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Committee of Supply (Speech 2) by Dr Amy Khor, Minister of State for Manpower, 14 March 2013, 3:00 PM, Parliament

Dr Amy Khor, Minister of State for Manpower, Parliament

Employment practices Skills, training and development
       INTRODUCTION

  1. Madam Chair, Deputy Prime Minister Tharman Shanmugaratnam and Acting Minister Tan Chuan-Jin spoke about the need to restructure our economy.
  2. As we restructure our economy, some jobs may be lost despite our best efforts, but new, higher value-add jobs will be created. To seize these better jobs, Singaporeans have to equip themselves with the necessary skills.
  3. As part of our efforts to develop a Singaporean core, we will continue to improve our Continuing Education and Training (CET) system to help Singaporeans up-skill and re-skill, so that they remain relevant and competitive. At the same time, we will ensure that growth is inclusive, and that more Singaporeans can benefit from it.

    CET LEADS TO POSITIVE OUTCOMES
  4. As Mr Ong Teng Koon rightly pointed out, we need to continuously invest in CET for Singaporeans. In 2010, the Government committed to invest $2.5 billion over five years in CET to improve the coverage and the quality of our CET programmes and infrastructure, and upgrade our CET professionals. With our workforce working longer and with more rapid change in the global economy, we will need to expand CET funding over time to help our workers stay ahead of the curve. This ensures that our CET infrastructure and programmes remain relevant and accessible to all Singaporeans.
  5. Many members have asked about the outcomes of our CET programmes. This is an area which the Manpower Ministry pays close attention to. To ensure that workers and companies achieve desired outcomes from these investments, WDA has been conducting annual surveys on the impact of CET Workforce Skills Qualification (WSQ) training since 2009.
  6. The 2012 survey findings indicate that an increasing proportion of both workers and employers find WSQ training beneficial. 94% of trainees indicated that they were able to apply the skills they learnt, and 92% reported better work performance. The feedback from employers was likewise very encouraging. 95% of employers found that WSQ training helped their workers perform better at work, and 74% indicated that it led to productivity improvement.
  7. In a separate longitudinal study, WDA also found that workers who underwent WSQ training received higher wage increases, compared to workers without WSQ training. Although the results are encouraging, this is the first time we have conducted such a study. WDA will continue to closely monitor the outcomes of WSQ training, so that we can further improve our CET system.
  8. I agree with Ms Sylvia Lim that we must minimise wastage in CET funding and I would like to assure her that WDA has put in place rigorous measures to mitigate this. Higher funding is provided to training which demonstrates stronger outcomes like job placements, wage increments and improved performance. Individuals who seek training assistance at the various CET touch points also have to undergo an assessment of their needs and suitability for training before being placed on courses. This will match training programmes to each individual’s training needs. We also require co-payment for training to ensure that individuals and companies take training seriously. All these measures help to ensure that the majority of WSQ trainees pursue a career in that particular sector after training.
  9. WDA also actively tracks the job placement outcomes of the trainees. We note that most of the self-initiated trainees do find employment in the industry for which they are trained.
  10. Mr Jason Chua was a supervisor when he was sponsored by his employer, Gain City, to attend the WSQ Diploma in Retail Management on a part-time basis from 2007 to 2008. The programme was co-funded by WDA. Through the programme, Mr Chua gained new competencies like marketing strategies and management skills, which also strengthened his confidence.
  11. Through a combination of his continued hard work and newfound knowledge, he was promoted a year later to Assistant Manager, receiving a 20% salary increase. In 2011, Jason was further promoted to head a new department as Product Manager and tasked to grow Gain City’s I.T. brands. He received a further salary increase of 25%. Nearly two years on, Gain City has enjoyed a 30% growth in its I.T. business and Jason continues to excel in his role. Jason Chua is not an isolated case.
  12. The survey findings which I shared earlier, as well as positive stories like Jason’s, clearly demonstrates the benefits and positive outcomes of CET. We will continue to do more to encourage workers and employers to participate in training and get them to embrace a lifelong learning culture.

    HELPING PMEs
  13. Ms Jessica Tan and Mr Patrick Tay spoke about the challenges faced by PMEs. Indeed, we recognise that PMEs, the fastest-growing segment of our workforce, have diverse development needs and are a group we need to pay close attention to. Acting Minister Tan has touched on our multi-pronged strategy to create quality jobs for PMEs and help Singaporeans take on these jobs. I shall elaborate on how we will further enhance our CET and employment facilitation efforts for both workers and companies, which are two very important thrusts in our overall strategy.
  14. Our Institutes of Higher Learning (IHLs) prepare students for work by imparting to them the skills relevant to industry needs, while developing their character. But once they step into the workforce, they will need to constantly adapt, upgrade and re-skill in order to remain relevant in the fast-paced global economy. To help them, we have provided many pathways for Singaporeans to upgrade and where necessary, to re-skill and move into growing industries.
  15. Our national WSQ system is competency-based and covers more than 30 sectors. An Industry Skills and Training Council (ISTC), comprising key players in the industry, is also established for each WSQ framework to ensure that the courses are relevant and meet industry needs.
  16. Two years ago, we introduced the Skills Training for Excellence Programme (STEP) targeted at PMEs to help them deepen their skills and expertise. STEP offers a wide range of courses tailored to the needs of PMEs in different sectors. There are now more than 830 courses under STEP, and over 65,000 PMEs have benefited from STEP.
  17. About 80 STEP scholarships have also been awarded in various sectors such as Retail, Aerospace, Healthcare and Built Environment, to develop a PME talent core for these sectors.
  18. In the last two years, we have also strengthened employment facilitation services for PMEs. In 2011, we established CaliberLink, a one-stop service point to provide PMEs with training advisory and employment assistance. To date, CaliberLink has helped more than 3,500 PMEs through its training and career consultation services, networking events and workshops. Of these, about 1,300 were provided with career coaching services, and eventually over 400 were placed. This is comparable to industry performance, and we will continue to do more for PMEs such as improving our online facilitation services.
  19. I would like to share the success story of a Singaporean who has gone through CaliberLink. Having worked 22 years in the ICT (Information and Communications Technology) sector, Mr Frank Ou took the bold step of starting his own fishing business in 2010. However, things were not to be and the 51-year-old’s business venture folded a year later. While some would have become despondent, Frank was determined to quickly get back on his feet. Through CaliberLink’s assistance, Frank secured an executive position in the Real Estate & Facilities Management sector. He also completed a Property Executive Conversion Programme, funded by WDA, which gave him the necessary skills for the new job.
  20. In today’s economy and workplace, PMEs have no choice but to regularly upgrade and re-skill, to progress as well as to remain relevant. Therefore, my Ministry and WDA will be introducing additional assistance for PMEs this year.
  21. First, WDA will expand the PME-level programmes that it funds, to include more areas such as industry practitioner seminars, master classes, capability transfer and mentorship programmes.
  22. Second, we will expand upgrading pathways for PMEs through WSQ-aligned applied degree programmes. Besides graduating with a degree, students can also receive relevant WSQ certifications, which add value in terms of employer and industry recognition. Pilot sectors that will be covered include Workplace Safety and Health, Business Management and Aerospace.
  23. I have shared on how we will enhance CET support for PMEs. At the same time, we will ensure that our CET system continues to be accessible and affordable, meeting the needs of our rank-and-file workers, while remaining relevant to industry.
  24. In addition, we will enhance the Workfare Training Support (WTS) scheme to provide even stronger support for our lower-income workers to upgrade their skills. SPS Hawazi will elaborate on the enhancements to WTS scheme.
  25. An important component of our CET system is the Place-and-Train (PnT) programme. Under the PnT programme, workers are first hired by employers before they undergo skills training required for the job. During the training period, workers are paid their salaries, with WDA co-funding both the salary and training cost. PnT is targeted and leads to good employment outcomes. This year, we will increase our funding support for PnT, and we hope that more employers will come on board. Employers who hire Singaporeans on PnT programmes will receive higher funding of 70% of the employee’s salary capped at $2,000 per month, which is a significant increase over the current cap of $1,400 per month.
  26. Mr Laurence Lien rightly pointed out that with economic restructuring, there will be inevitable displacement in the labour market. But alongside this negative outcome are positive results. Higher value-added jobs will also be created in the process. We will step up efforts to help Singaporeans upgrade and re-skill, so that they can seize these new opportunities. WDA’s move to enhance its PnT programme and step up employment facilitation efforts will also provide more support for displaced workers.
  27. Mr Ong Teng Koon also asked how we can better facilitate CET for our older workers.
  28. I would like to assure him that the WSQ system is developed with the needs of adult learners in mind. It focuses on the ability to demonstrate skills and knowledge acquired, which older workers are more receptive to compared to academic-based learning and assessment.
  29. Alternative entry requirements, besides formal PET qualifications, for course enrolment, are also particularly useful for our older workers who may not have the formal educational qualifications but are actually no less able.
  30. In addition, training courses are broken down into modules to allow workers to embark on the training at a pace which is suitable for them, taking only the modules that they need, or to gradually work towards the full qualifications.

    EMPOWERING INDIVIDUALS
  31. There are two core objectives of our CET framework. First, to provide employees with the right skills and knowledge to meet current and future needs. Second, to entrench a culture of continuous learning and training. The two are self-reinforcing. Mr Patrick Tay asked if more can be done to guide young PMEs to make wise career choices and second skilling our mature PMEs. I agree with Mr Tay that, in addition to our current CET programme, we should explore ways to empower individuals to better take charge and make informed decisions on their own training and career developments.
  32. In this regard, WDA will be developing an Individual Learning Portfolio (ILP). The ILP, to be introduced in stages over the next three years, will be an interactive online service that gives individuals access to a range of information and tools. This includes labour market information and self-help profiling tools. It also serves as a one-stop repository of an individual’s education, training, skills and work achievements. It will have different features, catering to those who are already in the workforce or preparing to enter it.
  33. What this means is that individuals will be able to better plan for their own learning and career development.
  34. The ILP will also enable employers to post jobs and search for potential employees with the best skills match for their vacancies.

    HELPING COMPANIES DEVELOP THEIR WORKFORCE
  35. Besides providing individuals with more CET assistance, we will also do more to help companies upgrade and develop their workforce.
  36. The 3-year Transition Support Package has been introduced in Budget 20131. This will help companies restructure and share the productivity gains with their employees through higher wages. Companies also need to invest in training to improve the skills of their workers in order to be more productive.
  37. One example of a SME that benefited from Government’s training support is Kim Ann Engineering, which provides specialty metals and services for customers in industries such as Precision Engineering and Oil & Gas. Last year, the company signed up for the Operations Management Innovation (OMNI) programme introduced by WDA and conducted by the Singapore Institute of Manufacturing Technology (SIMTech).
  38. With knowledge acquired from the programme, Mr Jonathan Kok, the Division Manager for operations, was able to identify gaps and solutions to improve the company’s operational processes. Through these improvements, the company has tripled its machining production output, which translates to a projected increase in sales of more than $400,000 over three years. Workers also enjoyed the benefits of increased productivity through bigger performance bonuses. Indeed, Kim Ann Engineering intends to send more of its employees for similar training programmes.
  39. Last year, we enhanced the training support for SME-sponsored local employees by raising course fee subsidies and absentee payroll. While companies find this useful, they have also provided feedback on areas where they need more help, including more support for in-house training customised to their needs.
  40. So this year, WDA will introduce the new Enterprise Training Support (ETS) scheme to provide a holistic HR and training package for companies to develop their employees and raise productivity. Mr Laurence Lien and Ms Jessica Tan may be pleased to note that companies, like Kim Ann Engineering, can tap on grants under the ETS scheme to develop their own company training plans and career progression pathways for employees that are linked to training roadmaps. To address companies’ need for more customised training, the scheme will also fund both WSQ and non-WSQ training, including structured on-the-job training.
  41. Companies can also tap on the ETS scheme to benchmark their compensation and benefits to market rates. This will encourage competitive job remuneration for Singaporeans, and help companies to better attract and retain local talent. This is particularly useful for SMEs, many of whom lack HR expertise. We will invest $20 million in the ETS scheme over two years. We expect SMEs to form 70% of the companies that will benefit from this scheme. If the response is good, WDA will be more than happy to further expand the scheme.

    STRENGTHENING CET INFRASTRUCTURE
  42. As we ensure that our CET programmes remain relevant to both workers and employers, we are also expanding our CET infrastructure to meet the training demands of our workforce.
  43. The two national CET campuses will be ready in the second half of this year as planned. They will feature integrated facilities designed with adult learners in mind. Workers can look forward to more exciting training opportunities and comprehensive career services all under one roof.
  44. Our labour market will remain tight, and this will place upward pressure on wages as companies seek to hire and retain employees. To be sustainable in the longer term, wage increases need to be supported by productivity gains. Therefore, I strongly urge companies to make full use of the various productivity and training incentives that the Government has put in place, and to share their gains with their employees.
  45. As we continue to evolve our CET system to help Singaporeans excel and achieve their work aspirations, we will also continue to seek public feedback on how to best to do so through the next phase of Our Singapore Conversation (OSC).

    SUPPORTING EMPLOYMENT OF LOCALS AND IMPROVING WORKLIFE HARMONY
  46. Through OSC sessions, we have received strong feedback from Singaporeans about their desire for a more fulfilling pace of life, while being engaged at work, to pursue their personal aspirations and cope with family needs. And indeed we have just heard from members such as Ms Foo Mee Har, Mr Christopher De Souza and Dr Intan Azura, all of whom have called for greater support for flexible work arrangements and for more employers to adopt pro-family practices.
  47. I agree with them, and this is something that we have been working on for quite some time now. Good work-life harmony contributes positively to personal and family outcomes and is an increasingly important priority for Singaporeans. Flexible work arrangements enable employees who require them to better manage their career and personal aspirations, and remain engaged and productive. Businesses which offer flexible work arrangements will thus benefit from better staff attraction and retention, which is a key competitive advantage in today’s tight labour market.
  48. Ms Jessica Tan asked about the progress of companies in offering flexible work arrangements. An increasing proportion of establishments offer at least one form of flexible work arrangements. In fact, the proportion rose from 25%2 in 2007 to 41% in 2012.
  49. There is also significant progress in the labour force participation and employment of our female and older residents. Our labour force participation rate for female residents aged 15 and over increased from 54.2% in 2007 to 57.7% in 2012. The employment rate of our older residents aged 55 to 64 has also increased from 56.2% in 2007 to 64% in 2012, which is just 1% shy of our target of 65% in 2015.
  50. Today, the Government, together with employer groups and unions, plays an active role in promoting work-life harmony and flexible work arrangements, and these efforts are coordinated by the Tripartite Committee (TriCom) on Work-Life Strategy, which is led by SPS Hawazi.
  51. Over the past two years, the TriCom has been reaching out to both employers and employees regularly to influence mindset change and foster workplace cultures that support flexible work arrangements. This is done through platforms like the biennial Work-Life Conference, which attracted over 400 participants in 2011.
  52. As an exemplary employer recognised at the Work-Life Excellence Award last year, Rajah & Tann LLP, which is a local law firm, has shown that even amidst our tight labour market, the firm was able to meaningfully support flexible work arrangements to meet their employees’ work-life needs. Employees could work from home, on staggered hours or even work 3 to 4 days a week. All these helped the company achieve a low attrition rate of 1.3% in 2011. I therefore urge companies to do the same, if not better, to attract and retain talent.
  53. In addition, the TriCom works with agencies like IDA, to promote specific flexible work arrangements such as home-based and mobile-work arrangements.
  54. To support companies in implementing work-life strategies, we launched the WoW! Fund in 2004. Since its inception, the WoW! Fund has benefited some 860 employers and their employees.
  55. Ms Foo Mee Har, Mr Patrick Tay and Ms Mary Liew suggested that we put in place legislation on the right to ask for flexible work arrangements. The PAP Women’s Wing and NTUC have earlier made similar suggestions through their reports. Ms Lee Li Lian proposed that we set up an independent commission to oversee work-life balance issues.
  56. In countries like the UK, a “Right to Request” legislation, alongside institutions to administer it, formalises the process for eligible employees to request for flexible work arrangements such as part-time work or telecommuting.
  57. Such an approach towards improving work-life harmony and helping individuals cope with their work and personal needs has its pros and cons. We have been studying this approach, and several others.
  58. The success of such legislation is in many ways dependent on the existence of complementary conditions to support it, such as the attitude of the employers and co-workers towards flexible work arrangements, which was alluded to by Ms Jessica Tan earlier. A recent survey by NTUC showed that 7 in 10 employees felt that their employers were not supportive of flexible work arrangements, while 6 in 10 employees said that their colleagues were not supportive.
  59. Furthermore, as highlighted by the Association for Small and Medium Enterprises (ASME), many of our SMEs still need guidance on how to implement flexible work arrangements. The success of flexible work arrangements depends largely on the companies’ ability to manage those on flexible work arrangements. Yahoo! and Best Buy which recently made the headlines as they cut back on work-from-home arrangements for their employees are cases in point.
  60. These are all possible reasons to explain why the inclination to request for flexibility by employees remains low in some countries, like Australia, even with the introduction of the right to request legislation in these countries.
  61. We need to be cautious about legislating flexi work which will introduce rigidity into the labour market, and impose additional compliance costs on businesses at a time when they are already facing significant pressures to restructure.
  62. Hence, we think that it may not be desirable for the Government to use the law to prescribe flexible work arrangements at this point.
  63. The Government, however, remains a very strong advocate of flexi work arrangements. Deputy Prime Minister Teo Chee Hean shared that 95% of our public agencies, including MOM, CPF and WDA, already offer flexible work arrangements.
  64. We will intensify our efforts and work through the Tricom and the Employer Alliance to support and incentivise companies to implement work-life strategies. We will encourage positive behaviour through education and promotion, and create the conditions for sustainable work-life strategies. We will continue to keep an open mind about legislating flexi work and consult stakeholders widely on this issue.
  65. Mr Muhamad Faisal and Ms Mary Liew both spoke about introducing additional leave to help workers, such as caregivers of elderly persons and mothers, better manage the demands of work.
  66. As part of the recently announced Marriage and Parenthood package this year, we enhanced existing family-related leave schemes and introduced new ones, such as paternity leave and shared parental leave. These measures aim to help working couples better balance work and family commitments. As pointed out by Ms Foo Mee Har and Mr Christopher De Souza, such pro-family employment practices will also help parents, especially mothers, return to the workforce.
  67. These schemes will take effect on 1 May 2013. Let us give our businesses some time to adjust and adapt to these new schemes, before deciding whether further refinements are merited.
  68. We are mindful of the need to strike a balance between promoting work-life harmony and not to overly impose too many obligations on employers that may increase cost pressures and ultimately affect workers’ employability. We will nonetheless continue to promote and encourage employers to adopt pro-family work practices.
  69. Besides creating workplaces with a pro-family culture, we also want to help all Singaporeans, especially our mature workers, work for as long as they want and are able to. We also want to help those who wish to return to work find suitable jobs. This will enable employers to tap on this group of people as a valuable source of manpower. Mr Zainudin Nordin and Mr Gerald Giam have spoken on this earlier.
  70. In 2005, we introduced ADVANTAGE! to help employers hire and retain older workers. The scheme helps employers redesign jobs to match older workers’ abilities. It was later enhanced to help prepare employers for re-employment. Close to $57 million has been disbursed under the ADVANTAGE! Scheme since its inception. Around 3,500 companies and 25,000 older workers have benefited from the scheme.
  71. SIS’88, a sugar distributor in Singapore, tapped on ADVANTAGE! last year to automate its sugar distribution system, which made the work safer and less physically demanding. This allowed its older employees, such as Mr Mohd Amir bin Mohd Yusof, aged 62, to be more productive by controlling the equipment and operations remotely through a centralised control system. Such improvements in work processes have also made it easier for SIS to re-employ their older workers.
  72. I agree with Mr Alex Yam that it is important for us to recognise employers that go the extra mile to improve their HR practices to recruit and retain their employees, especially older workers. Today, we recognise these employers through the biennial TAFEP Exemplary Employer Awards. We hope that this would inspire organisations to do better.  
  73. I also agree with Mr Heng Chee How and Mr David Ong on the need to continue our efforts on the re-employment front.
  74. Since the re-employment legislation came into effect in January last year, results have been positive. Based on the preliminary findings from our survey, 98% of our local employees who turned 62 in the year ending June last year were offered employment beyond 62. The number of re-employment disputes lodged with MOM has been low, averaging less than 3 cases a month. Overall, the employment rate of older residents reached a new high of 64% last year as I had noted earlier. This is comparable to or even higher than some advanced economies such as the US and UK.
  75. We will continue to monitor the implementation to ensure that it is in line with the intent of the re-employment legislation.
  76. For the next phase of work, Mr Heng Chee How will be pleased to note that we will work with the Tripartite Committee (Tricom) on Employability of Older Workers to conduct a deeper study on the impact of re-employment, identify an appropriate timeframe to further raise the re-employment age, and find other ways to enhance employment opportunities for our older workers.
  77. Besides older workers, we have also been encouraging locals to return to work through Flexi-works! introduced in 2007. The scheme encourages employers to hire back-to-work locals on flexible work arrangements by defraying the costs involved. Since 2007, more than 3,500 locals have been placed into jobs at more than 300 companies.
  78. IQKidz, an education company delivering enrichment programmes to schools, is a beneficiary of Flexi-Works!. Through the scheme, IQKidz has been able to retain and attract locals, like Ms Rina Khoo, in today’s tight labour market. Rina, a 48-year-old teacher, teaching pre-schoolers art, enjoys the flexi-time work arrangement that allows her to pursue evening courses for self-improvement as well as balance family responsibilities. IQKidz has also managed to hire several back-to-work locals with young children as teachers, by deploying them flexibly in terms of location as well as working hours.
  79. Our efforts to improve work-life harmony and bring more locals into the workforce started sometime ago. Against the backdrop of our ageing local workforce, older workers and back-to-work women will play an increasingly important role in the workforce.

    STREAMLINING PROGRAMMES TO IMPROVE ACCESSIBILITY – WORKPRO
  80. Several Members have suggested ideas such as Back to Work Employment Credit Scheme [PAP Women’s Wing, NMP Mary Liew], and the New Hire Wage Credit scheme [MP Gerald Giam]. I would like to thank them for these suggestions.
  81. We agree that more can be done, and have in fact been reviewing our schemes with feedback from the public and our tripartite partners. One important feedback is that there are perhaps too many assistance schemes, and that we should make it easier for employers to tap on these schemes. Also, companies have highlighted that they need more support in terms of implementing work-life strategies and hiring and retaining older workers.
  82. Hence, we will consolidate and enhance the WoW! Fund, ADVANTAGE!, and Flexi-works!, into a one-stop programme called “WorkPro” – to build Progressive Workplaces
  83. First, WorkPro will help employers to improve work-life harmony and better attract and retain locals.
  84. Second, it will help companies tap on back-to-work locals and older workers by supporting job-redesign, on-the-job training, recruitment, and retention efforts.
  85. We will set aside a budget of $170 million over 3 years to help our workers and employers on this front. We also expect SMEs to form 70% of the companies that will benefit from WorkPro.
  86. Allow me to elaborate on the different kinds of support that WorkPro will provide.

    ENHANCEMENTS TO PROMOTE WORK-LIFE HARMONY
  87. First, WorkPro will promote work-life harmony. As part of the enhanced Marriage and Parenthood Package announced earlier this year, we are committing $100 million to encourage more employers to implement FWAs through the Work-Life Grant.
  88. Employers with no or minimal FWAs can receive up to $40,000 to implement work-life strategies through the developmental grant, which will be open to applications for 3 years. This is double the amount that the WoW! Fund provided.
  89. Employers that have already implemented FWAs, can also apply for additional financial incentives of up to $120,000 over 3 years, or up to $40,000 per year, if at least 30% of their employees benefit from FWAs.
  90. We hope that these will motivate more employers to implement and sustain the use of FWAs.
  91. Apart from improving work-life harmony, WorkPro will also provide holistic support to help employers hire and retain back-to-work locals and mature workers.
  92. First, a new $20,000 Age Management Grant will be provided to help employers improve their age management capabilities, such as putting in place performance management systems and making the workplace more ergonomic.
  93. Second, companies will receive more support to redesign jobs, up to $300,000 per company. This is $60,000 higher than the combined job-redesign grants that employers enjoyed previously under ADVANTAGE! and Flexi-works!. Employers who do not have the know-how in job-redesign can also tap on the grant to seek professional advice.
  94. Third, WorkPro will provide companies on board the programme a New Hire Retention Incentive of up to $2,000 for each newly hired back-to-work local or mature worker earning below $4,500. This is to encourage employers to recruit and retain this segment of workers.
  95. Fourth, we recognise that those who have not been working for some time might need more on-the-job training (OJT) initially, to prepare them for work. Therefore, WorkPro will provide employers with an OJT Training Allowance equivalent to one month’s salary, capped at $2,000 per worker, for each back-to-work local hired and trained.
  96. Finally, to incentivise back-to-work locals to stay on the job, those earning less than $4,500 will also receive a retention bonus of up to $1,200 each under WorkPro if they remain employed with the company over a year.
  97. There are some similarities as well as differences between WorkPro and some of the suggestions from Members of this House, but we share a common aim and that is – to promote work-life harmony and offer more support to bring older workers and economically inactives back to work.
  98. The most wonderful schemes on paper will not be effective if people find them too confusing to tap on. This is why we have combined our grants into a single WorkPro with just one application process – this is to make it easier for companies to apply for them. Companies can approach NTUC and SNEF, who will assess applicants’ needs and provide advice on the relevant interventions and grants. SMEs can also find out more about WorkPro and the ETS at the SME Centres run by SPRING.

    CONCLUSION
  99. We will continue to help Singaporeans develop and maximise their full potential. We believe that every Singaporean who is able and wants a job should be given the opportunity to do so. Over the years, the Government has put in place a comprehensive package of assistance, and will continue to review and improve our various programmes.
  100. As we do our part to ensure that support is available for employers who need help, companies also need to take responsibility to build up their capabilities in adapting to the changing workforce. Workers, too, need to take ownership of their own training and career plans by proactively improving their skills.
  101. Ultimately, we hope that these efforts will help all Singaporeans progress into better jobs, earn higher wages, and fulfil their aspirations.
  102. Thank you.

1 The 3-year Transition Support Package includes the Wage Credit Scheme, PIC bonus and CIT rebates. Wage Credit Scheme subsidises 40% of the wage increases for Singaporean employees. PIC Bonus provides a dollar-for-dollar matching cash bonus to companies who spend a minimum of $5,000 on PIC activities in a year. CIT rebates give companies a 30% tax rebate capped at $30,000 per year. 

2 Refers to establishments offering at least one type of work-life arrangement (excluding unplanned time-off and informal/ad-hoc tele-working). Before 2011, the work-life arrangements included informal/ad-hoc tele-working.