MOM COS 2018 Minister's Speech - National Archives of Singapore
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
STRICKLY EMBARGOED UNTIL AFTER DELIVERY
PLEASE CHECK AGAINST DELIVERY IN PARLIAMENT
MOM COS 2018
Minister’s Speech
1STRICKLY EMBARGOED UNTIL AFTER DELIVERY
PLEASE CHECK AGAINST DELIVERY IN PARLIAMENT
COS 2018 – Min’s speech
With your permission, Mr Chairman, I have asked the
Clerk to place the MOM COS-in-brief on the MP seats at
the start of the sitting.
WHY CHANGE
Employment landscape has changed in past 3 years
from 2015-2017
Compared to the previous 3 years from 2012 to
2014
With your permission, Mr Chairman, may I display
some slides on the LED screen?
(Slide on) Net Job growth slowed
o From >100k a year
o ToSTRICKLY EMBARGOED UNTIL AFTER DELIVERY
PLEASE CHECK AGAINST DELIVERY IN PARLIAMENT
Resident unemployment rate increased
o To 3.2% in Dec 2016
Long-term unemployment rate went up to
o To 0.8% in Sep 2016
The reasons were partly cyclical
But mostly structural
Externally
Faster pace of technology and innovation
And keener and stronger global competition
Internally
Ageing of local population
And changing profile of local workforce
3STRICKLY EMBARGOED UNTIL AFTER DELIVERY
PLEASE CHECK AGAINST DELIVERY IN PARLIAMENT
Manpower driven growth of the past
Was no longer sustainable
Low productivity growth
Will weaken our economic competitiveness
Fast growth of foreign manpower
Will increase social tensions
And weaken social cohesion
This is why we have to transform our economy
To be more innovative
Manpower lean and productive
As we transform, we are mindful that one main
concern out there is about jobs
Will technology destroy more old jobs
Will foreigners take away more new jobs
Will we end up with “jobless growth” for our people?
4STRICKLY EMBARGOED UNTIL AFTER DELIVERY
PLEASE CHECK AGAINST DELIVERY IN PARLIAMENT
WHERE NOW
Ms Jessica Tan, Mr Lee Yi Shyan, Mr Desmond Choo
and Associate Professor Faishal Ibrahim asked whether
our locals have benefited from the economic growth
and transformation efforts.
Again, comparing past 3 years (2015-17) with previous
3 years (2012-14)
(Slide on) Even though growth of foreign
employment has turned negative
[click]Local employment growth has rebounded
o To 21k last year (Slide off)
Quality of local employment has improved too
PMET share of local workforce went up faster in
past 3 years, than previous 3 years
5STRICKLY EMBARGOED UNTIL AFTER DELIVERY
PLEASE CHECK AGAINST DELIVERY IN PARLIAMENT
In terms of wage growth
(Slide on) Annualised real income growth of our
residents for previous 3 years is shown in grey
For past 3 years is shown in pink
We can see that real income grew faster
Across all income groups
Up from 2.3% to 3.7%
We can also see that wages at P20 and P30
Not only grew faster than before
But also higher than most income groups
(Slide off)
Sir, economic and workforce restructuring is never
painless
But we have to do what is necessary
6STRICKLY EMBARGOED UNTIL AFTER DELIVERY
PLEASE CHECK AGAINST DELIVERY IN PARLIAMENT
We are certainly in better shape today
In the past 3 years, manpower growth has
slowed from an average of 4% to 1%
While productivity gain has grown
o From 0.4% previously to 1.8%
(Slide on) Having transformed
From 4 + 0.4 = 4.4 (2012-2014) [click]
To 1 + 1.8 = 2.8 (2015-2017) [click]
We are now much closer to our future growth strategy
Of 1 + 2 = 3 (Slide off)
Sir, 1+2=3 is not a rigid formula for future growth
It is a framework to remind us to become
More manpower lean and More productive
If we want our future growth
o To be more sustainable
7STRICKLY EMBARGOED UNTIL AFTER DELIVERY
PLEASE CHECK AGAINST DELIVERY IN PARLIAMENT
We have made good progress
But transformation is uneven
Not pervasive enough across all sectors
Mr Desmond Choo asked if the productivity growth is
sustainable
To make transformation and productivity growth
More sustainable
We must press on with four key thrusts
These are:
Better job growth in our economy
Better employment outcomes for our people
Better protection for our workers
Better capabilities in our Singapore Workforce
8STRICKLY EMBARGOED UNTIL AFTER DELIVERY PLEASE CHECK AGAINST DELIVERY IN PARLIAMENT First, better job growth in our economy (slide on) Average net job growth of
STRICKLY EMBARGOED UNTIL AFTER DELIVERY
PLEASE CHECK AGAINST DELIVERY IN PARLIAMENT
Second, better employment outcomes for our people
Last year, under Adapt & Growth initiative
We helped >25,000 jobseekers to secure jobs
successfully
Even though resident unemployment rate has declined
since Jun last year
We are still concerned that
Unemployment in future is likely to be stickier
Not due to shortage of jobs
But shortage of skills
And job-skill mismatch
10STRICKLY EMBARGOED UNTIL AFTER DELIVERY
PLEASE CHECK AGAINST DELIVERY IN PARLIAMENT
We have enhanced the national Jobs Bank
Into an online job portal
o Known as MyCareersFuture
We are also strengthening Adapt & Growth Initiative
To minimise missed matches and mismatches
Minister Josephine Teo will elaborate later
Sir, as we make our economy more innovative
We must also keep our workforce inclusive
o Young and old
o High and low (age and skill profile)
o For both genders
For our older workers
Re-employment age was raised
o From 65 to 67 in 2017
Employment rates for mature workers
11STRICKLY EMBARGOED UNTIL AFTER DELIVERY
PLEASE CHECK AGAINST DELIVERY IN PARLIAMENT
o Age 55 to 64
o And 65 and over
o Has continued to improve
We are also actively promoting
More companies to make better use of
technology
To make jobs ESS (Easier Safer and Smarter)
o For our mature workers
Mr Zainal Sapari and Dr Intan suggested raising their
CPF contribution rates
Mr Heng Chee How suggested to review the need for
statutory retirement, and to raise re-employment age
further beyond 67
The Tripartite Committee on Employability of Older
Workers was set up in 2005
Issues raised by Mr Heng, Mr Zainal Sapari and Dr Intan
are important issues
12STRICKLY EMBARGOED UNTIL AFTER DELIVERY
PLEASE CHECK AGAINST DELIVERY IN PARLIAMENT
The Tripartite Committee will study them
For low wage workers, I agree with members that
We must do more to improve
Their skills, productivity, careers and wages
In a more sustainable manner
We introduced PWM for cleaning in 2014
Followed by landscaping and security in 2016
Outcome is positive
Few days ago, I came across a Straits Times article by
NUS’s economists Kenneth Ler and Ivan Png titled
“Impact of Progressive Wage Model”
“In sum, as a unique kind of ‘minimum wage’
policy, the PWM has succeeded in raising wages
without apparently reducing employment.
More importantly,
as a tailored, structured and progressive policy,
13STRICKLY EMBARGOED UNTIL AFTER DELIVERY
PLEASE CHECK AGAINST DELIVERY IN PARLIAMENT
it provides a wage ladder for low-skilled
Singaporean workers,
holding out its promise of growing income over
time.”
Sir, we will make the adoption of PWM more
widespread to benefit more workers
MOS Sam Tan will elaborate later
Third, better protection for our workers
Our workforce is changing fast
We now have more PMETs, fewer RnF
This trend will continue
Our employment landscape is changing too
With growth of platform economy
We can expect to see more freelancers and SEP
14STRICKLY EMBARGOED UNTIL AFTER DELIVERY
PLEASE CHECK AGAINST DELIVERY IN PARLIAMENT
We are concerned for their
Skills upgrading
Fair treatment
Loss of income due to injury or illness
And savings for healthcare and retirement
Minister Josephine Teo will elaborate on this later
For the vast majority who will still engage in jobs with
employer-employee relationship, Mr Patrick Tay and Dr
Intan call for a review of the Employment Act.
I agree
Currently, Employment Act covers three group of
employees
First, all workmen who are manual workers or
blue collar workers
o Including most technicians
Second, all non-workmen who are non-manual
workers or white collar workers
15STRICKLY EMBARGOED UNTIL AFTER DELIVERY
PLEASE CHECK AGAINST DELIVERY IN PARLIAMENT
Third, some but not all managers and executives
o With a salary cap of $4500
With PMETs making up 56% of local workforce now
Going up to 65% by around 2030
It is timely to make a more fundamental change
To the coverage of EA
In consultation with tripartite partners, we have
decided to enhance our current EA framework
First, we will remove the salary cap of EA to cover all
employees, including all PMETs (Patrick Tay must be
happy to hear this. He has been advocating this for
some time)
Exceptions are
Public servants, domestic workers, seafarers
Who are covered separately, such as by other
Acts due to their nature of work
All core employee benefits in EA, including
16STRICKLY EMBARGOED UNTIL AFTER DELIVERY
PLEASE CHECK AGAINST DELIVERY IN PARLIAMENT
Minimum 7 days of annual leave
11 paid public holidays
14 days of paid sick leave and
60 days of paid hospitalisation leave
And other protection
Such as timely payment of salary
Maternity protection and childcare leave
Statutory protection against wrongful dismissal
And right to preserve existing terms and
conditions for employment transfer
o Resulting from sale of business
o And business restructuring
Will be extended to all employees
This will cover an additional 430k PMEs
Mr Patrick Tay asked for more clarity on the types of
transfers within or outside the scope of Section 18A
We agree that more clarity is useful
17STRICKLY EMBARGOED UNTIL AFTER DELIVERY
PLEASE CHECK AGAINST DELIVERY IN PARLIAMENT
We will work with tripartite partners to update
our guidelines on this
Second, we will extend additional protection on hours
of work and overtime pay to more workers
For Workmen
o Current salary cap of $4,500
o Already covers >99% of workmen
For Non-workmen
o Current cap of $2500 will be raised to $2600
This enhancement will extend coverage to half
of our workforce
As for Overtime Pay
Salary cap for non-workmen
o Will be revised upwards
o From $2250 to $2600
About 100,000 non-workmen will benefit from
this increase
18STRICKLY EMBARGOED UNTIL AFTER DELIVERY
PLEASE CHECK AGAINST DELIVERY IN PARLIAMENT
The third and final change to EA
Concerns dispute resolution
Relating to salary disputes or wrongful dismissal
Currently, all salary related disputes
Are mediated at TADM
If unresolved, claims are heard at the ECT
But wrongful dismissals
Are adjudicated by MOM
Not ECT
We will shift it over to ECT
To provide both employers and employees
With “one-stop service”
We will seek parliament’s approval of these
amendments to EA
Later this year
For implementation by 1 April 2019
19STRICKLY EMBARGOED UNTIL AFTER DELIVERY
PLEASE CHECK AGAINST DELIVERY IN PARLIAMENT
Mr Daniel Goh spoke about protection for contract
workers
Tripartite partners launched
The Tripartite Standard on the Employment of Term
Contract Employees in July last year
For contracts of 14 days or more, it calls for companies
to treat contracts renewed within 1 month from end of
previous contract
As continuous and cumulative
o In terms of length of service
o For the computation of leave benefits and
notice period for early termination or non-
renewal
20STRICKLY EMBARGOED UNTIL AFTER DELIVERY
PLEASE CHECK AGAINST DELIVERY IN PARLIAMENT
It also calls for companies to provide training to ensure
that their contract workers can perform their roles
effectively
A/P Daniel Goh asked for an update
As of end February, more than 550 employers
o Covering >30,000 term-contract employees
have adopted this Standard
A/P Daniel Goh suggested conducting audits and
survey, and to include retrenchment benefits in the
Standard
Being a new standard, our focus now is to increase
the adoption by more employers
Will look into suggestions when we next review
the Standard
21STRICKLY EMBARGOED UNTIL AFTER DELIVERY
PLEASE CHECK AGAINST DELIVERY IN PARLIAMENT
Another important area of protection for our workers
Is their safety and health
Through joint efforts of tripartite partners
WSH performance has improved
Fatality rate has dropped to lowest level
Ever recorded for our workforce
Our next target, under WSH 2028 to be formulated
Is to bring it down to below 1 per 100,000
workers
We are also committed to reduce workplace injuries
And enhance workplace health
By embracing a mindset of
o Total Workplace Health and Safety
MOS Sam Tan will elaborate later
22STRICKLY EMBARGOED UNTIL AFTER DELIVERY
PLEASE CHECK AGAINST DELIVERY IN PARLIAMENT
Last but not least, our fourth and probably one of the
most critical challenges
Is to ensure that slower growth of our Singapore
Workforce
Will not become the bottleneck
In the future growth of our Singapore Economy
Today, Singapore Workforce of 3.4m is made up of
(Slide on)2.3m locals (2/3 of total workforce)
[click] 1.1m foreigners (1/3 of total workforce)
“2/3” Local [click] + “1/3” Foreign [click]
= “1“ Singapore Workforce” [click]
With slower manpower growth
We need to maximise the potential
o Of our 2/3 local, 1/3 foreign
So that together, we can maximise the potential of our
Total Singapore Workforce
We must strive for 2/3 + 1/3
not just =1, but >1 [click]
23STRICKLY EMBARGOED UNTIL AFTER DELIVERY PLEASE CHECK AGAINST DELIVERY IN PARLIAMENT First, we must not allow 2/3 + 1/3 to be
STRICKLY EMBARGOED UNTIL AFTER DELIVERY
PLEASE CHECK AGAINST DELIVERY IN PARLIAMENT
This is to eradicate “nationality bias” as described by
Mr Patrick Tay
In respond to Mr Patrick Tay and Mr Chong Kee Hiong
These companies on our watchlist come from various
sectors, including employment agencies and placement
companies
Mr Patrick Tay, Ms Jessica Tan, Mr Chong Kee Hiong,
Mr Lim Biow Chuan and Associate Professor Faishal
Ibrahim asked for an update
Since we started in Feb 2016, a total of 1,900 EP
applications
Have been withheld or rejected by MOM
Or withdrawn by the companies
TAFEP worked with them
To improve their HR practices
25STRICKLY EMBARGOED UNTIL AFTER DELIVERY
PLEASE CHECK AGAINST DELIVERY IN PARLIAMENT
WSG, NTUC-e2i and IHLs worked with them
To recruit fresh graduates and mid-career local
PMETs
As a result, >2,200 Singaporean PMETs were hired
One of these companies is an IT services firm
With > 1000 PMET employees
It was placed on Watchlist in Feb 2016
The company worked with TAFEP and IMDA
To attract and retain locals
And hired about 200 more Singaporean PMETs
After exiting from the Watchlist
Company continues to adopt fairer and more
progressive HR practices
Win-win outcomes for business and workers
26STRICKLY EMBARGOED UNTIL AFTER DELIVERY
PLEASE CHECK AGAINST DELIVERY IN PARLIAMENT
Another example
A private wealth management firm with
o 80 PMET employees
Used to hire mostly foreign PMETs
o To serve mostly expatriate clients
It was placed on our Watchlist in Feb 2016
Since then, it has re-positioned to serve
Both local and expatriate clients
It hired 30 Singaporean wealth managers and PMETs
Train them here and overseas
After being removed from the watchlist
The company continues to hire and develop
More local wealth managers and PMET
To grow their business
Again, win-win outcomes
27STRICKLY EMBARGOED UNTIL AFTER DELIVERY
PLEASE CHECK AGAINST DELIVERY IN PARLIAMENT
So far, 150 companies have improved their HR
practices
And exited from the Watchlist
Of the remaining 350 companies
60 have not been cooperative
o And showed no sign of improvement
We have curtailed their work pass privileges
No new EP applications
No renewal of existing EPs
Until they adopt fair HR practices
Sir, we will continue to fight this win-lose mindset
Of 2/3 + 1/3 < 1
Because it results
In a waste of our precious human capital
28STRICKLY EMBARGOED UNTIL AFTER DELIVERY
PLEASE CHECK AGAINST DELIVERY IN PARLIAMENT
(Slide on) Second, for 2/3 + 1/3 to be >1, we will make
“2/3 Local” better and strengthen our local core. (Slide
off)
I agree with Ms Jessica Tan and Mr Lim Biow Chuan
We will continue to enhance employment and
employability of Singaporean PMETs
We will create more jobs of the future for them
Through Industry Transformation
More skills of the future in them
Through SkillsFuture, and
More careers of the future with them
Through Adapt and Grow
29STRICKLY EMBARGOED UNTIL AFTER DELIVERY
PLEASE CHECK AGAINST DELIVERY IN PARLIAMENT
To ensure fair access to more jobs and better jobs, we
will strengthen FCF further as suggested by Mr Patrick
Tay
We will expand the requirement to advertise jobs on
national Jobs Bank before EP application To cover more
employers
Not just those with >25 employees
But also those with at least 10 employees
It will also cover more jobs
With salary of up to $12000 at today
o To jobs with salary of up to $15000
This will take effect from 1 July 2018
30STRICKLY EMBARGOED UNTIL AFTER DELIVERY
PLEASE CHECK AGAINST DELIVERY IN PARLIAMENT
(Slide on) Third, for 2/3 + 1/3 to be >1, we will make
“1/3 Foreign” better, a point made by Ms Jessica Tan
(Slide off)
As we moderate the intake of foreign manpower
Especially foreign professionals
Employers say
They cannot find enough locals
o Who have the skills
o And are willing to do the jobs
They say this has slowed down
Their pace of business transformation
o And growth
They feel our foreign manpower policy is too tight
To them, MOM is not pro-business enough
31STRICKLY EMBARGOED UNTIL AFTER DELIVERY
PLEASE CHECK AGAINST DELIVERY IN PARLIAMENT
But on the other hand, we hear ground feedback that
There are still too many foreigners, too much
competition here for jobs
They feel our foreign manpower policy is too loose
To them, MOM is not pro-worker enough
Sir, the policy objective of MOM
Is to strike a fine and dynamic balance
Between the two
Open enough
To be Pro-business
To support business growth
Yet, tight enough
To be Pro-worker
To enhance local employment growth
32STRICKLY EMBARGOED UNTIL AFTER DELIVERY
PLEASE CHECK AGAINST DELIVERY IN PARLIAMENT
We therefore stay open to the intake of foreign
professionals
But continue to tighten the criteria for EP
In 2014 and 2017
This is to calibrate the growth of EP holders
And enhance their overall quality
Both at the same time
A/P Faishal Ibrahim asks for the outcomes
In the past 3 years, on average
We approved about 50k new EPs each year
But at the same time, a similar number of EPs
Were not renewed
The growth of EPs therefore slowed
To an average of 3k a year in the past three
years
This is significantly lower than the peak
Of 32k in one year, in 2011
33STRICKLY EMBARGOED UNTIL AFTER DELIVERY
PLEASE CHECK AGAINST DELIVERY IN PARLIAMENT
On the whole
Local share of net growth in PMET employment
Improved from an average of 68% in the
previous 3 years (2012-14)
To an average of 78% in the past 3 years
Out of every 10 net increase in PMET jobs
7 to 8 went to our local PMETs
Sectors where locals accounted for
A large majority of the net growth in PMET
employment include
o Professional Services
o Infocomm
o Healthcare
o Financial & Insurance
34STRICKLY EMBARGOED UNTIL AFTER DELIVERY
PLEASE CHECK AGAINST DELIVERY IN PARLIAMENT
In short, we were able to draw on foreign professionals
To help meet the manpower needs of the industry
While at the same time
Strengthen our local core
By working together
Complementing each other more
o And competing with each other less
Our Singapore workforce of
2/3 local and 1/3 foreign
Will be able to support a faster pace of industry
transformation
For us to compete better globally
o For better investments and jobs
35STRICKLY EMBARGOED UNTIL AFTER DELIVERY
PLEASE CHECK AGAINST DELIVERY IN PARLIAMENT
Mr Lee Yi Shyan asked for flexibility for employers to
hire foreign PMETs, especially those with skills in great
shortage locally
Sir, let me clarify that the tightening of EP criteria
Should not be an issue for most foreign
professionals with skills
o In great demand globally
o And in short supply locally
These include AI, data analytics
Advanced Manufacturing, Digital Services
Expertise often cited in the media by various business
groups
Such professionals would command a salary premium
And should be able to meet our EP criteria – in
terms of salary, qualification and experience
36STRICKLY EMBARGOED UNTIL AFTER DELIVERY
PLEASE CHECK AGAINST DELIVERY IN PARLIAMENT
With the exception of those on our FCF Watchlist
As long as the employing companies
have complied with our FCF
In giving fair consideration to our local PMETs
They should generally be able to obtain approval for
work pass applications
For such specialists in short supply globally
And in critical shortage locally
In the exceptional situation where the EP applicants
with the skillsets much needed here and yet are not
able to meet our EP criteria
We do allow sector agencies to exercise some
flexibility but only in a highly selective manner
On the condition that there is indeed a shortage of
such skills and that these foreign professionals are
needed to help speed up our industry
transformation and growth
37STRICKLY EMBARGOED UNTIL AFTER DELIVERY
PLEASE CHECK AGAINST DELIVERY IN PARLIAMENT
Sir, on balance, our manpower policy is
Both Pro-business and Pro-worker
It is designed to improve the quality of both our local
workforce and foreign workforce in Singapore, and
Enhance the complementarity with each other
This is so that we can
Meet the manpower needs of businesses
o For them to transform and grow
And the career aspiration of our people
o For them to adapt and grow
Guided by this policy objective, we will introduce
further changes to make “1/3 Foreign” better
For S Pass holders
Who are mid-level skilled foreigners
Their minimum qualifying salary
o Was last updated in 2013
38STRICKLY EMBARGOED UNTIL AFTER DELIVERY
PLEASE CHECK AGAINST DELIVERY IN PARLIAMENT
I agree with Mr Patrick Tay that it is timely to review
We will increase entry level salary by $200
Up from $2,200 to $2,400
As per current practice
Those with more years of experience
Will need to meet higher salary thresholds
To allow companies more time to adjust
The increase will be done in two steps
o $100 from January 2019
o Next $100 from January 2020
We will also provide a transition period for existing S
Pass holders
For Work Permit Holders
There will be no further tightening for now
Hence no change to dependency ratio ceiling
(DRC) and levy
39STRICKLY EMBARGOED UNTIL AFTER DELIVERY
PLEASE CHECK AGAINST DELIVERY IN PARLIAMENT
As pointed out by Mr Melvin Yong and Mr Thomas
Chua - Our focus is to enhance quality and productivity
Work permit holders at basic skill level (R2)
From non-traditional sources (NTS), PRC
Are now allowed to work here for maximum of
10 years
Those with higher skills (R1) in Services and
Manufacturing
Are allowed to stay up to 18 years
22 years if they work in Construction, Process and
Marine Shipyard
In response to feedback from the industry
We will extend the maximum period of employment
By another 4 years
This will apply to all sectors, and for both R1 and R2
To take effect from 1 May 2018
40STRICKLY EMBARGOED UNTIL AFTER DELIVERY
PLEASE CHECK AGAINST DELIVERY IN PARLIAMENT
We will also give employers more path ways to
improve the quality of their foreign workers
Besides skills certification
Those who are more experienced with higher
pay can also be upgraded from R2 to R1
This is currently allowed for Construction, Process and
Services sectors
We will now extend it to Manufacturing
o And Marine Shipyard sectors
We believe this will be helpful to companies
That want to hire and retain
Their better work permit holders
It will take effect from 1 Sep 2018
41STRICKLY EMBARGOED UNTIL AFTER DELIVERY
PLEASE CHECK AGAINST DELIVERY IN PARLIAMENT
(Slide on) Fourth, for 2/3 + 1/3 to be >1, we need to
make the “+” better [click]
To recognise and spread the adoption of progressive
HR practices
We launched HCP in Feb last year (Slide off)
134 HC Partners are now on board
They are from various sectors
Ranging from MNCs to SMEs
Together, they employ over 140,000 locals
Mr Patrick Tay, Ms Jessica Tan and Associate Professor
Faishal Ibrahim asked for an update
Sir, HCP companies believe in transforming HR into HC
Not consumption of HR but investment in HC
Turning HR into their most precious HC
42STRICKLY EMBARGOED UNTIL AFTER DELIVERY
PLEASE CHECK AGAINST DELIVERY IN PARLIAMENT
First, they have strong local core at all levels
Collectively, local PMETs account for
o About 90% of total PMET workforce
o Not just >90% at entry to middle level
o But also >80% at senior to top levels
Second, their workforce is highly inclusive
Jobs are redesigned
o To be less physically demanding
o For the older workers
Flexible Work Arrangements are offered
o To allow those with care responsibility at
home to share job
o For employees to go on sabbaticals
And pursue new opportunities within
the company when they return
43STRICKLY EMBARGOED UNTIL AFTER DELIVERY
PLEASE CHECK AGAINST DELIVERY IN PARLIAMENT
o To pursue part-time studies to upgrade
themselves
o Or enable retired employees to return to
work on part-time basis
Third, HCP companies believe strongly in strengthening
local-foreign complementarity
They transfer skills from foreign experts to our
local workforce
And build up local core in their senior
management team
One HCPartner which left a deep impression on me is
Keystone Cable
A local SME (with 140 employees)
It is a maker of power and control cables
With a strong foothold in the region
44STRICKLY EMBARGOED UNTIL AFTER DELIVERY
PLEASE CHECK AGAINST DELIVERY IN PARLIAMENT
Plant is located in Senoko
Not easy to attract locals
It has to work doubly hard
To compete with MNCs for talent
As a flexible and nimble SME
It embraces the mindset of HC development
Started off as a delivery driver
Mr Jimmy Wong is now a Sales Executive
He brought in $1m sales
o In just 6 months in his new role
He is now being groomed to take on clients in
overseas market
45STRICKLY EMBARGOED UNTIL AFTER DELIVERY
PLEASE CHECK AGAINST DELIVERY IN PARLIAMENT
The company was able to
Attract20% more job applications in 2017
What is even more impressive is that
100% of those they offered jobs to
Accepted their offers!
Sir, we will keep growing the HCP community
As suggested by Mr Patrick Tay
We will also promote adoption of TS, as reminded by
Ms Thana
(Slide on)Fifth and last, we must
Strengthen the synergy
Between “2/3 Local” and “1/3 Foreign”
So that the outcome will not be “=1”, but “>1”
(Slide off)
46STRICKLY EMBARGOED UNTIL AFTER DELIVERY
PLEASE CHECK AGAINST DELIVERY IN PARLIAMENT
Globally, there is big concern that technology will take
away many jobs
Yet, we see an amazing race to embrace
technology
China is the world’s #1 user of industrial robots
Globally, there is big concern that foreigners will take
away jobs from the locals
Yet, more countries are opening up even more
To attract foreigners with skills and expertise to
offer
Including China and Japan
This remind me of the story of two men walking in
jungle
In the global village
It is not possible to out run technology
But we can out run the competition
Those running slower
Will see more jobs being destroyed by
technology
47STRICKLY EMBARGOED UNTIL AFTER DELIVERY
PLEASE CHECK AGAINST DELIVERY IN PARLIAMENT
Those who run faster
Can create new jobs with technology
More than the loss of existing jobs to technology
This explains why China is running fast with robots
Japan is not slow too
With the help of Robots and AI
Honda Motor, Canon, Pioneer
Bring production
o Of car components
o Car navigation system
o Digital camera
Back to Japan
“Made-in-Japan” is making a comeback
With the help of not just robots
But intelligent robots and human co-workers
48STRICKLY EMBARGOED UNTIL AFTER DELIVERY
PLEASE CHECK AGAINST DELIVERY IN PARLIAMENT
With the world out there running fast
Just imagine, what if one day
A “cheaper” China becomes better by using
technology faster than us
A “better” Japan becomes cheaper also by using
technology faster than us
If this happens
They would become CBF than us
What future will we have then?
So Singapore must run too
The faster the better
And we are
We are running fast in Advanced Manufacturing
49STRICKLY EMBARGOED UNTIL AFTER DELIVERY
PLEASE CHECK AGAINST DELIVERY IN PARLIAMENT
At Bedok Industrial Estate, Panasonic is building a
Smart Factory there
It will have machines fitted with sensors
o Inter-connected to work with each other
Operation will be more manpower lean
o Local workers will be retrained to take on
new and better jobs
The adoption of predictive management
o Will mean near-zero operation incidents
o Such as no machine breakdown, no product
defect
We are also running fast in AI
We now have AI Singapore
o Our National AI programme
o To anchor deep national capabilities in AI
We also have AI Business Partnership
Programme
o To encourage and facilitate AI adoption
50STRICKLY EMBARGOED UNTIL AFTER DELIVERY
PLEASE CHECK AGAINST DELIVERY IN PARLIAMENT
And the AI Apprenticeship Programme
To develop AI professionals
In key skills such as machine learning
o And deep learning
In Digital Services
MAS is promoting FinTech
o To realise our vision of becoming a Smart
Financial Centre
It is working with industry to push through ground-
breaking initiatives
Blockchain, cryptography, quantum computing
and big data, AI
We move so fast that today, we are one of the top
global FinTech hubs
Alongside London, New York and Silicon Valley
51STRICKLY EMBARGOED UNTIL AFTER DELIVERY
PLEASE CHECK AGAINST DELIVERY IN PARLIAMENT
We are running fast too in becoming a Smart Nation
In the 80’s, we became an Intelligent Island
o Through National Computerisation
o Office Automation
o And Computer Integrated Manufacturing
This time round, we aspire to become
o A Smart Nation
o And a Digital Government
Through Internet of Things
o National Digital Identity
o Smart Urban Mobility
o Cybersecurity
o And more
Sir, all these are important and strategic initiatives to
bring and keep us at the forefront of global technology
and innovation
52STRICKLY EMBARGOED UNTIL AFTER DELIVERY
PLEASE CHECK AGAINST DELIVERY IN PARLIAMENT
However, to truly succeed in becoming
A pervasively innovative economy and society,
We need to do more
We need to speed up the development and transfer
Of new and better global capabilities
o To our local workforce
A point made by Mr Chong Kee Hiong
Not just in high tech, high profile and high impact
sectors
But in as many sectors as possible
o And as quickly as possible
This is why we are piloting the CTP
Because the potential scope for transfer and
development of new capabilities
Is limited only by our focus and determination
Mr Patrick Tay asked for an update
I will illustrate with a few examples
53STRICKLY EMBARGOED UNTIL AFTER DELIVERY
PLEASE CHECK AGAINST DELIVERY IN PARLIAMENT
In Precision Engineering
Smart phone
o Is getting bigger
o But also flatter, lighter
Hence, our local industry needs to use softer
alloy
o And fit in more chips and components
Company need high speed, high precision
machines
o To prevent cracking and warping
Local engineers and technicians are also
required to have new skills
o To advise on product design
o And materials selection
To compete well, our local industry needs to acquire
new technology and new capability to offer
o Lower cost (cheaper)
o Higher accuracy (better)
o Shorter cycle time (faster)
54STRICKLY EMBARGOED UNTIL AFTER DELIVERY
PLEASE CHECK AGAINST DELIVERY IN PARLIAMENT
Under CTP - over 15 months
We support them to
Install High Speed High Precision machines
And to bring in Foreign specialists from Germany
To train local trainers (local + remote coaching)
Who are now training local trainees
o From several companies in the industry
In Pharmaceutical Transportation
Today, more than 20 tonnes of global pharmaceutical
cargo go through Changi Airport annually
Global marketing is still growing, fast
But out of 209 companies certified by IATA to handle
such cargo
We have only 10
55STRICKLY EMBARGOED UNTIL AFTER DELIVERY
PLEASE CHECK AGAINST DELIVERY IN PARLIAMENT
To grow Singapore’s market share in a global industry
that is growing fast
SAAA@Singapore, CAG, CAAS, industry
Want to bring in IATA certified trainers (UK,
Dubai)
To train a group of local specialists
Who will then multiply this capability by training
other locals
In total, we aim for up to 25 companies to obtain IATA
certification
CTP is relevant to domestic sectors too
Lift Maintenance
Current approach is to
Wait for breakdown
o Than Repair, then
Wait for next breakdown
56STRICKLY EMBARGOED UNTIL AFTER DELIVERY
PLEASE CHECK AGAINST DELIVERY IN PARLIAMENT
A better approach is to
Make our lifts “smart lifts”
Use predictive data analytics & maintenance
To shift from Corrective Maintenance
o Wait for failure
To Preventive Maintenance
o Periodic maintenance before failure
To Predictive Maintenance
o Reduce probability of failure
Under CTP – We will partner with leading global
vendors
To bring in overseas specialists
o Send local trainers overseas
o Return to train local trainees locally
In this way, we can anchor “smart lifts”
capability in Singapore
57STRICKLY EMBARGOED UNTIL AFTER DELIVERY
PLEASE CHECK AGAINST DELIVERY IN PARLIAMENT
Furniture Manufacturing
Not many of us know that
Our local furniture industry
o Is a S$6b industry
o With over 1,900 companies
Manufacturing facilities here
o Focus on made-to-order furniture
Today, we can design and make furniture
Using 3-axis Computer Numeric Control (CNC)
machines
o Left – Right, Up – Down, Front – Back
In the words of the industry, we are still at
Industry 2.0
58STRICKLY EMBARGOED UNTIL AFTER DELIVERY
PLEASE CHECK AGAINST DELIVERY IN PARLIAMENT
To upgrade the industry to 4.0
We will help them bring in 5-axis CNC machines
o Tool can twist and turn
o Cut in different directions
o To create contours, complex shapes
This will make the job of Craftsmen ESS
Under CTP, Singapore Furniture Industries Council
(SFIC)
Together with WSG
Will bring in specialists from Italy
To train local trainers and local craftsmen
59STRICKLY EMBARGOED UNTIL AFTER DELIVERY
PLEASE CHECK AGAINST DELIVERY IN PARLIAMENT
Another example of domestic industry is Car
Maintenance
Market for Hybrid Cars
o Grew by 200% in past 2 years
o From 6k to 20K
New capability needed for repair and maintenance of
hybrid car
No longer just changing oil and filter
o Checking and replacing battery
o Lights and brakes
But have to handle a completely different system
Carry out battery load test
High voltage cable inspection
Front motor test
Hybrid transmission test etc
60STRICKLY EMBARGOED UNTIL AFTER DELIVERY
PLEASE CHECK AGAINST DELIVERY IN PARLIAMENT
Currently, independent third party car workshops
Have no access to certifiable training
To improve skillsets of local technicians
Under CTP – we will partner Singapore Motor
Workshop Association
Bring in specialists from Germany
To train local mechanics
And to transfer the capability to our local
industry
Sir, these are just some examples to illustrate the point
That the scope for capability transfer is
tremendous
o Hi Tech to Hi Touch
o MNCs to SMEs
o Domestic to export oriented industries
We will support good projects
From any company and any industry
61STRICKLY EMBARGOED UNTIL AFTER DELIVERY
PLEASE CHECK AGAINST DELIVERY IN PARLIAMENT
Beyond those currently supported by economic
agencies for specific sectors
Mr Patrick Tay asked for details of CTP
To achieve real transfer of capability
Project duration is mostly in months and years
o Not days and weeks
Specialists have to do more than just training
o But also coaching and working alongside
our local workers
o Be their trainer, mentor and guide
Costs can often be the obstacles
o Especially for local enterprises
Under CTP, we will co-fund the cost of capability
transfer
For foreign specialists to train our locals here
62STRICKLY EMBARGOED UNTIL AFTER DELIVERY
PLEASE CHECK AGAINST DELIVERY IN PARLIAMENT
Or for local trainers to be trained overseas
So that over time
We will be able to anchor more capabilities here
To upgrade our local workforce and industries
As we transform, adapt and grow
In reply to Mr Low Thia Khiang
In our project evaluation
We will consult sector agencies
And be guided by the ITM
Mr Patrick Tay asked about the funding levels.
Funding support will range from 30%, 50% and 70% of
the cost of capability transfer, including
Salary cost of expert trainers
o Both local and foreign
Cost of living allowance
63STRICKLY EMBARGOED UNTIL AFTER DELIVERY
PLEASE CHECK AGAINST DELIVERY IN PARLIAMENT
o In Singapore and overseas
Airfare
Training equipment for the industry
Projects with higher impact at the industry level
And those benefiting SMEs
Will receive higher level of support
Total funding per project is currently capped at $300k
In exceptional cases as highlighted by Mr Patrick Tay
Where cost of capability transfer is higher
And local expertise is much needed but lacking
Funding support of up to 90%
o And project cost of more than $300k
o Will be assessed
o On a case by case basis
Mr Desmond Choo said we should scale up CTP and
accelerate the acquisition of new capabilities
64STRICKLY EMBARGOED UNTIL AFTER DELIVERY
PLEASE CHECK AGAINST DELIVERY IN PARLIAMENT
I agree
We started the pilot late last year
We will reach out extensively
o To create more awareness
o And generate more interest
We hope our sector agencies and tripartite partners
Including LM and various industry groups
Will make good use of CTP
To fill the many capability gaps
o In a more pervasive manner
We hope to doing this across all sectors, all sizes of
companies
As quickly as possible
Sir, our strategy of 2/3 + 1/3 >1
Will help ensure that our Singapore Workforce
65STRICKLY EMBARGOED UNTIL AFTER DELIVERY
PLEASE CHECK AGAINST DELIVERY IN PARLIAMENT
o Can better support the growth
o Of an innovative Singapore Economy
And also create better skills, jobs and careers
o For an inclusive Singapore Workforce
2/3 + 1/3 >1 may be bad mathematics
But if we all work together
I am confident that even bad mathematics
Can be turned into good policy
For the benefits of all
(Mandarin speech)
66STRICKLY EMBARGOED UNTIL AFTER DELIVERY
PLEASE CHECK AGAINST DELIVERY IN PARLIAMENT
Conclusion
Sir, we firmly believe that job is the best welfare
Full employment is the best protection
For our people
Together with our tripartite partners
At the national and sector levels
We have to do our best to transform
Across all sectors
For our economy to transform and grow
Pervasively, as One Singapore Unlimited
We also have to do our best
To create better jobs, better skills
And strive for better employment outcomes
For everyone to adapt and grow
Inclusively, as One Singapore United
67STRICKLY EMBARGOED UNTIL AFTER DELIVERY
PLEASE CHECK AGAINST DELIVERY IN PARLIAMENT
Advances in technology
Will destroy many old jobs
Globally and here in Singapore
But if we do more together
To build new and better capability
Faster than our competitors
We can move ahead and stay ahead
To make every enterprise a better enterprise
Every job a better job
Every worker a better worker
Together, we can strive
Innovative, inclusive and sustainable growth
For everyone
And ultimately
As Minister Heng said in Budget 2018:
Together, A Better Future
68You can also read
