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Committee of Supply (Speech 3) by Mr Lee Yi Shyan, Minister of State for Trade & Industry and Manpower, 9 March 2011, 5 PM, Parliament

Skills, training and development

(I) INTRODUCTION

  1. Amongst the many accolades bestowed upon Singapore, our workforce stands out as being the most competitive in the world. While this is a great achievement, this lead may be eroded if we slacken and competition catches up.
  2. With the hastened pace of product development, technological obsolescence and globalisation, what our workforce learned yesterday can become out-dated tomorrow. Ms. Denise Phua used the term “Future Workforce” to denote the new knowledge and skill sets of tomorrow that differentiate the workforce of today.
  3. The only way we can future-proof our workforce is to create an infrastructure for life-long learning: that on a continual basis, every willing worker has the opportunity to upgrade himself, acquire new skills, and take on new jobs that will be created in his lifetime. We call this infrastructure our Continuing Education & Training (CET) system.

    (II) PROGRESS OF CET
  4. Mr. Zainudin Nordin asked how we are helping Singaporeans to remain meaningfully employed. Since we announced the CET Masterplan in 2008, we have made good progress in building our CET system. This is a very strategic infrastructure that will enable our workforce to stay relevant. Our CET has the following key building blocks:

    1. CET Delivery Channels
  5. Over the past 5 years, we have built up a set of comprehensive channels to deliver CET programmes. Today, these channels are made up of three National CET Institutes, 50 CET Centres and 500 Approved Training Organisations (ATOs). Together, more than 600,000 workers have been trained in WSQ courses since 2005. We now have a training capacity of about 240,000 persons trained per year.

    2. CET Centres of Excellence
  6. Madam Halimah Yacob asked about the progress of our national CET campuses. While building mass delivery channels and training places, we are also building Centres of Excellence in these two national campuses. To be ready by end of 2013, they will deliver 150,000 training places and train up to 50,000 workers annually.
  7. The campus at Paya Lebar Central will focus on Tourism and Hospitality while the campus at Jurong Lake District will emphasize on Manufacturing and some selected Professional Services.1 Both campuses will provide certain horizontal programmes, such as employability skills, business management and productivity development. The two campuses will also serve as a training and job hub, offering employment services to both employers and trainees. Construction of the two campuses is expected to commence later this year.

    3. CET Content Population
  8. Madam Halimah also spoke about bringing in new providers and contents by leveraging on good companies. We agree with her that while buildings and hardware are indispensable, content and the quality of training are even more important.
  9. One way to raise the quality and relevance of CET training is indeed to work with leading companies. Today, we have already given 500 such companies ATO status. Last year, for example, WDA worked with the Renewable Energy Corporation (REC) to align 20 of its in-house training modules to WSQ standards. As a result, REC’s employees are trained and certified under our Environmental Technology WSQ framework. We welcome companies who wish to align their in-house training programmes to WSQ standards to approach WDA.
  10. WDA has also worked with other companies to open up their in-house WSQ training to benefit the entire industry. For instance, WDA collaborated with Ascott Limited to set up the Ascott Centre for Excellence for the hospitality industry.

    (a) Approach for Sectoral CET
  11. We have also made good progress for CET content. Although the WSQ was only launched in 2005, we already have 26 WSQ frameworks, and about 14,000 courses available. Most major industries have been covered, including almost all of the 12 priority sectors under the National Productivity and Continuing Education Council (NPCEC).
  12. The next phase of our CET content-building sees us working closely with the NPCEC to develop sector-specific CET strategies to address the productivity challenges and CET needs of each sector. This builds upon the foundation we have and places priority on areas, both old and new, to support each productivity roadmap. The sector-specific CET details are still being finalised and will be released by the respective champion agencies in due course.
  13. But let me provide an illustration. Today, the hospitality sector has WSQ frameworks and courses in Service Excellence, Food & Beverage, Hotel & Accommodation Services, and Spa, amongst others. There are many courses available in a wide range of areas, and for different skills levels. However, only some will feature in the hospitality productivity roadmap, while other new courses will have to be brought in.
  14. In this regard, WDA has appointed the William Angliss Institute from Australia to provide integrated CET for the hospitality and tourism sector. The William Angliss Institute will not replace existing training providers, but supplement them. A core strength of this new Centre is in “integrated-training”, which means equipping the worker with relevant cross-functional training. For instance, a hotel concierge can be trained in hotel front desk skills, as well as tour guiding & travel services skills. In this way, our workers in the hospitality sector can be multi-skilled and provide better service and more comprehensive service. Ultimately, it means raising overall customer satisfaction, value-add and higher wages.

    4. Best HR and Management Practices
  15. A world-class workforce requires the support of world-class managers and leaders. Let me now turn to best practices in leadership, HR and management.
  16. Madam Ho Geok Choo advocated the building up of case studies on Asian best practices in HR and leadership. I agree. The Asian Human Capital Award recognises exemplary and innovative people practices. The annual Singapore Human Capital Summit also provides the platform for companies to learn these best practices.
  17. Beyond this, MOM and WDA have established communities of practice via the Human Capital (Singapore).2 MOM also regularly organises Executive Roundtables to bring together CEOs, chief HROs and thought- and practice-leaders to share their experiences and strategies. All these add to a vibrant landscape for learning and exchange of ideas.
  18. Madam Ho also asked about an HR Outsourcing Hub for SMEs. SPRING is currently reviewing the potential HR services providers and studying the different types of HR services that SMEs might need.
  19. I would also like to assure Ms. Denise Phua that we are preparing for the future. MOM is currently leading a Future Skills Needs study to identify areas where new manpower capabilities are needed beyond 2020, and develop strategies to address any gaps.
  20. Preliminary findings show that future workers will need to equip themselves with a combination of soft (horizontal) and hard (vertical) skills. The currency of these skills must be renewed. Most importantly, future workers must be life-long learners.

    5. Matching Workers and Jobs
  21. An efficient labour market is characterised by good matches between job seekers and employers. Through the Career Centres at the CDCs and e2i, we placed about 6 in 10 job seekers in jobs in 2010. This translates to some 17,000 successful job seekers, better than the 40% we estimated in the Budget Book, as observed by Mr. Charles Chong. About 4,000 of these received training before they were being placed.
  22. Moving forward, the job placement rate by our Career Centres may come in lower, say around 40%. Given the healthy job market, many job seekers should be able to find jobs on their own. Among the users of our Career Centres, we expect a higher proportion of those who face greater barriers in their job search, including the long-term unemployed.

    (a) CET Qualification Award
  23. Our CET system has helped to open up new opportunities for Singaporeans. It has helped them take on better jobs, and earn better wages. Let me share one such story – Mr. Mohd Salleh Bin Mohd Nordin (57). Mr. Salleh had worked in the Advertising industry for more than 30 years before he was retrenched. Motivated by a sense of professionalism to do his job better and to improve his own career prospects, Mr. Salleh took up training under the Landscape WSQ Advanced Certificate course. He subsequently rose through the ranks and became a Senior Supervisor, managing a team of 18 Landscape Technicians. He is currently pursuing a WSQ Diploma in Horticulture. Mr. Salleh aspires to become an ecologist and in his own words, “learning never stops”.
  24. We need more workers to think and act like Mr. Salleh. We especially want to encourage all our workers to complete a full CET qualification, as it gives them a more comprehensive repertoire of skills.
  25. Minister for Finance announced that we will introduce a CET Qualification Award. The award recognises trainees who persevere and attain a full CET qualification. From 1 March 2011, Singaporeans who complete their first WSQ Diploma will receive $1,000 and those who complete their first WSQ Certificate will receive $200. This scheme will cost the Government about $12 million over the next three years.

    (b) Training the Trainers
  26. As we invest more in CET and expand the WSQ system, the demands on training providers and professionals will also increase, as observed by Madam Halimah.
  27. To ensure quality, my Ministry will introduce mandatory qualification requirements for CET trainers, assessors and curriculum developers engaged by WSQ training providers.
  28. By 1 October 2014, we will require that at least 80% of these trainers and assessors have a full Advanced Certificate in Training and Assessment (ACTA) or equivalent.
  29. For curriculum developers, we will require all WSQ curriculum developers who provide external training to have a Diploma in Adult and Continuing Education (DACE) or equivalent by 1 October 2015. To provide time for WSQ Approved Training Organisations to adjust, the changes will be implemented in phases. WDA will release more details in due course.
  30. To help training providers and professionals meet the new requirements, we are increasing the training capacity at the Institute for Adult Learning, our polytechnics, and other private sector training providers. WDA is also offering substantial funding for trainees.
  31. These are our efforts to build up a first-class, national CET system. As my Minister shared earlier, CET must be accessible, relevant and each individual must also have the desire to continuously learn and upgrade. Today, individuals are able, and are encouraged to take charge of their own training, as strongly advocated by Ms Denise Phua. They can independently sign up for many government-funded CET courses at the CET Centres, polytechnics and ITEs. We have also made CET affordable through direct course fee subsidies. Hence, in response to Madam Ho Geok Choo’s query on establishing Individual Skills Accounts, we believe our current approach is working well and is still the most effective. We will also continue to look at new initiatives such as a self-service skills portal to encourage Singaporeans to take more responsibility for their training. WDA will release more details about the portal in due course.

    (III) MANAGING FOREIGN WORKERS
  32. Our CET system has helped us produce a world-class workforce. But our local workforce is only part of the equation. To be precise, two-thirds of the equation. Foreign talents and workers have to raise their contributions too.
  33. To ensure that our foreign workers contribute to the overall quality of our workforce, we need to continue to improve the way we recruit, manage and develop our foreign workers. They ought to be respected and treated fairly, as capable members of our scoring teams.

    1. Recruitment Processes
  34. Providing an updated framework on the management of employment agencies, my Ministry revised the Employment Agencies Act which will take effect on 1 April this year. We are sending a clear and strong signal that we want to improve the standards and professionalism of the industry and will not tolerate any errant employment agencies or shady employment services.
  35. Beyond regulations and enforcement, we would like to encourage a change in the mindset of employers to be more responsible.

    (a) Advisory on responsible recruitment practices
  36. My Ministry is developing an advisory to educate employers on responsible practices that they should adopt when recruiting foreign workers. Employers who subscribe to these practices are likely to get higher-quality workers who are less burdened by debt, less likely to create employment disputes and more motivated.
  37. The advisory will touch on areas such as raising workers’ awareness of their rights and obligations before they arrive in Singapore and helping workers settle in after their arrival. It will also highlight case studies that employers can learn from. We will pilot the adoption of these measures with some companies in a few months’ time.
  38. The advisory will be practical. In fact, some of our employers are already practising it.
  39. Consider for instance, Keppel Offshore & Marine. The company conducts competency tests and interviews for potential foreign workers in the source countries, such as India, Bangladesh and China. It organises pre-departure briefings for successful candidates to inform them about the organisation, as well as the terms and conditions of their employment. During the briefing, foreign workers are also informed about the agency fees that they should expect to pay. With this process in place, the company’s foreign workers know what to expect when they come to Singapore to work, and this minimises employment disputes.

    2. Management Processes
  40. Next, on management. We concur with Mr. Yeo Guat Kwang that effective enforcement is important to deter employers from adopting errant practices such as kickbacks.
  41. In 2010, MOM charged and convicted 212 employers for failing to comply with their obligations under the Employment of Foreign Manpower Act, upholding the rights of 1,151 foreign workers. Nine of these employers were convicted of kickback offences.
  42. Mr. Yeo has also raised some concerns regarding foreign worker housing.
  43. Let me clarify that there are a variety of housing options for foreign workers apart from dormitories, such as housing workers on-site. The Government has been increasing the number of purpose-built dormitory bed spaces since 2007. Over the past year alone, the Government has rolled out dormitory sites that can supply about 50,000 additional beds. Operators of dormitories are also required to provide sufficient amenities for their residents.
  44. However, the speed at which new dormitory sites are released also depends on a number of factors such as the time taken to prepare the land. In addition, the Ministerial Steering Committee on Foreign Workers takes care to engage stakeholders in the community and to ensure that dormitories minimise disamenities to their neighbours. My Ministry also conducts regular inspections to ensure that employers house their foreign workers in acceptable conditions.

    (a) Review of the Employment of Foreign Manpower Act
  45. Beyond enforcement, my Ministry intends to review the Employment of Foreign Manpower Act (EFMA). We will review the adequacy of existing offences and penalties to ensure accountability of employers and other stakeholders. We target to complete the review by 2012.
  46. The EFMA also prescribes the conditions that employers and foreign employees must adhere to under their work pass. Ms. Indranee Rajah asked if my Ministry could revise the current marriage restrictions on work permit holders.
  47. One of the Work Permit conditions that Work Permit holders agree to before they are allowed to work here is that they are not allowed to marry a Singaporean Citizen or Permanent Resident without prior approval. Work Permit holders who contravene this condition will be repatriated and placed on an entry ban. This ban might seem long but it is not permanent, and those affected can appeal to MOM. We will consider each case on its own merit, taking into consideration factors such as the ability of the couple to maintain a family.

    3. Foreign Domestic Workers
  48. Mr. Charles Chong asked what my Ministry has done for foreign domestic workers, or FDWs. MOM has put in place a robust framework over the years to ensure the well-being and quality of FDWs. First, FDWs must meet our minimum age requirements and pass an entry test before working in Singapore. These requirements aim to identify FDWs that are likely to face fewer problems adapting to Singapore’s urban environment, by ensuring that they are sufficiently mature and have the basic numeracy and literacy skills. Second, MOM sets out and enforces minimum working conditions such as acceptable accommodation and safety standards. All first-time FDWs are required to attend a half-day Safety Awareness Course to learn about safe ways of working in our urban domestic settings. All foreign workers, including FDWs, must also be covered by medical insurance of at least $15,000. Third, we put in place measures to help FDWs adjust to Singapore’s work environment. We conduct random interviews with first-time FDWs to determine if they are facing problems adjusting. To help with the adjustment process, we piloted the FDW Settling-In Programme last year, covering topics such as Singapore’s culture and norms and stress management. About 1,300 FDWs attended at least one module of the programme, and we have received positive feedback from them. We also have a dedicated helpline for distressed FDWs who require assistance. We do not hesitate to undertake strong enforcement action against employers who commit offences against FDWs.
  49. Our strong regulatory framework and good employment terms have made Singapore an attractive destination for FDWs. Interviews with over 900 FDWs last year indicate that they are highly satisfied with working in Singapore, with a mean satisfaction level of 8.7 out of 10. Seven in 10 FDWs intend to continue working in Singapore after their contracts expire. Almost 90% of FDWs were also aware of their employment rights and obligations.
  50. Indeed, the total population of FDWs in Singapore has increased over the years. As of December 2010, there were 201,000 FDWs, compared to just 196,000 in 2009. This translates to a relatively high proportion of 175 FDWs per 1,000 households. It is even higher than Hong Kong at 122 per 1,000.
  51. Mr. Charles Chong has suggested increasing the number of source countries for FDWs to ensure supply. Decent treatment of FDWs has helped to ensure that we have not been targeted by any measures by source countries seeking to reduce supply to Singapore. The growing population of FDWs and increasing penetration rate of FDWs also suggest that the addition of new source countries to raise supply is not necessary at this stage. FDWs now come from more than 10 approved sources, including India, Indonesia, the Philippines, Sri Lanka and Thailand. Nevertheless, MOM periodically reviews the adequacy of existing sources, considers alternative sources, and conducts pilots where necessary.
  52. Mr. Laurence Wee has suggested waiving the FDW levy for families with elderly or young children to care for. The FDW levy is intended primarily to moderate the demand for FDWs, so that only families who really need them will hire them. Families with elderly, young children or disabled family members already enjoy a concessionary FDW levy of $170, compared to the regular $265. This is a significant saving for those families.
  53. But FDWs cannot be the sole solution for eldercare and childcare. We need to address this holistically, rather than tweaking the FDW levy. For example, families can tap on the Centre of Enabled Living’s Caregiver Training Grant which supports training in basic caregiving skills for informal caregivers and subsidises home-help services for elderly who prefer to stay at home.

    (a) Revamping of the online Employment Agency Directory
  54. A survey recently conducted with FDW employers also indicates that employers are generally satisfied with their current FDWs, with the majority intending to continue employing their current FDWs after their existing contracts expire.
  55. My Ministry has introduced additional measures to help employers. To help FDW employers make an even more informed decision when engaging an employment agency, we have revamped the online Employment Agency Directory on MOM’s website. The directory allows employers to look at an employment agency’s track record, such as retention rates - retention rate refers to the percentage of placements who stayed at least one year with the same employer - and the passing rates on entry test. Feedback from employers has been positive and they found the directory useful.
  56. To facilitate better matching between employers and FDWs, employers are also able to put a request through the EA to see FDWs’ employment history in Singapore. Employers can also subscribe to MOM’s 6-monthly electronic newsletter called InFOCUS for tips on fostering a harmonious relationship with their FDWs and updates on new policies.
  57. Regarding the actions of employment agencies jointly raising the salaries of FDWs, the Competition Commission of Singapore is looking into the matter to see if there is any breach of the Competition Act. My Ministry’s position on wages remains unchanged – that is, FDW wages are determined by market forces, and based on mutual agreements between the employer and employee.

    (IV) CONCLUSION
  58. Let me conclude. As a small country with limited resources, we have done well. Our human resources, including our openness to foreign talent, have enabled us to achieve what many other countries could not have.
  59. To sustain this competitiveness, we have started to architect the workforce of the future. Our goal is to empower our workers with the skills they need to lead a better life. Thank you.

1 Such as Workplace Safety & Health, Digital Animation and Healthcare.

2 The Human Capital (Singapore) is an approved national CET Centre that focuses on delivering training programmes under the HR and LPM WSQ frameworks. Madam Ho is the CEO of Human Capital (Singapore).

Annex A - Factsheet on Partnership Between The William Angliss Institute and Singapore Workforce Development Agency

Annex B - Factsheet on the CET Qualification Award

Annex C - Factsheet on the Qualification Requirements under the Singapore Workforce Skills Qualifications System