S’pore will not take “easy way out” to solve problems, says labour chief

S’pore will not take “easy way out” to solve problems, says labour chief

By Hoe Yeen Nie,

SINGAPORE : 2008 is set to be a challenging year for many workers, with the rising job insecurity and widening income gap in many parts of the world.

While some countries have chosen to lay the blame on foreign workers, Singapore’s Labour Chief Lim Swee Say said the country is prepared to take tough measures to deal with the economic uncertainty.

He added that the unions are committed to creating opportunities to help low-wage workers cope.

“Here in Singapore, we don’t look for easy solutions because we know that easy solutions will not work… We don’t target the foreign worker because foreign worker is not the problem. If Singapore were to send back all the 30 percent of workers who are foreign workers, (will) we be better off,” said Mr Lim, NTUC’s (National Trades Union Congress) Secretary-General.

During Mr Lim’s May Day Rally speech, he highlighted the schemes that are available for workers to upgrade their skills and find new jobs, even after they have retired. He stressed that there are opportunities to help workers cope with the changing global economy, so long as they are willing to take up the challenge.

And tackling these challenges head-on is 44-year-old Koh Hwee Koon. The former fish stall helper took up a course five years ago, and now earns more as a training assistant.

“I (get) full welfare (benefits), I have CPF to support my family. Compared to the time when (I was) selling fish, (I have) no CPF. It’s only fish that I can give my child,” said Koh.

Unionists said they are happy with the focus on continued education and training, especially where contract workers are concerned.

NTUC said while many are on the CPF scheme, their low wages remain a drawback.

“So to get them out of this cycle, the unit is looking at re-training workers. With higher skills, they will get higher pay, and they would be more willing to contribute to CPF,” said Mah Cheong Fatt, head of the Unit for Contract and Casual Workers, NTUC.

The labour chief said in the new economy, the differences between young and old workers, local and foreign, are no longer applicable. Instead, it is only by forging an inclusive workforce, can Singapore continue to move ahead. - CNA /ls

Source : Channel NewsAsia  - 02 May 2008

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Singapore PM: Twin challenges and how to make lives better

Singapore PM: Twin challenges and how to make lives better 

Economic uncertainties and the rising cost of living are two immediate challenges facing workers here. Prime Minister Lee Hsien Loong yesterday spoke about these twin challenges, along with the progress made by low-wage workers and longer-term plans to improve the lives of Singaporeans
 
NOT A WAYANG
‘We have ample supplies of rice. We have a stockpile. Our importers have been building up their stockpiles. FairPrice has got rice too, plenty of it. And their shelves are full of rice, at all times. I told them why not bring one whole container load, 40-foot truck, park outside, show everybody - which we did in 1990 when there was…worry about not enough rice in Singapore.

Lim Swee Say says people have confidence in FairPrice, no need to do this wayang.

But we don’t do wayang. We need to help Singaporeans cope with higher food prices. And we’re doing that.’
Source : Straits Times  - 02 May 2008

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Send away foreigners and jobs for locals go too: Singapore PM

Send away foreigners and jobs for locals go too: Singapore PM 

He says foreigners let businesses offer better service, add value to economy

By Sue-Ann Chia 
THE simmering discontent on the part of some locals towards foreign workers got an airing from none other than Prime Minister Lee Hsien Loong yesterday.
‘They are not here to steal our jobs, but to help us enlarge the economic pie,’ he said in the Mandarin portion of his speech at the May Day rally.

Mr Lee, who also spoke in English and Malay, said that Singaporeans should look at foreign workers objectively.

His remarks were prompted by recent media reports about coffeeshops hiring more foreign workers, and the tension arising between locals and foreigners working in them.

Addressing the issue at a tripartism forum two weeks ago, former labour chief Lim Boon Heng had told the story of two women - one local and older, one younger and from China - at a coffeeshop in Jurong West.

The one from China sold beer and drew in the customers, thus keeping the coffeeshop in good business, which in turn helped the local drinks lady keep her job, said the Minister in the Prime Minister’s Office.
PM Lee noted that some people disagreed with Mr Lim’s argument, and said he himself did not think it a good thing ‘to have more pretty beer ladies who encourage people to drink more’.

But he noted that Mr Lim had a serious point: Foreign workers were of value to Singapore.

Because they are hard-working and willing to work long hours, coffeeshops can stay open late or even round the clock. The airport, seaport, factories, offices, hotels, restaurants and retail outlets here can offer better service and business hours.

Even smaller businesses, such as neighbourhood shops, can reduce business costs and stay afloat if they hire some foreign workers on top of locals, said Mr Lee.

Foreigners make up 30 per cent of Singapore’s workforce, a figure that has remained unchanged for years. But there has been a surge in their absolute numbers as more come to fill new jobs that were created in record numbers last year.

Mr Lee assured Singaporeans however that the Government was controlling the inflow of foreign workers with levies and limits set on the number employers can hire.

Labour chief Lim Swee Say also weighed in on the issue, saying that foreigners were an ‘easy target’ for Singaporeans to blame when things go wrong.

But they are not the problem, he noted. ‘Let us be very clear. Foreign workers…are our partners because they are here working together with us…that makes us the number one workforce in the world.’

Apart from foreign workers, Mr Lee also paid attention to another group: low wage workers. About 350,000 earn less than $1,200 a month.

Unionists, he noted, were very concerned as this was not an easy problem to solve.

The Prime Minister however reminded the 5,000 unionists and workers gathered at Downtown East for the rally that there were measures such as the Workfare Income Supplement scheme and training programmes to ensure that low wage workers could reskill for higher paying jobs.

In an oblique reference to opposition parties, he said the Government did not go in for ‘wayang, grandstanding, issuing statements (without being) accountable for results’.

Still, he urged people to look at the low wage worker issue in context: The majority of Singaporeans are doing well and household incomes have risen across the board.

The unemployment rate for residents is ‘very low’ at 2.9 per cent and employment is at a record high.

‘More Singaporeans are employed than ever before, despite all the foreign workers here,’ he noted.
HIGH EMPLOYMENT

‘More Singaporeans are employed than ever before, despite all the foreign workers here.’

PM LEE
Source : Straits Times  - 02 May 2008

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Foreign workers help, not hinder us: Singapore PM Lee

Foreign workers help, not hinder us: Singapore  PM Lee

Our economy would not have grown so much without them
BY the end of his one-hour May Day Rally speech, the message coming from Prime Minister Lee Hsien Loong was clear: all workers - young or old, educated or not, local or foreign, fresh to the workforce or in mid-career - will get a helping hand from the government to improve their quality of life.
 
Mr Lim: Urged locals to embrace foreign colleagues in a collaborative effort towards a common prosperity 
But one group - the low-wage earners - will remain a top priority, said Mr Lee yesterday as he promised to help them boost their wages through skills training and upgrading.

He revealed how he recently had a closed-door dialogue with the NTUC’s central committee, whose members were ‘very seized’ with the task of how to help such workers close the income gap.

But while initiatives like more training and the Workfare handouts have improved their situation, Mr Lee admitted that the plight of low-income workers is ‘not an easy problem to solve’, as many countries are also grappling with it and there are ‘no short cuts’ to the problem.

Shutting out foreigners, for instance, would not be a good idea, said Mr Lee, as he explained at length why the Singapore economy would not have prospered had it not been for this particular group of workers.

‘Some people think that foreign workers are the problem because they are undercutting the wages of locals,’ he said in the Mandarin portion of his speech.

Referring to recent reports about how neighbourhood coffeeshops were hiring ‘pretty young ladies from China’, he shared how an elderly Singaporean woman had complained to ex-labour chief Lim Boon Heng that they were taking jobs away from locals.

‘Boon Heng replied, half-joking, that maybe this was how the drinks stores attracted more customers; with more business, locals will be able to keep their jobs, and so the PRC young lady was indirectly helping the Singaporean woman,’ said Mr Lee.

While some disagreed with Mr Lim’s response, the prime minister himself thought it ‘may not be a good thing’ to have more pretty beer ladies as it would encourage people to drink more.

He did, however, speak on the merits of foreign workers, as many are ‘hardworking, willing to work long hours’. By hiring them, shops can open until late or even 24 hours. Also, with such workers, businesses can offer better services and hours, strengthening Singapore’s competitiveness.

Lastly, many SMEs ‘do not make good profits’, especially neighbourhood shops. ‘If they can hire some foreign workers in addition to locals, they can reduce costs. Otherwise they may have to go out of business. Their Singaporean employees will then lose their jobs,’ he said.

He reassured that the government was controlling the inflow of foreign workers, with limits on how many each company can hire and the imposing of a levy on each worker.

‘This gives Singaporean workers the edge in competing for jobs. I hope they will look at the contributions of foreign workers objectively - they are not here to steal our jobs, but to help us enlarge the economic pie.’

Mr Lee, meanwhile, had one piece of advice for employers and workers in this period of global uncertainty: take into account the impact of the US slowdown on your respective sector when negotiating any contract agreement this year.

‘You have to ensure that any built-in wage increases are sustainable and if the companies are still doing well, reward the workers with higher variable bonuses. Keep it flexible, so just in case things turn wrong, you don’t disappoint the workers and take back something which has already been given,’ he said.

NTUC secretary-general Lim Swee Say, too, urged locals to embrace their foreign colleagues, and realise that both groups had to work together for their company, and economy, to prosper.

He shared the story of how ST Aerospace management decided to hand out a National Day bonus last August to all its 4,400 staff - a fifth of whom are foreign - for their good work.

‘All the workers know that, if not for that 20 per cent, ST Aerospace would not be doing so well. Foreign workers in Singapore, they are our friends and partners. They are here together with us, and that makes us the No 1 workforce in the world.’
Source : Business Times  - 02 May 2008

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Singapore PM highlights relevance of R&D in providing jobs

Singapore PM highlights relevance of R&D in providing jobs

Efforts to build new capabilities by investing in R&D starting to pay off
By LEE U-WEN

THE topic of research and development is not one that usually crops up at the annual May Day Rally speech, but Prime Minister Lee Hsien Loong yesterday saw it fit to highlight its relevance in providing numerous jobs to Singaporeans.
 
Moving forward: Workers at the Labour Day celebrations yesterday. Singapore will continue to bring in new projects that will help upgrade the economy, although not all would necessarily be connected to R&D, says PM Lee 
Even as he admitted that R&D ‘may seem remote to workers’, it actually benefited the Singapore economy broadly, and Mr Lee spent time explaining why during his address to some 1,500 trade unionists at Downtown East as they marked Labour Day.

‘We are building new capabilities for the future by investing in R&D, and our efforts are making good progress,’ said Mr Lee, who is also chairman of the Research, Innovation and Enterprise Council.

The government, he added, was continually attracting the world’s top scientists - many of whom are from the top US, European and Japanese universities - to relocate and set up their laboratories here.

‘Why is there value in it to our economy and to Singaporeans? Because of R&D, many things flow after that. You get investments that are linked to R&D (such as) biotech and pharmaceutical companies, solar energy companies.

‘They do research here, production, they employ workers here. Existing companies here which might have otherwise moved elsewhere because it’s cheaper, they stay here and employ Singaporeans because here, they can make that R&D work, move upstream and become competitive,’ said Mr Lee.

Many good jobs have been created all the way down the line, said the Prime Minister, and these ranged from research scientists with PhDs; engineers, technicians and programmers; to even jobs that older workers could adapt to, or go for professional conversion.

‘There are jobs that our ITE (Institute of Technical Education) and polytechnic graduates are trained for, and will be able to do, because these skills are in great demand,’ said Mr Lee.

Earlier in his speech, he noted how ITE graduates are ‘in demand’ by employers, with 93 per cent of all such graduates able to find jobs within six months, with many commanding ‘good starting salaries’ of about $1,400 a month.

Throw in the polytechnic and university figures, and 85 per cent of Singapore graduates are able to get good jobs after finishing their studies.

Looking ahead, Singapore will continue to bring in new activities and projects that will help upgrade the economy, although not all would necessarily be connected to R&D, said Mr Lee.

Many major projects are attracted to the Republic because of the ‘environment, excitement and buzz.’

Citing the example of the two upcoming integrated resorts - the first of which is set to open by end-2009 - the Prime Minister urged workers to look beyond just the hype and buzz and understand the ’substantial benefits’ that such mammoth projects bring.

‘The Marina Bay IR alone will eventually create 10,000 jobs. The Sentosa IR will create a similar number. They need so many workers, they even asked the NTUC to help find and train workers!’ said Mr Lee.

‘They are looking for people who are courteous and conscientious in their work, prepared to adapt and learn, and have a good service mindset.’

To much laughter, Mr Lee then depicted the scenario of someone going to the resorts, only to be received by a staff who did not give good service: ‘You visit the IR, and you see one sour face. Suay (Malay for ‘unlucky’)! So it’s very important, you must learn to smile properly and take care of the customers, then they will come back.

‘And even if they were not so lucky the first time, maybe next time, better luck.’

Said Mr Lee: ‘There are all kinds of jobs waiting for you, if you have the right attitude.’
Source : Business Times  - 02 May 2008

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Slowdown may stretch into next year: Singapore PM Lee

Slowdown may stretch into next year: Singapore PM Lee

For S’pore, much depends on the shape of the US downturn - whether it’s V, U or L
By CHUANG PECK MING

(SINGAPORE) To the eternal optimists who think that the Singapore economy will rebound from its lean patch in the months to come, Prime Minister Lee Hsien Loong offered a sobering projection: he expects the slowdown to continue into next year.
 
 
While the economy is on track to hit 4-6 per cent growth this year, Mr Lee sees its momentum slowing in the next few quarters as the United States economy limps along, dragged down by still-unfixed sub-prime mortgage problems.

And whether it’s a V-shaped or U-shaped downturn in the US, it could extend the slowdown in Singapore’s economy into 2009, Mr Lee told some 1,500 unionists yesterday at a National Trades Union Congress May Day Rally.

‘The first quarter is good,’ he said. ‘Second, third, fourth quarters - prepare ourselves that it will slow down. And the slowdown may last into next year.’

It could be worse if the US falls into an L-shaped economic trajectory - the gloomiest scenario, when there is a severe and extended downturn in the US, like the decade-long recession Japan went into in the 1990s.

‘If that happens, then America is in trouble,’ Mr Lee said. ‘So too Europe, so too Japan. And Singapore will be caught up in this and we will be in serious difficulties too.’

But he noted that most analysts don’t think this is on the cards.

The best scenario for the US is a V-shaped downturn - a quick recession followed by a quick rebound - which is also the best scenario for Singapore, Mr Lee said. ‘But it is hoping for the best’.

He said the US could easily slip into a U-shaped downturn because its underlying housing problems remain unsolved. The actions taken so far have only postponed the problems into the future.

‘The property prices have to go down further,’ Mr Lee said. ‘When they go down, the banks will have more problems. When the banks have problems, they shrink. That will cause the economy to have more problems.’

In a U-shaped downturn, the bottoming will last longer and the US economy will take some time to sort itself out - perhaps until 2009, according to him.

‘This could well happen and then Singapore too will be slowed down significantly,’ Mr Lee warned.

‘But whatever it is, we have to stay on our guard and stay prepared,’ he said. ‘Overall, I would expect V-shaped if we are lucky (or a) U-shaped downturn in the US - better plan on that.’

Whatever shape the US downturn takes, Mr Lee said the impact on the Singapore economy will be uneven. Construction, marine engineering, ports and shipyards will be ‘all right’, according to him.

‘Construction will be okay because we have so many things building in Singapore,’ Mr Lee said.

‘Marine engineering will be okay because the shipyards are doing well. Ports will be okay because the port is highly competitive and bringing in a lot of business.’

But tourism, financial services and perhaps information technology will feel at least some pain.

All this suggests that Singapore’s year-on-year economic growth in the coming quarters will fall below the surprisingly strong 7.2 per cent gain estimated for Q1.

‘Essentially, Singapore has to be prepared for fairly rough weather ahead,’ said Manu Bhaskaran of Centennial Group, a US-based economic consultancy.

He sees a prolonged period of ‘meagre’ economic growth in the US - and Europe and Japan are not going to take up the slack, because the leading indicators for these two large economies also point to a slowdown, according to him.

Mr Bhaskaran said Singapore has built up some resiliency in its services sector, which puts it in a better position than before to absorb the impact of a US recession. But even then, it remains an open economy and a downturn in the US, Europe and Japan at the same time will hit Singapore.

Source : Business Times  - 02 May 2008

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