Speech at Republic of Singapore, at the ILO Summit on the Global Jobs Crisis, at the 98th International Labour Conference,

Mr Gan Kim Yong, Minister , Geneva, Switzerland

1.   Mr President, on behalf of the Singapore delegation, I would like to congratulate you on your election as the President of the 98th Session of the International Labour Conference.

Impact of Global Crisis

2.   The world is facing unprecedented global economic downturn and Singapore, being an open economy inextricably linked to international trade, has also been also affected.

3.   Singapore's GDP is likely to contract between 6% and 9% this year¹. Retrenchments for the first quarter of 2009 were significantly higher than previous quarters. The labour market outlook remains weak for the immediate future.

Weathering the Downturn with Strong Tripartite Relations

4.   In these difficult times, Singapore's unique brand of tripartism has served us well. The trust, common understanding and shared purpose built over the decades have enabled the tripartite partners to swiftly address the crisis with a united front. In November 2008, the National Trades Union Congress (NTUC), the Singapore National Employers' Federation (SNEF) and the Government took the important first step by issuing a set of Tripartite Guidelines on Managing Excess Manpower. The key message of the guidelines is 'Cut Costs to Save Jobs' and not the more conventional approach of 'Cut Jobs to Save Costs'. The aim is to reduce retrenchments and unemployment, emphasizing the importance of shared sacrifice in these uncertain times and that management should take the lead in any cost cutting measures.

Helping Employers Cut Costs

5.   In addition, the Singapore government also introduced the Skills Programme for Upgrading and Resilience, or SPUR for short. SPUR has two key strategies. The first is to save existing jobs by helping employers to send their excess manpower for training. Under SPUR, they will receive substantial subsidies for course fee and absentee payroll. The government has also introduced a Jobs Credits Scheme, which provides employers with a quarterly cash grant of up to 600 USD for each local employee they keep in their employ². These initiatives are part of the government's comprehensive Resilience Package to help companies manage their manpower costs and save jobs, while at the same time upgrade their workers' skills and build capabilities for the future.

Repositioning the Workforce to Seize Opportunities

6.   Our second strategy is to help workers who have lost their jobs find new ones as soon as possible. Through SPUR, we encourage workers to enhance their employability by undergoing relevant training programmes. This will open up more opportunities for them and help them ride the winds of the upturn when the economy recovers.

Money Well Spent

7.   Mr President, Singapore's overall Resilience Package to help deal with the downturn totals US$13.7 billion. So far, it has been money well spent – as jobs are saved. In the first quarter of this year, despite the economy slowing down by 10.1% year-on-year, we are happy to note that Singapore's unemployment rate of 3.3% remains one of the lowest in the world³. With more workers receiving training under SPUR, the quality of Singapore's workforce will improve in the long run. As at the end of May this year, some 107,000 workers and 1,800 companies committed to SPUR training.

Looking Beyond the Crisis

8.   Even while we work hard to fight the downturn together, Singapore remains focused on longer term objectives. First, we are developing a Globally Competitive Workforce. Apart from building up the capabilities of our workforce, we are raising productivity and encouraging our enterprises to innovate. Second, we are enhancing the Income Security and Lifelong Employability of our workers. In 2007, we implemented the Workfare Income Supplement scheme, which helps low-wage workers and encourages them to work. In 2012, we will enact legislation mandating the re-employment of older workers beyond the retirement age of 62. Third, we will continue to build Globally Leading Workplaces, through improving occupational safety and health and promoting progressive human capital development and employment practices.

9.   Although the economic outlook is still uncertain, with strong tripartite cooperation and commitment, we are confident that we will weather the crisis and emerge stronger than before.

Opportunity in Crisis to Deepen Partnerships

10.   Mr President, even in these difficult times, when countries are facing job losses and high unemployment, there are opportunities for us to seize, including the chance to deepen regional and international cooperation and partnership.

12.   As a titular member of the ILO Governing Body for the ASEAN region, Singapore is pleased to announce that a total of 13 collaborative projects in ASEAN targeted at enhancing labour practices in the region were endorsed at the recently concluded 6^th ASEAN Senior Labour Officials Meeting. Cooperation between ASEAN and the ILO has also made progress. In addition to existing collaboration to strengthen ASEAN capability in industrial relations, labour statistics as well as occupational safety and health, projects on social security and tripartite cooperation have been initiated. In 2010, we hope to receive ILO support for new projects, which inlude the second ASEAN Human Resource Conference and a Comparatative Study on Labour Law and Practices.

13.   This crisis also offers more opportunities for deepening cooperation and partnership among ILO member states. Instead of focusing on protectionist measures, it would be more beneficial for member states to share our experiences in managing the crisis. For this reason, I would like to thank the ILO for taking the initiative to organize this timely Summit on the Global Jobs Crisis.

14.   In closing, Mr President, I am confident that under your able leadership, the 98th International Labour Conference and the Summit will be very successful. Thank you.

² Converted to USD at 1 USD = 1.5 SGD (rate as at 22 Jan 2009, date of Budget speech)

³ The unemployment rates for Q109 for other countries was higher: USA; 8.9%, Germany: 8.3%, UK 7.1%, Australia: 5.4%, Hong Kong: 5.2%, Japan: 4.8%, China: 4.3%