Speech at Minister’s Response at the Debate on the President's Address

MOM will focus on three key priority areas in the next few years.

2.   Firstly, we aim to develop a Globally Competitive Workforce. In this downturn, we will help companies cut costs to save jobs; train workers to retain their jobs or move into new jobs; create employment opportunities and help the unemployed find jobs. We will leverage on the Skills Programme for Upgrading and Resilience (SPUR) to build up the capabilities of our workforce. We will focus on raising productivity and encouraging our enterprises to innovate. We will promote progressive HR practices to develop local talent and attract foreign talent.

3.   Secondly, we will enhance the Income Security and Lifelong Employability of Singaporeans. We will implement CPF LIFE from September 2009, and enact re-employment legislation by 2012. We will review the Workfare Income Supplement scheme in 2010, taking into consideration the suggestions and feedback raised.

4.   Thirdly, we will develop Globally Leading Workplaces, through improving Safety & Health, building progressive workplaces, and promoting good employment practices.

Dealing with the Downturn from a Position of Strength

5.   Let me touch on these two issues in greater detail.

6.   This is the most challenging economic downturn we have encountered but we are facing this recession from a position of strength. We have been building up our Continuing Education and Training (CET) infrastructure over the last few years. I agree that it is important to have a comprehensive training blueprint for our workers. That is why we launched the CET Masterplan last year. Under this plan, we will invest significant resources to build up a CET system that will help employers enhance the quality and productivity of their workers, help workers acquire industry relevant skills and seize opportunities in new growth areas.

7.   This has also allowed us to quickly roll out numerous programmes such as SPUR and the Professionals Skills Programme (PSP). Together with our Tripartite partners, we have revised the guidelines to help employers and workers on Managing Excess Manpower during the downturn.

8.   The response to SPUR has been very encouraging. As at end April 2009, that is, within five months of launching SPUR, about 94,000 workers have been committed to training under SPUR.

9.   SPUR and the resilience package have had a positive impact in helping companies reduce retrenchments, keeping our unemployment rate low. Despite our GDP declining by 10.1% (year-on-year) in the first Quarter of 2009, our seasonally adjusted unemployment rate of 3.2%p remains lower than that in many other countries including the US, Germany, Australia and Hong Kong which are facing higher unemployment rates of between 5.2% and 8.5%. Our strategies are sound and our tripartite efforts have been effective in saving jobs.

10.   Nevertheless, we will continue to closely monitor the effectiveness of these programmes and make refinements where necessary. We have already introduced several enhancements to SPUR. Recently, we increased the Absentee Payroll cap under SPUR to better support training for Professionals, Managers, Executives & Technicians (PMETs), a group that several members have expressed their concerns about. We also introduced the Professional Skills Programme Traineeships (PSPT) scheme for companies to build new capabilities in growth sectors, as well as the SPUR-JOBS, a scheme to encourage recruitment and retention of local workers.

Helping Job Seekers Find Jobs

11.  Even in this downturn, there are still new jobs being created. We can expect at least 45,000 jobs to be created during these two years, including many for PMETs. Many sectors are still enjoying good employment growth. The Creative industries sector, for example, is a bright spot in the PMET job market. Companies such as Koei plan to double the size of their operations and add 60 new staff over the next two years. Ubisoft, is looking to expand its headcount from 70 to 300. Other sectors that are hiring include social services and childcare which will have some 1,000 new jobs over the next few years. Positions such as social work and teaching professionals are in demand in this industry.

12.  There are presently more than 21,000 job postings immediately available in NTUC's and WDA's job databases. Our Career Centres at the Community Development Councils (CDCs) and NTUC's e2i play a critical role in helping people overcome their employment barriers and acquire skills in demand. Career consultants do more than job matching. They work with job seekers to provide them with labour market information, prepare them for interviews, enhance their job search skills and also refer them to relevant skills upgrading courses.

13.  I am encouraged to see that job seekers are increasingly flexible and adaptable. Many of them are also taking advantage of the wide range of training available to acquire new skills that will help them to be productive and stay employable, or take on a new job so that they can continue to work. In the first four months of this year, the career centres at the CDCs and NTUC's e2i have collectively placed about 10,500 job seekers into jobs. Another 500 PMETs have also undergone short career and employability workshops organised by the CDCs.

14.  One example is Madam Koo Hua Yong, aged 40 who was retrenched from her job as a production worker. When Madam Koo first approached the North East CDC for assistance, she was apprehensive about making a transition into a different sector as she had been working in the manufacturing sector for the past 20 years. After being counselled by the career consultant, she was more confident and willing to switch to a job in another sector. She went for training at the Health Management International (HMI) where she received a WSQ Higher Certificate in Community and Social Services in Apr 2009. Madam Koo started work as a Healthcare Assistant in early May 2009 and is adjusting well to her new job.

15.  I urge job seekers to follow the example of Mdm Koo and be prepared to switch to other new careers.

Older Workers

16.  On the challenges faced by older workers in this downturn, some of them have lost their jobs and are indeed finding it difficult to get a new job. We need to press on in our efforts to encourage employers to recruit and retain older workers even though it is more challenging in a recession. The labour market will tighten once the economy recovers and it is important for companies to realize this and maximize the contributions of their older workers. We must also help older workers up-skill and re-skill in order to seize the jobs that are still available even in this downturn.

17.  Madam Winnie Tong, aged 52, is a good example. She worked as a clerk-cum-typist for seven years until November 2008 when her company closed down. She signed up for a WSQ higher certificate in healthcare support (administrative support) to train as a Clinical Administrative Assistant. Madam Tong secured a job at Raffles Hospital while undergoing training and has now started work upon completing her training.

18.  The Tripartite Partners have been working together to help employers prepare for the introduction of the re-employment legislation in 2012. The Tripartite Advisory on Re-employment of Older Workers will be updated later this year.

Local-Foreign Divide

19.  Prime Minister has explained that foreign talents and workers have helped us grow our economy, by building our infrastructure, bolstering our workforce and filling critical gaps. They form an integral part of our labour market and provide us with an important competitive advantage. The key is balance. This requires careful calibration of our foreign worker policies such that Singaporeans have jobs and our companies continue to have regulated access to foreign workers to remain competitive. We have adopted a win-win strategy. We have tilted the balance in favour of local workers during this downturn, by improving their employability through SPUR, and enhancing their cost competitiveness through Jobs Credit and WIS.

20.  In this downturn, we expect the number of foreign workers to fall but demand for these workers will grow again when the economy recovers. However, the overall size of our workforce cannot grow indefinitely. There is a natural limit to the size of the local workforce. There are also limits to the size of foreign workforce given the constraints on our infrastructure and critical resources such as land. We should not become overly dependent on foreign workers. My Ministry will support the new Economic Strategies Committee in looking at how we can strike a balance and maximize the contributions from our workforce, both local and foreign.

21.  We must create good, high-value jobs for Singaporeans, improve their skills and raise their productivity. To do that, we must continue to invest in education to help each of them realize their potential. We must also promote life-long learning through our CET system, so that they can constantly upgrade themselves. This desire to acquire new skills and knowledge must continue beyond the recession. There is a Chinese saying “学无止境”. This way, we can ensure that the quality of the local workforce will continue to improve over the long term.

22.  As we upgrade the quality of our local workforce through our CET framework and SPUR, we are also fine-tuning our foreign manpower regulatory framework to encourage our employers to bring in better quality and better skilled foreign workers. We have announced some changes in this regard during the COS this year. We will continue to monitor the situation closely and make further adjustments if necessary.

Conclusion

23.  As we manage the recession in the short term, we must not lose sight of our long term vision of building a globally competitive workforce, enhancing income security and lifelong employability, and building globally leading workplaces.

24.  Tripartism plays an important role in addressing short term challenges of the down turn as well as in realizing this long term vision. The strong partnership among unions, employers and the Government gives Singapore a unique advantage. We must continue to make conscious efforts to cultivate and strengthen this partnership. By working together as a team, we can leverage on our strengths to position our economy and workforce for the upturn. This way, the journey through the recession can be a positive and constructive one, and we will emerge stronger and more united.