Speech at The Singapore Chinese Chamber of Commerce and Industry (SCCCI) Mid-Autumn Festival Celebrations
Dr Ng Eng Hen, Minister for Manpower and Second Minister for Defence, SCCCI Auditorium
Mr Chua Thian Poh, President, Singapore Chinese Chamber of Commerce and Industry
Distinguished Guests
Ladies and Gentlemen
Introduction
1. Good evening. I am delighted to join you today in celebrating the Mid-Autumn Festival.
2. The Mid-Autumn Festival is much-cherished by the Chinese around the world. Traditionally, it is the date where farmers celebrate the abundance of the summer's harvest, and where families gather to admire the moon (赏月shǎng yuè) at its brightest and fullest. In modern Singapore, I am heartened that many Singaporeans continue to celebrate the festival as a time for family reunions. Young and old generations come together on balmy nights to savour both traditional and the latest mooncake creations. For the children in particular, the opportunity to take walks with their lanterns never fails to excite.
3. It is important that organizations like SCCCI, the largest business grouping in Singapore, continue to promote traditional values that emphasise family ties. These efforts help to forge and strengthen our society as we move forward together.
Ageing Population
4. We need to maintain our social structure where family members continue to support one another. We need to inculcate filial piety in a younger generation that is exposed to different cultural norms. One major challenge that Singapore faces is the combined impact of fewer babies and longer lifespans. Our society will age and have smaller families. With more elderly Singaporeans around, there will be fewer young Singaporeans to support them through their golden years.
5. This is not unique to Singapore. Countries around the world, such as Japan, Italy and Germany, are experiencing the same societal trends. Many countries are therefore extending work and delaying retirement and pensions in response to an ageing population. Singaporeans too are going to live longer. Life expectancy at birth has increased from 61 years in 1957 to 80 years today, amongst the highest in the world. But this is only an average figure. Of those aged 62 in 2006, 1 in 2 will live beyond 85; 1 in 7 beyond age 95; and 1 in 20 to age 100 and beyond.
6. That Singaporeans are living longer is another indication that we have become a First World Country. Our people live in a clean environment, have good nutrition and basic medical care. Living long is a good thing. Being able to live to an old age has fascinated people for ages, and longevity was very much desired. Countless folklore spoke of quests for eternal youth; and indeed Chang'e (嫦娥cháng é) was banished to the moon after consuming an elixir of immortality. Living to a ripe old age (长命百岁cháng mìng bǎi suì) is no longer just within the realm of folklore for Singaporeans. Some of our parents and grandparents are indeed living to a 100 years or even older, and in time to come some of us will too. The challenge is ensuring that with increased longevity, elderly Singaporeans are able to sustain their quality of life through their retirement years. We need to “add life to the years that have been added to life”, as so elegantly articulated in the United Nations Principles for Older Persons.
7. Our traditional model, grounded in Confucian values of filial piety, has always been that of children supporting their parents emotionally and financially in old age. This is a virtue which we should preserve. But the reality is that with smaller families in the future, our children will need to shoulder an increasingly larger share of the responsibility. In 1960, 23 people aged 15 to 64 supported 1 person aged 65 and above. Today, the ratio is 8:1, and by 2030 the ratio will fall to 4:1. Our children will need to take care of their own spouses and children, and plan for their own retirement needs too. We should therefore seek to make provisions for our own retirement.
8. The recent changes to the CPF, which I elaborated in Parliament a few days ago, will help boost the retirement adequacy of Singaporeans. Higher CPF interests, Workfare and bonuses will significantly increase the CPF savings of all members. But we also need to ensure that Singaporeans set aside some amount from their CPF savings, in case they live longer than expected. This is only fair, otherwise when they run out of CPF savings, other Singaporeans will have to take care of them. And hence the Government has appointed a committee to study how a National Longevity Insurance Scheme should be designed.
Enhanced WIS and Re-Employment Legislation
9. Since Government focused on this issue, Singaporeans are discussing this openly. This is a positive development. Many are willing to work longer to save enough for old age. We should help workers adjust too. This is why we introduced two other measures to help workers work longer.
10. We have increased Workfare Income Supplement (WIS) by 50% for those above 55 to 60 - $150 a month; and by 100% for those aged above 60 - to a maximum of $200 a month. This will encourage older workers to work longer, by giving them higher take-home pay and also more CPF contributions.
11. Second, the Government will introduce re-employment legislation by 2012. The legislation will require employers to offer re-employment to workers up to age 65. This will eventually be raised to 67. I urge all employers to take steps now before the legislation comes on-stream, to put in place the necessary HR structures to facilitate re-employment of their staff.
12. The SCCCI can play a pivotal role in this regard, by helping members work out and adopt the necessary changes to HR structures and employment practices. The sooner you get yourself ready, the better. In fact, I would encourage employers who are ready today, to begin re-employing workers who have reached the retirement age. With the support from employers, unions and the government, I am confident that we can all succeed.
Conclusion
13. We are living in an unprecedented period of history, characterized by relative peace and prosperity over the past 50 years. Alongside sustained progress, life expectancies have soared in many developed countries. The social impact of an ageing population is only starting to be fully appreciated, but we need to take far-sighted measures to ensure that our social compact remains strong, now and into the future. With these changes, our CPF system will be strengthened and will help improve the retirement security for Singaporeans. It will help them face the future with greater confidence.
14. Let me also take this opportunity to congratulate the recipients of the SCCCF Business Scholarships and the SCCCF-Mendaki Joint Scholarships. I wish you every success in your future endeavors.
15. Have a pleasant Mid-Autumn Festival. Thank you.