Employment & labour

The Singapore Parliament debated the 2014 Budget, with the $8 billion Pioneer Generation Package to support seniors' healthcare needs as a central highlight. The debate focused on sustaining economic restructuring and productivity growth, with extensions to schemes like the Productivity and Innovation Credit to support businesses. Discussions also covered strengthening social safety nets, particularly healthcare affordability, and calls for more support for low-wage workers and SMEs through measures like the Progressive Wage Model.

• The government is exploring new source countries like Sri Lanka and the Philippines for skilled construction workers to meet infrastructure needs and boost productivity, not to replace but supplement existing sources from China, India, Thailand, and Bangladesh.
• There is a deliberate policy shift toward quality over cost, including higher levies for basic-skilled workers and potential minimum quotas for higher-skilled workers, to encourage a smaller pool of more experienced and better-paid workers.
• The government is not reducing recruitment from existing source countries but is extending employment periods for experienced workers to retain talent while exploring additional countries with higher labor costs if needed.

• Mary Liew asked about measures to ensure immigration officers at checkpoints have sufficient rest breaks to prevent fatigue from long hours.
• Teo Chee Hean explained that ICA officers work in shifts of seven to ten hours with meal and rest breaks, and an eight-day cycle with 42 to 44 total hours.
• Supervisors monitor officers for fatigue, overtime is regulated, and fatigue management advice is regularly provided.
• Manpower is reviewed periodically, and the last Organisational Health Survey in 2011 did not highlight fatigue as a concern.

• The Deputy Prime Minister highlighted a stronger than expected fiscal surplus for FY2013, attributed to cyclical factors, and outlined a cautious economic outlook with expected growth of 2% to 4% in 2014, emphasizing the need for productivity-driven restructuring and innovation to sustain wage growth.
• Budget 2014 introduces significant social measures, including the Pioneer Generation Package to address healthcare costs for seniors, enhanced subsidies for low- and middle-income households in education and healthcare, and increased CPF contributions for retirement adequacy.
• The Budget extends and deepens support for business transformation, notably through the Productivity and Innovation Credit scheme, targeted ICT adoption programs, and initiatives to boost financing for SMEs and internationalization, while implementing measures to improve productivity in the construction sector.

• Assoc Prof Tan Kheng Boon Eugene asked the Acting Minister for Manpower under what circumstances employers' CPF contribution rates would return to parity with employees' and whether this could be expedited for retirement adequacy.
• The Acting Minister explained that current CPF rates are 36% (20% employee, 16% employer), and raising them further could impact business costs and employment, so any changes must be calibrated and gradual, with other measures like extra interest and Workfare also addressing retirement adequacy.
• Assoc Prof Tan suggested an incremental increase or managing expectations that rates may never return to parity, noting CPF contributions are a main source for retirement savings.
• The Acting Minister emphasized that while employees prefer higher employer contributions, business competitiveness and employability remain key concerns, and reviews will consider overall retirement adequacy beyond just CPF rate changes.

• The Ministry of Manpower does not directly monitor hiring decisions but uses the Fair Consideration Framework to ensure companies advertise jobs locally and scrutinizes firms with low Singaporean PMET ratios, while relying on existing laws to address unfair dismissal.
• Foreign workers complement the local workforce, and policies like adjusting S Pass and Employment Pass thresholds aim to discourage firms from favoring foreigners for cost reasons while keeping the economy healthy and job-competitive for Singaporeans.
• Singaporeans can report suspected discriminatory practices to TAFEP for investigation, and the government supports job readiness through education, training programs, and job-matching services like CaliberLink.

• The Prime Minister’s Office provided an update on the Population White Paper’s implementation, highlighting slowed population growth, tighter foreign worker policies, and infrastructure improvements.
• Emphasis was placed on enhancing the Singaporean core through family support schemes, economic restructuring, and fair employment practices while managing foreign workforce inflows.
• The Minister acknowledged the need for better integration of immigrants, outlining efforts across schools, employers, and community groups to foster social cohesion and mutual understanding.

• Foo Mee Har asked about the effectiveness of WorkPro in promoting progressive workplace practices and the increase in Singaporeans on flexible work arrangements since its launch.
• Tan Chuan-Jin stated that WorkPro, launched in 2013 until 2016, helps employers build capabilities in age management, job redesign, and work-life practices to attract and retain workers.
• As of December 2013, 84 organizations approved for the Work-Life Grant under WorkPro will benefit over 8,000 employees with flexible work arrangements.
• The government is collaborating with tripartite partners to promote flexible work arrangements, with the Tripartite Committee on Work-Life Strategy following up on feedback and planning new initiatives.

• Chen Show Mao asked the Minister for Social and Family Development for age breakdowns of Work Support Scheme participants in 2012 and 2013, average duration on the scheme, and how success is measured via job retention rates.
• Chan Chun Sing presented data showing the Ministry tracks job placement rates, with about three in four unemployed beneficiaries placed in jobs from 2008 to 2012.
• The Ministry also reported that around 65% of case-managed beneficiaries saw an income increase during that period.
• The response did not provide the specific age group numbers or average duration figures requested by Chen Show Mao.

• Gan Thiam Poh asked if the Ministry can allow all government agencies to grant building contractors up to six months of time extension without imposing liquidated damages due to tightening foreign labour.
• Khaw Boon Wan explained that measures like reducing the Man-Year Entitlement quota and raising foreign worker levies are intended to drive construction productivity and reduce reliance on foreign workers, with advance notice given to builders.
• The Ministry provides alternatives such as MYE-waiver applications with higher levies and the Construction Productivity and Capability Fund to support contractors facing labour constraints.
• Time extensions are already possible under standard contract provisions for justified delays, evaluated case-by-case while maintaining productivity and foreign worker reduction goals.

• Mr Yee Jenn Jong asked for details on the Skills Development Levy contributions, disbursements from the Skills Development Fund (SDF), and allocations to small and medium enterprises (SMEs) over the past three years.
• In FY2012, about $210 million was collected from the levy, with $171 million committed to training subsidies and infrastructure, including $67 million directly to employers as course fee subsidies and absentee payroll.
• Of the $67 million, $29 million (43%) went to SMEs, with $7 million specifically allocated to SMEs with 10 or fewer employees.
• The government has increased support for SMEs since 2012, offering 90% course fee subsidies and higher absentee payroll to encourage workforce training.
• The authorities encourage all enterprises to utilize CET programmes to enhance skills and productivity.

• The Ministry of Manpower announced a multi-pronged strategy to address the recent rise in construction site accidents, including stricter penalties, tighter conditions for lifting Stop Work Orders, expanding the Business Under Surveillance Programme, and reviewing the Demerit Points System, while also increasing support through Safety Compliance Assistance Visits.
• Officials emphasized that safety is a shared responsibility across the entire construction value chain, with initiatives like Design for Safety and industry-led programmes aimed at fostering a proactive safety culture beyond enforcement.
• The Ministry confirmed that workplace safety records are considered in government tender evaluations and that measures are in place to ensure worker fitness and to empower foreign workers to report safety concerns.

• Assoc Prof Tan Kheng Boon Eugene raised questions about the trends in working hours over the past decade, the impact of long hours on productivity, and the actions taken by tripartite partners to address health and work-life balance concerns.
• Tan Chuan-Jin noted a slight decline in average weekly working hours for employed residents over the last decade, with full-timers working around 48 hours per week in recent years, and highlighted studies linking excessive hours to lower productivity due to well-being issues.
• The government and tripartite partners are promoting flexible work arrangements, such as through the WorkPro programme and the Tripartite Committee on Work-Life Strategy, to improve work-life harmony and productivity, with a rising trend in employers offering such arrangements.

• The Bill implements the International Labour Organization's Maritime Labour Convention (MLC) 2006, setting comprehensive standards for seafarer welfare, working conditions, and employment rights, and consolidates existing laws under a single regulatory framework administered by the Maritime and Port Authority of Singapore (MPA).
• The legislation applies to Singapore-registered ships and foreign vessels calling at Singapore ports, with specific exclusions, and establishes enforcement mechanisms including inspections, certification, and avenues for seafarer complaints to ensure compliance.
• Tripartite partners—including the government, employers, and unions—collaborated extensively on the Bill, highlighting Singapore's commitment to protecting seafarers' rights, addressing issues like unpaid wages and repatriation, and promoting a level playing field in the maritime industry.

• The Ministry of Health is expanding local training pipelines and raising the profile of nursing and allied health careers to attract more young Singaporeans, while also adjusting salaries and offering scholarships to retain talent.
• The Ministry supports mid-career professionals and older healthcare staff by funding training and re-employment schemes, and is recruiting from abroad to supplement the local workforce given projected needs.
• The Ministry plans to incentivize healthcare professionals to specialize in high-demand areas like geriatric medicine through training places and career pathways, while also addressing the welfare and well-being of healthcare staff amidst growing demands.

• The government has enhanced the Workfare Income Supplement (WIS) scheme, raising the income cap to $1,900, increasing the maximum payout to $3,500, and boosting the cash component to 40% to better support low-wage workers with retirement and immediate expenses.
• Initiatives like the WorkRight programme, sector-specific criteria in cleaning, and fair employment practices through TAFEP are underway to ensure workers receive CPF benefits and improve employment terms.
• The Community Health Assist Scheme (CHAS) has been expanded, removing the age floor to allow all eligible family members in lower- and middle-income households to access subsidised medical and dental care.
• The government is considering a consolidated statement to inform workers of their total annual benefits from various schemes and to include information on upgrading and training opportunities.
• Assistance to low-wage workers extends beyond wages to include housing, healthcare, and education, with ongoing reviews to enhance support as part of a whole-of-government effort.

• The Acting Minister for Manpower stated that about 15% of Malaysian Work Permit Holders in Singapore are in blue-collar jobs like plumbing and electrical work, and noted that measures like the Foreign Worker Levy and Dependency Ratio Ceiling help protect local wages by managing foreign worker costs and numbers.
• Baey Yam Keng clarified that his concern was about self-employed informal workers such as freelance Malaysian plumbers and electricians who may not pay levies and could undercut local prices, questioning whether the Ministry can track and act against this illegal work.
• Tan Chuan-Jin responded that any foreign worker without a valid work pass is illegal, with penalties including fines and imprisonment, and encouraged public reporting and industry awareness to combat such activities, as they harm local livelihoods.
• Low Thia Khiang asked about enforcement against informal Malaysian workers on social visit passes, including roles like karang guni collectors and deliverymen, and expressed concern that some work permit holders in construction might be engaged in non-construction jobs, alleging that MOM might overlook these issues.
• Tan Chuan-Jin acknowledged that illegal work by individuals on social visit passes occurs and relies on random checks and public complaints for enforcement, inviting Low to provide specific feedback on alleged lax enforcement for follow-up.

• Mr Zainal Sapari pressed for specific percentages on how many Principals, Vice Principals, and heads of department are at the correct substantive job grade, as well as figures on those still under-graded after five years and those retiring below their appointment grade, arguing that officers should be paid according to their job worth.
• The Senior Parliamentary Secretary explained that MOE follows Civil Service HR principles, requiring officers to prove competency before promotion, and noted that only a small number retire below their appointment grade due to early retirement or performance issues.
• When pressed for exact figures, the Ministry declined to provide them, instead emphasizing that most school leaders retire at or above their substantive grade and that the system aims to reward capability and retain talent.
• Mr Zainal Sapari criticized the current policy as unfair, suggesting a three-year timeframe to align substantive grades with appointments, while the Ministry defended its approach as based on performance and potential assessments.
• The debate highlighted differing views: one side calling for clearer, faster promotion to correct pay grades, and the other asserting that the existing framework ensures fair remuneration and development.

• Mr Pritam Singh asked how many times over the past decade the Labour Court ruled that the basic rate of pay under the Employment Act includes overtime hours.
• Acting Minister for Manpower Tan Chuan-Jin clarified that the basic rate does not cover overtime payments under the Act.
• The Minister stated that any work beyond stipulated hours is overtime and must be paid at 1.5 times the basic hourly rate.
• The Commissioner for Labour has consistently ruled in accordance with this legal provision.

• The Acting Minister for Manpower stated that the Ministry has already conducted independent surveys, including one in 2011 with 3,500 foreign workers and a 2013 survey of departing construction workers, which found high satisfaction rates and minimal employment issues.
• The findings from these studies are publicly available on the Ministry's website, indicating a commitment to transparency.
• The Ministry commits to continuing to monitor the situation and conduct periodic surveys as necessary to understand the experiences of foreign workers.