1 Mr Leon Perera asked the Minister for Manpower for wrongful dismissal claims lodged with the Tripartite Alliance for Dispute Management (TADM) since April 2019 (a) how many mediation requests have been refused by TADM; (b) what is the proportion of these requests which have been refused; (c) what are the typical reasons for such refusal; (d) whether TADM mediators assess and advise disputants on the validity of their claims; (e) if so, what laws empower them to do so; and (f) what qualifications are TADM mediators required to have.
\tThe Senior Minister of State for Manpower (Dr Koh Poh Koon) (for the Minister for Manpower): Under the Employment Claims Act (ECA), wrongful dismissal claims must be filed within one month from the last day of employment. They must then undergo mediation at the Tripartite Alliance for Dispute Management (TADM). The intention is for mediation to be the first line of response, failing which claims can be adjudicated at the Employment Claims Tribunals (ECT).
Each year, about 60 employees, or 6% of those seeking TADM mediation services for wrongful dismissal claims, exceeded the time limit for filing. While such claims are no longer eligible for mediation under the ECA, TADM still assists both parties to resolve the disputes if they were prepared to settle the matter amicably.
For claims within the time limit, TADM assesses the facts of each claim based on the Tripartite Guidelines on Wrongful Dismissal. If TADM assesses the case to be unsubstantiated, it explains to the claimant the reasons and does not continue with the mediation process. Usually, this is because the facts as reported by the claimant showed that the employer had contractually terminated the employment in accordance with the Employment Act or the employment contract, and the employee could not cite any other facts suggesting that the termination was wrongful.
Some claimants withdraw their case at this stage, after hearing TADM's assessment. Others continue their case at the ECT. TADM's approach of referring cases to ECT without mediation reduces potential burden on employers, who should not have to attend mediation for unsubstantiated claims. It also does not affect claimants' rights in any way. About 130 cases each year, or 12% of all wrongful dismissal claims, were referred to the ECT in this way. The outcomes at the ECT generally validate our mediators' assessment. A large majority of the cases were either dismissed by the Magistrate or withdrawn by the claimants at the ECT – an indication that the process is working well as intended.
In addition to robust in-house training on the law and the dispute resolution process, all TADM mediators undergo training by the Singapore Mediation Centre. Many of TADM's mediators have prior HR experience from varied sectors or were previously employed in the former Labour Court. TADM mediators also participate in continuing education, including studying and learning from the grounds of decisions issued by the ECT. This fosters a culture of continuous learning and ensures continuous alignment with the Courts in facilitating a fair outcome for both claimants and respondents.
\tMr Speaker: Mr Perera.
\tMr Leon Perera (Aljunied): I thank the Senior Minister of State for his answer. Just a few supplementary questions. I believe the Senior Minister of State said 6% of the wrongful dismissal claims that go into TADM had lapsed because they do not meet the time bar and 12% are referred to ECT. So, that still leaves 82%. Of the remaining 82%, I am just wondering how many are actually dropped due to lack of evidence and how many are actually successful, whereby TADM upholds that there had been wrongful dismissals? Just wondering if I could have that statistic.
My second question is to ask the Senior Minister of State if he could characterise what the lack of evidence issue really is in most cases. Is it a lack of, for example, written email or audio-graphic or video-graphic evidence? Is that usually the reason why the cases cannot be moved forward?
\tDr Koh Poh Koon: Sir, TADM does not actively track cases that are assisted on a voluntary basis, as I have said. Once they exceed the time bar, then, it is up to the parties to see if they want to proceed with some mediation by TADM, on a voluntary basis. TADM is prepared to assist them if they are both willing to still have a conversation to resolve the issue amicably. The answer is, we do not track the cases that are assisted on a voluntary basis. It is probably going to be a biased tracking anyway, for those who are prepared to proceed.
In terms of the evidence where the wrongful dismissal does not have sufficient evidence, usually, as I have said, it is due to cases where the contractual terms are the reason for the termination and the claimant cannot substantiate sufficient evidence. For example, the evidence referred to would be documentary proof, it could be email correspondence. Sometimes, they are also unable to cite specific incidences in which they believe that they are wrongfully dismissed. These are the kinds of things that the TADM team look at when it assesses the ground for dismissal.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Improving Information Sharing and Integration of Processes between Healthcare Clusters to Enhance Patient Experience","subTitle":null,"sectionType":"OA","content":"2 Mr Yip Hon Weng asked the Minister for Health (a) what are the plans to improve information sharing and integration of processes between the three healthcare clusters to enhance patient experience; and (b) whether the Ministry is exploring the use of a single mobile app for the different healthcare systems so that patients and caregivers need not use multiple apps.
\tThe Senior Minister of State for Health (Dr Janil Puthucheary) (for the Minister for Health): Sir, there are ongoing efforts to improve information sharing and the delivery of digital services to enhance the patient experience.
The National Electronic Health Record (NEHR) system enables sharing of patient summary health records across care providers, including the three public healthcare clusters. We will progressively build up its coverage to include information from more healthcare providers to support care continuity.
A common pharmacy system for the three public healthcare clusters is underway, to allow consolidation of patient information, which allows providers to have a more holistic view of patients' medications and facilitate the filling of prescriptions. MOH and the healthcare clusters are also developing a national charging and billing system to streamline processes and enable a more consistent experience for patients.
Common digital services across the clusters, such as the scheduling of appointments and bill payments, are available on the national HealthHub mobile app and web portal. HealthHub also displays personal health records drawn from national systems, including for example, the COVID-19 vaccination records and COVID-19 test results.
These common services are also made available through the clusters' apps. This reduces duplication of development effort and facilitates consistent user experience, regardless of the platform a person prefers to use to connect with our healthcare system.
Meanwhile, the presence of healthcare cluster-specific apps enables those healthcare providers to customise features tailored to their specific facilities and services, and also to innovate on user-interaction features that could better engage their patients. Over time, some of these new innovations that are well-received and successful in engaging patients can be incorporated as common services that are then made available to all patients in their preferred platform, be it HealthHub or one of the cluster apps.
We will continue to improve our digital services and enhance our offerings to improve the user experience.
\tMr Speaker: Mr Yip Hon Weng.
\tMr Yip Hon Weng (Yio Chu Kang): Thank you, Mr Speaker. I thank the Senior Minister of State for his reply. Will the Ministry consider integrating all healthcare functionalities into the LifeSG app, since more than 70 Government services are on that app already? This is to make it more convenient for residents as they have only to use one app to interface with Government, as opposed to having to download many different apps to interface with the Government.
\tDr Janil Puthucheary: Sir, we continue to study all the different modes for patients and citizens to interact with Government. LifeSG is one of those that aggregates a number of services. There are other portals and means through which citizens engage with Government. And the engagement with Government is different from the engagement with your healthcare provider.
So, where it works for the patient experience – maybe for safety, for information gathering, or for user experience – we will always be considering how to optimise and streamline. The nature of many of the products' platforms that the Member refers to, is that they are the front-end for common core services. The backbone is common, the data standards are common, the information sharing processes are common. But then, engaging with a particular provider allows a user experience, as well as facilities specific services to then be deployed.
So, it is not an \"either or\". The example that the Member gave with LifeSG is salient to this because in LifeSG, many of those functions are also accessible through other means, where it is appropriate for either the provider or for the citizen. We will continue to review the entire space.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Ensuring Preschools Remain a Safe Environment and Preventing Cases of Violence by Staff against Any Child","subTitle":null,"sectionType":"OA","content":"3 Ms Hany Soh asked the Minister for Social and Family Development what are the measures put in place by the Early Childhood Development Agency (ECDA) to ensure that pre-schools remain a safe environment for our children and that any cases of violence by staff against any child can be detected and reported at the earliest opportunity.
\tThe Minister of State for Social and Family Development (Ms Sun Xueling) (for the Minister for Social and Family Development): Sir, it is essential for preschools to ensure a safe and conducive environment for children to learn, play and develop. The Early Childhood Development Agency (ECDA) takes a serious view of child mismanagement in preschools.
Under the Early Childhood Development Centres Act and Regulations, all preschools are required to adhere to safety requirements and ensure the safety and well-being of enrolled children. For instance, actions such as corporal punishment; giving harsh, humiliating, or degrading responses of any kind; and deprivation of meals are prohibited.
Preschools are required to put in place practices to enable respectful, responsive and reciprocal staff-child interactions that support children's learning. Preschools must also make sure staff use positive and developmentally appropriate methods to interact and communicate with children and infants.
Apart from communicating clear guidelines on appropriate child management to staff, centre leaders are also expected to carry out regular observations of staff-child interaction. They should also provide timely feedback to staff on concerns regarding their management of children and intervene, if necessary.
ECDA works with educational institutes and training providers to incorporate child safe practices in the training curriculum for early childhood educators. In their pre- and in-service training, educators learn about appropriate child management strategies, as well as practices which are prohibited under our regulations.
ECDA also promotes sharing of good child management practices among educators during our regular engagements with the sector and our visits to preschools.
To check preschools' compliance with regulatory requirements, ECDA conducts regular unannounced supervisory visits. ECDA also conducts investigations promptly every time we receive feedback on suspected child mismanagement. Preschools found to have inadequate child management measures in place may be issued warning letters, subjected to financial penalties, have their licence revoked or licence tenure shortened.
Notwithstanding the measures highlighted earlier, unfortunately, there can still be incidents of child mismanagement. In the event of alleged child mismanagement, preschools are required to report the incident to ECDA within 24 hours. For serious cases, such as where there appears to be clear intent to harm the child, the case will be referred to the Police for criminal investigation.
\tMr Speaker: Ms Hany Soh.
\tMs Hany Soh (Marsiling-Yew Tee): I thank the Minister of State for her reply. I have three supplementary questions in this regard. Firstly, I understand there was this case that was published in February in relation to a preschool teacher harming an infant. The teacher, particularly, withheld material information and as a result, there was a delay in terms of detection of the injuries that were suffered by the infant. It is rather unfortunate. To prevent this kind of incidents from happening again, I wonder if ECDA is able to facilitate to ensure that it is easier for parents to request for videos or CCTV footage where such incidents had purportedly happened.
The second supplementary question is, we also understand that taking care of young children, especially infants, is very challenging. It requires a lot of patience and caring from carers. I wonder if preschool teachers, in particular, those tasked to take care of infants, have to undergo a series of training to be more mentally resilient and are monitored by the principals in this aspect on a regular basis?
The final question is, flipping the coin around, I would like to enquire if there any measures in place for preschools to touch base with children who may not have been attending preschools on a regular basis recently, due to purportedly COVID-19-related situations, to ensure that they are actually not suffering from any domestic violence in the meantime.
\tMs Sun Xueling: I thank the Member for her three supplementary questions.
The first point about the case that she highlighted; the case is before the Courts. I would just like to assure the Member that while the investigations were ongoing, that the preschool had suspended the staff in December 2019 and then terminated her employment in January 2020. There was also a warning letter issued to the staff for child mismanagement. Subsequently, she is not allowed to continue working in preschools.
The Member mentioned a specific point about CCTV footage. Indeed, when there are cases of alleged child mismanagement, the preschool is required to do what they can, including looking at CCTV footage, to be able to present the material to parents, as well as to the Police to aid them in their investigations.
On the other point that the Member raised, indeed, ECDA ensures that when it comes to pre-service training as well as in-service training, that there is a need to enable our preschool staff to have the appropriate child management strategies. So, for instance, in pre-service training, individuals have to undergo ECDA-accredited early childhood programmes, which cover the following areas: firstly, classroom management and positive guidance strategies; secondly, they have to adhere to the code of ethics in engaging children in preschools; and they are also reminded about the practices that are prohibited under the ECDC regulations. And I had mentioned that earlier in my main response, which is about the use of corporal punishment, deprivation of meals and so on. These are all strictly prohibited.
At the same time, in-service training is also very important and that is why ECDA works with the National Institute of Early Childhood Development (NIEC) and private training providers, to provide Continuing Professional Development courses to support staff in the management of children's behaviours.
On the third point the Member mentioned, indeed, we are concerned about cases whereby the children may be experiencing family violence or domestic violence at home. So, one of the things that we are looking at strengthening is about body safety awareness and training. So, MSF is consciously reaching out to preschools to facilitate training in family violence, as well as in domestic violence, so that their educators are aware of what are the signs to look out for.
And where there are instances when a child is consistently missing school, the preschools are encouraged – and I hear this on the ground as well – to call the parents to find out what is happening. And where there are concerns that there might be issues of neglect or potential abuse happening at home, the preschool educators are also encouraged to work with MSF's Child Protective Services (CPS). When the CPS is involved, they will call the parent, arrange for video calls, make visits to check on the child's well-being.
I would like to assure the Member that we take the safety of our preschoolers very, very seriously. And we will do what we can to ensure that we protect our preschoolers from violence, abuse and neglect.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Number of Community Gardens at HDB Multi-Storey Car Park Rooftops and Implication for Singapore's \"30 by 30\" Food Security Goal","subTitle":null,"sectionType":"OA","content":"4 Ms Mariam Jaafar asked the Minister for National Development (a) to date, what is the number of community gardens and urban farms that have been set up on unutilised HDB multi-storey carparks (MSCP); and (b) in view of Singapore’s \"30 by 30\" goal, what is being done to facilitate and accelerate the conversion of unutilised HDB MSCP rooftops to community gardens.
\tThe Minister of State for National Development (Mr Tan Kiat How) (for the Minister for National Development): Mr Speaker, as part of greenery intensification under the HDB Green Towns Programme, suitable HDB Multi-Storey Car Parks (MSCP) rooftops are being converted to community gardens or commercial urban farms. The introduction of urban farms helps to bring food production closer to the community.
Although the production volume is not significant, it contributes to Singapore’s \"30 by 30\" food production goal. To date, the Singapore Food Agency (SFA) and HDB have tendered out 16 MSCP sites for commercial urban farming, while HDB has repurposed six MSCP rooftops into community gardens.
SFA and HDB consider multiple factors when identifying suitable MSCP sites for urban farming. These include the utilisation rate of the MSCPs, the loading which the rooftops at each site can bear, the availability of water and electricity supply, waste discharge facilities, as well as the current and future developments plans for the surrounding HDB blocks. Agencies are evaluating the outcomes of the first two tenders before deciding on future plans.
In addition, NParks will continue to work with HDB, Town Councils, Residents' Committees and Neighbourhood Committees to encourage the setting up of more community gardens, including at suitable MSCP rooftop sites or by converting parts of the common green in estates to community gardens.
\tMr Speaker: Ms Mariam Jaafar.
\tMs Mariam Jaafar (Sembawang): I thank the Minister of State for his response. I have three questions.
Mr Speaker: A reminder to Members to keep the supplementary questions to two, please.
\tMs Mariam Jaafar: Okay, two supplementary questions. Community gardening is something that has become very popular. My first question is to HDB. Often, in converting our MSCPs to community gardens or urban farms, we do run into challenges. For example, HDB requires the hiring of a Professional Engineer (PE) for various regulations and rules, which to be honest, I find that some of them are a little bit questionable. For example, can they bear the load? That is something HDB is supposed to have already assessed. And also, if they can bear cars and lorries, I think they can bear vegetable pots, and requiring a sprinkler for hydroponics and we have water all around us. Things like that.
The first supplementary question is, can HDB review some of these rules to narrow down the sets of requirements, so that the burden of hiring the PE is a little bit lower and therefore less costly for us?
My second supplementary question is, it is not just HDB, but we have other SFA regulations to deal with. For example, can people come up to the car park to buy the vegetables? In the business space, we have had the Pro-Enterprise Panel that has helped a lot to relieve some of these regulations and rules to make things much more business-friendly. If we are serious about our Green Plan, should we have a Pro-Sustainability Panel to similarly look through such issues, so that ground-up and community efforts in the heartlands and by our enterprises can just go a bit faster in loosening some of these regulations?
\tMr Tan Kiat How: Mr Speaker, let me address Ms Mariam's second question first. She spoke about whether there could be a Pro-Enterprise Panel equivalent to look at the streamlining of rules to make it easier for operators and partners, in terms of using the MSCPs for urban and commercial farming. Just to share with the Member, indeed, SFA has been working closely with and supporting the farms awarded from the first MSCP tender.
For example, there is a Regulations Workgroup, which is led by SFA and Enterprise Singapore, and it conducts multi-agency consultation sessions for the successful tenderers of the rooftop sites for urban farming. As part of the continuing efforts by the Regulations Workgroup, an industry guide was launched in 2020 last year to provide companies in the farming industry with one consolidated knowledge resource.
SFA has also worked with HDB and other relevant agencies to prepare a guide, specifically on the setting up of urban farms on HDB MSCP rooftops. The guide consolidates key information of the various regulatory approvals under the purview of different agencies and maps out the agencies' approval processes involved in the set-up. I assure the Member that we will continue reviewing this and continue working on this as we progress on the projects.
On the first question, I appreciate the Member's questions around what kind of regulatory approvals are needed and what kind of qualifications, for example, for Professional Engineers are needed. Just wanted to share with the Member that these are the first two tenders, we are going through the processes, we are learning along the way and we will certainly streamline them.
But it is actually not so straightforward to set up an urban farming infrastructure on a MSCP. For instance, HDB car parks are designed primarily for parking and not for other uses. Just one simple example, we think of power or electricity. Actually, HDB carparks only come with three-phase 30 amps electricity supply. Farm operators, especially for those in high technology farming, may require three-phase 100 amps electricity supply. It requires extensive work to upgrade the main switchboard, power cables, even perhaps building a new consumer switch room. So, this infrastructure requires certifications and we do require time and proper supervision.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":" Key Learnings from Process that Led to Conservation of Golden Mile Complex","subTitle":null,"sectionType":"OA","content":"5 Mr Leon Perera asked the Minister for National Development (a) what are the key learnings from the process leading to the landmark conservation of Golden Mile Complex in 2021; (b) whether the report on the two-year study on the conservation, or a summary thereof, can be made public; and (c) whether other modernist icons like People's Park Complex can be considered for conservation in view of heritage protection and carbon footprint reduction imperatives.
\tThe Minister for National Development (Mr Desmond Lee): Mr Speaker, Sir, Golden Mile Complex is considered one of the most architecturally, historically and socially significant modern buildings in Singapore. It is a symbol of the architectural and engineering ingenuity of Singapore's Pioneer Generation of building professionals, including Gan Eng Oon, William Lim, Tay Kheng Soon, Koh Seow Chuan, Chan Sui Him, Joseph Wang, Woh Hup and many others. It encapsulates the people's bold vision and imagination for vibrant, inclusive and high-rise living during Singapore's early nation-building days.
The decision to conserve Golden Mile Complex in October last year was made after a careful and extensive process of study and engagement with the building owners, as well as with developers, heritage experts and other stakeholders.
Many of the learning points from these studies and engagements were unique to Golden Mile Complex, considering its specific site context, as well as its pioneering status as the first modern, large scale, strata-titled development conserved in Singapore.
For example, beyond the strong conservation merit of the building, URA had also recognised the financial interest of the building owners in this decision, as they were planning for a collective sale. To address the owners' concerns, URA had engaged the collective sale committee, industry stakeholders and relevant Government agencies to explore feasible adaptive reuse schemes for the building, as well as the unprecedented development and tax incentives to make development options for the site more attractive to potential buyers under the Conservation Scheme.
Close engagement with stakeholders, including the wider public, was key. Following URA's announcement and public exhibition of the proposal, we assessed the feedback received and further worked with the owners to refine the incentive package. Many members of the public had also written in to MND and URA to express their support for the conservation proposal. When we proceeded to conserve the building last year in October, we made public the conservation merits of the building and accompanying incentive package that had resulted from the prior years' study and engagement.
We are not at liberty to reveal the more commercially sensitive details of the incentive package, or our studies. This includes a detailed technical study and building audit that we had done for Golden Mile Complex, which we had obtained the owners' consent to conduct, on the condition that we keep the findings confidential to the owners.
There is still a learning journey ahead of us for Golden Mile Complex, even after its conservation, as the building owners seek collective sale. We will work with them and the industry to explore viable adaptive reuse outcomes for the building. We will also need to strengthen the expertise of our building industry professionals and firms to rehabilitate and conserve such buildings and work with a future developer, if any, to put the building to a meaningful new use. We will closely engage the stakeholders each step of the way.
As URA continues to study other modern buildings of heritage significance, we will likewise take a systematic, calibrated and consultative approach towards conservation, so that through both conservation and redevelopment, we can steward our limited land to meet the needs and aspirations of current, as well as future generations of Singaporeans.
Mr Speaker: Order. End of Question Time.
[Pursuant to Standing Order No 22(3), written answers to questions not reached by the end of Question Time are reproduced in the Appendix, unless Members had asked for questions standing in their names to be postponed to a later Sitting day or withdrawn.]
\t
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Estimates of Expenditure for the Financial Year 1 April 2022 to 31 March 2023","subTitle":"Committee of Supply – Paper Cmd 12 of 2022","sectionType":"OS","content":"[(proc text) Order read for consideration in Committee of Supply [3rd Allotted Day]. (proc text)]
[Mr Speaker in the Chair]
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Committee of Supply – Head V (Ministry of Trade and Industry)","subTitle":"Building a strong and vibrant economy, and future-ready workforce","sectionType":"OS","content":"[(proc text) Head V (cont) – (proc text)]
[(proc text) Resumption of Debate on Question [3 March 2022], (proc text)]
[(proc text) \"That the total sum to be allocated for Head V of the Estimates be reduced by $100.\" – [Mr Liang Eng Hwa]. (proc text)]
[(proc text) Question again proposed. (proc text)]
The Minister for Trade and Industry (Mr Gan Kim Yong): Mr Chairman, we are now in the third year of the COVID-19 pandemic. Our enterprises and our workers have shown tremendous resilience, particularly our frontline workers and our healthcare workers, amidst a challenging and constantly evolving environment. Our strong economic fundamentals, such as our excellent infrastructure, our vibrant innovation ecosystem, our extensive connectivity to the region and the world, and our trusted and robust regulatory environment, also provided us the ballast to ride out the storm. Together, we achieved a strong recovery last year.
We rebounded from the worst recession since Independence, growing by 7.6% in 2021. In particular, the manufacturing, information and communications, finance and insurance and wholesale trade sectors recorded strong growth. We also remained attractive to global investors, securing commitments of $11.8 billion in Fixed Asset Investment and $5.2 billion in Total Business Expenditure in 2021. These projects are expected to create more than 17,300 jobs and close to $17 billion in value-added per annum. Labour market conditions have also improved considerably. Median real income grew by 0.9% after accounting for inflation and our resident unemployment rate has come down to 3.2%, which is close to pre-COVID-19 levels.
The Government has leaned forward to provide generous support to help enterprises through the past two years. We recognise that the recovery has been uneven across sectors and we will continue to extend assistance in a targeted manner. The Finance Minister announced that we will be supporting firms in sectors which have been most affected by COVID-19 restrictions, through a Small Business Recovery Grant (SBRG) of $1,000 per local employee, up to $10,000 per firm.
He also announced an extension of various loan schemes administered by Enterprise Singapore, to facilitate access to financing for Small and Medium Enterprises, or SMEs. We will also do more to give the tourism industry a further lift, as we prepare for international travel to return eventually. Minister of State Low Yen Ling will provide more details in her speech.
I am heartened that many of our enterprises do not want to just sit on their hands and wait for the pandemic to pass. Instead, they want to make full use of this time-out period, to uplift themselves and their workers, so that they are ready to sprint ahead when the pandemic subsides. Last year alone, Enterprise Singapore supported over 22,000 enterprises in their transformation efforts, an increase of 44% compared to the year before.
Transformation will become even more important in the years ahead. Ms Mariam Jaafar and Mr Edward Chia asked about the economic headwinds we may face in the coming years and what we are doing to enhance Singapore's competitiveness.
There are several major challenges. Our external environment is increasingly volatile and uncertain. Pandemics and extreme weather conditions are becoming more common. Technology and business cycles are shortening and changes in international economic regulations, such as the impending BEPS 2.0, will affect how we attract and anchor investments here. Geopolitical shifts, big power contestation and rising protectionism are also underway. The ongoing crisis in Ukraine is yet another reminder that peace and security, the foundation for economic growth, cannot be taken for granted.
As a small and open economy, we cannot insulate ourselves from these external factors. We will need to muster the agility and fortitude to adapt and stay ahead. As Ms Mariam Jaafar said in her speech, we must work hard to secure our position as a stable and trusted global business hub, which includes steadily reopening our borders, committing to a strategy of COVID-19 resilience and welcoming investments, ideas and people from all over the world.
We also face challenges at home. I know many are concerned about how doing business is getting more expensive and costly, as Mr Liang Eng Hwa pointed out. The Minister for Finance in his round up speech explained what the Government is doing to support businesses and assured the House that we will monitor the situation closely and step up our support if necessary.
While there are headwinds, there are also many exciting developments in key sectors across our economy. To position ourselves for growth and seize these opportunities, we must continue to invest in our fundamentals and build up strong capabilities in our enterprises and our people.
We have already started on this important work. The Future Economy Council is refreshing all 23 Industry Transformation Maps, or ITMs, to refine our transformation strategy up to 2025. Mr Sharael Taha, Ms Jessica Tan and Mr Pritam Singh asked about the progress of the ITMs. We are currently working closely with industry stakeholders, unions and academia to update our ITMs, to address emerging trends and opportunities. These include digitalisation, resilience and as Mr Sharael Taha suggested, sustainability. Jobs and skills, including the upskilling of workers, is also a key thrust of ITM 2025.
Let me use the Precision Engineering ITM as an example. The Precision Engineering ITM aimed to add 3,000 PMET jobs from 2015 to 2020. The sector is doing well and as of 2019, the number of PMET jobs in the sector has already increased by about 4,000. The ongoing ITM Refresh seeks to enable the sector to capitalise on digital manufacturing and create good jobs in growth areas such as additive manufacturing and robotics. The other ITM 2025 reviews are also in progress and will take into account the outcomes achieved from the earlier round of ITMs. More details will be shared when ready.
Ms Jessica Tan asked about growth and emerging opportunities and business sectors. For the longer term, we need a collective vision for the economy – the Singapore Economy 2030 vision – which will outline our ambition, provide direction and coordinate actions across key pillars of our economy. Together, these efforts will put our industries, enterprises and workers on a firmer footing for long-term, sustainable growth.
Let me share our vision for the four key pillars of the Singapore Economy 2030, namely services, manufacturing, trade and enterprises.
Let me start with the services sector, which Mr Don Wee talked about. Singapore has a large and diversified services sector. It represents more than 70% of our economy, comprising industries such as finance and insurance, information and communications, professional services and logistics.
The bulk of our services sector is export-oriented and has shown remarkable resilience through the pandemic. Looking ahead, there are two major waves of opportunities – sustainability and digitalisation. I will speak more on sustainability and our Green Economy Strategy, as part of the Joint Segment on the Singapore Green Plan, next week.
Digitalisation is a secular trend which will disrupt all our industries. Technologies such as blockchain, artificial intelligence and machine learning, as well as augmented and virtual reality, have the potential to fundamentally transform how we interact with the world around us.
As more companies accelerate investments in digitalisation, there will also be increased demand for services such as consultancy and marketing. For example, as businesses move online, companies will need the expertise of marketing services firms to create more personalised advertising campaigns with the use of data analytics and marketing technology, or \"martech\" tools, and to engage customers through immersive user experiences through gamification, and augmented and virtual reality. Firms will also need to build new capabilities through collaborating with partners from other industries to co-create multidisciplinary solutions, including in areas such as logistics.
I am glad to see many homegrown companies leveraging global opportunities afforded by the digital economy. Many of you would have heard of Nium, a Singapore-based fintech unicorn that builds white label cross-border payment solutions. Today, its software is getting money to people and businesses in over 190 markets.
Another example is AP Media, a Singapore marketing firm that specialises in interactive and video content production. At the height of the pandemic, AP Media developed a livestreaming and virtual conference tool which was used for Singapore's first virtual fashion show called \"The Front Row\". The online portal houses a 3D arena, which visitors can virtually navigate runway shows, panels, workshops and podcasts. AP Media's creative technology has since been deployed in several international projects, notably Louis Vuitton's fashion show and Razer's Global Virtual Conference.
Mr Edward Chia spoke about consumer-facing businesses. Digitalisation can also be a powerful transformation tool to help consumer-facing businesses. They help them improve productivity and to engage new customers. Sephora is a good example. Singapore houses Sephora's Digital Centre of Excellence in areas such as marketing, creative and design and data analysis. One of the solutions it created in-house here in Singapore is the Virtual Artist Kiosk, which relies on augmented reality to reflect the various lipstick colours on their consumers through a digital screen. Real-time analytics, such as user engagement and the popularity of products, are then channelled back to Sephora's platform.
Second Minister Tan See Leng will speak more about what we are doing to help firms seize opportunities in digitalisation.
Even as we invest in our services ecosystem, we will continue to build up a strong manufacturing sector. Thanks to our continued investments over the years, we have a thriving and competitive manufacturing ecosystem which exports products all over the world. For example, we account for 11% of the global semiconductor market and 20% of global semiconductor equipment is manufactured in Singapore. We are also a major player in the biomedical industry and pharmaceutical companies have been producing lifesaving drugs from Singapore to supply to global markets.
Mr Baey Yam Keng asked for an update on our Manufacturing 2030 vision and the opportunities in this sector. We launched Manufacturing 2030 last year, with the aim of increasing manufacturing value-add by 50% in 10 years. We have already made good progress. Last year, the sector grew very significantly by 13.2% and received $8.5 billion in total Fixed Asset Investment, creating over 6,000 jobs when these projects are completed.
Let me share with you a few examples where we are leveraging technology for manufacturing, in particular advanced manufacturing, to allow us to produce goods higher up in the manufacturing value chain.
GE Aviation Engine Services Singapore, which I visited last year, recently became the first maintenance repair and overhaul (MRO) facility in the world to use advanced additive manufacturing technology to repair airfoil components in commercial jet engines. This will further entrench its position as GE Aviation's largest site globally for engine component MRO and strengthen Singapore's aerospace industry.
Advanced manufacturing in food-related value chains also offers exciting growth opportunities, especially in areas with strong synergy with sustainability. Plant-based food, for example, is projected to grow by 100 times by 2050 across the world.
Oatside is one such local plant-based startup and Singapore's first homegrown oat milk brand. It focuses on sustainable sourcing and production and is tapping on Enterprise Singapore's Market Readiness Assistance grant to gear up for expansion in Southeast Asia, Korea, Japan, China and the Middle East.
I thought Members would be excited to try this local product, so I have arranged for Oatside milk to be served in the dining areas here at Parliament. You can try the milk on its own or have it with some freshly made coffee from Hook Coffee, a local coffee company that has expanded significantly through leveraging e-commerce.
To make a further push towards our Manufacturing 2030 (M2030) ambitions, we will redouble efforts to grow a vibrant core of Singapore Global Manufacturers that are deeply innovative and can deliver distinctive offerings to their customers. Our economic agencies will provide bespoke support for manufacturers with strong potential, to deepen their capabilities and expand their global reach.
One example of a globally oriented Singapore manufacturer is Akribis Systems, a global leader in motion control solutions. Akribis owns core technologies in direct drive motor components, robotic actuators and linear stages which are critical to build high precision equipment for the semiconductor, electronics and medtech industries. Akribis is headquartered in Singapore and has a factory and innovation centre here. It has significant global reach, with its overseas businesses contributing to over 75% of its total revenue.
We must continue to strengthen Singaporeans' interest in manufacturing and develop a strong local pipeline of talent. We also need to ensure that Singaporeans can access the good job opportunities in the sector. To do so, companies need to offer attractive career progression pathways in line with technological changes and ensure these prospects are accessible and exciting.
We will therefore launch the M2030 Careers Initiative to work with the industry to achieve this, targeting especially our graduates from the Polytechnics and the Institute of Technical Education (ITE), who have been trained with industry-relevant skills.
To level up the industry's talent development capabilities, the Singapore Precision Engineering and Technology Association (SPETA) will work with industry partners such as the Singapore Semiconductor Industry Association and our Institutes of Higher Learning to develop a Manufacturing Employer Handbook. The Handbook will provide a range of human capital best practices and resources, to support companies in developing structured career development and progression pathways for their employees. SPETA will identify and work with at least 20 companies to pilot the adoption of these practices and pathways.
We are also working with companies to offer additional high-quality internship opportunities for students in the ITE. We aim to secure at least 200 places from 60 companies by the end of 2022. These internships can go a long way in shaping students' perception of the sector and kindle their interest.
One example is KABAM Robotics, a robotics solution provider headquartered in Singapore in the service robotics industry. KABAM currently has three interns in roles such as software and hardware development and is looking to bring on another five soon. One of its past interns, Ms Rachel Lim from the Temasek Polytechnic School of Engineering, was given the opportunity to work in the Products team to support the design, development and assembly of robots, as well as conduct performance testing and analysis. Rachel enjoyed her stint so much that she has decided to join KABAM as a full-time Product Engineer starting next week. I look forward to more of such conversion stories in the near future.
We will also work with selected companies to pilot the Accelerated Pathways for Technicians and Assistant Engineers Grant for Manufacturing, or APT(M) Grant. This will support companies to hire and train ITE graduates for critical technician and assistant engineer roles through on-the-job training, with career progression pathways and competitive salaries.
Let me now talk about trade. Given our small domestic market, global connectivity is essential to help our enterprises grow beyond our borders. As one of the world's leading business and transport hubs located in one of the most economically dynamic part of the world, we are in a very strong position to take advantage of growth opportunities in the region.
Ms Janet Ang asked how we will secure Singapore's status as a key node in the global trading network. Mr Edward Chia also asked how we are helping our companies seize regional opportunities. We are embarking on a few key moves.
First, we are proactively strengthening regional economic integration through ASEAN and other platforms. This is particularly important in a bifurcated world with increased protectionism and global competition. Greater regional cooperation and integration will not only enhance access to markets and create opportunities for our businesses, but also enlarge the economic pie for our entire region.
We are playing a leading role in key regional Free Trade Agreements (FTAs), such as the Regional Comprehensive Economic Partnership, or RCEP, which is the world's largest FTA, and as the Chair of the Commission of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, or CPTPP, this year.
We will also continue to facilitate trade by shaping the rules of the game and setting high standards in emerging areas. We are pioneering new agreements, such as Digital Agreements, which facilitate cross-border data flows and digital trade, as well as Green Economy Agreements. We will continue to work with like-minded partners such as UK, South Korea, Australia, New Zealand and others, to secure benefits for our companies and our people.
Ms Mariam Jaafar asked about FTAs. It is important to help our enterprises, especially the SMEs, utilise and benefit from FTAs. Singapore's network of 27 FTAs has brought many benefits to our companies, including tariff savings, stronger intellectual property and investment protection, a more conducive business environment and increased regulatory transparency. We will continue to work with industry partners, including the Singapore Business Federation, to proactively engage SMEs and provide them with the necessary support to take advantage of our FTAs.
Second, we will embark on a Trade 2030 strategy to grow our trading volume, widen the types of trading activities in Singapore and expand trade with other parts of the world. From 2020 to 2030, we aim to grow our export value from $805 billion to at least $1 trillion and double our offshore trade value from US$1 trillion to US$2 trillion. We also want to capture more re-exports and transshipment flows, to embed Singapore more deeply into the global supply chains.
To achieve this ambition, we need to redouble our efforts to build a strong ecosystem in trading companies and activities.
We will boost our efforts to attract leading Global Traders and increase value capture for Singapore by anchoring more of their upstream, downstream and innovation activities here. These Global Traders will also serve as platforms to help other Singapore companies to break into overseas markets.
We will also accelerate efforts to grow a strong core of Singapore Global Traders, which are locally grown traders that command global scale and are highly innovative. To do so, Enterprise Singapore will tap on its full range of programme offerings, such as Scale-up SG and the Enterprise Leadership for Transformation Programme, and provide bespoke support tailored to each firm's unique circumstances and ambitions. These will cover areas such as talent development, innovation, internationalisation and financing.
For instance, Fish International Sourcing House (FISH), is a homegrown seafood trader and graduate of the Enterprise Leadership for Transformation Programme. It has established presence in over 90 markets. To grow its trading business further, the company plans to invest more than $20 million to set up a 240,000-square feet seafood processing and innovation centre in Singapore, which will enable it to seize new growth opportunities. In addition, FISH intends to almost triple its current headcount of 25 by hiring another 45 employees over the next few years. FISH is also poised to have an impact on our larger trading ecosystem by partnering Singapore enterprises and helping them break into new markets, by allowing them to leverage its existing strong overseas distribution network to grow.
Growing our trading volume will create good jobs for our people. The trading sector is one of Singapore's largest employers with over 300,000 employees in 2020, of which the majority are locals and close to 70% are PMET jobs. To take on the many attractive opportunities that will emerge from the continued growth of this sector, we must build a workforce with skills and knowledge needed.
We have embarked on a suite of workforce upgrading initiatives for the trade sector, such as the creation of a Jobs Transformation Map and a Career Conversion Programme for Wholesale Trade Professionals. In addition, we are working with industry and the Institutes of Higher Learning (IHLs) to develop more talent in the trading of commodities such as Liquified Natural Gas (LNG) and carbon credits.
Let me now talk about enterprises. Our Singapore Economy 2030 vision needs to be supported by a vibrant ecosystem of Singapore enterprises that are future-ready, globally competitive and possess deep innovative capabilities. These enterprises will then create new jobs and meaningful careers for Singaporeans.
We will therefore embark on an Enterprise 2030 strategy, to scale up efforts to identify and support promising local businesses, including through the Singapore Global Enterprises initiative to support their growth into global champions. Second Minister Tan See Leng will elaborate on the concrete steps that we will be taking.
Our Singapore Economy 2030 vision would be neither achievable nor meaningful, if it is not anchored on an unwavering belief in uplifting our people. Enterprises also need a strong workforce with the right skillsets and capabilities to succeed.
Mr Liang Eng Hwa, Mr Shawn Huang and Mr Saktiandi Supaat asked how the Government is building a future-ready workforce. This must be a whole-of-economy effort with close coordination and collaboration between workers, companies and the Government. The Minister for Education Mr Chan Chun Sing and Minister for Manpower Dr Tan See Leng will be elaborating on initiatives to develop our local workforce, and help displaced workers upskill and reskill, so that they can continue to fulfil their potential by taking on new job roles or moving to emerging sectors in a nimble fashion.
I agree with Ms Janet Ang that company-led training (CLT) is critical. Companies need to step up, to consistently and persistently invest in human capital to recruit, retain and nurture talent. Workers too need to play their part and be open to learning new skills and adapting to new roles.
As the Minister for Finance announced in the Budget speech, we have relaxed the eligibility criteria for the SkillsFuture Enterprise Credit (SFEC) for one year, to enable more small and microenterprises to tap on the credits and upskill their workforce.
There is simply no substitute for well-structured on-the-job training. Besides ensuring that workers are trained in relevant skills, such investments by employers can also help create a highly engaged and productive workforce.
I agree with Ms Foo Mee Har that initiatives like the Company Training Committees, or CTCs, play an important role in this regard. NTUC Deputy Secretary-General Chee Hong Tat had earlier spoken at length about how CTCs have supported companies in their transformation efforts during the Budget debate. I would like to assure Ms Foo that even smaller companies such as SMEs can also benefit from CTCs.
One example is Vicinity Studio, a local content production company founded in 2017. The company worked with its union – the Creative Media and Publishing Union, or CMPU, and the NTUC Training and Placement ecosystem to conduct an Operations Technology Roadmap, and developed a three-year workplan to transform its business and workforce. This helped Vicinity take steps to improve its HR capabilities and staff competencies. The studio has since grown its business and hired 13 additional new staff, some of whom are interns and SGUnited Trainees.
I urge enterprises to tap on these available resources and work with us to strengthen our economy and workers together.
Sir, let me conclude. Our enterprises and workers have come far in the fight against the pandemic. The pandemic is not yet over, and the future will continue to surprise us and challenge us in more ways than one. The conflict in Ukraine will add bumps on our road to recovery and growth. But let us look ahead into the future with confidence and resolve. We will need to work hard to build on our strong fundamentals, strengthen our agility to respond to uncertainties and amass the fortitude to make adjustments that can be painful in the short run, but will pay handsome dividends in the long run.
The chapters of our Economy 2030 vision are filled with exciting stories waiting to be written. As we continue our work to grow and develop our economy, we can look forward to a wide spectrum of new career and business opportunities for our workers and enterprises to explore. Some of these may not even exist today.
As long as we continue to stand together as one, as we have done through the pandemic, and look upon the future with a spirit of enterprise and discovery, I have every confidence that we will make progress towards building a future economy that will meet the aspirations of our workers and companies, and inspire generations of Singaporeans to come. [Applause.]
Mr Speaker: Second Minister Tan See Leng.
The Second Minister for Trade and Industry (Dr Tan See Leng): Our local enterprises are a critical part of Singapore's growth story. They account for almost 70% of jobs in Singapore and have the potential to help us venture into new growth areas, create solutions for the world and reimagine Singapore's economy.
Riding on global economic recovery last year, we registered a strong economic performance and we had projected GDP growth of 3% to 5% for 2022.
Minister Gan has earlier shared in this House that it is still too early to estimate the actual impact on Singapore's economic growth this year, given the conflict in Ukraine. The situation is fast evolving and there will be greater uncertainties.
In an increasingly volatile environment, the only way to navigate these challenges is to strengthen our resilience and accelerate our transformation.
Despite the pandemic, many of our local enterprises have not sat still. They have pressed on with transformation and they are now in a stronger position to rebound and capture growth. They have sought to turn the crisis into an opportunity of a generation.
This is the spirit that will power the Enterprise 2030 strategy.
Ms Jessica Tan and Ms Janet Ang asked how we are supporting our local enterprises to grow and compete globally. The Enterprise 2030 strategy is our response to ensure that we build and sustain a vibrant ecosystem of Singapore enterprises that are future-ready and possess deep capabilities to compete globally.
We will achieve this in two ways. First, we must support the growth of high potential companies to become global champions. Second, we will strengthen the core capabilities of the broader base of local enterprises in industry transformation. Let me elaborate each of these strategies.
Over the last few years, we have witnessed the emergence of a new generation of local champions.
We now have 22 homegrown startups that have reached unicorn status. Many of our homegrown companies such as Secretlab, Hegen and Nanofilm, have made a name for themselves internationally. These are the bright spots in our enterprise landscape.
We will intensify our efforts to identify, nurture and to grow many more promising local enterprises. To do so, we will launch an initiative to cultivate a new generation of \"Singapore Global Enterprises\" which are locally grown and globally competitive.
Both ESG and EDB will provide more bespoke and enterprise-centric assistance to enterprises with strong growth potential and global ambitions which are tailored to their specific needs and individual growth ambitions.
We will also harness resources across whole-of-Government and our partners to support each of these high potential enterprises in areas such as innovation, internationalisation and fostering partnerships with other firms.
For a start, we will enhance our support for these high potential companies in four ways: firstly, developing global-ready executives; secondly, creating new corporate ventures; thirdly, facilitating Mergers and Acquisitions; and fourthly, creating enhanced access to financing.
Mr Shawn Huang and Mr Saktiandi Supaat asked how we will continue to ensure that firms have access to the talent they need. As Mr Liang Eng Hwa have pointed out, the answer lies in \"growing our own timber\", providing the space and opportunity to nurture and support Singaporeans to be part of the growth stories of many more promising enterprises.
We will launch the Singapore Global Executive Programme (SGEP) to boost the human capital capabilities of our high potential local enterprises and support them in talent attraction and retention, as well as leadership succession programmes to develop a pipeline of future leaders, not just locally, but globally.
We have also been exploring new ways to support companies in creating new business ventures. Last year, EDB launched the Corporate Venture Launchpad, which is a pilot programme to support companies to incubate and launch new businesses within a six-month sprint. As part of this programme, Keppel Land is venturing into digital well-being, companion care and connectivity solutions for eldercare, in line with its ambition to become a leading player in the Senior Living sector. Given the positive feedback from the pilot programme, we will expand the Corporate Venture Launchpad to support a wider range of companies.
We know that it takes courage, it takes gumption to scale a business. To help our enterprises on this journey, EDB will be launching a Mergers and Acquisitions (M&A) grant to co-fund the qualifying spend on Singapore-based professional and financial advisory services incurred on the M&A deal.
We have also launched three funds recently to provide capital to accelerate the growth of our enterprises, broaden the range of fundraising options and help them work towards an eventual public listing or liquidity event in Singapore. These funds are the Local Enterprises Fund @ 65 and the Anchor Fund @ 65 which are set up in partnership with Temasek, as well as the Growth IPO Fund managed by EDBI.
Ms Jessica Tan asked about the progress of the Local Enterprises Fund. 65 Equity Partners, a wholly owned investment platform of Temasek, has been managing this fund and engaging promising local enterprises. We have seen good interest in the fund since its launch. But these are still early days and many of these plans will take time and a certain runway to finalise.
Let me now move on to my second pillar of Enterprise 2030 – to strengthen the core capabilities of our local enterprises.
We will step up efforts to help the broad base of SMEs in four key areas: one, capabilities development; two, internationalisation; three, digitalisation; and four, innovation.
First, in capabilities development. We have rolled out a comprehensive suite of programmes to support our enterprises and workers. I will elaborate on our key shifts.
Ms Jessica Tan, Mr Edward Chia and Ms Janet Ang asked how the Government will foster stronger partnerships between MNCs or Large Local Enterprises (LLEs) and SMEs to seize new opportunities.
We will work with SkillsFuture Singapore to onboard MNCs and large local enterprises who are \"Queen Bees\" to curate industry-relevant training courses in emerging growth areas, such as robotics and Industry 4.0.
Another initiative is the PACT scheme. PACT stands for Partnerships for Capability Transformation. Under this scheme, we have supported collaborations between large companies and smaller SMEs through co-innovation, internationalisation projects as well as costs of supplier qualification processes.
Since its inception in 2010, the Government has set aside more than S$150 million to support these projects which have benefited over 2,000 Singapore-based companies.
I am happy to announce that we will be extending the enhanced support levels for PACT to 31 March 2023. Companies can qualify up to 70% for manpower and consultancy costs and up to 50% for hardware and equipment costs. I strongly urge interested enterprises to get in touch with our agencies for more details.
Second, on the internationalisation thrust. I thank Ms Janet Ang for her suggestion that LLEs can take a step further to lend their networks to create business opportunities for local enterprises. We have been working with many LLEs to do so and we will adopt a more concerted \"Team Singapore\" approach in our internationalisation strategy and bring onboard SMEs to collectively access overseas markets.
I am encouraged that 1,600 local enterprises embarked on internationalisation projects last year. This is in spite of current travel restrictions. Many of these enterprises have gained a foothold in key markets through our support networks such as the GlobalConnect@SBF, as well as leveraged on ESG's international matchmaking platforms, such as the Open Innovation Network to connect and co-innovate with other industry players. We will intensify efforts through these international partnerships and networks to help SMEs deepen their presence in key markets and pursue opportunities in new ones.
Third, digitalisation. Ms Jessica Tan, Mr Liang Eng Hwa and Mr Desmond Choo asked how we are helping firms to digitalise, strengthen capabilities and capture new opportunities in the digital economy.
One way we are doing so is through the SMEs Go Digital initiative, which supports SMEs in the adoption of digital solutions for basic business functions, online transactions and other more advanced solutions. More than 80,000 firms have benefited from the initiative since it was launched in 2017. In addition, firms can also tap on funding support from ESG's Productivity Solutions Grant (PSG) and Enterprise Development Grant (EDG).
As announced in the Budget Speech, we will expand the range of solutions under the PSG, to include new technologies and more sector-specific solutions to deepen capabilities in areas, such as cybersecurity and data analytics, which will increasingly become essential skillsets.
I would like to thank Mr Desmond Choo, Ms Foo Mee Har and Mr Derrick Goh for their feedback to strengthen the digitalisation capabilities of our SMEs.
On Mr Desmond Choo's suggestion to help SMEs tap on a pool of tech talent, this is exactly why IMDA has launched the Chief Technology Officer-as-a-Service (CTO-as-a-Service) scheme. As the name suggests, SMEs can engage a pool of digital consultants for in-depth advisory and project management services. MCI will share more on the digitalisation initiatives later on, today, at the Committee of Supply (COS) debate. We will also study Ms Foo Mee Har's suggestion to replicate the CTO-as-a-service scheme to other functions.
On Mr Derrick Goh's point to provide more holistic support for companies, I want to highlight that the schemes I mentioned earlier are part of a comprehensive suite of tools to support our enterprises in each stage of their growth. Indeed, more can be done to raise awareness and help our SMEs understand how the various tools can support their needs, as mentioned by both Ms Rahayu Mahzam and Mr Shawn Huang. I encourage enterprises to reach out to Enterprise Singapore and our network of SME Centres for free one-on-one business advisory.
Last, but not least, innovation. Mr Desmond Choo and Mr Liang Eng Hwa asked how the Government is supporting enterprises in their innovation and R&D journey. Under our RIE 2025 plan, we will sustain investments in research, innovation and enterprise at 1% of Singapore's GDP, or $25 billion, from 2021 to 2025.
Over the years, we have taken a more enterprise-centric approach to help SMEs build their innovation capabilities and translate their innovations into new products and services. Since 2003, more than 950 A*STAR research scientists and engineers have been seconded to support over 850 local SMEs in product development as part of A*STAR's Technology for Enterprise Capability Upgrading programme, or T-UP. ESG has also enhanced its Innovation Advisors Programme to partner industry veterans with SMEs to commercialise their research. These are significant efforts to help our SMEs scale up their capabilities in-house.
We have also reaped the fruits of our labour. In the fight against COVID-19, the A*STAR's Experimental Drug Development Centre (EDDC) collaborated with the Diagnostics Development Hub and Tan Tock Seng Hospital to develop the Fortitude COVID-19 test kit, the first lab diagnostic kit to receive Provisional Authorisation from Singapore's Health Sciences Authority (HSA) for clinical use. The Fortitude kits have been deployed in Singapore and more than 40 countries globally.
Apart from COVID-19-related innovations, we are also encouraged to see more local firms innovating and moving up the value chain. I visited another local startup, ION Mobility, last year to unveil its flagship product, the ION Mobius. It is a smart electric motorbike which was conceptualised, designed and assembled in Singapore. In fact, its proprietary battery pack allows riders to cover a distance of up to 200 kilometres on a single charge. And its interface settings can also be changed with the rider's smartphone.
We have invested substantial resources and efforts in building innovation capabilities, and I agree with Mr Desmond Choo that, beyond Government support, importantly, our enterprises must also embrace the spirit of innovation as a core capability. I am excited to see how our enterprises will push the boundaries to create solutions for the world.
After having set out our longer term plans, I would like to address some of our near-term challenges. The Minister for Finance and Minister for Trade and Industry have touched on many of these issues. I would like to explain how we are addressing rising electricity prices and manpower constraints.
Mr Liang Eng Hwa asked about the impact of the Russia-Ukraine conflict on our energy supply. Mr Derrick Goh also asked how we are supporting consumers due to rising energy prices and whether these measures could be extended. While Singapore's sources of fuel are diversified and the conflict in Ukraine poses limited direct risks to our supplies, we will be affected by the high or volatile global gas prices arising from the conflict.
However, I would like to assure all consumers that we will spare no effort to ensure that Singapore's energy supply remains secure and reliable. As the Minister for Trade and Industry and I have explained in this House, MTI and EMA have put in place various measures to safeguard energy security and to help consumers cope with rising electricity costs. These include ensuring that generation companies have sufficient fuel reserves, establishing a Standby Fuel Facility which generation companies can tap on to produce electricity and working with the generation companies and electricity retailers to offer fixed price contracts under the Temporary Retail Electricity Contracting Support (TRECS) scheme. EMA is also working with them to offer longer term fixed price contracts to consumers who wish to have more price stability. We have since extended TRECS from March to May 2022 and we will extend it further if necessary.
I understand the cost pressures faced by households and businesses. We will continue to monitor market developments and will not hesitate to introduce further measures, if necessary, to support vulnerable consumers. Eligible households will continue to receive U-Save rebates to support them with their utility expenses and businesses which need financing support can tap on the loans offered by ESG.
I agree with Mr Liang Eng Hwa that we can enhance energy efficiency and reduce energy consumption. In fact, we have rolled out a series of measures to encourage consumers to do so by redesigning electricity bills to benchmark individual consumption across other similar users and mandating energy-intensive companies to implement energy conservation and energy management practices. However, we cannot embark and succeed on this journey alone. We urge all consumers to use energy prudently and adopt energy conservation as a way of life.
I would like to assure this House that even as we address the near-term challenges in the energy sector, we remain committed to planning for the future. We are pressing ahead with our efforts to advance the energy transition and decarbonise the power sector. Minister Gan Kim Yong will elaborate more on this in the Joint Segment on the Singapore Green Plan.
Let me now turn to manpower. Domestically, the labour market in Singapore has tightened over the past year due to economic recovery and international border restrictions. Many businesses continued to find it challenging to access the manpower they require, especially in areas where there are skill shortages. As Mr Shawn Huang and Mr Saktiandi Supaat pointed out, access to highly-skilled manpower is a critical challenge we must overcome together, given our ageing population, economic uncertainties and the competition for global talent.
Therefore, we have made various adjustments to our foreign worker policies to be more targeted and selective in bringing in high-quality and diverse foreign workforce to complement the local workforce. Mr Cheng Hsing Yao asked whether our foreign workforce policies are dynamic and flexible enough to meet our economic needs. Indeed, this is critical.
For example, we had recently launched specific schemes, such as the Tech.Pass and Tech@SG to provide firms with access to specialised talent. These schemes have been well-received by companies, with around 180 Tech.Pass holders and more than 50 firms on Tech@SG. We will continue to actively monitor and review these schemes to ensure that they are effective. I will also share more on the refinements to address skill shortages later on this afternoon at MOM's COS debate. Mr Chairman, in Mandarin, please.
(In Mandarin): [Please refer to Vernacular Speech.] We are committed to support our local enterprises to leverage growth opportunities in a post-COVID-19 world. Beyond targeted measures to address immediate cost pressures and greater uncertainties brought by the conflict in Ukraine, we need to accelerate industry transformation efforts in the light of the larger transformation and restructuring of our global economy.
As part of our Enterprise 2030 strategy, we will encourage and support the growth of high potential companies to become global champions and strengthen the core capabilities of the broad base of SMEs. In particular, we will intensify efforts in capability development and supporting internationalisation, digitalisation and innovation in our local SMEs. We will support our SMEs on this journey, so that we can seize opportunities, achieve breakthroughs and build a more resilient and vibrant economy together.
(In English): We have set out our strategy under Enterprise 2030 which will allow us to set our sights further, plan for the longer term and put in place the building blocks right now. Importantly, we will need to continuously innovate, think outside the box and transcend our own physical boundaries and constraints to seize the opportunities of the future economy.
I strongly urge and encourage our enterprises to equip themselves for the future, press on with transformation and set their sights to become the next Singapore Global Enterprise. The Government will continue to support them in this journey. [Applause.]
The Minister of State for Trade and Industry (Ms Low Yen Ling): Chairman, we have gone through two long and hard years since the start of the COVID-19 pandemic. Despite the challenging and uncertain business environment which upended lives and operations, Singapore enterprises have shown incredible resilience and mettle to transform and thrive in the new normal.
As encouraged by Minister Gan Kim Yong and Second Minister Tan See Leng, we have the chance to seize the new opportunities that are before us and to forge a new path forward for our economy. Let me elaborate on our plans to support our businesses as we chart the path ahead together. We will leave no stones unturned to enable our people and businesses to emerge even stronger than before.
First and foremost, we know that access to financing is the lifeblood of business survival and growth. To ensure that our enterprises have ready access to financing at various stages of their development, the Government has put in place a range of support measures specifically for this purpose. In the last two years, close to 28,000 companies have secured financing from the Enterprise Financing Schemes (EFS). And we will do even more.
As the Minister for Finance Mr Lawrence Wong recently announced in Budget 2022 just two weeks ago, we will extend the Temporary Bridging Loan Programme (TBLP), as well as the enhanced EFS Project Loan (EFS-PL) and EFS Trade Loan (EFS-TL). We will also be making further enhancements to schemes, such as the EFS Merger and Acquisition (M&A) scheme. These improvements come on the back of industry feedback and engagement.
One company that has benefited from the EFS M&A scheme is GKE Corporation Ltd. This is a third-party logistics provider that provides warehousing, freight services, transportation, marine logistics and port management services. They took up an EFS M&A loan of $6 million to fund the acquisition of a chemical tolling company. This strategic acquisition will help GKE acquire deeper technical expertise in specialty chemical manufacturing and capture a broader segment of customers as a market leader for chemical logistics.
To support more companies like GKE in their growth plans, we will be expanding the EFS M&A Programme to include domestic M&A activities from 1 April this year to 31 March 2026.
In addition, we will provide fresh avenues of financing for the green economy. The Enterprise Sustainability Programme (ESP) that was just launched last October has an Enterprise Financing Scheme component called EFS-Green, designed to help our local enterprises capture opportunities and develop capabilities in sustainability. Sectors involving Clean Energy, Circular Economy, Green Infrastructure and Clean Transportation are well-placed to tap into this source of funding.
These enhancements to keep the financing tap on will reassure Ms Rahayu Mahzam that companies can access the vital support they need to seize green shoots of opportunities and tide through the pandemic. We will continue to monitor the schemes' efficacy and fine-tune them to give our local companies our fullest support.
Apart from financing, I would like to assure Mr Shawn Huang and Ms Rahayu Mahzam that our enterprises have a one-stop portal called GoBusiness to rely on for all the latest information and e-services for doing business in Singapore. In addition, by answering a few simple questions on the portal, they can receive tailored recommendations from its e-Adviser feature – from the kind of Government grants suited for their transformation journey, to how to start and grow their business.
As of January 2022, close to 43,000 businesses have used the GoBusiness portal to apply for Government assistance, and over 56,000 have benefited from the e-Advisers' personalised recommendations. We encourage our companies, entrepreneurs and business owners to make full use of this business-friendly online resource.
On this note, I want to assure Mr Derrick Goh that while the Government aims to achieve greater efficiencies through technology and streamlining processes, we are also mindful of the need to ensure an inclusive playing field of opportunities. We hear his concerns that the use of the demand aggregation procurement by VITAL could limit opportunities for SMEs to be appointed on the Government's panel of suppliers and providers.
In the demand aggregation tender involving the events management industry late last year, a decision was made after feedback from the industry, to structure the contract such that, in addition to lower financial barriers, smaller event management companies could have a chance to be appointed onto this panel. This also led to a doubling in the number of bids attracted. So, I want to assure Mr Derrick Goh that, wherever it is appropriate, we aim to structure the procurement in such a way that a range of suppliers of different profiles and sizes can take part, so as to offer business opportunities for as many enterprises as possible.
Chairman, COVID-19 has hit some sectors very hard and we will continue to avail support to those that need it. As Mr Edward Chia pointed out, consumer-facing businesses are bearing the prolonged impact of the pandemic. The Small Business Recovery Grant (SBRG) will provide up to $10,000 per firm in the most affected sectors to help these SMEs regain their footing and build back their strength.
In the last two years, the food services and retail sectors have battled waves of disruptions time and time again, from restrictions to closures, to changing consumer preferences and also pressures to digitalise, as well as manpower shortages. With the accelerated pace of change and the fast-emerging consumer trends, the food and retail sectors have to continue to transform themselves.
Today, I am happy to announce that we will be introducing the $70 million Food Services and Retail Business Revitalisation Package to help our food services and retail companies overcome these challenges. We want to help them recover, we want to help them get stronger and we want to help them forge ahead with new strength.
The new Food Services and Retail Business Revitalisation Package will: one, extend crucial support for our businesses in these sectors to improve their productivity and equip them with the capabilities to pivot and transform, so as to stay competitive and relevant; and two, help our food services and retail companies to beef up their manpower in the hiring and training of locals.
Hence, we will extend the 80% support level of the Enterprise Development Grant (EDG) and relevant solutions under the Productivity Solutions Grant (PSG) for the food services and retail sectors till 31 March 2023. This extension under the Food Services and Retail Business Revitalisation Package will give our F&B and also our retail businesses more scope and more opportunities to adapt and transform and better position themselves for the future.
Let me share one example. Since 2020, Dian Xiao Er – I think this is a name that some of us are familiar with – has tapped on the EDG for three projects to enhance their central kitchen. One of the projects involves the development of a first-of-its-kind automated duck conveyor system, which then helps to cut the preparation time for 1,500 ducks by about one-third. I note that it is 12.00 noon and for me to talk about 1,500 ducks, I think, is very tempting to the Members in the Chamber. But back to this example.
With less manual work that is required in the duck preparation process, Dian Xiao Er retrained their staff to take on other roles. What other roles? For example, by taking on duties in their manufacturing central kitchen. The company estimates that these three EDG projects have saved them at least $60,000 per month on operating costs. By sharing this example, I hope that our food services and retail companies will make full use of the newly introduced $70 million Food Services and Retail Business Revitalisation Package to enable more such companies like Dian Xiao Er to continue pursuing their business transformation efforts, so as to stay competitive and future-ready.
Chairman, we also recognise that manpower challenges continue to feature at the top of the food services and retail sectors' concerns. Together with industry associations, such as the Restaurant Association of Singapore (RAS) and the Singapore Retailers' Association (SRA), we will double up on our efforts to support the hiring and training of local jobseekers.
This will include promoting local talent development programmes, such as the SGUnited Career Pathways scheme and the Career Conversion Programmes (CCPs), as well as intensifying our outreach to jobseekers and supporting the sectors' training needs.
I am also pleased to update the House and Mr Edward Chia that all Government landlords and major private sector landlords have adopted the Code of Conduct for the Leasing of Retail Premises since 1 June 2021. We can look forward to updates to the Code from the FTIC, which is the Fair Tenancy Industry Committee, in the coming weeks. These updates will then provide us with additional clarity and details on the implementation of the Code as its legal enactment gets underway.
Chairman, our tourism sector keeps Singapore connected to the rest of the world and maintains our position as a global-Asia node. COVID-19 has hit the tourism sector very hard. But despite the challenges, we have continued to quickly adapt and pivot to new propositions to come back even stronger. We will continue to support our tourism sector's efforts to recover, innovate and to come back stronger than before.
To answer Mr Shawn Huang's questions about our plans to support our tourism sector's recovery, allow me to share some of our strategies and plans.
First, Singapore Tourism Board (STB) will accelerate its SingapoReimagine international recovery campaign, in tandem with the resumption of international travel. STB is now working with a wide range of partners around the world, such as airlines, travel agents and media outlets, to maintain Singapore's position as a global-Asia node to attract more travellers here.
Second, we will help tourism companies develop attractive new products and experiences. Members will remember the SingapoRediscovers Vouchers (SRV) scheme last year, which generated nearly $300 million in SRV-related bookings and transactions and up to $100 million in ancillary spending. The SRV was part of a larger effort, which is the SingapoRediscovers campaign, which is still ongoing.
Through this campaign, STB works with hotels, attractions and tour operators to create new products and experiences that appeal not only to Singaporeans but also to visitors when they return to Singapore. For example, the tour operator Let's Go Tour Singapore developed new and unique programmes in the course of the SRV scheme and, as a result, they enjoyed a three-fold jump in their revenue compared to pre-COVID-19 times. STB will continue to engage and also support tourism companies so that Singapore will have a broader and richer range of unique experiences and products that differentiate us from other cities.
Third, we will defend our position as a leading destination for high-quality business and leisure events. We hit a \"pause\" button on these because of COVID-19, but STB is now gearing up to resume large-scale, and also, high-quality business and leisure events from this year. I think Members will remember, just two weeks ago, the Singapore Air Show 2022. It welcomed an estimated 13,000 trade attendees and almost 600 exhibitors from over 39 countries.
Later this year, we will welcome many more industry-leading events, such as the Global Health Security Conference 2022, the FIND – Design Fair Asia 2022, as well as the Formula 1 Singapore Grand Prix and the Standard Chartered Singapore Marathon. These events will not only directly benefit the tourism sector but will also ensure that Singapore remains a \"top of mind\" destination.
Fourth, we will continue to co-curate innovative tech and digital solutions with the tourism sector. Over the past three years, STB's Singapore Tourism Accelerator Programme supported 34 promising tech startups in developing solutions to future-proof the tourism industry. Let me quote one example.
One of them is Bazaar and this is a local startup which offers augmented reality solutions. Bazaar developed gamified wayfinding solutions for Marina Bay Sands to enhance its customer engagement. And beyond the Accelerator Programme, Bazaar is now planning to tap on opportunities in the metaverse to support tourism businesses in developing immersive experiences for their customers.
Fifth, we will double down on efforts to upskill the tourism sector workforce to ensure that tourism workers are ready to meet changing job demands. Over the last two years, STB and Workforce Singapore (WSG) supported over 140 tourism companies through various CCPs. This helped more than 1,300 workers take on redesigned and enhanced roles. STB has also set up the Tourism Careers Hub pilot jointly with NTUC and the five main travel Trade Associations and Chambers (TACs) to provide job facilitation, skills training and also, business transformation.
Chairman, to complement the suite of support that the Government has directly rolled out to businesses, we will continue to work with partners, such as the TACs. on collective actions to transform and better position our industries for the future.
As the eyes, ears and mouth for their members, TACs play an important role in the sectors that they represent and this was a point that was highlighted by many of the Members yesterday – Mr Raj Joshua Thomas, Ms Janet Ang and other Members as well. I am always of the view that the TACs' roles actually can be easily summarised by \"ABC\". Why? Because \"A\", the TACs advocate their members' interests; \"B\", they help their members by bridging the communications between the members and the Government; and \"C\", they help their members by collaborating with others, including from other sectors to capture new opportunities for the industry.
Two months ago, I attended the launch of the TAC Competency Framework and the TAC Growth Model. I note that Mr Raj Joshua Thomas also highlighted this in his speech yesterday. The Framework and Growth Model were developed by the Singapore Chinese Chamber of Commerce and Industry (SCCCI) with the support of the Singapore Business Federation (SBF), the Enterprise Singapore (ESG) and the SkillsFuture Singapore (SSG). Through this initiative, SCCCI and SBF aim to reach out to at least 150 TACs on upskilling their secretariats, to raise TACs' capabilities and to add value to their business members.
I would like to assure Ms Janet Ang, Mr Raj Joshua Thomas and Mr Derrick Goh that this year, the Government will redouble our efforts to uplift TACs by building their capabilities, developing their leadership and also enhancing their talent attraction strategies. I would like to announce three new programmes that aim to uplift TACs' capabilities, especially in digital adoption and leadership development.
Firstly, to help our TACs digitalise, SBF will partner SGTech to launch the Digitalisation of TACs programme or, in short, Digi-TAC. Eligible TACs can access a range of digital solutions and training courses that is curated to equip TAC staff with basic e-capabilities that will help raise their productivity and efficiency.
Secondly, SBF will launch a new TAC Fellowship Programme to enable TACs to develop their leaders and build a leadership pipeline. We will support secretariat members and TAC leaders nominated by their TACs to attend the TAC Leadership Development Programme, so as to boost their leadership capabilities.
Thirdly, to boost the TAC talent pool, SBF will, with support from Enterprise Singapore and SCCCI, develop a TAC Leadership Accelerator Programme. This programme seeks to attract talented, high-performing mid-career professionals with industry-relevant experience to join our TACs and to take industry transformation efforts to a higher plane. To become effective leaders in industry development, the candidates will undergo a mix of classroom training and mentorship programmes and also gain on-the-job experience in the participating TACs.
I am very heartened that SBF, as the apex business chamber, has stepped forward as an anchor and advocate for a stronger TAC community to help our businesses grow. More details on the new programmes will be made available this year.
Chairman, in the area of partnerships with the industry, MTI is working closely with the different industry representatives to form the Committee Against Profiteering (CAP). I am grateful that many Members of the House welcomed the aims and the work of the CAP that Minister Lawrence Wong announced during the Budget two weeks ago.
I want to assure Mr Sharael Taha that CAP will investigate businesses that raise prices of essential products and services unjustifiably using the GST increase as an excuse. I have heard many Members during the Budget debate talk about this and they have rightly pointed out that with the global spectre of inflation, some businesses may have legitimate reasons to raise prices. So, our job in the CAP will be to look into errant practices that are flagged out by the public and bring to task those who unfairly profiteer using GST increase as a reason. We want to ensure that businesses keep their prices transparent and do not misrepresent the reasons for any of their price increase. The committee will share more details on its work in the coming weeks.
I would also like to take this opportunity to thank Consumers Association of Singapore (CASE) and its President Mr Melvin Yong for the strong partnership in safeguarding the interests of our consumers. We assure Mr Melvin Yong that we will review the constructive suggestions that he made yesterday to strengthen our consumer protection regime. We will work closely with CASE and the industry to better protect and empower consumers and at the same time, create greater opportunities for businesses in Singapore.
Chairman, I would now like to take the opportunity to touch on another important group of businesses, one that is very close to our home, one that is very close to our hearts – our heartland enterprises.
Mr Shawn Huang said it very well yesterday during the delivery of his cut. He said that our heartland enterprises are the heartbeat of our community and I completely agree with him because the shops in our heartlands form a central thread of Singapore's social fabric and our everyday lives. Many Singaporeans grew up with these \"mom and pop shops\". They play an important role in our neighbourhood, providing convenience and affordable goods and services at our doorstep, as well as jobs for Singaporeans near their homes.
Our heartland spaces are also fertile ground for the birth and growth of many well-loved local enterprises. For example, do you know that our very own homegrown bakery Bengawan Solo started out in an HDB block at Marine Terrace? Over the years, it has expanded to become a household name, serving both local and international customers.
With their affordable rent and ample pool of residents as customers, heartland spaces are ideal incubators for the next generation of notable Singaporean brands. Many budding entrepreneurs have seized this opportunity and have launched their dreams in the heartlands. We can now often find businesses with very fresh and very cool concepts in our neighbourhood, like gourmet burgers or even novel pets.
I have come to know Mr Lee Syafiq of Ashes Burnnit. He leads a very young team and he himself is only 30 years old. He and his team serve up delicious gourmet burgers across four hawker centres and coffeeshops in Singapore.
We want to do more to nurture and launch fresh waves of entrepreneurs in our very own heartlands.
In recent years, heartland enterprises face various challenges arising from changing consumer behaviour and rising competition exacerbated by the COVID-19 pandemic. We will continue to work with our partners and not let up in our efforts to help our heartland shops stay competitive and stay relevant.
One of the key initiatives that we rolled out in October 2020 was the Heartlands Go Digital (HGD) programme, which aims to help our heartland enterprises respond to the COVID-19 situation and also adapt to new consumption patterns and leverage digital commerce.
I am happy to report that as of February 2022, 85% or about 14,500 of our heartland enterprises have adopted e-payment solutions, such as NETS, Fave, Grab and PayNow. In fact, more than half – 58% of our heartland enterprises and that translates to about 9,900 heartland enterprises – are now onboard digital channels and onboard e-commerce platforms such as Carousell, Fave, Shopee and have set up a Google My Business page to create an online presence.
Think about it. This progress is a great step forward for many of our \"mom and pop shops\" that were only using cash and operating strictly as a brick-and-mortar store just two years ago before the COVID-19 pandemic.
Our heartland enterprises truly deserve our admiration and our praise for their resilience and their can-do spirit. MTI and ESG will build on this momentum to bring our heartland enterprises onto a higher plane and into a brighter future.
Enterprise Singapore will be launching a new initiative called Our Heartlands 2025, which we estimate will cost about $50 million to help our heartland enterprises increase revenue, improve their operational efficiency thereby reducing cost and expand their customer base both online and offline.
The four-year programme to energise and support heartland shops will seek to: one, deepen the digital and manpower capabilities of our heartland shops; and two, upgrade the capabilities of our TACs. Let me now share some new initiatives under this roadmap.
Firstly, deepening digital and manpower capabilities will help businesses diversify their revenue and increase operational efficiency thereby reducing cost. Mr Shawn Huang will be glad to note that under Our Heartlands 2025, we aim to further expand our digitalisation efforts, so that nine in 10 shops will adopt at least one digital solution.
Under this new roadmap, heartland enterprises will be equipped progressively via the Heartlands Go Digital programme. In addition, we will accelerate our outreach to merchants and encourage them to take up solutions and training in financial and inventory management as well as venture into online sales through other e-commerce vendors and subsidised solutions.
Besides digital capabilities, we will widen the reach of the current Heartlands Visual Merchandising Programme to increase their offline capabilities and attract customers and improve sales.
Another key thrust of Our Heartlands 2025 programme is to improve and deepen the capabilities of our TAC partners who are active in our heartlands. As I had mentioned earlier, TACs are important partners in helping our enterprises grow and transform.
To support the needs of our heartland enterprises and their transformation journey, we will strengthen and develop capabilities of the Federation of Merchants' Associations Singapore (FMAS) and the Heartland Enterprise Centre Singapore (HECS) as well as our local merchants' associations (MAs).
This will involve training their secretariat in aspects such as project management, precinct rejuvenation and financial management. We will also support FMAS in launching a shared secretariat for local merchants' associations. This will free up more time and resources for the local merchants' associations to help their member shops adopt solutions to increase their revenue and to improve their efficiency.
Chairman, we are committed to helping our heartland shops gear up for the future through Our Heartlands 2025. In the next few years, we hope to see them grow their revenue, boost their operational efficiency and attract new customers into our vibrant heartlands.
On that note, we are looking forward to the heartlands attracting more Singaporeans to eat, shop and spend using their Community Development Council (CDC) vouchers. You may recall that about $130 million worth of vouchers were given out just about two months back in December 2021. The Government recently committed another three tranches, which total up to $650 million in CDC vouchers, which will be distributed over 2022 to 2024.
To date, more than 1.1 million Singaporean households, which translate to 90.6% of households, have claimed the first tranche of $130 million CDC vouchers and $62 million worth of CDC vouchers have been spent in the last three months. More than 91% of the participating businesses have received CDC voucher transactions.
The number of participating outlets in the CDC voucher scheme has grown to more than 14,500. We are very heartened that our heartland merchants and hawkers recognise the benefit of the CDC vouchers and hope that Singaporeans will continue to support our heartland enterprises. Chairman, may I have your permission to say a few words in Mandarin, please?
(In Mandarin): [Please refer to Vernacular Speech.] Mr Chairman, it has been a difficult two years for our SMEs due to the pandemic. During this time, the Government rolled out many initiatives and support measures not only to help SMEs overcome their operating challenges, but also to encourage all businesses to pursue transformation efforts, boost their productivity and improve their sustainability.
We also recognise that some sectors may need additional assistance.
We will be introducing the $70 million Food Services and Retail Revitalisation Package to help businesses seize growth opportunities. The package will: one, extend crucial support for businesses in these sectors to improve their productivity and equip them with the capabilities to pivot and transform, so as to stay competitive and relevant; and two, help companies hire and train more locals and optimise their manpower arrangements.
When speaking of the Food Services and Retail sectors, we cannot leave out our heartland enterprises. Our heartland enterprises offer a myriad of goods and services at affordable prices, inject vibrancy into our neighbourhoods and offer employment to Singaporeans close to their homes. They are crucial to our economy and our community.
I earlier shared about the Heartlands Go Digital programme as well as the Heartland Visual Merchandising programme.
After the introduction of these programmes, we have gathered and listened to feedback from the merchants and merchant associations. After further consultation and planning, ESG and HDB will be launching Our Heartlands 2025, a four-year programme that aims to energise and further the development of our heartland shops. The $50 million Our Heartlands 2025 programme aims to deepen the capabilities of merchants' associations and help heartland shops adopt technology and digitalise. We hope they can innovate and better meet the diversified needs of customers and ever-changing consumer habits, and add to the unique character of our heartlands.
The Minister for Finance announced during Budget that we will be committing another $650 million in CDC vouchers, which will be distributed over 2022 to 2024. We hope the CDC vouchers will encourage Singaporeans to patronise neighbourhood shops and help the continuing recovery of our heartland enterprises.
To date, 1.1 million households, which is about 90.6% of all Singaporean households, have claimed the CDC vouchers distributed last December, with more than $62 million redeemed. More than 91% of the 14,500 neighbourhood shops and hawker stalls on the scheme have logged at least one voucher transaction. I hope more heartland merchants and hawkers can participate in this programme and benefit from it.
Our heartlands are not just places where we can eat and shop, but they are key nodes in our everyday lives where people can have warm and genuine interactions. The Government will continue to work closely with our key partners to create business opportunities for our heartland enterprises, instil vibrancy into the heartlands and build a more cohesive neighbourhood and community together.
(In English): Chairman, we have come a long way in our fight against the pandemic. Despite the challenges, the last two years have also brought new opportunities and growth. This has been possible because of our Singapore can-do spirit. Our journey of learning and transformation continues. As long as we are on this path together, we can take courage and strength that we do not walk alone.
Together, let us chart our way forward and scale new heights as one Singapore. [Applause.]
The Chairman: Mr Liang Eng Hwa.
Mr Liang Eng Hwa (Bukit Panjang): Thank you, Sir. Just two clarifications for the Minister. Firstly, I am glad to see the COVID-19 cases come down in the last few days. I hope we have seen the peak. I would like to ask the Minister whether our growth projections as well as our transformation efforts and the economic plans that we have, would hinge on us further opening up and the further relaxation of our SMMs. Is that an important part to it?
The second clarification is on the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Singapore is the chairman for this year and we read about interest from China and Taiwan. I would like to ask the Minister whether he can share whether are we still engaging the United States to rejoin the TPP?
Mr Gan Kim Yong: Mr Chairman, I would like to thank the Member for the two very important questions.
First, on COVID-19 and our progress for opening up and our economic recovery efforts. I should first clarify that while the numbers have stabilised over the last few days, which may suggest that we are probably nearing the peak, but anything could happen. So, it is important for us to make sure that we continue to monitor and watch carefully, before opening up in a big way.
It is also important to recognise that with all the measures that we have been put in place, we have been able to keep the critical cases low and ICU capacity has been kept manageable. But at the same time, the large number of cases also means that the hospitals are very, very busy. So, it is important for us to ensure that the healthcare system is protected and to allow the patients to be taken care of properly. This will then give us more capacity to open up.
The Member is correct that it is important for our economy that we continue in our journey to living with COVID-19. There are three aspects of our economic recovery that are very important. First, the safe management measures (SMMs) that we impose, have put a strain on many of our economic sectors, particularly the domestic-facing sectors, such as the F&B and retail sectors. They face significant challenges because of restrictions on gathering and the safe distancing measures that they have to put in place.
Second, it is important to progressively allow workers to go back to work. So far, we have a requirement for 50% of employees to work from home, where practicable. But we have to recognise that it is important for businesses to bring their workers together because there are many team efforts that cannot be done with workers working from home. So, we need to progressively restore working onsite and this will help us to open up our economy and allow the economy to recover faster.
Third, which is also very critical, is our global connection. Singapore is a hub city. We are a hub for business, for travel, for talent, for ideas, for investments. This international connectivity is very crucial. And that is why we are continuing to open up our interconnectivity. We introduced the Vaccinated Travel Lane (VTL). We are bringing in more and more important visitors. We are also allowing more workers to return from overseas, some of whom have returned to their home countries and are unable to come back. The construction sector, for example, is still facing constraints and we hope to be able to bring back more of these workers through the opening of VTLs. At the Committee of Supply of MOT, I am sure Minister S Iswaran will elaborate on this.
These are the three aspects which are very important and we will continue to look at these to allow the economy to continue on its journey of recovery.
The Member also asked about the CPTPP. This is a very important agreement that we have entered into and this year Singapore will be chairing the Commission for CPTPP. CPTPP is a very high standard trade agreement that requires its members to meet very stringent trade practices. This will benefit the global multilateral rules-based trading system. Therefore, Singapore and CPTPP members welcome economies which are able to meet these high standards, including the US and other economies. But whether the US is able to join the CPTPP is something that we will need to continue to discuss with and engage the US on.
Beyond CPTPP, Singapore has also been encouraging the US to continue its engagement in the Asian region and in particular, ASEAN. We have several collaborations already in place with the US. One is the Partnership for Growth and Innovation which was announced during the visit of US Vice President. We are in the midst of a discussion with the Department of Commerce on how we can take this further in introducing initiatives to encourage businesses on both sides to tap on opportunities in each other's countries.
We are also discussing the possibility of establishing an Indo-Pacific Economic Framework to allow collaboration among Indo-Pacific economies. This is multilateral, it is not just between Singapore and the US. We want to continue to explore platforms for collaboration between this region and the US, because the US' participation and engagement in this region and in the economy of this region is very important. We certainly look forward to further collaboration between Singapore and the US, as well as the region and the US.
The Chairman: Assoc Prof Jamus Lim.
Assoc Prof Jamus Jerome Lim (Sengkang): Thank you, Chairman. I have three clarification questions: two for Minister Gan and one for Minister Tan.
For Minister Gan, he had gone into some detail in explaining the evolution of our economy toward exportable services. Just to help us get a better understanding, I wonder if he is able to give us some handle on the share of exports that are currently attributable toward services as opposed to more traditional goods.
I ask this in part because the traditional export-oriented industrialisation model for which Singapore subscribed to is such that it is targeted at goods export rather than services. And services export is a relatively new and under tested model. India and the Philippines come to mind and their experiences have not been as promising.
My second question has to do with FTAs and utilisation of these FTAs. Minister Gan had spoken about them. I wonder if he is able to share in terms of the average utilisation rate for all the FTAs that Singapore has signed.
I ask this because, based on the available data, I see that, for example, the Singapore-US FTA's utilisation is only at 15%, the Korea-Singapore FTA is 8%. This goes down to 3% for the Jordan-Singapore FTA and as little as 0% for the Singapore-New Zealand and Singapore-Panama FTAs. The premise of the question is whether we are devoting, perhaps, excess resources to signing new FTAs to the detriment of other positive initiatives by the Ministry.
My third question is directed at Minister Tan. Here I wish to echo Member Foo Mee Har's call for expanding on demand productivity enhancement consultation. This is in part because as a business school professor and also understanding the research, SME productivity shortfalls can actually be extensively explained by managerial deficiencies, such as old-school basics like proper inventory management and HR practices and bookkeeping, not so much the sexy tech upgrades that people often think of. So, here I wonder whether the Ministry will have some efforts to entail public-private partnerships in this particular aspect.
Mr Gan Kim Yong: Chairman, I thank Assoc Prof Jamus Lim for the question.
Services trade constitute about 40% of our total exports. So, it constitutes a very important component of our total export and we will continue to help our companies to export our services. As I mentioned earlier in my speech, there are significant opportunities in the export of services, including the green economy as well as digital services. This will also include our professional services.
In terms of the FTA utilisation, for FTAs, we have to look at it carefully. On the one hand, FTAs provide preferential access for our exports in terms of tariff savings because they allow us to have tariff-free access to important markets. The tariff savings constituted, I think if I remember correctly, about $1 billion last year. So, that is an important savings for our businesses. It means that, otherwise, they would have to pay $1 billion in tariffs to other countries.
But FTAs are not just about tariff savings because they also provide greater transparency for the rules and regulations that will allow our businesses to be able to do business in these countries more easily. Certain FTAs also provide protection in terms of our investments in these countries and that will allow our companies that have investments in these countries to have security with regard to their investment, to allow them to be able to operate freely within those markets.
So, I think we have to look at FTAs in totality. It is not just specifically on tariffs but it allows many other forms of access. A lot of these access may not be recorded, including protection of IPs and protection of investments. And also, it provides a framework for data exchange. Some of these are very critical to our businesses when they do business in other countries. So, this is the overall benefit of FTAs for Singapore.
Dr Tan See Leng: To Assoc Prof Lim's point for on-demand consultancy productivity, today, all our SMEs are welcome to drop into any of our SME Centres or Connect with ESG. On an individualised basis, as I have said, we try to not just have bespoke advice for the larger enterprises but, to the extent that is possible, we try to cater and tailor it to SMEs. You can appreciate the fact that SMEs come from a very wide diaspora of different businesses, different sectors, different industries. So, in terms of trying to help them, to reach them, there is not a one-size-fits-all perspective.
With regard to public-private partnership, we have started PACT, as I have said earlier on. One of the examples that we have done is a company called Excelpoint Technology. I do not have all the details at this particular point in time to share, but I am happy to answer it separately. Importantly, we welcome this type of public-private partnership. If the hon Member Assoc Prof Lim can envisage that there are more of these partners, earlier on, towards the end of my speech, I have constantly encouraged SMEs to take that first step. If there are partners who are willing to partner us to expand the range of service offerings for our own local enterprises, to bring them, to groom them, to develop them into large local enterprises and eventually, to become a Singapore global enterprise, I think we would very much welcome them.
We are all after the same thing in this aspect. What we are trying to do is to grow Singapore enterprises into large local enterprises (LLEs), put them on the world map and, at the same time, offer our Singaporean employees, our Singapore Core, a chance at being able to go global. I hope that gives him the reassurance.
The Chairman: Mr Sharael Taha.
Mr Sharael Taha (Pasir Ris-Punggol): I thank Minister Gan, Minister Tan and Minister of State Low. I am heartened to hear about the plans for the ITM Refresh and Manufacturing 2030. It is exciting to hear how we are pioneering using additive manufacturing to repair state-of-the-art jet engine components.
Minister Gan mentioned that the ITM Refresh will consider workplace transformation and upskilling and retraining workers. I would like to ask if the ITM Refresh can also include the specific requirement to look at job redesign so that we can make a conscious and concerted effort to design jobs that are appealing to mature workers, retiring workers, workers with disability or returning-to-work individuals so that they can contribute and participate in the refreshed economy.
The reason for me asking this is that industries are already finding it hard to find the manpower to grow. We must use the opportunity from the ITM Refresh to realise the latent potential from this group of individuals and we create not just jobs, but inclusive jobs for all. And we retain the experience as we grow our industries.
Mr Gan Kim Yong: Sir, job redesign actually is an integral part of the ITM journey because, as Mr Taha has rightly pointed out, we want to help companies transform their business model, so as to take into account emerging trends and opportunities. But, at the same time, as you change the business model, you have to redesign the jobs so that they fit into the new business model.
In the process of redesigning the jobs, we need to train the workers so that they are able to take on these new jobs that have been redesigned. So, remodelling of the businesses, redesigning the jobs and retraining of the workers are actually integral parts of the entire ITM journey. And I will be very happy for MTI to work together with MOM and the tripartite partners and the companies to embark on this journey of redesigning jobs for existing workers as well as senior workers, including the workers who are more experienced, to transform them so that we can provide them with new career opportunities.
The Chairman: Mr Saktiandi Supaat.
Mr Saktiandi Supaat (Bishan-Toa Payoh): Mr Chairman, I would like to thank the Ministers for their answers to my cuts earlier. I have two clarifications.
First is in regard to my question. It is good to hear Ministers' answers that there are efforts to build talent and manpower by sector. But I would just like to follow up on work to enhance the supply of Singaporeans with the requisite skillsets.
In terms of the Capability Transfer Programme (CTP), I am looking at the website of WSG, which mentions that one of the purposes of capabilities transfer programme is to develop a sufficient supply of Singaporeans. Can Minister explain further, whether in this year's Budget, whether there is any amount set aside for enhancements to the CTP?
The second question I have is in relation to Ukraine. Since the Budget Statement was announced, a few things have happened, especially on oil prices. A lot of analysts are talking about the Russian oil price shock now, in terms of supply crisis, logistics crisis and payment crises and many crises that have emerged. The impact on eurozone growth is a big concern now.
So, from an economic growth perspective and its impact on businesses in Singapore, what are our plans and concerns to help businesses, especially those that are exposed to eurozone?
Dr Tan See Leng: Mr Chairman, I will take the first question and Minister Gan will take the subsequent question.
The first point that Mr Saktiandi Supaat raised, it overlaps the auspices of MOM and MTI. There is significant focus on expanding the Continuing Education and Training (CET) component, even for mid-career workers. Today, under the WSG, we have invested significant resources in developing the Career Conversion Programmes (CCPs). The precursor was the Professional Conversion Programme (PCP) and we have now morphed it into the CCPs. We are very focused on making sure that we work with companies, we walk with companies, helping them to not just redesign skillsets as to what is necessary for them to pivot and to transform, but on top of that, we have our very close relationship with our tripartite partners. The Finance Minister had also announced that we will be significantly beefing up the Company Training Committees (CTCs). NTUC drives that part of it, together, in terms of working, reskilling and also training as well.
These are just two examples. There will be other programmes, perhaps, if I can beg Member's indulgence to stay for the MOM Committee of Supply debate later. You will see the whole plethora of programmes that we have available.
Mr Gan Kim Yong: Sir, all of us know that the crisis in Ukraine is still evolving. The impact, since the war started, has already been felt in many parts of the world. In Singapore, you can also see that energy prices have been on the rise. As for commodities, some of the food suppliers are also indicating that their raw material costs have gone up. We are beginning to feel the impact of the war in Ukraine.
But at the same time, I should also caution that it is still early days. We have not felt the full impact of what the Ukraine crisis will have on the global economy as well as on Singapore's economy.
Broadly, I can try to categorise the impact into three aspects.
First, in terms of supplies. With the conflict between Ukraine and Russia, supplies from Ukraine and Russia, particularly Ukraine, would be affected. Singapore imports very little from Ukraine. Members may remember probably two years ago, even when the COVID-19 pandemic was ongoing, we were importing eggs from Ukraine. So, we do have some imports from Ukraine, but we have diversified supplies. We do have sufficient supply of basic food commodities. So, in terms of supplies, the world will see a shortage of supply of products from Ukraine and Russia.
And secondly, the impact is not just on specific supplies, but also on supply chains. Analysts have indicated that the supply chain, which is already very tight with challenges of the pandemic, now, coupled with the Ukraine crisis, will be tightened even further. So, shipping lines may be affected. Flights are already affected, as all of us know.
So, one is supplies; second, supply chains; and third, both of these will lead to higher costs. And higher costs will eventually impact everyone. Singapore, being an open economy, we will not be able to insulate ourselves from all these impacts. But the Minister for Finance has reassured all of us that we will continue to monitor the situation and if need be, we will provide more support and help for both businesses, our workers as well as our households.
The Chairman: Ms Foo Mee Har.
Ms Foo Mee Har (West Coast): Thank you, Chairman. I have one clarification for Minister Gan. During the COVID-19 pandemic, we promoted domestic tourism and spending to achieve some resilience with locals and also to reduce our dependency on overseas visitors given the COVID-19 border closure. So, lots of thanks to the Government for the vouchers.
I would like to ask the Minister then what lessons have been learned about domestic tourism and consumption and whether this can be sustained after the opening of Singapore. What can be done to further promote and strengthen to achieve less reliance on overseas visitors, and also, to have another pillar, that is, domestic spend?
Mr Gan Kim Yong: Sir, we have to acknowledge that Singapore has a very small domestic economy. It is not possible for us to support the entire population and our entire economy based on domestic consumption. During the pandemic, foreign visitor numbers dried up. We had significant barriers in terms of travel and tourists would not come because of the quarantine, the Stay-Home Notice (SHN) and all the border measures. And therefore, we had to support our local industry, particularly the tourism industry, and we rolled out the SingapoRediscover Vouchers to help to spur demand for the local and domestic industry. But we cannot do this in perpetuity because we just will not be able to support local industry purely by spending our way through.
It is therefore important for us to have a strategy which Ms Low Yen Ling has explained. Our tourism industry is preparing ourselves for the eventual recovery. So, we need to continue to invest in our tourism sector, continue to invest in attracting foreign tourists to come to Singapore when the pandemic subsides.
But it is also important in the meantime to continue to see what we can do to help local industries. I am sure our CDC vouchers – which Ms Low may be prepared to elaborate in a short while – has gone a long way in helping our domestic economy, particularly the heartland shops, retailers and markets and so on. We are rolling out additional CDC vouchers in the heartlands. This will go towards helping our domestic industry cope with the current challenges.
But we have to be quite clear in our mind that it is not possible for the Government to purely support the industry through tax revenues. We need to continue to encourage our external economy, the export of both of our services and our goods, to be able to support our local economy. On this note, maybe Ms Low will be able to elaborate more on our CDC programmes in helping local industries.
Ms Low Yen Ling: Thank you, Minister Gan. I thank Ms Foo Mee Har for the questions.
Like what Minister Gan has mentioned and if everyone in the House remembers, about a year back, when Deputy Prime Minister Heng Swee Keat announced the $130 million CDC vouchers, he cited two objectives. The first objective was to thank fellow Singaporeans for their sense of solidarity during the COVID-19 pandemic. He also highlighted the second objective, which is to stimulate demand for the products and services at our HDB shops and also by our hawkers.
We can all agree. In the last two years, our HDB shops and our hawkers have been adversely affected by the COVID-19 pandemic because they are the front-facing, consumer-facing businesses. Even though now, although dining has opened up, limited to five persons, certainly, in terms of traffic flow, some may say it is not as busy as before the COVID-19 period but necessarily so because of safe distancing measures.
So, in the last nine months, the CDCs have been working with our Government agencies – and allow me to use this platform to thank the whole-of-Government effort in supporting our CDCs. First, a big thank you to GovTech, the Smart Nation and Digital Government Office (SNDGO), IMDA – because we worked with IMDA and their SG Digital Office, with their digital ambassadors to support the onboarding of our HDB shops and our hawkers. This was timely because IMDA and MCI had earlier rolled out Seniors Go Digital and Hawkers Go Digital programmes. By then, many Singaporeans and many hawkers and many seniors are very comfortable using mobile phones to scan a QR code and so on.
On 13 December, when the $130 million CDC vouchers were launched by the Prime Minister, we were very, very heartened that within two days, 550,000 households claimed the vouchers; and within 10 days, 830,000 claimed. I believe less than four weeks after the launch, we crossed the one-million mark. More than one million households claimed the vouchers. I just earlier mentioned that to date, 1.1 million Singaporean households have claimed the $100 CDC vouchers. We are happy that over the last two and a half months, we have seen that more than $62 million of CDC vouchers have been spent.
MTI and ESG have been working very closely with FMAS and HECS to conduct a survey on how this has supported and turbocharged the market. We are very heartened to hear from our HDB shops, merchants, hawkers saying that since the launch of the CDC vouchers in December – which also coincided with our inaugural Heartlands Festival which was launched on 28 November – it really brought human traffic, the crowd to the neighbourhood centres. It is because we have designed it in such a way that it coincided with the festive period. If you remember – Christmas, year-end and then the Lunar New Year.
We have heard from our merchants that, on average, their footfall has increased by 20%. We have heard from the merchants who are participating merchants and hawkers of the CDC Vouchers Scheme that their sales have improved 10%, some 30% and, in some cases, 40%.
So, we are very heartened. In fact, many merchants were very heartened to hear Minister Lawrence Wong announced two weeks ago when he delivered Budget 2022, that, this year, he will roll out another tranche of $130 million in CDC vouchers, which means that every Singaporean household will receive $100 of CDC vouchers under the Household Support Package (HSP).
In addition, Minister Lawrence Wong announced that, come January 2023 and come January 2024, each Singaporean household will receive $200 of CDC vouchers as part of the Assurance Package, though for 2023 and 2024, the major supermarkets will be included in the list of participating merchants and hawkers.
So, we want to give assurance to Ms Foo Mee Har and Members in the House that in designing products and solutions like these, hand in hand with our HDB shops and our SMEs, if we bear in mind the objective, which is to stimulate demand for their products and services, the CDC Vouchers Scheme has shown – just like the SingapoRediscover Vouchers did – it can bring a multiplier impact to the economy.
The Chairman: Mr Liang Eng Hwa, would you like to withdraw your amendment? Minister Gan.
Mr Gan Kim Yong: Chairman, can I just make a quick clarification? I mentioned $1 billion of tariff savings from our FTAs. That number was correct, but it was for 2020. I said last year but, actually, it is for 2020. Just for the record.
The Chairman: Thank you. Mr Liang Eng Hwa.
Mr Liang Eng Hwa: Chairman, allow me to thank Minister Gan Kim Yong, Minister Tan See Leng and Minister of State Low Yen Ling for responding to our cuts and clarifications; and also wishing Minister of State Alvin Tan a speedy recovery.
Sir, the road ahead is full of uncertainty. Our economy is facing challenges and stresses from multiple fronts. But we take comfort that we have a best-in-class MTI team there and now helmed by Minister Gan, who is, of course, no stranger to managing crises. We wish MTI all the best and, with that, I beg leave to withdraw my amendment.
[(proc text) Amendment, by leave, withdrawn. (proc text)]
[(proc text) The sum of $2,804,739,800 for Head V ordered to stand part of the Main Estimates. (proc text)]
[(proc text) The sum of $6,266,508,900 for Head V ordered to stand part of the Development Estimates. (proc text)]
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Committee of Supply – Head Q (Ministry of Communications and Information)","subTitle":"Building a strong and vibrant economy, and future-ready workforce","sectionType":"OS","content":"Ms Tin Pei Ling (MacPherson)\t: Mr Chairman, I beg to move, \"That the total sum to be allocated for Head Q of the Estimates by reduced by $100.\"
Singapore is progressing surely and steadily in our digital transformation. With this comes several competing considerations that we need to balance.
On the one hand, for survival and to keep relevant, Singapore has to continually invest in next bound infrastructure and our people. When others look at 5G, we must look at 6G and when others look at Web 3.0, we must imagine Web 4.0. Our people must have the skills and versatility to take advantage of the new opportunities.
Yet, to preserve social cohesion and inclusive growth, Singapore also must ensure that the less digitally savvy amongst us are not inadvertently left behind or excluded from participating and benefiting from digitalisation, which could widen the gap between those who know and know‐not.
There are other considerations as well – how to leverage digital solutions on a larger scale to solve real problems yet guarding against cyberattacks, how to incentivise businesses to go digital and, in doing so, how to ensure accountability without making the process so cumbersome that businesses \"lose steam\".
These are not necessarily mutually exclusive, but they require careful balancing and calibration.
Take my elderly resident as an example. She wanted to apply for CareShield Life. But the only mode of application was through the e‐service and thus requires Singpass. For the digitally‐savvy, this would be fuss free and save time. But she has no mobile phone or Singpass.
Eventually, her daughter managed to apply for Singpass and linked it to her daughter's phone. What if my elderly resident was a single elderly?
I would like to ask how will the Government uphold economic vibrancy and Singapore's competitiveness while preserving social cohesion. How will the Government ensure that the public and private sectors will go digital with empowerment and inclusion as prerequisites? What will the Government do to protect our people, young and old, and businesses – small and big, from new threats that emerge from this fast-evolving space?
A related point is about digital regulations. As technology advances rapidly and new solutions with new use cases emerge, existing regulations need to evolve, or new ones have to be formulated. But timeliness and finding the sweet spot seem to be challenging.
Consider cryptocurrencies and non-fungible tokens (NFTs). These are high‐risk and speculative and often seen as a tool for illicit activities. Hence, sufficient research and deliberation are needed before formal regulations and policies can be introduced. But meanwhile, will we risk becoming too slow and lose potential opportunities?
With metaverse fast becoming a thing, will our policies and regulations be fast enough to capitalise on its development while addressing transactions, personal data and user interaction issues?
In encouraging enterprises or individuals to digitalise or upskill through monetary incentives, might the process be so tedious such that they decide to remain in their comfort zones and stick to just being good enough and avoid digital transformation altogether?
Hence, I would like to ask how will the Government ensure regulatory changes keep pace with tech advancement. How do we ensure that we provide sufficient guardrails, yet not suffocate innovation? Chairman, do I continue with my next cut?
The Chairman: You can carry on with your second cut.
Ms Tin Pei Ling: Sir, what happens online can have spillover effects in the real world. Reports of precious lives lost to \"bullycides\" and life savings lost to online scams are aplenty. While nobody is immune, children, youths, women and elderly are especially vulnerable to online harms.
Years ago, my resident's fiancée was a victim of \"revenge porn\". Her ex‐boyfriend uploaded intimate material onto websites such as Revenge Porn, attracting unsavoury comments from people she knew and did not know. Thankfully, the then-IMDA blocked it. But the damage was done.
In general, women and girls tend to be victims of body shaming and hyper-sexualisation online.
In 2020, an elderly resident fell prey to an online investment scam. He was misled to believe that the scheme was endorsed by Senior Minister Tharman Shanmugaratnam, which is, of course, not true. Due to his lack of knowledge, he gave his one-time password (OTP) away and racked up a huge credit card debt that he could not afford.
While adults having gone through a few hard knocks in life can arguably cope better, youths and children are still in their innocence and need a lot more protection. The inaugural 2020 Child Online Safety Index report found that almost 60% of children aged between eight and 12 in 30 countries were exposed to at least one form of cyber risk, of which 45% were affected by cyberbullying.
Online harms cause distress and have long-term adverse consequences in real life. We must protect our people from such harms, so that they can live freely and fulfill their potential. What are the support measures and resources available to raise awareness, prevent and intervene to reduce online harm?
[(proc text) Question proposed. (proc text)]
The Chairman: Mr Alex Yam. Not here. Mr Don Wee.
Mr Don Wee (Chua Chu Kang): Chairman, the onslaught of online scams, the prevalence of fake websites and the ubiquity of misinformation on social media are having a severe detrimental impact on our society. The loss of hard-earned money, loss of trust in official and traditional sources of information and the confusion and harm caused by false information interferes with how a nation can function and operate normally and damages our social fabric.
The digital universe has no border and invaders can potentially enter from anywhere if we do not put up our defences. It is not easy for the man in the street to keep abreast of the latest online scams and newly-evolved digital deceptions.
What measures does MCI have in place to help protect our people from online harm?
Dr Wan Rizal (Jalan Besar): Chairman, Singaporeans are now spending more time online, which means they are more open to online content – and some content may hold extreme or even extremist views – online gaming and possible gambling as well as engaging in social media that may not be able to regulate all of its contents.
Different segments of the community may be exposed to varied levels of online harms. The youths, for example, are most susceptible to negative influences like cyberbullying, hate comments or even online shaming. The elderly, too, are not spared from being cyber victims.
I welcome the Alliance for Action to tackle online harms, especially those targeted at women and girls.
What are some targeted measures that MCI will put in place to protect the different segments of Singaporeans from varied forms of online harm?
Dr Shahira Abdullah (Nominated Member): Mr Chairman, digitalisation is a priority for many countries, Singapore included. However, as mentioned, with increased digitalisation comes exposure to online harms. All segments of the community are vulnerable to online harms. We all know the recent OCBC phishing scam where 790 customers lost $13.7 billion. That is one type of online harm.
Another type relates to content found online, for example, online sexual grooming, doxing, cyberbullying, online harassment or stalking and the sharing of misinformation or unlawful content.
As we know, platforms, such as OnlyFans, have been used to show unlawful content. On the metaverse, there have been reports of avatars being bullied and verbally and sexually harassed virtually. I must commend the Ministry for doing much in educating the public on how to navigate the Internet safely.
However, what can we do to always make sure that we keep ahead of all the online changes and can we do more in terms of regulations? I watch with interest the developments of the Online Safety Bill in the UK which would determine how online platforms should deal with content and how to prevent the propagation of illegal content. Australia also recently promulgated its e-safety legislation. Would the Ministry consider introducing legislation to regulate online content here as well?
The Chairman: Mr Gan Thiam Poh. Not here. Mr Christopher de Souza, you can take both your cuts.
Mr Christopher de Souza (Holland-Bukit Timah): Mr Chairman, Sir, for SMEs, in particular, while the reality of digitalisation as the future is acknowledged, there is much practical difficulty in terms of initial costs, lack of technical expertise and assisting employees in making that transition, particularly senior employees who have worked for years within the existing system. The launch by IMDA of schemes, such as Better Data-Driven Business (BDDB), the Digital Leaders Programme (DLP) and the Chief Technology Officer (CTO)-as-a-Service, have created platforms to help many brick-and-mortar businesses pivot towards hybrid online-offline models and are, certainly, welcomed. How will MCI continue supporting businesses to build or enhance their digital capabilities, so as to take advantage of the post-COVID-19 phase of economic recovery?
As we prepare for a post-pandemic future, technology can revolutionise and reinvent much of the way business is done. With hyperscale cloud providers dominating the cloud infrastructure and more industry clouds appearing, cloud computing has transformed in a way that has changed digitalisation. Other technologies, such as quantum computing, the metaverse and digital currencies, are continuing to take over the landscape and seemingly unlock more potential. How can the Government take advantage of the potential of new digital technologies and invest into it, while at the same time, watching against any potential pitfalls? This then, can enhance Singapore's competitiveness and resilience.
Mr Sharael Taha (Pasir Ris-Punggol): Mr Chairman, for Singapore to pioneer the model for a globally competitive digital metropolis, the digital space must be economically vibrant, socially stable and digitally secure for all. Larger businesses tend to have the resources to protect their interests in this digital space. How will MCI ensure that the interests of consumers and small businesses continue to be protected in this digital age?
The Chairman: Ms Hany Soh. You can take both cuts together.
Ms Hany Soh (Marsiling-Yew Tee): Chairman, in Mandarin, please.
(In Mandarin): [Please refer to Vernacular Speech.] During the pre-COVID-19 days, I used to visit Mediacorp once a month to give law awareness radio talk shows on Capital 95.8FM. During the intervals, I would sit at a corner and listen to the senior radio news presenter presenting dialect news, like in Hokkien or Cantonese. These presenters are usually over 50 years old; occasionally, they would stay behind to wait for me to finish my talk show to have a chat with me in Mandarin or Hokkien, sometimes about getting some legal advice on estate planning.
I have always enjoyed these sessions as they bring back childhood memories of chatting with my Ah Ma. Like her, most of the seniors only know how to communicate with people in dialects and rely on the vernacular radio news broadcasts to stay updated on current affairs.
Recently, in my catch-up with one of the DJs, I came to understand that due to the COVID-19 situation, these dialect news presenters are now required to record their radio news broadcasts from home. It has been a challenging time; some of them have sadly passed away, while some have chosen to retire as they found themselves unable to keep up with technology.
How will the Ministry ensure that radio stations continue to train and retain talents in this aspect in order to continue on with this feature? In my capacity as the Advisor to Singapore Union of Broadcasting Employees (SUBE), I also hope that more welfare support can be given to taking care of these dialect news radio presenters.
(In English): My next cut is on whether a collaboration with Mediacorp will be explored to introduce a cartoon series using rhythmic content akin to Baby Shark or CoComelon YouTube channel songs involving mascots like Captain Green, Water Wally to attract and educate young audiences to become our young budding green champions.
Mr Leong Mun Wai (Non-Constituency Member): Mr Chairman, I was surprised to learn at the February Sitting that taxpayers may have to pay up to $900 million over five years to support Singapore Press Holdings (SPH) Media Trust, the Government-owned publisher of most of Singapore's mainstream newspapers. Since we are raising a lot of taxes in this Budget, we should be careful about such a new and big outflow of taxpayers' money.
Firstly, where is the plan to recoup the $900 million over time? Do we have an exit plan, or will we keep funding SPH Media Trust for many more years beyond the first five years?
Secondly, why did the Government not ask for more money from SPH, the listed parent, before it agreed to taking the loss-making business out of SPH? SPH assets have grown over the years, thanks to the hefty profits of the near-monopoly media business it previously enjoyed. Although in recent years the print business has become a loss-making business due to the Internet, SPH has maintained overall profitability because of its huge property portfolio.
Thus, it is reasonable to expect SPH to continue to fund the transformation of the media business. Hence, the Government's arrangement with SPH is evidently a bad deal as taxpayers have to foot the bill of SPH Media Trust at least for the next five years while the property assets of SPH, which are worth at least $3.9 billion and expected to generate an annual cash flow of $300 million, according to one broker's estimate, are likely to be sold to Cuscaden Peak, a company owned by our local property magnate Ong Beng Seng, for the benefit of existing and future shareholders. Can the Minister explain what is the rationale behind the Government's acceptance of such a deal?
Mr Xie Yao Quan (Jurong): Chairman, as we move towards a digitally-inclusive society, we will not only need to focus on promoting digital literacy and skills, but also on supporting all businesses, especially small and medium‐sized enterprises, and all individuals to guard against both cyber and data threats. This will strengthen our collective defences and resilience against bad actors and preserve overall confidence in our digital future. In this regard, what plans does MCI have to support our businesses and citizens?
Mr Shawn Huang Wei Zhong (Jurong): Advanced digital infrastructure and cybersecurity technologies are important, but we also need to enhance our fundamentals. To get a Data Protection Trust Mark (DPTM), there are five assessment bodies with IMDA which can assess an organisation. Today, an organisation can take up to one year to get the certification, with a queue to start assessment. The certification is demanding and rightfully so. As of 2 March 2022, there is a total of 81 organisations which have attained DPTM certification. ACRA records state that we have about half a million registered entities.
In practice, we do not need every organisation to be certified. But, in parallel, we must enhance our understanding of basic data protection law and emphasise the importance of critical data protection requirements. Three questions.
How are data protection consultancies regulated in Singapore today? How do we ensure that our data protection ecosystem has the competencies and subject matter experts required to be secure? How can we better build and accelerate our efforts to build trusted, secure and resilient digital infrastructure and technologies? How can we better support businesses and individuals to guard against cyber and data threats?
The Chairman: Ms He Ting Ru. Not here. Ms Hany Soh.
Ms Hany Soh: With the growing cyber and data threats, how will MCI better protect individuals and businesses and guard against these risks, helping to ensure that they remain confident enough to continue thriving in the digital realm? Are there any grants that can be provided to encourage companies to adopt approved cybersecurity solutions that can help these businesses?
Mr Baey Yam Keng (Tampines): Mr Chairman, our society and lives are being transformed. We use digital technologies every day, whether in a lived, work or play environment. We spend so much more time in the online space.
However, not everyone has digital access. When the online mandatory theory test for PMD and Power Assisted Bicycle riders was first launched, it was only available via a laptop. Ironically, more people nowadays have a smart phone but not a laptop. Hence, we recommended those without a laptop to use the facilities in our national libraries.
In the past, people go to the libraries to borrow books or to read newspapers and magazines. In today's world, reading or acquiring knowledge and information is no longer restricted to the physical print version. Sadly, the falling rate of reading is a global trend.
In this respect, the role of our libraries needs to evolve. They could play an indispensable role in supporting Singaporeans to navigate this digital world while cultivating a spirit of lifelong learning and bringing the community together.
In the past, library users must first be able to read. Otherwise, the library collection is useless to them. Today, digital literacy is as important as knowing our ABCs. So, how will MCI ensure that the benefits of digitalisation extend to all segments of our society? What measures are in place to bridge skills and knowledge gaps and ensure that individuals have the know-how, confidence and motivation to use digital technology?
In the late 1990s, our libraries were transformed from functional spaces with rows of bookshelves to vibrant community nodes, where the young and old explore wonders of the written word. How are our libraries being refreshed to meet the changing needs and interests of Singaporeans and continue to nurture a love of reading, learning and discovery?
I see SG Digital Office ambassadors in the neighbourhood teaching our seniors how to use their smart phones and encouraging heartland shops to come on board and accept digital CDC Vouchers. The deployment of resources on the ground has been effective, but how sustainable is it? How can we tap on the diversity, insights and capabilities of the wider community and empower ground-up efforts?
Sir, we need to do more to advance digital inclusion. Let us do more to welcome more immigrants to the digital world and integrate them well to be truly digital citizens.
Mr Seah Kian Peng (Marine Parade): Mr Chairman, with digitalisation becoming more pervasive and an integral part of our society, how is the Ministry working with the private and people sectors to bring digital to life for Singaporeans and prepare them for the digital future?
Today there is a growing need to pay attention to the livelihood aspect of the digital economy which offers some of the most exciting and high-quality jobs across the different sectors.
Under the Smart Nation strategy, we have outlined our ambitions to build a digital economy, a digital Government and a digital society. Can the Minister let us know the progress of this initiative, especially in terms of the whole-of-nation digitalisation effort?
Second, Singapore had outlined funding and aims to develop high-tech digital solutions for industry, including being a lab for deploying new technology solutions. Can the Minister let us know how we are doing in terms of translating novel technologies into commercial products and services?
Last, part of Singapore's advantage has always been our ability to work across disciplines. Such innovative inter-disciplinary technology solutions give us the power to address complex challenges. It also allows us a special position as a trusted digital innovation hub.
Can the Minister give us an idea how Singapore is doing in terms of its ambition to become as honest agent in digital trust? Finally, how will MCI equip Singaporeans with the necessary skills to access the emerging opportunities in the digital economy?
Mr Sharael Taha: Chairman, in the last two years, we see the accelerated adoption of digital practices in our society. Businesses and individuals have transformed quickly to adopt digital solutions. PayNow mobile users grew to 3.07 million people in 2021, 4.4 million people use Singpass, 118,000 people have been trained under TechSkills Accelerator (TeSA) and 74% of firms have adopted at least one digital solution in 2020.
However, there are still some Singaporeans and businesses that have not been able to adopt digital solutions. How is MCI supporting Singaporeans who are less digitally savvy and have not embraced digital and benefit from its use in their daily lives?
In particular, the seniors and Hawkers Go Digital programme have been running for the past two years. However, there are still seniors and hawkers who are apprehensive about going digital. What more can we do to bring them onboard?
For our youths, how do we ensure that the gap between the digital \"haves\" and the digital \"have-nots\" do not widen? What more can we do to support our less privileged youths? How can we ensure all youths have access to digital devices, connectivity and the required skillsets so that they are better prepared for the digital economy?
Mr Eric Chua (Tanjong Pagar): Sir, Singaporeans are one of the most digitally connected people in the world and we start young. According to a survey in 2019, Singaporean children get their first Internet-enabled device at the tender age of eight. That is two years younger than the global average and is amongst the youngest worldwide.
And we seem to love our devices. On average, Singaporeans own 3.3 connected devices per person. Amongst us, 91% own a smartphone, sometimes two, and our broadband Internet speed is amongst the highest in Asia.
Couple these trends that have been gathering pace since the 1990s with changes in our lifestyle due to the pandemic in the past two years – work-from-home, home-based learning arrangements, safe management measures, all those have meant that the human connection that each of us yearn for could often only be achieved through technology-mediated means. Simply put, we cannot live without being digitally connected today.
Technology can either be a boon or a bane through social networking sites, people all over the world can reconnect with long-lost friends, share tips on niche hobbies and rally like-minded individuals passionate about various social causes.
In the same vein, however, these platforms have also allowed terrorist cells from remote corners of the world to link up. Much, therefore, depends on factors, such as the purpose that technologies are harnessed for and the motivations of individual tech users, amongst others.
While most people use the Internet and social networking sites for gainful posted purposes, for work, learning and leisure, some, inadvertently fall prey to ills that lurk in our online spaces.
First, sexually explicit materials. WE CARE Community Services, a community-based addiction recovery centre reported an increase in the number of people seeking help for compulsive sexual behaviour, including excessive online pornography consumption. From 50 cases in 2019, WE CARE handled 100 cases in 2020. That is a 100% increase. Seventy cases were new and many were youths in their 20s.
In many cases, first encounters with sexually explicit materials online start off quite innocuously as a curious conversation between peers or a chance encounter with a sexually explicit site due to random pop-up advertisements. But in Asian societies like ours, where parents tend to avoid awkward conversations on such sensitive topics, young impressionable minds are often left on their own to make sense of the material that they come into contact with. While many do not find themselves mired in addiction, the fact remains, some do. Especially when the consumption of sexually explicit material serves as a stress management mechanism. The question then is: do we know this often invisible issue well enough to design appropriate interventions?
Second, gaming. Gaming itself is not necessarily a bad activity. It can be a good source of entertainment, stress relief or even character building. But things can go south with a small group of gamers when excessive online gaming interferes with one's routines. Relationships with family and friends can become strained and when gaming becomes a compulsion, one becomes restless and irritable when access to gaming is curbed.
We all reeled in shock here in Singapore when we learnt that a teenager with a gaming addiction killed his father, partly because the father had limited his access to his games. The related issue is that of in-game loot boxes or \"virtual goodie bags with random rewards\" as The Straits Times called it. The odds for some of these loot boxes are sometimes as low as 0.00005% – and that is four zeros behind the decimal point, for the record. Of course, this means that prizes are extremely coveted.
But what is concerning is how addictive loot boxes can become. Experts have warned that the allure of these loot boxes lie exactly in the excitement of not knowing what one is going to get, much like what Forrest Gump says in the box of chocolates. This stimulates the production of dopamine, a mood-lifting biochemical typically produced when we exercise, get sufficient sleep or meditate. But this keeps the gamer coming back for more.
I have talked about my concerns on sexually explicit materials and gaming. But there remain many other issues that needs working through – cyberbullying, misinformation and disinformation, extremism – amongst many others. I stress again for the record here that I am not making a case against the Internet or gaming or any online platforms.
But, while I had scratched the surface in terms of these online deals we need to tackle, what is the Ministry's strategy in mobilising resources, channelling societies attention to developing issues? And what are the conversations we need to have as a society? What roles can families and parents play? How can we all do our part to make the online world – which actually can be a constructive space for networking, knowledge sharing and content creation – one that is safer for everyone?
Mr Mohd Fahmi Aliman (Marine Parade): Sir, last year, MCI launched the Singapore Together Alliances for Action (AfA) to tackle online harms, especially those targeted at women and girls. The launch of AfA came after 300 stakeholders from diverse backgrounds were consulted. Essentially, the launch of AfA is underpinned by the desire to combat online harms, especially those targeted at women and girls.
Importantly, MCI underscores that the AfA would focus on closing the digital safety gap and on taking actions to enhance the freedom and safety of our women and girls in the digital future.
According to MCI, the AfA will start with 48 members across the people, public and private sectors to address the issue of online harms in five key work streams as suggested by participants from the earlier conversations. Namely, they include public education, research, victim support, youth engagement and volunteerism clusters. As such, the AfA will adopt a whole-of-nation approach to close the digital safety gaps.
I am encouraged by the launch of the AfA as it signifies our commitment to addressing online harms in an increasingly lethal society. I would thus like to ask the Minister for Communication and Information if she could share any updates on the progress of the AfA since its launch last year. Additionally, could MCI also elaborate on the number of stakeholders it has managed to get on board the AfA since its launch? Finally, can MCI also delineate some of the AfA's implemented and upcoming initiatives to address online harms, especially those targeted at women and girls?
The Chairman: Ms Hany Soh, you can take both cuts together.
Ms Hany Soh: How does MCI bridge the digital skills and knowledge gap among Singaporeans and encourage them to seek out digital opportunities to pursue lifelong learning and enrich their lives? Apart from the assistance provided by our digital ambassadors, can we consider providing more support to IHLs for the latter to conduct more digital technology training courses for the public? It can either be run in a manner similar to SkillsFuture courses or a collaboration with the People's Association whereby IHLs' lecturers and students reach out to vulnerable groups in the community through the residents' community centres, senior activity centres, in order to run these courses.
During this pandemic period, many of our little ones seek comfort in reading, keeping themselves occupied while their parents are busy with online zoom conferences. Besides being a healthy form of entertainment, it can also be a form of bonding as it helps the children to return to their roots by learning traditional stories and rhymes.
What are the ongoing and upcoming efforts to increase the availability and variety of books and e-resources in Chinese, Malay and Tamil so as to encourage our young readers to master their mother tongue languages?
Mr Speaker: Ms Jessica Tan. You can take both cuts together.
Ms Jessica Tan Soon Neo (East Coast): Mr Chairman, libraries play a special role in igniting the joy of reading and nurturing curiosity and enquiring minds. The ability to read is fundamental to enable access to information and encouraging lifelong learning in the young and old. Reading helps develop imagination, creativity, speaking and communication skills. My residents, young and old, shared with me their fondness and desire for a library in our estate.
With the pervasiveness of digitalisation, digital literacy is as important as reading for access to information and lifelong learning. Our network of public libraries has continued to innovate and transform to stay relevant, including offering digital services.
How is MCI leveraging our libraries to encourage a self-directed learning culture and spark curiosity among the public to improve their proficiency in digital skills and literacy?
While digital access allows access to content and programmes, beyond that, the physical libraries do provide community and social spaces for people to come together to learn. A highlight of National Library Board's (NLB) LAB25 are installations called Nodes, to serve as new entry points into NLB's wide array of content. Will NLB consider the installation of Nodes in estates like Simei that do not have a library? Actually, given the important role that libraries play, it would be even better to have a library in Simei.
To help our SMEs stay competitive, innovate and seize opportunities in the digital economy, there are a host of initiatives and resources to make going digital simple and easy for all.
These include schemes like: (a) the Industry Digital Plans (IDP), which are industry-specific, step-by-step guides to digitalisation; (b) InvoiceNow, which enables businesses to digitalise the way they transact; (c) Better Data Driven Business (BDDB) or Business Intelligence (BI) tools, help SMEs gain deeper insights by converting business data into visual dashboards for easier data analysis; and (d) the Singapore Trade Data Exchange (SGTraDex) – which is an open digital infrastructure that facilitates trusted sharing of data between supply chain ecosystem partners. Can we have an update of how many businesses have participated and utilised these initiatives?
As part of Budget 2022, an additional $200 million will be allocated to enhance schemes that build digital capabilities in businesses and workers. What are these new initiatives? And how will they build on and complement the current initiatives?
Apart from these initiatives, I urge MCI and related agencies to consider nurturing \"communities of learning and practice\" for digital and tech talent. I believe that this will catalyse an ecosystem for tech talent to share perspectives, experiences and to learn from each other and this will build the vibrancy of the tech community here in Singapore.
MNCs and Local Large Enterprises (LLEs) can play a bigger role in developing digital and tech talent in Singapore. How can we encourage these companies to incubate smaller companies and workers to develop digital/tech talent? These companies have the talent development programme as well as expertise to provide learning and the business environment to build and to scale digital capabilities and I believe that these companies can play a very big role in building a bigger pool of talent base than they need and they should play that role.
Ms Mariam Jaafar (Sembawang): Sir, I would like to declare my interest as the Managing Director of a consultant firm that does work in the area of skills development.
The Government has made available a wide range of programmes available to help SMEs to go digital, such as the Productivity Solutions Grant and CTO as a Service. Many SMEs have taken advantage of these grants. Yet, there are still many SMEs which have not started down the digitalisation path in a meaningful way. But for a digital transformation to be sustainable, it is not enough to adopt some digital solutions. To ensure sustained performance, the employees need to go digital, be reskilled and upskilled, and, importantly, must have the opportunity to use these digital skills in their daily work.
Yet, we often hear that Singaporeans who work in SMEs find that they have fewer opportunities to acquire these new digital skills, compared to their peers working in LLEs and MNCs. This will impact their future career options. While the expansion of SkillsFuture Enterprise Credit eligibility will help more companies provide these employees, there is a lot of room to increase the take-up amongst those already eligible.
What more can the Government do to encourage the long tail of SMEs to reskill and upskill their employees now in order to capture opportunities in the digital economy in a sustainable way? How can this reskilling be done at scale? How can larger enterprises and TACs support the SME base? And how can we encourage and ensure that employees, in particular, who do not invest in such reskilling can go after those opportunities on their own, given that they have more limited resources to do this on their own and may not get the opportunity to put these skills to work in their day jobs?
Ms Tin Pei Ling: Sir, in my interactions with tech companies and tech leaders in Singapore, regardless of the company size and local or otherwise, the one common feedback I receive is skills shortage in Singapore.
Some shared that they need technical expertise, so that they can conduct research and product development here. Others shared that they set up their International or Regional Headquarters in Singapore. For these firms, they need not only technical talents but also market expertise. For instance, a large software service firm told me that they need talents well-versed in Vietnam and Indonesia to serve the markets there from here. These are large markets for them. The concern is that if firms like this cannot hire or access these talents in Singapore, then they may be compelled to move certain departments or wholly out of Singapore and leave Singaporeans and Singapore for the worse. Our people will lose jobs and opportunities to learn from some of the best around the world.
As such, I would like to ask for an update on the tech and innovation manpower situation in Singapore now. What are the skills and manpower gaps? Over the next three to five years, will we have enough Singaporeans to fill those gaps? What else will be done to address the gaps so that good tech firms remain invested in Singapore and continue investing in our people?
To this end, I would like to share some thoughts, observations and suggestions.
First, continue building up our local talents from young. Many Singaporeans recognise the value and potential of having tech skills, with parents sending their children to coding and robotics classes and mainstream schools offering coding as an \"enrichment\" for all upper Primary students. This is a good start, but we should build on the momentum and consider introducing computer language as, perhaps, a second language in schools, as well as introducing key concepts and uses of new technology in class. The idea is not so much to train everyone to become coding experts, but to inculcate an intuitive understanding of the logic and applications.
We also need to enhance the global quotient of our young. Expand existing in‐market programmes, such as the Singapore‐China Youth Interns Exchange Scheme (YES) and Asia-Ready Exposure Programme (AEP), and actively push our students to take full advantage of these programmes.
The second is on ecosystem of talents. We need to ensure steady growth of a skilled and versatile Singaporean Core. I am aware that there are efforts to encourage our young to choose STEM courses and majors; this helps to increase supply to meet the talent demand.
At the same time, we need to recognise that not all tech firms or tech‐related jobs need hard tech skills. A local tech leader told me that she met a Polytechnic graduate who studied tech but decided to become a barista because she did not like coding. While there is nothing wrong in choosing a different career, the tech leader wondered if the outcome would have been different if the young barista realised that there was a wide range of options for a career in tech.
While the public and private sectors could do more to increase awareness on the wide range of career options and groom local talents, the Government could also identify specific skills in demand but lacking in Singapore and co‐sponsor scholarships with companies to train local talents from young.
Some of the more progressive tech firms are shifting from pure competition or working solo to partnerships. Could we, therefore, put in place a support system for skilled gig workers who are trained and well-versed in different operating systems and software, so that they form a formidable talent pool for companies here to tap on? In a way, these are \"interoperable\" talents.
And we also need to continue to be open to good global talents who can and want to contribute. They fill manpower gaps, but are also good people to exchange knowledge, skills and ideas with so that we can grow together.
And the third point is on having more role models. Healthy diversity is beneficial to boosting talent supply and business outcomes. Therefore, we must continue to promote girls and women in tech. Having enough women in tech can shape how girls think of a career in tech – that it is not just for the boys – and give them confidence to give it a shot. Hence, what is the female representation in tech jobs and tech leadership positions in Singapore? What is the female representation in STEM‐related courses in IHLs in 2021 and across IMDA's talent programmes? Is the figure stable, decreasing or increasing?
Similarly, we need more stories of successful Singaporean tech leaders who could be role models to inspire more to join their ranks. Could the Government share whether it actively keeps a record of Singaporeans in tech leadership positions in Singapore and overseas? Could the Government share their stories and invite them to provide mentorship through the likes of the Singapore Global Executive Programme?
Mr Xie Yao Quan: Chairman, the digital economy allows us to transcend our geographical constraints and create value for the world. Our digital capabilities must become a strategic competitive advantage for us. We cannot stop, for competition will not stop. And, indeed, we have to go even faster and further, as competition will only accelerate. In this regard, what are MCI's strategies to build up an ICT workforce in Singapore with deep expertise and with ever more and exciting opportunities for Singaporeans?
More broadly, what are MCI's plans to nurture a digitally-enabled workforce at large that can access opportunities brought about by digital technologies across the economy?
At the ecosystem level, how is MCI driving investments in new technologies and their translation into applications to enhance Singapore's long‐term competitive advantage?
The Chairman: Ms Jessica Tan, you can take both cuts.
Ms Jessica Tan Soon Neo: In my Budget debate speech, I spoke about the fact that, beyond specialised tech roles, the broader workforce will need to be equipped with the knowledge and ability to use technologies in the workplace as an increasing number of jobs in non-ICT sectors are disrupted, digitalised and require the use of technologies.
Even before the COVID-19 pandemic, workplaces were starting to transform to leverage technology to enable virtual work arrangements. If implemented effectively, digital workplaces, including a hybrid of physical and virtual work arrangements, can benefit from increased productivity and improved business results.
But to realise the opportunities and benefits of the digital workplace, it will require the workforce to be proficient with new skills. This is not about developing deep tech skills but rather how to use with confidence new and ever-changing technologies to be able to do their work. The ability of the workforce to effectively use virtual and cloud technology, analytics and social and augmented reality tools will enable workers to do their work more effectively, faster and enable them to better communicate their ideas.
How will MCI support the uplifting of the broader workforce's digital capabilities?
With the pace of digitalisation, how we work, live and play is increasingly digital. Hence, trusted, secure and resilient digital architecture and technologies are essential for Singapore and Singaporeans. Digital connectivity plays a critical role. As we invest in future technologies for increased access and speed, we need to also invest to strengthen our digital infrastructures to address unexpected surges in demand against cyber security risks, as well as threats to the resilience of our digital infrastructures. Cyber security risks will compromise data security and threaten access and availability of services.
To sustain our digital economy and way of life, how can Singapore ensure safe and reliable use of such infrastructures and technologies? How are our digital infrastructures able to minimise the impact of disruptions to enable businesses to continue to operate and with more digital transactions and operations, business critical information and personal information are exchanged? How are we strengthening the security of our digital infrastructures in Singapore to protect our data?
The Chairman: Ms Tin Pei Ling, take both cuts.
Ms Tin Pei Ling: Chairman, Singapore ranks among the top countries for technology infrastructure and adoption. We have the highest average Internet connection speed in Asia and the number of 4G subscriptions in Singapore is almost one and a half times that of our population. Our Government continues to invest heavily and our 5G network deployment is well underway. But even as we do so, other countries are not idling. The current S‐curve is saturated and we need to get onto the next.
Hence, to build and sustain a vibrant Digital Economy, what are the next‐bound digital infrastructure developments that Singapore can expect?
Given the borderless nature of the digital space and digital threats, it is not enough to rely on domestic levers and programmes to protect Singapore's cyberspace.
Moreover, as critical infrastructures are very much interlinked and, as countries and markets become increasingly connected digitally, we have become highly vulnerable to disruptions and exploitations by malicious cyber activities. An attack in one area can have widespread ramifications.
Therefore, what is MCI doing in the international arena to address these challenges?
The Chairman: Mr Alex Yam. Not here. Minister Josephine Teo.
The Minister for Communications and Information (Mrs Josephine Teo): Mr Chairman, I thank Members for their questions and interest.
Earlier in the Committee of Supply (COS) debate, I updated Members about the progress of our Smart Nation initiative. Digital technologies are very much a part of our daily lives. They have brought day-to-day conveniences, new and improved jobs for our people, and growth opportunities for our businesses.
But a digital future can be daunting as well. Enterprises struggle to get the right technologies and talents. Workers worry about being replaced. Seniors may feel left out. Parents are concerned about the impact on their children.
MCI understands all these concerns. Our mission is to ensure our people can reap the benefits and rewards of technology, while safeguarding our safety and security. Our vision of Singapore's digital future is one that is economically vibrant, socially stable and cyber-secure.
MCI's theme for this year's Committee of Supply is \"Building a Vibrant and Secure Digital Future Together\".
The economic opportunities of the digital domain have brought about tremendous transformation and growth in Singapore. Since 2016, the Information and Communications Sector has grown by an average of 9.4%, well above the GDP growth rate. Across the economy, the number of ICT professionals has risen from around 180,000 in 2016 to 216,000 in 2020. The positive impact on the wider economy is evident. Senior Minister of State Janil Puthucheary and Minister of State Tan Kiat How will say more about these later.
This dynamism is equally evident in our society. Parliamentary Secretary Rahayu Mahzam will provide an update on our efforts to promote digital empowerment and wellness.
To harness the full potential of the digital domain, I will focus on two aspects of growing importance.
First, how we will enhance regulations in the digital domain to better protect ourselves and our loved ones, and to strengthen digital security and resilience. Second, how we will sustain and deepen engagement of every Singaporean in the digital era, to preserve and enhance social cohesion.
According to surveys carried out by MCI, 76% of Singaporeans said they feel comfortable using digital technologies, but only 40% have installed cybersecurity apps on their mobile phones. Among seniors aged 60 and above, 67% use instant messaging and over half search for information online. But only 40% could recognise and avoid phishing attempts.
Clearly, using technology alone is not enough; it is only half the story. We also need to better protect ourselves and our loved ones from its risks and threats.
MCI has three priorities to govern and secure our digital spaces.
The first is to better protect Singaporeans from harmful online content, especially the young and vulnerable. A recent Straits Times survey found that among children aged seven to nine, two-thirds use a smartphone daily, and, yet, a third of the parents do not know who their children interact with on social media.
Last year, a National Youth Council poll found that two-thirds of youths had experienced online harms, such as harassment and unwanted advances. Many developed distrust towards others and experienced stress and anxiety. Last year, a 10-year-old Italian girl lost her life while participating in an online \"Hanging Challenge\". Users were encouraged to choke themselves until they passed out while live-streaming on TikTok.
Harm can be caused not only to children. In 2019, social media companies struggled to remove reshares of the video showing a gunman firing on Muslims in a New Zealand mosque. In 2021, rioters who stormed Capitol Hill in the US used social media to organise and amplify their messages.
Governments worldwide have responded to online harms with new laws.
In 2017, Germany enacted its Network Enforcement Act, which requires platforms to act on unlawful content reported by users. Last July, Australia enacted an Online Safety Act, which introduces basic safety expectations for online service providers. The UK's draft Online Safety Bill will create a duty of care for online platforms towards their users, including requirements to take action against harmful content.
Dr Shahira Abdullah, Ms Tin Pei Ling, Dr Wan Rizal and Mr Don Wee are right to ask what more can be done in Singapore. Some measures are already in place.
Internet content providers must comply with the Internet Code of Practice. IMDA has powers to take down content that goes against \"public interest, public morality, public order and national harmony\". IMDA can also direct Internet Service Providers to block access to prohibited websites.
To manage children's access to websites and online services, IMDA requires Internet Service Providers to offer filtering services for parents to subscribe to.
To reduce exposure to age-inappropriate entertainment content, over-the-top and video-on-demand streaming services with content rated NC16 or higher must provide parental controls.
In a 2020 study of online safety for children in 30 countries, international think-tank DQ Institute ranked Singapore fourth. This gives us some comfort. But with the growing risks of online harms, we must step up efforts to keep online spaces safe, especially for our children.
Online platforms accessible by users in Singapore can and must take greater responsibility for user safety. They should endeavour to keep online spaces free from harmful content, including age-inappropriate content, such as violent and graphic content, and content that promotes sexual violence.
To raise the baseline standard for online safety, we plan to introduce Codes of Practice in three new areas.
The first area is child safety. It will require platforms to have robust systems in place to minimise exposure of children and young persons to harmful content. These include content filters for child accounts and mechanisms for parents to supervise and guide their children online.
The second area is user reporting. Last year, MCI formed the Sunlight Alliance for Action to tackle online harms. Members of the Alliance want Internet platforms to be diligent in assessing flagged content and remove harmful content without delay. But many social media platforms tell us that they cannot be fully aware of all the content that needs moderation. Much of it is user-generated and the quantity, voluminous.
User reporting is, therefore, an important way to close the awareness gap and promote prompt follow-up action. It will require platforms to set up easy-to-access mechanisms for users to report harmful content, to be responsive in evaluating and acting on these reports and to apprise their users in a timely manner of the actions taken. This will empower users to highlight harmful content they come across and prevent further spread.
The third area is platform accountability. It will require platforms to provide information on what they are doing to keep users safe. This includes the prevalence of harmful online content on their platforms, the user reports they have received and acted upon, and the systems and processes they have in place to address harmful online content. Users can then compare the approaches taken by platforms and make informed decisions about which to engage or disengage.
Similar to existing Codes of Practice administered by IMDA, these new Codes will have the force of law. They will require relevant online platforms to take more actions to create a safer online environment. We will study how the Codes can be effectively enforced, including through appropriate legislative updates.
We are also working with MHA to provide Singaporeans with more protection from illegal activities carried out online. This includes strengthening our levers to tackle online scams, as well as a broader suite of criminal activities taking place online, such as child pornography, terrorism and content that incites violence.
MCI has frequent engagements with our international and industry partners on issues relating to user safety. We will continue to consult extensively as we develop these new Codes.
But the evolving nature of the digital domain will always test the way we design our regulations, as pointed out by Ms Tin Pei Ling. We need to be clear and unambiguous to uphold security and trust, while not being overly prescriptive or stifling innovation. The scope of coverage must be wide enough without being excessively expansive. Simplicity must not be achieved at the expense of effectiveness.
In many ways, our regulatory approach for the digital domain will be similar to how technology services are launched these days, as Minimum Viable Products that will be improved iteratively. Put another way, perfect must not become the enemy of good. Instead, we must be prepared to regularly update these Codes, introduce new ones or streamline outdated ones, to deal with emerging issues and new technologies. Only by doing so can we harness the rich potential of exciting new technologies while guarding against their attendant risks.
Mr Chairman, another important priority of MCI is to strengthen our cybersecurity.
Mr Shawn Huang, Ms Hany Soh and Mr Xie Yao Quan asked what more we are doing to guard against cyber threats.
Since 2018, the Cybersecurity Act has provided a legal framework for CSA to oversee and maintain our national cybersecurity. The Act is currently focused on securing and protecting our Critical Information Infrastructure. These computer systems deliver essential services in the physical world, such as water and power.
Given the unfolding situation in Ukraine, we must be alive to the heightened risks. Singapore is gravely concerned over the cyberattacks against Ukraine's government websites and national banks. It illustrates how essential services can be disrupted remotely and quite easily. Singapore may be geographically distant from the theatre of action. But we cannot disregard the potential knock-on effects arriving on our shores. This is why, earlier this week, we advised local organisations to beef up their cybersecurity posture.
But even before the current situation in Ukraine, cyber threats have become more prevalent. Between 2020 and 2021, Singapore observed a 73% increase in reported data breach and ransomware incidents. As our digital realm expands, so, too, the threat surface.
The scale and impact of such attacks elsewhere have also become more serious. Attacks on systems that run physical infrastructure, such as energy grids and fuel pipelines, have real, tangible impact. The ransomware attack on US Colonial Pipeline last year, for example, caused fuel shortages across the US East Coast.
CSA has been reviewing the Cybersecurity Act. To strengthen our defences, we need to address three key questions.
First, how do we raise our situational awareness over Singapore's cyberspace?
Attackers are constantly on the lookout for serious vulnerabilities, like burglars looking for faulty locks and open windows. CSA must, in some way, do the same, but for a very different reason – so that we can advise people to fix their faulty locks and close their windows quickly. In cyberspace, this means to patch known software vulnerabilities, before malicious actors compromise our systems and steal our data.
Second, what should be considered as Critical Information Infrastructure, or CII? The Act currently recognises physical networks and systems as CII. With the shift to virtualisation, we must be able to recognise virtual assets as CII, too, such as systems hosted on the cloud. We need to ensure these virtual assets are properly protected, too, including those that may not be hosted in Singapore.
Third, how do we secure important digital infrastructure and services beyond CIIs?
Digital infrastructure and services are the backbone of our connectivity, computing and data storage needs. If disrupted or compromised, there could be serious knock-on effects. Imagine the chaos of not having access to emails, websites and apps.
We will consider how to apply a risk-based approach to protect these infrastructure and services and for them to recover quickly when attacked. We intend to complete this review by 2023, factoring in stakeholder and public consultations. The Act will be updated thereafter.
Mr Chairman, Mr Sharael Taha asked how we could enable businesses to innovate and grow while safeguarding consumers and their personal data. This is also a priority. Data is a critical resource for the digital economy.
In 2012, we enacted the Personal Data Protection Act, or PDPA. It strikes a careful balance between allowing organisations to harness data for innovation and growth and ensuring proper safeguards and accountability. In 2020, to adapt to the evolving digital landscape, we amended the PDPA. Among several amendments, we explicitly recognised business improvement as a legitimate use of data.
Early results from ongoing surveys are encouraging. Close to 90% of businesses agreed that the PDPA helped them prepare for the digital economy. More than 80% of consumers said that the PDPA helped them trust that their personal data is protected from misuse by organisations.
To uphold this trust, organisations must continue to take ownership and be held accountable, especially those that hold sizeable volumes of personal data. This is why the PDPA amendments in 2020 raised the maximum financial penalty for data breaches to $1 million, or 10% of local annual turnover, for organisations whose turnover exceeds $10 million, whichever is higher.
As a result of the pandemic-induced economic uncertainty, the implementation of the new penalties was temporarily held back. With sufficient lead time given to businesses, the penalties will now take effect from 1 October 2022.
We will also strengthen safeguards in other areas.
Currently, consumers and small businesses try to resolve contractual disputes with their telco, or media service providers, directly or through existing dispute resolution options. These can be costly and less consumer-friendly.
To supplement these options, IMDA will launch an Alternative Dispute Resolution (ADR) Scheme which is designed to be affordable and effective. When a case is brought to the ADR, it will be mandatory for the service providers to participate in the resolution process.
From April, this will provide a new helpful channel to resolve such disputes.
Mr Chairman, the three priorities I have described to govern and secure our digital spaces will form the building blocks of a vibrant and secure digital future.
But, Sir, technology has also changed the way we interact with one another, our communities and the world. The global media and information landscape have become more diffused, with competing narratives and echo chambers, and more news sources than anyone can keep up with.
Mr Don Wee rightly pointed out the need for trusted information sources and genuine engagement and a holistic approach to target the spread of misinformation. Indeed, these have been critical in combating the COVID-19 pandemic. We could not have handled a public health crisis if the public did not trust the health authorities or did not believe the information they were receiving. That is precisely why, from the very outset, we resolved to keep the public informed as fully and expeditiously as possible. We were determined to tell it as it is, never fudge or sugarcoat, never hide.
As the Prime Minister observed recently, if we had been a low-trust society, people would not have understood the need for safe management measures (SMMs) or abided by them. Our infection rates would be higher, far fewer people would be vaccinated, and many more people would have died. To preserve this trust, we must also have appropriate laws. For example, POFMA allowed us to take swift action on 20 occasions to curb COVID-19-related misinformation and prevent falsehoods from taking root.
[Deputy Speaker (Mr Christopher de Souza) in the Chair]
The COVID-19 pandemic has, therefore, underlined the crucial importance of retaining public trust and maintaining trusted sources of information.
MCI has done this by expanding and refreshing our communications channels and launching targeted campaigns like VacciNationSG to support our vaccination drive. Gov.sg's 10 platforms have close to two million more subscribers, compared to before the pandemic. We commissioned e-getai shows for seniors that received over 7.5 million views and catchy music videos with over nine million views online.
To better engage Singaporeans from all walks of life and understand their concerns, REACH expanded its digital outreach through e-Listening Points and virtual dialogues. In 2021, more than 70,000 Singaporeans contributed feedback to REACH, up from 59,000 in 2020.
Through these concerted efforts, polls show that three in four members of the public think that the Government has provided sufficient information on COVID-19 in recent months. Over 86% agreed that these messages helped in their decision to get vaccinated.
It is critical that we maintain these high levels of trust as we strive to bounce back from the COVID-19 pandemic and see through future crises as Singapore Together.
Our local media companies play an important role in this mission to inform and engage our citizens. They help to keep Singaporeans united by providing a Singapore lens through which citizens can make sense of global events; presenting an authoritative source of information that cuts through the noise of an online space chock-full of clickbait content and misinformation; and producing content in our official languages that celebrates our diverse culture and creates shared experiences for all Singaporeans.
Clearly, our local media companies serve a broader mission beyond commercial success. This is why the Government put our support behind SPH Media Trust. We have explained the background extensively during the Parliament Sittings in May 2021 and February 2022, but I will reiterate two key points.
First, our local media, like media outlets across the world, have seen their advertising and subscription revenue drastically reduced, buffeted by the rise of digital content platforms and new avenues for free content.
Second, while our local media enjoys good reach – today, Mediacorp and SPH Media reach 96% of Singaporeans – there are no easy answers on how they monetise this reach. We hope they can become self-sustaining, but it remains to be seen whether or when this can happen.
Mr Leong Mun Wai said SPH is Government-owned. That is incorrect. If it was, there would be no question today of public funding. He then asked if the SPH listed company could be made to contribute more to the new SPH Media Trust. The shareholders voted and agreed to an initial injection of $80 million in cash and $30 million worth of shares for SPH Media Trust.
If the restructuring proposal involved an even higher contribution, the shareholders could have walked away. The Company Limited by Guarantee (CLG) might not have been formed and the SPH media business could have remained on its trajectory of decline with scant hope for revival. In time to come, there would be nothing worthwhile to preserve.
Parliament has been fully briefed on the need for the restructuring and accepted that our local mainstream media is worthy of public funding.
When compared to the investments seen elsewhere in the world, the amount of funding to support our local media's transformation must be meaningful, in order for their efforts to have a chance to succeed. We cannot be half-hearted about it. I have also explained in detail how the Government will keep them accountable.
Let us now direct our attention on charting the way forward, such as those highlighted by Ms Hany Soh on how the media can better meet the needs of different demographics.
For example, Mediacorp is working with their news broadcasters, as well as clan associations to identify new talent to sustain dialect radio news broadcasts. Mediacorp produces an animation series on sustainability and environmental awareness, so that parents and their children know why this is important and how they can contribute to this national priority.
Left to the free market, such programmes are unlikely to be viable. I, therefore, urge Members to give our local media and journalists the fullest support, because they deserve it.
As the media industry adapts to the rise of digital, exciting new opportunities have also emerged. The global market for content is set to grow to more than $500 billion by 2025, half of which is in the Asia Pacific. Singapore is well-positioned to benefit because of our robust intellectual property and legal frameworks and our role as a connector between markets and cultures.
Global names like Walt Disney, iQIYI, WarnerMedia and Netflix already have a presence here, alongside homegrown players like Beach House Pictures, one of Asia's largest independent production companies.
We will continue to support these companies and our talents by: (a) exploring new partnerships with creator networks like Titan Digital Media, platforms like YouTube, TikTok and Twitch and online creators; (b) and partnering industry to improve content quality and better understand viewer preferences through data, artificial intelligence (AI) and virtual production.
These efforts will position us as a hub for content that is both \"Made in Singapore\" and \"Made with Singapore\". Mr Chairman, in Mandarin, please.
(In Mandarin): [Please refer to Vernacular Speech.] For many Singaporeans, Internet access has become a basic necessity, just like water and electricity.
In today's world, building a vibrant and secure digital future is critical for a country's survival and prosperity.
Singapore will continue to face unknown challenges, but we will not give up.
The Government is committed to helping every Singaporean succeed in the digital age through various measures.
SMEs at all stages of the digital journey will have the opportunity to progress and open up new frontiers, even as they face various pressures.
Workers in various sectors will have the opportunity to deepen their skills. Everyone will receive support to level up their digital skills and improve their livelihoods.
Seniors will have the opportunity to embrace lifelong learning, so that they master technology and maintain social ties.
Children will be better protected from undesirable content and online harms.
We are also working hard to strengthen the security of our digital infrastructure to boost our people's and businesses' confidence in the digital future.
With the concerted efforts of the Government, industry and Singaporeans, I am confident that Singapore will be able to build a secure and vibrant digital future; and that the Little Red Dot that we all love will continue to shine brightly on the international stage!
(In English): Mr Chairman, I have outlined MCI's priorities to govern and secure our digital space and to engage Singaporeans in a digitalised world. These are critical building blocks for Singapore's continued survival and success.
We look forward to partnering all Singaporeans to build a vibrant and secure digital future together! [Applause.]
The Chairman: Parliamentary Secretary Rahayu Mahzam.
The Parliamentary Secretary to the Minister for Communications and Information (Ms Rahayu Mahzam): Mr Chairman, let me first start by thanking Members for their questions and interest in MCI's work. I will elaborate on MCI's plans to build a society which continues to be inclusive, relevant and prepared for a digital future.
As Minister Josephine Teo mentioned, digital technologies are very much a part of our daily lives. Going digital has opened numerous possibilities – from facilitating daily interactions with family and friends to engendering new conveniences in many aspects of our lives. This is why digital access and meaningful engagement with technologies have become key to our quality of life today.
MCI will continue strengthening digital literacy and wellness, by working closely with community partners and volunteers to achieve three key goals. First, digital access and digital adoption for all; next, learning and mastery of digital skills, for all to seize new opportunities in the digital economy; and equally important, for our people to be equipped to recognise and respond to dangers online.
To ensure that Singaporeans, regardless of age, background or skill level are empowered to take charge of their own digital future, our first goal of digital access and adoption is a basic good that everyone should have, comprising Internet connectivity, tech devices and the ability to make use of them. I recognise that this is an issue close to the hearts of many Members, including Senior Parliamentary Secretary Baey Yam Keng, Mr Seah Kian Peng, Mr Sharael Taha and Ms Hany Soh.
Our broadband connectivity and basic devices are important to our people. Singapore is a highly-connected society – 98% of households have access to broadband and 99% of households with children under 15 have access to computers. Still, we recognise that every Singaporean must have this access.
Today, we have digital access programmes, such as NEU PC Plus and Home Access. Since 2020, these initiatives have assisted more than 34,000 low-income households with their digital access needs. Almost double the number, as compared to those assisted before the pandemic.
Moving forward, we are looking to enhance our digital access programmes to reach more low-income households and help them more conveniently receive affordable digital access. This will include working with MSF and social service organisations to engage and assist low-income households in their applications.
Having ensured that our people have access to the digital realm, we also look at addressing the needs of particular segments of individuals and businesses so that they can adopt – that is, to use and benefit from – digital.
Mr Sharael Taha highlighted that there may be some in the community who are less familiar with the digital space, including seniors and some hawkers.
At the height of the pandemic, the SG Digital Office (SDO) was set up to engage precisely these groups that may need additional and tailored support. Since 2020, SDO's digital ambassadors have trained more than 130,000 seniors to adopt basic digital skills like using smartphones and empowered 11,000 hawkers to adopt e-payment solutions.
Working together with community partners, the SDO will continue to keep its curriculum aligned with the digital landscape and remain a key touchpoint for Singaporeans needing digital assistance.
One good example is the SDO's collaboration with the Rahmatan Lil Alamin Foundation (RLAF). Today, RLAF partners 20 mosques to organise training sessions that equip seniors with applicable digital skills, such as staying connected through Facebook, WhatsApp and Zoom. The participants I spoke with at one of the sessions greatly appreciated the hands-on learning environment, in a safe space amongst friends. The Foundation intends to expand their outreach to more mosques and deepen learning for seniors who have already picked up basic smartphone skills.
RLAF also plans to work with other community partners, like Roses of Peace, to scale their efforts by supplementing volunteers, curating curriculum and launching a certification system to reward the seniors for their learning.
Many other partners have stepped forward to support our seniors. The combined efforts of SDO and our partners have resulted in 84% of seniors reporting that they own and use a smartphone in their daily lives.
Moving on to the second goal. MCI will continue to bridge digital knowledge and skills gaps, to help citizens keep pace with digitalisation. The digital landscape is continually changing, with new technologies and new apps.
We aim to imbue in Singaporeans, a sense of confidence to continue to adapt to this changing space, to actively participate in the digital domain and confidently take on new digital opportunities.
We plan to achieve this in two ways.
First, by harnessing the community's reach, energy and resources through the Digital for Life movement. Last year, the Digital for Life Fund was established to provide funding assistance for ground-up digital inclusion initiatives. Since then, 22 projects have been supported under the fund and are expected to benefit over 100,000 individuals across society.
One example is Byte.SG, which runs the \"Void Deck Technology Labs Initiative\". Through building skills and familiarity in science and technology topics, Byte.SG aims to bring technology awareness to children living in rental flats.
At one of Byte.SG's recent sessions, I saw how the team used augmented reality (AR) and interactive online tools to bring the underwater world to life. Not only were the children excited by this, I was also fascinated by the demonstration!
Supported by the Digital for Life Fund, Byte.SG will scale their initiative to locations, such as Nanyang, Bedok, Tanjong Pagar and Tampines, to help more children build digital confidence in a fun, empowering manner.
With our 3P partners, we will build on the Digital for Life movement and continue mobilising efforts on the ground by organising a series of events and activities in the coming months. This will culminate in a Digital for Life Festival, which will take place in the middle of the year.
Second, MCI is helping our people deepen digital skills through our libraries. Our libraries and archives are important learning marketplaces to pique Singaporeans' curiosity and inspire discovery, at every stage of our lives.
Despite pandemic-related restrictions, NLB's steady loan numbers and growing digital reach exemplify the key role that they play, with at least 64% of Singapore's residents visiting a library or accessing NLB's online content last year and over 98,000 individuals benefiting from NLB's digital readiness programmes so far.
In the face of digitalisation, our libraries must keep up with the times, to continue bringing citizens a wide array of learning opportunities, as pointed out by Ms Jessica Tan. To this end, our libraries will be refreshed under the Libraries and Archives Blueprint 2025, or LAB25.
Many Members have visited NLB's LAB25 showcase in the main lobby and I encourage the rest to drop by if you have not done so.
The showcase brings to life LAB25's four focus areas: building a learning marketplace, nurturing an informed citizenry, inspiring Singapore storytellers and being an equaliser in society.
To realise the LAB25 vision, NLB will launch \"ExperienceIT\", in collaboration with leaders in innovation and technology, such as Amazon Web Services, to drive interest and confidence in more in-depth learning about emerging technology and partner the community to bring more Singapore stories to NLB's network of libraries and make more collections accessible to the public.
A new Singapore Alcove showcasing Singapore stories and literature will be part of the Central Public Library after its revamp. It will be a \"home\" for the Singapore collection with regular programming by local authors, featuring immersive and experiential exhibits.
The opening of Punggol Regional Library later this year marks another step towards enabling, empowering and equalising digital access.
Building on NLB's ongoing efforts to ensure accessibility of its physical spaces, NLB will do more through a comprehensive suite of accessibility services for persons with disabilities, starting at Punggol Regional Library. This includes accessible collections comprising sensory and Braille books, sign language with text, and books that are useful for caregivers on social and life skills and assistive technologies, such as \"Immersive Readers\" to cater to Singaporeans with different language needs.
At the same time, NLB is continually working to improve the physical spaces in our libraries. The Central Public Library and Marine Parade Public Library will be revamped later this year.
To encourage Singaporeans to actively take charge of their learning, NLB will make more resources and content available to wider audiences.
Ms Jessica Tan will be pleased to note that NLB will roll out Nodes in everyday spaces, such as offices, food and beverage outlets and parks around Singapore to provide new entry points for citizens to access digital resources. As extensions of physical libraries, these Nodes will showcase NLB's digital collections, to interest Singaporeans to read and learn wherever they can.
Ms Hany Soh asked about our efforts to encourage young readers to master their mother tongue languages. NLB continues to source for, select and identify new avenues to grow their mother tongue language content. Over the past three years, NLB's mother tongue language collections for children have increased by 11%. Recently, NLB has begun offering award-winning English children's books translated into the vernacular. NLB also proactively encourages local publishers to publish their mother tongue language titles in both print and electronic formats to help widen access. Mr Chairman, allow me to deliver the next segment of my speech in Malay, please.
(In Malay): [Please refer to Vernacular Speech.] Digitalisation has impacted our lives in many ways and it has brought many opportunities and possibilities.
As digitalisation becomes more prevalent, it is also important that the Government scale up efforts to empower the community in terms of their digital capabilities and well-being.
Together with the 3P partners, the Government will provide digital access and enhance digital readiness, promote the learning and mastery of digital skills through our libraries, and equip our people, especially the vulnerable, to identify and deal with online risks and threats.
As we step up efforts to empower the community, I am heartened to see that many Singaporeans have taken the bold step to learn new digital skills and contribute to this development. One example is a network comprising more than 300 individuals. They share career opportunities and workshops that are available in the technology sector.
In fact, some individuals in this network came from non-technology sectors. For example, one is from the healthcare administration sector and has now become a technology developer of augmented reality (AR) and virtual reality (VR). This transition took place after they witnessed how the pandemic had affected hands-on learning conducted physically and they began to realise the value of applying digital technology.
I had the opportunity to speak to one of the network members, Mr Mohd Afiq. He is the founder of Playtours, an online tool that allows users to create unique and meaningful virtual experiences. These include \"escape room\" games and real-time multi-player games.
Developing a product from scratch is certainly not an easy task. However, Afiq is confident of the value that \"Playtours\" will bring to today's digital world and this has encouraged him to persevere and carry on in order to develop his business.
It is clear that individuals like Afiq serve as an inspiration to all of us. Let us be inspired as well, so that we can, together, seize the digitalisation opportunities that await us.
(In English): Mr Chairman, the third key goal that MCI is working towards is to ensure that our people are equipped to recognise and respond to dangers online.
The digital way of life often remains challenging, novel and unfamiliar to many of us. Recent events, such as phishing scams, may have also caused us to be wary of going digital. But we cannot let these fears hold us back from unlocking new opportunities. Rather, we must actively equip ourselves with the relevant knowledge and skills to embrace technological advancements, with the ability to recognise and respond to the risks in the digital domain.
I agree with Parliamentary Secretary Eric Chua, Dr Shahira Abdullah, Ms Tin Pei Ling, Dr Wan Rizal and Mr Don Wee that it is ever more important to ensure online safety for our people.
Indeed, as more of our interactions and activities shift online, individuals and businesses will inevitably be exposed to digital risks, online harms and potentially unhealthy addictions. Parents today are concerned that easy access to Internet among our youths has made widespread dissemination of harmful and inappropriate content, such as pornography, quick and effortless.
In her speech, Minister Josephine Teo shared that MCI will be introducing new Codes of Practice to enhance online user safety. Legislation provides a critical safety net. But we all have a role to play, too. Beyond being digitally \"book smart\", we must also build \"street smarts\" to identify and avoid new risks in the online world.
To gain more in-depth understanding of our citizens' digital readiness, MCI is refining metrics and indicators to be tracked in the Digital Readiness Survey.
In addition to existing measurements of digital adoption and usage, we intend to better understand the extent to which Singaporeans are able to perform essential digital tasks. We are also looking to understand citizens' digital habits and gaps between attitudes and behaviours. This will inform the development of more targeted interventions to improve digital adoption and address the needs of vulnerable segments.
New online harms are growing increasingly complex. Finding solutions to help users protect themselves from harmful online content requires the expertise of diverse stakeholders, such as legal professionals, tech specialists, regulators, educators and community partners.
MCI is, therefore, working closely with our community partners to promote safe, responsible and positive use of technology.
In conjunction with Safer Internet Day on 8 February, the Media Literacy Council (MLC) partnered Apple Singapore to organise a cyber wellness webinar for Primary school teachers and launched a fun and relatable video-making challenge for students to encourage the sharing of cyber wellness messages.
Beyond this webinar, MLC has also produced resources to help individuals avoid falling victim to technology-facilitated harms, such as scams, sexual grooming, pornography and online harassment. The council also promotes digital literacy resources to educate the public on being more discerning and empathetic online to create a safer, smarter and kinder Internet for all.
In September last year, TOUCH Cyber Wellness launched a programme entitled \"e-Conversations for the Family\", with a toolkit to guide parents in having conversations with their children about pornography and its dangers.
MCI also launched Sunlight AfA, which I co-chair with Senior Minister of State Sim Ann. The AfA aims to raise awareness of online sexual harassment and empower victims to address and deal with such incidents.
I thank Mr Fahmi Aliman for recognising the positive impact of Sunlight AfA. Since its launch, the AfA has been studying the incidence of online harms in Singapore and how they impact individuals, especially women and girls. Key insights will be released in due course. The AfA has also partnered other stakeholders for greater outreach. This includes a collaboration with DBS and the Singapore Judiciary on a community hackathon to generate solutions on creating safer and kinder online spaces, and the recently concluded Youth Action Challenge, where the AfA supported the mental well-being track. We also marked Safer Internet Day with a webinar, where a panel of professionals discussed how parents and families can help our children and young stay safe online.
Moving ahead, the AfA will continue engaging and equipping parents and youths to support those who may be experiencing online harm. This includes a second online harms webinar which will take place in the coming months, as well as a website containing updates on the AfA's events and resources to address online dangers and risks.
We are especially grateful for the support of our 48 Alliance members, some of whom are keen to run initiatives to tackle online harms in the longer term. MCI will continue to work with these partners to tackle online harms. We welcome more stakeholders to join us in ensuring that all users are empowered to navigate the digital future with confidence.
Just as we have built one of the world's safest, cleanest and most liveable cities, all of us have a role to play in shaping Singapore's online space. We must preserve positive and enriching digital experiences for those around us by being respectful users online.
In closing, I would like to put these various efforts in context. According to MCI's 2021 Digital Readiness Survey, 76% of Singaporeans feel comfortable using digital technologies, while 80% of Singaporeans acknowledge that digital technologies have made their lives easier. This is encouraging, but we can and will do more.
We stand ready to work with individuals, companies and partners in the people sector to realise the vision of a digitally-ready and inclusive society. This will allow all Singaporeans to partake in exciting opportunities with a spirit of discovery and growth in our shared digital future.
The Chairman: Minister of State Tan Kiat How.
The Minister of State for Communications and Information (Mr Tan Kiat How): Mr Chairman, Ms Tin Pei Ling and Ms Jessica Tan spoke about the opportunities in our Digital Economy. Indeed, we saw the benefits of digitalisation, particularly over the last couple of years where firms and our workforce had to deal with COVID-19.
I am heartened that many firms are embracing digital technology. IMDA's Digital Acceleration Index, an annual survey of more than 2,000 firms across 23 sectors, showed that digitalisation is picking up pace across our economy. More than 80,000 firms have benefited from the SMEs Go Digital programme since 2017, including a quarter of them coming on board in 2021 alone. Three in four firms now adopt at least one digital solution.
And as we emerge from COVID-19, we will sustain this momentum in two ways. First, providing businesses, particularly our Small and Medium Enterprises (SMEs), with the tools and support to transform digitally. Second, by nurturing a future-ready workforce with the qualifications and skills to get into good jobs in the tech sector and progress well in their careers.
Let me elaborate on the first prong.
Our firms want to adopt digital and transform. This is the consistent feedback when we engage industry associations and firms, as well as from various surveys that we conduct. However, as Mr Christopher de Souza pointed out, SMEs face practical issues in raising their digital game. SMEs share with us their difficulty in building up their in-house IT team with the right experience and expertise; in helping them select solutions and vendors that meet their needs, while putting in place system and processes to protect their clients and operations from cyber threats and data breaches. I empathise with these sentiments.
We must harness network effects to fully benefit from opportunities in the digital economy. SMEs, which comprise more than nine in 10 of our enterprises, account for almost half of our GDP and hires seven in 10 of our local workforce, are an important constituent in our national digital push.
Our approach is threefold. First, enabling secure and seamless digital transactions across the economy. Second, supporting digital transformation of our industry sectors; and third, equipping firms with resources and tools to facilitate digitalisation.
First, on economy-wide digital enablers, or digital utilities. Just like water or electricity in the analogue world, we can envisage a foundational set of systems or standards to facilitate seamless and secure transactions in the Digital Economy. E-invoicing and e-payment are two examples. To Ms Jessica Tan's question, more than 50,000 businesses have adopted InvoiceNow since it was launched in 2019, and more than 90% of our businesses have adopted PayNow. We will continue to put in place such digital utilities to support our businesses as they shift their operations and transactions online.
Second, we will support the transformation of our industry sectors, building on these digital utilities. We recognise that each sector faces unique challenges and operating contexts. We have launched Industry Digital Plans (IDP) and these IDPs provide firms with a step-by-step guide on digital solutions and skills training curated for each stage of their growth, tailored to their sector. Since 2017, we have launched 20 IDPs to guide digitalisation across sectors as diverse as accountancy, logistics and security. We will expand the coverage of the IDPs, and the next IDP to be launched will be for the legal industry. We will continue to refresh these IDPs to incorporate new digital utilities, relevant technological advances and best practices.
Let me next touch on how individual SMEs can benefit.
Last year, we announced two schemes – CTO-as-a-Service and the Digital Leaders' Programme – to empower businesses on their digitalisation journeys. This year, our enhancements will help SMEs raise their digital maturity, reach markets abroad and retain trust in the digital marketplace.
On digital maturity, we will raise SMEs' digital maturity with advanced technological capabilities that are curated to meet their sectors' needs.
Launched in 2020, the Advanced Digital Solutions, or ADS scheme, helps SMEs access advanced technology and integrated digital solutions, such as robotics and aggregated data analysis. We will grow our list of 30 solutions, with an emphasis on AI-enabled and cloud-based solutions.
We will also expand our Grow Digital scheme. Through the Grow Digital programme, we have worked with Enterprise Singapore to curate a group of e-commerce platforms that can help our firms reach international markets. Since launching in 2020, Grow Digital has helped more than 2,500 firms access markets in 10 countries, while building capabilities in digital marketing, business matching and door-to-door fulfilment. This year, Grow Digital will bring more firms to global markets through a broader group of e-commerce platforms.
Ms Hany Soh, Mr Xie Yao Quan and Mr Shawn Huang spoke about helping businesses protect themselves against cyberattacks and data breaches. We will launch the Cyber Trustmark and Cyber Essentials mark, and the Data Protection Essentials Programme. Obtaining the trustmarks would give businesses and their customers the confidence that certain cybersecurity and data protection standards have been met. I encourage businesses to view these trustmarks as investments and a competitive advantage.
Our Digital Economy efforts are powered by the Infocomm sector. Last year, the sector contributed $28.4 billion to the economy, accounting for 5.6% of our GDP and grew by 12.2%, far outpacing other sectors.
Ms Tin Pei Ling and Mr Seah Kian Peng spoke about helping our people seize opportunities in this digital economy. Indeed, the growing and vibrant tech sector creates many good jobs and opens up many exciting opportunities for Singaporeans. Our Digital Economy employs around 216,000 ICT professionals, with half of them in the ICT sector and the other half supporting digital transformation in non-ICT sectors like finance, manufacturing and retail.
Around 10,000 more ICT professionals have been added each year in recent years. Yet, 19,000 tech roles remain unfilled across the economy, particularly in roles like software engineering and development, but also across the entire tech value chain, from deep technical skills like AI and cybersecurity, to innovation-oriented roles in product development, and applied business roles like cloud migration and data analytics. Our priority is to nurture a strong pipeline of local tech talent, including fresh graduates and mid-career workers, while ensuring our tech workforce remains relevant and competitive in this fast-changing digital space. In the next three years, around 23,000 local students will graduate from our IHLs in Information and Digital Technologies, or IDT, courses.
In this regard, let me outline two important moves we are making.
First, we will strengthen our pipeline of ICT graduates from our Universities. The number of local IDT degree places has risen four-fold from 800 in 2010, to 3,300 in 2021. As a proportion of all degree places, the number of IDT places increased from 7% in 2010 to 18% in 2021, close to one in five. We will also establish new programmes and specialisations to support emerging tech needs in different sectors. An example is the new Bachelor of Science in Applied Computing, with specialisation in fintech that will be launched this year by the Singapore Institute of Technology, in partnership with IMDA and MAS, and supported by financial institutions, including AIA and Standard Chartered Bank. We look forward to working with other sector leads on different training modalities for specific skills needs for their sectors.
Second, we will help our Polytechnic and ITE graduates enter tech roles through more structured pathways. Some Polytechnics and ITE IDT graduates shared with us that they cannot find suitable entry-level roles in their areas of study, while others encountered employers who preferred University graduates, even though our Polytechnic and ITE graduates are capable of doing these jobs.
Structured support and clearly defined scaffolding in their career pathways can make a world of difference. I recently met Mr Muhammad Syurhan Bin Ja'afar, who graduated from our Work-Study Diploma programme in Data Centre Infrastructure & Operation. Syurhan graduated from ITE with a Nitec in ICT (Cloud Computing) and gained first-hand experience of the tech sector through his internship at NCS. However, his family's financial situation meant that he had to forgo his plans to take up a diploma. It was only later, with the encouragement of his Class Advisor, that he applied for the Work-Study programme and gained a place with the sponsorship of Racks Central Data Centre. Syurhan shared with me that his company's support and a structured career pathway gave him the confidence to complete the course.
To help others like Syurhan pursue their passion and realise their ambitions, we will put in place a structured end-to-end approach to better support our Polytechnic and ITE students, starting with 1,000 places over the next three years. We will establish a TechSkills Accelerator (TeSA) for ITE and Polytechnics (TIP) Alliance, comprising leading global tech companies, leading companies here and major hirers to galvanise industry support for this effort.
We will enhance the quality of internship opportunities for Polytechnic and ITE students, to apply their knowledge outside the classroom. After graduation, they will be able to take up apprenticeships at participating companies under place-and-train programmes, to learn the ropes of the ICT roles. Participating companies will also establish skills-oriented training plans and pathways for tech roles for these graduates, including certifications and specialist training. These graduates interested in further studies will be supported through Work-Study Diploma or Degree programmes, spanning growth areas like AI, Cloud and cybersecurity.
I am heartened that companies like Accenture, GovTech, IBM, NCS and PSA Corporation have made significant commitments to provide internship, apprenticeship or placement opportunities and I urge more industry leaders to join this meaningful effort.
In addition to fresh graduates, many enter the industry as mid-career workers, such as through the TeSA initiative. Many joining the sector aim to progress in their careers, taking on higher value roles, such as product managers, software engineers or solution architects. We want to support these aspirations of our tech professionals.
We will partner industry leaders like Google, Microsoft and Grab, as well as large end-user companies like DBS, to groom product engineering talents for these roles. Those on this specialist track will be trained in advanced technical skillsets like software and application development, data analytics, AI and Cloud, through both instructor-led and hands-on programmes. These tech professionals can look forward to taking on senior technical roles in their companies over time.
IMDA will also launch the ICT Jobs Transformation Map (JTM) later this year, to help employers and employees across the ICT sector identify areas of high impact and the relevant reskilling or upskilling opportunities and training as needed.
Mr Chairman, in closing, our moves to help businesses thrive in a digital economy and nurture a future-ready digital workforce will help us ensure that the digital wave is one that lifts all boats. I look forward to your continued support as we journey towards our shared digital future.
The Chairman: Senior Minister of State Janil Puthucheary.
The Senior Minister of State for Communications and Information (Dr Janil Puthucheary): Sir, I thank the various Members for their cuts and questions and hope to address several of them in my response. My colleagues have shared different facets of MCI's efforts to ready our ecosystems, businesses and people for a digital future.
Minister Josephine Teo spoke about how MCI will enhance digital regulations for digital safety, security and resilience; and deepen engagement with Singaporeans to strengthen social cohesion. Parliamentary Secretary Rahayu Mahzam shared about our continuing work to build a digitally-ready and inclusive society, such as through NLB's Libraries and Archives Blueprint 2025, which is showcased at the main lobby of Parliament. Minister of State Tan Kiat How spoke about our efforts to equip our workforce and enterprises with capabilities to seize opportunities in a digital and post-COVID-19 economy.
I will focus on three areas where we are investing for the future, to mark Singapore's place in the digital world. First, building digital infrastructure to meet our future needs. Second, pushing technological boundaries with leading edge innovation and research. And third, fostering international partnerships to advance the digital economy and strengthen digital security beyond our shores.
Mr Shawn Huang and Ms Tin Pei Ling asked about MCI's plans to ready our infrastructure for the next wave of digitalisation. The volume and complexity of digital traffic continue to grow very, very quickly. We will increasingly rely on data and data-powered services, especially as cloud services and the Internet of Things (IoT) become more commonplace. By 2025, the estimated amount of data generated globally is about 463 exabytes. That means 463 billion gigabytes, which is equivalent roughly 60 hours of Netflix movies per person per day. How will we upgrade our digital infrastructure for a data age, so that it is fit-for-purpose and continues to support our needs?
To begin with, we must pay attention to our domestic telecommunications infrastructure. These form our connectivity backbone. Wireless and wired network components, such as base stations and fibre optic cables, allow Internet traffic to flow seamlessly in large volumes, providing a high-speed service to every corner of Singapore.
We have continued to upgrade our local telecommunications capability, for example, through the shift to 5G. 5G technology enables unprecedented speeds and reduces the latency. So, more data can be transferred at higher speeds. 5G networks are also more responsive and better able to cope with surges in data traffic.
Here in Singapore, we continue to be at the forefront of 5G deployment. Our telcos have stated that they have achieved 50% nationwide outdoor coverage at the start of 2022, ahead of their end-2022 target. And we are on track for nationwide 5G coverage in Singapore by 2025.
The characteristics and advantages of 5G allow for new use cases, such as in advanced manufacturing. The Infocomm Media Development Authority (IMDA) has been partnering IBM, Samsung and M1 in Singapore's first 5G Industry 4.0 trial. The trial developed a 5G-enabled augmented reality (AR) solution in the form of AI-powered \"Smart Glasses\". These \"Smart Glasses\" assist factory operators in assembly and inspection, and also improve training efficiency for new hires by 50%. They will be deployed across IBM's global manufacturing sites from the second half of this year.
Traditionally, the factory operators manually detect defects. This is a time-consuming process. It relies on the human eye and it is subject to fatigue. This 5G-enabled solution mitigates this. It overlays images and text onto physical objects, allowing inspectors to identify defects in real time, augmented by this technological solution. It also allows the operator to take photos and use deep learning algorithms that identify images to quickly detect factory defects.
Apart from these wireless networks, we will also upgrade our wired networks. Already, today, according to Internet metrics company Ookla, Singapore has one of the fastest broadband speeds in the world and we can look forward to more.
As mentioned by Minister Lawrence Wong in the Budget speech, we will invest in developing infrastructure to deliver broadband speeds around 10 times faster, compared to today, unlocking new possibilities for digital experiences and tools.
The second category of infrastructure connects us to the world. This includes satellites and subsea cables. These provide critical connectivity with international partners and allow us to be part of international data flows and digital trade.
Singapore is already a digital connectivity hub and a preferred landing site for global submarine cable operators, due to our stable governance and advanced economy. This connectivity enables the development of many different products and services and supports many businesses that choose to locate important operations here in Singapore.
It also allows our thriving research community to access computing resources from around the world and for our data centres and supercomputers to serve international partners. We will continue to secure new landings to strengthen our international connectivity. For example, Singapore-based maritime company, BW Group, plans to develop a new submarine cable pathway connecting Singapore to the US via Indonesia, Australia and New Zealand.
The third category of infrastructure are data centres. These are vital nodes in the flow of digital traffic. Data centres power many applications and services for businesses and everyday life, from complex data management to e-commerce transactions. However, the data centres are intensive users of water and electricity. Given our resource constraints, we need to manage the development of data centres sustainably.
IMDA and the Economic Development Board (EDB) will pilot a Call for Application to facilitate the calibrated growth of data centres that possess the best-in-class techniques, technologies and practices for energy efficiency and decarbonisation. Singapore is committed to fulfilling our environmental obligations under the 2015 Paris Agreement. Greener data centres will allow us to do so while, at the same time, supporting the growing needs of our digital economy. This Call for Application will be launched by the second quarter of 2022.
This comprehensive digital infrastructure, the various components that I have described, makes possible the provision of digital utilities. These are the services that ride atop the connectivity layers that have become essential and commonplace, allowing people and businesses to use digital services and transact seamlessly and safely. Minister of State Tan Kiat How shared examples earlier, such as PayNow and InvoiceNow. Other examples include the National Digital Identity, Singpass and TradeTrust. We will continue to invest in other essential digital tools and services and develop them as digital utilities.
Another digital utility is the Singapore Trade Data Exchange (SGTraDex). Today, data is fragmented across the global supply chain ecosystem. With SGTraDex, supply chain ecosystem partners, such as shippers and logistics providers, are able to share trade data in a seamless and secure manner. Ms Jessica Tan asked about SGTraDex's progress. It has been good with many companies across various sectors coming on board. The Government and the Alliance for Action (AfA) for supply chain digitalisation are working with these companies on a Minimum Viable Product to allow more extensive data sharing and alive business environment, which will be launched later this year.
Our advanced infrastructure and highly used digital utilities can be vulnerable to attacks or risks of failure. I agree wholeheartedly with Ms Jessica Tan that we should ensure that our infrastructure is secure and resilient to address evolving threats and risks.
Minister Josephine Teo had earlier shared on MCI's efforts to secure important digital infrastructure and services through our Cybersecurity Act. MCI also adopts design principles to embed security features and operational practices within the system architecture, rather than to add these at a later stage.
Sir, Mr Christopher de Souza, Mr Seah Kian Peng and Mr Xie Yao Quan asked about the Government's investments in new digital technologies. As part of the $25 billion Research, Innovation and Enterprise (RIE) 2025 Plan, our plans for the Smart Nation and Digital Economy (SNDE) domain build on past investments to drive research in digital technologies with transformative potential.
One such technology is quantum communication, which promises to revolutionise the security of our information and infrastructure. Today's encryption methods are mathematics-based. Hackers leverage sophisticated techniques and powerful computing hardware to \"crack the code\". As quantum computers mature, we can expect that adversaries will eventually be able to decrypt data and penetrate systems secured with today's technology simply by applying more and more computing power.
Quantum communication is secured by physics-based methods, such as quantum key distribution (QKD). Potentially, this could help future-proof the security of our databases, critical systems and communications. This technique allows the creation of paired secret cryptographic keys, which are only held by the sender and the authorised receiver, anyone trying to intercept or copy the keys in between would introduce a detectable anomaly and this signals that the keys have been tampered with and then knowing that we can retransmit a new secure key in real time.
If effective, this technique means that no amount of computational power would be able to break quantum-secured communications. It sounds a bit like science fiction, but quantum technologies have been developed in Singapore for over a decade. Since the Centre for Quantum Technologies (CQT) was established at the National University of Singapore (NUS) in 2007, its researchers have contributed to 5,000 scientific papers, participated in projects supported by about $100 million in external grants and established several startups here.
The Government continues to work closely with CQT to deploy quantum technologies in real-world applications. Two weeks ago, the National Quantum-Safe Network was announced. It is a public-private consortium that will deploy QKD-enabled wireless networks across Singapore.
One of the spin-offs from CQT, SpeQtral, is commercialising a satellite that will allow for secure communication based on QKD technology, with support from EDB. When the satellite is launched and deployed into orbit, SpeQtral will be one of the first companies in the world to demonstrate a full commercial-scale solution.
I met the CEO, Lum Chune Yang, and his team last month and was very impressed by how they have followed through from their pioneering research and experiments, and together with the many commercial partners they have already lined up, such as Toshiba, to then bring this to life and come up with a commercially deployable solution.
Quantum technology is just one area of future communications which we are developing. IMDA and the National Research Foundation are investing $70 million in our first national Future Communications Research and Development Programme (FCP). This programme will accelerate the next bound of communications and connectivity research, such as in 6G.
The international research community recognises Singapore's strong innovation capabilities. As part of FCP, we signed a memorandum of understanding (MOU) with 6G Flagship in July last year. This is the world's first and leading 6G research and development programme funded by the Academy of Finland. Through this, parties will deepen research and development collaboration on 6G, such as through organising workshops, and conducting joint research and educational projects between the researchers of both institutes.
And just two months ago, we signed another MOU with the Korean Institute of Communications and Information Sciences in the Republic of Korea.
Other than investing in research, we are also strengthening the translation of research, so that companies and citizens can reap tangible benefits from these technologies today.
The Cybersecurity Industry Call for Innovation by the Cybersecurity Agency of Singapore (CSA) enables companies to solve cybersecurity problem statements with innovative solutions.
Under this call, a local cybersecurity company, Flexxon, developed X-PHY in 2021. It is the world's first solid state drive (SSD) enabled with an AI cybersecurity defence. The drive is powered by an AI co-processor and a special firmware that provides real-time data protection against software-based attacks, such as malware, ransomware and viruses, and physical attacks, such as unauthorised cloning.
The X-PHY SSD continuously monitors itself without reading the stored files. When the drive detects tampering, it locks itself and alerts the owner. This user-friendly solution does not require complex configuration or constant updating. Lenovo has already teamed up with Flexxon to use these SSDs in some of its laptops.
Sir, I have elaborated on Singapore's investment in future-ready digital infrastructure and how we are breaking new ground with innovation. Let me turn now to how we are building on these efforts, together with international partners, for a secure and vibrant digital economy connected to the world.
Ms Tin Pei Ling and Mr Alex Yam were interested in the new global opportunities as well as challenges and risks in the digital domain. Issues such as cybersecurity, data protection and AI ethics, are complex issues that transcend geographical borders. We cannot solve these problems alone.
We need to build an international consensus on rules, norms and standards, so that the digital ecosystem is sustainable, interoperable and protected against both accidental and intended harms.
Members would be familiar with our Digital Economy Agreements (DEAs) that exemplify this approach. Singapore has signed DEAs with four countries, most recently, with the UK last month. We have also substantially concluded a DEA with the Republic of Korea in December 2021.
Mr Seah Kian Peng will be glad to know that Singapore's work with international stakeholders has been impactful and builds our global brand to be a trusted digital hub.
Internationally, we have made significant contributions to the cybersecurity community as well. We have been able to do so by drawing on our operational capabilities, technical expertise and innovation in cybersecurity and bringing these together with balanced policy and regulatory perspectives.
Critical to these efforts are the skilled and experienced cybersecurity personnel that represent us at many international discussions. Cybersecurity standards are one area where we are pushing ahead.
CSA launched the Cybersecurity Labelling Scheme (CLS) for consumer IoT devices in October 2020, the first of its kind in the Asia Pacific at that time. It has garnered interest amongst international partners, leading to an MOU with Finland for mutual recognition of cybersecurity labels.
CSA and the Singapore Standards Council have also launched the first national standard, the Technical Reference (TR) 91, on Cybersecurity Labelling for consumer IoT. This can be adopted across the board by manufacturers, developers, testing bodies and suppliers of consumer IoT devices.
Since December 2021, Singapore has assumed the chairmanship of the United Nations Open-Ended Working Group (OEWG) on Security of and in the Use of Information and Communications Technologies (ICTs). This is the main international platform charged with international cybersecurity policy discussions. We are facilitating discussions to achieve consensus on norms, rules and principles to advance a secure and interoperable cyberspace and encourage responsible state behaviour. Such efforts are all the more crucial, given the circumstances around the world.
Sir, I beg your indulgence as I move towards the close of my speech.
The Chairman: We are ahead of time; so, you can have the time.
Dr Janil Puthucheary: Thank you, Sir. Singapore has also made strong efforts to develop the interconnected data and AI ecosystems, striking a balance between data protection, data security and data innovation.
We took the lead to develop the ASEAN Model Contractual Clauses for Cross Border Data Flows (MCCs) to enable enterprises to transfer personal data for business transactions across borders with regulatory certainty. We are pushing to expand the recognition of these clauses in jurisdictions outside of ASEAN.
In parallel, we are working to advance responsible AI deployment globally. Building on Singapore's Model AI Governance Framework, we are partnering countries, such as the US and the UK to learn from international best practices and align AI governance principles.
We are also working with ASEAN member states to coordinate the development of an ASEAN Guide on AI Governance and Ethics. This will provide practical and implementable guidance to deploy AI responsibly and foster consumer confidence to use AI-enabled services in the region more widely.
Sir, I would like to conclude by emphasising the Government's commitment to building a digital future for Singapore that is economically vibrant, socially stable, safe and secure.
Harnessing opportunities in the digital space while managing the risks will be critical to our success and our survival. The Government and, through our partnerships, is putting in place various building blocks, with stakeholders, including digital capabilities, infrastructure, regulations, security and investments, for the future.
At the heart of our efforts lies our people, their potential and well-being. We have to aim for all Singaporeans to be empowered and to find fulfilment through their participation in the digital domain. And, together, we will build a vibrant and secure digital future. [Applause.]
The Chairman: We have some time for clarifications. Ms Tin Pei Ling.
Ms Tin Pei Ling: I have three clarifications. First, I would like to ask what are the types of harms to children that the new code of practice will be addressing. Second, will views from parents and the community be sought so that the types of harms that children are exposed to can also be addressed in the new code? And third, an update on girls and women in technology, their progress and representation from schools, within the industry and even within the IMDA programmes. Can there be an update on how we have progressed and how we have fared so far?
Mrs Josephine Teo: Mr Chairman, I thank Ms Tin Pei Ling for her three questions. I will take the first two questions, not because the third one is unimportant – it is very close to my heart. But today, for the purposes of the Committee of Supply debate, we would like to discuss the question of women in tech, together with how we are developing tech talent in general. So, Minister of State Tan Kiat How will address that.
On the question of what kinds of harm we are seeking to include in the codes, our aim is to ensure that our children can enjoy physical safety and emotional well-being. And so, the question is, online – what harms them? Or what could lead to them to be harmed, physically and emotionally? And parents have told us it is cyberbullying, sexual harassment, sexual grooming and exposure to inappropriate content – and there are three main categories: sex, violence and self-harm or other dangerous acts.
These harms are quite universal. Parents all around the world will agree that they do not wish their children to be exposed to them. So, I think they could be and should be included in the codes that we are planning.
But there are also differences that depend on societal norms as well as family norms. For example, below what age are certain types of content considered to be inappropriate? This would vary. Then there is, for example, the question of drug use. Some societies will find this more acceptable than others and we will have to cater for that.
Because of these differences, in particular, I see great value in us involving parents as well as the broader community in developing and designing the codes in the first instance and, in future, in updating the codes so that they stay relevant.
MCI has some experience in dealing with this and we can take, broadly, the same approach that we take with other advisory councils that we have consulted on a regular basis for films, for publications.
At the same time, we will continue to provide support to parents to help them protect their children online. This would be through the programmes that the Media Literacy Council, as well as the NLB, put forward and these were described by Parliamentary Secretary Rahayu Mahzam earlier.
The Chairman: Minister of State Tan Kiat How.
Mr Tan Kiat How: Mr Chairman, I thank Ms Tin Pei Ling for a very important question, about women and girls in the tech sector.
Just to share some statistics and some updates, close to three in 10 of our students in our IDT courses, which I mentioned earlier, in our IHLs are female. And according to a Boston Consulting Group (BCG) study, four in 10 of our tech professionals are women. This is well above the global average and we are very proud of it.
The SG Women in Tech movement, which was mentioned by Ms Tin Pei Ling, was started and driven by IMDA in 2019. It is supported by the community and, importantly, our industry partners. Over the last few years, they have made very good progress in terms of raising the awareness that diversity and inclusion are better for business. They have done many programmes to raise awareness and try and develop more girls and women in technology and established Singapore as a global leader in creating a supportive environment for women in tech.
Just to share some statistics with Ms Tin, since its launch in October 2019, the programme has reached out to more than 120,000 people through its initiatives and connecting over 115,000 girls in schools with female tech leaders through a series of Students Ask videos. It brought together over 600 women in the tech workforce for networking and mentoring events and, having received over 1,400 nominations for the Singapore 100 Women in Tech List in 2020 and 2021, they have identified the women leaders in our technology space who are role models and mentors.
To a point that Ms Tin asked earlier in her cut, which I did not manage to reply to fully, I will just provide updates on Mentor Connect, which is a cross-company mentorship programme in which women professionals and leaders in those companies mentor students and other girls and women who are interested in a career in technology. In fact, they have done well and reached out to many more schools. Many more companies are coming on board. I encourage women tech leaders and companies to join us in this effort.
Mr Sharael Taha: Chairman, I thank Minister Josephine Teo, Senior Minister of State Janil Puthucheary, Minister of State Tan Kiat How and Parliamentary Secretary Rahayu Mahzam for their replies. AI is an area with great transformative potential, fundamentally changing how our economy and society function, including jobs. What are the Government's plans to enable businesses and individuals to tap on the opportunities brought about by AI? And as AI deployment becomes more pervasive, how will the Government ensure responsible deployment of AI without stifling innovation?
Mrs Josephine Teo: Mr Chairman, Mr Sharael Taha has asked a really important question on AI and, for a topic of this nature, we can actually have a full seminar on it and we would not run out of things to talk about. But in the time that we have, perhaps let me just share with him some of the thinking that we have in the Government.
The Government recognises the rich potential of emerging technologies, like AI, to generate economic gains as well as to improve the lives of our people. This is why, in 2019, we launched the National AI Strategy and articulated the vision for Singapore to be a leader in developing and deploying scalable, impactful AI solutions in key sectors that are of high value and relevance to our businesses and our people. So, this vision was articulated.
Under the Prime Minister's Office, the National Artificial Intelligence Office (NAIO) launched an initial tranche of five national AI programmes. These covered the areas of logistics, smart estates, education, healthcare and border control. In November last year, the Deputy Prime Minister added two more. These are the National AI programmes for Government and for the finance sector.
How have we done thus far? Here, I want to caveat, we are not just talking about efforts in the last three years. We will be talking about efforts that preceded that.
In terms of research capabilities, we are making headway. If we base it on Field-weighted Citation Impact (FWCI) – it is an indicator that is commonly used to assess research capabilities – Singapore is actually first in the world, ranks number one. And if we look at the kind of research collaborations that tech companies have with our Institutes of Higher Learning (IHLs) as well as the corporate labs that they have set up together, this attests to our research capabilities.
But in terms of the deployment into industries and businesses, I would say that it is quite uneven and also, I should add, there can be different types of AI being put to use. In the financial services sector, for example, machine learning is quite common today. You would find it particularly amongst the fintech companies. In the transport sector, we are beginning to see more and more deployment of autonomous systems. Of course, some using computer vision technologies. So, that is another area.
I would say that within each sector, the beauty of it is that it is not always the case – in fact, it is often not the case – that the bigger companies are better at it. New entrants are frequently more likely to experiment with new solutions provided by AI, because they are likely to be unencumbered by legacy systems and business processes.
Mr Sharael Taha had a second part of his question which is very important and that has got to do with the governance of it. It is a big topic but I should say that IMDA not just has programmes to promote AI adoption, it also seeks to ensure that AI is used in Singapore with a degree of security as well as accountability.
And how are we seeking to do so? In quick summary, quite early on, in fact, probably being one of the earliest countries to put out a Model AI Governance Framework, which has since been contextualised for different sectors in order to bring out the principles and practices and translate them into real actionable items in the sector.
We are also developing an AI Governance Testing Framework and a corresponding testing tool kit to help AI systems owners and developers become more transparent about how their AI works.
So, I would say that we are making all of these efforts in the hope that, truly, our businesses and our people can benefit from the rich potential of AI.
The Chairman: Our guillotine time is 3.55 pm. I think we have time for two or three more clarifications. I will call on Ms Jessica Tan first and then Mr Leong Mun Wai; and if there is any further clarification and we have time, then a third clarification. Ms Jessica Tan.
Ms Jessica Tan Soon Neo: I thank the Minister of State for sharing about the formal programmes to develop talent and tech talent and also to bring institutions as well as companies together. What I did suggest in my cut – and I did appeal – was for MCI and related agencies to look at communities of learning and communities of practice of tech talent coming together. You can say that they can come together today on their own. But I think that if MCI can play a key role in facilitating that and supporting those, it would allow for a lot of learning amongst a very rich base of tech talent and digital talent that already exists in Singapore. I hope that I can get some response to that.
The Chairman: Minister of State Tan Kiat How.
Mr Tan Kiat How: Mr Chairman, I thank Ms Jessica Tan for her suggestion and idea. Behind the suggestion was really about having tech talent, basically tech professionals, coming together to share best practices, update one another on technological advances in this space, especially in this digital space which is evolving so quickly. New threats appear every day, cybersecurity data breaches as well as new practices in terms of how we apply technology, the kind of technical advances and innovation coming out from all over the world as well as Singapore. And I think the spirit of that, is something that we will consider and look at.
More importantly, I think it is working together with our industry associations, both the ICT companies and industry associations, SGTech, as well as the tech professionals' association, Singapore Computer Society, or SCS. Today, we already work together with them to mount many training and upskilling courses for our tech professionals, bringing tech professionals together to discuss issues. For example, is Web 3.0 reality or hype, whether NFTs are something that will be mainstream, what is the future for cryptocurrency, how we are thinking about cyber-attacks and cyber protection? These are topics and issues that we work very closely on with our industry partners, our industry association partners, SGTech and SCS, on many of these causes. So, certainly, we will take Ms Jessica Tan's suggestion and continue to expand on these areas.
The Chairman: Mr Leong Mun Wai.
Mr Leong Mun Wai: Chairman, I have two clarifications for the Minister.
But before that, I would like to clarify that I did not say SPH is a Government-owned company. I say SPH Media Trust. So, I hope the Minister will acknowledge that.
My first question is while SPH is not a Government-owned company, but the Government has considerable influence over SPH, the listed company, over the years. SPH has accumulated a huge amount of property assets from the profits generated from the near-monopoly print business in the past. So, the decision that the Government has made, means that the Government is okay to allow the shareholders to take away all the assets and leave behind a $900 million baby for the taxpayer to be burdened with. That is the first point.
The second clarification is when Minister S Iswaran presented this deal or this structure in Parliament some time ago, he also said that SPH Media Trust is going to have private donors. So, may I ask the Minister what is the progress in getting these private donors to also fund SPH Media Trust? Are the current shareholders and the future shareholders of SPH, the listed company, in a position to enjoy huge windfall profits going to some of those donors, that will help us out in the funding of SPH Media Trust?
The Chairman: Minister Josephine Teo.
Mrs Josephine Teo: Mr Speaker, what Mr Leong said or did not say is a matter of Parliamentary record, I do not think we need to speculate on that. A quick check would confirm whether he said it was SPH or whether it was SPH Media Trust. And if I heard wrongly, I apologise to him.
But, in any case, his questions are quite strange because, if he insists that SPH Media Trust is Government-owned, why would funding even be an issue? It is not something that we would have to come to Parliament and explain to Members about. It would be part of how other arms of the Government are funded and you would basically plan for it within the Ministry's block budget and be done with it.
But the fact that we are here explaining to Members the need to provide public funding to SPH Media Trust is precisely because it is not Government-owned. It is a company limited by guarantee (CLG). The Government does not own this company limited by guarantee and it did not own SPH, the listed entity. And so, the decisions of SPH, as a listed entity, must depend on its board and must, ultimately, depend on its shareholders.
So, Mr Leong suggests, or he seems to think, that it was an option for the media business to continue as part of the listed entity. I think the evidence speaks for itself. We have explained on several occasions by now – in May 2021, in February this year and, indeed, just an hour or so ago – why the economics of the media business have changed so much that it is no longer tenable for them to remain in the previous structure, part of a listed entity, with other businesses because the investments that are going to be needed for the media part of the business to transform are going to be quite involved. And a listed entity could not have invested the same kind of resources to keep it a viable, trusted institution that it is today.
And so, we have basically two choices to make. If I could seek Members' indulgence to articulate them again.
One choice is to take our chances. Accept that this media business existing within a listed entity could decline and we live with the consequences. Alternatively, we mount a serious effort, do everything we can to help it to transform so that SPH Media Trust can remain a trusted institution serving the public good.
If we reject the former and we say it is the latter, then we have to just look at the kind of investments that are being made elsewhere in the world because we are not the only country in the world where the media business has been disrupted. And the funding that we are talking about, I recognise it is not a small amount, and that is why there has been full accountability to Parliament. But it is just into the ballpark that we see elsewhere in the world. These are not figures that are out of whack when we look at other countries' investments, the kind of media businesses having to make the investments.
So, it would appear to me that the fundamental difference is that Mr Leong, or the PSP, simply does not value our local mainstream media as much as the Government. Because, is up to $180 million a year to support trusted local media an excessive amount given the size of our economy – for our people and our businesses to be able to see the world through our own unique lens, for our voice to be projected without impediment, for our cultures and our traditions to be expressed in the way we want it to be expressed? So, I hope I am wrong but if Mr Leong or the PSP does not agree with supporting our local media, then I would really urge him to reconsider the position, whether it is wise for Singapore to do so. I would just stop right there.
The Chairman: Ms Hany Soh.
Ms Hany Soh: Chairman, I have a clarification in relation to the library. Currently, the National Library Board (NLB) has an app titled \"Libby\" which enables users to locate and borrow books and e-materials.
I just want to clarify or enquire whether the app can be further improved with more interactive and user-friendly features. For example, NLB can consider working with relevant agencies like Families for Life or NEA to create special thematic filters. The categories of readers can be further segregated to wider groups to recommend books to suit different stages in life, for example, expecting mothers and children of different age groups.
The Chairman: Ms Rahayu Mahzam.
Ms Rahayu Mahzam: I thank the Member for the clarification question. Indeed, it is a very meaningful suggestion. The libraries are already working with various partners because this effort of curating and encouraging, piquing people's interest is something we need to tap on the community to provide that whole array and buffet of interesting content for library goers. So, that is already something that is being done. And as far as the technology is concerned, we have been working with different partners to develop and use the different platforms for different demographics. We are also working with people in the community to create learning communities within the library. So, the Member's suggestion is definitely something that can be taken in and something that we can consider.
But I would like to just make a pitch, if you have not already, to go to the showcase and explore what are some of the other opportunities and we can work with partners on this.
The Chairman: Ms Mariam Jaafar. I think if you can make that clarification a quick one because I just saw Mr Pritam Singh's hand. So, if we have the time, I will give the time to Mr Pritam Singh.
Ms Mariam Jaafar: A quick clarification because I did not hear much about SME reskilling. Just to make sure that they have opportunities too.
The Chairman: Minister of State Tan Kiat How.
Mr Tan Kiat How: Chairman, Ms Mariam Jaafar asked about helping our SMEs reskill their staff and workforce in terms of digital skills when they transform digitally.
Indeed, this is an important area. If Members recall, last year, in December, if I recall correctly, SkillsFuture Singapore came up with the Future of Skills for the digital economy. And the number one skill that is in demand in the digital economy is really around technological application, that is, how to apply the skills to use the technology tool that an SME or a firm has put in place in its organisation. Having a tool is important, but to be able to use it effectively to achieve business outcomes is something that is really an important return on investment (ROI) that the SMEs need to think about.
In this regard, we have worked together with other agencies on a few areas. First, as part of our SMEs Go Digital, our industry digital plan, which I spoke about earlier, they are designed to account for these skills needs in the digital plan. Because the skill needs for different tools – applied in different sectors and different firms at different levels of digital maturity – will vary. These skills plan and training roadmap will have to be customised for that archetype of firms. And that will be as part of the industry digital plans.
So, when SMEs go through a process, develop digital plans, implement them, select the tools, select the solutions, that is a corresponding set of skills training that they can consider sending their employees to. It is linked up with the different skills frameworks, if available, across the different sectors.
Looking ahead, we will continue to expand the Continuing Education Training (CET) efforts with other Institutes of Higher Learning (IHLs) to provide training for smaller firms across the economy as smaller firms like SMEs may face resource constraints in sending their employees for this sort of skills training. This will be coordinated under the overall effort under SMEs Go Digital.
We are also working together very closely with our counterparts, SkillsFuture Singapore (SSG), in thinking about how to meet the skill gaps in the digital economy, aligned with the SkillsFuture Report that they came up with around the digital economy. We work together with our tech sector industry association, SG Tech, tech professional association, Singapore Computer Society (SCS) which I mentioned earlier, so that, together, alongside their industry counterparts, SCS, SG Tech with their counterparts in other sectors, like industry associations, to work with them to identify and promote suitable digital upskilling opportunities for each sector.
As Ms Janet Ang suggested yesterday, we are adopting an industry supporting industry approach, an industry training industry approach with TACs playing an important role. Just to assure Ms Mariam Jaafar that it is something we are working on. More details will be shared at MOE's Committee of Supply.
The Chairman: Final clarification. Mr Pritam Singh.
Mr Pritam Singh (Aljunied): Mr Chairman, just a point of clarification. I understand from Notice Paper B003 of 2022 the revised \"guillotine\" time for today is listed as 4.15 pm and not 3.55 pm.
The Chairman: It was revised to 3.55 pm as I have been advised by the Clerks.
Mr Pritam Singh: I just went out of the Chamber about five to 10 minutes ago to check and it is still listed as 4.15 pm. But I note the Chairman's point.
The Chairman: This is the result of the tea break which has not been factored in. So, the cut-off is 3.55 pm.
Mr Pritam Singh: I see.
The Chairman: It would have been what you had suggested if I had taken a tea break before. Are you suggesting you want a tea break now?
Mr Pritam Singh: If it means we have 20 more minutes?
The Chairman: Or would you rather have the final clarification?
Mr Pritam Singh: I do not think that is much of a choice, Mr Chairman.
The Chairman: Either way, just go ahead.
Mr Pritam Singh: Either way, it does not extend our time. So, I will just put my question.
The Chairman: Please.
Mr Pritam Singh: Thank you, first, to the Minister for clarifying the question. I seek some clarity on the question on SPH Media Trust.
When Minister S Iswaran spoke of this arrangement because of the changing nature of the media landscape, the Minister said that SPH will, first, form a new subsidiary and transfer the media-related businesses, properties and some cash and SPH shares and REIT units to the subsidiary. And then, subsequently, if the shareholders give their approval, the subsidiary will be transferred to the CLG.
I think the substance of what Mr Leong is getting at is about the privatisation of profits and the socialisation of costs to the taxpayer.
So, my question or clarification is: when SPH's proposal was considered by the Government, how far did the Government go to require SPH to transfer segments of its business which would allow the CLG to be self-funded as far as possible in view of the range of assets owned by the SPH group? And what was the nature of those discussions and how much did the Government push, so as to limit the burden on the taxpayer?
The Chairman: Minister Josephine Teo.
Mrs Josephine Teo: Mr Chairman, I will be brief. I have covered the amounts that the shareholders voted and agreed to when the restructuring was tabled to the Extraordinary General Meeting. The shareholders voted and agreed to an initial injection of $80 million cash and $30 million worth of shares for SPH Media Trust. And in the detailed proposal, they also outlined all of the physical assets that would be transferred.
I think it is not a case of how much the Government pushes the shareholders. Ultimately, SPH Media Trust is a restructuring of a media business that existed within a listed company. And so, as things go, it is the proposal that is made by the management to the shareholders that must pass muster. And this was the proposal that passed muster. It is a matter of speculation whether the restructuring proposal could have gone through with an even higher contribution. And if it had not gone through, then this whole restructuring exercise would not have been able to proceed. In which case, then, I think we are stuck with an even bigger problem. So, I just wanted to put that in context.
The Chairman: Ms Tin Pei Ling, would you like to withdraw your amendment.
Ms Tin Pei Ling: Thank you, Minister, Senior Minister of State, Minister of State and Parliamentary Secretary for a very comprehensive reply. I think it is quite clear that the future holds many possibilities, much needs to be built, a lot of balancing to do. And a big thanks to all the officers from MCI, all the Statutory Boards, as well as SNDGG. With that, I beg leave to withdraw my amendment.
[(proc text) Amendment, by leave, withdrawn. (proc text)]
[(proc text) The sum of $1,549,888,000 for Head Q ordered to stand part of the Main Estimates. (proc text)]
[(proc text) The sum of $60,645,700 for Head Q ordered to stand part of the Development Estimates. (proc text)]
The Chairman: Order. I propose to take a break now.
[(proc text) Thereupon Mr Deputy Speaker left the Chair of the Committee and took the Chair of the House. (proc text)]
Mr Deputy Speaker: Order. I suspend the Sitting and will take the Chair at 4.15 pm.
Sitting accordingly suspended
at 4.00 pm until 4.15 pm.
Sitting resumed at 4.15 pm.
[Deputy Speaker (Mr Christopher de Souza) in the Chair]
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Committee of Supply – Head S (Ministry of Manpower)","subTitle":"Building a strong and vibrant economy, and future-ready workforce","sectionType":"OS","content":"Mr Desmond Choo (Tampines): Mr Chairman, I beg to move, \"That the total sum to be allocated for Head S of the Estimates be reduced by $100.\"
COVID-19 precipitated sudden and pervasive changes to how we work, why we work and what we want at work. Our manpower policies must adjust dynamically to such structural changes.
The Singapore workforce and the manpower policy system that supports the workforce are core national assets. Without our world-class workforce, companies would not invest more and there would be no continued creation of good jobs. It is a critical pillar to Singapore's success. Businesses and investors, both local and overseas, watch our manpower policies closely for the same reason.
It requires years of building, innovating and fine-tuning this system. It is inherently complex, balancing sometimes diametrically opposite intentions and expectations.
For example, we need to strengthen our Singaporean Core, but not lose access to talent needed for Singapore to be competitive. We need to create good work opportunities for our locals without starving businesses of the manpower to grow and survive. We must grow our economic pie but not weaken our compact with workers.
I will speak on structural changes from COVID-19 and how we need to respond to survive and thrive in the new world order while navigating difficult policy tensions.
Digital and technological changes driven by COVID-19 have created many jobs, but also destroyed many others. We can no longer take sustained full-time employment for granted. The rapid growth of platforms or marketplace work has created a much bigger group of gig or contract workers and these workers do not have mandated CPF contributions. Workers are likely to not stay in full-time or traditional employment for as long as before.
How can the Ministry continue to safeguard the retirement adequacy of our workers amidst such structural changes?
Workers might not be accumulating CPF savings consistently or there might be disruptions to building up their retirement nest when they do gig or contract work. It is tempting to ask for flexibility in withdrawals to make up for lost income. But this comes at the expense of retirement adequacy.
The complexity deepens with a volatile investment climate. With increasing investment uncertainty, how can the CPF Board still ensure good returns for our workers?
There has also been a pervasive shift towards greater focus on skills rather than jobs. This was precipitated by a global marketplace where skills rather than occupations or academic qualifications reap ever higher economic rent. This trend will only intensify.
There are three implications. First, our foreign manpower system must gradually pivot to accord greater weightage to skills when giving out work passes. This strengthens complementarity with our local workforce.
Second, how do we employ artificial intelligence (AI) in our work pass system to identify skills and bring in foreign manpower that creates better value for Singapore?
Third, for employers, it is more relevant and intuitive to hire based on skills rather than job titles or school qualifications. But the default is still rather traditional, relying on the presumed hiring certainty of job titles. How can the Ministry help businesses to develop a new dimension in hiring and rewarding for skills?
Next, on the \"Great Resignation\". Since the early part of 2021, the developed world has seen resignation of workers en masse. COVID-19 has stretched on long enough for workers to re-examine their careers, working conditions, reward system and purpose.
This was particularly stark amongst the younger workers. Many were as concerned about their work prospects as they are about wellness. Their definition of success has changed. The perhaps already archaic 5Cs that were once deemed as the Singaporean dream is now overtaken by other non-traditional aggregators of success, such as work-life balance and purposeful careers, aligned to their passions and aspirations.
This has far-reaching consequences for the workforce and workplace.
First, the importance of wellness as a capability within the workplace. Over the years, there are decreasing numbers of jobs that pose physical harm and safety worries as Singapore develops into a service and higher technology economy. However, mental stress hits all of us, regardless of industries.
Globally, companies have introduced well-being programmes in the wake of the pandemic. These programmes help employees with mental health and physical health. The improvements in personal outcomes have a direct impact on productivity and retention.
Wellness goes beyond just providing yoga classes during lunchtime. A well-designed employee wellness framework looks at mental health education, work practices aligned to creating a safe and empowering environment.
We certainly neither envisage legislating wellness within the Workmen Injury Compensation Act, nor is it wise to do so at this point without understanding the issue better.
In Sweden, there is a concept of fika. It roughly means drinking coffee, eating sweet or savoury pastries and chatting with co-workers. There is even a sequence to doing fika. One starts with cinnamon buns and ends with a princess cake.
Many companies have mandatory designated fika time. The Swedes see this as an essential part of managing work stress.
This is not to say that mandating fika or, in our context, \"kopi breaks\" is that panacea to our workplace issues. There is a bigger cultural and work construct to it and fika is possibly that symbolic reminder of the need for work-life balance. The takeaway is that we can no longer treat employee mental wellness as just another good-to-have if we want to deal with changing workplace demands. Bigger and bolder moves are needed.
Second, the bliss or curse of the hybrid workplace. Some workers like it, others detest it but nearly all can see the value of working from home.
COVID-19 forced most companies to have their workers to work from home but few have well-developed hybrid workplace policies. Thus, work time and place become increasingly and agonisingly blurred. Where it was the flexible work arrangement that workers have been craving for years, it is now a bane, especially for younger workers.
The solution is also not to bring all workers back to the office. Workers have experienced the savings from commuting and employers do save from office rental. What we need is to establish a national common code of practices so that workers and employers have a common understanding on how to make hybrid workplaces work.
According to a 2021 CNBC/SurveyMonkey Workforce Survey, nearly 80% of workers want to work for a company that values diversity, equity and inclusion. This might not fully reflect the situation in Singapore but there is clearly a greater desire amongst younger workers for similar aims. Workers increasingly want their companies to take a position on such matters.
Last year, we made a big stride in signaling our intention to enshrine the Tripartite Guidelines on Fair Employment Practices into law. This is a clear signal that Singapore does not tolerate discrimination in workplaces. This move underpins a whole-of-nation desire for greater inclusivity. Can the Ministry provide us with an update on this move?
While the law provides for minimal standards, we need to push the front end of the charge for greater inclusivity. We need to look into establishing public indices, so that companies can benchmark their progress. This can provide for broader and faster progress on the important issue of inclusivity.
Next, going green is no longer a tagline but a real driver of change in the workforce. The green economy will be a key driver in the global economy. We have the Green Plan 2030 to advance our pursuit of sustainable development. We must now prepare our workers to make the transition into the green economy.
Some jobs in the petrochemical sector might, indeed, be lost. Other opportunities might take their place. Can the Ministry outline its plans to prepare our workers to transition into the green economy?
The proliferation of remote working has shrunk the global workplace into one global connected office. Physical presence at the workplace is not tied to productivity. During the deepest of COVID-19, many companies have started sourcing services from overseas for work that used to be done here in Singapore. Remote working has allowed them to capitalise on global talent pools while saving costs and even rental costs of office spaces.
While this means that the workforce is now presented with global opportunities, the converse is also true. Our workforce now faces greater competition, competing for jobs with counterparts from across the globe.
How will the Ministry continue to ensure that the Singaporean workforce remains a strong value proposition for their businesses, especially that of multinational companies (MNCs)?
Building a robust and dynamic workforce and policy system is a multi-year effort. There can be short-term adjustment issues.
For example, implementing an increase in minimum qualifying salaries for work passes can, indeed, result in some work pass holders getting a bump in wages. But adjustment to dependency ratios and the longer run signals will help locals get better wages and a higher quality foreign workforce. Therefore, we must be careful not to avoid longer-range changes because of shorter-term pains.
As we debate the cuts, we must be mindful of the strategic imperatives in building a great workforce and the inherent policy tensions. With this, Mr Chairman, I beg to move.
[(proc text) Question proposed. (proc text)]
Mr Liang Eng Hwa (Bukit Panjang): Sir, the joint NTUC and SNEF PME Taskforce recommended a points system for Employment Pass (EP) applications which factors in whether the employer has been hiring and developing local workers and the diversity of nationalities within the company. The Minister for Finance also mentioned in his Budget Statement speech that beyond qualifying salary, MOM will assess EP applications on the basis of complementarity and the diversity of our foreign workforce.
Can I ask: what is MOM's assessment of whether a points system will be useful in improving the complementarity of the local and foreign workforces?
If, indeed, we are going on this approach, can the Minister share details on the basis of determining complementarity and how the system will be administered? Is this approach of assessing applications expected to lead to a higher total number of EPs issued and whether could it also lead to a situation where an employer who can find a local hire but choose to hire an EP instead, because the company is able to meet the complementarity and diversity criteria? Would it go against the spirit of this proposal?
Mr Yip Hon Weng (Yio Chu Kang): Mr Chairman, businesses continue to face a challenging operating environment. Operational costs are going up with the upcoming increase in GST, carbon tax and foreign worker levies. Border restrictions have led to some foreign talent leaving the country and not returning.
There is an urgent need to review our strategies concerning the hiring and retention of foreign talent.
The competition for talent at the high-end is global. In 2021, 69% of companies globally reported talent shortages. By 2030, the global talent crunch is estimated to reach 85 million people.
This translates into a potential loss of trillions of dollars in economic opportunity for companies. For Singapore, the loss is estimated to go up to $143 billion. Knowledge-intensive industries, like financial services, technology, media and telecommunications and manufacturing are expected to take the hardest hit.
We need a framework that gives more certainty to companies for manpower planning. But the bigger question is, how do we overcome our talent crunch, be very selective and attract the cream of the crop to come here?
As we are also extensively upskilling local workers to reduce the skills gap, we should only aim to attract the best from overseas to complement the local workforce.
How do we determine what is the best, compared to the mediocre? How can we attract the next Jeff Bezos, Mark Zuckerberg or Elon Musk to contribute their expertise to Singapore? What will it take to build the next Amazon, Facebook or Tesla here? What are our strategies to do so, as we come out of COVID-19?
Amongst talent hiring strategies shared by industry experts, many of them have to do with the hiring process itself and human resource management.
Will the Human Resources (HR) Industry Manpower Plan take this into consideration and help our HR practitioners to develop better hiring and talent management practices?
Mr Cheng Hsing Yao (Nominated Member): Chairman, Sir, some have said that certain economic or social sectors are over-reliant on foreign workers, for example, in retail, F&B, construction and healthcare amongst others. This implies that at least some companies or organisations in these sectors are unwilling to change, slow to adopt technologies and redesign jobs to make them attractive to Singaporeans. When I look at these sectors, I see potential for process and production redesigned to increase productivity.
However, the delivery of their products and services also encompasses a particular type of work, the type which requires dexterity and eye–hand–leg coordination. This type of work is difficult to be replaced or designed in a way, not until mobile robotics are advanced and economical enough to be widely deployed.
Most of these jobs may not qualify as complementary because they can, theoretically, be done by Singaporeans. Meanwhile, we may not have enough Singaporeans interested in such jobs, especially when other economic sectors are also competing for Singaporeans to join them. We also demand more from these sectors. For example, we want better service at retail and F&B shops, more BTO flats, more MRT lines and stations closer to homes and more help to care for our young, our old and the sick.
I understand the objective of tightening access to foreign labour is to drive companies and operators to improve productivity. However, there may be scope for a more differentiated approach. I would like to suggest we work with the various industries to quantify, from bottom-up, how much improvement in productivity can really be achieved. So, we roughly know what is an achievable target, what is a stretch target, within a certain timeframe.
Can MOM consider a deeper dive into the nature of the work of various economic or social sectors that we are trying to drive higher productivity and differentiate them into two categories? One, jobs that can be significantly reduced through job redesign and use of technology. Two, the dexterous and eye–hand–leg coordination type of jobs that cannot be easily replaced by automation or process redesign. Following that, a set of differentiated and more targeted policies can be applied.
Mr Patrick Tay Teck Guan (Pioneer): To safeguard our Singaporean Core and curb discriminatory hiring, we must ensure that our Singaporean Professionals, Managers and Executives (PMEs) have access to a level playing field for jobs while, at the same time, balance companies' manpower needs in the immediate and longer term. I am glad to note the upward revision of the Employment Pass (EP) and S Pass qualifying salaries announced during the Budget Statement 2022. However, this alone is inadequate. I am glad that we are looking at introducing workplace fairness legislation to weed out all forms of discrimination, including nationality discrimination.
Today, the eligibility criteria for EP focuses largely on the applicant's educational qualifications and salary. I look forward to MOM taking into consideration the NTUC-SNEF PME Taskforce's recommendation to further enhance the EP application process and include a points system which factors in, first, sectoral input; second, whether the employer has been hiring and developing local workers; and third, the diversity of nationalities within the companies, including seeking inputs from the tripartite partners, which is NTUC.
In the same vein, I hope MOM can provide an update on the effectiveness of the Fair Consideration Framework; the work of TAFEP and the drive to weed out the triple weak companies; and refinements of the various tripartite standards and guidelines so that we can build upon all these various initiatives and policy measures and further strengthen our Singaporean Core.
The Chairman: Ms Sylvia Lim. Not here. Mr Patrick Tay.
Mr Patrick Tay Teck Guan: The last time when CPF contribution wage ceiling was raised from $5,000 to $6,000 was six years ago on 1 January 2016. With rising wages, especially of our PMEs and the Government's commitment during the last round of review to realign the salary ceiling to cover wages up to the 80th percentile of resident incomes, I wish to ask the Minister if MOM will consider a review of this contribution wage ceiling to ensure it keeps pace with income growth over the years? This will allow CPF savings to be tagged to real wage growth, and it is also one way to improve retirement adequacy for Singaporean workers, especially the PMEs.
Mr Gerald Giam Yean Song (Aljunied): Sir, many residents have approached me for help to appeal to CPF to allow more flexible use of their CPF for housing. Some elderly residents have insufficient cash to complete the purchase of their 2-room Flexi flats because their CPF Ordinary Account (OA) monies are automatically transferred to the retirement account upon turning 55.
As home loans are not available for Flexi flats, the purchase of a $100,000 flat is often a strain on their cash flow. Can I request that CPF Retirement Account (RA) funds which originated from their OA be allowed to be used for the purchase of 2-room Flexi flats by default as long as the CPF member's RA balance is above the Basic Retirement Sum (BRS).
There should be a simple and clearly stated application process for this. For those whose RA funds for below the BRS. I hold CPF can exercise greater flexibility so that elderly residents are not denied a Flexi flat despite large balances in their CPF funds.
For the payment of the resale levy, can CPF consider allowing applicants who have sufficient funds in their RA or SA to take out an advance from one of these accounts which must be returned with interest within a few years. The applicant could be required to show income documents to prove that they are able to return them amount drawn. This could smoothen the cash flow problem that might be preventing them from completing the purchase of their home, while ensuring they do not prematurely exhaust their retirement funds. It will not just elderly flat buyers but also divorcees who have to sell the matrimonial flat and have only half the proceeds to buy a new flat.
Mr Chua Kheng Wee Louis (Sengkang): Chairman, while CPF has maintained its interest rates at a point where it preserves purchasing power and guards against long-run inflation, the longer time horizons that retirement presents mean that expected increases in longevity and higher retirement income needs should give additional motivation to empower CPF members to enhance their returns when able. And it is, indeed, true that, generally, long-term investments with some risk should provide higher expected returns than the CPF interest rates.
We know that 75% of CPF Investment Scheme (CPFIS) OA members have earned some form of profits as of FY2020, but only 645,000 members are part of the CPFIS. This is a mere 16% of the over four million total CPF members as of 2021. There could be many who may wish to see their CPF returns do better than the interest rates offered by CPF but are not confident enough or knowledgeable in the financial markets to buy into the CPFIS.
Moreover, while the world has been moving toward ETFs as an investment product, the available number of ETFs available under the CPFIS is a grand total of six. Many of the global ETFs such as those listed in the US, have total expense ratios which are lower than ETFs and Unit Trusts here in Singapore. As a start, can more passively managed ETFs be made available for Singaporeans?
I note from my cut last year, then-Minister for Manpower shared that the Ministry had still been studying if a CPF Lifetime Retirement Investment Scheme (LRIS) can be introduced to help such members who have the risk appetite and investment horizon but not enough investment knowledge. However, the Ministry is updating planning assumptions to strike the right balance between risk and return. I would like to seek an update if the Ministry has finished work on this front, as it has been close to six years since August 2016 when the plans were first announced. Is there a more concrete timetable that can be shared?
Finally, I would like to make an observation that GIC's 20-year returns have been consistently above the 2.5% interest rate offered to CPF-OA. Should the average Singaporean get access to the diversified investment portfolio of GIC, CPF members could reach retirement adequacy in a way that minimises the risk of short-term market volatility and protect their purchasing power against not just local inflation, but global inflation as well.
The Chairman: Prof Hoon Hian Teck. Not here. Ms He Ting Ru. Not here. Mr Dennis Tan.
Mr Dennis Tan Lip Fong (Hougang): Extending from my Budget debate speech earlier this week, I wish to highlight the need for a Just Transition for the manpower currently within the petrochemicals industry, otherwise known as the energy and chemicals industry. While Singapore is accelerating the green transition, we must not forget that there are around 27,000 people working in the sector, a majority in their 30s and 40s. With an increasing resistance to working within this space, we may be losing sight of the forest for the trees as we do require petrochemicals, albeit at a reduced level, as we transition to a green economy and society.
This does also mean that many in the sector may be at risk of losing their jobs in the near to medium-term. Those who remain in the fossil fuel industry may find some of their jobs fundamentally changed to fit the greening economy. Many workers in the field should be looking to make mid-career switches into the green economy. But how can we integrate a Just Transition in this sector then, so that no one is left behind?
This requires buy-in not just from the Government, but from companies which are invested in the green transition. Shell announced in November 2021 that it is halving its crude processing capacity at its Singapore hub and reducing fuel exports as it transits from fossil fuels to cut emissions and meet global low-carbon energy needs. How will such industrial developments in our petrochemical industry affect existing employment?
For a start, I hope that both the employers and the Government will work to ensure that as many existing workers as possible can be retrained and converted to new positions under new green ventures within the organisations.
Next, at this point in time, our aggregate level of green skills level may not be sufficient. LinkedIn published its first-ever report on the state of the green economy in a Global Green Skills Report on 22 February, which noted that Singapore ranks 24th out of the top 25 countries in terms of relative green skill intensity, lower than the global average.
Therefore, it is not enough to emphasise on skills and competencies to incorporate into Singapore's education curriculum. Our workers in the industry must develop the ability to think at a systems level, to have grit and resilience in order to transit and compete in the global green economy and ready with global talent.
I, therefore, ask the Minister for Manpower to give more specifics on transitioning our workers in the fossil fuel industry towards jobs within the green economy. How will Career Conversion Programmes being offered by Workforce Singapore (WSG) be augmented to reskill existing workers or train new hires in the sustainability sector? Will more Continuing Education and Training (CET) courses be jointly developed by NEA together with industry and partner stakeholders and offered by Institutes of Higher Learning (IHLs), such as Polytechnics and ITEs? How will they plan to reach the individuals working within the industry to ensure that they are ready for the transition? How will the Ministry collaborate with the companies within this sector to provide the necessary information for their employees in this green transition?
I, therefore, ask the Minister to give an update on how MOM intends to keep a domestic talent pipeline for the petrochemical segments where petrochemicals are still envisioned to be used in the green future.
The Chairman: Miss Cheng Li Hui. Not here. Ms Hazel Poa.
Ms Hazel Poa (Non-Constituency Member): Mr Chairman, CPF is our main social safety net. It can be used for housing, healthcare education and retirement income. Self-employed persons do not have the benefit of employer CPF contributions. Their housing and retirement adequacy are areas of concern.
About a third of the 228,000 self-employed persons (SEPs) work for platform companies that assigned delivery or transportation work to them. The UK Supreme Court decided to classify them as workers, a category between employees and self-employed, with some benefits like paid leave and pensions.
These gig or platform workers often engage in physically strenuous work with low entry barriers and they also tend to earn less. The median monthly income of resident employees in 2018 was $4,000 for permanent employees, but only $1,322 for gig workers. Furthermore, delivery or transportation jobs have a high chance of being replaced by machines with advancements in technology in the not-too-distant future. Researchers in Institute of Policy Studies (IPS) warned of platform workers being caught in a poverty trap.
The Advisory Committee on Platform Workers was set up six months ago, to look into better protection for platform workers. Can MOM provide an update on the progress of the committee and when we can expect the committee to make public its recommendations?
In addition, I would like to seek further information from MOM: what is the latest number of platform workers? What is their median age? How many are unable to meet the basic retirement sum (BRS) now? For those who are unable to meet the BRS, what is their average CPF savings? How many are making CPF contributions voluntarily? How many have recently completed or are currently attending SkillsFuture courses to upgrade their skills?
I would also like to provide two suggestions.
The lack of CPF savings is a major concern. To encourage platform workers to make voluntary CPF contributions, can MOM consider a special scheme to allow them to voluntarily contribute CPF and withdraw their voluntary contributions on demand?
The income of gig workers is not stable. Due to this volatility, it is important to keep cash on hand. Gig workers are understandably hesitant about making voluntary CPF contributions over fears that when they need that money, they cannot access it. If, however, they have the flexibility to withdraw these contributions when needed, they would be incentivised to contribute CPF to benefit from the higher interest rates offered by CPFB, as salaried employees do.
My second suggestion is on training. According to Grab, and I quote, \"Around 70% of our partners have expressed interest in attending training and skills development programmes to improve in their current role, while two-thirds of our partners hope to leverage skills gained to transit into other career fields.\"
Do platform companies have to pay SDF for their platform workers? If not, can MOM consider making platform companies contribute SDF and use these funds to give extra training support to platform workers? In Mandarin, please.
(In Mandarin): [Please refer to Vernacular Speech.] CPF is our main social safety net. It can be used for housing, healthcare, education and retirement. CPF inadequacy among platform workers is one area of concern.
These gig workers or platform workers often engage in manual labour and usually have lower income. In addition, delivery and transport jobs may be replaced by machines in the near future.
In this regard, I have two suggestions.
In order to encourage platform workers to make voluntary CPF contributions, will MOM consider a special scheme that allows them to withdraw their voluntary CPF contributions at any time?
The income of platform workers is unstable. If they have the flexibility to withdraw their CPF in times of need, they may have less concerns. Meanwhile, they will also enjoy higher CPF interest, like other employees.
My second suggestion is for MOM to consider requiring platform companies to contribute to the SDF, so as to provide additional training support to platform workers.
Mr Chua Kheng Wee Louis: Chairman, last year, I spoke in this House about the importance of FWAs and called upon the Government to lead the adoption of FWAs. In the past two years, COVID-19 has drastically changed the way we work, but as we start to get back on track to living with COVID-19, there is considerable anxiousness and concern that the gains we have made on FWAs could be lost.
The Public Service Division (PSD) has introduced FWAs, but I read with grave concern the Government's stance that hybrid work is not an entitlement, and that the requirements of the job take precedence. I am concerned that the signalling from PSD may roll back such efforts in the private sector as well.
Research shows that FWAs bring various economic benefits, including increased productivity and innovation, better employee morale, as well as attracting more talent. For employees, this can also bring improved work-life balance and mental health.
In response to my Parliamentary Question in February, Minister Chan Chun Sing noted that some 60% of the Civil Service is in frontline functions, such as schools or the uniformed services agencies, which are not suited to be performed from home on a sustained basis. However, where operationally feasible, Public Service agencies can exercise flexibility and discuss FWAs with these officers.
To me, the starting point has to be that FWAs are an obligation on the part of employers, and, thereafter, discussions can be made on how these can be tailored to individual job circumstances.
A related point on FWAs is the idea of a four-day work week. I shared in a speech last year the benefits that this could bring. Since then, the UK has also announced a four-day work week pilot. As shared by the director of the four-day work week campaign in the UK, similar programmes are set to start in the US and Ireland, with more planned for Canada, Australia and New Zealand.
Many companies and governments have already started to implement FWAs and four-day work weeks. For example, the Victorian state government has made flexible work available by default to all employees since 2021, focusing on service delivery outcomes, as well as employee support and well-being. Finland's Working Hours Act, first passed in 1996, was updated to give employees flexibility to shorten or extend their workday by up to four hours. Closer to home, local banks, such as UOB and DBS, have also instituted permanent FWAs.
I ask that the Government demonstrate a commitment to this new way of work and maintaining the attractiveness of Singapore as a place to work. I hope the Government will take decisive steps to increase the adoption of FWAs, through legislating a baseline level of flexible work, conducting four-day work week pilots and allowing the Public Service a leadership role to implement more FWAs.
Ms Janet Ang (Nominated Member): Mr Chairman, Dylan D'Souza was a COVID-19 graduate. Not being able to secure a long-term job, Dylan decided to take up the SGUnited Skills Programme at NUS-ISS in December 2020. After the six-month full-time Train and Place Programme, during which he was attached to AXA, Dylan successfully contracted to continue at AXA as a data specialist.
Mr Chairman, the SGUnited Jobs and Skills Package has supported thousands of Singaporeans like Dylan in several hundreds of companies during the pandemic. It was a big deal for the industry.
Meanwhile, as the economy recovers, human resources are the great challenge ahead. I have time to only touch briefly on three points and I hope you will not buzz me.
One: Singapore being open to global talent is not an option. There are two truths: one, there are simply not enough Singaporeans to do all the jobs that are needed to be done; and two, in fact, our ability to attract the best global talents to work here and complement our local workforce has been a Singapore competitive advantage.
I did speak in Parliament about holding our businesses accountable to Fair Practices in the Workplace (FPW).
I hear from the Singapore Human Resource Institute that companies, especially the MNCs, are committed and some have set up a HR compliance unit to ensure FPWs. Ideally, fair practices in the workplace should not just be about compliance but an intentional commitment by employers to renew their social compact with their Singapore employees, a key stakeholder.
As for us, the Singapore workers, let us continue to work hard to create value in our roles, to get reskilled to stay relevant, embrace change, think, innovate and adapt and, most of all, act with integrity, responsibility and respect. We ought to be the difference why companies invest in Singapore.
My second point: FWAs to attract, retain, diversify and include. The COVID-19 pandemic has resulted in work from home becoming the norm. As we shift gears to live with COVID-19, it is a great opportunity for companies to rethink the workplace of the future for their workforce. I think that is not just simply about working from home, but having the choice of flexi-work arrangements. With flexibility, I believe that more women, more persons with disability and more seniors can choose to work.
My third point: will AI take away jobs? I would like to suggest that if robots or AI can replace work that humans used to do, humans would be more than happy to have those tasks automated away. We have seen many examples from our lived experience. AI systems should augment work and, in fact, that is actually urgently needed so that the work that needs the human touch, the service quality, the intuition or compassion will have enough people to do them.
However, trust and understanding are critical and we need as much communication and education in this space, as we need innovation.
Can the Minister give us an update on the progress of the tripartite guidelines being written into law? Can the Minister update us if MOM will be advocating and, therefore, supporting companies to move forward with FWAs?
Can the Minister also update if the Public Service will take the lead and how will the Public Service take the lead to build AI systems to solve part of the manpower challenge?
Let me close with the story of Bin Rong, a lighting technician, whose role was affected by the COVID-19 pandemic. He applied for the NUS-ISS Professional Conversion Programme in Full Stack Development and was matched with Works Application Company Limited. This training enabled Bin Rong to successfully transition into a new profession as a software engineer.
As Singaporeans, we should be proud and heartened to know that our Singapore Budget supports Singaporeans like Dylan and Bin Long, one person at a time.
The Chairman: I did not buzz you, but please try to keep your speeches shorter next time, Ms Ang. Thank you.
Ms Janet Ang: Yes, Sir.
The Chairman: Mr Liang Eng Hwa.
Mr Liang Eng Hwa: Sir, credit to the hardworking team of the MOM family, past and present, we have made great progress in improving the employability, employment and well-being of our workers in the last decade.
However, one segment of workers where their employability and employment continue to face steep challenges is that of the mid-career jobseekers, those in their 40s and 50s. They are most vulnerable to disruptions and restructuring at the workplace. It is a more uphill task for anyone in the middle of their careers to reskill for new jobs. Hence, we need to intensify support and encourage continuous learning.
But, of course, there are some who face age discrimination, biasness by their employers and that, we will address it through TAFEP as well as workplace fairness legislation.
We already have a range of support measures to help mid-career workers. So, can I ask the Minister for an update on the outcomes of these schemes so far?
I welcome another new scheme that was announced by the Finance Minister, namely, the SGUnited Mid-Career Pathways Programme – Company Attachment. Securing attachments to companies for these mid-career jobseekers can be a good way to help overcome the skills or experience mismatch issues. Can the Minister share the details how this scheme would work and does he anticipate any difficulties?
Also, can I ask the Minister to share the details on the SkillsFuture Career Transition Programme which would be enhanced to achieve better outcomes?
Mr Yip Hon Weng: Mr Chairman, I am glad to hear that the Jobs Growth Incentive (JGI) has been extended to September 2022. To a certain extent, it has helped to encourage employers to retain local staff and expand local hiring.
But this will be a mere stop-gap measure when the JGI ends, if there is no mindset change towards employing seniors. What other measures are we taking to improve the employment of seniors? Can we set specific targets with regard to senior employment rate in the growth industries?
Some of Britain's biggest companies recognise the importance and value of senior workers and had, on their own accord, set targets and plans to increase the number of over-50s they employ by 2022. The American Association of Retired Persons has an Employment Pledge Programme to recognise companies that are committed to hiring persons aged 50 and above.
We must do more to identify the companies that are age-diverse, and work on expanding this group.
On the new SkillsFuture Career Transition Programme, which will replace the SGUnited Skills Programme and the SGUnited Mid-Career Pathways Programme, can the Ministry elaborate on which industries will it focus on and how long will the training be for?
Miss Rachel Ong (West Coast): Chairman, mid-career workers were some of the most affected groups due to the pandemic season. Many experienced loss of jobs and great challenges in being hired over younger workers, despite their wealth of working experience. Some of these mid-career workers are women returning to the workforce after choosing to dedicate their time to the formative years of their children's lives. For these, the pandemic made their re-entry into the workforce more challenging.
WSG's SGUnited Mid-Career Pathways Programme introduced in 2020 provides many benefits for the mid-career worker. Apart from learning skills with income supplementation, the attachments and traineeships allow for immersive real-world practice that sets in context their new knowledge. This is particularly valuable for women returning to work in adjusting to the workplace environment that would have changed in their years away from the workforce.
However, one key challenge that many of the mid-career individuals face in embarking on this journey is the exploration phase and eventually deciding on the alternative career pathway to choose. We understand from Executive Career Coaching workshops for PMEs that one of the most important attributes to equip our mid-career workers with is in confidence – confidence for the next phase of their lives.
Often, one is unsure of his or her employability in the market, especially if they have only been in one particular role for an extended time. As such, helping mid-career PMEs understand their transferable skills from past experiences, interests, what energises them will allow them to identify their transferable skills and understand the value they bring to their next role.
This also accords a more holistic assessment of the individual and builds their confidence for the job search.
One career coachee, a tech support specialist for 23 years in the same company, was informed in November 2020 that his company was closing their operations and that he would be retrenched by the following April. He was turning 50 that year and was the sole breadwinner for his wife and two school-going children. He was very concerned about his employability at the age of 50 and expected not to be employed for a long time after retrenchment.
Through the career coaching he received, he was able to discover his skills and recognise areas he could contribute to the current job market and built his LinkedIn profile accordingly. He was headhunted shortly via LinkedIn as an Automation Engineer and was able to start work immediately after retrenchment. His story has encouraged many.
I believe that if we were to invest more time helping our workers discover transferable skills and strengths they have for the current job market prior to the start of their mid-career pathway programme, they will see greater opportunities for selecting a pathway programme that they can flourish in.
I would like to ask the Government how this programme looks like beyond March 2022 under the new scheme SkillsFuture Transition Programme and what specific updates there would be in the enhanced pre-training and post-training support, especially for the mature worker segment.
Mr Sharael Taha (Pasir Ris-Punggol): Chairman, in the Budget, $100 million has been set aside to support NTUC to scale up the Company Training Committees (CTCs) and introduce new grants to support company transformation plans. What is the resource to support this and how will NTUC work with CTC to render the transformation support?
Mr Gerald Giam Yean Song: Over the years, the length of service an employee must serve before qualifying for paid sick leave has been reviewed in Parliament. In 2008, the minimum qualifying period was reduced from six to three months, with the entitlement adjusted on a pro-rated basis. This was in response to an increase in short-term employment contracts.
Since these legislative amendments, short-term employment contracts have become even more commonplace. In 2021, 8.4% of the workforce was on fixed-term contracts, up from 7.7% in 2009. The percentage of workers on contracts of less than one year has also seen an upward trend. Many workers find themselves transferred to new employers without even changing their jobs. This happens when their previous employer loses a cleaning or building maintenance contract and they are transferred to the new contractor. When this happens, they are treated as a new employee requiring them to forgo paid sick leave for the first three months of the new contract.
I wish to propose that legislation be amended to allow workers who complete one month of service to be entitled to two days of paid sick leave, eight days of hospitalisation leave. This could increase to four days and 10 days, respectively, after the completion of two months of service.
Concurrently, to protect the interests of employers, tax reliefs and public recognition could be extended to employers who implement these more progressive paid sick leave arrangements. This also complements the Government's stance of encouraging workers to isolate themselves and seek medical attention if they feel unwell.
Mr Louis Ng Kok Kwang (Nee Soon): Some say Singapore is the most fatigued country in the world. Working hard is important, but one cannot work hard without enough rest. Our minimum annual leave entitlement of seven days is not sufficient for many.
Many other countries provide a higher minimum entitlement, including Malaysia, Indonesia, Myanmar, Laos, Qatar, Iran, Japan, South Korea and lots more. Many not only have a higher number of minimum days of annual leave, but also provide a higher number of paid public holidays.
It is hard to see how raising the minimum entitlement will affect employability. Forty-seven percent of employees already get more than 14 days of annual leave. For many businesses which understand the importance of rest, nothing will change.
Lower-income workers whose jobs are labour-intensive, are likely the ones with the minimum entitlement. It is ironic that those who need the most rest have the least rest and also have no access to FWAs.
We work hard to increase the salaries of lower-income workers. We should also work hard to increase the time they have to rest.
The Chairman: Ms He Ting Ru. Not here. Mr Melvin Yong.
Mr Melvin Yong Yik Chye (Radin Mas): Mr Chairman, 2021 saw 37 tragic workplace fatalities, a steep rise, compared to 30 fatalities in 2020. Every death at the workplace is avoidable and we must do all we can to stop them from happening.
What is the Ministry's plan to improve workplace safety for 2022 and beyond? As we move to relax broader safe management measures (SMMs), when can we lift cohorting rules at the worksite, so that workers at construction sites can cross zones and resume helping one another during high-risk work activities?
According to MOM's data, smaller construction firms – most of them sub-contractors – have a higher workplace fatality rate than bigger contractors. This begets the question – why are the good safety practices not being filtered down to the sub-contractors?
I propose that we hold developers and main contractors jointly liable for poor WSH practices of sub-contractors working on their sites.
Sir, the Return-to-Work Programme was launched in 2017 to help injured employees return to work after an accident.
Can the Ministry provide an update on how many workers have participated in the programme since its launch, and what is the success rate of placing the injured worker back to his workplace? Are there any lessons that we can learn from the programme in the past five years and does the Ministry have any plans to enhance the programme moving forward?
Sir, the prolonged COVID-19 pandemic has also placed a heavy toll on our workers' mental health, and I am glad that the Government has worked closely with the Labour Movement and has taken steps in the right direction to improve the mental resilience of our workforce.
However, there remain concerns on whether we are doing enough. For example, we need to pay more attention to the mental health of our lower-wage workers, who often find themselves on the stressful frontlines of our whole-of-nation response to the pandemic.
What are the Ministry's plans to improve the physical and mental well-being of our frontline workers, in particular, those in the lower-wage segments?
Lastly, research suggests that peer support systems are beneficial for the mental health of employees. Today, every company has a Safe Management Officer (SMO). Let us upskill all SMOs to become Work-Life Ambassadors, so that every company will have a representative to look after the work-life harmony of their workers and implement proper peer support systems customised to the individual companies.
Ms Mariam Jaafar (Sembawang): Sir, COVID‐19-era protocols give new ideas for the future of work, from work from home to the dispensation of the need for a medical certificate (MC) when self‐isolating after a positive COVID-19 test. Will the Minister consider changes to the Employment Act to dispense of the need to produce an MC for paid sick leave of up to, say, three to five days out of the 14 days entitlement, being for COVID‐19?
Mr Patrick Tay Teck Guan: The last round of Employment Act amendments was effective from 1 April 2019. In the past few years, fuelled by the COVID-19 pandemic and technological transformations, there have been accelerated changes and developments in our workforce, at work and in the workplaces. We had to issue a series of tripartite advisories to keep pace with the curveballs and demands of the new landscape, fuelled by the pandemic and technological developments.
Considering these developments, I think it is appropriate to review the Employment Act or related labour legislation again to better address the plethora of issues arising from gig work, workplace fairness, whistle-blowing, treatment of sick leave and MCs, grievance handling, workplace harassment and discrimination, hours of work and overtime work, hybrid work, leave classification and contractual termination of workers without giving of termination reasons.
Mr Chua Kheng Wee Louis: There is an increase in gig economy workers in recent years, but many are in a precarious position. This is something that the Government has taken note of.
Prime Minister Lee had spoken in his National Day Rally last year on how most gig workers earn only a modest income and they lack protections, such as work injury compensation and, of course, employer CPF contributions.
However, there have been arguments made on how, if changes are implemented, markets may be distorted resulting in consumers bearing the costs. This may be a false premise, however, as to the extent that the cost burden falls on more relatively better-off consumers who regularly utilise services provided by gig workers, such as food delivery and private hire transport, this could be beneficial from a societal point of view. After all, the benefits to gig workers discussed should outweigh the costs to relatively better-off consumers of a marginal increase in the price of food delivered to their door by a cyclist on a wet rainy day.
Since the UK Supreme Court ruling that Uber drivers should be treated as workers in February 2021, other jurisdictions have moved strongly on gig worker protections. The EU has proposed a test on how digital platforms manage gig workers. Malaysia is also looking into a need for gig worker regulations.
Hence, I would like to ask the Ministry if legislation will be introduced to protect the rights of gig workers and provide them with at least the minimum levels of benefits and protection and safety nets, such as insurance and work injury compensation.
Further, with effect from 1 September 2022, all companies which hire foreign workers will be required to pay all their local employees at least the local qualifying salary (LQS). While not named a minimum wage per se, this provides for local workers with, at least, the ability to earn a minimum of $1,400 per month. Gig economy workers today have no control over their earnings and are subject to the ever-tightening incentive schemes in order to barely make ends meet. Could efforts be done to ensure that they earn at least a fair wage, with reference to locals working part-time earning at least $9 per hour, as per the LQS?
The Chairman: Mr Abdul Samad. I thought I saw him. Is he around? No? Dr Shahira Abdullah.
Dr Shahira Abdullah (Nominated Member): Chairman, I am heartened that at this Budget, the Workfare Income Supplement (WIS) will be expanded to help more workers. However, the payments depend on gig workers making MediSave contributions.
Considering that gig work income may be unpredictable, unstable and, sometimes, insufficient to support their household, they may be discouraged to contribute to MediSave due to more urgent, current needs.
Therefore, would the Ministry consider relaxing the MediSave requirements on a case-by-case basis to allow the gig workers who are struggling during this period of heightened inflation to benefit from WIS?
In future, though, with no mandatory contributions to CPF, there is a likelihood that their retirement preparations are affected. Moving forward, would the Ministry consider mandating or incentivising the gig workers and platform companies to make CPF and MediSave contributions?
The Progressive Wage Model (PWM) will also not cover these workers. Career progression with accompanying wage increases will be difficult. I am also concerned about the gig workers if accidents occur. They may have to pay for their own medical bills while being out of work.
Several platforms provide benefits and protection, in the form of sponsoring skills training courses and providing insurance, though not all. How can we assist the gig workers pivot to new careers? Will the Ministry consider including them in WICA so that the gig workers will have mandatory protection while doing their jobs?
Ms Yeo Wan Ling (Pasir Ris-Punggol): Since the beginning of the pandemic two years ago, concerns over the long-term viability of freelancing in our gig economy have been a major topic of discussion in our society. Our increased reliance on multiple segments of this economy, from ride-hailing to food delivery, has shone a spotlight on the plight of this particular group of platform workers – workers who are engaged with major platform companies to provide transport and delivery services.
While there are platform workers who take on this job as a secondary source of income to supplement an already decent wage and quality of living, our main concern is for those whose sole source of income is from platform work. These workers resemble employees in a company, yet, due to their present status, are not afforded the protections and perks that employees enjoy. Under today's classifications, work injuries, which our delivery riders are more at risk of, will not be compensated on a national standardised level.
Employers' CPF contributions, which contribute to a significant portion to meeting requirement and housing needs, are also not provided. Furthermore, with limited prospects for wage progression and advancement, the present situation has led to deep concerns being raised over the lack of basic protection for our platform workers.
The matter at hand has been widely discussed in Parliament, and our Labour Movement has recognised these concerns, having taken steps to set up the National Delivery Champions Association in December 2020 and the National Private Hire Vehicles Association in May 2016. The Labour Movement, indeed, has been pushing for greater protection and representation and welfare benefits that platform workers should be entitled to.
While these efforts have been looked to to push the agenda forward, the Ministry has the ability to engender significant improvements in the prospects and livelihoods of these platform workers. It is with this in mind that we seek clarification on the findings and recommendations the Advisory Committee has to better protect the rights of these workers. In particular, we recognise the importance of having significant and sufficient CPF savings to meet basic needs. We seek clarification on how CPF will be shared between the platform and the workers.
Mr Leong Mun Wai (Non-Constituency Member): Chairman, importance of job statistics. On 7 February 2022, MOM's rebuke of prominent blogger Leong Sze Hian's intuitive post last Christmas on job statistics highlighted the issue of job security for Singaporeans once again. Do foreign PMETs complement Singaporeans, or do they threaten to take over jobs from Singaporeans? The reality is: it is probably more of a threat. So, policy intervention is needed to rebalance the job market. This reality, however, is not obvious from MOM's job statistics. The basic problem lies in MOM's reluctance to present the employment data in individual categories of original citizens at the start of the statistical period, new Citizens and Permanent Residents (PRs). Instead, it has lumped all the figures into one category as locals. So, we do not have a clear picture of how policies have affected each category of people.
We have previously pointed out that while the Government has insisted that the 380,000 PME jobs created for locals between 2005 and 2020 have benefited Singaporeans, that is highly unlikely. This is because more than 635,000 new Citizens and PRs were added to the \"locals\" statistics during the same period. And most of the 380,000-job increase would have been because of that. In other words, the composition of the \"locals\" statistics in 2005 and those in 2020 are different, and most of the job increase is not a real increase. Hence, not enough jobs are created for the 250,000 fresh Singaporean University graduates who joined the job market from 2005 to 2020. We can estimate that there is a shortage of 100,000 to 150,000 PME jobs for Singaporeans in the last 20 years, not counting those who were demoted due to discrimination.
If it truly wants the foreigners to complement the Singaporean Core, then MOM must ensure that the Singaporean jobs are not being threatened. MOM should spend its time tackling this problem, rather than wasting time and resources trying to rebut Leong Sze Hian.
Mr Sharael Taha: Chairman, many of us have come across platform workers who are unable to save enough to purchase their own flats, or platform workers who are unwell or isolated and could not earn their daily wages. During this pandemic, platform workers who contracted COVID-19 were able to seek assistance from the Courage Fund. Beyond these one-off assistance schemes, our platform workers need more help to meet their retirement and housing needs and a baseline level of coverage for work injuries. Will MOM be able to provide an update on the discussions of the Advisory Committee on Platform Workers? How do we ensure that the platform operators are responsible for the well-being of their associates?
The Chairman: Mr Leon Perera, if you would like to take your two cuts together, please do.
Mr Leon Perera (Aljunied): Yes, Chairman. First cut on easing movement restrictions on migrant workers in dormitories.
Sir, migrant workers have experienced movement restrictions for almost two years. While the December update allows up to 3,000 workers out daily, workers are often not able to go out on workdays. What is the Ministry's roadmap to ease restrictions? Can the Government explain specific criteria needed for the next round of easing, be it caseload, ICU usage and so on? The vaccination rate among dorm residents is 98% and that ought to be a consideration in easing movement restrictions.
Sir, the restrictions are taking their toll on the mental health of migrant workers and pose social risks. Experienced workers might prefer to go home, worsening the manpower shortage and making our economy haemorrhage experienced, more productive workers. We are suffering reputational damage in international news. Al Jazeera quoted one worker as saying: \"I feel very sad about the difference in the lives between me and the rest of the people.\"
Chairman, there are practical reasons to ease restrictions, but it is also the decent thing to do.
Mr Chairman, Sir, there are economic benefits to retaining migrant workers in our economy who are familiar with Singapore and to increase their productivity, which would mean we need to employ fewer.
Currently, a Work Permit holder (WPH) can only transfer to a new job with employers' consent. An exception is the Retention Scheme, which gives eligible workers 30 days to match with a new employer. I support the thrust of this scheme, which is similar to what Workers' Party Members have called for. But it does not go far enough, as it does not apply to all WPHs. I call for it to be extended to all WPHs.
In addition, if their existing employer cancels their work permit through no fault of the worker, the worker should be allowed to stay in Singapore for 30 days to enable him to find a new employer, regardless of whether his employer consents. The worker will be responsible for his own food and lodging during this time. He can elect between joining the Retention Scheme, if eligible, or relying on this window.
An article by non-governmental organisation TWC2 states that many workers had their Work Permits cancelled and were repatriated because their employers had no work but did not allow them to transfer jobs, even though other companies needed workers, worsening the manpower shortage. The 30-day transfer window addresses this. This proposal will not encourage turnover of workers because it only applies if the employer unilaterally decides to cancel a Work Permit.
Second, to grow productivity and incentivise work pass holders to stay with employers, I propose allowing employers to bond them for up to two years in exchange for sponsoring formal training. The length of the bond period can depend on the number of training hours, provided that the duration of training and fees meet certain requirements. ITE could partner BCA, which already runs training courses, to develop appropriate courses to increase our migrant worker productivity.
Sir, upskilling is important in reducing the number of semi-skilled foreign workers needed and, hence, our dependence on foreign labour.
The Chairman: Mr Louis Ng, if you would like to take your two cuts together, please do.
Mr Louis Ng Kok Kwang: Working mothers who breastfeed need support at work. A survey by Singapore's Breastfeeding Mothers' Support Group found that the top reason for stopping breastfeeding was the challenges of expressing milk at work. For those still breastfeeding, they reported difficulty in finding time to express their milk at work. Sadly, the majority of working mothers surveyed could not express milk as much as they had wanted during work.
Laws that guarantee breastfeeding breaks are not new or uncommon. A 2020 study of 97 countries found that 82% of countries had laws for paid and unpaid breastfeeding breaks. Singapore is in the minority of 18% of countries studied that do not legislate breastfeeding breaks. Countries, such as Indonesia, Vietnam, Cambodia, Japan, India, China, the Philippines, Thailand and South Korea, provide breastfeeding breaks at work or reduction of work hours daily. Will MOM support working mothers who breastfeed by legislating to guarantee breastfeeding breaks at work?
Next, I miss my father very much and I regret not spending enough time with him. I especially regret that I did not take him for his many medical appointments in the year before he passed on.
Spend time with those you love. One of these days, you will either say \"I wish I had\" or \"I'm glad I did\".
We all need time to spend with our loved ones, especially when they are not feeling well. With an ageing population, many of us will need more time to look after our parents. The Government clearly agrees with this and introduced parent-care leave in the Civil Service more than a decade ago. It really was time we legislate the same leave for all other workers.
Again, let us not use FWAs to justify not having parent-care leave. If this reason is true, then why do civil servants with FWAs also have parent-care leave? If it is important for civil servants to have both FWAs and parent-care leave, then why not others? We are a family-friendly employer. Now, we need to be a family-friendly Government. We should introduce parent-care leave for all workers.
The Chairman: Mr Sharael Taha.
Mr Sharael Taha: Thank you, Chairman. Can I take my three cuts together?
The Chairman: That depends on whether Mr Abdul Samad is in the House.
Mr Sharael Taha: Alright. So, I will take just my first cut first.
The Chairman: Yes.
Mr Sharael Taha: Thank you, Chairman. In his speech, Minister Lawrence Wong mentioned that the tighter foreign worker policy is more about calibration. He mentioned that it is a calibration to ensure that foreign workers and professionals coming into Singapore are of the right calibre and coming in areas where we really need them, in areas of shortages.
To ensure its effectiveness, we must also ensure fair employment and hiring practices and also fair treatment at the workplace. How are we progressing and legislating TAFEP guidelines to ensure fair employment practices and treatment at the workplace?
The Chairman: Mr Abdul Samad. Not here. Okay, Mr Sharael Taha, next two cuts, please.
Mr Sharael Taha: Thank you, Chairman. The next one will be on advancing the well-being of low-wage workers. Our efforts to uplift low-wage workers have been ongoing for the past decade. It is important to ensure that productivity continues to improve, so that wage growth is sustainable. If real productivity is not achieved, wage growth will drive up costs and make us less competitive in the global market.
Workers have a responsibility to upskill. However, businesses also have a part to play.
In this Budget, we have apportioned significant resources, such as $600 million for the Productivity Solution Grant and $100 million to scale up CTCs to support transformation plans. How can we encourage and support more SMEs to transform their businesses, so that low-wage workers can be deployed more productively with more scope for progression? How can we get business associations to get more SMEs involved?
I am heartened that the Progressive Wage Model (PWM) will be extended and wage increases for low-wage workers will be co-funded under the Progressive Wage Credit Scheme (PWCS). This will be further boosted by the Enhanced Workfare Income Supplement scheme. The qualifying monthly income cap for the scheme has been raised, age eligibility has been extended and the payout increased, especially for people with disabilities.
While companies transformed to drive real productivity growth, how do we encourage low-wage workers to continuously upskill and upgrade? Can we consider a yearly Workfare Income Supplement (WIS) bonus or a tiered supplement scheme, if the worker uses his SkillsFuture credit or attends training or courses yearly to upgrade himself or herself?
The Chairman: Miss Cheng Li Hui. Not here. Ms Yeo Wan Ling.
Ms Yeo Wan Ling: In the recent decade, changing dynamics in the workplace and at home have rendered dual-income families greater ubiquity, with many seeking to outsource household duties in order to allow women to work. This has meant that Singapore's 1.3 million households are increasingly turning to external help, often in the form of full-time foreign domestic workers, to alleviate domestic responsibilities at home. However, there still remains a gap in the market for part-time help.
The Household Services Scheme (HSS), first piloted in 2017 and made permanent in 2021, has been a popular and innovative scheme welcomed by families. This programme allows eligible companies to employ female migrant workers to support part-time cleaning services to households. This flexibility has allowed families who are unable to afford or provide accommodation in their homes for full-time helpers some access to respite care.
Currently, this arrangement is limited to only providing domestic services to households, such as home cleaning. Yet, there continues to be a demand for further support in a household's caregiving needs. Our community's social and aged care needs continue to change and have become increasingly intertwined.
We need to allow our seniors to age in place within their homes and their communities, give young mothers peace of mind when they are at work and support family caregivers with respite care alternatives.
My resident, Mdm P, who is in her 40s, came to see me teary-eyed and tired and shared that she is the sole caregiver in a family of six people. She has three children – one of them has a medical condition – two seniors and a husband who is fastidious with cleanliness. The family is unable to afford a full-time helper as they neither have the space for a live-in helper, nor the budget to provide for full board.
She told me that she would like, from time to time, help in child-minding, assistance in caring for her seniors and support in cleaning her home. In order to have more savings for herself and her family, she takes on food delivery at night after her children have gone to bed. Mdm P's situation is neither unique nor rare.
But we have made strides in augmenting our infrastructural facilities and support systems to advance the caregiving ecosystem. There is also a great deal of untapped potential within the HSS to serve our residents better.
Hence, I invite the Ministry to look into expanding the programme beyond the provision of housekeeping services into offering caregiving support for our families.
Mr Yip Hon Weng: Expanding the HSS is a good way to support households that need help with certain aspects of their family but do not wish to hire a live-in foreign domestic worker. How does the Ministry ensure that there are merits for two distinct schemes and that the policy intent remains for both schemes?
In the area of respite care for seniors, will workers be equipped with skillsets to care for the elderly with special needs and challenging conditions, such as dementia? Will MOM work with MOH to provide training and certification for these workers?
Additionally, some social service agencies specialising in eldercare as well as nursing homes may already provide such services for elderly caregiving. How does MOM work with MOH and MSF to streamline and harmonise the availability of such services and make it easier for the public to assess their options?
Miss Rachel Ong: Chairman, while calls to improve mental health awareness in the workplace are not new, the issue has taken on an added urgency in the last two years, with the pandemic creating new stressors in the workforce.
May I first speak on the stress impact on two groups of people in our workforce. First, the workforce that works remotely. Second, our educators.
Work-from-home and hybrid work arrangements are at an accelerated pace. While this has raised work-home flexibility for some households, this also means the lines between work-life and life become increasingly blurred for some and for others, the lack of suitable workspace in their home can take a further toll on the mental health of many employees.
In some nations, the negative impact of remote working on mental health of employees has led to implementations of new labour laws in Europe.
Given that hybrid work arrangements are likely to stay and for good reason, I would like to ask if the Government also set in place guidelines and policies that safeguard the mental wellbeing of our workers.
Our educators. In a 2021 survey by Singapore Counselling Centre, more than 80% of teachers surveyed say that their mental health has been hurt by the pandemic. From the adjustments to home-based learning in 2020, the stressors our educators in preschool through to Junior College have also evolved over the last two years, with new additional roles, on top of e-learning lesson development.
Our teachers took on partial roles as safe management officers, MOH officers and social workers. They are tasked with enforcing evolving safe management measures while finding ways to keep lessons engaging with minimal interaction between students. When students started getting COVID-19, teachers were tasked to inform parents of the cases and monitor the Antigen Rapid Test (ART) status of students.
In addition, with the pandemic's negative impact on the students' well-being, our teachers have also been tasked with needing to check in with students more intentionally and this is despite restricted in-person time allowed outside of class.
Additionally, with teachers also falling ill or being on Health Risk Warning (HRW), they cover each other's duties, thus taking on additional load. This is especially significant in our childcare centres.
May I thank our educators for the sacrifices that they have made. I know that the well-being of this large population of our workforce would be looked into.
There is also a need to continue to destigmatise mental illness at the workplace. While some workplaces offer counselling services as mental health support, many employees do not seek help promptly and hide their illness for fear of being overlooked for a promotion or being treated differently by colleagues.
This fear is understandable. The definition of what strong mental health is needs to change. Strong mental health is not about being unaffected by mental strains but knowing when to seek help.
Some employers are concerned that those facing depression and other mental disorders result in lower productivity at work but may not realise that those who are seemingly highly productive can actually be mentally strained. Productivity should not be viewed as the key indicator of a person's mental wellness and those who seek help with their stressors should not be viewed as weaker than those who do not.
The Chairman: Are you finished?
Miss Rachel Ong: Yes. Can MOM update on the plans to better support employees' mental wellbeing at the workplace and to support the employment and recovery of persons with mental health conditions transitioning back to work? Thank you, Chairman.
Mr Yip Hon Weng: Many of our Singaporean workers want FWAs to continue post-COVID-19. Failure to accommodate would lead to an outflow of talent, especially with Singaporeans being able to work remotely for overseas companies.
Likewise, foreigners are able to work remotely for companies based in Singapore. Such cross-border virtual employment can complicate labour laws, CPF obligations and taxation matters.
What are we doing on this front to ensure that our laws keep up with the trends?
I understand that the legislation of hybrid workplaces is not the most tenable at the moment, lest we impose too many restrictions on businesses. I am glad that the Tripartite Advisory on Mental Well-being introduced guidelines for employers to set reasonable expectations for after-hours work communications. But besides guidelines, we should do more to nudge companies in the right direction. Other countries have started implementing new work laws to cater to this trend.
For example, in Portugal, employers are prohibited from contacting employees after office hours. Written contracts for teleworking arrangements, equalising rights for remote and on-site employees and requiring employers to cover remote work expenses are amongst the popular items in remote working legislations around the world.
Are we learning from other countries and exploring some of these new laws to update our legal framework?
Ms Yeo Wan Ling: COVID-19 has encouraged novel ways of working. Many firms have made FWAs a part of their new normal, such as working from home, staggered hours and compressed work weeks and varying work duties. As more companies experience success with this transition, especially when FWA measures allow staff to enjoy better work-life harmony without compromising on productivity, they have been more open to increasing the scale of policies that offer greater work-life balance and flexibility to workers.
Indeed, surveys have shown that nearly 80% of our workers hope that their employers will continue offering this flexibility in a post-pandemic age.
Although COVID-19 is here to stay for the foreseeable future, it is pertinent to ensure that beneficial practices adopted during this time will continue to be enforced.
Given the advantages and demands of FWAs amongst workers, how will the Ministry be encouraging employers to sustain the implementation and expansion of these policies in the long run even after the pandemic has abated?
Beyond making work-life harmony policies a permanent mainstay in the workplace, it is equally important that all aspects of FWAs benefit both employers and employees and remain fair for both parties involved. This means that employers, on their part, should keep an open mind while employees should exercise responsibility while using FWAs.
However, potential challenges inevitably remain, such as in monitoring performance with remote working.
In light of this, how will the Ministry ensure that employer appraisals are conducted in a way that is fair to our workers?
The prevalence of FWAs and work-life harmony (WLH) policies differs greatly across professions and industries. For instance, various reports have suggested that occupations in the PMET sector are more suited for FWAs since their work hinges on more access to technology than physical interaction. However, FWAs have been more difficult to implement in industries that need it the most, especially frontline workers and employees involved in shift work.
As we acknowledge the imperative to better WLH measures, how will the Ministry extend FWAs to workers across all sectors of employment, particularly in industries where progress has been slower?
Mr Sharael Taha: Chairman, inclusive growth should create opportunities for seniors, workers with special needs, back-to-work mothers and those with caregiving responsibilities.
With the increasing prevalence of FWAs, including work from anywhere and flexible hours during the COVID-19 pandemic, how will MOM encourage employers to sustain these arrangements post-COVID-19? How can we use this opportunity to make our workforce more inclusive and make FWAs a viable option, especially for this group of workers? How can we use this opportunity to realise the latent potential from this group of individuals and encourage more to join the workforce?
Can the Ministry consider promoting FWAs, flexible work hours and work-sharing to create opportunities for this group of individuals? Can we create second careers for our seniors who are still able to work but do not want to work full-time?
Mr Edward Chia Bing Hui (Holland-Bukit Timah): Mr Chairman, Sir, COVID-19 has changed the way we work, bringing about a paradigm shift in where and how we work. This shift includes working remotely, flexible working hours and optimising a mix of virtual with face-to-face meetings.
As we transit into a COVID-19 endemic environment, further changes in work conditions could create stressors to our employees' mental well-being. Many workers will face the challenge of managing their work-life balance in a hybrid work model, thereby compounding levels of anxiety. Conversely, these shifts could also present opportunities for better work-life harmony and encourage those who have left the workforce due to caregiving needs to return to the workforce.
To tap on the opportunities and mitigate the downsides, there needs to be continuous efforts to support evolving HR practices.
An important question here is how our tripartite partners continue to support our HR practitioners with progressive practices, which will lead to effective work-life harmony, better mental wellness outcomes for workers, thereby leading to better productivity and better business outcomes.
My proposal is to have a common accreditation for the HR industry. This will set the foundation for workers' future work arrangement as companies respond differently to this new reality. This proposal bears similarity to one of the recommendations by the NTUC-SNEF PME Taskforce on enhancing fair employment practices through improving HR standards. This ensures that there is a standard recognition of good HR practices across the board.
There have been ongoing efforts made in providing FWAs for employees who are non-frontline and in non-shift roles. These efforts, therefore, should be translated to include more frontline and shift workers because such jobs will only increase.
As we work towards aligning these common HR practices, I would also like to raise questions on how will MOM encourage employers to sustain this increasing prevalence of FWAs during and post-COVID-19. What are the areas in the Employment Act that require a review to recognise these changes to work arrangements?
MOM should consider framing clear guidelines and consider updates to the Employment Act for such practices, in partnership with SBF, SNEF, NTUC and the various HR professional associations.
For this to work, we need to support our SMEs because, despite much effort over the years, many still lack solid HR policies and capabilities due to resource constraints. These SMEs often do not have policies and procedures in place to be able to adapt to new hybrid environments or necessary HR practices. As their challenges are real, we need some fresh ideas on equipping these groups of enterprises with forward-thinking HR practices. With that, I would like to raise the following questions pertaining to our SMEs.
What has been the assessment of the Government of all previous efforts to create support services for HR for SMEs? Would a HR-as-a-service, similar to IMDA's CTO-as-a-service, be worth considering? And if previous efforts to bring SMEs to such services had resulted in a lacklustre response, could there be ideas where our relevant Government agencies design solutions that are brought directly to SMEs?
Another critical area of our HR policies relates to the foreign workforce component. Singapore needs a resilient foreign workforce that can withstand future global and regional disruptions. As structural changes continue to take place, MOM could consider how it can further facilitate companies' decision-making on their foreign workforce strategy so that it is more than just complying with set policies. How a company determines the best sources for their foreign workforce, in line with the diversity of capabilities required to complement our local expertise, is a strategic choice that cannot be underestimated. It impacts how companies will be able to acquire the talent and skills needed to compete and this requires more collaboration with MOM, trade associations and SME management.
The shift in our work environment is real and, therefore, how we work together requires innovative solutions. HR has always been important, but the nature of its value is fast-evolving. This is the time to set guidelines for FWAs, enforce workplace mental health wellness, engage SMEs for deeper capability building, design strategic conversations for foreign manpower choices and encourage our relevant Government agencies, such as ESG and WSG, to triple-down in their joint engagements for results.
The Chairman: Mr Patrick Tay, if you would like to take your two cuts together, please do.
Mr Patrick Tay Teck Guan: Chairman, the human capital/human resource function is particularly vital, especially as we adapt to the \"next normal\" of work in the workforce and at workplaces. Our human capital/HR professionals play a crucial role in ensuring that every company and business has in place fair, responsible and progressive practices for their workforce. One of the key recommendations from the NTUC-SNEF PME Taskforce report is to enhance fair employment practices through improving the human capital/HR standards among the human capital and HR professionals.
I, therefore, urge MOM to seriously consider supporting and increasing the take-up of the Institute of Human Resource Professionals (IHRP) certification for these professionals. This is so that the majority of these professionals operating in Singapore can be equipped with a rudimentary working knowledge of the norms, standards and practices, including how tripartism works in Singapore as well as how to work with unions and the Labour Movement in Singapore. In the longer term and in the future of work, some form of accreditation, besides certification, as highlighted by Member Edward Chia, will also be beneficial for this important profession.
The Human Capital Partnership (HCP) Programme is a tripartite initiative that brings together a community of exemplary employers in Singapore who have progressive employment practices in their organisations and are committed to developing their human capital.
I wish to ask MOM for a progress update of the HCP since the start of the programme and what are its plans to further enhance and make the programme even more pervasive. Does the award of the HCP Mark demonstrate that these employers are employers of choice who value their people and are committed to investing and developing their employees across all levels? I am asking whether there will be a regular review of the key qualifying criteria for the HCP Mark and whether those awarded the Mark can have their mark removed if they fail to meet the criteria.
As we evolve and adapt to new post-pandemic work norms, good labour-management relations as well as the introduction of more forward-looking and progressive practices, such as PME representation and fair work arrangements, can be valuable factors to consider in awarding the mark.
The Chairman: Replies from the Ministry. Minister Tan See Leng.
The Minister for Manpower (Dr Tan See Leng): Mr Chairman, I thank the Government Parliamentary Committee (GPC) Members of Parliament and the others who spoke in support of our workers and our businesses.
Over the past two years of battling COVID-19, our manpower policies had focused on shoring up local employment and keeping foreign workforce policies responsive. We supported businesses in hiring and investing in the skills of a wider pool of jobseekers and helped many jobseekers move into new opportunities. Through updated work pass requirements, we also ensured local-foreign complementarity and spurred business transformation.
These efforts helped mitigate the impact of COVID-19 and facilitated the recovery of our economy. Despite a slight dip in 2020, the median gross monthly income of residents has risen to above pre-COVID-19 levels. Resident unemployment rate has come down from the high of 4.8% to 3.2% today. Given the Ukraine war, we are cautiously optimistic that the unemployment rate will fall back to pre-COVID-19 levels in the months ahead.
To capture the opportunities created by a recovering global economy, businesses are starting to increase their hiring. For the full year 2021, total employment saw an encouraging rebound of 40,800, close to 41,000. We want to provide the necessary support and incentives to restructure our workforce so that we can emerge stronger.
We want to build an inclusive and comprehensive labour market, where businesses can access the manpower needed for their growth and where continued growth leads to a more equitable and progressive society.
The recovering economy provides a better and firmer footing to do so now. If we get this with surgical precision and the right timing – in Chinese, it is 天时地利人和 – Singapore will be a top global city brimming with opportunities for our businesses and our people.
Against this backdrop, MOM's priorities will focus on the three \"Up\"s: Upgrade, Uplift and Uphold.
The first focus is to upgrade the capabilities of locals and the complementarity of foreigners. We will strengthen support for locals so that they are equipped with skillsets to take on jobs of the future. Through our foreign workforce policies, we will ensure our businesses have access to the complementary manpower that they need.
For our growth to be sustainable, we must ensure every Singaporean worker benefits from Singapore's growth and no one is left behind. Hence, our second focus is to uplift our vulnerable workers and mature workers. We will implement the recommendations from the Tripartite Work Group on Lower-Wage Workers and double down on our efforts to uplift these workers. Senior Minister of State Zaqy Mohamad will elaborate more in his speech. Senior Minister of State Koh Poh Koon will share our approach to uplifting self-employed persons and strengthening support for mature workers.
Finally, every one of us desires a fair opportunity to contribute and to thrive at work, which brings me to our third focus – to uphold inclusive and progressive practices at the workplace. We will continue to support our workforce to meet caregiving needs at home, support their mental health and well-being. Minister of State Gan Siow Huang will elaborate more in her speech. And we will continue with efforts to transform the migrant worker ecosystem to improve their physical, social and mental well-being. This will be further covered by Senior Minister of State Koh Poh Koon later on in his speech.
Let me start by sharing how we intend to upgrade the capabilities of locals and complementarity of foreigners. I will spend the bulk of the speech today elaborating on this segment. As mentioned, Senior Ministers of State Koh Poh Koon and Zaqy Mohamad and Minister of State Gan Siow Huang will elaborate further on our other two focus areas.
Structural shifts in the economy mean new growth opportunities for our businesses and workers. As highlighted in the cuts by Mr Desmond Choo and Mr Dennis Tan, some of the shifts include the greening and digitalisation of our economy. The green economy is an area of growth that we are taking very seriously. As Minister Gan Kim Yong shared earlier, we have developed a whole-of-Government green economy strategy which looks into the jobs and skills that will be transformed and created as a result of the green transition. It is thus important that our workers are equipped with the necessary skillsets to thrive in this fast-changing environment.
Helping our businesses to transform and preparing our workers for the future of work have been longstanding priorities for this Government. Since 2016, we have rolled out Industry Transformation Maps, or ITMs, for 23 sectors to chart their transformation journey. As Minister Gan Kim Yong has shared, the Government is working closely with industry stakeholders, unions and academia to update our ITMs to address emerging trends and opportunities.
In 2021, we announced that Jobs Transformation Maps (JTMs) would be launched to map out the impact of technology and digitalisation on individual jobs over the medium term. These provide very detailed, job-level insights to help businesses and workers prepare for future jobs and skills.
To support our scale-up of these programmes, I set up the Jobs Taskforce in September last year to derive strategies to increase the placements of local workers into our key sectors, such as ICT, Manufacturing and Financial Services. For example, our Career Conversion Programmes, or CCPs, support employers to reskill jobseekers and workers for in-demand job roles. They provide targeted support to workers whose job roles might be at greater risk of redundancy.
One such individual is Mr Cheng Kim Ann, a 30-year-old who previously worked on aircraft maintenance. He had just completed his Degree in Mechanical Engineering and wanted to seek out opportunities in the aerospace sector when COVID-19 hit. He re-evaluated his career options and came across a job opening as a manufacturing and equipment engineer with Micron Technology. To help Mr Cheng assimilate into his role, the company put him on the Career Conversion Programme for the Electronics Sector in November 2020. During the three-month programme, Mr Cheng was introduced to the processes in the semiconductor industry which he had to apply in his new job role. Coupled with the on-the-job training provided by the company, Mr Cheng quickly picked up new skills required for the industry and moved on to learning more advanced skills.
During the pandemic, the SGUnited Jobs and Skills Package and the Jobs Growth Incentive were introduced as extraordinary measures to preserve human capital and expand local hiring. All these initiatives helped to cushion the impact of COVID-19 on the labour market and provided much-needed relief for the businesses to meet their manpower needs. More than 174,000 local jobseekers have been placed into jobs and skills opportunities as at end-December 2021. All in all, a total of $11 billion has been allocated to support these initiatives.
As announced by the Minister for Finance, we will continue to provide support for businesses and worker segments, such as mature workers. However, moving forward, we will be tailoring our support levels in line with the improved economic and labour market situation and Senior Minister of State Koh Poh Koon will elaborate further in his speech.
Ultimately, support for workers will require a whole-of-society effort. I urge all of our businesses and all of our employees to support our efforts to help you do better. Furthermore, the Government will always provide the necessary support for businesses. But businesses must be willing to set aside time and resources to train up the local workforce. And employees must also be willing to reskill and upskill.
The support for businesses under the ITMs is complemented by our foreign workforce policies. Foreign workforce policies are key levers to keep our labour market tight and incentivise businesses to transform, move up the value chain and maintain their competitive edge.
Let me now move on to our foreign workforce policies. Last September, we debated extensively on the issue of foreign manpower in this House. Parliament affirmed the need for Singapore to stay open and connected to the world and for the Government to continue updating its policy levers to secure the well-being and livelihoods of our people.
MOM has been working steadily on a review of our foreign workforce policies. We remain committed to our goals of upgrading our workforce, comprising a strong Singaporean Core and a high-quality and diverse foreign workforce.
After careful deliberation and extensive consultation with our Tripartite Partners, we are ready to make several important updates to our work pass framework. The updates aim to achieve the following.
One, to bring in a higher-quality foreign workforce with specialised skills, networks and expertise to complement our local workforce.
Two, to support employers that invest in reskilling their workers and the transfer of capabilities to build a strong Singaporean Core.
Three, to ensure diversity in our foreign workforce, because a truly open and connected labour market must also be able to draw the best from all around the world.
And four, to drive productivity growth, while keeping our reliance on foreign labour at a sustainable level.
Above all, these updates will ensure that Singapore can continue to remain open and connected to the world.
As borders start to reopen and labour demand picks up, I want to lay out the roadmap for these changes, which will be phased in gradually. This is to give businesses the certainty they need to plan ahead as they gear up for growth.
Let me start with the Employment Pass, or EP. At the EP level, we need to bring in highly-skilled foreign professionals, as part of a strong team of locals and foreigners, to grow our economy and to create more good jobs. Hence, we do not set quotas or levies on EPs. Instead, we focus on ensuring quality.
As announced in the Budget Statement, we will aim to ensure that EP holders are comparable in quality to the top one-third of our local PMET workforce. To do so, we will set a benchmark for the EP qualifying salary based on the top one-third, or the 65th percentile, of local PMET wages. And we will revise our EP qualifying salaries based on this benchmark.
The EP minimum qualifying salary will be revised from $4,500 to $5,000. For the Financial Services sector, which has higher wage norms, this will be revised from $5,000 to $5,500.
Given that local PMET wages rise with age, the qualifying salary will also rise with age, to reflect the years of work and experience.
To give businesses sufficient time to adjust, these changes will apply to new EP applications from 1 September 2022 and to renewal applications from 1 September 2023.
We know, and we empathise, that the labour market for skilled workers is sufficiently tight. So, this latest move is not intended as a tightening measure. Instead, it is part of MOM's regular updates to ensure that our qualifying salary keeps pace with local wage growth, so that foreigners are not coming in just because they are cheaper than local PMETs.
As this is a regular updating of our policy, most EP holders will not be impacted by these changes, because, today, they earn well above the qualifying salary. There are, however, some EP holders who do not meet our quality bar. This group will be impacted, but this is how we constantly ensure that we maintain a high-quality EP stock that complements our local workforce.
More importantly, we have also set a clear benchmark for the qualifying salary, so that our businesses will have greater transparency, clarity and predictability on how it will be adjusted in future.
Businesses should expect regular updating of the qualifying salary to keep pace with local wage trends. We will, of course, consider prevailing economic conditions when making a decision to update the qualifying salary and provide sufficient lead time before each change is effected.
While the qualifying salary is simple to understand and easy to administer, it is also a blunt tool. There are limits to relying solely on it to select complementary foreign talents. Mr Liang Eng Hwa and Mr Yip Hon Weng would like to know whether other factors could be taken into account to more holistically assess a candidate's complementarity. This is something that MOM has considered and studied carefully for quite some time. We are now ready to introduce a new Complementarity Assessment Framework, called COMPASS.
COMPASS is an acronym. The C-O-M-P stands for Complementarity and then the Assessment Framework – COMPASS. COMPASS is a points-based system that considers both individual and firm-related attributes to holistically evaluate an EP applicant's complementarity. It is designed to be a transparent system, so that businesses have clarity and predictability for manpower planning.
The NTUC-SNEF PME Taskforce recommended a points system for EPs last year. Mr Patrick Tay has also raised this earlier. I am glad that there is strong tripartite support for COMPASS.
With the introduction of COMPASS, the future EP framework will comprise two stages. First, applicants must meet the EP qualifying salary. Second, they must also score sufficient points under COMPASS, in order to qualify for an EP.
With your permission, Mr Chairman, may I ask the Clerks to distribute a copy of the handout on the COMPASS construct, please?
The Chairman: Please do. [A handout was distributed to hon Members. Please refer to Annex 1.]
Dr Tan See Leng: Let me briefly explain how COMPASS will work. Members can rest assured that all the details will come later.
If I could ask Members to refer to the first page of the handout, under the section \"How COMPASS works\". Under COMPASS, EP applications will be assessed based on four foundational criteria: (a) the candidate's salary relative to local PMET wages in their respective sectors; (b) the candidate's qualifications; (c) the firm's nationality diversity and whether the candidate improves the firm's nationality diversity; and (d) the firm's support for local employment compared to their industry peers. These are termed criteria 1 to 4, or C1 to C4.
Beyond these four foundational criteria, we are mindful of two scenarios that warrant special attention.
One, where the candidate possesses skills that our workforce has a shortage of, such as AI developers and cybersecurity specialists. Our locals may have such skills, but we do not have sufficient locals to fulfil the demand.
Two, if the firm is undertaking ambitious innovation, hub or internationalisation activities in partnership with the Government, in line with our strategic economic priorities.
In such cases, it would be in Singapore's interest to allow the firm to bring in this candidate. So, we will accord bonus points for these two areas – these are termed C5 and C6. MOM will work closely with our Tripartite Partners – NTUC and SNEF – and economic agencies to assess industry needs, so that COMPASS is kept current and responsive.
An EP application that \"meets expectations\" on the four foundational criteria would pass COMPASS.
On the other hand, if an application fares \"below expectations\" in certain foundational criteria, it needs to make up for it by \"exceeding expectations\" on other foundational criteria or by scoring bonus points. All of the criteria – they are tradeable; none is a veto factor.
Let me give you an example. Consider a firm in the IT sector that scores \"below expectations\" on both support for local employment and diversity. It has a low PMET share relative to its industry peers and is bringing in a candidate whose nationality is already over-represented in its firm. If the EP candidate only \"meets expectations\" on salary and qualifications and is performing a generic job role, the application will not score enough points to pass. However, if the firm is bringing in a candidate in an area where skills shortages exist, the application could make up for it with bonus points. Alternatively, the firm can hire a candidate from a nationality that improves its diversity and \"exceeds expectations\" on diversity. This will allow the candidate to pass.
In this way, COMPASS incentivises firms with a weaker workforce profile to strengthen their local workforce and diversify, so as not to be disadvantaged. At the same time, it still allows them to access highly complementary EPs in areas where skills shortages exist.
Members of the House, let me be clear – COMPASS is not designed to make it harder for businesses to obtain an EP. A good majority of the applications today would not have issues – this demonstrates that our businesses, in general, are progressive and our policies thus far have brought in complementary EP holders.
Some firms, however, would need to make adjustments under COMPASS. And they would know exactly which areas to improve on and how to respond accordingly, given the transparency, clarity and predictability of COMPASS.
SMEs may be concerned about what COMPASS means for them. Will they be disadvantaged relative to bigger firms? We recognise that for smaller firms, their workforce ratios can change significantly and drastically with only a few personnel changes. Hence, for this practical reason, firms with less than 25 PMETs will automatically be scored as \"meeting expectations\" on firm-related attributes.
Some may notice that the firm-related attributes under COMPASS are considered as part of MOM's Fair Consideration Framework, or FCF, Watchlist today.
COMPASS builds on our current efforts under the FCF, by applying these considerations upstream, at the point of application. Businesses will have clarity on what these considerations are.
Once COMPASS is fully rolled out, the FCF Watchlist will be re-purposed to focus on engaging businesses that score poorly on the firm-related attributes. We will walk with these firms, to help them to strengthen their workforce profile and to adjust to the new framework.
Mr Patrick Tay will be reassured that even with the changes to the FCF Watchlist, MOM continues to take fair consideration seriously. The FCF Job Advertising requirement will continue to apply. Employers must practise fair consideration in their selection of candidates and MOM will not hesitate to take action against employers who are found to be discriminatory.
We are also working on plans to enshrine existing fair employment guidelines into workplace fairness legislation.
We recognise that the introduction of COMPASS is a significant change and companies will need sufficient time to adjust to it. Hence, COMPASS will come into effect for new EP applications from 1 September 2023 and for renewal applications from 1 September 2024.
Coming from the private sector myself, I fully understand and appreciate the importance of transparency. Following this announcement, we will publish the COMPASS scoring rubric on MOM's website. We will progressively roll out educational materials and further details on specific criteria. When COMPASS is in place, employers can use the Pre-Assessment Tool to obtain a \"balanced scorecard\" of how each application fares prior to submission, so that they know what areas they must improve on.
In summary, we have designed COMPASS to be balanced and reasonable. For employers, they will find that the system is responsive to industry's needs and easier to navigate with a transparent, predictable and clear framework. It also recognises their efforts to build up a strong local pipeline and maintain a diverse foreign workforce.
For our local workforce, they will have greater confidence that the EP holders here are of high calibre and will better complement their teams, and that their employers will also take efforts to develop their local pipeline and to maintain workforce diversity seriously.
And, lastly, for Singapore, COMPASS will allow us to remain open to complementary talent in short supply here so that we can grow our frontier industries to bring us into the next stage of growth.
Mr Leong Mun Wai continues to assert that the Government's policy is poor, because its statistics are poor. As the Minister for Finance said in his round-up speech, we get the sense that the persistent requests coming from him for more information are red herrings. They are distractions from the key problem at hand. During the 6 July Ministerial Statement, I had already shared that the majority of local PME growth over the last decade went to Singaporeans born in Singapore. I repeated this in Parliament in September and stated that this is the same for PMETs. But Mr Leong Mun Wai persists in drawing these divisions, asking for statistics to be split into original citizens, new citizens and Permanent Residents (PRs).
I have also alluded, at that particular point in time that, as a society, we should not constantly be drawing such lines. Many of our new citizens and PRs share family ties with Singaporeans, or they had studied, worked, contributed and have lived here for some time. They contribute to our strength as a society and as an economy. Singapore is an immigrant nation and openness is one of our society's core strengths that have defined who we are. I urge Mr Leong Mun Wai – have a care – please do not undermine the cohesiveness we have painstakingly built over the years and please ask people who share your point of view to also have a care for the rest of us.
Let me emphasise once again – Singapore is and will always be committed to remaining open to foreigners who complement our local workforce and who are able to add vibrancy to Singapore's economy.
For the framework, we think deeply, we consult widely because we know that whatever we do, whatever we implement, will have a significant impact on businesses, locals and Singapore. And once we are confident that our proposals are sensible and implementable, we move.
That is why we earlier on rolled out schemes, such as Tech@SG and Tech.Pass, to meet strong demand for skilled workers in the tech sector. COMPASS will buttress these schemes to facilitate access to complementary talent.
We have also received feedback from employers who are concerned about bringing in young, high potential employees. These are big global firms which have international rotation programmes, where they send both foreign and local employees for overseas postings to gain exposure.
We will make sure that our EP framework has the flexibility to allow for such rotations. Therefore, we are piloting the Global Rotation Scheme. This scheme will facilitate the entry of high-potential employees from abroad. But, in return, these companies must also post our local Singaporeans abroad on the same leadership development programme. We are starting with a small group of firms and we will expand the scheme once we have worked out the full details.
At the S Pass level, foreign workers perform specialised, technical roles. These are skilled jobs with good opportunities, which many of our Polytechnic and ITE graduates have an interest in.
We want to continue to ensure that our locals have a level playing field to take up these roles and that S Pass holders are coming in to fill skills gaps and not just because they are cheaper. We also want to spur transformation and job redesign efforts. And this is why we have in place controls for the S Pass, namely qualifying salaries, levies and quotas.
As announced, we aim to ensure that S Pass holders are comparable in quality to the top one-third of the local Associate Professionals and Technicians, or APT, workforce.
How much a firm is willing to pay is a practical indicator of the quality of the S Pass holder.
Thus, we will benchmark the cost of hiring an S Pass holder to the top one-third of local APT wages. We will raise both the S Pass qualifying salary and levies to reach this benchmark.
This is a bigger change, compared to the EP salary criteria. So, we will move towards this goal over three steps, to moderate the impact to businesses.
As a first step, we will raise the S Pass minimum qualifying salary from the current $2,500 to $3,000 and introduce a higher S Pass qualifying salary for the Financial Services sector at $3,500. These changes will be implemented for new applications from 1 September 2022 and for renewal applications from 1 September 2023. Similar to the EP, the qualifying salary for older S Pass holders will be higher.
Thereafter, we will raise the S Pass minimum qualifying salary for new applications in September 2023 and in September 2025. Each increase will apply to renewals a year later. The exact salary values will be announced closer to implementation date, based on the prevailing local APT wages.
Just to give a rough sense, based on current local APT wage levels, companies should expect the economy-wide S Pass minimum qualifying salary to be at least $3,150 in September 2023 and to at least $3,300 in September 2025.
MOM will also progressively increase the S Pass Tier 1 levy rate from $330 to $650 over three steps, again, in tandem with the S Pass qualifying salary increases. It will be raised to $450 in September 2022 and then to $550 in September 2023 and $650 in September 2025. The Tier 2 levy rate will be maintained at $650.
As with the EP, the setting of a clear benchmark will give businesses clarity and predictability on how the S Pass qualifying salary and levies will continue to adjust over time.
Mr Chairman, there have been concerns about the increase in qualifying salaries. Locals have asked if their foreign colleagues will, therefore, automatically get a pay raise, at their expense. The short answer is no. Please let me explain.
Take a firm that hires 10 employees – nine locals, one S Pass holder. These employees are all doing the same job, earning the same pay of $2,500. Will the foreigner immediately get a $500 pay increase, just because of the increase in the qualifying salary? No.
First, the higher qualifying salary will only apply to EP and S Pass renewals in September 2023. That is about a year and a half from now. I earlier mentioned that this could even stretch out to September 2026, depending on when the S Pass holder is due for renewal. That is about four and a half years away at the extreme. The firm will have ample time to think about alternative options, for instance, finding or training up another local. This is especially so if the foreigner is not bringing in enough value to justify the pay increase. Businesses are, ultimately, profit-driven and they will not just blindly raise costs.
Employers have said that it is difficult to find locals in a particularly tight labour market, given the low unemployment rate. But as I had said a few days back, there is still significant untapped supply from both women and seniors outside the workforce. With our population rapidly ageing, we would want to encourage people to work longer when they are able to and should they choose to. My constant exhortation to everyone is to bring them back into the workforce, encourage them, give them an opportunity. If businesses can do more to redesign jobs to make the jobs more flexible, more inclusive, I think they can attract more of these segments of workers.
Next, there are quotas at the S Pass level. If the firm insists on giving the S Pass holder a pay increase without fairly reviewing the pay of its locals, it could find itself in a difficult situation. If the locals leave because of the pay discrepancy, the firm may find that it does not have enough quota to retain the S Pass holder at the next renewal. And let us not underestimate the negative impact on productivity of the company when employee morale is poor, or if the company finds itself shorthanded.
Finally, what happens if, in spite of all these, employers still unfairly raise the foreigner's pay, without fairly reviewing the pay of locals?
We know, on the ground, there will be egregious cases such as these. In such situations, locals can take their grievances to TAFEP. And TAFEP will engage the firm to conduct a proper salary review, because unfair remuneration practices run counter to the Tripartite Guidelines for Fair Employment Practices (TGFEP).
So, you can see, there is a whole thought process that the firm will go through. If after all of these, the firm still chooses to retain the S Pass holder, it would be because the value that the S Pass holder brings to their operations more than justifies the higher salary.
On the other hand, suppose we left the S Pass qualifying salary untouched at $2,500. Yes, the foreigner may not get the pay raise, but our locals' wages will stagnate as well. The firm can continue to renew the S Pass holder on the lowest salary required, as long as he is willing to accept it and the firm will then have little reason to raise the pay for the other nine locals who are doing the same job.
As the Minister for Finance said in his Budget round-up speech, keeping the cost of employing foreign workers low ultimately ends up depressing the wages of local workers.
Some locals tell me that they appreciate the need to raise the cost of hiring S Pass holders but asked us why we could not load it all on levies instead. In that way, the foreigner will not get a pay increase and the Government will get more revenue.
But let us just be clear here. We are already increasing S Pass levies. But this is asking us to increase it even more. It does sound like a solution that we can adopt. But why did we not do it?
Suppose we load all the cost increases onto levies. The levy will have to be much higher than $650. And these levies will be applied equally to all S Pass holders. The more productive firms that hire high-quality S Pass holders well above the qualifying salary will face the same cost increase as less productive firms who are paying just the bare minimum. Both groups are equally affected. Raising levies makes no distinction or differentiation between them – between the productive ones and the less productive ones.
And if all firms have to pay more to the Government, they will have less to pay their workers. Will they still have the ability to incentivise their employees to take up new and bigger job roles as they transform?
Members of the House, there are no perfect solutions. I hope that we do not let perfection be the enemy of the good.
That is why, after weighing our options carefully, we moved – raising both the qualifying salary and the levies to safeguard good employment outcomes for our locals.
We know that the changes to the S Pass framework are not trivial. But we must do what is difficult now, to build a stronger and more inclusive economy for all.
With the S Pass moves, businesses that are reliant on low-cost S Pass holders will have to adapt. They will have to redesign their operations to become more productive. They will have to improve the pay and working conditions for these jobs. And because of this, they will be in a stronger position to attract locals.
I understand that SMEs are more constrained in terms of financial resources and many are worried about these moves. I have previously spoken about how we will support SMEs through this transition.
They can tap on schemes, such as the Support for Job Redesign under the Productivity Solutions Grant (PSG-JR). To reskill existing employees and new hires to take on redesigned job roles, they can also tap on programmes, such as the Career Conversion Programmes (CCPs). There are many of such schemes out there.
SMEs will not have to undertake this transformation journey alone. We will walk with them.
Let me now move on to the Work Permit changes. At the Work Permit level, migrant workers take on important roles which locals are less keen on doing. Yet, COVID-19 has shown us that it is not sustainable to continue to rely heavily on foreign manpower, especially at the semi-skilled level. Excessive reliance will leave businesses vulnerable to various disruptions.
In order for our businesses to survive and thrive, they will need to transform, they will need to increase their productivity and, ultimately, reduce their reliance on Work Permit holders. To support these transformation efforts, we will make further changes to the foreign workforce policies for the Construction and Process sectors from 2024.
First, we will reduce the Dependency Ratio Ceilings, or DRCs, for the construction and process sectors from 1:7 to 1:5, to nudge the sectors towards reducing reliance on migrant workers and improving the productivity of workers. That is a reduction from 87.5% to 83.3%.
Second, we will dismantle the Man-Year Entitlement (MYE) framework, to reduce allocation inefficiencies.
Third, we will revise the levy structure for both sectors. To incentivise businesses to adopt more productive technologies, such as Design for Manufacturing and Assembly (DfMA) and employ more productive workers, levies will be lowered for off-site construction and higher-skilled workers. The Minister for National Development will share more in his Committee of Supply speech.
The changes will help support the sectors' transformation and automation. To help defray costs to adopt automation, businesses can tap on grants, such as the Enterprise Development Grant and the Productivity Innovation Project.
The changes to our foreign workforce policies aim to strengthen the complementarity between local and foreign workforce at the EP and S Pass level and to spur industry transformation at the Work Permit level.
I understand that Mr Cheng Hsing Yao and Ms Janet Ang suggested calibrating our foreign workforce policies further to address persistent shortages in certain sectors.
We already do so today. Sectors, such as Construction and Process, have higher foreign worker quotas as we recognise that fewer locals join these sectors. We also exercise flexibilities to support essential services like healthcare and the cleaning of public housing estates. Going forward, we will adopt an even more targeted approach by providing flexibilities to businesses that contribute to our economic priorities and in job roles where there are more pressing manpower needs but fewer locals.
To support the growth of businesses that contribute to Singapore's strategic economic priorities, MOM is supporting MTI and participating economic agencies to launch the Manpower for Strategic Economic Priorities, or M-SEP scheme. The scheme will provide such firms some flexibility to hire S Pass and Work Permit holders beyond the prevailing DRCs for a limited period of time.
For a start, MTI and participating economic agencies will support firms that meet their criteria of undertaking ambitious investment, innovation or internationalisation activities. This would include firms that participate in existing schemes, such as ESG's Scale-up SG and EDB's Research and Innovation Scheme for Companies.
In addition to supporting our strategic economic priorities, we will require these businesses to commit to developing our local workforce. The details are being worked out and we aim to introduce the scheme later this year.
In addition, we recognise that some businesses hire rank-and-file workers on S Passes due to the source restrictions for Work Permit holders.
With the moves to increase the benchmark for S Pass quality, MOM will allow businesses in the Services and Manufacturing sectors to hire some of these S Pass holders on Work Permits. We will introduce a Non-Traditional Source (NTS) Occupation List, which is a tight list of rank-and-file occupations where employers will be allowed to hire NTS foreign workers on Work Permits.
The list will be introduced on 1 September 2023. The list will include occupations, such as welders, food processing workers and specialty chefs. I know many enjoy the multicultural cuisines in Singapore. I hope that this will reinforce our position as a food paradise, supporting the cultural heritage of Singapore. The list will be subject to a quota, amongst other controls, and we will study carefully if more occupations should be added to the list.
However, I would like to make it clear that this does not signal a broader liberalisation of Work Permit sources across the board. The Tripartite Partners have a clear consensus on the importance of uplifting our local lower-wage workers whom the Work Permit holders directly compete with. Hence, we will continue to keep the Work Permit sources tight to support the efforts to uplift lower-wage workers and the ongoing moves to be more manpower-lean.
Taken together, the two schemes, the M-SEP and the NTS Occupation List, will complement the changes we are making to our work pass framework by supporting the growth of businesses that contribute to Singapore's strategic priorities and, ultimately, creating good job opportunities for locals.
I have spoken at length about our upcoming moves. I have explained why they are necessary to restructure our workforce to prepare for the opportunities ahead and move towards a more equitable society.
Many businesses, both local and foreign, whom I have spoken to generally understand this. They have been very supportive and also want to be good, progressive employers. However, they also share two challenges. One, difficulties in finding workers; and two, increase in business costs. We take this feedback very seriously.
On the difficulty in finding workers, I earlier touched on the schemes we have to address this. The calibrated reopening of our borders should ease some pressure and, as mentioned earlier, there is still an untapped supply of various segments of our population, and businesses can do more to redesign their jobs to attract these segments of workers.
On rising business costs, MOM has put in place measures to support our businesses. Our support measures will provide up to $6.8 billion to businesses in financial year 2022. This includes the provision of the Jobs Growth Incentive. We will also roll out transitional offsets for the increases to senior worker CPF contribution rates and transitional support for the moves to uplift lower-wage workers.
The moves are also timed carefully and implemented gradually to moderate the cost and manpower impact on businesses.
At the same time, I also want to assure our fellow Singaporean workers that they will always be at the heart of our efforts to drive economic growth. We will also endeavour to create good jobs. Mr Chairman, let me now say a few words in Mandarin.
(In Mandarin): [Please refer to Vernacular Speech.] This year, we are making various moves to upgrade the capabilities of our local workforce and complementarity of our foreign workforce, uplift vulnerable workers and senior workers, and uphold inclusive and progressive practices.
Most business owners whom I have spoken to understand the need for these moves. However, some employers, more so amongst the SMEs, are concerned. They share that they face difficulties hiring locals and the announced moves may make it worse. In addition, they worry about the higher business costs.
I would like to assure SMEs that we hear your concerns. We will help in several ways. Let me make three points.
Firstly, our foreign workforce policies will be sensitive to the profiles of our SMEs' circumstances, which may require differentiated treatment.
Under COMPASS, candidates will be assessed on not just their qualifications and wages but also the hiring firm's diversity and support for local employment.
For firms with less than 25 PMETs, they will, by default, be treated as having \"met expectation\" on firm-related attributes.
Secondly, we will provide some flexibilities to firms and for certain job roles.
For example, currently, some firms are unable to hire foreign workers they need due to certain Work Permit restrictions. We will allow firms in the Services and Manufacturing sectors to hire their workers from non-traditional sources on Work Permits, for a tight list of occupations with fewer locals, for example, in Precision Engineering and Food Manufacturing.
MOM will also support MTI in introducing a scheme to give additional S Pass and Work Permit quotas to firms that contribute to Singapore's strategic economic priorities. More details of these schemes will be available around the end of this year.
Thirdly, we will continue to support our SMEs in their transformation journey.
For SMEs looking to automate and transform, they can tap on the Productivity Solutions Grant, the Enterprise Development Grant or the SMEs Go Digital programme.
Last month, Workforce Singapore launched the new Career Conversion Programme for SME Executives. SMEs can enjoy up to 90% salary support to hire mid-career local jobseekers.
These are just some of the many schemes out there. I urge SMEs to tap on the schemes available and begin their transformation journey.
Singapore is a small country, devoid of natural resources. The road to nation-building has never been smooth-sailing since Independence. Back then, Singapore was often likened to a small fishing boat in a big ocean, which could be easily swept away in a big storm. Our pioneers built on their resilience to ride out the odds and propel Singapore forward. After decades of hard work, Singapore has grown and progressed. We are no longer a small fishing boat, but a steady big ship.
I hope businesses will bear in mind the perseverance of our forefathers and continue to adopt the same attitude in their transformation. Let us create better employment prospects for our workers and work together for a better future!
(In English): Mr Chairman, before I close, allow me to share one aspect of uplifting our workers, which is to strengthen their retirement adequacy. As announced in the Budget Statement, we will do so in three ways.
First, we will adjust the Basic Retirement Sum to provide members with higher monthly payouts to keep pace with long-term inflation and rising standard of living. We expect more members to receive at least the Basic Retirement Sum payout, with about eight in 10 active CPF members turning age 55 in 2027 being able to do so. This is up from 67% for the cohort that turned 55 in 2021.
Second, we will implement the next step of the CPF contribution rate increase for senior workers.
Finally, the enhanced Workfare Income Supplement Scheme, we will top up the income of half a million lower-income workers, with payouts amounting to over $1 billion in CPF and in cash from 2023.
Mr Patrick Tay asked in his cut about raising the wage ceiling for CPF contributions and Mr Heng Chee How also raised this at the Budget debate. We are encouraged by the union's support for the CPF system.
The CPF wage ceiling has been periodically updated since 2003 to keep pace with wages of resident workers. The most recent update was in 2016. We will review the CPF wage ceiling and engage employers and employees ahead of any changes.
These efforts are aimed at helping Singaporeans save more and boost their retirement income. This will, however, be meaningless if we do not continue to safeguard the savings that Singaporeans set aside for old age. This is why we must carefully assess any calls for more liberal use of members' CPF monies.
In her cut, Ms Sylvia Lim suggested allowing members with CPF balances beyond the required retirement sum to make lumpsum withdrawals from their CPF savings before age 55, highlighting those who face income disruption.
The Government already provides targeted and directed support to these members. For example, to help those who face financial hardship during this difficult period, we introduced an entire suite of support measures, including the COVID-19 Recovery Grant. Singaporeans will also receive support from existing broad-based permanent schemes, such as Workfare and ComCare.
Importantly, all of these do not draw down on Singaporeans' CPF savings and, as Mr Desmond Choo wisely highlighted, it will not come at the expense of retirement income.
In his cut, Mr Gerald Giam requested for additional flexibility for seniors to use CPF to purchase 2-room Flexi flats and to pay for the resale levy.
Before members turn 55, they can request for their Ordinary Account (OA) savings not to be transferred to their Retirement Account (RA) if they intend to use it for housing. After they turn 55, members committed to a housing purchase may also use their CPF balances in excess of the Basic Retirement Sum to finance the housing purchase.
I would also like to reassure Mr Gerald Giam that CPF Board already exercises some flexibility for seniors facing financial hardship seeking to use CPF to purchase a 2-room Flexi flat.
To pay for any resale levy, home buyers can use the proceeds from the sale of their first subsidised flat.
Members who still face difficulties affording a property, including 2-room Flexi flats, can approach HDB for assistance. And I am sure HDB will also work with relevant agencies like CPF Board to provide help to members based on their specific needs.
Next, Mr Louis Chua suggested having members seek higher investment returns on their CPF monies by expanding the range of financial instruments available under the CPF Investment Scheme or allowing members to invest alongside Government investment vehicles.
We have said this before and, Mr Louis Chua, coming from his financial background, should be familiar that there is no silver bullet in achieving higher returns. Higher returns come with higher risks and a greater potential for losses. And this is true of any investment fund, and Government investment entities are not immune to this. As Mr Desmond Choo pointed out, there is volatility and uncertainty in the investment climate.
Today, CPF members can already invest in a diverse range of products, including exchange-traded funds (ETFs), shares and gold products. The CPF Board welcomes more ETFs to join the CPF Investment Scheme. However, ETF providers' decision to apply for inclusion are, ultimately, based on their own commercial assessment. To safeguard members' interest, the CPF carefully considers these factors, such as investment-related fees and track records of the products, before approving any such applications. Only products listed under the Singapore Exchange or registered with local authorities are included under the CPF Investment Scheme as foreign products are subject to changing regulations in jurisdictions over which we have no oversight and no control.
As Mr Louis Chua mentioned, 75% of CPF Investment Scheme members made profits or broke even in the reporting period of FY2020. This means that 25% of members made cumulative total losses. More product offerings do not necessarily equate to higher returns.
To ensure that the list continues to remain relevant, the CPF Board will continue to review it on an ongoing basis. It strikes a balance between allowing CPF Investment Scheme participants the flexibility to diversify their investment portfolios to enhance their retirement nest eggs, while safeguarding members' interest.
So, we have to be very careful when striking this balance, because it involves CPF monies which should be safeguarded for retirement.
We are also studying if a lifetime retirement investment scheme can be introduced for members. It is meant for members with the risk appetite and sufficient investment horizon who may not wish to actively manage their investments. We will provide further information and updates when ready.
Meanwhile, members who prefer not to take any risks with their retirement savings already enjoy interest rates of up to 6% per annum on their CPF savings, where investment risk is entirely borne by the Government.
We will continue to look at how we can strengthen retirement adequacy for all of our members, so that they can enjoy financial security in their later years.
Let me conclude. We are making many moves to upgrade the capabilities of locals and complementarity of foreigners, uplift vulnerable workers and mature workers and uphold inclusive and progressive workplaces.
But we acknowledge there will always be more work to be done. But we will continue relentlessly to put in the hard work of supporting our workers and the businesses.
Charting new waters is never easy. I am sure Members here are familiar with the teach-a-man-to-fish analogy to equip ourselves for the lifelong journey ahead. Well, the essence of what we have laid out today reinforces this. But it also acknowledges that the waters are choppier, the fishes are harder to come by and catch, and if we just stay put and do not shift our anchor, we will soon run out of time and opportunity to fish!
So, we will have courses to teach you how to catch the harder-to-catch fish, we will equip you with upgraded equipment – all the advanced rods, the sonar equipment – to fish, including using the new COMPASS to guide you to bountiful sources of fish, notwithstanding choppier waters.
With workers, unions, businesses and the Government on the same ship together, I have no doubt that Singapore will continue her voyage into an even brighter future! [Applause.]
The Chairman: Senior Minister of State Dr Koh Poh Koon.
The Senior Minister of State for Manpower (Dr Koh Poh Koon): Mr Chairman, I will continue along the lines of Upgrade, Uplift and Uphold as outlined by the Minister. I will elaborate on how we will upgrade the capabilities of our local workforce, uplift our vulnerable workers, as well as transform our migrant worker ecosystem to support their well-being and resilience.
The SGUnited Jobs and Skills Package and the Jobs Growth Incentive (JGI) were introduced as extraordinary, time-bound measures to preserve human capital and expand local hiring amidst the COVID-19 pandemic. The National Jobs Council's efforts saw more than 174,000 local jobseekers placed into jobs and skills opportunities as at end December 2021.
The labour market is recovering steadily and unemployment rates continued their downward trend. But we are not completely out of the woods. The COVID-19 situation may yet evolve further. There are segments of the workforce, such as mature workers that we were more concerned about even before COVID-19 and they have been disproportionately affected by the pandemic. Nonetheless, we have made good progress despite the COVID-19 pandemic. Among the close to 509,000 local hires supported through the JGI from September 2020 to August 2021, about half were mature workers. Some mature jobseekers continue to face difficulties in finding permanent jobs.
So, we will press on with tackling three structural issues.
First, vulnerable workers who might need additional support in the hiring process; second, mature workers who might need help transiting to new job roles; and third, continuing the outreach to jobseekers requiring career matching services.
In all three areas, some of the schemes launched during the pandemic have been especially useful and valuable in supporting the vulnerable jobseeker segments. We will continue to keep them in our toolkit of schemes, with some adjustments to their parameters.
To address the issue of vulnerable workers who need additional support in the hiring process, we will extend the JGI. As noted by Mr Yip Hon Weng, the JGI has been effective in encouraging employers to expand on local hiring. It was introduced in September 2020 and has been extended twice since then to March 2022. Close to 509,000 locals were hired into new jobs by 67,000 businesses from September 2020 to August 2021.
JGI-eligible employers have continued to hire from a wide pool of jobseekers, including half who were not employed at the point of hire.
Therefore, we will extend the JGI by another six months from March 2022 to September 2022. But we will concentrate our resources on the more vulnerable jobseeker segments as I had mentioned earlier, namely, mature workers not in work for at least six months, persons with disabilities and ex-offenders.
In the next phase of the JGI, employers of these groups of jobseekers will receive up to 40% salary support for the first six months, and up to 20% for the next six months. In line with previous JGI phases, employers should achieve local workforce growth and growth in local workforce earning at least $1,400 a month. This means that eligible employers may receive up to $21,600 per hire over a 12-month period.
The JGI will continue to work in concert with other existing structural programmes. For instance, to support employment of persons with disabilities, we have introduced the Enabling Employment Credit, which Minister of State Gan Siow Huang will elaborate on. Together, these schemes ensure that persons with disabilities continue to be well-supported during the economic recovery.
We hope that this will encourage employers to give them a chance, to hire them and train them if needed, so that they can eventually form an integral part of your workforce.
Mature workers may also need more help in making career transitions or re-entering employment. Through the SGUnited Mid-Career Pathways Programme, we have equipped workers with skills and opportunities to take on new employment. The company attachment programme allows employers to take a greater chance on unproven candidates, provide them with on-the-job training and evaluate their job fit. Even trainees who are not offered a job by the host organisation come out of the attachment equipped with skills, experience and industry contacts. Seventy-six percent of trainees who completed or exited their attachments found employment as at October 2021.
Some mature workers who may continue to face challenges in finding permanent jobs may already have years of experience and would only require some training to take on their intended roles. Hence, we will retain the SGUnited Mid-Career Pathways Programme for mature jobseekers. This will complement the deeper reskilling provided by our existing Career Conversion Programmes, or CCPs.
One such mature worker who was willing to undergo further training is Chan Wan Chuen. As a 45-year-old back-to-work mother who re-entered the workforce in 2020 after four years, she enrolled in the programme to upskill and improve her employability. I am glad to note that her positive mindset had paid off and she has transited well into her role as a Technology Assurance Domain Lead in UOB bank with her newly acquired skills in data analytics.
Miss Rachel Ong and Mr Liang Eng Hwa have asked for more details on how this scheme will be extended. Mature trainees will continue to receive training allowances of up to $3,800. However, with the recovery of the labour market, we will scale back Government funding from 90% to 70%, with the host organisations co-funding 30% of the allowance to the jobseekers.
To encourage host organisations to hire the trainees earlier if they are found to be a good fit, we will allow host organisations to receive the full support quantum if the trainees were hired at least three months into the attachment.
Ms Janet Ang has called on local workers to keep reskilling and to stay relevant and has highlighted CCPs as a useful way of helping our local workers to do this. I agree with her. The CCPs provide employers with substantial salary support when they hire and train mid-career hires for new job roles.
Since 2016, Workforce Singapore has placed over 39,000 locals into new job roles through CCPs. We want to continue to do more. But this will require both employers and jobseekers to also do their part. I encourage employers to adopt a \"plug-train-play\" mindset and be prepared to train their new hires instead of expecting a perfect fit from the word go. The CCP and SGUnited Mid-Career Pathways Programme will support you. I also want to encourage jobseekers to have a more open mind to new possibilities, new opportunities and to acquire new skills.
To help scale up efforts to reach out to more jobseekers, SGUnited Jobs and Skills Centres were introduced in June 2020 amidst the COVID-19 situation in all of our 24 HDB towns to provide career advisory and coaching services, as well as curate job opportunities available in the vicinity of our jobseekers.
To ensure that our job matching services remain readily accessible to our jobseekers in the heartlands, we will maintain SGUnited Jobs and Skills Centres in all 24 HDB towns. Besides having career ambassadors deployed to the centres, we will roll out job kiosks and phone advisory services so that we can flexibly deploy career ambassadors while best meeting the needs of our jobseekers.
We will also continue working with partners to provide more options for local jobseekers who are mature, long-term unemployed or persons with disabilities. We appointed Adecco as an SGUnited Jobs and Skills Placement Partner in March 2021 and have appointed two additional employment agencies, Charterhouse and Good Job Creations, this month.
We will not extend the SGUnited Traineeships after it expires in March 2022. The SGUnited Traineeship programme was introduced amidst a weak labour market to provide fresh graduates with traineeship opportunities to acquire industry-relevant experience and to build up their skillsets and networks. With the economy recovering, fewer graduates are participating in the scheme. But current trainees will be supported to the end of their traineeships.
Sir, I will now move on to how we can drive transformation through working closely with our Tripartite Partners and industry players to provide greater support for companies and workers in their transformation journey.
NTUC shares a close relationship with the Government. They champion workers' interests, as well as trust with employers and the Government to achieve win-win outcomes.
Brother Heng Chee How suggested for a tripartite focus to identify priority sectors and occupations for re-skilling, especially for older workers, tapping on NTUC's Company Training Committees (CTCs). As shared by Brother Chee Hong Tat, since April 2019, NTUC has mobilised more than 800 companies to form CTCs and supported companies to develop and implement their transformation plans, including re-skilling of workers. This has enabled unions and companies to work together to respond with agility during COVID-19, to pivot operations to survive and, at the same time, to help workers sustain livelihoods.
The efforts of the unions via the CTCs have achieved positive outcomes and MOM wants to accelerate these efforts to benefit more companies and workers. Mr Sharael Taha has asked for the resources to support NTUC to scale up the CTCs. The Minister for Finance has shared in the Budget speech that we will support NTUC's efforts to scale up to 2,500 CTCs by 2025. This will double the coverage from 250,000 workers today to 500,000 workers in 2025. About $100 million will be set aside to support NTUC. We will invest $28 million to support NTUC to drive this transformation and another $70 million grant to enable companies to operationalise the transformation plans through the CTCs.
Next, I will talk about our efforts to uplift the different workforce segments, starting with senior workers. As announced during the Budget, the Government will continue to support the retirement adequacy of our seniors by raising the CPF contribution rates. By the time we are done with the full increase around 2030, a 55-year-old member currently earning median income can expect his monthly retirement payouts to be boosted by about 10%. Sir, I would like to say a few words in Mandarin.
(In Mandarin): [Please refer to Vernacular Speech.] The Government spares no effort to improve the quality and skills of the workforce so that every worker can enjoy better employment prospects.
Now, let me focus on senior workers. By 2030, our citizen population aged 65 and above will nearly double to 900,000. With an ageing population, it is important to tap on the accumulative human capital of our seniors to keep our economy growing.
To allow more senior workers to work longer if they wish to, from July this year we will raise the statutory retirement age from 62 to 63 and the reemployment age from 67 to 68. In addition, employees who are hired at age 55 and above can qualify for reemployment, as long as they have worked for their employer for two years.
According to the 2019 recommendations by the Tripartite Workgroup of Senior Workers, the Government will start to raise the CPF contribution rate for senior workers from this year and will continue to do so in 2023 to support the retirement adequacy of our seniors. By 2030, a 55-year-old member currently earning median income can expect his monthly retirement payouts to be boosted by 10%.
(In English): Sir, I will now go on to talk about how we will support self-employed persons. For our self-employed persons (SEPs), the Government has progressively strengthened support for this segment of the workforce over the years.
As announced at Budget 2022, eligible lower-income SEPs can receive enhanced Workfare payouts of up to $2,800 from 2023.
The Government has worked with insurers to introduce prolonged medical leave insurance, which covers many self-employed drivers and riders.
The Tripartite Alliance for Dispute Management provides mediation services to SEPs to address disputes with their service buyers and SEPs can have their rights enforced at the Small Claims Tribunal.
One group of SEPs that we are paying closer attention to are those that work with online matching platforms which provide transport and delivery services. Known as platform workers, they work as private hire car and taxi drivers, or deliver food and goods to our consumers. The Government shares the concerns that Mr Louis Chua, Ms Yeo Wan Ling, Dr Shahira Abullah, Mr Sharael Taha and Ms Hazel Poa have raised about the welfare and job opportunities for platform workers. Mr Don Wee also highlighted this issue at the Budget debate.
With the emergence of digital platforms, it is now easier for people to source for work on online platforms. The profile of platform workers is diverse. We find that the majority of those who depend on platform work as their main job are older residents aged 50 and above, with non-tertiary qualifications, although delivery workers tend to be younger than other groups. Platform workers have consistently cited flexibility as a reason for taking up platform work. Some do it to supplement their main source of income, while others rely on it as their main source of income.
Earlier this week, the Institute of Policy Studies (IPS) published a study on platform work, involving a survey of more than 900 private-hire car drivers and in-depth interviews with both the drivers as well as delivery riders. The study found that the flexibility offered by platform work comes with caveats. For instance, platform workers often have to follow working arrangements and pricing policies set by the platforms, which can change without their consent. Some have indicated that they view platform work as a temporary arrangement and would like to transit to regular employment. Even as we support them in their job search through career matching services and programmes under the SGUnited Jobs and Skills Package, they may still face challenges, such as lacking the time to job hunt or having the requisite skills to take on new jobs.
This is a complex issue but, clearly, more needs to be done to close the gap in the protections provided for platform workers to ensure a fairer relationship between the platforms and the platform workers. Hence, we convened an Advisory Committee in September last year that includes representatives from Tripartite Partners to review this carefully. Since then, the Committee has been consulting widely through a public consultation exercise. I would like to take this opportunity to share some of our preliminary observations from the exercise.
On retirement and housing adequacy, most platform workers expressed concern over their ability to meet both current and future needs. More than half of platform workers who responded to our public consultation exercise felt that mandatory CPF contributions to their Special or Ordinary Accounts would be important for their retirement and housing needs. And on this issue, the IPS survey found that 84% were worried about whether they have enough savings for retirement.
Take the example of Ms Peh Xin Xuan, a 28-year-old who has been working as a food delivery rider for many years. For a period, it also served as her main income; it was her full-time job at that point in time. But over time, she found that the irregular earnings, without CPF contributions and the sheer physical demands of platform work took a toll on her financially, physically and mentally. Furthermore, Ms Peh recently applied for a BTO flat with her fiancé. Like many young Singaporeans, she hopes to use her CPF savings to finance the flat and would like more support to help riders like herself better save up for their long-term needs.
Clearly, this concern warrants intervention. Failure to do so will result in unmet needs in the future and impose costs on other parts of society.
Today, platform workers already contribute up to 10.5% of their earnings to their MediSave accounts. The Committee is considering the idea of requiring platform companies to make CPF contributions to support the retirement and housing needs of platform workers. Platform companies have raised concerns that such a move will result in a sudden increase in business cost, something which I can understand. So, an option being considered is a phased approach which will allow time for the platform ecosystem to adjust.
To Ms Hazel Poa's suggestion to allow a special scheme that allows platform workers to contribute and withdraw CPF on demand, I do not wish to pre-judge the deliberation of the Committee, but I would like to make a few clarifications.
Firstly, there are already private savings products which are available in the market for everyone, including platform workers. It is common for returns to be commensurate with the length of holding the funds in the account, such as a fixed deposit account. It is impractical to have our cake and eat it by allowing platform workers to withdraw and deposit like a savings account, while still enjoying interest rates higher than what is being offered by a fixed deposit account, for example, in the banks.
Secondly, allowing withdrawals on demand will also go against the objective of improving their long-term retirement adequacy by setting aside savings for old age and allowing for the compounding of interest to take place over time.
So, I would say that the PSP's suggestion is populist but impractical.
On financial protection in the event of work injury, platform workers said that they were concerned that injuries would affect their livelihoods, and that the insurance coverage provided was not consistent across different platform companies.
We are heartened by the general consensus among platform companies that they should provide some coverage against work injuries.
The Committee is exploring how the overall Work Injury Compensation Act (WICA) framework can be applied in this setting, but the Committee also recognises that any solution will need to take into account the nature of platform work, including flexibility in working time and the ability to work for more than one platform simultaneously.
On the issue of representation, some platform workers said that they lack avenues to voice concerns and expressed the hope that the unions could represent and assist them if there were disputes. Others wanted a say in contract terms that impact their well-being.
We are encouraged that, in response, platforms have indicated their willingness to support good industrial relations and improve the working conditions of platform workers.
Suggestions from the platforms include the establishment of industry-wide norms through tripartite discussions or with an independent body. The Advisory Committee will be studying these possible solutions, including the idea for unions to represent the platform workers.
Mr Patrick Tay asked if the Ministry will be reviewing the Employment Act. We do regularly review our legislation, including the Employment Act, in consultation with Tripartite Partners to ensure that they are relevant. Several major policy reviews are still ongoing, such as in relation to the work of the Advisory Committee for Platform Workers. It is too early to say how the recommendations would be implemented or what legislative changes are needed. We will consider the recommendations holistically and see how to ensure that our legislative frameworks can support the policies.
The eventual recommendations will contribute towards a more sustainable equilibrium – one where the costs of labour protections are more equitably distributed and shared across the stakeholders in the platform ecosystem.
Sir, I will now talk about our migrant worker community. The COVID-19 pandemic has been a challenging time for everyone, not least for our migrant workers. They have shown remarkable resilience during the COVID-19 pandemic.
Their health and well-being have been a priority over the past year. As of 20 February 2022, 99.4% of migrant workers residing in dormitories are fully vaccinated.
During the last COVID-19 wave in September, migrant workers who tested COVID-19 positive were given timely access to medical support, through regional medical centres, mobile clinical teams and telemedicine consults. Most experienced mild or no symptoms and were able to recover safely in recovery facilities, with fewer than 0.1% requiring hospitalisation.
Beyond physical health, we co-created a mental health support ecosystem for migrant workers with our partners, including the Migrant Workers' Centre (MWC) and HealthServe. To date, close to 600 frontline officers have been trained in basic psychological first aid and more than 200 migrant worker peer leaders have undergone self-care and peer support training. They help to detect signs of distress amongst migrant workers more quickly and link them up with counselling services and support helplines in their native languages.
As mentioned in my response to the Adjournment Motion put forth by Mr Louis Ng last month and in response to Mr Leon Perera's question on easing of restrictions on migrant workers, let me say that migrant workers can visit any Recreation Centre, or RC, daily since September 2021. [Please refer to \"Committee of Supply – Head S (Ministry of Manpower)\" debate for clarification to the month stated, Official Report, 7 March 2022, Vol 95, Issue No 55, Budget section.]
Vaccinated migrant workers are allowed on community visits and, as of mid-February 2022, more than 95,000 migrant workers have visited the community. The current community visit quotas are not fully used up and we will be easing in steps the quota and restrictions and as the COVID-19 situation improves.
From 18 February, we have also stepped down the requirement for migrant workers to undergo the Rostered Routine Testing, or RRT. This would provide a return to normalcy for these workers.
We are also prioritising the granting of entry approvals for migrant workers to return to Singapore after they go on their home leave. This will facilitate them to go on home leave for visits.
As we restore economic activities, we will need to continue bringing workers into Singapore safely and help newly-arrived migrant workers settle in. Therefore, in March last year, we started the Migrant Worker Onboarding Centres, which have now been renamed Onboard Centres.
These function as a one-stop centre for newly-arrived migrant workers, bringing together various entry requirements into an integrated and seamless end-to-end process. Workers can serve their Stay-Home Notice (SHN) as required, complete a medical examination, and undergo a residential Settling-in Programme (SIP), all under one roof. To date, more than 55,000 workers have gone through the Onboard Centres.
Going forward, MOM will continue to improve the well-being of our migrant workers by fortifying housing standards, improving medical support and increasing recreation options.
First, fortifying housing standards is an ongoing process and is necessary to create a safer and more comfortable living environment for our migrant workers. As announced last year, the Government will build two new purpose-built dormitories (PBDs) at Kranji and Jalan Tukang. These dormitories will be built to improved standards to minimise future outbreaks of diseases. We will also work with dormitory operators and other partners to test new and innovative ideas for dormitory living and management.
MOM is also reviewing the Foreign Employee Dormitories Act (FEDA) to expand its coverage to smaller dormitories with fewer than 1,000 beds.
Second, we will support employers in managing healthcare costs while improving medical support for our migrant workers. I will talk about this in the outpatient setting and the inpatient setting.
On the outpatient front, as announced on 19 February 2022, employers will be required to purchase a Primary Care Plan, or PCP, for migrant workers with effect from 1 April this year. MOM has appointed four medical service providers to deliver primary healthcare services over six geographical sectors.
This integrated primary healthcare system builds on the medical support plan we set up amidst the COVID-19 pandemic. Migrant workers can expect to access a range of primary healthcare services, including acute and chronic care, 24/7 telemedicine services as well as mobile clinical teams, to ensure rapid responses to public health emergencies and concerns in dormitories.
The appointed medical service providers will minimise language and cultural barriers in care provision through hiring healthcare workers who can speak the native languages of our migrant workers.
Employers can purchase the PCP at a fixed fee of between $108 and $138 for each worker per year, or about $9 to $12 per worker a month. This gives employers cost clarity and will meet most of the primary care needs of their workers. To mitigate the moral hazard of overconsumption and instil personal responsibility, migrant workers will also be required to co-pay a small fee, ranging from $2 for a telemedicine session to $5 for each visit to the medical centre.
This PCP will be made mandatory for all workers living in the dormitories or working in the construction, marine shipyard and process sectors, as part of work pass requirements.
On the inpatient front, MOM will enhance the coverage of the mandatory medical insurance to better protect employers against large medical bills for their Work Permit and S Pass holders, including those of migrant domestic workers (MDWs).
Today, employers are responsible for the medical expenses of their Work Permit and S Pass holders that are incurred in Singapore. Unlike that of locals, the medical bills of migrant workers and migrant domestic workers, or MDWs, are not subsidised. They are also not covered under the national schemes, such as MediShield Life and MediFund. To help employers better manage the medical bills of their migrant workers, employers are required to purchase medical insurance with at least $15,000 coverage for their Work Permit and S Pass holders.
As medical costs are expected to increase over the years, more employers may end up incurring larger out-of-pocket expenses on their workers' medical bills. To provide employers greater peace of mind in financing their workers' inpatient and day surgery bills, the coverage of the mandatory medical insurance will be enhanced with the following features.
First, we will maintain the first dollar cover of at least $15,000. This ensures that the bulk of employers whose workers' medical bills fall under $15,000 continue to be fully protected under the enhanced model. On average, there are over 1,000 employers per year who face bills that are larger than $15,000. A co-payment component will be introduced for them, up to an annual claim limit of at least $60,000. This ensures that healthcare costs remain affordable and sustainable. Let me illustrate this with an example.
Under today's existing requirement, if a migrant worker or a migrant domestic worker incurs a $70,000 bill, the insurer will cover the first $15,000 and the employer will be left to bear the remaining $55,000. With the enhanced medical insurance, the insurer will continue to cover the first $15,000 in full, as per today. For the remaining $55,000, the insurer will co-pay 75% while the employer will pay the remaining bill. This means that the employer pays $13,750, which is significantly lower than the $55,000 he would otherwise need to fork out today.
The second enhancement is that we will standardise a list of baseline allowable exclusions across insurers. This will provide greater clarity to employers on the coverage that they are entitled to.
For example, insurers may exclude procedures that are not medically necessary, treatments arising from workers' criminal acts or repeat occurrences of undesirable acts by workers such as self-inflicted injuries as well as venereal diseases. Insurers may also exclude treatments for pre-existing illnesses that occur within the first 12 months of the worker's employment with the same employer.
The third enhancement is that insurers will have to offer age-differentiated premiums for workers aged 50 and below and those who are above the age of 50. This will help to keep premiums affordable for the vast majority of employers, given that 95% of our migrant workers and migrant domestic workers are below 50 years old.
The fourth enhancement will require insurers to reimburse the claims for inpatient and day surgery bills directly to the hospitals instead of making employers pay for their workers' medical treatment upfront and then claim it from the insurers later. This will help employers who are cash-strapped and free up cash flow for businesses and help families who have migrant domestic workers in this process.
Employers with existing Work Permit and S Pass workers will also progressively transition onto the new medical insurance policy when they renew their work passes. The enhanced coverage for medical insurance will be effected for all new work pass applications by the end of 2022.
The enhancements have been carefully calibrated to provide better support for businesses and migrant domestic worker employers in managing large medical bills while keeping premiums affordable. I want to thank employers, industry associations and non-governmental organisations (NGOs) which have expressed their support for the enhanced medical insurance scheme during our engagements with them.
The third area we want to do for our migrant workers is to enhance their social well-being and recreational needs. Our partnerships with NGOs and other whole-of-society partners have been crucial in helping us to support our migrant workers. We have been working hand-in-hand with our migrant worker community, too, as they would better understand the needs of their fellow workers.
Mr Rajarathinam Sankaralingam has been a dormitory supervisor since 2012 and assigned to oversee activities in two dormitories. On top of his regular activities and duties, such as conducting briefings to fellow migrant workers on the latest Government advisories and guidelines, Mr Lingam often goes above and beyond by accompanying residents who require medical treatment at hospitals even when these incidents take place at night. We are thankful for their partnership.
We are working with NGO partners to make our eight Recreation Centres livelier by bringing in more programmes and activities that our migrant workers enjoy, such as retail bazaars as well as sports and cooking competitions. A ninth Recreation Centre will be ready later this year in Sembawang.
Workers are able to visit the Recreation Centres for essential services like topping up and purchasing telephone cards, going to the barber, buying groceries as well as for other recreational activities, such as movie screenings, live performances and meeting their friends.
The Chairman: Dr Koh Poh Koon, my apologies for having to stop you. As we are approaching 7.30 pm, I would have to invite the Deputy Leader to move the Exempted Business Motion.
The Deputy Leader of the House (Mr Zaqy Mohamad): Sir, may I seek your consent to move that the Chairman do leave the Chair? This is to enable me to move a Motion to take the proceedings on the business of Supply today beyond 7.30 pm.
The Chairman: I give my consent. Deputy Leader.
[(proc text) Resolved, That the Chairman do leave the Chair. – [Mr Zaqy Mohamad]. (proc text)]
[(proc text) Thereupon Mr Deputy Speaker left the Chair of the Committee and took the Chair of the House. (proc text)]
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Exempted Business","subTitle":"Committee of Supply","sectionType":"OS","content":"The Deputy Leader of the House (Mr Zaqy Mohamad): Mr Deputy Speaker, may I seek your consent and the general assent of Members present to move a Motion to take this day's proceedings on the Estimates for the Financial Year 2022/2023 beyond 7.30 pm?
Mr Deputy Speaker: I give my consent.
[(proc text) With the consent of Mr Deputy Speaker and the general assent of Members present, (proc text)]
[(proc text) Question put, and agreed to. (proc text)]
[(proc text) Resolved, \"That the proceedings on the business of Supply be proceeded with beyond 7.30 pm at this day's Sitting.\" – [Mr Zaqy Mohamad] (proc text)]
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Committee of Supply – Head S (Ministry of Manpower)","subTitle":"Building a strong and vibrant economy, and future-ready workforce","sectionType":"OS","content":"[(proc text) Debate in Committee of Supply resumed. (proc text)]
Dr Koh Poh Koon: Thank you, Sir. Sir, as mentioned earlier, migrant workers have been visiting the community.
Today, the visit slots are not fully utilised, but we are prepared to adjust the quota to allow more migrant workers to visit the community as the COVID-19 situation improves.
Mr Chairman, to help sustain the resilience of our workforce, we have put in place measures to drive workforce transformation, to uplift our vulnerable workers as well as transform the migrant worker ecosystem by improving existing healthcare, housing and recreational needs.
As we continue our work for these groups of workers, there is still much work to be done for others, such as our platform workers. Strengthening our workforce will always be a priority to ensure that we remain resilient in future storms.
The Chairman: Minister, you have a clarification?
Dr Tan See Leng: Yes, Mr Chairman, I have a clarification. With regard to the Non-Traditional Sources (NTS) List, I mentioned that the NTS List will start in 2021. It should start in 2023.
The Chairman: Deputy Leader, may I invite you to report progress?
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Committee of Supply Reporting Progress","subTitle":null,"sectionType":"OS","content":"The Deputy Leader of the House (Mr Zaqy Mohamad): Chairman, as the Ministry that promotes work-life balance and care for our mental well-being, especially on Friday evening, may I seek your consent to move that progress be reported now and leave be asked to sit again on Monday, 7 March 2022?
The Chairman: I give my consent.
[(proc text) Resolved, \"That progress be reported now and leave be asked to sit again on Monday, 7 March 2022.\" – [Mr Zaqy Mohamad] (proc text)]
[(proc text) Thereupon Mr Deputy Speaker left the Chair of the Committee and took the Chair of the House. (proc text)]
Mr Zaqy Mohamad: Mr Deputy Speaker, I beg to report that the Committee of Supply has made progress on the Estimates of Expenditure for the financial year 2022/2023, and ask leave to sit again on Monday, 7 March 2022.
Mr Deputy Speaker: So be it.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Adjournment","subTitle":null,"sectionType":"OS","content":"[(proc text) Resolved, \"That Parliament do now adjourn to 10.30 am on Monday, 7 March 2022.\" – [Mr Zaqy Mohamad]. (proc text)]
Adjourned accordingly at 7.29 pm.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Update on Vulnerable Families Pilot Programme","subTitle":null,"sectionType":"WANA","content":"9 Mr Leon Perera asked the Minister for Social and Family Development with regard to the Vulnerable Families Pilot Programme announced in 2014 at the Ministry's Committee of Supply debate (a) whether the Ministry can provide an update on the implementation and assessed effectiveness of this pilot programme; (b) whether this pilot programme has been expanded or shelved; and (c) what have been the estimated long-term savings in resources by tackling these hardcore cases and whether these savings are realised.
Mr Masagos Zulkifli B M M: MSF implemented the Vulnerable Families Pilot Programme, also known as the Strengthening Families Together (SFT) Pilot, from January 2014 to February 2017. The aim of the SFT Pilot was to improve the family's well-being and enhance developmental outcomes for their children.
The SFT Pilot comprised two key elements: (1) enhancing social workers' effectiveness through training on Government policies and considerations, and access to dedicated Government points-of-contact to discuss appeals or flexibilities to support clients; and (2) encouraging Government agencies to exercise greater flexibility based on social workers' professional assessments.
Two hundred and forty families benefitted from the pilot. One hundred and ninety-two appeals, for 156 families, were made by the SFT social workers largely surrounding issues, such as housing and immigration, and 92% of these appeals were successful in enabling the families to access help.
Overall, families on the pilot showed improvements in family functioning, coping self-efficacy, and children's hope and resilience. However, two-thirds of the families continued to require case management from FSCs after the pilot concluded, reflecting the complexity of their issues and the runway needed for them to stabilise. The main focus of the pilot was to see how we could improve social service interventions for complex cases, and we have not set out to quantify savings from the pilot. Rather, we have applied some of the learning points to better support and equip FSCs in the case management of families.
Through the pilot, MSF found that the critical success factors in effectively uplifting these families were (a) social workers' professional competency and knowledge of Government policies, (b) having social workers and Government agencies work together and collaborate effectively, and (c) having MSF come in to facilitate such collaborations and conversations, where necessary.
Based on the findings and recommendations of the pilot, MSF rolled out training for new and existing FSC social workers on working with Government agencies effectively. This has now been incorporated as core training for all FSCs. In 2017, MSF set up a Systems Capability Team (SCT) which aimed to strengthen the partnerships between the FSCs and Government agencies, so they can work better together to support families facing complex needs and barriers. The work of the SCT has, since 2019, been subsumed under the Social Service Systems Office, which was set up to identify and resolve system issues cutting across agencies which might impede the successful resolution of complex cases as well as cases not covered within conventional policy boundaries.
Collaborations between social workers and Government agencies have also become a lynchpin of the ComLink initiative that MSF is in the process of scaling up nation-wide to all towns in Singapore – a key feature of ComLink is Government agencies and community agencies working hand-in-hand to uplift families with children in rental housing.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Review on Dog Training and Behaviour Rehabilitation Practices","subTitle":null,"sectionType":"WANA","content":"10 Mr Louis Ng Kok Kwang asked the Minister for National Development in view of the new guidelines for dog training and behaviour rehabilitation (a) when will the review of the use of animal training devices such as shock and prong collars, be completed; and (b) whether NParks will consider imposing restrictions on their use while the review is being conducted.
Mr Desmond Lee: The Rehoming and Adoption Workgroup, comprising NParks, animal welfare groups, veterinarians and trainers, had earlier discussed the use of dog training devices. NParks had also engaged pet owners on this topic through a public consultation exercise in October 2021.
Based on the findings, there was consensus that training devices that cause pain, fear and distress to animals should, generally, be avoided. There were also some trainers and members of the public who viewed that there could be certain circumstances that warrant the use of such devices, and that it was important to ensure their proper use. NParks is further engaging stakeholders, such as dog trainers, animal welfare groups and veterinarians, and will review the use of shock and prong collars this year. This includes developing further guidelines to educate trainers and pet owners on the proper use of training devices. Meanwhile, NParks has since released guidelines on dog training and rehabilitation in January 2022.
Currently, NParks investigates and takes enforcement action in cases where animal training methods cause unnecessary pain or suffering to animals. In line with the recently released dog training and rehabilitation guidelines, NParks will continue to educate pet owners and raise awareness on the least intrusive, minimally aversive approach to animal training, through various platforms, such as online webinars, Pets' Day Out events, workshops and volunteer programmes. This science-based approach takes into account factors, such as an animal's motivational state, stress levels and physical health, in developing a training and behaviour modification plan which is safer and more effective for the animal.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Update on Proposed Guidelines for Insurers to Adopt Fair and Responsible Practices Towards Persons with Disabilities and Mental Health Conditions","subTitle":null,"sectionType":"WA","content":"1 Mr Leon Perera asked the Prime Minister (a) whether an update can be provided on the proposed guidelines for insurers to adopt fair and responsible practices towards Persons with Disabilities (PWDs) and those with mental health conditions, which were expected to be finalised by June 2021; and (b) what are the reasons for the delays in finalising the guidelines.
Mr Tharman Shanmugaratnam (for the Prime Minister): The Monetary Authority of Singapore (MAS) expects financial institutions (FIs) to deal fairly with all their customers, including persons with disabilities (PWDs) and those with mental health conditions. Following feedback and concerns raised by PWDs, MAS and MSF have engaged insurers to ensure that they do not deny PWDs insurance or charge higher premiums unless these can be justified from a risk perspective.
MAS has also carefully reviewed individual cases that have been highlighted to us, to ascertain whether insurers had treated PWDs fairly. The reviews have not found unfair underwriting practices in these cases. However, the insurers could have better explained underwriting outcomes to applicants in some instances. The Life Insurance Association Singapore (LIA) has emphasised this to their member insurers and LIA members are committed to ensuring clearer communication.
Even though MAS has not found any unfair underwriting practices, MAS will codify the fair principles of insurance underwriting into transparent guidelines for insurers. Under the proposed guidelines, insurance applications from PWDs should be subject to the same underwriting policy and process applied to those without disabilities. Any differential treatment should be based on an objective assessment of information relevant to the risks to be insured, rather than just the fact of a disability per se.
The scope of the proposed guidelines has since been expanded to include promoting fair and responsible practices towards a broader range of customers. This means scoping other types of FIs, transactions and customers into the guidelines. MAS expects to consult on the proposed guidelines by the second half of 2022.
Together with MSF, MAS has continued to engage individuals and groups representing PWDs and those with mental health conditions. We are also working with the insurance industry associations to provide more guidance and assistance to these individuals on their insurance purchases. For example, LIA is developing a consumer guide to raise awareness and enhance transparency of insurers' risk assessment approach towards health insurance underwriting.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Update on Plan for Safe and Dignified Repatriation of Refugees to Rakhine State","subTitle":null,"sectionType":"WA","content":"2 Mr Louis Ng Kok Kwang asked the Minister for Foreign Affairs (a) whether he can provide an update regarding plans for a safe and dignified repatriation of refugees back to Rakhine state; and (b) how will Singapore work with ASEAN to ensure safeguards are in place and repatriation of refugees will be conducted in accordance with international law and standards.
Dr Vivian Balakrishnan: The situation in the Rakhine State remains dire. It is a long-standing, complex, intercommunal issue. The current political instability in Myanmar has further complicated the situation. There are reports of the resumption of conflict between the Myanmar military and armed groups in the Rakhine State, which have further diminished the prospect of the safe, voluntary and dignified return of refugees.
Despite the challenges, ASEAN has pressed on with efforts to facilitate the safe, voluntary and dignified repatriation of refugees. Singapore has strongly supported these efforts. ASEAN's work has primarily focused on helping to improve ground conditions in the Rakhine State. The Preliminary Needs Assessment (PNA) and the ASEAN Secretariat's Ad-Hoc Support Team were established to monitor the implementation of the PNA. However, progress has stalled, given the current political instability in Myanmar, as well as the COVID-19 pandemic. Nevertheless, we are prepared to send further consignments of aid and stand ready to support future comprehensive needs assessments once repatriation commences so that we can be more targeted in helping the displaced persons.
Additionally, Singapore has contributed over $1 million in bilateral humanitarian aid to both Bangladesh and Myanmar to meet the urgent humanitarian needs of displaced persons. There are ongoing community efforts to provide aid. We have also made contributions through the ASEAN Coordinating Centre for Humanitarian Assistance on disaster management.
Ultimately, peace and security in the Rakhine State require a comprehensive political solution that addresses the fundamental causes of the conflict, and which takes into account the concerns of all ethnic communities. There are no quick fixes. Singapore will continue to work with ASEAN to support efforts to bring peace, stability, the rule of law, promote harmony and reconciliation among the various communities, as well as to ensure sustainable and equitable development in the Rakhine State.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Banning Smoking in Casinos and Measures in Place to Safeguard Health of Workers Within Premises","subTitle":null,"sectionType":"WA","content":"3 Mr Louis Ng Kok Kwang asked the Minister for Sustainability and the Environment (a) whether the Ministry will consider banning smoking in casinos; and (b) what measures are in place to safeguard the health of people working in the areas of the casinos where smoking is allowed.
Ms Grace Fu Hai Yien: Both casinos in Singapore have implemented smoking restrictions as part of their house rules. Smoking and non-smoking gaming areas in the casinos are separated. Measures are taken to mitigate the potential impact of second-hand tobacco smoke, such as maintaining negative air pressure in smoking gaming areas to prevent second-hand tobacco smoke from drifting into non-smoking areas; improving exhaust air flow rates to reduce accumulation of smoke; and the installation of ionisers within the casinos. The casinos also inform potential hires that they will be working in a smoking environment.
We will continue to review the smoking prohibition regulations from time to time.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Update on Expansion of ComLink Initiative and Measures to Ensure Adequacy of Support and Prevent Overlaps of Assistance","subTitle":null,"sectionType":"WA","content":"4 Mr Yip Hon Weng asked the Minister for Social and Family Development since the expansion of the ComLink initiative last year (a) how many families have received assistance; (b) what are the tangible targets to determine whether a beneficiary receives adequate support; (c) how does ComLink improve coordination between multiple agencies to streamline help for beneficiaries while preventing overlaps of assistance; (d) how many partner agencies dropped out midway; and (e) how does ComLink ensure this disruption to the beneficiary is minimal.
Mr Masagos Zulkifli B M M: To date, Community Link (ComLink) engagement officers and volunteers have reached out to over 6,800 families and successfully engaged more than 3,800 families to understand their needs, hopes and aspirations. In the course of this outreach, we have identified families with various support needs, including food needs and health issues, and connected them to relevant Government agencies and community partners for prompt support. We are on track to complete our outreach to all 14,000 ComLink families by 2023.
Through ComLink, we pull together support from Government agencies, community partners, corporates and volunteers to empower ComLink families to achieve stability, self-reliance, and social mobility (3 \"S\"). We do so by partnering each family to co-develop an action plan, based on their goals and aspirations. The Social Service Offices (SSOs) then coordinate with agencies and community partners backend to render the necessary services and interventions to the families. Should there be changes to service providers or partner agencies along the way, the SSOs will step in to ensure that ComLink families do not experience delays or gaps in receiving support.
ComLink tracks every family's progress over time, using short-, medium- and long-term indicators across various domains, such as employment, finance, healthcare and education. In the short term, we focus on making sure the family is Stable – that they are able to meet their basic needs and day-to-day living expenses. In the medium term, we want to support families towards Self-reliance, by building up resources to cushion them from any unexpected episodes. This includes being in stable employment and ensuring the children are progressing well in school. Stability and self-reliance are the building blocks for families to move towards the long-term goal of social mobility – real income growth and the ability to purchase their own homes.
MSF will provide a more detailed update on ComLink at the upcoming Committee of Supply Debate 2022.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Plans for New Housing Estate in Mount Pleasant and Incorporating Lessons from Pilot Heritage Study into Planning Processes","subTitle":null,"sectionType":"WA","content":"5 Mr Leon Perera asked the Minister for National Development with regard to the plans for a new housing estate in the Mount Pleasant area (a) whether an update can be provided on the (i) preliminary lessons from the pilot heritage study on Mount Pleasant and its incorporation into the planning processes and (ii) development of the heritage impact assessment framework; and (b) whether the heritage impact assessment framework will require consultation with heritage groups and the public in upstream planning processes.
Mr Desmond Lee: Today, the Urban Redevelopment Authority's (URA) evaluation of the heritage significance of buildings and structures takes into consideration their architectural, historical and social significance. The current planning process also takes into account the views of community and stakeholder groups, to enrich our assessment of conservation merit and ensure that heritage aspects are adequately addressed.
As the site for the new housing estate in the Mount Pleasant area covers a sizable area and comprises old buildings from different periods in history, including the former Police Academy, agencies had commissioned a pilot large-scale detailed heritage study.
The study examined the heritage significance of the buildings and structures in detail and considered additional aspects, such as communal, contextual and social values, which complemented agencies' existing evaluation criteria in assessing the conservation merits of a building. This additional layer of independent assessment validated agencies' earlier assessments and provided a more holistic understanding of the heritage significance of the former Police Academy. It also guided agencies in their assessment of possible detailed strategies and measures to mitigate the impact of development plans and sensitively integrate heritage elements into the new housing estate.
The pilot study informed our ongoing work to develop a heritage impact assessment framework, as we consider how such studies should be conducted, how findings can be incorporated, and the sites for which such studies would be most useful, to strengthen our heritage evaluation process.
We will continue to deepen and broaden our engagement to build and strengthen constructive relationships with the relevant stakeholders. We will provide an update on the heritage impact assessment framework soon.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null},{"startPgNo":0,"endPgNo":0,"title":"Provision of Subsidies to Families Using Household Services Scheme and Expanding It to Include Workers from More Countries","subTitle":null,"sectionType":"WA","content":"6 Mr Louis Ng Kok Kwang asked the Minister for Manpower (a) whether the Ministry will consider (i) providing subsidies to families using the Household Services Scheme (HSS) similar to the levy concession when hiring a migrant domestic worker and (ii) expanding the HSS to include workers from more countries; and (b) if not, why not.
Dr Tan See Leng: The HSS allows eligible companies to hire more migrant workers to provide part-time home cleaning services to households. This scheme seeks to increase options for households to meet their needs for domestic services. HSS companies can hire female migrant workers from India, Myanmar, Sri Lanka, Thailand, in addition to the existing approved countries or regions for the Services sector. The scheme was recently expanded from September 2021 to include (i) other household-related tasks, such as grocery shopping, car-washing and pet-sitting; and (ii) an additional country, Cambodia, where HSS companies can hire female migrant workers from.
Since then, 27 more companies have joined the scheme, bringing the total number of HSS companies to 103. The HSS is estimated to have benefited 16,000 households. These households typically require domestic services for only a few hours a day or week.
The Ministry is looking to further expand the scope of services which HSS companies can offer, to better support households. We will share more information on this soon. It will take time for HSS companies to make adjustments to their services and prices as more companies come on board the scheme and more households tap on HSS companies to meet their needs for domestic services. We will monitor the market response and engage households and HSS companies to assess if further adjustments are needed to this commercial scheme.
","clarificationText":null,"clarificationTitle":null,"clarificationSubTitle":null,"reportType":null,"questionCount":null,"footNotes":null,"footNoteQuestions":null,"questionNo":null}],"writtenAnswersVOList":[],"writtenAnsNAVOList":[],"annexureList":[{"annexureID":2148,"sittingDate":null,"annexureTitle":"Annex 1","filePath":"d:/apps/reports/solr_files/20220304/annex-Annex 1.pdf","fileName":"Annex 1.pdf","sectionType":"OS","file":null}],"vernacularList":[{"vernacularID":4893,"sittingDate":null,"vernacularTitle":"Vernacular Speech by Dr Tan See Leng","filePath":"d:/apps/reports/solr_files/20220304/vernacular-Tan See Leng MTI 4Mar2022 -Chinese .pdf","fileName":"Tan See Leng MTI 4Mar2022 -Chinese .pdf"},{"vernacularID":4894,"sittingDate":null,"vernacularTitle":"Vernacular Speech by Ms Low Yen Ling","filePath":"d:/apps/reports/solr_files/20220304/vernacular-Low Yen Ling MTI 4Mar 2022 -Chinese.pdf","fileName":"Low Yen Ling MTI 4Mar 2022 -Chinese.pdf"},{"vernacularID":4898,"sittingDate":null,"vernacularTitle":"Vernacular Speech by Ms Hany Soh","filePath":"d:/apps/reports/solr_files/20220304/vernacular-Hany Soh MCI 4Mar2022 -Chinese.pdf","fileName":"Hany Soh MCI 4Mar2022 -Chinese.pdf"},{"vernacularID":4899,"sittingDate":null,"vernacularTitle":"Vernacular Speech by Mrs Josephine Teo","filePath":"d:/apps/reports/solr_files/20220304/vernacular-Josephine Teo MCI 4Mar2022 -Chinese(mci).pdf","fileName":"Josephine Teo MCI 4Mar2022 -Chinese(mci).pdf"},{"vernacularID":4900,"sittingDate":null,"vernacularTitle":"Vernacular Speech by Ms Rahayu Mahzam","filePath":"d:/apps/reports/solr_files/20220304/vernacular-4 Mar 2022 - Parl Sec Rahayu - Reply to MCI Cuts.pdf","fileName":"4 Mar 2022 - Parl Sec Rahayu - Reply to MCI Cuts.pdf"},{"vernacularID":4901,"sittingDate":null,"vernacularTitle":"Vernacular Speech by Ms Hazel Poa","filePath":"d:/apps/reports/solr_files/20220304/vernacular-Hazel Poa MOM 4Mar2022 -Chinese.pdf","fileName":"Hazel Poa MOM 4Mar2022 -Chinese.pdf"},{"vernacularID":4902,"sittingDate":null,"vernacularTitle":"Vernacular Speech by Dr Tan See Leng","filePath":"d:/apps/reports/solr_files/20220304/vernacular-Tan See Leng MOM 4Mar2022 -Chinese (mom).pdf","fileName":"Tan See Leng MOM 4Mar2022 -Chinese (mom).pdf"},{"vernacularID":4903,"sittingDate":null,"vernacularTitle":"Vernacular Speech by Dr Koh Poh Koon","filePath":"d:/apps/reports/solr_files/20220304/vernacular-Koh Poh Koon MOM 4Mar2022-Chinese.pdf","fileName":"Koh Poh Koon MOM 4Mar2022-Chinese.pdf"}],"onlinePDFFileName":""}