of three possible scenarios–
the Good, the Bad, and of course, the Ugly. The first scenario: we are unable to transform fast
enough, continue with zero productivity growth, and continue with manpower-led growth with
more than 100,000 jobs a year.
MOM has no choice – we do a U-turn, relax on foreign manpower which is what many employers
are asking for. So from 4+0, to 2+0, we will now go back to 3+0, because we let in more foreign
workers to make up for the slower growth in local manpower. With 3+0= 3, yes, we have 3% GDP
growth. But what happens to our local-foreign worker ratio? It will continue to drop, from the 2:1
today, maybe to 1:1, and beyond that, locals will become the minority in our workforce.
Singaporean Core will be weakened further. Our local – foreign divide will deepen further. This
is what I call an “Ugly” scenario.
The second scenario: to avoid this ugly outcome, MOM can stand firm. No U-turn in our foreign
manpower policy, continue to moderate the intake of foreign manpower. But without
breakthrough in productivity growth, we will go from 4+0 to 2+0 to eventually 1+0 =1. In other
words, low growth will become the new norm, in fact hovering around stagnation. If that
happens, it is a matter of time that unemployment in Singapore will go up, and wage growth will
stop. I call this a “Bad” scenario for all.
The third scenario: recognising that technology is changing the nature of jobs and global
competition is changing the nature of investment, instead of manpower-led growth of 100,000
new jobs a year, we go for manpower-lean growth. We speed up transformation. Instead of going
for larger quantity of job growth, we go for better quality job growth.
So step by step, sector by sector, we move from high value-added to value creation. From valuecreation to value-multiplication. Then we can return to positive productivity growth again. The
challenge for us is how to make it happen. Along the way, if we are more pro-business and less
pro-worker, we could end up with a strong economy with weak Singaporean Core. If we are more
pro-worker but less pro-business, we can have a strong Singaporean Core but a weak economy.
Neither is good. Growth cannot be sustained, and eventually it will go downhill.
The only way to succeed is for us to be more pro-business and more pro-worker both at the same
time. So that we can have both a manpower-lean and productive economy, with a strong
Singaporean Core. This is why MOM will focus our labour policies along three main thrusts:
First, to support industry transformation to become more manpower-lean and more
productive. Second, to build a strong Singaporean Core. Third, to strengthen the global
competitiveness of the Singapore workforce, comprising both local and foreign manpower.
First, to be a more manpower-lean and a more productive economy. This is of great concern to
MOM because if we fail to become a more manpower-lean economy, manpower will become the
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bottleneck in our future growth. Hence, Industry Transformation Maps are so important for us
to visualise the industry of the future, to make better use of technology, manpower and
innovation to break the bottlenecks of small-size limited resources, especially manpower
limitations. To forge a new mindset of Lean Transformation, Lean Innovation. From Lean
Manufacturing to Lean Services; from Lean Industry to Lean Enterprise.
Hence, MOM, together with the agencies under the MTI family, launched the Lean Enterprise
Development Scheme (LEDS) last year to help SMEs develop their capabilities, their manpower
and their markets, including international markets. And with the newly announced Automation
Support Scheme, in addition to manpower development, capability development and market
development, we can now add one more pillar, which is capacity expansion. Therefore, we are
very determined to speed up the LEDS during this slowdown.
Our second thrust is to build a strong Singaporean Core. Every Industry Transformation Map
will be accompanied by a Sectoral Manpower Plan, formulated by the Sectoral Tripartite
Committees. With the Sectoral Manpower Plans, we will be able to look ahead and identify what
kind of jobs will be created and what kind of skills need to be developed for the future, so that
we can support the growth of the industry in the future. In this way, we will also help our people
to upgrade and reskill. We aim to build a strong Singaporean Core in all major sectors of the
economy, as we continue to transform these industries.
We are also facilitating the entry of mid-career PMETs through our Professional Conversion
Programme. At the same time, we are helping them to become more lean and productive. So for
example, workers in the hotel sector are now undergoing the process of becoming multi-skilled
so that each person can perform more than one task and thereby optimise the deployment of
manpower. And along the way, help them to enhance their wages.
The “Adapt and Grow” initiative will provide enhanced employment support to help
Singaporeans, especially the mature PMETs and those affected by redundancy. We launched
Career Support Programme (CSP) in October last year to encourage employment of mid-career
PMETs (who are made redundant), especially those who are long-term unemployed, who have
been out of a job for more than six months.
So under the CSP, to encourage employers to hire these mid-career PMETs and pay wages of at
least $4,000 a month, we offer wage support of 10% to 40% for first year of employment. So a midcareer PMET who has been out of job for at least six months, they can come under the CSP and
we will help them to find employers. And for the first year of employment under the CSP, we
will actually subsidise wages of up to $12,600 for that first year. And for those who are more than
50 years old, they will get up to $25,200 for that first year.
To help more PMETs, we have decided to extend the CSP to two more groups of people, beyond
those who are mature and long-term unemployed. For PMETs made redundant and have
difficulty finding jobs, meaning six months or more, we will waive the age requirement of 40. In
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other words, even younger PMETs, having been made redundant, if they have difficulty finding
jobs for more than six months, they can come under CSP.
The other group is the mature PMETs made redundant. We will waive the requirement on the
six-month unemployment period. The moment they are retrenched, for those who are 40 and
above, they can apply to join CSP straight away without having to wait for six months.
Under the CSP, we cannot and are unable to promise the same job or the same pay. What we
promise is our full support to help them find jobs as quickly as possible, to start again at midcareer with salary of at least $4000 so that they can grow again from there.
We are also helping more PMETs to switch careers. A lifelong career with same company or even
the same industry has become less likely for many people. Many mid-career PMETs may have to
make career change due to redundancy or other personal reasons. That is the reason why we
launched the Professional Conversion Programme (PCP) in 2007 where we provide training and
wage support of up to 70% for the entire duration of training, which is typically about two years
or less. Currently, there are ten sectors under the PCP. Since the launch in 2007, over 7,000 PMETs
have benefited from this scheme.
We are stepping up efforts in the existing 10 PCP sectors. Healthcare is one example. In the last 3
years, on the average, we attracted about 370 PMETs to join the PCP for the healthcare sector.
This year, working together with MOH, we jointly launched programmes for Diagnostic
Radiographers, Occupational Therapists and Physiotherapists. As a result, we saw a 60% increase
in response rate. This year, we have about 600 PMETs applying to go through the professional
conversion, up from 370 per year in the last three years.
We are doing the same for other areas such as Media & Design, going into areas like game writers
and advertising. We are also going to extend the PCP to more sectors, especially those that are
hiring and still growing. For example, Chemicals and Pharmaceuticals, Logistics and Retail.
In addition, we recognise that some PMETs may not be switching career from one sector to
another sector. But they want to switch career within the same sector but in a different area of
specialisation. In the case of ICT, there are now specialisations where there is growing demand –
cybersecurity, network administration, software development and other emerging jobs under
Smart Nation initiative.
Henceforth, PCP will now support intra-sectoral as well as inter-company conversion. If
Company A is downsizing and retrenching workers, and Company B could be growing and
expanding, we will support Company B to take over the retrenched workers from Company A
and help them to go through the professional conversion, even at a company level.
Another way of helping mid-career PMETs is to match more of their expertise to SMEs. Many
SMEs are growing and still hiring and are looking for PMETs with experience and expertise. I
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was told that three areas of expertise are popular and in great demand – business development,
marketing & sales and operations management.
On the other hand, we also heard that many mid-career PMETs are not familiar with career
opportunities in SMEs. So we launched P-Max a year ago to connect mid-career PMETs and SMEs
better. I am happy to say that in the last one year, we matched over 800 PMETs to about 800 SMEs.
Rank and file jobseekers would likewise get more help under our Adapt and Grow
programme. We have a very successful Place and Train programme at NTUC e2i. Under this
programme, we provide salary support of 70%, up to $2,000 per month. We provide training
subsidies of up to 90%, and typically these training would last three to six months. Last year,
under the Place and Train programme, e2i placed 1,200 rank and file workers.
Now in some cases, when we try to match the rank-and-file workers with the employers looking
to fill these jobs, both sides are actually unsure about each other. The job seekers are unsure about
the job and the employer is unsure about the worker. So what do we do? We say, “Never mind,
go on a work trial”. So, for 80 hours, WDA will pay an allowance to the person and the employer
doesn’t have to pay anything. They just work together for 80 hours, just to try out. The idea is for
the workers to try out the jobs, and for the employer to try out the workers.
We intend to help more and more job seekers, especially for those who are unsure about what to
do under this Work Trial programme. WDA will up the allowance to $600 for 80 hours. At the
same time, we will raise our retention incentive.
Our third and final thrust is to strengthen the global competitiveness of our Singapore
Workforce. The Singapore Workforce today is made up of two-thirds local and one-third foreign.
Looking back, if we had insisted on “Singaporean Only” or “Singaporean First”, I think these
plants, many other investments and many other good jobs would not be here today. So, having
foreign manpower in our Singapore Workforce is a “plus” for us. This is not because
Singaporeans are not good, but because we simply do not have enough in numbers, in readiness
and in diversity of capabilities to meet the needs of the global investors and to beat the offers of
the other global competitors.
We stand a better chance of beating the competition for better investments and jobs, if our local
manpower and foreign manpower here work together as one Singapore Workforce. 2/3 + 1/3 as
one Singapore Workforce, rather than as two competing workforces – 2/3 versus 1/3. We must
remember that 2/3 versus 1/3 will always be less than one. At the end of the day, we must
recognise that the real competition is out there globally, not in here locally.
Today, at the national level, foreigners account for 21% of jobs within the EP salary range, which
is currently $3,300. In other words, of all the jobs in Singapore that pay more than $3,300 today,
foreigners account for 21%, and the local share is 79%. By sector, the foreign share varies across
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the industries. The highest are found in Infocomm and F&B at around 37%. In all other sectors
and industries, the ratio of foreign to local counterparts is less than 1:2, less than 1/3.
We must also bear in mind that the growth of Employment Passes (EPs) has also slowed down
from 32,000 in 2011, to 9,000 last year. So, from 32,000, it has dropped to 9,000. Even though the
overall ratio at the national level shows that foreigners are the minority, yet there is a perception
amongst some Singaporeans – “Why am I the minority in my workplace, working here in
Singapore?” Why is that the case?
I think the answer, is what I call “pockets of EP concentration” in some companies, segments of
industries, and at some locations. This is highly undesirable because these “pockets of EP
concentration” have led to the perception that we have a liberal approach in our intake of EPs.
This is not the case. There are also accusations of unfair consideration for locals or discrimination
against our local PMETs.
I am also concerned that some of these employers may have violated the Employment of Foreign
Manpower Regulations. They require companies to take, and let me quote: “reasonable efforts to
provide fair employment opportunities to citizens of Singapore, including efforts to attract and
consider such citizens for employment or to train them and develop their careers and potential
in the workforce.”
We will therefore refine the processing of work pass applications for EP. Currently, when
processing EP applications, we assess the individual-related criteria, their qualifications, their
experience, their salary. Going forward, we will also be looking at three additional factors that
are company-related. So, not just individual-related criteria but also company-related. And the
assessment will be carried out by TAFEP – Tripartite Alliance for Fair and Progressive
Employment Practices.
First assessment, how strong is the Singaporean Core in these companies today? Majority of
companies as I mention earlier in the same industry have healthy Singaporean Core but there are
outliers, significantly weaker than the industry norms. Second assessment, with a weak
Singapore Core today, do they have any firm commitment to nurture and strengthen the
Singaporean Core for the future? Thirdly, in consultation with relevant economic agencies, we
will assess how relevant are these “double weak” companies - weak Singaporean core, weak
commitment to nurture Singaporean core, how relevant are these double weak companies to our
economy and society? If they are not here, how much will we be affected? And if the answer is
not much, they are what we call the “triple weak” companies, i.e. weak in Singaporean Core,
weak in commitment and at the same time, weak economic linkage and social impact.
The vast majority of companies out there that they are not “triple weak” and hence will not be
affected by this move. MOM will continue to serve them as per current practice. There is nothing
to fear, as long as they continue to treat local PMETs fairly.
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As we take firm action against the “triple weak” companies, we also take proactive action to
recognise and partner with those who are “triple strong” i.e. Strong in Singaporean Core, Strong
commitment to nurture Singaporean core and Strong economic linkage or social
impact, especially in sectors that are crucial to our future growth; such as, smart nation, advanced
manufacturing, future services and more.
MOM will launch a Human Capital Partnership (HCP) Programme later this year. We are going
to help them to tap on SkillsFuture to strengthen Singaporean Core at all levels in these triple
strong companies – Earn and Learn at entry level, SkillsFuture Mid-Career Enhanced Subsidy,
Leadership Development Initiative. And to provide greater facilitation to them to bring in foreign
talents with the expertise to strengthen and transfer capability to our local PMETs.
One flagship initiative under the HCP is to nurture promising local talents into regional talents
into potential global talents. Tentatively, I intend to call this programme the Glocal Talent
Development Program. Through this combination of efforts, countering “triple weak”, partnering
the “triple strong”, we want to send a clear signal and strong message that whether you are local
or foreigner, whether employer or employee, whether union or management, we all have a role
to play, to work together, to strengthen Singapore Workforce, to compete for best investments
and jobs, to Singapore for all to share.
I became an active member of Singapore Tripartism when I joined NTUC in 1996, 20 years ago.
At that time, I learned from then-Secretary General Brother Lim Boon Heng that a job is the best
welfare for our workers. Then came the Asian Financial Crisis. We saw record retrenchments;
about 29,000 workers lost their jobs. Unemployment went up. Workers and union leaders were
worried about the future. So I added one more line. Job is the best welfare. And full employment
is the best protection for our workers.
We have major challenges to overcome. And we must succeed. To secure the best welfare – good
jobs, good careers. And the best protection – high employment, low unemployment for our fellow
workers, our fellow Singaporeans.
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Minister of State Teo Ser Luck
8 April 20162
Chairman, we are facing productivity challenges, just like other countries. Companies, especially
the SMEs, will face increasing challenges. That is why SMEs need to review their processes so
that they can compete in the global marketplace.
Our policies also need to catch up. We need to make sure that there is an ecosystem and
environment for the SMEs to grow, and help progressive businesses to undergo transformation
and change. And we hope that these companies – especially the SMEs which comprise more than
90% of our registered entities – will continue to build a Singaporean Core in a manpower-lean
economy. Companies will have to learn to survive in this manpower-lean economy, by being
lean themselves.
Building Human Capital for Manpower-lean Enterprises and Industries
Lean Enterprise Development (LED) Scheme update
Late last year, Minister Lim launched the Lean Enterprise Development (LED) concept, which is
both a pro-business and pro-worker concept. In the five years that I’ve been in the Ministry of
Trade and Industry, we have seen applications for productivity schemes rise. However, the
productivity index has not risen in tandem. This is because the productivity schemes have
breadth, but not depth. Companies get the grant, but did not implement comprehensive change
to become more manpower-lean.
The LED concept will build depth. It would require firms to look deeply into their processes, and
decide what changes have to be made before thinking about the productivity schemes or grants
to tap on. LED hopes to achieve four objectives: quality workforce; manpower-lean; developing
Singaporean Core; and, when you achieve these three, you are going to be more futureready. This will help companies become leaner and more productive.
To achieve that, companies have to undergo three phases. First, they have to assess their current
situation. Second, they must identify and apply for Government grants, if needed, to implement
automation, productivity and process change, job redesign and computerisation, to name a few.
Finally, companies will be future-ready. SMEs will need to be supported by Government agencies,
policies, as well as schemes, to transit through these three phases.
First, we will assess their proposals and assist them in developing manpower-lean proposals that
could actually work, within a two year timeframe.
Teo Ser Luck, Speech at the Committee of Supply Debate 2016 (excerpts; accessed 16 Jan 2017)
http://www.mom.gov.sg/newsroom/speeches/2016/0408-speech-by-mos-teo-at-cos-2016.
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Second, the LED taskforce can integrate existing Government schemes, so that businesses do not
need to worry about which schemes and grants to apply for, as long as they have the intent to be
manpower-lean; they need only apply with a quality LED proposal. We will also provide
temporary foreign worker flexibility to help companies retain skilled foreigners to impart their
skills and knowledge to local apprentices, so that they can take on those jobs and help scale-up
the business.
Third, we will hand-hold them through the implementation process. It is not an easy process but
it is definitely achievable. Based on the applications that we have received so far, it is quite
promising. We want to do more, and we need the partnership of the trade associations and
chambers to help us. Thus, we have appointed 10 of them as LED Multipliers, which include the
Chinese Chamber of Commerce and NTUC u-SME, to guide companies in their LED application
process. SMEs do not need to worry about who they can approach, because they can approach
any of these 10 LED Multipliers.
Since the launch of the scheme, we have received applications from 79 firms from a broad range
of sectors – food and beverage, construction, food manufacturing, ICT and media, professional
services, electronics, hotels, logistics, precision engineering, and others. I am also pleased to
update that of these, we have approved LED support for 30 firms which have made strong
commitments to change.
From the companies’ applications and proposals, we found three commonalities. First:
centralised operations. This means that facilities are shared among groups of companies. For
example, companies can come together, take common processes and centralise them to achieve
economies of scale and reduce wastage. Second: automation plans. Such automation plans
combine man with machine to make business processes efficient. It also supports job redesign
efforts and reduces manpower wastage. Third and most importantly: they focus on skill
development for Singaporeans, to build a core of expertise needed to sustain business growth.
This is aligned to our SkillsFuture vision and mission.
MOM will be supporting the Industry Transformation Programmes, by taking a sector-level
approach to help develop a skilled Singaporean core, and the LED Scheme will supplement these
efforts.
Nurturing Human Capital – From Fair to Progressive Workplaces
Behind every business leader’s ability to develop and execute a winning people-oriented strategy
is a forward-looking and competent Human Resource (HR) team. The advancement of the HR
profession is therefore a critical enabler of our economic transformation.
Thus, we formed the HR Sectoral Tripartite Committee (HRSTC) in September 2015, comprising
unions, businesses, Government and institutes of higher learning. They are currently developing
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a HR Sectoral Manpower Plan (HRSMP). Over the last six months, the HRSTC has engaged over
150 stakeholders through 6 engagement sessions. One recurring feedback is the need for HR
professionals to evolve, to support businesses by becoming more strategic, thinking for the
longer-term, and being able to look at the macro view. They now have to think like a CEO. And
employers expect that HR professionals can apply these skills in alignment to organisational goals.
They cannot work in isolation – the HR strategy has to be integrated into the company.
The committee is also recommending that we develop a pathway because of that requirement.
One of the initiatives being considered under the HRSMP is the development of a National HR
Professional Certification Framework. We are looking at setting up a system to certify HR
professionals based on components such as HR competencies, HR work experience, and a
professional code of conduct and ethics. Understanding of local employment regulations,
guidelines and practices will also be included.
Progressive practices are essential business strategies
The work of the HR professionals has become more demanding, as I have mentioned. Many a
time, the expectations from employees is about the work to personal time ratio.
So, we encourage Flexible Work Arrangements (FWA) in the workplace. It is a very critical
component, and a critical success factor for any good company that wants to retain staff, be more
dynamic, and also recruit personnel. FWAs can help businesses thrive; leverage on technology to
do so, and enhance it, for example, by hot-desking, working from home or working from any
other place – it’s a flexible workplace. We know that the majority of the global businesses have
reported increases in employee productivity and company revenue, as a result of implementing
FWAs.
More businesses are recognising these benefits. The proportion of companies offering at least one
form of FWA to their employees has increased from 38% in 2011 to 47% in 2014. But it is a neverending effort to get more companies on board.
The Tripartite Advisory on Flexible Work Arrangements – developed with the consensus of
tripartite partners – was launched in November 2014 to help employers, supervisors and
employees through the journey of implementing FWAs. The Work-Life campaign which
concluded in March 2016, helped to reinforce that FWAs can benefit both employers and
employees. An online resource portal will also be launched, to provide employers and employees
with one-stop access to resources, like workshops, trainers and consultants, toolkits, and guides,
related to the adoption of FWAs. Moving forward, we will take a more targeted sectoral approach
especially on sectors which may be facing challenges implementing FWAs. Both initiatives have
target launch dates in the second half of 2016. More efforts will be launched by the TriCom.
We need to carefully study the pros and cons of legislating FWAs in Singapore, and how we
balance between being pro-business and pro-worker. Its success is contingent on conditions such
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as perceptions of society, employers and co-workers towards FWAs. In other countries, FWAs
are usually already prevalent before legislation is introduced. But that should neither stop us
from taking a review, nor our efforts to continue to raise awareness and educate on FWAs.
Fundamentally, employers and employees need to understand and be committed to a flexible
workplace culture, before FWA legislation can be in place.
Conclusion
Chairman, we need to help the SMEs, industries, and our workforce to adapt and grow, to achieve
better jobs and better careers. Transformation is not easy. But if we put our hearts and minds
together, I am sure we can build and ride the fourth wave of economic transformation to future
success. Thank you.
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Minister of State Sam Tan
8 April 20163
Mr Chairman, I will now brief the House on three of the Ministry of Manpower’s focus areas:
One, to help older workers remain employable;
Two, to improve low-wage workers’ earnings; and
Three, to improve workplace safety and health.
Older Workers
Sir, our labour force is aging quickly. The proportion of residents in the labour force aged 50
and above is about one-third now, up from about one-quarter a decade ago. This trend will
continue over the next two decades; and we must be prepared to accept and embrace this new
reality, and turn it into opportunity.
Encouraging Employment of Older Workers
My Ministry has therefore been working closely with tripartite partners to help older workers,
under the Tripartite Committee on Employability of Older Workers, or Tricom in short. Sir,
today, our employment rate for older residents aged 55 to 64 is 67%. This is well above
the OECD average of 57% and is comparable with some of the developed and advanced
countries like Japan (70%) and South Korea (66%).
For there to be a truly age-friendly workplace, mindsets must be changed. The nature and the
design of the jobs must also be changed. To change mindsets, the Tricom works through the
Tripartite Alliance for Fair & Progressive Employment Practices, or TAFEP in short, to
champion positive workplace attitudes towards older workers. TAFEP has been conducting
many ongoing publicity campaigns to emphasise the value that older workers can bring to
companies and their younger co-workers.
Balancing Employability and Wages of Older Workers
In the early days, older workers were less wage-competitive because of rigid seniority-based
wages. So, when the minimum retirement age was raised to 62 in 1999, the tripartite partners
at that time agreed that the law could provide some flexibility for employers to reduce the
wages of workers turning 60 by up to 10%.
Since then, tripartite partners have worked very hard to promote flexible and performancebased wage regimes and systems. And today, the vast majority, actually more than 98%, of
companies no longer reduce wages at age 60, so the wage-cut provision that was put in place
in 1999 is no longer relevant today. From 1 July 2017 onwards, we will remove this provision
from our law. Going forward, pay should be reflective of workers’ job scope and values, rather
than their age.
Sam Tan, Speech at the Committee of Supply Debate 2016 (excerpts; accessed 16 Jan 2017)
http://www.mom.gov.sg/newsroom/speeches/2016/0408-speech-by-mos-tan-at-cos-2016.
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Raising Of Re-employment Age to 67
Let me now turn to re-employment of older workers. Four years since we introduced the reemployment concept, I am pleased to say that the implementation of this scheme has been
relatively smooth. And in recent years, over 98% of local employees who wished to continue
working were offered employment beyond 62.
When we introduced re-employment in 2012, we also committed to raising the re-employment
age from 65 to 67 at an appropriate time. PM shared at last year’s National Day Rally that we
will do so by 2017. I am very happy to announce that tripartite partners have discussed and
agreed that the effective date will be 1 July 2017.
Revised EAP
The tripartite partners strongly agree that employers should consider all available reemployment options to identify suitable jobs for their employees. However, there will be
situations where re-employment is just genuinely not possible. As a last resort, we have
provided for an Employment Assistance Payment, or EAP in short. In line with the raising of
the re-employment age, the tripartite partners agreed to increase the EAP amounts and age
coverage accordingly.
Low-Wage Workers
Let me highlight two of the Government’s initiatives targeted at uplifting our low-wage
workers. They are Workfare and the Progressive Wage Models.
Workfare
The Workfare Income Supplement or WIS scheme has been instrumental in encouraging lowwage Singaporean workers to continue working. The Workfare Training Support scheme or
WTS also provides significant support to low-wage workers to upgrade their skills so that
they can stay employable and enjoy higher wage growth. These schemes will be enhanced in
2017 to provide more support for our low-wage Singaporean workers who work and train.
Progressive Wage Model
In specific sectors with a larger concentration of low-wage workers, prevalent cheap-sourcing
was causing wages to stagnate. To address this concern, we set up tripartite committees to
develop Progressive Wage Models, or PWMs.
These PWMs provide cleaners, security officers and landscape workers with a clear pathway
of career progression. The workers can look forward to earning higher wages, in line with
higher skills and productivity improvements. The PWM has been fully implemented for the
cleaning sector since 1 September 2015. As of 31 December 2015, about 40,000 resident
outsourced cleaners are covered by this scheme.
13
Conclusion for Low-wage Workers
Sir, we are starting to see results of our various efforts to support low wage workers. They are
bearing fruits now. Over the last 5 years, real incomes of full-time employed Singapore
citizens at the 20th percentile grew by 2.9% p.a. in real terms. This is comparable with the
growth in the median incomes over the same period. We will continue to work very closely
with our tripartite partners on this important issue.
Raising Workplace Safety and Health (WSH) Standards
In 2015, our workplace fatality rate was at 1.9 fatalities per 100,000 employed persons. This is
a slight increase from 1.8 in 2014. We are concerned, although the increase is quite marginal.
Just this year alone, we lost 22 lives at work. That is 22 too many. In fact, every fatality is one
too many.
We will adopt a four-pronged approach to reduce the workplace fatality and incident rate:
First, raise awareness,
Second, build WSH capability,
Third, strengthen enforcement, and
Fourth, impose heavier penalties.
In terms of enforcement, we conduct around 16,000 workplace inspections a year. That is more
than 1,300 inspections every month. In the last few months, I have participated in three
inspections, and I will continue to do so until I feel that the level of workplace safety reaches
a satisfactory level. To strengthen deterrence, my Ministry will be taking tougher actions
against recalcitrant employers.
We will impose harsher penalties if things do not improve. But fundamentally, WSH needs to
be driven from the top. If companies do not take WSH seriously and flout safety rules despite
warning and advice, we will come down hard on them through stiff penalties. We are doing
this as a last resort as we have a responsibility to protect our workers to ensure that they work
in a safe and healthy environment.
14
MOM EXPENDITURE ESTIMATES FOR FY2016
Mission Statement
To develop a productive workforce and progressive workplaces, for Singaporeans to have
better jobs and a secure retirement.
FY2016 Expenditure Estimates
Expenditure Estimates by Object Class
Code
Object Class
TOTAL EXPENDITURE
Actual
FY2014
Estimated
FY2015
Estimated
FY2016
Revised FY2015
Change over FY2015
$1,265,188,291
$1,478,333,500
$1,379,144,100
$1,792,324,900
$413,180,800
30.0%
$1,228,501,443
$1,454,043,600
$1,353,115,300
$1,779,000,700
$425,885,400
31.5%
RUNNING COSTS
$506,803,559
$634,254,200
$615,554,100
$602,871,000
-$12,683,100
-2.1%
Expenditure on Manpower
$171,184,504
$179,036,400
$180,829,900
$187,377,900
$6,548,000
3.6%
Main Estimates
OPERATING EXPENDITURE
1200
Political Appointments
1500
Permanent Staff
1600
Temporary, Daily-Rated & Other Staff
Other Operating Expenditure
2100
Consumption of Products & Services
2300
Manpower Development
2400
2700
International & Public Relations, Public
Communications
Asset Acquisition
2800
Miscellaneous
Grants, Subventions & Capital
Injections to Organisations
3100
Grants, Subventions & Capital
Injections to Statutory Boards
TRANSFERS
3500
Social Transfers to Individuals
3600
Transfers to Institutions &
Organisations
3800
International Organisations & Overseas
Development Assistance
1,473,228
1,368,500
1,505,400
1,550,600
45,200
3.0
169,521,174
177,244,000
179,138,400
185,635,600
6,497,200
3.6
190,102
423,900
186,100
191,700
5,600
3.0
$164,330,833
$214,694,100
$210,084,400
$213,480,700
$3,396,300
1.6%
144,023,977
192,846,700
188,703,600
193,710,700
5,007,100
2.7
6,164,660
6,637,400
6,202,600
6,260,300
57,700
0.9
13,191,963
14,250,900
14,195,900
12,601,900
-1,594,000
-11.2
782,051
848,300
816,100
765,500
-50,600
-6.2
168,182
110,800
166,200
142,300
-23,900
-14.4
$171,288,221
$240,523,700
$224,639,800
$202,012,400
-$22,627,400
-10.1%
171,288,221
240,523,700
224,639,800
202,012,400
-22,627,400
-10.1
$721,697,884
$819,789,400
$737,561,200
$1,176,129,700
$438,568,500
59.5%
692,139,525
781,853,300
699,579,500
1,101,324,500
401,745,000
57.4
27,590,599
36,036,100
35,781,700
72,905,200
37,123,500
103.7
1,967,760
1,900,000
2,200,000
1,900,000
-300,000
-13.6
$36,686,849
$24,289,900
$26,028,800
$13,324,200
-$12,704,600
-48.8%
36,163,304
24,289,900
26,028,800
13,324,200
-12,704,600
-48.8
523,544
0
0
0
0
0.0
Development Estimates
DEVELOPMENT EXPENDITURE
5100
Government Development
5200
Grants & Capital Injections to
Organisations
15
Establishment List
Category/Personnel
Actual
FY2014
Estimated
FY2015
Revised
FY2015
Estimated
FY2016
POLITICAL APPOINTMENTS
3
3
3
3
Minister
1
1
1
1
Senior Minister of State
1
1
0
0
Minister of State
0
0
2
2
Parliamentary Secretary
1
1
0
0
OTHER STATUTORY APPOINTMENTS
1
1
1
1
President, Industrial Arbitration Court
1
1
1
1
PERMANENT STAFF
1,729
1,732
1,723
1,734
Accounting Profession (2008)
4
4
4
4
Administrative
11
11
11
11
Corporate Support
132
119
105
105
Deputy President, Industrial Arbitration Court
1
1
1
1
Driving
1
1
1
1
Economist Service
4
4
4
4
Engineering Profession (Manpower)
70
70
70
70
Legal
5
5
5
5
Management Executive Scheme (2008)
831
861
925
936
Management Support Scheme (2008)
550
538
483
483
Management Support Scheme (Language Officer)
3
3
3
3
Medical Scheme (Manpower)
9
9
9
9
Operations Support
12
10
9
9
Photographic Services
1
1
1
1
Scientific Profession (Manpower) (2008)
1
1
1
1
Shorthand Writers
10
10
8
8
Statistician (Manpower) (2008)
21
21
21
21
Technical Support Scheme (2008)
63
63
62
62
TEMPORARY, DAILY-RATED & OTHER STAFF
110
134
141
141
Administrative
1
2
0
0
Corporate Support
0
2
2
2
Management Executive Scheme (2008)
90
109
124
124
Management Support Scheme (2008)
19
21
15
15
OTHERS
741
725
809
804
Singapore Workforce Development Agency
741
725
809
804
TOTAL
2,584
2,595
2,677
2,683
16
FY2015 Budget
The Ministry of Manpower’s (MOM) total FY2015 expenditure is projected to be $1.38
billion, which is $113.96 million or 9.0% higher than the FY2014 expenditure of $1.27 billion.
Operating expenditure in FY2015 is projected to be $1.35 billion, an increase of $124.61 million
or 10.1% over actual FY2014 expenditure of $1.23 billion. The increase is mainly due to funding
for SkillsFuture initiatives.
Development expenditure in FY2015 is projected to be $26.03 million, a decrease of $10.66
million or 29.1% over actual FY2014 expenditure of $36.69 million. The decrease is mainly due
to lower cashflow required for the IT projects in the Ministry.
FY2016 Budget
The total expenditure of MOM in FY2016 is projected to be $1.79 billion, which is an increase
of $413.18 million or 30.0% more than FY2015 revised expenditure. Of the FY2016 projected
total expenditure, $1.78 billion or 99.3% will be set aside as operating expenditure, with the
remaining $13.32 million or 0.7% as development expenditure.
$1.14 billion or 63.5% of the total FY2016 budget will be allocated to the Financial Security for
Singaporeans Programme. The Productive Workforce Programme will be allocated $317.18
million or 17.7% and the Progressive Workplaces Programme will be allocated $175.45 million
or 9.8%. The balance of $161.65 million or 9.0% will be allocated to the Corporate Services and
Information Technology Programme.
Operating Expenditure
The provision of $1.78 billion for FY2016 operating expenditure represents an increase of
$425.89 million or 31.5% over FY2015. The increase is mainly due to funding provided for
Silver Support Scheme and higher projected expenditure for the Workfare Income
Supplement Scheme. Of the operating expenditure, $400.86 million or 22.5% will be set aside
for operating expenses, $202.01 million or 11.4% for grants and the remaining $1.18 billion or
66.1% for transfers.
Productive Workforce Programme
The Productive Workforce Programme aims to develop a productive and adaptable workforce
that supports a vibrant economy, where sustainable real income increases are achieved
through higher skills and productivity improvements. Its FY2016 operating budget of $313.37
million will go towards raising the capabilities of the local workforce. Employment facilitation
and career support will be strengthened to help Singaporeans access quality jobs and build
fulfilling careers through their working lives. This programme also includes the strengthening
of our foreign manpower policies and framework, to raise the quality of the complementary
foreign manpower in Singapore, and the formulation of wage guidelines, through the
National Wages Council, that align with long-term economic and social objectives.
17
Progressive Workplaces Programme
The Progressive Workplaces Programme seeks to build great workplaces with harmonious
labour relations, progressive, safe and healthy workplace practices. This includes improving
employment and occupational safety standards, ensuring the proper management and wellbeing of foreign workers, safeguarding the integrity of the workpass framework, as well as
the enforcement and promotion of fair and progressive workplace practices in Singapore.
MOM also works closely with various stakeholders including the industry and tripartite
partners to strengthen tripartism and labour relations. The total FY2016 operating budget for
this programme is $170.67 million.
Financial Security for Singaporeans Programme
The Financial Security Programme, with an FY2016 operating budget of $1.14 billion, aims to
help Singaporeans achieve financial security and peace of mind in retirement through the CPF
system and lifelong employability. MOM also focuses on uplifting and improving the incomes
of older and low-wage workers, through the Workfare Income Supplement (WIS) Scheme,
Progressive Wage Model, Silver Support Scheme and Retirement and Re-employment Act
(RRA), in order to bring about inclusive growth for all Singaporeans.
Corporate Services and Information Technology Programme
The Corporate Services and Information Technology Programme covers the setting of broad
policy and strategic directions for the Ministry, legal and prosecution services, customer
management and communications. With an FY2016 operating budget of $156.90 million, the
programme also incorporates central management and administration functions such as
information technology services, finance, human resource management, internal audit
services, facilities management and emergency planning. Initiatives to drive process
improvements and increased productivity within the ministry are also covered here.
Development Expenditure
The provision of $13.32 million for FY2016 is a decrease of $12.70 million or 48.8% from the
revised FY2015 development expenditure. The budget decrease is mainly due to lower
cashflow required for the IT projects in the Ministry.
Total Expenditure by Programme
Running
Costs
Transfers
Operating
Expenditure
Development
Expenditure
Total
Expenditure
36,726,800
119,661,400
1,101,324,500
37,242,300
1,138,051,300
156,903,700
0
4,744,200
1,138,051,300
161,647,900
SS
Financial Security for Singaporeans
Corporate Services and Information
Technology
Productive Workforce
313,267,400
107,400
313,374,800
3,802,000
317,176,800
ST
Progressive Workplaces
133,215,400
37,455,500
170,670,900
4,778,000
175,448,900
$602,871,000
$1,176,129,700
$1,779,000,700
$13,324,200
$1,792,324,900
Code
Programme
SQ
SR
Total
18
Development Expenditure by Project
Project Title
DEVELOPMENT EXPENDITURE
GOVERNMENT DEVELOPMENT
Total
Project Cost
...
Actual
Expenditure
up to end of
FY2013
...
Actual
FY2014
Estimated
FY2015
Revised
FY2015
Estimated
FY2016
$36,686,849
36,163,304
$24,289,900
24,289,900
$26,028,800
26,028,800
$13,324,200
13,324,200
...
...
MOM Digital Services
2,548,100
18,000
1,631,854
635,200
891,400
270,000
Integrated Legal Services Division (LSD)
System
MOMster Intranet Revamp
1,244,400
0
726,323
342,000
438,800
55,600
1,678,400
0
85,131
0
1,000,500
414,900
Windows Platform Technology Refresh
2,144,200
0
0
0
1,755,200
136,200
Finance and Procurement System
2,579,200
0
0
0
81,000
1,118,100
Corporate Services and Information
Technology Programme
Minor Development Projects
...
...
5,564,127
4,291,900
8,180,000
2,749,400
21,025,400
1,072,144
8,605,883
11,325,000
10,664,400
3,802,000
4,193,900
580,621
1,142,702
1,136,000
1,158,600
358,400
35,620,900
17,143,274
10,936,886
1,170,200
567,900
4,419,600
Productive Workforce Programme
Phase 1 New Foreign Domestic Worker (FDW)
IT System
Progressive Workplaces Programme
INSIGHTS@MOM - Phase 1 (MOM wide
Business Intelligence and Analytics Initiative)
Integrated Foreign Manpower Management
System
Completed Projects
...
...
7,470,399
5,389,600
1,291,000
0
GRANTS & CAPITAL INJECTIONS TO
ORGANISATIONS
...
...
523,544
0
0
0
Completed Projects
...
...
523,544
0
0
0
19
Key Performance Indicators
Desired Outcomes




Productive Workforce
Financial Security for Singaporeans
Progressive Workplaces
Customer Responsiveness
Desired Outcome
Productive Workforce
Performance Indicator
Resident long-term unemployment rate (%)4
Resident employment rate (age 25-64)
(%)5
Labour Force Evaluation Measure by Business Environment
Risk Intelligence (BERI)6
World Competitiveness Yearbook by IMD, (Labour Market
Sub-Factor)
Global Competitiveness Report by WEF, (Labour Market
Efficiency)
No. of job placements7
Job placement rate
Financial Security for
Singaporeans
(%)8
% of active CPF members who are able to meet the required
retirement sum at age 559
Resident employment rate (age 55-64) (%)
Actual
FY2013
Actual
FY2014
Revised
FY2015
Estimated
FY2016
0.6
0.6
0.6
NA
79.0
79.7
80.5
NA
1st
1st
1st
NA
13th
11th
11th
NA
1st
2nd
2nd
NA
16,934
15,645
14,530
15,000
57.2
54.0
56.0
50.0
52
53
54
55
65.0
66.3
67.2
NA
2.1
1.8
1.9
NA
Progressive Workplaces Workplace fatal injuries per 100,000 employees
4
Figures refer to annual average for CY.
5
Figures reported are as at June of the CY based on the Comprehensive Labour Force Survey conducted annually.
Figures refer to the actual results and are reported annually by the respective external sources i.e. BERI (in April), IMD (in
May) and WEF (in September).
6
7
Figures are tracked by CY.
Based on the average 6-month rolling rate (i.e. total number of job seekers placed over a 6–month period divided by the total
number of registered job seekers (excluding training seekers) over the same period). For the Revised FY2015 and Estimated
FY2016 job placement rate figures, individuals who are not ready to seek employment (e.g. not contactable) are excluded from
the number of new job seeker registrants.
8
New indicator to measure retirement adequacy. “Meet required retirement sum” is defined as “Meet Full Retirement Sum in
cash (for those who don’t own property)” or “Meet Basic Retirement Sum in cash and property ownership”.
9
20
Desired Outcome
Customer Responsiveness
Actual
FY2013
Actual
FY2014
Revised
FY2015
Major Injuries per 100,000 employees10
19.8
20.0
17.6
18.0
No. of labour disputes per unionised establishment
0.11
0.09
0.08
0.11
No. of labour disputes per 1,000 non-unionised
employees
2.82
3.00
3.08
NA
No. of Foreign Workers (FWs)/ Foreign Domestic
Workers (FDWs) involved in Employment of
Foreign Manpower Act (EFMA) contravention
detected through complaints per 1,000 FWs
2.00
2.19
2.17
2.12
94
96
95
96
92.3
97.6
98.3
NA
Performance Indicator
% of calls, emails, faxes, letters, and feedback
responded to within service levels
% of unionized and non-unionised dispute cases
Settled within 3 months from 1st meeting
10
Estimated
FY2016
New indicator to measure major injury rates, which is an accident category just below fatal injuries in terms of severity.
21