Debated in Parliament on 14 Sep 2021.
In accordance with the decision of this House to have a simultaneous debate on both Motions, I will now call on Members to make their speeches. Members are allowed to consider both Motions in a single speech.
As the intent of the Business Motion resolved on 13 September 2021 is for the House to follow the procedures of previous simultaneous debates, I will put the questions on both Motions at the end of the debate, so that the House can express its view on each Motion.
In addition, I will also disallow any amendment to either Motion that has the effect of negativing the other Motion. By "negativing", the term is to mean the effect of qualifying, transposing, contradicting and nullifying the other Motion.
Any Member who wishes to vote against either Motion can do so directly. Minister Shanmugam.
Thank you, Sir, for letting me join this debate.
I would like to say a couple of things and then, ask some questions of Mr Leong Mun Wai. Mr Leong has said that CECA is not the PSP's main concern, but it has been thrust upon them by the Government. The Motion today, would you not agree, shows what he says to be untrue? It specifically refers to CECA and may I remind him of what it says?
I quote, "That this Parliament calls upon the Government to take urgent and concrete action to address the widespread anxiety among Singaporeans on jobs and livelihoods caused by the foreign talent policy and the provisions on Movement of Natural Persons in some free trade agreements like CECA."
And this is not something that is thrust upon the PSP or Mr Leong Mun Wai. I think you will know that, at the launch of the PSP on 3 August 2019, Dr Tan Cheng Bock made it a point to emphasise that PSP was targeting CECA. And since entering Parliament, Mr Leong, you have repeatedly commented on CECA, comments which carry clear racial undertones.
For example, your post on 22 June 2021, I quote, "the most important economic policies that have affected the jobs and livelihoods of Singaporeans relate to foreign PMETs and free trade agreements, in particular, the Comprehensive Economic Cooperation Agreement with India."
But today, we heard you say that you are in favour of free trade agreements. So, is it that you are in favour of free trade agreements, but specifically oppose CECA? That is what it looks like, based on what you have said so far.
Your comments have troubled your own PSP members. They have said that your statements in Parliament on CECA were targeting the Indian community. You protested here that you are not a racist and that these statements and sentiments ascribed to you are a diversion and a distraction. But your party members are quoted as saying, that you are targeting the Indian community and they say it is totally a racial undertone.
Mr Leong, your statements have been interpreted by your own party members, as being racist. People in your party think your statements are racist. Would you accept? I do not expect that you will accept that you are racist, but would you accept that people in your party think that your statements are racist and have said so?
It is a simple factual statement. May I seek that clarification from Mr Leong Mun Wai, Mr Speaker?
Yes, please. Mr Leong.
Sir, in response to the Minister's clarification: one, we have included CECA in the Motion today, as I have mentioned in my speech, because FTAs and CECA are part of the equation when we talk about immigration. So, it has to be included.
As for CECA and FTAs, in general, we are supportive. We are supportive of FTAs and even CECA in general, but we need more information about all these FTAs. If we do not have more information, we cannot say we are wholeheartedly supporting them. It has to be evaluated on a case-by-case basis.
Two, the Minister commented on I having commented on CECA on many occasions. Can the Minister give me the examples of occasions that I have spoken about CECA? Other than starting from my Facebook post on 22 June, can the Minister give me instances that I have spoken about CECA before? Even for the 22 June Facebook post, it was after I had accepted the challenge from the Minister. So, I had started to comment a bit, to put things into perspective.
So, this is the second point. In this second point, the Minister also mentioned that Dr Tan Cheng Bock had mentioned at the party launch about CECA in August 2019. Yes, he talked about free movement. But he was responding to the feedback from Singaporeans and the phrases "free movement" and "free flow" are not phrases owned by PSP.
The Government Ministers had been talking about "free flow" way before Dr Tan Cheng Bock had said it. I do not think I need to quote George Yeo or about what the Prime Minister had said and all that. So, that is one point.
The third point was about party members. PSP is an open party. We are liberal with members. We allow them to express their views and sometimes, there are one or two members or a minority of members who have different opinions. We have told them that they cannot make their views that public. But some of them chose to do that. We cannot stop them because we are a liberal party. We are not a party which will prevent all our members from having their own opinions. So, one or two party members mentioned that what I am doing in Parliament today is racist but that does not mean I am racist.
Minister.
Thank you. Mr Leong, so, your party members, you say some of them, think you are racist based on your statements. Mr Speaker, Sir, can I ask Mr Leong to confirm that, therefore, other Singaporeans may also go away with similar views that what he says is racist? And, second, Mr Leong says, now, they have got nothing to object to CECA and other FTAs. I think it is an important statement and I would like that recorded. I think we all need to note that.
But assuming that, then, we have over 20 FTAs —
A point of order.
Mr Leong.
I think the Minister is misquoting me. I say I am supporting FTAs and, in general, including CECA, but I did not say that I am supporting CECA wholeheartedly. We need more information.
So, you are supporting or not supporting?
We do not have enough information to support.
So, are you supporting or not supporting? If you do not have enough information, are you supporting or not supporting? I am not very clear.
I am not supporting.
So, you are not supporting CECA or FTAs, is that right?
The FTAs, we need more information as well on a case-by-case basis.
I am trying to understand what your position is. So, you are not supportiing FTAs, including CECA, is that right?
We are supporting FTAs in general for the benefits that FTAs can bring: trade to our country, investments and all that. But we are concerned that modern FTAs do have provisions on the Movement of Natural Persons. So, for each FTA, we want to look into the details. That is what we are saying.
Minister.
Sir, I am quite confused by the answer.
I am quite confused as well.
So, may I ask, Sir, through you, to Mr Leong, one, just tell us does he and does PSP support FTAs? A simple answer will do.
Mr Leong.
We support FTAs in general.
Thank you. Would that include, Sir, support for CECA?
Yes, in general.
Yes. Let us then have that recorded as he and PSP support CECA and FTAs in general.
May I ask then why is CECA specifically identified in the Motion when I assume there is nothing to distinguish between CECA and other FTAs in Mr Leong's mind?
Mr Leong.
As I said, in my speech, we do not have full disclosure on the Movement of Natural Persons provisions in CECA yet and, also, some of the other FTAs. So, we would like to know more. Before we know more information about that, we cannot shut down discussion on FTAs and CECA, which the Government is trying to do.
The day after the Ministerial Statement on 6 July, the next day, in The Straits Times, the Government straightaway said CECA has no effect on our ability to regulate immigration. But the data provided by the Government is not conclusive. The Government only quoted one year's ICT numbers – 500 ICT in 2020, which is a COVID-19 year. The Government did not provide the data to prove its point.
That is what I am driving at. As a result, although the Government may say, yes, we have told you many, many times and we have discussed this again and again, each time the disclosure is incomplete. That is why we have to continue discussing. Because sometimes, the time allowed for the discussion and the debate is also not sufficient.
Of course, in the Ministerial Statement on 6 July, because we are going to file this Motion, we are also holding back some of the things we wanted to discuss. But, today, we can discuss everything.
Minister.
Again, I am a bit confused. My question was a simple one. It is simply that if you look at the Motion which I read out, it highlights CECA. I am just trying to understand whether CECA has a special place in Mr Leong's affection and mind, or is it treated the same as all the other FTAs. If it is the same as all the other FTAs, why is CECA getting special mention? That is all. A simple answer will do.
Mr Leong.
The focus of the debate today is on the impact of our foreign talent policy on jobs and livelihoods. So, we are focused on all the work pass holders and not one particular nationality. But —
Mr Leong, if you can answer the Minister's question, which is a straightforward one. Because if it was just FTAs in general, then why is CECA being flagged out specifically?
Because there is not enough data. We want to know more about CECA.
But you do want to know more data about all the other FTAs, right, from what you were alluding to earlier?
Yes.
So, why no mention of the other FTAs but CECA, in particular?
No, but in our Motion, we said FTAs and CECA. So, "FTAs" is inside the Motion.
Minister.
I think Mr Leong does not know his own Motion. It says "in some FTAs like CECA". So, there are some FTAs which do not concern him and there are some FTAs which concern him. This is your own Motion, Mr Leong. Just tell us what it means? And why CECA?
Yes, I said "some FTAs like CECA". So, these are the FTAs, including CECA —
Which ones? Sir, if I may ask, which ones?
Mr Leong.
Including the Australian FTA, the China FTA, the US FTA, for example.
Sir, may I ask, through you, which aspects of the China FTA, the US FTA and Australian FTA bother Mr Leong like CECA?
Mr Leong.
The Australian FTA also contains a clause allowing ICTs to bring in dependants. For the China FTA, we are looking at the China FTA to compare with CECA, because both countries have very big populations. For the US FTA, we have received feedback from residents about why US citizens are allowed to buy properties in Singapore without paying the Additional Buyer's Stamp Duty. So, some of these FTAs, as I have said, we have to look at it on a case-by-case basis.
Minister.
Thank you. Sir, my understanding therefore, is that Mr Leong is equally concerned about the US FTA, the China FTA, the Australian FTA and CECA, and that CECA is not specifically being singled out. If I may just have that confirmation before I move on?
Mr Leong.
That is correct, Minister.
Thank you. Moreover, we have, I think, Sir, Mr Leong's confirmation that he supports FTAs.
I then ask, Sir, through you, does Mr Leong accept that his and his party's statements on CECA having been interpreted by some of PSP members as being racist, may well be interpreted by Singaporeans as racist as well?
Mr Leong.
The reason why I stated our position at the beginning of my speech is exactly in anticipation of what the Minister is going to ask on this. CECA is an economic agreement, trade agreement that we want to have more information on. Because the perception is that there are certain terms on the Movement of Natural Persons that are not beneficial to Singapore. So, we want more information, not necessarily directed at just CECA as an FTA —
I am sorry, Sir. A point of order. That has nothing to do with what I asked.
Mr Leong.
Okay, in that case, Minister, sorry, can you repeat the question again?
Some of Mr Leong's party members interpreted his statements as being racist and I quoted. One of the quotes is "You are targeting the Indian community and it is totally a racial undertone". My question was, if his own party members can think like that, it is entirely possible for other Singaporeans to take a similar view.
Mr Leong.
Sir, for discussion on any topic, there are people who have a different view. But CECA is an economic agreement that is the concern of many Singaporeans. So, we are asking for more information.
We have heard that. That was not my question, Sir.
Do you have a response specifically to the Minister's question?
Sorry, Minister. I want the Minister to repeat the question again.
For the third time, Minister.
Mr Leong, it is commonsensical, is it not, that those PSP members will not be the only ones who think that your statements are racist? If they can think like that, your own party members, then, other Singaporeans can reasonably think that your statements are racist too. It is a simple point.
Mr Leong.
Yes, okay, actually just now my answer was going to that point. But it does not mean that if someone accused somebody who is trying to find out more and discuss about an economic agreement thinks that the person is racist, then we need to shut out the whole discussion.
We are not talking about shutting out. In fact, we are having a long debate, we are going to be here for very long.
Correct.
And it will be even longer if we do not get answers. Nobody is shutting anybody out. Just a logical conclusion.
Mr Leong.
There will be some people who will think that there is racial undertone, yes.
Thank you. With that, Sir, I want to go back to some of the questions that were raised and not answered the last time in July.
My colleague Ong Ye Kung said that CECA does not allow a free flow of Indians into Singapore. He made that very clear to this House and to Mr Leong. I will also remind Mr Leong that it has been explained that nothing in CECA says that Singapore must unconditionally let PMEs into Singapore, and all foreign PMEs have to meet our work pass conditions in order to come and work here.
Just to remind Members and Mr Leong, I will repeat what Minister Ong had said. He said in this House, by reference to Chapter 9 of CECA, that it "makes it clear that the Government's ability to regulate immigration and foreign manpower is not affected by the agreement. The Government retains full rights to decide who can enter the country to live, work, become PRs or become citizens. This is clearly set out in two clauses. They are standard clauses commonly found in all FTAs." And then, he refers to Chapter 9.1.2 and 9.1.3.
He then says, "There is a strong immigration carve-out and National Treatment is not found in Chapter 9 of CECA, nor any other corresponding Chapter in the FTAs that Singapore has entered into", "...nothing in this agreement implies that Singapore must unconditionally let in PMEs from India. Contrary to PSP’s claim, our ability to impose requirements for immigration and work pass has never been in question in CECA or any other FTAs that we have signed."
And he made a couple of other points, if I may refer to, "PSP pointed out that CECA listed 127 categories of professionals, hence, claimed that Indian nationals in these professions can all freely come here to work for a year. This is false because, as I explained earlier, all foreign PMEs have to meet our work pass conditions in order to come and work here", "The second common criticism is that intra-corporate transferees from India can also freely enter Singapore to work. Based on my explanation on how the Chapter works, this is again not true. Intra-corporate transferees also have to meet our work pass qualifying criteria." Then, he said, "Mr Speaker, Sir, I hope we can put a stop to all this misinformation about our FTAs in general, and CECA, in particular."
So, bearing that in mind, Sir, can I ask, through you, for Mr Leong to respond to questions posed by Mr Ong Ye Kung that CECA does not allow a free flow of Indians into Singapore?
Mr Leong.
Sir, as I have said just now, the word "free flow" is not the property of PSP. It has been used by the Government as well. So, let us focus on what exactly — we are just talking about the numbers of foreign nationals that have come into Singapore.
Mr Leong, will you be coming to an answer to that question?
Yes, yes. Mr Speaker, Sir, please give me some time.
You have all the time, carry on.
So, let us focus on the numbers. If you do not give us the numbers, how are we going to answer to Singaporeans that, really, CECA has no influence over our immigration policies? We asked for ICT numbers but only one year's number is given. Can you give all the numbers? If you give all the numbers from 2005 to 2020, and the number of ICTs who have later on become PRs and new citizens, and obtained new work passes —
Sorry, Sir, a point of order. Sir, through you, may I remind Mr Leong there are two different issues. One, what does CECA or the other FTAs allow? That is a matter of interpretation of the agreement. That is what we had been debating in July and Minister Ong said there is nothing in CECA that allows for free flow.
The second is, within the framework of CECA or any other FTA, and I note that Mr Leong only wants to know CECA and not any other FTAs, how many have come in?
Those are matters of numbers and details, and we can deal with that separately. Hopefully, we will not take another hour for that.
But, first, as a matter of interpretation, the Minister who, as a civil servant, was negotiating this agreement, referred chapter and verse, and had explained how the Government applies that policy, that it is subject to our work pass rules. And that is how it has been applied for the last 15 years. So, unless Mr Leong says that Minister Ong Ye Kung lied or that the Government policies are other than what it says it is, let us just get an answer. Do you accept that there is nothing in CECA that allows for free movement of PMETs? That is all. It is a simple question.
Mr Leong.
Sir, to the Minister, we are arguing not about a legal document, just a legal document, not just the letter of the word. We are arguing about economic effect.
Minister.
Sir, first, I do not understand that answer because it says here in his Motion "anxiety among Singaporeans on jobs and livelihoods caused by the foreign talent policy and the provisions on Movement of Natural Persons in some free trade agreements like CECA". That is just untrue, based on what Minister Ong has said. We are arguing about your Motion which refers to the provisions of CECA. Sir, I am afraid Mr Leong does not even know what his Motion says. He did not even draft it. So, that is our first question.
Second question: will he now, in the context of his Motion, agree that we are debating the provisions of CECA? And will he accept that there is nothing in CECA that allows for free movement of Indians into Singapore?
Mr Leong.
The provisions that we put in the Motion is actually pertaining to the economic effect of the provisions.
Could you explain that again, please?
Economic effects of the provision.
So, the provisions are the legal agreement, as explained by the Minister. And what are your views about those provisions? They are written in black and white and we covered that quite extensively at previous Sittings. What are your views on that, please?
My view is that we are not arguing about a legal document today.
The legal documents dictate how these interactions take place with the other countries. So, unless you are doubting the validity of the agreement, or you are doubting the way in which it is implemented, I think we are seeking a view on that. If you could enlighten us, please?
We do not think that we can interpret, I mean, we can draw a conclusion from just the explanation given by the Minister.
Maybe if I can help to paraphrase that. The Minister has explained what the terms are. Do you agree that those are the terms of the free trade agreement as agreed between the two countries?
No, as I have said, I am not arguing about a legal document. What I am arguing about is, there is a legal document, but the way you implement the legal document and the economic effect can be different. Because after the legal document —
Sir, as a point of order, let us stop at the legal document first. I wanted to get, Sir, through you, to Mr Leong, because Minister Ong specifically raised this and Mr Leong said they need more time to study this. We have had August and September to study it.
So, first of all, the English meaning, unless some other language may be different, but the English meaning of "the provisions on Movement of Natural Persons in some free trade agreements like CECA" means what they say, which is the legal provisions in CECA. So, let us not try and wriggle out of that. That is what it means.
Second, before we talk about implementation, first, in terms of the legal provisions, I have read out what the Minister said, what these provisions are, does Mr Leong have any basis to contradict that or challenge that, or does he accept it?
Mr Leong.
Sir, may I ask my colleague Hazel Poa to come in and answer those questions?
Yes, you may.
Sir, I would like Mr Leong because Motion stands in his name; he has put this Motion, he has referred to provisions. If he does not know the answer, he can say he does not know the answer. And I am not sure the answer is going to be found in the phone.
Ms Hazel Poa.
Sir, some of these points that Minister Shanmugam has raised are in my speech. Can I suggest that we leave it here for now and we can discuss again after —
No, I think Mr Leong can answer them. I think they are pertinent to the issues that are at hand presently. You may raise it later or you can pass your speech to Mr Leong.
I would have the same answer. We went back to consider the points put up by —
Mr Leong, before we proceed, can we just answer the questions rather than cover the same ground again?
As of now, we do not agree to the interpretation of the legal documents as it is now.
What does that mean, exactly, when you say that you do not agree with the legal documents? As in as represented by the Minister? You do not agree that that is how it was phrased or you do not agree with how it is being phrased? So that we can proceed with the argument, so that we can develop the debate further. What exactly does that mean?
Because we are looking at the economic effects of the —
No, I understand. We are talking about the provisions that are provided under the FTAs, in this case, CECA. What exactly is it about the agreements that you disagree with or whatever that might be?
Okay, I can then say that at this point, I do not have a legal opinion of those provisions.
Okay, then if it is not the legal opinion, what is your opinion on them? A non-legal opinion?
My non-legal opinion would include my interpretation of the economic effect. So, it will be a bit different from what the Minister is asking.
Minister.
Again, Sir, that is a confusing answer. The Minister has said that there is no free movement allowed. We apply and we are entitled to apply our workforce rules and that this is how it has been operated since CECA has come into force and, likewise, for the other FTAs. Which part of that statement does he disagree with, Sir?
We will try one more time. Mr Leong.
Yes, maybe he can look at these statements and say which part of it he disagrees with. Does he disagree that we have applied it this way? Does he say that the Minister was lying in Parliament? Or does he say that the interpretation that the Minister has given is inaccurate and that we should, in fact, or are obliged to give free movement of all Indians into Singapore?
Mr Leong.
Sir, what I am saying is that I am focusing on the economic effects of those provisions. And looking at the economic effects, there are some initial doubts whether the movement is easier than what the Government has represented or not. But we still cannot come to a conclusion yet because we need more data from the Government. And the Government is withholding the data.
Okay, thank you. Minister, I suggest we move on. I do not think we are going to get any further clarity on this. We will just have to agree to disagree and register both points.
I will take it, Sir, based on the answers that Mr Leong really does not know about these legal provisions, despite the wording of his Motion. And he has no understanding of the provisions of CECA. And I assume that he has the same concerns about the provisions in the US FTA, the China FTA, and the Australian FTA. And, if so, I hope to see those FTAs being referenced in future rather than CECA being singled out. If what he says is true.
I have another clarification to seek, Sir: the PSP's claim that CECA allows the 127 categories of Indian professionals to come here freely to work. Minister Ong has pointed out that that is false and that they have to first meet our work pass rules. Does Mr Leong now accept that? Again, a short question. I hope, a short answer.
Mr Leong.
Speaker, that one is easy. I agree that all these ICTs and the 127 professionals need to go through our work pass route.
Thank you, Sir.
Speaker, can I ask a question?
Sir, the floor is mine.
Later.
When I finish, if there are clarifications, Mr Leong can ask me, just like I am asking him.
Can I, Sir, ask through you, and I think I heard the answer in Mr Leong's speech, confirm that Mr Leong accepts that we need some foreign PMETs for our economy? For example, that we cannot have zero PMETs. Can I, Sir, through you, have him confirm that?
Mr Leong.
Yes.
Thank you. Minister.
Sir, I want to remind the House, share with the House and Mr Leong some numbers. Over the last 10 years, the last decade, there has been an increase of 110,000 Employment Pass and S Pass holders. During the same period, the local PMETs increased by 300,000. So, local PMETs increased by 300,000. Employment Pass and S Pass holders, 110,000.
Second, the number of PMET job vacancies have been around 30,000 over the past five years.
Third, the size of our PR population has remained stable in the last five years. From 2016 to 2020, it is at about 520,000. In fact, it has been stable even before that, but we will just take five years.
So, with these numbers in mind – local PMETs increased by 300,000; foreign PMETs increased by 110,000, Employment Pass and S Pass holders; PR population, stable and Mr Leong agrees that we need some foreign PMETs. Today, it is 350,000.
If that is too much, then can he tell us what is the right number? Is it 300,000? Is it 200,000? Or is it 100,000?
Mr Leong.
Sir, can I confirm with the Minister that he only has one question, that question? Are there other questions there?
One question for now.
Okay, the number of rebalancing that we need to do depends on the Government's estimate of what is the number of Singaporeans that are being displaced, which is something that I will push during the debate.
So, can I take it, Sir, through you, that Mr Leong can confirm that he does not really know how many, what should the number be?
Mr Leong.
Sir, of course. The Government is always controlling the numbers, controlling the data. I will have to refer to the Government to give me some data to come up with an accurate answer. I got some numbers in mind, but I would prefer to wait for the data.
Sir, based on the data that is available and I have given him this data and much of it is available in public, can I take it that he is in no position, Sir, to tell us whether it should be 350,000 or whether it should be 400,000 or whether it should be less? He has got no basis.
Mr Leong.
Yes, at this moment, I will need more data from the Government before I can come up with an accurate number.
And, therefore, it follows, logically, Sir, that Mr Leong is not able to assert here or anywhere else that we have too many foreign PMETs in Singapore. That would be right?
Mr Leong.
Sir, that is not accurate because we are seeing so many underemployed Singaporeans around. The number of gig workers —
How many unemployed Singaporeans do you see? You were saying that you see many unemployed Singaporeans?
Underemployed. Underemployed Singaporeans have come forward to reflect to us, feedback to us. We have also seen in statistics, the number of gig workers, they are increasing. And also the number of self-employed Singaporeans is also increasing. So, there are Singaporeans that are being displaced. So, we got some rough numbers, but we want the Government to give us more accurate numbers.
My question was a simple one. Mr Leong agreed earlier that he does not know if 350,000 is too many or too little. So, it is a natural conclusion that he does not really know if there are too many foreign PMETs here. It is basically based on what he says.
Sir, can I ask through you, that he just be consistent with what he just said three minutes ago?
Sir, I am not going to say what is the number in my head until the Government gives me more data. Not that I do not have an idea of how many Singaporeans are being displaced.
Thank you, Sir. Can I ask, Sir, through you, I just mentioned there are 30,000 PMET vacancies. It is there. Perhaps Mr Leong can give us an explanation as to why there are so many vacancies which are unfilled in Singapore and have been unfilled for the last five years?
Sir, these 30,000 PMET vacancies, again, is a number that now the Minister has brought out. Okay, but if all these vacancies and numbers are being presented in a proper time series dataset, then, we will be able to analyse the numbers better. So, at the moment, I cannot give him an answer on that. Because you always come up with single data and ask me for answers.
The number of PMET jobs unfilled, that thousands of jobs were being unfilled, was set out in July. So, Mr Leong had said that he will study it carefully. And I think what this House is witnessing is a Motion that has been put up and Mr Leong does not know the meaning of the Motion that he has put up. Because he says "the provisions on Movement of Natural Persons in some free trade agreements like CECA". He has given no credible explanation on why CECA is singled out. He has no credible explanation as to why he refers to the provisions, which means legal provisions, the clauses in CECA, in his Motion and then asserts here that he does not know anything about the provisions in CECA. He has got no view on that.
Then, he should not have referred to that. So, it is meaningless, the Motion; does not make any sense to him, let alone to us.
And he says, there are too many foreign PMETs. But now he says, he does not know if there are too many and he does not know what the number ought to be. He does not tell us what further data he needs.
Sir, none of this is to say that there are no Singaporeans who have lost their jobs, that there are no Singaporeans who are underemployed, that there are no Singaporeans, particularly in their 40s and 50s, who are not in a very good situation. We all know that. Those are all true. But the point is to find the right solutions.
Displacement is taking place all over the world. We have tried to keep unemployment low, we have tried to create the jobs and many people have gotten jobs and we need to help those who have not got jobs, and the way to do it is to try to reskill them and bring in the right industries. Those are legitimate points to make.
What is not legitimate is to try and create a racist, xenophobic, them-versus-us fervour, put down a Motion saying that the terms of CECA are wrong. And then come to Parliament and say, I do not know anything about the terms of CECA. That is doing serious disservice to Singaporeans. That is not the way Members should behave, I am sorry to say.
You got to take this seriously. You got to know what your own Motion says. I am a lawyer, but you do not need to be a lawyer to know that this term, "provisions on Movement of Natural Persons in some free trade agreements", has got only one meaning. It is commonsensical.
Speaker, Sir, can I —–
I am having the floor, please.
You will have a chance to respond, Mr Leong.
Yes, my chance to respond.
Thank you, Sir.
Okay. Mr Leong.
Thank you, Sir. Minister, you have made a lot of accusations there. One is that we go back to square one again about my Motion statement. I bring the Motion statement to this Parliament about the economic effect of the provisions in the FTAs. I am not bringing to Parliament the legal interpretation of the provision. But if you have a legal interpretation, I am fine. I am just telling you that I am concentrating on the economic effect of the provisions.
Second point, you say you provided the data but I asked for a lot of data that is not provided.
Three, the displacement in Singapore and that is a key point that we are debating today. The Government says it is due to global forces. I say, or PSP says, a large part of it is not due to global forces. So, that is what we are debating about. So, do not jump the gun and come and make the conclusion now.
Minister.
I should address the Speaker. Looking at the Motion, Sir, Mr Leong can fulminate as much as he wants, but it says what it says. And it says, "the provisions on Movement of Natural Persons in some free trade agreements like CECA", and that is consistent with the position that Mr Leong put forward in July and what he has said in his Facebook post and what PSP has said, that CECA allows free movement of Indians into Singapore.
So, before we get all heated up, let me refer to what was discussed here the last time around. The Motion is consistent with what Dr Tan Cheng Bock had said on 3 August 2019, which Minister Ong referenced, and I quote Dr Tan, "amongst the terms of CECA, it allowed the free movement of professionals in 127 sectors to enter and work in Singapore." Mr Leong has confirmed that that is not accurate, because he says it is subject to our work pass rules, but this was what they were thinking.
Minister Ong pointed out, on 7 July, the same; that Dr Tan said "...CECA is an agreement between Singapore and India to bring in to allow, I think, 127 categories of professionals to come to Singapore and be given that free hand, practically free hand to come and work here". And that is what the Motion says, "the provisions on Movement of Natural Persons in some free trade agreements".
So, I mean one has got to be both honest and accurate. If Mr Leong does not know what the Motion means, if it has been drafted by someone and he has put his name to it, he can say so. But this is what the Motion says. If I may move on, Sir.
Sir, can I respond?
Mr Leong, a quick one.
I disagree with what the Minister said about his interpretation of the Motion and that I do not understand the Motion and all that.
I already said again and again, that the Motion statement that I put up is about the economic effects of the provisions. I do not expect this Parliament to just argue about legal interpretation. This Parliament is about jobs and livelihoods of our people, about the economy. So, what we are arguing, actually is a larger part of, should be about economics, social, economic issues. We are not going to stand here and keep arguing about a legal interpretation of a clause.
Mr Leong, if I may, the provisions are the first step, is it not? Because if the legal provisions do not provide for that, then it provides a basis for us to discuss about the economic effect. It does not preclude discussing that part because your Motion addresses that.
So, that is the issue at hand and we are trying to understand what is your understanding of the provision. Because it is in black and white, so, what are your views on that? We can subsequently discuss about economic effect, you can take all day if you wish. But what are your views on the legal provisions? It was spelt out in black and white, as illustrated by Minister Ong previously.
Okay, Sir, as I have said just now, at this point, I do not have any legal opinion on the provisions provided under the agreement.
Do you agree that those are the provisions that were spelt out in the agreement?
Yes, but then, in order to have a legal interpretation of provisions, you must look at other parts of the agreement and then you must look at other practices.
So, for those specific parts of the agreement, do you agree that those are in black and white, what was agreed?
At the moment, I have no opinion.
Minister.
Sir, that might be useful. So, through you, Sir, therefore I can confirm that if Mr Leong has no opinion, then naturally, he has no view as to whether the terms of CECA are negative for Singapore. I am not talking about actual implementation. We can discuss that. But since Mr Leong has no opinion, it must logically follow that as far as he is concerned, there are no provisions in CECA that he is concerned about. It must follow. May I ask for confirmation of that, Sir.
You may, but I think we know the answer. Mr Leong.
My answer is, at the moment, in terms of the legal interpretation that this agreement does not have further implementation, implications and all that, I do not have an opinion.
But you do have a negative view about it? Despite the fact that you do not have a legal or otherwise opinion of it?
I do not have a view yet. I am trying to get a view, if the Government is prepared to release more data, about ICTs and about all that, then I will have an economic view.
Minister, I suggest we move, because I do not think we are going to make much progress here.
Thank you, Sir. Sir, through you again, may I ask Mr Leong to confirm – and Members of this House would recall what he said about the CEO of DBS Bank. He professed his deep disappointment that "DBS is still without a homegrown CEO". Can I ask, Sir, whether Mr Leong still believes what he said, that naturalised Singapore Citizens should not hold top positions?
Sir, that is definitely not the case. When you are citizens, naturalised or homegrown, you are citizens. I have raised the issue during my maiden speech because I was talking about the succession plan, about skills transfer, which is part of what we are going to discuss today. About DBS, when he was appointed the current CEO, he was to still a foreigner. Why was the chance not given to a homegrown Singaporean? The bank should have had a succession plan that grooms Singaporeans to take over the job. That was what I was trying to drive at.
Sir, let me make a point of clarification. None of that answers the point I made. I am quoting Mr Leong, he professed his deep disappointment when Mr Piyush Gupta was and is DBS CEO, during his maiden speech, that DBS is still without a homegrown CEO. Meaning he was disappointed that it was Mr Gupta and not a homegrown CEO. So, let us not beat about the bush. I am asking whether he continues to have those beliefs or has he changed his mind.
Sir, if the Minister means that I am differentiating naturalised Singaporeans and homegrown Singaporeans, then I can confirm, the answer is no.
Thank you. Therefore, Mr Leong has changed his mind, it appears, Sir, from last year.
Mr Speaker, Sir, can I clarify?
Mr Leong.
I did not change my mind. My stance has always been like that.
Sir, may I then ask through you, what is the meaning of the statement that "DBS is still without a homegrown CEO". We are not talking about succession plans here. I am just asking for an interpretation of Mr Leong's words: "DBS is still without a homegrown CEO".
Mr Leong.
Okay. What I was referring to was actually referring to the point he was appointed, not at this moment.
Sorry, could you say that again, please?
Okay, what I was referring to was at the point of appointment, the year of appointment, the point when he was appointed, he was still a foreigner. But anyway, when I made that statement, I was not in any way, having Mr Piyush Gupta in mind. I was just talking about the many CEOs that DBS had got; they never had a succession plan. That was the intention. But, that is okay. Being one of the top lawyers in Singapore, maybe the Law Minister could make some interpretations and ask me in that way.
Sorry, Sir, can I ask that the natural interpretation of a statement that "I have deep disappointment that DBS is still without a homegrown CEO". At a time that a naturalised Singaporean is a CEO, the normal interpretation, whatever may be the workings of Mr Leong's mind, the normal interpretation would be that he is disappointed that it is Mr Gupta and not a homegrown Singaporean. Would that not be the natural interpretation, Sir?
Mr Leong, would that be a fair interpretation of what you have said?
Sir, that was not the intention.
A point of clarification, Sir. I did expressly say we leave aside whatever Mr Leong may have intended. I am simply asking whether what I have said is a fair interpretation, natural interpretation of what he said.
Mr Leong.
How it is interpreted, I think, depends on who is listening to it.
I think the question is, whether it is fair for anyone in public to interpret it the way as Minister has put across. Because that was what was said, I remembered, I think many of us would remember that. A few of us raised our eyebrows, because we were wondering what exactly you meant.
Yes.
Mr Speaker: So, would it be fair that that is how people would interpret it, notwithstanding whatever your intent might be? Because what we say in Parliament matters, because that is how the public will perceive it. Which is why the choice of words and phrases is important.
That was not my interpretation.
That is not the question at hand. Would that be interpreted the way it has been put across by the Minister?
I would say some minority of the people might interpret it that way.
Minister, please carry on.
Speaker, point of order.
Mr Leong.
All these issues that the Minister has raised are not related to the Motion today. Now he is going into the statements I made at my maiden speech. So, can I ask that we go back to the debate proper?
Minister.
Sir, I will just move on. I will just, for the record, set out exactly what was said by Mr Leong. He said and I quote: "I am deeply disappointed now ...", that these are the points that he was speaking, "...because 22 years later after Mr –" and I assume after Mr Wong's appointment in 1998, "...DBS is still without a homegrown CEO". It is open and shut. He meant 2020 and Mr Gupta was appointed in 2009. I think we can at least be honest with each other when the words are in black and white.
I would say, Sir, to this House, it is not wrong that we welcome talent when people are committed enough to take up citizenship. It is wrong to have an issue with new citizens and PRs from specific countries because it is quite clear what Mr Leong and PSP were doing. It is race-baiting and nationality-baiting without beating about the bush. And that is what the words of this Motion suggest. None of this is to deny the legitimate concerns of Singaporeans. None of this is to deny that there are people who have lost jobs, that there are people in their 40s and 50s, in particular, who are very concerned and that we have to do everything we can to help them and we have to stand by with them.
But I think race-baiting, nationality-baiting, putting down Motions and then coming to Parliament and saying, "well, I don't know, I don't have a view on the legal provisions", when your party has made it a point from day one to attack the legal provisions. I think none of those helped.
Based on his speech, Sir, Mr Leong has painted such a dark picture of what is going on in Singapore, which really bears little resemblance to reality. Is it that locals are being pushed out of PMET jobs on a large scale? We have created over 300,000 local PMET jobs. In fact, locals take up 80% of all PMET jobs.
Can we do better? I think we ought to do better by the people who have lost their jobs or who are underemployed.
Is it that our Universities have produced graduates who cannot get jobs? Over the past 10 years, nine in 10 graduates have been employed within six months after graduation, with starting salaries rising steadily. I think it is demeaning and dismissive of all the good people in our Universities and Polytechnics working hard to train our students, to say that they are producing people who cannot get employed. And it is untrue.
Would Singapore be consistently ranked highly on the UN's Human Development Index if Singaporean were oppressed in the labour market, if incomes have not risen and productivity stalled?
What we have is not perfect. It is not perfect anywhere in the world and we have to consistently work to improve. But it is not the picture that Mr Leong is describing. And I would say Mr Leong's views have been so completely distorted by his lack of understanding of CECA and his eagerness to attack Indians and CECA. And I would say what his party and Mr Leong are doing is one of the worst types of political opportunism – using race as a bait. Thank you, Sir.
Mr Leong, would you like to respond?
Sir, I strongly object to what the Minister said about PSP's position on race.
Noted.
The reason why we raised this Motion has nothing to do with race or xenophobia. We will continue to debate on why we think the situation in Singapore is far worse than what the Government has presented to Singaporeans. Okay? We will debate again. Thank you.
Thank you. Mr Pritam Singh.
Mr Speaker, I rise to speak on both Motions, the first filed by PSP Non-constituency Member of Parliament, Mr Leong Mun Wai on 31 August last month, and the second filed by the Minister for Finance Mr Lawrence Wong on 8 September. At their core, both Motions concern the employability of the Singapore worker and PMETs.
Sir, our local population acutely feels the consequences of Singapore being an open economy, with a large number of foreigners working amongst us and living next to us. On this lived reality, fundamental questions that have come up in the last two decades include: where does the Singapore worker stand and what are his or her job prospects in our hub economy? These questions will continue to come up more regularly than ever, as we move into a post-COVID-19 future.
My colleagues, Members He Ting Ru, Leon Perera, Gerald Giam and Jamus Lim, will also participate in this debate, with perspectives on both Motions and suggestions on the way forward.
My speech is in three parts. First, I will set out the Workers' Party's stand on free trade agreements (FTAs) and the India-Singapore Comprehensive Economic Cooperation Agreement (CECA). This part will be brief. Second, I will iterate the public sentiments on job insecurity felt by Singaporeans. Third, I will make a few suggestions on what should be done to alleviate the concerns of Singaporeans and ensure that the local/foreigner employment divide does not become a permanent fault line.
Sir, let me first start by stating the Workers' Party's position on FTAs and CECA. First, we accept that FTAs have encouraged investments and created jobs and opportunities for both Singaporeans as well as foreigners. This is undeniable.
Second, we note the Government's explanation that CECA does not allow Indian nationals free rein to enter Singapore and that the entry of foreigners who seek employment is regulated by the Government and, specifically, MOM's work pass policies. However, we believe that it is fair to ask whether the Government and MOM, for many years past, have failed to regulate work passes in the best way possible. I note that the Minister for Manpower recently announced that anti-discrimination legislation will be introduced. This is one of the things that the Workers' Party has called for in its manifesto.
Third, the Workers' Party does not assume that good jobs are automatically created for Singaporeans by virtue of Singapore's pro-trade policies and a strong network of FTAs, including CECA. We believe that, for a few groups, such as the sandwiched class, workers who lack skills and lower-income Singaporeans, the opposite may well occur. These groups may see depressed wages and fewer good job opportunities.
Our view is that the Government needs to intervene aggressively through policy or legislation to ameliorate this and ensure the availability of stronger safety nets for Singaporeans who cannot make the transition. The Government must ensure that Singaporeans are not discriminated against during their job search or at the workplace; that our education and training systems provide skills that are workplace-ready; and that skills are transferred to Singaporeans by foreign talent. Finally, the Government should proactively report on the costs and benefits of our FTAs across time, a subject Member Jamus Lim will touch on as well.
The Workers' Party also notes that there have been some elements in our society or perhaps from abroad that have used CECA as a dog-whistle, masquerading racism for genuine economic concerns. The Workers' Party accepts that genuine economic concerns exist and that it is fair to raise concerns about them. However, we abhor and denounce the racism and xenophobia that have become a part of the public narrative in some quarters. Some have gotten carried away resorting to loose and vile language online as an outlet for their frustration, something they would not do in person, or worse, extended this behaviour to the real world. This can never be right, and must also be rejected and condemned.
I now move to the second part of my speech: public perceptions on job insecurity. Mr Speaker, the Government would accept that there have been long simmering emotions amongst a sizeable number of Singaporeans surrounding CECA and, more generally, over the perception that Singaporeans are denied fair opportunities in the job market. Some of this has resulted in highly-charged conversations and incidents, both online and offline, even without the PSP's focus on this subject.
Immigration and the job prospects of locals are not only issues for Singaporeans. Globalisation has meant that the local populations of many countries, particularly advanced economies, share such concerns. As a young nation, these feelings of insecurity and dislocation can shake our national cohesion, with the country being unrecognisable to the one many of us grew up in.
Job displacement is very emotionally jarring, especially when your HR department tells you that your role has been made redundant, only for you to later find out that your job has been rejigged and filled by a foreigner. It is also upsetting for Singaporeans when they learn that a foreigner has filled a job position for which a Singaporean is suitably qualified.
The emotions that we see today, while directed differently – towards Indians in some cases – have been directed at other communities in the past. As noted by Minister for Manpower in his Ministerial Statement in July and I quote, "In the 2000s, we experienced a similar situation when the share of PRCs in our foreign workforce increased significantly, before tapering as China's growth took off. Both then and now, the large numbers did not go unnoticed and created frictions within our communities." An important distinction between the vitriol directed against the PRC workers was that many of them were employed in low- to middle-income sectors, while there has been an acute focus on Indian professional workers today.
Today, the influx of employees of Indian ethnicity – not all of whom are from India, some are from the US and elsewhere – taking up competitively paying jobs has also activated emotions in a not small number of Singaporeans. Some ask, "why can’t our people do those jobs?" After all, our students score so well on standardised tests. Our much-vaunted education system should have put our workforce in a much better position. This is a subject Member Gerald Giam will speak more about in his speech.
Our sense of home is also affected when some EP and S Pass holders struggle to speak, let alone communicate in our workplace lingua franca – English – which represents a fundamental basis around which we organise public affairs in Singapore. When this happens, some Singaporeans stop feeling that we are one Singapore, all rowing in the same direction.
Those Singaporeans who ride on the opportunities created by a growing economy, or who are new immigrants doing well economically, can more readily accept the new status quo. It is a small price to pay and one can interpret the new reality as the price of progress and economic growth. But for those who lose their jobs, see their incomes stagnate and fear for their children's prospects in a competitive Singapore – and these are commonly the sandwiched class and low-income Singaporeans – strong feelings are aroused, with many feeling that the playing field is uneven and the Government is slow to protect Singaporeans in their own land.
Ordinary Singaporeans do not delve into the intricacies of FTAs. Instead, they look around and come to conclusions based on what they perceive and experience. If Singaporeans have not for years been seeing foreigners occupying well-paying jobs while qualified Singaporeans are unemployed or underemployed, we would not be talking about this today.
Over the last two decades, the effect of the Government's immigration and foreign talent policies has been so pervasive that former Prime Minister Goh Chok Tong covered the subject in his autobiography released only a few months ago, the second part of his autobiography, and I quote, “….take PRs, for example. In the years before, the numbers rose to 50,000, then 70,000 a year. It was nearly 80,000 in 2008! I was surprised and annoyed. I told the Prime Minister so. Since then, we have kept the numbers to around 30,000 PRs every year. But even then, when you add the numbers up over the years, you will begin to feel the cumulative effects within the society and in daily living…" Then he goes on, " ...as a government, we needed to monitor the inflows of PRs and foreign workers as well as demographic changes more closely. No surprise that the people reacted in the way they did….the negative ground sentiment went beyond crowdedness. It also encompassed perceived job competition from foreigners and preference of some companies for foreigners over Singaporeans.” Unquote.
Sir, if a former Prime Minister whose job was not directly threatened or taken away by a foreigner can say he was "surprised and annoyed", how much more so for a Singaporean who has experienced such a fear of, or actual loss of their livelihood?
Mr Speaker, I now move on to the third part of my speech on what needs to be done to repair the local/foreign divide.
I make five suggestions which I will elaborate on in turn. One, policies and procedures must be introduced to more effectively promote and track skills transfers from foreigners to Singaporeans; two, fixed-term EPs tied to skills transfers should be considered; three, the problem of underemployment must be tracked and solved; four, the Government should consider setting up a Parliamentary Standing Select Committee dedicated to overseeing this issue of jobs and foreign employment; and five, the Government needs to communicate more and much better on jobs and foreign employment that it has been doing up to now.
The first suggestion: promoting and tracking the transfer of skills to Singaporeans.
My first suggestion is that the Government should double down on how it monitors the success of skills transfer initiatives which are generously funded with taxpayers’ money. Do skills transfer initiatives work and to what extent?
I spoke about the Capability Transfer Programme (CTP) during the Committee of Supply debates this year. This Government programme has been extended to 2024 and, in its own words, seeks to, I quote, “support pervasive innovation throughout the economy and build deep capabilities in our local workforce to support companies, associations and professional bodies to speed up the transfer of global capabilities into Singapore”, unquote. Does it do what it promises?
There has to be a reckoning, a balance sheet drawn up, where the successes and shortcomings of such initiatives to transfer skills to Singaporeans are properly accounted for and assessed across sectors and industries. In response to my queries in Parliament, the Government reported that $5 million has been spent over the last five years and this initiative has benefited 970 Singaporeans. Without more, this does appear underwhelming.
I note that the CTP is only one arrow in the Government’s quiver, but this only reiterates the point that a holistic assessment and reporting of the transfer of skills from foreigners to Singaporeans is necessary. I suggest that the extent of skills transfer from foreigners to locals be publicly tracked, monitored and reported as a Key Performance Indicator, or KPI, for each sector in the revised Industry Transformation Roadmaps under ITM 2.0. As each industry is tracked, reasons should be given why skills can or cannot be transferred. It should also be clearly stated how these gaps are being plugged.
Second suggestion: fixed-term EPs. To ease the insecurity felt by the Singaporean worker or PMET, Mr Speaker, I restate a proposal raised by my colleague Member of Parliament Leon Perera, at the Committee of Supply debates in March. He suggested fixed-term EPs that are tied to the training of, or skills transfer to Singaporean workers.
Currently, employers expect the EP of foreigners to be routinely renewed. A fixed-term EP would be one that would only be renewed if the applicant company can prove that, under the previous EP, Singaporean workers in the company or in the industry have benefited from skills upgrading. This new category of work pass can be piloted in newer, disruptive industries, such as autonomous vehicles and AI, where there should be no reason why Singaporeans should not be the candidates of choice. I hope MOM can look into such alternative proposals to secure tangible and positive outcomes for the Singapore worker or PMET by tracking skills transfer to our people.
Third: underemployment. The Government needs to track and solve underemployment. Workers' Party Chair Ms Sylvia Lim, in her Committee of Supply speech in 2016, suggested that underemployment should be measured. MOM said at the time that time-related underemployment is the only internationally accepted statistical definition of underemployment and since it is recommended by the International Labour Organization or ILO, Singapore follows that norm.
Ms Sylvia Lim spoke again on underemployment in her 2019 Budget debate speech, to which the former Minister for Manpower responded that MOM is interested in tracking other forms of underemployment, such as skill-related underemployment, but reiterated that there were no internationally recognised ways of doing so. She said that the Government was working closely with the ILO to develop suitable methodologies. We have yet to hear of the result of this work with the ILO.
Skill-related underemployment appears to be a reality affecting some of our workers. These workers are not undertaking work for which they were trained, for example, engineers working as private hire drivers. Some reskilling initiatives for these workers may be necessary to better align their foundational capabilities. Yet others may have made the transition out of choice. Better measurement and regularly reporting of such underemployment would also enable Singaporeans to assess the Government’s efforts in this regard. An accurate understanding of skills-based underemployment would also have the knock-on effect of ensuring that the selection criteria for work pass applicants would be more accurately scoped. The Workers’ Party suggests that there is an urgent need to publicly track underemployment amongst Singaporeans and to publish such findings.
My fourth suggestion is that there should be a check and balance of a dedicated platform where the policy-makers can be questioned, and this is the suggestion of a permanent Parliamentary Standing Select Committee dedicated to the issue of jobs and foreign employment.
This high level of accountability would do two things.
First, such a committee would closely monitor the Government’s efforts by tracking unemployment and underemployment and job-related data, in addition to calling witnesses to give evidence. Such a committee could also ensure that Singaporeans are getting a fair shake at the workplace and address concerns on job security and employment prospects of Singaporeans, including where training and skills upgrading opportunities lie.
Second, such a committee, by virtue of increased transparency and signature, compared to the current status quo, would minimise mischievous attempts at stoking xenophobia and unreasonable expectations of job protection regardless of competence.
In other parliamentary standing democracies, such permanent Parliamentary Standing Select Committees on fundamental national matters that are appropriately resourced and supported by a strong secretariat, are par for the course. It is about time we had such a committee.
My fifth suggestion is that the Government needs to communicate more and much better than it has been doing till now on foreign employment. And by this, I mean giving factual information so that public debate can be better informed. And this calls for a change of culture. A philosophical change. The Government should have started doing this years ago. Quite clearly, this feeling of displacement and heightened sensitivity was the order of the day well before CECA entered the public lexicon in the way it has done over the last few months. As early as August 2015, the Government fact-checking website, Factually, put out an article titled "Does CECA allow firms to hire Indian professionals in Singapore without valid work passes, or without adhering to fair employment guidelines?" The fact that such an article was needed and put out there suggests that the Government was fully aware that CECA was in danger of becoming a fault line many years ago.
In July, when Minister Ong Ye Kung and Minister Tan See Leng made their Ministerial Statements, I shared with this House that more than five years prior in 2016, my Parliamentary colleague, Workers' Party Member of Parliament Leon Perera, asked the then Minister for Manpower a straightforward Parliamentary Question on the number of Intra-Corporate Transferees (ICTs) through CECA. Specifically, Mr Leon Perera asked how many ICTs from India had been approved under CECA from its first year to the latest year for which data was available. Then Manpower Minister, Mr Lim Swee Say, replied, and I quote: “ICTs from any country, including India, would need to meet the Ministry’s work pass qualifying criteria to work in Singapore. The only difference is that ICTs from all countries are exempted from the advertisement requirement in our Jobs Bank. The Ministry does not disclose data on foreign manpower with breakdown by nationality, including data on ICTs.” Unquote.
The Government simply refused to answer a question of national relevance for which data was readily available. Is this acceptable? Can Singaporeans be blamed for assuming that the numbers must have been so huge that the Government saw fit not to reveal them?
To say that no other government reveals information to the granularity requested ignores the fact that Singapore is sui generis – of its own class. How many other multi-racial hub-economies, immigrant-needy and in our unique geographical and demographic situation can we name? None.
The Government’s position on revealing ICT information seemed to change with Minister Tan See Leng’s speech in Parliament in July. I quote: “We recognise that if misconceptions continue to spread, in spite of all our attempts to address them in so many other ways, even more damage will be done. So, I will share some numbers to address the misconceptions and allow for a meaningful engagement of the issue.” Unquote.
Minister Tan See Leng revealed that the number of ICTs from India was a low figure of 500 in the year 2020. But I should point out that this was a number after the onset of COVID-19. Quite obviously, there must have been a reduction of Indian nationals entering Singapore in 2020 compared to the previous years.
The ICT numbers that Mr Leon Perera asked for in 2016 would allow us to make a better assessment of the impact of ICTs under CECA compared to other FTAs. Revealing the numbers would promote a fact-based conversation. The Government’s initiative to release only the ICT figures for 2020, instead of placating CECA detractors, may actually have the opposite effect: it begs the question of what the figures for the earlier years were.
To help us base today’s debate on facts, may I call on the Government to now answer the question asked by Mr Leon Perera in 2016: how many ICTs have come from India under CECA from 2005 to 2019?
As far as the release of information from the Government is concerned, may I add that I read Minister Tan See Leng’s speech with an implicit caveat that the Government’s release of information on such matters would likely continue to be reactive and when it suits the Government, rather than proactive and when it suits the people. I would be delighted to stand corrected on this, but if I am right that the Government prefers to remain reactive, I would suggest to the Government that this approach can no longer hold water, nor should it, a point Member of Parliament He Ting Ru will make in her speech as well.
This desire to interrogate facts communicated by the Government will only increase, a point that I have shared previously in this House. The Government must share detailed facts that matter to the public and not only consolidated facts that broadly support the Government’s position. For example, since July, the Government has been using the digital notice boards located at every ground floor lift lobby in HDB blocks to launch an aggressive campaign to address the concerns surrounding CECA. This is understandable. One prominent figure in the digital notices is that 97,000 Singaporeans have benefited from CECA.
But where should Singaporeans go when they want more details? For example, at what wage levels were these jobs? Which industries benefited? Were these jobs part-time or full-time ones? This also invites the question of correlation and causation. Is it possible that these are net jobs created by firms since 2005 that are in India through CECA? If so, that does not necessarily mean that the advantages afforded by CECA created those jobs. Such information is not provided in the displays.
I do not believe such additional information is a bridge too far, if the Government wants to clear the air. Surely, it would not be too difficult to incorporate additional detailed information or have it available by way of a QR code in the digital notice display. As intimated earlier, particularly for an issue as sensitive as this, the default position of the Government should be to release more information and explain the situation.
Sir, the Government remains in the most privileged position to move swiftly to assuage public concerns or misunderstanding. The Government needs to reflect on its own omissions and resistance when it comes to providing data and information, and how it ought to take some responsibility for the groundswell of misinformation about CECA.
Many Singaporeans receive news and information through social media. Much of the racist vitriol and xenophobia directed at Indians over CECA can be found online and from anonymous posts. In 2018, the report of the Select Committee for Deliberate Online Falsehoods identified particular traits within the ecology of social media, such as confirmation bias, the illusory truth effect, and the slow drip of falsehoods. Such realities make it more important to be forthcoming and aggressive in releasing information.
Separately, the foreigner-local issue is a fault line that can be exploited by external parties to compromise and destroy Singapore's psychological defences.
Some bad actors, knowing that we rely on foreigners to address our fertility numbers and to ensure an economically vibrant and successful Singapore and are equally aware of how nation building is more challenging as a result for us, would have their own reasons, no doubt, to see Singapore fail. Pitting one racial community against another is an easy way to do this.
It is in our nation's interest that the Government anticipate, change tack and drive an active, not passive, conversation informed by facts rather than misinformation on jobs and the employment situation in Singapore.
In the face of a US-China Cold War and our majority ethnic Chinese population, I would suggest that it is perfectly within the contemplation of other bad actors to use Singapore's racial balance to play out one act of a modern great game amongst our local population, pitting Indians against Chinese as an overlay to fraught Sino-Indian relations and to build up more anger against Indian workers and India in general.
There is some data out there on jobs, which the Government releases every now and then. But the Government can bring this all together with key principals, such as MOM, SkillsFuture Singapore, Workforce Singapore and MTI, in an open and accountable manner.
If we can clarify issues that disturb Singaporeans who would inevitably have less information than the Government, we would be able to focus singularly on the progress being made by the Singaporean PMETs and workers, and address gaps that develop.
Sir, those were the three parts of my speech: the Workers' Party's position on FTAs and CECA, local concerns on job insecurity and suggestions on what needs to be done.
Mr Speaker, may I conclude by saying that being a country open to foreign investment and looking after the Singaporean worker and PMET must be complementary objectives.
In August last year, I said in this House, "Foreigners are important to Singapore and they help power our economy. Their presence gives Singapore a vitality that keeps us economically relevant and also provides jobs and opportunities to our fellow Singaporeans. Many Singaporeans count the foreigners in our midst, regardless of race, language or religion, as our friends. But it is precisely because we need foreigners to power our economy that we need to pay more attention to Singapore workers, some of whom feel excluded from opportunities created in their homeland."
The Minister for Finance Lawrence Wong, in reference to the Ministerial Statement made by Minister Ong Ye Kung and Minister Tan See Leng, said that the tone of how we debate the issue matters. The Minister said that if investors start to feel that Singapore is less hospitable to foreign investment and talent, they will surely look for other options and there are many compelling options everywhere in the world. We may all end up worse off.
In my estimation, Sir, a more open and accountable approach by the Government to the dynamic employment situation is likely to alleviate the anxieties of foreign businesses. They may well devote their intellectual capital to being a dedicated part of the solution, providing greater emphasis on in-house skills upgrading for all their workers, including Singaporeans, and become more conscious of their need to hire and train more locals.
The anxieties and concerns of the Singaporean worker and PMET are real. Our workers carry the same fears and concerns for their children. These insecurities and uncertainties are not recent.
It is for this reason that the Workers’ Party proposes an amendment to the Minister for Finance's Motion, which I seek to share with this House. May I hand a copy to you, Sir, and, if permitted, thereafter to Members. [A copy of amendment handed to Mr Speaker.]
The Clerk will examine your proposed amendment for compliance with the Standing Orders, but meanwhile, please continue with your speech. You may proceed.
Sir, if I may, I will just wait for maybe 15 seconds for the amendments to be distributed.
Sure. [A handout was distributed to hon Members.]
Sir, I beg to move the following amendments.
Under limb (c), to delete the words "supports" at the start of the sentence and to replace it with "calls for stronger".
Under limb (d), to delete the word "and".
Under limb (e), to include the word "and" at the end of the sentence after the semi-colon.
Finally, to insert a new limb (f) which reads as follows, "calls on the Government to proactively release information on jobs and employment prospects of Singaporeans and the costs and benefits of Free Trade Agreements and foreign worker policies with a view to formulating better policies to ensure Singaporeans secure good jobs in Singapore and are not disadvantaged when seeking employment."
Mr Speaker, please allow me to explain the proposed amendments very briefly.
The inclusion of the words "calls on stronger" in place of "supports", reinforces the importance of correcting course and adjusting or changing policies going forward to address the anxieties amongst Singaporeans that limb (a) of the Minister's Motion acknowledges has taken root in the recent past.
The new limb (f) captures what we in the Workers' Party believe represents a fundamental change of culture needed with respect to information disclosure.
A proactive approach to disclosure would operate to take the sting out of misinformation campaigns that ride on job and unemployment insecurity, and encourage a fact-based conversation amongst our people. This would, in turn, buttress efforts amongst Singaporeans to provide feedback on gaps and solutions that can improve outcomes for the Singaporean worker and PMET.
This limb is not inconsistent with the Government's acknowledgement in July that it is better for data, for example, such as that requested by Leon Perera on ICT numbers, and this is my example, to come out early when it concerns issues like racism or xenophobia and that it is much better to quell these issues earlier.
Sir, that marks the end of my speech. My colleague, Member of Parliament He Ting Ru will propose an amendment to the Motion by Mr Leong Mun Wai in her speech. Thank you, Mr Speaker.
It has been proposed as an amendment to the Motion standing in the name of the Minister for Finance as articulated by the Leader of the Opposition:
At paragraph (c), to delete the word "supports" at the start of the sentence and to replace it with "calls for stronger".
At (d), to delete the word "and".
At (e), to include the word "and" at the end of the sentence after the semi-colon.
And to insert a whole new limb (f), which reads, "calls on the Government to proactively release information on jobs and employment prospects of Singaporeans and the costs and benefits of Free Trade Agreements and foreign worker policies with a view to formulating better policies to ensure Singaporeans secure good jobs in Singapore and are not disadvantaged when seeking employment."
Ms Hazel Poa.
Mr Speaker, Sir, of all the FTAs that we have signed with other countries, the Singapore-India Comprehensive Economic Cooperation Agreement, or CECA, has attracted the most attention for two reasons.
Firstly, it contains a clause in article 9.5 granting entry to persons in 127 professions, which is not found in the other FTAs that Singapore signs with other countries.
Secondly, there was a rapid increase in the number of EP holders from India working in Singapore in the past 15 years.
The Minister for Manpower has revealed that the proportion of EP holders from India has increased from one in seven in 2005, to a quarter in 2020. Based on 65,000 EP holders in 2005 and 177,000 EP holders in 2020, we can calculate that the number of EP holders from India increased by 377% from 2005 to 2020, an average growth rate of 11% per year.
In comparison, the proportion of EP holders from China has remained stable, therefore, implying that the number of EP holders from China grew in tandem with the increase in the total number of EP holders, that is, an increase of 172% from 2005 to 2020 or an average growth rate of 7% per year.
The Minister explained that the increase in migrant workers from India is a global trend. Based on the figures provided in the Ministerial Statement, the number of international migrants from India increased from 10 million in 2000 to 18 million in 2020 or an average growth rate of 3% per year.
If we assume a stable growth rate, then, for comparison purposes, the global growth of migrants from India over the period 2005 to 2020 would be 55%. The growth of 377% in Singapore far outstrips the global trend.
To summarise, the percentage growth of EP holders from India to Singapore is nearly seven times that of the global trend.
What then is the basis for claiming that the growth rate in Singapore is a reflection of global trend? Can the Minister provide examples of other countries that experienced similar growth to Singapore's?
Singaporeans who experienced such changes in their daily lives naturally searched for answers, thus, putting CECA in the spotlight for it seems to offer an explanation.
The Ministers have explained that the clauses on manpower are still subject to our manpower policies and also pointed out that Japan and South Korea have similar agreements with India.
Japan and South Korea have natural barriers in the form of language, thereby making them less accessible as compared to Singapore. Other English-speaking countries are presumably more cautious about signing such an agreement.
We are all familiar with the effect of messaging in a commercial context. Two identical products, one with a good advertising campaign with a strong message and another with a weak message can have very different sales outcomes. The same applies to other areas of life as well. A strong message is a powerful tool.
This clause on the movement of 127 professionals in an agreement signed by the governments of two countries sends a strong message of welcome to Indian professionals. To ignore this effect and conclude that the presence or absence of this clause does not change anything since it is still subject to our manpower policies and criteria is being blinded to reality by technicalities.
Consider two different countries, one with whom we signed an agreement on the movement of labour and another without. The agreement imposes an obligation to grant work permissions to nationals from the first country, provided our manpower policy requirements are met, but no such obligations exist with respect to nationals from the latter country. So, the agreement forms the first gate and our manpower policies form the second gate.
To address the concerns of Singaporeans, we need to go beyond CECA to our foreign manpower policies in general.
Currently, quotas are imposed on Work Permits and S Passes. There is no quota for Employment Passes which are for jobs with a minimum salary of $4,500 and, in the case of the finance industry, $5,000.
If we impose only a minimum salary requirement and open up all jobs beyond that salary to fair competition globally, then, when our small population competes fairly with the huge global population for those jobs, mathematically speaking, we can expect a significant proportion of the jobs to go to foreigners. As the world becomes more integrated, it will only get more so.
So, while fair competition sounds ideal, it is neither tenable nor practical. This is especially so when many other developed countries impose a tighter level of control on foreign manpower, making it an unlevel playing field for Singaporeans competing for jobs globally.
It is our view that tighter controls on foreign manpower are necessary.
The Government maintained that by opening up to global labour supply, we bring in more jobs for Singaporeans and that the foreign workforce provides a buffer for job losses for locals in times of an economic downturn, as in the recent pandemic.
The Minister has said that local PME jobs have increased by 380,000. My colleague Mr Leong Mun Wai has raised doubts over claims that our foreign manpower policies have created more jobs for locals and queried this number. Allow me to elaborate.
A portion of the 380,000 jobs could be due to reclassification, a result of Permanent Residents (PRs) becoming citizens and foreigners becoming PRs.
For example, suppose 1,000 foreigners holding PME jobs applied for and became PRs. Then, these 1,000 jobs previously classified as foreign PME jobs became local PME jobs when they became PR. There is no increase in jobs but there is an increase of 1,000 local PME jobs and a decrease of 1,000 foreign PME jobs.
Each year, we have about 20,000 new citizens on average. Over 15 years, that is an increase of about 300,000. The number of PRs has been stable in recent years. So, the total number of residents, comprising both citizens and PRs have increased by about 300,000.
While not all the 300,000 increase in citizens and PRs are holding PME jobs, it still suggests that a significant portion of the 380,000 increase in local PME jobs could have come from a change in the status of the job holders and not due to the creation of new jobs.
Can MOM clarify whether the changes arising from the change in the status of the job holder is included in the 380,000? If so, how many new local PME jobs were created after netting off the effect of reclassification?
As for the point on foreign labour providing a buffer for job losses in an economic downturn, our foreign workforce is large enough that even if we were to cut the foreign workforce significantly, the same buffer would still exist.
In addition, what is not addressed is underemployment, an area my colleague Mr Leong Mun Wai has spoken on earlier.
Singaporeans who were displaced from their jobs may subsequently find employment that do not commensurate with their qualifications, skills or experience. Given that this concern has been raised for many years, have we made any attempts to measure underemployment? Does the labour survey contain questions to identify and measure underemployment, apart from hours of work? If not, why not? If so, can MOM share the information on the extent and trend of underemployment in Singapore in the last 20 years?
With your permission, Mr Speaker, may I ask the Clerks to distribute a handout on a comparison of our labour force growth versus median wage growth?
Please carry on. [A handout was distributed to hon Members. Please refer to Annex 1.]
Economic theory tells us that when supply of labour increases, all else being equal, the price of labour, or wages, in other words, decreases.
There are, of course, other factors affecting wages, with the supply of labour being one factor. But looking at the labour force growth and the real wage growth from 2009 to 2019, we see that in years of higher labour force growth, we tend to have lower real wage growth and vice versa. When labour force growth is lower, real wage growth is higher.
The handout contains a scatter diagram showing the correlation and the regression line between labour force growth in Singapore and the real wage growth. The regression line is negatively sloped, which means that these two move in opposite directions. In other words, when labour supply growth goes up, real wage growth goes down.
As we pursue economic growth, we should always bear in mind that economic growth is a means, not an end. A means to improve the lives of Singaporeans. Increasing labour supply by bringing in migrant workers increases economic growth but dampens local wages, a trend that we observed in our study using statistics from 2009 to 2019.
We would like to ask the Minister for Manpower whether the Ministry has studied the effects of how labour force growth depresses real wage growth and, if so, what is their conclusion.
If our priority is economic growth, then, indeed, we should welcome all foreign direct investments, or FDIs, even if they should require a huge influx of foreign manpower.
But if our priority is wage growth, then we would be more selective and focused in bringing in FDIs that benefit primarily the local workforce and does not require a high proportion of foreign manpower. Trading economic growth for wage growth is a worthwhile exchange.
The Government had previously indicated that it is aiming to limit the proportion of foreign manpower in our labour force to one third. Is that still the target this Government is holding to? With this target in mind, does the Government turn down FDIs that would require a higher proportion of foreigners? How is this target put into effect?
My colleague Mr Leong Mun Wai has spoken extensively on manpower policies and proposals. I will now touch on another area of concern and that is enforcement.
There is a Chinese saying, "上有政策、下有对策", which, translated, means that while the government has policies, those who are governed have ways to deal with it or have counter measures.
There have been several widely publicised cases of underpayment by employers. This is when employers make inflated claims of staff salaries to MOM or staff are paid full salaries but told to return a portion to the company in cash. This practice effectively circumvents minimum salary requirements for S Passes and EPs.
The reality is that this practice has been going on for years. Mainly, because money is returned in cash, it is difficult to trace unless a thorough investigation is conducted or the employee reports the matter to MOM.
Recent calls by a Labour Member of Parliament and a Tripartite Alliance for Fair and Progressive Employment Practices (TAFEP) Member of Parliament asking for greater teeth to be given to TAFEP for enforcement are also an indication that the current level of enforcement is not meeting our needs.
Recently, a business executive who is tendering for various projects highlighted to me that this practice has created an uneven playing field. He is aggrieved that while he does the right thing to employ Singaporeans wherever possible and to report to authorities actual salaries paid, his competitors would use such tactics to lower their costs, and therefore, offer much lower prices to win tenders, with salary being a huge proportion of the cost for projects.
Organisations calling for tenders do not have incentives nor reasons to care whether or not such practices are going on in the company winning the tender. While we are trying to build a Singaporean Core in companies, should we not strengthen our policing of such practices? It would be ironic if companies that break the rules are rewarded over law-abiding ones.
The increasingly common practice of subcontracting can also dilute the effectiveness of enforcement. Separate companies can be set up to take over certain business functions and "take the fall" should they be discovered to have violated any manpower policies and regulations.
There are also various other ways of circumventing the rules, for example, the use of phantom employees to meet quota requirements. We would, therefore, like to suggest two ways of strengthening enforcement.
Firstly, we propose that for large contracts or tenders, a certain level of duty of care be imposed on the purchasing company. For example, to include audit requirements on successful tenderers to ensure compliance with manpower policies. This will provide incentives for companies to comply and also make evasion via subcontracting more difficult.
Secondly, we suggest the Government explore the licensing of human resource managers (HRMs). Currently, we license certain professions, for example, doctors, lawyers and real estate agents, amongst others. We impose on them certain standards of service and code of conduct. Those who fail the standards can have their licence taken away.
We can similarly license HRMs and task them to ensure compliance with manpower policies in their companies. Large employers should be required to hire licensed human resource managers who will have personal responsibilities to ensure full compliance with Government manpower regulations and, those who do not, risk penalties, which can include losing their licence. A high turnover of HRMs will also be a tell-tale sign of trouble.
In conclusion, we agree that maintaining an open economy and taking in manpower from other countries are beneficial. The issue is one of degree. To what extent do we take in foreign manpower? At what point does it become an overdose?
We are not asking for a closed economy or a closed labour market but a reduction in our reliance on foreign manpower to a lower level and keeping a close eye on wage growth while we adjust the level of foreign participation in our labour force.
It would also be a good time to reiterate that Ministerial Salaries should be pegged to the median wage. Increasing labour supply leads to GDP growth, which increases Ministerial Salaries. However, the same labour supply increase depresses median wage growth.
Our current model can lead to a divergence in the movement of the salaries of political leaders and those of average Singaporeans. This is not a good basis on which to build trust.
On the other hand, if Ministerial Salaries are pegged to the median wage, it sends convincingly the message that the political leaders and Singaporeans at large are on the same boat, more so than any words can.
Today, representatives from various parties talk about the importance of a Singaporean Core. Let us not stop at lip service. As the saying goes, what gets measured gets done. Make it concrete. Make the percentage of Singaporean workers into a Government key performance indicator (KPI).
I would also like to take this opportunity to respond to some of the points that were raised earlier by Minister Lawrence Wong and Minister K Shanmugam.
On the issue of spreading misinformation about CECA, from what has been said, it seems that attempts to spread misinformation hinge on the use of words like "free flow of labour". I would like to point out that both George Yeo, a former Cabinet Minister, and Prime Minister Lee Hsien Loong have used similar words in 2006 and 2005 respectively.
On 29 June 2005, at the dinner after the signing of CECA, Prime Minister Lee Hsien Loong said, "As economic linkages expand and a free flow of people and ideas continues, I am confident that the relationship will grow from strength to strength."
Mr George Yeo, on 2 March 2006, during the Committee of Supply, said, "Professionals like doctors, accountants and engineers are able to move back and forth freely, operating within the same legal and regulatory framework."
Does this imply that they are also making attempts to misrepresent CECA? For most laypeople, such words are not taken so literally but merely seeks to imply easy access rather than the total absence of criteria. This focus on semantics and technicalities instead of the underlying causes is rather disappointing.
We also object to the implication that discussions on free trade agreements stir up racism and xenophobia. In our opinion, asserting that Singaporeans are not ready for a non-Chinese Prime Minister does greater damage to our decades of efforts to eradicate racism.
There are other quotes we can delve into if we wish to discuss this matter further but we would rather not open up old wounds and prefer to look forward and engage in a constructive debate on how to make things better.
It is an area that deserves attention and a fuller discussion in the right spirit, one which is empathetic and cooperative, not adversarial.
Minister Lawrence Wong gave an example of an Indian Singaporean who feels that debating about CECA is affecting his job search. I would like to emphasise that PSP is pushing for a tighter control on foreign manpower. If foreign manpower is tightened, he will find his employment prospects much improved.
I am an employer myself and I have been reading resumes for 20 years. Recently, I have seen the trend of Singapore Citizenship status gaining greater prominence in resumes, not just in the resumes of Indian Singaporeans but also Chinese Singaporeans and Malay Singaporeans. If more Singaporeans feel that their citizenship improves their job chances, is that not a good development?
Order. I propose to take a break now. I suspend the Sitting and will take the Chair at 5.35 pm.
Sitting accordingly suspended
at 5.16 pm until 5.35 pm.
Sitting resumed at 5.35 pm.
[Mr Speaker in the Chair]
(Simultaneous debate on both Motions)
Debate resumed.
Mr Patrick Tay.
I am concerned about some of the points and assertions made by hon Member Mr Leong Mun Wai earlier. I wanted to make some comments.
First, in relation to work passes, he had suggested that we raise the EP qualifying salaries from the current $4,500 to $10,000, and for S Passes to be raised from $2,500 to $4,500.
I am not sure whether Mr Leong is aware of the ground sentiments on this both from employers and workers. My union leaders have shared with me, to handle this raising in a carefully considered manner.
Why? Each time the S Pass rates, which apply to foreigners, are raised, Singaporeans who are working alongside these pass holders and doing the same job, may not always get the immediate percentage increases at the same time, which is why it has to be done incrementally and carefully in a considered manner.
Second, let me also state that we also have a significant number of S Pass and EP holders in the healthcare and essential services sectors, looking after all of us and fighting alongside us in this pandemic. Many of them are my fellow union members as well. A suggested sharp curb of S Passes and EPs in these sectors as well as in many of these essential services must also be handled with care.
Third, Mr Leong attributed the 80,000 PRs given at the height of immigration all to work pass holders. I hope Mr Leong is aware Singaporeans also marry foreigners and apply permanent residency for them.
Member Ms Hazel Poa earlier suggested that we should squeeze out more foreigners, create an even tighter labour market, and this will result in median wages going up. I think this may be a too simplistic analysis. Tighter labour market alone, by removing all foreign PMETs, does not necessarily result in higher median wages. Real average wage growth at the overall economy level depends on three factors, namely, labour productivity growth, growth in labour's terms of trade and growth in the labour share of output.
Mr Speaker, Sir, NTUC and the Labour Movement, as a symbiotic partner, is fully cognisant that Singapore has to stay open as a business hub and keep pace with the global competition. We agree and support our national operating philosophy to grow the cake so that we have a bigger slice and piece all around. In the same vein, we value and support tripartism, inclusive growth and working together with the Government to ensure we continue to strengthen the Singaporean Core.
I have been a strong advocate of strengthening the Singaporean Core and robust policies in this space since 2011, just like many of my fellow Labour Members of Parliament and PAP Members of Parliament in this House. And I am heartened that in my past 10 years of lobbying, many of these measures from advisories, guidelines, policies, programmes, regulations, have been put in place by MOM, with strong support of our tripartite partners and even our economic agencies such as the Monetary Authority of Singapore and the Economic Development Board to better protect and support our Singaporean workforce and provide them with a fair and level playing field in the job market.
I, therefore, disagree with hon Member Mr Leong Mun Wai's Motion, which suggests no concrete action has been taken.
Through the NTUC-SNEF PME taskforce engagements, we have heard ground sentiments on a plethora of issues and challenges faced by Singaporean PMEs, more than 9,000 of them, all Singaporeans, in the past eight months. PMEs are most concerned with the lack of job security amidst this outlook, and their need for more support in employment and training opportunities. This is especially so as the Singapore economy continues to experience ripple effects and challenges of the COVID-19 situation and other factors like technological advances and digitalisation. These challenges seem to impact our mature PMEs aged between 40 and 60 more, as they attributed their age as the key reason for their plight. Mature PMEs have voiced concerns about displacement, disruption and the issue of competition in a globalised and fast-changing economy.
Fortunately, anecdotes from PMEs who shared how they have encountered instances of EP holders being employed for jobs that Singaporeans can take on are a minority and confined to certain sectors and companies, and not widespread.
In the converse, I also hear of positive sharing of human resource (HR) practitioners and employers taking great pains and significant efforts to convince their overseas headquarters to consider and recruit Singaporeans for positions in the region and in Singapore. I sincerely thank these HR practitioners and enlightened employers for believing in Singaporeans and doing their part to ensure that Singaporeans have a fair chance and shot at job opportunities.
In our engagements, our PMEs understand the need for a foreign workforce to complement the local workforce. They do not advocate the closing of borders to foreigners, but they want resolute actions taken against employers who are recalcitrant in their hiring policies, to protect our locals from discrimination. They also hope to pick up the in-demand skills to take on the new jobs.
The reason why some of our workers experience discrimination is not due to foreign competition, but due to a small proportion of egregious companies and employers who are out to exploit the system. While we take cognisance that many measures and policies, including the Tripartite Guidelines on Fair Employment Practices (TGFEP), the Fair Consideration Framework (FCF), Triple Weak Scrutiny, tightening of requirements for S Pass and EPs, including the formation of the Tripartite Alliance for Fair and Progressive Employment Practices (TAFEP) and so on, had been put in place over the years to minimise unfair hiring and workplace practices.
I am glad to know that we are constantly asking ourselves what more needs to be done to weed out the small proportion of egregious companies out to exploit the system. We need to look at ways to ensure that local PMEs receive fair opportunities and treatment while maintaining competitiveness in the economy.
On this note and for these very facts and circumstances, I, therefore, cannot accept the Motion standing in the name of Non-Constituency Member Mr Leong Mun Wai.
I am glad that the Government has responded to our advocacy efforts and calls with the setting up of the Tripartite Committee on Workplace Fairness, and Prime Minister Lee Hsien Loong in his National Day Rally addressed and updated that we will look at fair employment guidelines becoming law and the set-up of a new tribunal to address workplace discrimination by those few black sheep. These are big and bold moves, and I think it is important for us to spend time engaging the tripartite partners and stakeholders before implementation.
Many union members, workers and PMEs I have spoken to are heartened by the announcements and acknowledged that these are the right steps taken to punish those errant employers and correct discriminative hiring policies and practices. They are positive that this will send a clear message against workplace discrimination and eradicate unfair hiring practices.
NTUC will represent the voices of our workers and PMEs, and contribute actively in the Tripartite Committee on Workplace Fairness (TCWF) to look into improving workplace fairness through both legislative and non-legislative options and consider measures to tackle workplace discrimination.
Beyond legislation, we will need to continuously raise HR standards, to further enhance our HR practices and capabilities so that practices and processes are more transparent. HR practitioners, especially those in the recruitment functions, play a vital role in ensuring that the companies adhere to the employment legislation and regulations to improve compliance with fair employment practices. They are also the advocates for the recruitment of Singaporeans in positions within their companies. It is, therefore, important we move towards increasing certification and accreditation of HR practitioners, as well as providing shared HR services for SMEs.
We will also continue to surface recommendations to strengthen the Singaporean Core and this will include: first, enhancing the EP application review process by considering a range of factors beyond the individual applicant’s education, qualification and salary; second, facilitating skills transfer from foreign specialists to local PMEs through skills transfer programmes. These are suggestions we have raised in the past many years and I am glad the Leader of the Opposition has also weighed in on this; and third, strengthening TAFEP to take decisive action against errant employers who pay lip service to the Fair Consideration Framework (FCF).
Finally, beyond the above recommendations, it is important for the tripartite partners and our workers, including PMEs, to invest even more in training and skills upgrading. For a start, employers and businesses can partner NTUC and the Labour Movement in this journey. In this age of disruption, digitalisation, transformation and the next normal, the tripartite partners need to stand even more united together to support, enable and ensure our workers stay ready, relevant and resilient: ready with the new skills, relevant to the new jobs and resilient to the new changes. This is so that we can better weather any storms and pivot and transform when curved balls are hurled at us.
Mr Speaker, NTUC will continue to champion our workers’ interests to ensure that there must be fairness and zero tolerance for discrimination of any kind at the workplace and a level playing field for our Singaporean PMEs, including mature PMEs. In the same vein, we need to see that they are adequately protected, have access to quality jobs and are equipped with the relevant skills to prepare for the future economy.
I, therefore, support the Motion by Minister Lawrence Wong which acknowledges Singaporeans' anxieties and for the Government to take action to manage the population of manpower, ensuring fair treatment of workers by employers and investing in skills upgrading. This will ensure Singaporeans stay employed and employable and their lives and likelihoods are secure and improved.
Ms He Ting Ru.
Mr Speaker, while today’s Motion is ostensibly about jobs for Singaporeans, I believe an inescapable part of the conversation is about immigration and its impact on our economy and society.
Immigration is a topic that is complex and sensitive, and we must, as a society – together with the Government – learn to have difficult conversations with each other without vilifying those who may have a different opinion from ours. Too often do we hear cries of "xenophobia" and "racism" being thrown at those of us who may raise, often legitimate, concerns about the changing nature of our social fabric or the strain on our labour markets. And on the other hand, those who try to speak up in defence of greater international movement of labour and trade are labelled as sell-outs and as "opening the floodgates" at the expense of hardworking Singaporeans.
This polarising approach is neither healthy nor productive, and I believe all of us must take a more nuanced and open-minded approach.
Singapore is a young country. And immigration has been a fundamental part of our story for a very long time, from our founding as a free port in the 1800s to our transformation into a modern city in the 1980s. Immigrants have and will always continue to shape our story. We are the country we are today only because of our embrace of diversity and different histories, and this has to continue.
Indeed, for most of our pre-Independence history, immigration exceeded natural births. After Independence, the Government first tightened immigration, then implemented a policy that uses migrants to fulfil a certain role in our labour force as one of the economic tools to drive the growth of our economy.
I do not think that many will deny that this is a complex and difficult balance to get right. This is because the consequences of immigration are often felt very personally by individuals. These changes in the make-up of our society cut at our very daily experience: who we see in our communities every day, the languages we hear around us and the sheer numbers of "others" we have to share our already crowded public spaces with.
Above all, the perception of the impact of immigration on jobs. This is especially against the backdrop of unprecedented disruption caused by the shift to, amongst others, digitalisation, Industry 4.0 and a re-balanced normal, all of which have been exacerbated by COVID-19.
On the other hand, the promise is that immigrants bring skills and a diversity of experiences, and often take up the slack in our labour markets. However, these benefits brought about by our foreign manpower policy tend to accrue more generally and are less directly experienced by individuals. The argument that more trade, more foreign workers and more enterprise equals better and more jobs for Singaporeans is less visible and is not always immediately evident.
Tensions are felt when this "grand bargain" is not one that all Singaporeans have bought into.
This could be especially hard to bridge because many come to the debate with views that are seen through a personal lens, one that could bring biases due to personal life experiences, which would, in turn, lead to a very generalised view over our foreign manpower and immigration policies. And citizens may thus approach the matter without the required nuance or balance that academics or policymakers have the luxury to adopt.
Our citizens are, after all, still feeling our way through how to respectfully debate such sensitive topics. It is hardly right then that we dismiss all these views and concerns as narrow-minded and xenophobic.
The challenge to citizens to accept and accommodate more people into our communities, with the different histories, languages, accents, ways of life and cultures they bring is not always an easy one for a society to accept and it is imperative on all of us to play an active role to manage and mitigate any potential fall-out.
Indeed, we have seen how our public debate around immigration and foreign manpower has changed over the last decade. In 2013, during the debate around our Population White Paper with the now "iconic" 6.9 million figure, then Deputy Prime Minister Teo told this House that “the growth in foreign workforce, total population, infrastructure and housing are not aligned", and accepted that it "contributed to the anxiety, crowdedness, integration problems and the daily inconveniences faced by Singaporeans today".
Additionally, we must be mindful of how world events can shape the conversation. It has also been pointed out that the current era we are living in has been an unprecedented one which became hyper-globalised, with its roots in the 1980s, when Reaganism and Thatcherism took off. Movement of people, goods and services, has become much easier, and, together with the growth in the middle classes in massive and emerging economies, such as China and India, has had an impact on our domestic markets and society in general.
But it must not be forgotten that globalisation has slowed down since 2010 and the trend of increasing globalisation is not a linear process, as history has, indeed, taught us. Our reliance on foreign labour, whether skilled labour or the low-wage migrants we see taking up the slack as carers in our medical and social systems, as live-in help for households, and also for building sites, may prove to be our Achilles heel if we assume that we can simply turn on the tap for these roles to be fulfilled at any time, and that the workers will come in. Our policies, including our FTAs, need to be sensitive to this and not be blind-sided by any reverses in globalisation trends which are currently threatening to be the case.
This is especially important in the current era, where we see the rise of nativist politics and governments from around 2016, as evidenced most famously by the Brexit vote and election of Donald Trump. Too easily have immigration and migrants become convenient bogeymen, just like CECA and our FTAs appear to have done, often against all data that suggest otherwise. Singapore is vulnerable to such dangerous sentiments, and the shocks caused by COVID-19 and the anxieties wrought by a changed world only add to the fears of our people and need to be addressed through more sensitive policies and engagement with the populace.
Now, more than ever, there needs to be humility in the approach taken by our leaders to such matters, and the listening ear of the Government needs to be attuned to and prod at the genuine concerns behind why some of us feel the way we do so strongly; sometimes, in the face of endless explanations that our assumptions or understanding of these policies and FTAs are flawed. Rather than immediately take issue with the speaker, we could understand that lived realities on the ground could be very different to ours and we should pay attention to whether these views and experiences could reveal potential blind spots in the implementation of our policies.
We must also remember that widening inequality is as dangerous as any threats to our economy, as this only drives fears relating to the quality and quantity of the jobs available to Singaporeans, and can lead to anger and resentment against any incomers who are perceived to be better off and to have taken our rice bowls.
Widening inequality thus leads to increasingly polarised politics, which has a certain irony, as data suggest that it is technological advances, which are, in turn, exacerbated by the failure of politics and Government policies to address these trends, rather than globalisation trends, that drive how equal a society is.
Having said all of this, what else can we do to address the concerns and tensions highlighted above? Two big areas where we can work on more are: first, building more, stronger and meaningful bridges between immigrants and citizens; and second, embracing a strong, transparent and data-driven culture.
In order to better understand one another, much effort needs to be expended by both groups, immigrants and citizens alike, in order to have these immigrants properly integrated and accepted into society. There needs to be mutual understanding, tolerance and, finally, meaningful relationships between these two groups to minimise the pitfalls associated with "the other" and also make real the benefits and increased richness to community life that our migrants can bring to our country.
To this end, it is notable that the European Programme for Integration and Migration states that this is, quote, "a two-way process of adaption by migrants and host societies, and, of identification and respect for a core set of values that bind migrants and host communities in a common purpose", unquote.
I think this approach needs to equally apply to incomers who choose to sink roots and take up a pink IC, and those who may be here on a more temporary basis.
While I note that there are initiatives organised through the People’s Association, what has been less clear to the public is whether the organisation itself is seen to be there primarily to serve partisan interests and, more importantly, how successful these initiatives have been.
Judging by the recent episodes that have come to our national consciousness, both online and off, towards foreigners, this would suggest that we need to redouble our efforts in bridging any gaps that remain between the groups. How can we, together, in a way that is accepted by both sides, come up with a common core set of values that each of us respects, that would bind us together, to lessen any mistrust and negative feelings that may be currently amplified by uncertain economic times and the fear for one’s livelihoods?
I do not think this is something that Government leaders and associated bodies, such as the People’s Association, should ram down the throats of a skeptical populace.
Perhaps what is lacking is the buy-in from both sides that it is not only important for Singaporeans to adapt to having "foreigners" in our midst, but that our foreign friends must also play their part in wanting to integrate into the communities they are in. Efforts need to be made to learn the norms within Singapore society, whether it is how we "chope" our tables or the inclination to queue wherever we go. This does not mean losing the richness of the culture or practices that come with one’s history; Singapore will continue to embrace diversity as being at our centre.
Indeed, I do see examples of some immigrants reaching out to us as we conduct our ground work and expressing their desire to volunteer, to work with us and give back to the communities that they live in. It is heartening, especially when we note that they do not do so because they are after priority queue numbers for school places for their children or some other benefit, but because they truly believe in doing something to further the communal spirit that should overcome differences in our backgrounds.
I only wish that we see more of these, and that we continually look for ways and means to improve the situation, to allow more ground-up, non-Government-directed avenues for interaction and understanding between citizens and immigrants, allowing voices to be heard from both sides.
That said, we also need to have a no-excuses approach to discriminatory, prejudicial behaviour and against those who seek to sow discord between immigrants and our host communities. Both groups deserve to have their rights protected stringently. Just as the law comes down hard against those who make offensive and aggressive gestures against foreigners or those from different backgrounds, we also need to ensure that Singaporeans do not face discrimination at the workplace and I hope that the welcomed but long overdue anti-discrimination legislation announced will be strong and robust enough to achieve this.
Finally, I cannot stress enough the importance of a transparent, data-driven approach to immigration and our foreign manpower policies. At the moment, decisions on whether or not to grant citizenship, permanent residence and various work passes are made by ICA and MOM respectively, but no reasons are ever given. Likewise, data relating to our resident labour force often lumps Singaporeans and Permanent Residents together.
While the Government may have reasons for doing so, the best medicine against misinformation, cynicism and resentment is cold, hard data, and to build a transparent culture around the data relating to our policies.
We also need to understand that residents who are married to foreigners or who have foreign family members are often left wondering and speculating about why their family member's application for Long-Term Visit Pass (LTVP), permanent residency or citizenship was rejected and what they could do to change the outcome. They would naturally compare this against the number of immigrants moving into the neighbourhood who are granted the immigrant status that they have been applying for – some for decades – sometimes without any ostensible familial ties to Singapore Citizens. Is it any wonder that resentment would build up?
The Government thus needs to take the lead in this by being proactive about the type of data that is shared: from information about our workforce broken down into Singaporeans and Permanent Residents, to providing clear pathways to citizenship for those who are already part of our Singaporean families and communities.
Data on these hot-button topics should be published and shared regularly to allow citizens to understand the impact of Government-led policies on the shape of our economy and society and to allow our academics and commentators a fact base to start with.
A proactive, transparent and data-driven approach to the conversation around foreigners might not convince every cynic but it would go a long way to quieten any unfounded claims, leave less room for conspiracy theories to flourish and give short shrift to those who seek to sow discord amongst us and seek bogeyman, a prime example of which would be CECA and FTAs.
Mr Speaker, in Chinese, please.
(In Mandarin): [Please refer to Vernacular Speech.]: Mr Speaker, Sir, while the Motion today is about jobs for Singaporeans, this issue cannot be divorced from immigration and foreign workers. Such discussions will inevitably stir up strong reactions in today’s Singapore society. Real concerns from some Singaporeans may well be seen as xenophobic or even discriminatory.
I think a few points can serve as starting points for the discussions.
First, we must acknowledge that with globalisation, Singapore, like many other countries, faces the problems of widening income gap and rising social tensions in tandem. Second, these phenomena have, indeed, intensified the friction between the local and foreign workers. In many ways, these problems are avoidable. The key lies in whether Singaporeans, foreign workers and even the authorities are making an effort to integrate them into the society.
Faced with challenges brought about by globalisation, we must cast aside our prejudices and discrimination, especially in the workplace. In this respect, anti-discrimination legislation in Parliament is a right move. If we do not face these negative sentiments squarely, misunderstandings may well become deeper. In addition, the authorities and decision-makers should be more proactive in information disclosure, based on the principle of information transparency, so that we can engage in realistic discussions, avoid misunderstandings from happening or deepening and prevent social tensions from escalating unnecessarily.
(In English): To conclude, immigration and foreign manpower have been heated issues in Singapore for many, many years. CECA and FTAs are but the latest iterations of the debate.
This is a difficult, complicated topic and an issue that many other nations continue to struggle with. We must, therefore, create a strong ecosystem for conversation, interaction and disagreement on the topics at hand. We must say no to a continued top-down approach to immigration where we are told what is good for us.
The danger is that, over time, resentment continues to build, and anti-immigrant sentiment spills over into nasty incidents where there is a heavy element of racism and xenophobia that also affect our Singaporeans as well, such as the unfortunate events that we have seen in recent months.
I hope the Government will take this as an opportunity to rethink the way these topics have been managed and discussed so far and, instead, lean more into enabling conversations on the ground to change hearts and minds rather than continue to debate what is best for Singaporeans and dictate our story for us.
Mr Speaker, with your permission, I beg to move amendments to the Motion proposed by the Non-Constituency Member of Parliament from the PSP. [A copy of amendments handed to Mr Speaker.]
The Member has moved to propose the amendment as follows:
To delete the words "and the provisions on Movement of Natural Persons in some free trade agreements like the Comprehensive Economic Cooperation Agreement".
And replace them with a similar paragraph as what they have proposed earlier to the other Motion, which is "by proactively releasing information on jobs and employment prospects of Singaporeans and the costs and benefits of free trade agreements and foreign worker policies, with a view to formulating better policies to ensure Singaporeans secure good jobs in Singapore and are not disadvantaged when seeking employment."
I am of the view that the last paragraph is similar to what you have proposed in a previous Motion and we should confine that to that Motion so that Members can vote accordingly.
Your proposal to delete the words "and the provisions on Movement of Natural Persons in some free trade agreements like the Comprehensive Economic Cooperation Agreement" substantively changes the tone of what that Motion was about in the first place, which is being debated.
So, in my view, the proposed amendments would not be relevant. So, we will not admit them. Let us proceed.
Okay, so be it. Thank you, Mr Speaker.
Mr Leon Perera.
Mr Speaker, Sir, I support the amended Motion put forth by the Leader of the Opposition, Mr Pritam Singh.
Sir, free trade agreements, or FTAs, are important for our economic development and, hence, the well-being of our people. FTAs are always a compromise. As in any negotiation, we give something away to get something back. Singapore has import duties on hardly any categories of physical goods. So, we have little to give away unless we open up our services sectors or our labour market further.
I am glad that the Government has clarified that it maintains an intent to continue maintaining close control over the granting of foreign work passes without any FTA provision diluting that and this is a commitment that this House will, I am sure, hold this Government and future governments to.
Because FTAs are a negotiated compromise, at any one point in time, it is necessary to review these agreements from time to time to ensure that what we have given away is not proved too much and what we are getting back is as good as what we expected. Therefore, I echo the calls made by the Leader of the Opposition and my colleague, Member of Parliament for Sengkang, Ms He Ting Ru, to regularly study the impact of our FTAs, to engage research to quantify the net economic benefit over costs.
Furthermore, it is vital that the Government engages our SMEs when negotiating FTAs and FTA reviews. I raised this at MTI's Committee of Supply (COS) in March 2020 and through a Parliamentary Question in March 2017. The reply stated that there were roundtables and engagements conducted but numbers were not given.
Anecdotally, some SMEs on the ground do not feel that their views factor substantially into FTA negotiations, which, they perceive, may be conducted more from the perspective of creating incentives for MNCs to hub in Singapore to invest abroad.
I believe more can be done to gather feedback from SMEs to bring into FTA negotiations, something countries like New Zealand, when defending its dairy industry in the TPP negotiations, for example, seem adept at.
Moreover, the Government should regularly assess local FTA utilisation rates and perceived benefits to see if the other country is delivering on its market access commitments. FTA utilisation rates by SMEs should be published to help all stakeholders assess our efforts in public debate. Many SMEs do not fully utilise FTAs when they go abroad, for reasons that range from lack of awareness to lack of administrative bandwidth. More can be done to make these FTA benefits visible and usable by our local firms, for instance, the idea of a one-stop whole-of-Government portal, which could allow SMEs to transact with the Government and utilise Government schemes that I have spoken about in this House in the past. Such a portal could be used to allow SMEs to gain visibility on FTA benefits in different countries and enable them to transact to realise those benefits online.
At this stage, Sir, I declare my interest as the CEO of an international research consultancy that conducts studies related to FTAs and SME development, among other topics.
Mr Speaker, Sir, I shall devote the rest of my speech to the anxieties that exist around the granting of work passes to foreigners.
Sir, in the decades after Singapore's Independence, there was no mass anxiety about the role of foreigners in our economy, at least comparable to what we see now. It was widely recognised that they play a useful role. The same is not true of every country in the world. Singapore's attitude towards the presence of foreigners and fixed-term stays and those who choose to make Singapore their permanent home used to be more liberal to my mind than that you see in some Asian countries I can think of. That culture was shaped perhaps by around 200 years of history as a free port and open trading economy. The sense then was that the rising tide of liberal economics would lift all boats.
This is no longer the case. There is widespread anxiety, frustration and angst about the role of foreigners in the economy, as all the Motions put forth in this House today acknowledge to some degree. I want to share, Sir, two stories about how these things came home to me.
Firstly, I met a Singaporean delivery rider in full uniform at a coffee shop in the Serangoon ward of Aljunied GRC who told me, at length, with tears in his eyes, that he was laid off from his job as an aerospace engineer whereas some foreigners at his company were not, and he is now struggling to keep his family afloat.
Secondly, I met an SME business owner who said that she cannot find Singaporeans to do trades jobs. So, she is frustrated at the curbs on foreign manpower and, asked that if I knew of Singaporeans who wanted to do such jobs, could I give her a list of their names.
Mr Speaker, Sir, these concerns revolve around three "Ts".
Firstly, a deficit in trust, the first T; the sense that some Singaporeans have that they face some degree of discrimination in the job market by foreign talent hiring their compatriots.
Secondly, a deficit in transferability, the second T; the sense that there are poor pathways for Singaporeans to learn skills from foreign talents in advance. This current mood is very different from the sense people had in the 1970s and 1980s, with foreign investments from the US, Europe and Japan. To my mind, back then, there was a palpable sense that skills and know-how were being transferred by foreign companies and foreigners to locals through in-house training and foreign-Singapore joint training institutes, for example.
Thirdly, a deficit in transparency, the third T; there is angst about why foreigners seemed to leapfrog Singaporeans in some contexts in spite of our much-vaunted education system, even though those foreigners sometimes come from countries with less recognised education systems.
I should say that a transparency deficit is also felt by another group – local business owners. They wrestle with the issue of hiring talent and often say that Singaporeans do not want to do trades jobs. So, why is the supply of foreigners for those jobs being curbed?
Sir, one antidote to the trust deficit is anti-discrimination laws, something that the Workers' Party has championed in its General Election 2020 manifesto and in this House. I am glad that the Government is now moving in this direction.
One antidote to the transferability deficit is fixed-term EPs, the suggestion I made in this House previously in which the Leader of the Opposition alluded to. These would be foreign work passes granted for a fixed term with the understanding that the job has to be localised in that term and the pass, as a default, would not be renewed, unless the employer can demonstrate strong extenuating circumstances to appeal for a renewal. This differs from the current EP system, where many employees assume that they can renew their EPs and there is no assumption that the EPs would definitely not be renewed as a default. Sir, to be sure, we are not arguing for all EPs to be made fixed-term, but for some of them to possess this feature. Fixed-term work passes should be one tool in our toolkit not just to advance transferability of foreigners' skills towards locals.
There are other tools that can be used to advance transferability that Workers' Party Members of Parliament in this House have argued for, such as stimulating cross-border remote working internships for our students and young adults with cutting-edge multinational corporations abroad which were not present in Singapore, for example.
As for the antidote to the transparency deficit, the key is not just more public dialogues and communication between Government and citizens, vital though that is; the key is to set out long-term goals and clear policies to advance those goals. Let me expand on this issue of transparency.
Sir, many Singaporeans are pained and confused about our foreign talent policy because they do not understand the rationale, the mechanics, the ends and the means. One major area where this angst is being felt is when it comes to education. Singaporeans do not understand why the Government keeps praising our education system but, in some employment contexts, foreigners seem to dominate or have a large share of the better-paying jobs. Has our education system groomed us with the wrong skills and attributes? Sir, we need to interrogate the gaps in our education system that contribute to these aspects of our employment landscape and address them aggressively. My parliamentary colleague, Mr Gerald Giam, will elaborate on what needs to be done on that front.
For the remainder of my speech, I will speak about two areas of Government employment policy where the public, I sense, feels angst from a lack of transparency and whether the system is working in their best interests. And these two areas actually map onto the two anecdotes that I shared earlier.
Firstly, the notion that hiring foreigners is necessary to create good jobs for Singaporeans, even if the foreigners constitute a high share or a significant share of the better-paying jobs. I shall call this the numerical multiplier argument. Secondly, the subject of trades jobs that SMEs perceive Singaporeans no longer want to do. I will call this the trades jobs problem.
Firstly, the numerical multiplier argument. Mr Speaker, Sir, the Government has articulated this argument before inside and outside this House. If I were to summarise it at the risk of oversimplification, it is the view that we do not have enough Singaporeans and not of the right skills and talent to do all the cutting-edge economic activities we want to do as a global hub city. So, we need to import foreign talent and, if we do that well, this creates good jobs for Singaporeans. We try to upskill and upwage Singaporeans. But if foreigners account for a large share of the better-paid jobs, it is still okay because Singaporeans are in good jobs that they might not have if the foreigners were not here. So, Singaporeans are absolutely better off, even if, sometimes, they may feel relatively worse off in the employment hierarchy. Or to put it another way, this argument is saying if Singaporeans want to always hog all the better-paying jobs, we will end up poorer in purchasing power terms. This argument stands, by the way, on solid ground in the field of political philosophy. It reminds me of the Rawlsian theory of justice I studied as an undergraduate. According to the philosopher, John Rawls, in a seminal work "A Theory of Justice", inequality could be justified if that inequality causes the least well-off person in a society to become better off in absolute terms. Honestly, Sir, there is much to be said for the numerical multiplier thesis and it can be found as the subtext to employment policies in many countries and cities.
But to delve deeper into the empirical reality, what is of concern to many Singaporeans about this argument are a few things. One is the pathway to skills transfer, another is fair employment practices in a foreigner-heavy workplace. I have spoken about these already. But there are deeper and more subtle problems with the numerical multiplier argument. Or I should not say problems; maybe questions. A large population of foreigners to create jobs for Singaporeans places burdens on our scarce resources of land, healthcare capacity, road capacity, public transport and so on. It also runs the risk of entrenching work cultures that disadvantage Singaporeans in the longer term, especially if the foreigners start off from a higher skills base in a new industry. Initial endowments of resources, like skills, do weigh heavily on ultimate outcomes downstream. Being very reliant on foreign labour also means that we are vulnerable to global events that may make these foreigners less willing to come and work here one day. And that day may not come so soon, but it could come in our children's time, in our grandchildren's time.
So, how do we get our workforce profile towards a ratio of foreigners and locals that would better address these issues? Sir, I would like to suggest that the EDB and our economic agencies, together with our Institutes of Higher Learning, work in sync to do a few things that would optimise this ratio, that would create good well-paying jobs for Singaporeans while managing the size of the population of foreigners and, hence, overall population pressures.
Firstly, can we attract foreign direct investment projects that are better matched to existing skillsets of Singaporeans or skillsets that Singaporeans can easily acquire?
Secondly, can we catalyse continuous education and training platforms to train Singaporeans in new skills ahead of demand? By "ahead of demand", I mean to attract Singaporeans to train for skills in industries that are nascent, that are newly emerging, confident that the Government is working with investors to groom and build those industries using all the tools in the toolkit. JTC and EDB building physical infrastructure ahead of demand was a key factor in our industrial success in the 1960s. The key to our Industry 4.0 success in the 21st century would be catalysing soft infrastructure, that is, skills, ahead of demand.
Thirdly, tie foreign direct investment incentives to a number of fixed-term EPs to ensure Singaporeans' pathway into new industries, as discussed earlier.
Fourthly, can we examine if we need to expand University education places for locals in disciplines necessary for future industries, thus managing the need to import foreign manpower with degrees from, in some cases, less highly ranked universities than our local ones? This ties to another Workers' Party manifesto point on expanding University capacity to 50% of the cohort size.
Lastly, Mr Speaker, Sir, I want to speak about trades jobs, that it is said, Singaporeans do not want. By "trades jobs", I mean carpenters, plumbers, highly-skilled construction workmen and supervisors, air-conditioner technicians and so on and so forth. There is a huge transparency deficit here with our local business owners.
In the decades after Independence, many of these trades jobs were done by Singaporeans. But now, many SME owners believe that Singaporeans simply do not want such jobs. If this is true, it could be due to the overall growth of the economy and population base coupled with our low total fertility rate. It could also be due to the expansion of other more attractive jobs in other sectors. There is also the fact that many of our Polytechnic and ITE graduates as well as older PMETs are going into gig work rather than a trade. Many SME owners are adamant that even if they paid more for these jobs, Singaporeans do not want to do them.
No ifs, no buts. One of them told me that when he attends construction training courses as a guest speaker, the only Singaporean trainees there are those with white hair. Yet, on the other hand, from a totally opposite perspective, another older gentleman I met on a market walkabout said that he was gainfully employed in the construction industry as a supervisor in his 20s and 30s. But now, all the jobs in this line have gone to foreigners. And even though he is willing to take a 50% pay cut from his last drawn construction industry pay, he cannot get a job. So, he became a private hire car driver. How do we reconcile these two different and seemingly contradictory perspectives?
Sir, the Workers' Party has supported moves, such as the past tightening of DRC quotas, to curb over-reliance on foreign manpower. However, that cannot be the only solution. We need to deeply address the reasons why SME business owners say Singaporeans do not want to take up trades jobs. Quotas alone should not be the solution. To move more Singaporeans into trades job sustainably needs us to go beyond quotas to tackle a few things deeply. And here I move to my suggestions.
I have about six suggestions. I am not saying that these ideas are not already being looked at or have not been attempted. But, clearly, the results are not yet there and we are far away from success in outcomes rather than just success in efforts.
Firstly, let us implement an across-the-board minimum wage, as we have called for, and PWMs to ladder and upgrade wages on top of that. We do need to accept that prices have to rise as a result to ensure that businesses can survive.
Secondly, implement job redesign to upskill these jobs with state support for productivity-enhancing investments in a more ambitious way than has been done thus far, with both carrots and sticks. For example, can we introduce harder productivity conditions for Government contracts? And there should be clear long-term timelines for phasing out low productivity work, not ad hoc short-term changes to foreign manpower quotas done in an unpredictable fashion. Sir, our low construction productivity, to take one sector as an example, has not brought low construction costs. So, Workers' Party has argued before, with the right policies, there is no reason why we cannot attain developed country productivity in trades jobs to justify higher pay for those jobs.
Thirdly, investigate and fix negative non-wage characteristics of these trades shops. For example, do employers provide adequate equipment to ameliorate the physical downsides of such jobs, like proper gloves, boots, tools? Are trades jobs persons given proper break times and reasonable expectations on hours and working at short notice? Are they treated by bosses with respect? Are they given enough paid leave? These should all be studied and addressed. As I argued in this House a few months ago, no Singaporean will take a trades job at high pay if he or she knows that they will be treated with disrespect and have to put up with awful conditions. They may prefer to do gig work or a lowly-paid office job that attracts less pay with all the attendant dangers of obsolescence from technology that those kinds of jobs bring.
Fourthly, we need to enhance the prestige and standing of trades jobs. I do not have the luxury of time to elaborate on this particular point during this speech, but more can be done to try to shift expectations and attitudes. It is worth bearing in mind that trades jobs are highly respected in many countries around the world. I think continental European countries and Japan are examples that spring to mind.
Fifthly, we need to create pathways for some good trades persons who are foreigners to become citizens in small enough numbers, not to suppress but to supplement locals moving into these sectors, and then nudge those new citizens to transfer skills to more locals in the ways we have spoken about. Are such trades persons given the opportunity to become citizens now even if they have no university degree?
And sixth – and this is another call the Workers' Party has made and the Leader of the Opposition has alluded to – we need to measure underemployment so that we can tackle it. This was a theme of a speech made by my party Chair Ms Sylvia Lim some years ago. Some gig jobs face long-term risk from technology. Today's underemployment can be tomorrow's unemployment. Can we shift local Singaporeans from some of these at-risk gig jobs to redesigned, revamped trades jobs?
In conclusion, Sir, every country struggles to find the right balance between foreigners and locals in their economy and that balance changes from one era to another. In other developed countries, one often finds a more relaxed and liberal attitude towards foreign talent in big cities like London and New York, where even those in relatively lower-income trades jobs, like taxi drivers and restaurant staff, have often benefited from the rising tide that foreigners contribute to. But go to the towns and cities where living standards have stagnated or nosedived, like some of the opioid-ravaged midwestern towns in the US, and you sometimes find bitterness towards foreigners and the cancer of racism, together with the far-right, nativist politics that go along with that.
With the right policies, goals and mindsets, Sir, I believe Singapore can return to what it was in a previous era: a country of citizens who are confident enough about their present and their future to welcome foreign talent that genuinely complements our strengths and adds value to our lives.
Leader.
Mr Speaker, as there are still quite a number of speakers who have not yet spoken, I shall need to move an Exempted Business Motion.
Please do.