Hansard, Tuesday, 26 February 2019

1 Dr Intan Azura Mokhtar asked the Minister for Education whether Temasek Polytechnic and Ngee Ann Polytechnic had carried out any due diligence to check the background and academic qualifications of Mikhy Farrera-Brochez who apparently had the qualifications of APA, APS, MCollT, MS DPSY, DipED and who was later convicted of having forged his educational qualifications, before employing him.

Mr Speaker, Sir, prior to employing Mr Mikhy Brochez, Temasek Polytechnic and Ngee Ann Polytechnic had conducted pre-employment checks by verifying copies of Mr Brochez's educational certificates against the original. This is in line with the practices of the public sector, as well as many private sector companies.

In addition, Mr Brochez demonstrated a good grasp of the subject during his interviews with the polytechnics' management staff, including those with expertise in psychology. These factors led the polytechnics to decide to hire him.

While due diligence may be conducted thoroughly, there is, unfortunately, no system that is able to exhaustively keep out those who are out to lie and cheat.

Temasek Polytechnic and Ngee Ann Polytechnic have since incorporated more stringent checks, including the verification of educational certificates with the issuing institutions. However, there are practical limits to such checks. Some overseas institutions may not provide their confirmation, citing privacy reasons. We are also mindful of not going to the extremes and risk losing out on valuable talents. Therefore, the role of in-service performance appraisal and regular monitoring is very important in our human resource (HR) practices.

Dr Intan Mokhtar.

I thank the Senior Parliamentary Secretary for the answers. However, I find it a bit strange that the polytechnics checked the copies with the originals. So, if the original is already falsified, then you are just checking a false document against another false document. I would think that there must be a more robust process in place, where the institution that is keen on hiring should check back with the institution that conferred those certificates in the first place. On top of that, there could also be a check with character referees that a potential employee would have worked with in the past.

My second question is whether Temasek Polytechnic allowed Mr Mikhy Brochez to set up that Child Psychology Clinic where he had access to exceptional children through the clinic because that was what was reported. Could the Ministry of Education (MOE) verify that?

Mr Speaker, I would like to thank Dr Intan Mokhtar for her two supplementary questions. For the first, she had some queries and suggestions. Prior to making a hire, all our five polytechnics conduct pre-employment checks. This is in line with the public sector practice and also that of many companies in the private sector. These checks include background checks and also checking the applicants' academic qualifications against the original certificates. Since then, Temasek Polytechnic and Ngee Ann Polytechnic have tightened their checks to verify with the issuing institutions, not just for the foreign educational qualifications of new staff but also existing staff. So, that is being done and in progress.

In addition to that, since 2014, all our five polytechnics conduct reference checks with the applicant's previous employers or referees indicated in the application. So, on the first question, I want to assure Dr Intan Mokhtar that MOE will continue to work closely with our five polytechnics to continue strengthening their recruitment process.

On the second question, Mr Brochez taught at Temasek Polytechnic for a period of two years, from February 2009 to January 2011. He taught for a much shorter period of only six months as an Adjunct Lecturer at Ngee Ann Polytechnic. During that stint in Temasek Polytechnic, he taught four modules for the first-year students, three modules for second- and third-year students, a total of only 85 students. At that point in time, Temasek Polytechnic had a cohort of about 15,900 students, which means the number of students whom he taught represented about 0.5% of the cohort. In Ngee Ann Polytechnic, the percentage of the students he taught was about 1.5%. His work is concentrated on delivering the modules. And even for those modules that the students attended, for Temasek Polytechnic, that comprised about 10% of their graduating requirement. For Ngee Ann Polytechnic, it is even less; it is about 3% of their graduating requirement.

Dr Intan Mokhtar.

I wanted to ask about the plans that Temasek Polytechnic had for him to set up a Child Psychology Clinic within the polytechnic. Did that go through? Did he have any part in doing that and did he have any access to young children through that planned clinic? Secondly, I would urge MOE to encourage not just the polytechnics, but also across all our educational institutions, to verify the qualifications and credentials of potential employees with the institutions that confer them as well as with character referees.

To the first question posed by Dr Intan Mokhtar, his work was confined to delivering the modules. But let me check on that and I will come back to the Member. For the second question, I want to assure Dr Intan Mokhtar and Members that MOE will spare no effort to work closely with our polytechnics, universities and also the Institute of Technical Education to strengthen our pre-employment checks and ensure that the standard of academic rigour is kept by our educators in our institutions.

Dr Intan Mokhtar, next question.

2 Dr Intan Azura Mokhtar asked the Minister for Health whether there are stricter measures put in place to ensure blood tests cannot be forged for employment purposes.

Mr Speaker, there are processes in place to ensure the integrity of the blood tests. First, the patient's identity is verified at several points: when the blood tests are ordered, when the blood is drawn, and when the blood specimens are labelled. At dispatch and receipt by the testing laboratories, the labelled specimens are checked against the identity of the patient recorded in the laboratory test request forms.

For human immunodeficiency viruses (HIV) tests, testing laboratories only accept patients or blood specimens with a referral from a registered medical practitioner. Hence, any direct request by employment agencies, employers or prospective employees for employment purposes would be rejected by the HIV testing laboratory.

Doctors who commit fraud involving blood tests or forgery of blood test results will be dealt with sternly, including prosecution under the Penal Code. Additionally, as doctors are required to adhere to a strict code of conduct by the Singapore Medical Council (SMC), they may also be subject to disciplinary action by SMC for professional misconduct.

The process checks, ethical standards to which healthcare professionals are held to and the deterrents imposed, work in tandem to safeguard against the falsification of blood tests.

Dr Intan Mokhtar.

I thank the Senior Minister of State for the clarification. May I ask, other than blood tests, how else would the Ministry of Manpower (MOM) monitor possible forgery of work qualifications, academic qualifications, past work experience that may be put up by applicants, especially foreign applicants?

Can I just check with Dr Intan Mokhtar if she is referring to prospective employees who are employed by the healthcare sector?

Sorry. Okay, for the healthcare sector. I think it was supposed to be directed to MOM.

I suppose it would be similar with the other Ministries in that we would actually check against the authenticity of the certificate and, if necessary, even to verify with the institution that issued the certificate to the prospective employee.

3 Mr Louis Ng Kok Kwang asked the Minister for Health whether the Ministry will consider issuing guidelines on disability duration for specific injuries for the use of doctors issuing medical leave and light duties for injured workers returning to work.

Mr Speaker, in assessing the need for a medical certificate and its duration, both medical conditions and non-medical circumstances need to be considered. These include the type and severity of the medical condition or injury; time needed for the treatment, rehabilitation and recovery; and work requirements and workplace conditions. The circumstances vary widely among different persons, making it difficult to come up with prescriptive guidelines.

The attending doctor should use his or her professional judgement, and when, in doubt, consult fellow peers on what is needed to help the patient recover from a medical condition or injury.

To guide this, the Singapore Medical Council (SMC) revised the Ethical Code which came into effect in 2017. This provides broad guidelines that medical certificates must be issued to patients on proper medical grounds arrived at through good clinical assessment, and doctors must not take into consideration extraneous factors, such as who pays for the consultation, what benefits the patients may receive or what employers’ preferences may be. Also, when certifying that patients are fit to return to work but with limitations on their level of activity at work, doctors must first ensure that the patients’ work conditions allow this and, to the best of their ability, ensure that appropriate light duties are, in fact, available to the patients at their place of work.

The Ministry of Health (MOH) will study if it is necessary to formulate specific guidance in particular settings and seek inputs from the professional bodies.

Mr Louis Ng.

I thank the Senior Minister of State for the reply. I just wanted to check the last part. He said that MOH is going to study this issue. Is it going to conduct a review on whether we can set up more specific guidelines, rather than the broad guidelines we have in our code now?

Secondly, I am asking this in relation to the recent case where the doctor issued two days of light duty for the worker who had a broken collar bone. So, how does MOH ensure that the appropriate number of days of medical leave or light duty is issued after a surgery or after a work-related accident?

Mr Speaker, as alluded to in my reply, there are already existing broad guidelines issued by SMC in their ethical code which gives some guidance to doctors on what is expected of them. With regard to whether we will come up with any specific guidance, this is an area where we will consult professional bodies to study whether it is feasible or practical to even do so. However, if the professional bodies think that there may be scope to provide some kind of guidance for certain types of injury, we will take their advice into consideration.

With regard to Mr Louis Ng's other question about the duration of medical certificates, this question had also been raised in the last Parliamentary Sitting by the Member, where a question was posed to MOM about whether MOM will be studying ways to better support the injured workers. MOM has already given the reply that they are currently reviewing it and will be conducting public consultation on this issue.

4 Assoc Prof Walter Theseira asked the Minister for Foreign Affairs (a) whether the Malaysian government's detention of Greek vessel Pireas and crew, which collided with the Malaysian vessel Polaris in Singapore territorial waters, represents an exercise of foreign sovereignty in Singapore territorial waters; and (b) what measures can be taken to ensure that vessels, crew and passengers, particularly Singapore-flagged, will not be subject to foreign authority whilst in Singapore territorial waters or for acts committed in Singapore territorial waters.

On 9 February this year, the Greece-registered bulk carrier Pireas collided with the Malaysian government vessel Polaris in Singapore Territorial Waters off Tuas. A Singapore Police Coast Guard vessel was onsite, observed and recorded the collision. The Maritime Port Authority (MPA) was, therefore, notified by both the Maritime Security Task Force and by the Pireas herself. MPA ascertained that this incident was not classified as a "very serious marine casualty" under the International Maritime Organization (IMO) Marine Casualty Investigation Code. The ship, Pireas, was, therefore, allowed to proceed with its journey to its next port of call, which, in this case, happened to be Tanjung Pelepas in Malaysia.

Pireas was not detained by the Malaysian authorities in Singapore Territorial Waters.

We will not allow foreign government vessels to assert any authority in our waters.

Assoc Prof Walter Theseira.

Mr Speaker, I thank the Minister for Foreign Affairs for that very strong statement that Singapore will not stand for foreign governments exercising sovereignty in our waters. I would like to ask if the Minister has any advice for mariners regarding travel or transit through this area? For example, should they take alternate routes and, if they are given instructions from Malaysian government vessels, what should they do? Perhaps, what would our forces do if they were to observe attempts to give such instructions in the area?

Mr Speaker, these are Singapore Territorial Waters. In fact, these have now been designated Singapore Port Limits. All vessels which are passing or transiting through these waters should, therefore, take instructions from the MPA. Any foreign government vessels have no locus standi to be issuing any instructions. If there are any attempts to assert authority or take any unauthorised actions, our agencies, our vessels and our forces will take appropriate measures.

5 Mr Louis Ng Kok Kwang asked the Minister for Home Affairs (a) what are the findings from the trial of using speed-tracking devices for heavy vehicles in 2018; and (b) whether there are plans to mandate speed-tracking devices for heavy vehicles to curb speeding.

Today, the Traffic Police (TP) already require the use of speed limiters for heavy vehicles. One limitation, however, is that the speed limiters can be tampered with.

Between December 2017 and August 2018, TP conducted a trial on speed-tracking devices, to assess if they might be more effective than speed limiters in discouraging heavy vehicle drivers from speeding. TP concluded from the trial that even though the speed-tracking devices were accurate in measuring vehicle speed, they were also susceptible to being tampered with. They do not, therefore, confer significant advantages over speed limiters.

In addition, the cost to install the speed tracking devices is not low. TP has decided not to make the speed tracking devices mandatory. TP will continue to require the use of speed limiters in heavy vehicles.

TP will continue to monitor the development of other technologies that can help to discourage speeding. TP will also continue to adopt a multi-pronged strategy to getting heavy vehicle drivers to drive safely, including strict enforcement, sustained education and engagement.

Mr Louis Ng.

I thank the Senior Parliamentary Secretary for the reply. My main concern really is that when there is an accident involving a heavy vehicle, the chance of fatality is very high, especially for those who are carrying a lot of people in the back. And we still see them speeding. The problem then is how are we going to tackle the people who are tampering with the speed limiters. Can the Senior Parliamentary Secretary or the Ministry of Home Affairs (MHA) consider increasing the penalties for those who tamper with the speed limiters?

My second question is whether MHA will consider installing the speed counters that we have in our military vehicles. We seldom see the military vehicles speeding. Can we consider putting those counters in our heavy vehicles?

I thank the Member for the suggestion. We will study whether we need to increase the penalties for tampering. But currently, the penalties are quite significant. Just to share with the Member that it is an offence to tamper with a speed limiter installed in heavy vehicles. First-time offenders are liable for an imprisonment term of up to three months, a fine of $1,000 or both. And this is for first-time offenders. More severe punishment is meted out to those who are repeat offenders. There are also laws that ensure heavy vehicle owners maintain the speed limiters in proper working condition. Again, there are penalties for failure to abide by this law.

That said, we are not just stopping there. We are also looking to enhance the punishment, in particular. MHA recently announced increases in composition sums for road traffic offences which will take effect on 1 April 2019. With this change, the composition sum for heavy vehicle drivers who exceed the speed limit by over 31 kilometres per hour would be increased from $200 today to $400.

Also, TP engages heavy vehicle drivers regularly through education, safety dialogues and various other sessions.

On the use of the speed tracking devices, that is part of the trial. In fact, what we have tested in the trial were enhanced features where the business owners could actually track the speed of the vehicles when they are transmitted to the companies. So, the tracking device, as I have mentioned, can be tampered with, and tampering is something that is very difficult to detect. That is why we have quite serious punishments for it. We will continue to study what we can do better.

On a good note, the accidents involving heavy vehicles have, in fact, decreased. Let me share with Member the figures that we have. Between 2014 and 2018, the number of speeding violations involving heavy vehicles with speed limiters actually decreased by about 37%, from 1,737 in 2014 to 1,087 in 2018. And the number of speeding-related accidents involving heavy vehicles decreased, too, by about 37% from 27 in 2014 to 17 in 2018. But nevertheless, we agree with the Member, one accident is still one too many. We will see what we can do better in this area.

Senior Parliamentary Secretary Low Yen Ling.

CLARIFICATION BY SENIOR PARLIAMENTARY SECRETARY TO THE MINISTER FOR EDUCATION

Thank you, Mr Speaker, Sir. Please allow me to respond to the earlier clarification by Dr Intan Mokhtar. The child psychology clinic that she cited was reported by The New Paper in a 2010 article, and this child psychology clinic was just one of the initiatives that Temasek Polytechnic was considering. This initiative was never implemented and Mr Brochez was not involved in this initiative.

Order. End of Question Time. Introduction of Government Bills.

[(proc text) "to provide for the issue from the Consolidated Fund and the Development Fund of the sums necessary to meet the estimated expenditure for the financial year (FY) 1 April 2019 to 31 March 2020", (proc text)]

[(proc text) recommendation of President signified; presented by the Minister for Finance (Mr Heng Swee Keat); read the First time; to be read a Second time after the conclusion of proceedings on the Estimates of Expenditure for FY2019/2020, and to be printed. (proc text)]

[(proc text) "to make supplementary provision to meet additional expenditure for the financial year (FY) 1 April 2018 to 31 March 2019", (proc text)]

[(proc text) recommendation of President signified; presented by the Minister for Finance (Mr Heng Swee Keat); read the First time; to be read a Second time after the conclusion of proceedings on the Estimates of Expenditure for FY2019/2020, and to be printed. (proc text)]

[(proc text) Order read for Resumption of Debate on Question [18 February 2019], (proc text)]

[(proc text) "That Parliament approves the financial policy of the Government for the financial year 1 April 2019 to 31 March 2020." ‒ [Minister for Finance]. (proc text)]

[(proc text) Question again proposed. (proc text)]

Mr Liang Eng Hwa.

Mr Speaker, Sir, I would like to touch on four areas of Budget 2019, namely, Growing our Enterprises; Supporting our Workers; Healthcare Support; and Fiscal Management.

Firstly, on growing enterprises. Budget 2019 continues to press on with efforts to build competitive enterprises within our economy with greater focus and emphasis on changes at the microeconomic level. The slew of schemes and programmes announced aims at helping enterprises deepen capabilities and to scale up.

Besides new schemes, such as Scale‐up SG, Small and Medium Enterprise (SME) Co‐Investment Fund III and the Innovation Agent Programme, the Finance Minister has also extended and enhanced existing schemes, such as the Enterprise Development Grant (EDG), the Productivity Solutions Grant (PSG) and others, with the intent to boost effectiveness and reap better outcomes. Eight existing financing schemes offered by Enterprise Singapore (ESG) were also streamlined into a single Enterprise Financing Scheme (EFS), making it simpler for businesses to apply and easier to access the loans.

The merged EFS is also extended to companies which have been incorporated for less than five years and may not have yet met the credit evaluation criteria or vintages as required by banks. The Government's willingness to risk sharing up to 70% of the loan amount significantly enhances the lending proposition which would encourage more financial institutions to participate. The ability to obtain financing means a great deal to companies, especially those in the early growth phase. Being able to readily access funding and liquidity can make or break a company. This is an essential enabler for a flourishing enterprise ecosystem to exist.

Besides financing, companies that are in the scaling up phase also often need private capital from investors who are more patient and with a longer time horizon. Hence, the additional $100 million injection to establish the SME Co‐Investment Fund III can act as a catalyst to entice even more crucial investments in these high-growth potential companies. Of course, there is no guarantee of success in such co‐investments, but it is necessary to make available such risk capital so as to give promising startups a lift.

Sir, today, our economy is more innovative‐ and technology‐driven and we do have a vibrant startup ecosystem. More new‐to‐economy activities have also been developed in recent years, such as the proliferation of FinTechs, sharing economy apps, deep tech ventures and so on. Progressing from startup to scale‐up is the next logical move. Startups and enterprises can only thrive when they scale up and seek greater market opportunities. To achieve this, we must be open to trying new approaches to grow our enterprises.

From an economic resource allocation standpoint, it makes excellent sense to help grow the sizes of our companies, especially the smaller enterprises. Bigger companies enjoy better economies of scale advantages and are in a better position to expand, innovate, internationalise and manage business risks. In general, larger companies tend to be bigger value contributors to the economy as a proportion and offer better job opportunities for Singaporeans.

The new Scale‐Up SG programme is a bold move to help fast track growth for promising enterprises. I would imagine that such a programme will offer highly customised assistance which may entail differentiated support and assistance, better financial support for the adoption of technology and so on. We will await more details from the Committee of Supply (COS) debate on the Ministry of Trade and Industry (MTI). But the instinctive question I have in mind is whether such schemes, being customised and, hence, selective in nature, would involve some extent of picking winners? Would the Scale‐Up SG be a separate track of work from the Industry Transformation Maps (ITMs)? How do we eventually expand or scale up the Scale‐Up SG to move the needle for the economy?

Second, on supporting our workers. Sir, I am most heartened that the Finance Minister has again committed solid budgetary support to help Singaporean workers stay employed and be re‐employed. Out of the $4.6 billion allocated to transforming the economy, a lion's share of $3.6 billion will go towards helping our workers. It underscores the Government's resolve to help workers adjust to the future economic landscape, no matter how difficult the adjustments may be. Among others, the Professional Conversion Programme (PCP) will be expanded to cover new growth areas. This would help jobseekers reskill to transit into new occupations or sectors with good prospects and opportunities for progression. PCP, which is part of the Adapt and Grow initiative, has since achieved encouraging results, helping 76,000 jobseekers find jobs in the last three years.

But we should continually raise the bar here, aiming not only to help even more jobseekers find new jobs but also to improve the overall experience of the jobseekers. The newly harmonised Global Ready Talent Programme (GRTP) will help young Singaporeans gain overseas work experience in the key growth regional markets where we are seeking greater economic interdependencies, such as Southeast Asia, China and India. Under the scheme, participating local firms can receive funding support of up to 70% of costs. These are markets in our immediate neighbourhood where we need to strengthen our connectivity and expand the talent pool of people.

I thank the Finance Minister for extending the Career Support Programme (CSP) for another two years. CSP is a much‐appreciated scheme by both companies and workers. The programme encourages companies to hire mature workers who may have been in long-term unemployment by subsidising a significant share of the workers' salary. Rather than renew this programme every two to three years, I hope that the Government can turn the CSP into a permanent scheme. Of course, the terms can be refined from time to time to meet changing circumstances. It will give workers, especially mature workers, who are concerned about their job security a sense of assurance that the Government will be there to help in their transition to a new job. It will also demonstrate the Government's resolve to keep long-term and structural unemployment to the lowest possible level even as our economy becomes more innovative‐ and technology‐driven.

To encourage employment of older workers, the Special Employment Credit (SEC) scheme and the Additional SEC have been extended by another year. SEC provides a wage offset to employers for hiring workers aged above 55 earning up to $4,000 per month. These are consistent with our strategy to tackle the twin challenges of a tightening labour market and our ageing demographics.

The enhancement to the Workfare Income Supplement Scheme (WIS) is another piece of welcome news, especially to low-wage workers. The higher payouts of up to $4,000 per year will help low-wage workers cope with the cost of living.

Sir, I support the reduction of services sector S Pass Sub‐Dependency Ratio Ceiling (DRC) to address the sharp growth of S Passes in this sector. It is not sustainable, both economically and socially, to keep having more and more foreign workers in the workforce. In particular, such mid‐level skills labour is also increasingly in demand in other countries as well and companies will, in a matter of time, face competition in getting those workers to come in. Hopefully, this tightening will also signal to companies that they need to revamp their work processes, redesign jobs and reskill their local workers.

There are already almost 200,000 S Pass holders in the workforce now. Our S Pass system should be structured in a way where companies are given more S Pass only if they have more local workers at mid‐ to high‐wage levels and demonstrate high value contribution to the economy. We should strengthen this linkage. Can I also suggest that the companies that have been shown to hire more displaced or retrenched local workers, for example, via Workforce Singapore (WSG) or the Employment and Employability Institute (e2i), be given favourable consideration for their renewal of S Passes as well? At the end of the day, we want more of the S Pass type of jobs to be undertaken by Singaporeans, whether they are seniors, Institute of Technical Education (ITE) or polytechnic graduates or back‐to‐work mothers.

Tightening of the foreign worker quota is understandably painful to companies which are unable to find local workers. I hope that with the EDG and PSG extended and expanded, it would help firms adjust to this round of tightening of the labour market. I look forward to hearing more details at the MTI COS on the measures.

Sir, I like the statement from the Finance Minister that starting from 1 April 2020, all transformation efforts supported by ESG's EDG must include positive outcomes for workers, such as wage increases. Growing the economy is a means to an end, and the end must be to create good jobs and better salaries for our people. We have seen how economic growth in other developed economies has not always led to better workers’ outcomes and resulting in deep divisions within their societies. At the end of the day, economic development cannot be delinked from the social well-being of the people.

Thirdly, on healthcare support. For many years, the Government has been highlighting the challenges of our ageing demographics and have put in place a series of long‐term policies to deal with this imminent development. One serious implication of an ageing society is that healthcare needs will grow, will increase. The Government has put its money where its mouth is. Over the years, the Ministry of Health (MOH) has expanded the healthcare infrastructure, such as hospitals, polyclinics, senior care centres and many others.

At the community level, there are also more social support, such as the Community Network for Seniors (CNS) and the People's Association's (PA) Wellness Programme, as well as the many voluntary welfare organisations (VWOs) working with the community organisations. The Agency for Integrated Care (AIC) and Silver Generation Office (SGO) are today better resourced to assist and engage seniors.

Besides the infrastructure, healthcare support must also include providing assurance that healthcare services will be affordable and that individuals will have adequate savings and insurance coverage to meet their old age needs. Building more polyclinics and the introduction of the Community Health Assist Scheme (CHAS) have made affordable primary care more accessible to the people.

The enhancement in CHAS to cover all Singaporeans for chronic conditions, regardless of income, is another indication of our improving social safety net. As a further icing on the cake, we now have the Merdeka Generation (MG) Package (MGP), which will have benefits better than the Blue CHAS card. I support the decision not to have means-testing for the MGP, just like the Pioneer Generation (PG) Package (PGP). These are a very special generation who went through some of the most trying times during our pre and early Independence years.

Sir, to help with large hospital bills, we now have the enhanced MediShield Life coverage covering all Singaporeans, including those with pre‐existing conditions. To protect against the uncertainties of long‐term care costs, we will soon transit into CareShield Life. Premiums for both schemes can be paid using MediSave, which is why it is helpful that the Government constantly look to top up the MediSave account of Singaporeans whenever we have Budget surpluses.

Both MediShield Life and CareShield Life are now administered by the Government. My ask to the Ministry of Finance (MOF) and MOH is that we should continually looking to enhance the terms of the coverage. Whenever there are surpluses, we should consider one‐off injections into the risk pool to continually improve the claims economics for the insured.

Overall, credit must be given to MOH and Minister Gan Kim Yong for their tremendous efforts to strengthen our massive healthcare system and for giving Singaporeans much better peace of mind today.

Fourthly, on fiscal management. Sir, Budget 2019 will have a long‐lasting impact in many areas, such as national security, economic transformation, helping our workers, infrastructural development and enhancing the social safety net.

For a Budget to be impactful, having the required financial resources is, of course, a given. But we also need the right strategic plans and the ability to carry out the plans coherently across financial years and across terms of government. We are in this enviable position because, in each Budget since our founding years, we have always been prudent and steadfast in resisting the temptation to spend more than necessary. As the base of our Reserves grow, the investment returns have now become the largest revenue contributor, helping us balanced the Budget, which we would otherwise run into deficits.

Given this is the case, our Budgets in recent years, including Budget 2019, are, by definition, expansionary budgets, with the Net Investment Returns Contribution (NIRC) the stimulus injection. Of course, we cannot count on NIRC to fund all our expenditures. Growing the economy to generate tax revenues and create good jobs for our people continue to be critical to our long‐term survival.

The Constitution requires the Government of the day to maintain a balanced Budget over each term so as to ensure that public funds are allocated sustainably. This arrangement has worked well for Singapore, requiring the Government of the day to be disciplined and prudent in managing our finances, and sharing of the fruits of our better economic performances whenever surpluses are generated. The surpluses are also used to fund massive social and healthcare programmes, like the PGP and MGP, without adding the burden to future generations.

Sir, based on the estimates from Budget 2019, the accumulated surplus from this term of government is projected to be about $15.6 billion, after allowing for the projected deficits of $3.5 billion for financial year (FY) 2019. Under the Constitution, this amount not spent will be locked up as past Reserves in the new term of government. With about two more years of the term to go, I would like to ask the Finance Minister how he envisages the accumulated surpluses for this term of government to be utilised.

Sir, my final point relates to the recent spate of incidents and lapses involving public service and public service providers. These series of incidents have naturally raised concerns whether the standards in the delivery of public services have slackened. In each of these incidents, the Government has been transparent in getting to the root of the problem, holding the organisations or companies accountable, and each time committing to take the necessary corrective measures.

I appreciate Minister Heng Swee Keat's article to the Straits Times on 9 February 2019, reaffirming the Government's commitment to strive for the highest standards of excellence in Singapore. Singapore has always been effectively governed and has achieved very commendable outcomes for our people. Whether it is growing our economy and creating jobs, building a liveable home or building a harmonious society, providing law and order or securing our sovereignty, we have always gotten our fundamentals right. We always do what is right for the long-term good of the country.

I am sure Singaporeans feel proud of our achievements. But we also know that the public wants their day‐to‐day services to run well, too, and to have minimal disruption in the delivery of services as they go about their daily lives. In other words, besides doing big things right and well, which is critical, the public also expects those who are mandated to deliver public services to achieve operational excellence and do the last 5% well, too.

This entails a different mindset at both the organisational and leadership levels as to how we look at operations and the daily functioning of services. Operational responsibilities cannot be just delegated to line managers, supervisors or individual employees. It is a collective responsibility of the management and their employees, with each employee at the individual level taking ownership and pride in carrying out their duties and responsibilities.

Minister Heng Swee Keat, in his article, also mentioned about leaning from the Japanese and the Swiss who have a strong sense of personal responsibility in what they do at work and a meticulous attention to details. It reminds me of this story about President John Fitzgerald Kennedy's visit to the National Aeronautics and Space Administration (NASA) in 1961. He met a janitor or cleaner who was mopping the floor as he walked in and asked what he was doing. The janitor replied, "I am helping put a man on the moon!"

The leadership and the management set the culture. But it must manifest through the actions of every individual and on a daily basis. Management must take deeper interest in what each of their employees is doing, what their daily challenges and pain points are, whether the employee is adequately resourced to do the work and how can we improve their work situation and employee journey.

Sir, our system as a whole is in a good position to deliver the excellent service to our people. We just need to bring everyone on board, instil ownership and pride in what we do, ensure that there are adequate support and resources for people to do their job well, and to build a strong sense of purpose that each of us can make a difference. I agree with Minister Heng Swee Keat that we do have this ethos and DNA within us, and I am sure we can do a better job, going forward. So, with that, I support the Budget, Sir.

Ms Jessica Tan.

Mr Speaker, thank you for allowing me to participate in the Budget Debate. I would like to thank Minister Heng Swee Keat for delivering a Budget that balances the needs of Singaporeans in areas that matter at each stage of life and, the same time, supporting businesses as they restructure, while continuing to push forward the strategic long-term goals needed to enable Singapore to stay relevant and build the society we aspire.

In my speech today, I will touch on the following areas: (a) building SME capabilities; (b) lowering the foreign worker DRC; (c) supporting an inclusive society; and (c) tightening of relief for travellers.

Small and medium enterprises (SMEs) make up more than 90% of the total number of the businesses operating in Singapore and employ 65% of the workforce. Therefore, supporting SMEs to build deep capabilities and grow to stay relevant and competitive are key for both companies and individuals. This will impact the number and quality of jobs, as well as the competitiveness of businesses.

The feedback I have received from dialogue sessions I have had with SME leaders and members of business associations that operate in my ward is that existing schemes with pre-approved digital solutions are helpful, but more flexibility is needed to support the diverse needs and stages that their businesses are at. This will enable them to address the opportunities and challenges, with the major shifts that Minister Heng Swee Keat had spoken about in last year's Budget as well as in the opening of his Budget speech, that are impacting these businesses – the shift in global economic weight to Asia, which brings opportunities for our businesses, but also increases competition; rapid technological advances that enable new capabilities but disrupt business models; changing demographic patterns, with an ageing population impacting both our talent base as well as our manpower requirements; and the decline in support of globalisation that is impacting and creating greater geopolitical uncertainties.

Just last week, a resident, who is an SME business owner, came to our Meet-the-People Session (MPS) seeking help for his business. We initially thought that he was seeking for financial support and grants. But after discussions with him, I realised that what he was really seeking help for was to restructure his business and digitalise. He was, however, at a loss and did not know how to go about it. He did take advantage of the current schemes available to digitalise to have his website and online presence set up.

But he, too, realised that it was not enough. He needed to rethink how he did his business in order to better leverage technology to help him stay competitive. He clearly needed help not with funding but in transforming his business. Transforming how he did business in the markets and market his products and services, he needed new skills to understand how to do so. And he needed to also understand how to leverage the technology.

The Budget builds on programmes already in place to support businesses but introduces new initiatives to help businesses restructure. I believe that an approach that supports companies at different stages of growth is needed. I welcome the announcement in this year’s Budget to focus support in an enterprise-centric way, noting the different approaches for large companies with complex needs as well as the common challenges that SMEs are facing, and digitalising in common functions like HR, finance and customer relationship management and more targeted support for SMEs as they restructure and grow.

Minister Heng Swee Keat spoke of the introduction of the Innovation Agents Programme where businesses can obtain advice from experienced industry professionals who have both technology expertise and business experience to support their innovation efforts. I would like to ask how support will be provided by the Innovation Agents and how will it be structured. What are the qualifying criteria for support and how can businesses tap on this programme?

Let me touch on the lower foreign worker DRC. This announcement on the reduction for the services sector had sent a very strong message to companies on the need to be more productive and to rely less on foreign workers. We must recognise that this will not be easy for companies in the services sector as they rely heavily on manpower and currently are facing challenges in attracting Singaporeans to take on jobs in the service sector.

The countries of sources for foreign manpower are also developing fast and will progress well and businesses must understand that supply for this manpower will eventually diminish as well. While it is painful and difficult, if companies in the services sector do not reduce reliance on foreign manpower for their businesses now, they will be more severely impacted if they are not prepared for it. To raise productivity of the services sector, companies will need to innovate and restructure. We will see some companies struggle to make the shift.

Apart from the extension of the EDG and PSG, more needs to be done to help businesses in the services sector improve productivity and reframe their business models and strategies. The same challenge will be met by other sectors that are labour-intensive and have low productivity.

Why is it challenging for companies in the services sector to reduce their dependency on foreign manpower? Is it a question of not being able to attract Singaporeans to the jobs? Are the factors due to the demographic changes with an ageing population? Is it because of the demand and working conditions of the jobs? Or is it due to the high expectations of Singaporeans for work? Is it an issue of salary? Or is it an issue of cost of getting Singaporeans?

The questions and issues have been debated and many of these factors have been attributed as possible reasons. I believe that the answer actually is in all of the above. What is important now is that, for businesses to build a sustainable model in a market like Singapore which is developed, where we are not a cost leader, we have a tight labour market, our market is small. So, therefore, we have to differentiate by being more innovative and delivering better quality.

How we do this will decide whether we are competitive or not. The answer though is not a simple one and it cannot be achieved by doing more of the same. And it is also not about just innovating and applying technology and automation. It requires rethinking of how business and work are done.

The services sector, as the name suggests, is all about service and customer experience. Many do fear that technology will result in lower customer touch, lower personalisation of services and poorer customer experience. With innovation, technology, if applied right, can achieve greater productivity and better quality but requires rethinking of the way we do things.

Let me share an example, a very simple one. This is an example that was shared with me of a business, Kopi Ong. It is a food and beverage (F&B) business. It services professionals in the Central Business District (CBD) area with freshly brewed coffee and tea. They differentiate themselves in a very simple way, by the signature kopi and teh to each of the customers' preferences. What it means for them though is that their staff will take longer in preparing the coffee, leading to queues and longer waiting time. What they did was that they tested a solution offered by Foodster, a chatbot solution developed by the Development Bank of Singapore (DBS) and Every Botty, a chatbot developer. And it allowed them to be able to let their customers chat via Facebook Messenger and order the drinks they want and pick it up and get notification when the drink is ready to go and pick it up. What it meant is that the business was able to achieve greater sales, better customer satisfaction because they picked up the coffee and did not have to wait in the long queue and they did not need to have more workers. They did not need to have more space as well. What this allows them to do is use technology, make it easier for their workers to plan the work and, at the same time, be able to get better personalised customer service.

So, if applied right, with the right partnerships, the right support, businesses can change. Just a simple example. But I thought it is important to make the point that it is not just about technology, it is not just about the way we do business, it is not just about people and the skill, it is all of them. Therefore, the support that is in place needs to do that.

Now let me talk about supporting an inclusive society. Education, employment, healthcare benefits and affordable healthcare and caregiving affect all Singaporeans at different stages of life and regardless of status. The various programmes announced in the Budget did signal an inclusive approach to support Singaporeans through the stages while building on the fundamentals for the long term.

Whether it was the MGP, the extension of CHAS for chronic conditions and some of the measures in the Bicentennial Bonus like the five-year MediSave top-up, these gave Singaporeans who are eligible, regardless of income and type of property they lived in, the support and the assurance. This inclusive approach in important in building our social fabric.

Similarly, Edusave top-ups to support families with school-going children as well as employment support for workers and seniors to enable access to opportunities were equally welcomed. And it is very important as they help give opportunities to all at different stages to be able to take advantage of the opportunities that they are presented with.

But as with all Budgets, we do have to recognise that finances are finite. To be sustainable, most support packages are means-tested to ensure that they are targeted and go to those who most need it. The challenge is finding the right criteria to use for the means-testing. While not perfect, per capita income and annual value of property living in are used in Singapore to assess eligibility. For several healthcare and care support programmes as well as the cost-of-living relief initiatives, when there is no household income, the annual value of property is used. With an ageing population, there are many middle-income seniors who live in modest private properties that will be above the $13,000 or the $21,000 annual value criterion used for means-testing. They, therefore, will not be eligible for many of these support schemes. An example is the Caregiver Grant that has recently been announced. Another is the support given to lower-wage seniors who work, which is WIS. For some of these seniors who do not own properties, they are not eligible for WIS if they live with a relative in a private property which will obviously have an annual value above the criterion.

With people living longer and cost of living concerns in a developed market like Singapore, while I agree that these schemes must continue to be means-tested and targeted to provide support for those who most need it, will the Minister give consideration to refining how we use the criterion of annual value of the property lived in? The current blanket rule of annual value of the property in relation to all who live within the same dwelling unit may miss its intent for scenarios that I had highlighted. Is it possible for there to be consideration for more flexibility in such cases to allow for eligibility?

The last point that I would like to touch on is the Goods and Services Tax (GST) Import Relief for travellers. I had not intended to speak on this, but it did intrigue me and the feedback I got was quite surprising. With the increasing trend of Singaporeans travelling, and if I understand correctly, the intent of the change is to make the tax system more resilient. If this is the case, has assessment been done on how much it is going to cost to collect the tax? I believe there will be some digital methods to submit the tax. But there will be administrative cost, workload for customs officers and inconvenience to travellers. This will all increase. So, I hope consideration is given to that. Will the cost of collecting the tax result in net revenue loss from the taxes collected? Can the Minister share the anticipated amount of tax to be collected and the significance to the tax revenue?

Regardless, all Singaporeans traveling will have to be more diligent in declaring their expenditure as failure to declare or incorrectly declaring the expenses does carry fines as well as prison sentences. Mr Speaker, notwithstanding my concerns and comments, I support the Budget.

Ms Foo Mee Har.

Mr Speaker, Sir, I agree completely with the Finance Minister’s statement that Singapore's ability to plan for the long term is our strategic advantage. The social and economic measures unveiled in Budget 2019 build on the Government's efforts and investments in prior years to address ageing, social mobility and economic transformation. I welcome the targeted measures that build on that momentum to transform our economy and care for our people. This Budget offers a systematic set of programmes, each reinforcing and building on existing ones.

I am also heartened to see how, over the years, social safety nets continue to be strengthened for Singaporeans, and how our drive to raise productivity and transform the economy begins to bear fruit, even as much remains to be done.

As we celebrate our bicentennial year, we should count our blessings of a strong economy, a united people and the enormous advantages this presents in enabling us to chart our future confidently over the long term amidst a complex and volatile world. Our unique position contrasts starkly with many other countries. These include two of the world’s largest economies. I witnessed the anxiety and suffering of many American families resulting from their government shutdown, and the nightmare scenarios that the British people and businesses are contemplating in anticipation of the Brexit outcomes.

Sir, the generous measures in this Budget to help alleviate cost of living pressures are, indeed, timely. The MGP of $6.1 billion will provide half a million Singaporeans born in the 1950s better peace of mind in regard to their healthcare costs. The Bicentennial Bonus of $1.1 billion will provide additional help for broad groups of Singaporeans with their living expenses.

This year's Bicentennial Bonus follows last year's $700 million SG Bonus. This gesture of sharing surpluses with Singaporeans, whenever our finances allow, should be the regular feature of all future Budgets. There is no better way to build social cohesion than to share these upsides with the people.

Sir, Budget 2019 attempts to tackle many core issues facing Singapore, and I would like to focus my speech on the measures proposed to transform our economy and strengthen Singapore’s economic competitiveness.

The Finance Minister's vision of building Singapore as the Global-Asia node of technology, innovation and enterprise is very exciting. We can be very proud of the progress we have made in nurturing a flourishing startup ecosystem. We saw a significant rise in venture capital deals and the setting up of 150 global venture capital funds, incubators and accelerators based right here to support startups in Singapore and in the region. We invest substantially in scientific research, with $19 billion set aside for the Research, Innovation and Enterprise (RIE) 2020 Plan. We now have a huge pulling power to bring the global innovation community to Singapore, as witnessed by the success of the Singapore FinTech Festival. As a globally recognised leader of intellectual property (IP) protection and scientific research, we are, indeed, very well poised to fully deploy our strengths and make this vision a reality.

Sir, to support this vision, we should focus our support on startups in deep-tech with research-based IP at its core rather than just general startups, especially on startups with the potential to scale globally. We should also strengthen our funding strategies for our universities and research institutes to encourage multidisciplinary collaborations, including partnerships with corporates, to solve impactful real-world issues. The reward system for our researchers and academics should provide the motivations for them to supercharge commercialisation of research and development (R&D) and industry applications.

I am excited about the plans to encourage young Singaporeans to gain overseas working experience with GRTP. Such internships afford an eye-opening and mind-broadening experience that no amount of book learning can offer. Our youths, equipped with unrivalled education and multilingualism, will better understand our place in the world and how to make the most of it. During my own corporate days, overseas assignments were a key component of development programmes typically reserved for the selected top graduates only. So, I am very pleased that this is now readily available to many Singaporeans through the Government's support. My advice to our lucky young people is, "Go seize the opportunity!"

Going digital and automation continue to be big themes in Budget 2019. The call for businesses, big and small, to go digital is loud and clear. Many companies have highlighted skills and talent shortages as significant barriers for them going digital and adopting new technologies.

Sir, besides the basic digital skills for everyday activities, our push to go digital must include an expansive talent strategy, especially for expertise in high demand areas, such as quantum computing, data analytics, artificial intelligence (AI) and cybersecurity. The expertise and skillsets we need for this digitalisation drive are in short supply the world over. So, we must critically evaluate how Singapore can build a sustainable pipeline of local talent as well as attract the best of foreign manpower, in order to build the critical mass necessary for a thriving innovation hub. We cannot do this alone. We must also look around. We must benchmark our attractiveness to compete for these globally mobile talents with other established centres, such as Silicon Valley, as well as new clusters like the Guangdong-Hong Kong-Macau Greater Bay Area.

With ITMs covering 80% of our economy, their progress is central to our economic restructuring effort to foster innovation, boost productivity and develop skills of workers in their respective industries. Even with 23 ITMs launched, their contributions so far are unclear. The feedback from the ground is that the pivotal roles that industry stakeholders and Trade Associations and Chambers (TACs) are expected to play have proven to be uneven across industries. Far too few TACs are able to lead the development of industry-wide capabilities and help their members access local and international networks. There is really an urgent need for the Government to evaluate the partnership model and support structure of how the different Government agencies, TACs, industry players, unions and training providers can come together to accelerate deep capability development.

Sir, amongst the economic measures, I am comforted to see that the Minister for Finance has dedicated $3.6 billion to support workers across many schemes. Many lower-wage workers who previously earned just over $2,000 are rejoicing to see the WIS qualifying income cap being adjusted from $2,000 to $2,300 per month. WIS is a key pillar of our social security system. This enhancement will provide $1 billion a year to supplement the income of 440,000 Singaporeans. I would like to ask the Government to consider qualifying more low-income Singaporeans to this uniquely Singapore scheme. With the rise of the gig economy, more Singaporeans, young and old, are engaged in work without the security of regular contributions to Central Provident Fund (CPF) and healthcare support. So, keeping in mind the overriding social objective of helping Singaporeans with earnings in the bottom 20%, it really would make sense to offer a form of WIS to lower-income gig economy workers to also help them save for retirement and healthcare, encourage work and raise their income.

Mr Speaker, Sir, with regard to the outlook for our fiscal position, Budget 2019 is expansionary, with an overall deficit of $3.5 billion. The healthy fiscal surplus accumulated by this Government in its current term has provided significant room for the Minister for Finance to plan ahead. He set aside a large sum of $15.3 billion under Special Transfers, including $6.1 billion for the MG Fund and $5.08 billion for the Long-Term Care Support Fund, to meet Singaporeans’ long-term needs. This is on top of the FY2018 Special Transfers of $9 billion for future rail infrastructure and GST Voucher needs. This enviable financial position is made possible by our strong fiscal discipline, robust contributions from NIRC and a strong economy in 2017 and 2018.

With the accumulated surplus of about $18 billion from previous years, there is also an ample buffer for counter-cyclical measures should the global economy pose greater downside risks than anticipated. With the significant funds already set aside in the last two years for future healthcare and infrastructure needs, I believe we are now in a much stronger fiscal position than planned. This scenario, coupled with the Government’s differentiated fiscal strategy of using borrowings to fund major long-term infrastructure projects, should offer relief from the need for major tax increases in the near to medium term. I urge the Minister for Finance to maintain our current tax regime for a much longer period, postponing the unpopular GST rate hike for as long as possible.

Mr Speaker, Budget 2019 addresses many issues, none more urgent than the need to restructure our economy for the next lap. This is truly our "burning platform", and we must press on. Mr Speaker, I support the Budget.

Mr Pritam Singh.

Mr Speaker, this year's Budget caught the eye for its strategic purpose – to build a strong and united Singapore. Singaporeans from different walks of life would inevitably have different ideas on how best to achieve this, with perspectives and views shaped by one's values and sense of justice and equality. To that end, the Workers' Party is no different. Apart from the strategic objective of the Budget, three statements resonated strongly for me, each albeit in a different context. These were: first, developing our people on a lifelong basis; second, taking care of not just this generation but our children and their children’s generation; and, finally, that the changes ahead will be deeper and faster. My speech will use these overarching statements to cover areas where the Government should consider and reassess its approach to build the strong and united Singapore that all Singaporeans, not just the Government, must navigate towards.

First, "developing our people on a lifelong basis". Mr Speaker, on this broad idea, I will share my thoughts about the MGP. The ground feeling is that even though it helps our senior citizens with their medical bills, albeit less generously than the PGP, there are also quarters who conclude that it is pungently timed with the election cycle, giving off the odour of an unfair advantage aimed at the electoral prospects of the People's Action Party (PAP).

Another feedback I received about periodic benefits like the PGP and MGP is the inherent inequity for some of our senior citizens who, by virtue of their year of birth, stand to miss out on a few years of medical benefits because of the interval between one-time packages. Similarly, senior citizens who missed out on the more substantial PGP when they were between the ages of 60 to 64 in 2014 also feel that the eligibility age of 60 for the MGP is inconsistent with the PGP.

To address such feedback, the Government should introduce a basic level of medical benefits through a universal and permanent senior citizen healthcare package from the age of 60. Quite rightly, the MGP announcement has led some Singaporeans to enquire whether our Budget can support such a package for our senior citizens. There is good reason to opine that it can.

Firstly, the introduction of Temasek into the NIRC framework from 2016 brings an additional $5 billion a year into the mix instantly and about $25 billion across a 5-year term starting from this term of Government. Notwithstanding the greater spending needs of the Government that certain Ministers have raised in the past, going forward, the 35%-odd increase in the NIRC from 2016 goes some way to explain the healthy accumulated surpluses accrued to this term of Government from the Opening of Parliament in 2016.

Secondly, with Finance Minister Heng Swee Keat's announcement this year of new modalities of development funding through borrowing, does this development free up revenue to fund recurrent spending? If it does, it would appear that funding such a universal and permanent healthcare initiative for our seniors cannot be dismissed as dishonest, unreasonable or imprudent. Instead, it can and should be viewed as the key pillar of a strong and united Singapore.

To begin with, the centrepiece of such a scheme should be aimed at alleviating the out-of-pocket expenses for primary healthcare, so as to address cost of living for all Singaporeans from the age of 60. Here, the additional subsidies for common illnesses and chronic conditions for outpatient care and meaningful discounts off subsidised bills at polyclinics and specialist outpatient clinics should be its central features.

The additional components of both the PGP and MGP, such as top-ups to PAssion Silver Cards, MediSave top-ups and other specific enhancements, such as the participation incentive to join CareShield Life for other unmet healthcare needs, can turn on the fiscal position of the Government. This would also provide a sufficient buffer to allow each Government to look into addressing more unique healthcare needs of specific cohorts or categories of workers. They would include those that had taken up gig-economy jobs or, for example, to address the CPF shortages of workers who made sacrifices when the Government moved to cut the employer contribution of their CPF in 2003 to keep Singapore as a whole economically competitive.

In addition, it is axiomatic that immigration is a permanent feature of Singapore for the foreseeable future. A permanent and universal senior citizen medical package would also represent a critical symbol of integration among all Singaporeans who hold the red passport, and it would follow that the eligibility age into such permanent schemes should be dispensed with. This is particularly so as about 20,000 new citizens are added to the pool of Singaporeans on a yearly basis.

Mr Speaker, when the Minister speaks of "developing our people on a lifelong basis", this House should not underestimate the peace of mind a permanent and universal medical package can give not just to senior citizens above the age of 60, but to all Singaporeans throughout their lives. Indeed, to be constantly reminded that a covenant exists between the state and citizen. Vowing to assist all Singaporeans equally with their medical needs in their silver years augurs well for a confident and assured society, without compromising the work ethic.

This is especially so as living in a developed country with one of the highest per capita gross domestic products (GDP) in the world comes with costs, particularly for the sandwich middle-class. As all Singaporeans commit their best years and pay taxes like the GST to the state throughout their working lives, a permanent package that helps our seniors manage their cost-of-living issues in their golden years will inject a powerful message of unity into Singaporeans of all ages. My colleagues Assoc Prof Daniel Goh, Mr Faisal Manap and Mr Dennis Tan will speak more on the MGP in the course of this debate.

Secondly, I seek to share my views on the Minister's exhortation that the Government seeks to "not only take care of this generation but our children and their children’s generation".

Mr Speaker, there is little to quarrel with such a statement. It coheres with the values many Singaporeans hold dear, regardless of race or religion. But looking after the next generation puts the question of intergenerational equity on the table. During the course of his speech, the Minister confirmed the Government's intention to pursue a differentiated fiscal strategy – one for major infrastructure investment and another for recurrent social and security spending. But this strategy also implies that there is a limit to how much the current generation should pay for the benefit of our children and their children, too.

To this end, when speaking of specific infrastructure investments envisaged, the Minister only spoke of funding Changi Airport's expansion through borrowing, while speaking more generally about how the Government funded the first Mass Rapid Transit (MRT) line through borrowing as well. In comparison, at last year’s Budget, four separate infrastructure prongs were highlighted, and these included the expansion of our MRT lines, regional redevelopment including the Jurong Lake District, Punggol Digital District and Woodlands North Coast, the rejuvenation of our Housing and Development Board (HDB) flats and associated infrastructure and finally, Changi Airport Terminal 5 (T5), the Tuas Megaport and the now postponed High-Speed Rail (HSR).

I have a few clarifications in this regard. First, can the Minister clarify if borrowing from the market for infrastructure development is only limited to Changi's expansion or does it extend to the other long-term infrastructure plans shared by the Minister last year? Secondly, and as a consequence, how will this new differentiated approach announced this year impact future budgeting and, more specifically, revenue available for recurrent spending?

Mr Speaker, leaving a sustainable Singapore for our future generations would mean planning infrastructure for climate change and rising sea levels, a subject Minister Heng Swee Keat spent some time on.

At the COS debate in 2016, I filed a cut on rising water levels and shared with Members a video of waves breaching the foreshore along a beach at the East Coast Park, flooding the back shore. The prospect of raising our roads, port areas amongst others, sounds like a massive undertaking both in effort and expense, particularly when one does not just imagine raising road levels, but thinks about building kilometres of dykes and so forth. The Minister shared that while it was difficult to project such spending, some preliminary estimates had been carried out. Could the Minister provide a sense of these estimates, the financing approach and the infrastructure required for this purpose?

Continuing on the effects of climate change, how little is recycled and how much food waste is generated in Singapore, it is apparent that the conversation Singaporeans need to have on conservation has to be elevated. This objective should be an explicit goal of the Waste Masterplan. I look forward to the Masterplan and hope Singaporeans are sufficiently moved into action by it. In fact, like the Government's successful water story, closing the waste cycle would be a significant chapter of the Singapore story and provide a blueprint for other cities to consider.

The Minister also mentioned in his speech that greening is an important public policy, given our dense urban environment. A few weeks ago, Channel NewsAsia ran a one-hour documentary on the effects of rising temperatures in Singapore with an emphasis on not just climate change in general, but the perils of greater urbanisation, identifying the urban heat island effect, with the loss of open areas and secondary forests like Tengah likely to have an immediate impact on liveability in future. Researchers posited that greening, it and of itself, contributes little to mitigate the urban heat island effect. How does the Government and the upcoming Urban Redevelopment Authority (URA) Masterplan accommodate the drawbacks of greater urbanisation, particularly rising temperatures, and how does it gel with our desire to leave a liveable Singapore behind for our children and their children’s children? If the Government is not finished building Singapore, how will it ensure that this effort will not come at the expense of our green spaces? I hope the Government addresses this matter clearly and actively welcomes a future where we place far greater emphasis on environmental impact assessments and its attendant social issues with a view to leave a sustainable Singapore for future generations of Singaporeans.

Finally, Mr Speaker, the Minister shared that the "changes ahead will be faster and deeper". In this regard the Bicentennial offers a unique opportunity to reflect on the colonial experience, both the good and the bad, the choices made, and where we are headed as a people. As Singaporeans of the PG grew up through the 1950s and as the MG grew up in the years after self-government, the colonial masters in the United Kingdom (UK) had earlier taken a leap of faith, ambitious and bold, even if imperfect, implementing a universal healthcare system for about 50 million people as the flag of the empire was lowered across the colonies. The 50-odd years since decolonisation saw newly independent societies and governments fashioning their countries to improve the lives of their peoples. Not all succeeded to the same degree. The vast majority had to contend with extreme poverty and problems on a far greater scale and with a much larger population than Singapore's.

As we move past the Bicentennial and into unchartered terrain, our challenges will be far more unique and complex than before. The availability of good jobs for Singaporeans first will be at the heart of many conversations. Employers and SMEs, many of whom have delivered phenomenal economic success to Singapore in the past, will have to adjust and effect real change at the workplace for the benefit of Singaporeans. This would include redesigning jobs for older and more experienced Singaporeans, more part-time or half-day or work from home opportunities, so as to better support our workers from mothers to senior citizens and gig-economy workers. On its part, the Government must be prepared to do more to support businesses that do so with tax relief or rebates so that the economic transformation many businesses are undertaking is directly dovetailed to jobs for Singaporeans. My colleague, Workers' Party Chair Sylvia Lim, will speak more on the employment landscape tomorrow.

The faster and deeper changes premonitioned by the Minister would no doubt include the irreversible advance of the smart nation, the rapid evolution of technology and its disruptive and dislocative effects on jobs. But what this prospect also means is that Singaporeans must commit themselves to participate in civic affairs if we are to be united and strong.

Mr Speaker, Singaporeans have been referred to as champion grumblers. I disagree. Singaporeans criticise because we care about the country and we care about the direction it is headed. But we also care about ourselves and our families and friends and do not want to be shortchanged.

A strong and united Singapore will not be built with some Singaporeans being made to feel that they must conform or support the Government's narrative with little room for alternative views. This is a sure way of heralding not just a divided and insecure population, but a divisive conversation about the choices we have to make collectively.

Increasingly, as we move into the future, the Government will not have all the answers. Since the days of decolonisation, numerous countries have introduced some form of legalisation that promotes greater transparency and accountability. In fact, out of the 110 or so countries in the world today which host some form of a freedom of information law, about 80 introduced such legislation only in the last 30 years or so. While such laws are no panacea nor a silver bullet, they are but one piece of a larger citizen-centric ecosystem, which moves the needle forward on civic participation. If change is, indeed, going to be deeper and faster, then Singaporeans must be ready to become active participants of that process, with the Government facilitating conversations by sharing more information. For example, insofar as the Budget is concerned, enough well-meaning Singaporeans do not just want to take the Government at its word but want to crunch the numbers themselves and better understand policy tradeoffs, but they are not necessarily able to do so today.

Last year, an article in the Business Times put this quandary in stark perspective. It was appropriately titled, "Lack of data on Singapore's Reserves limits discussion on its use". With about 20% of our Budget financed by proceeds from our Reserves, one can understand why this issue is a relevant one.

Mr Speaker, there are many well-meaning Singaporeans who want to consider different roads for Singapore, without losing sight of the hard truth of being a country without any natural resources and with our human resource (HR) of fellow Singaporeans as the only real substantive competitive advantage. The Bicentennial offers us an opportunity to imagine the richness and breadth of conversations about the Singapore we are entering into in the years to come, a Singapore that is not just economically successful, but socially and culturally confident, too, with Singaporeans of all stripes proud to call it home.

In conclusion, Mr Speaker, many of the values that we hold dear – the importance of family, prudence, hard work and discipline – are all-weather values and must stand the test of time. These values must run through whatever future we envision for our children’s generation, wherever the winds of Global-Asia lead us and wherever we lead them. They must stand the test of time even if changes come thick and fast. They are at the foundation of the Singapore we all want.

But each generation must also be given the freedom to shape the future they seek and to feel that they are an integral part of the country. The Budget should reflect and facilitate this. The need for a confident population, as opposed to an insecure one, will be the "X" factor that determines how united and strong the Singapore of tomorrow will be. A confident population being one with more choices to determine its destiny; a society that accepts that it is only as strong as its weakest link and its most vulnerable; and a people – both employers and employees – all rooted to the Singapore that will always be home for us as we transit into our golden years.

Ms Denise Phua.

Mr Speaker, Sir, in his development and delivery of Budget 2019, our Finance Minister Heng Swee Keat, has lived up to his reputation of being both gentle and firm. This is a Budget that tries to uplift every Singaporean – the children, youths, seniors and, in particular, the MG. This is also a Budget that relentlessly pushes local enterprises and workers to step out of their comfort zone and build deeper capabilities to fend against the unforgiving disruptions caused by globalisation and technology.

I would like to speak on, one, the key pillar of our economy, the SMEs, which form 99% of all local firms; and two, the key pillar of our social service terrain, the VWOs, which, together with the public agencies, jointly deliver many of the social and even healthcare services in our country.

First, on SMEs, a key pillar of the Singapore economy, contributing about 50% of our GDP. In addition to creating wealth and jobs, a vibrant entrepreneurial spirit is a national asset that feeds a flourishing society. Hence, the responses by SMEs are important points of consideration in finetuning our policies or communications efforts.

There are two Budget features that I would like to touch on concerning businesses.

One is on the DRC or the restrictions on foreign manpower. It has been more than six years since foreign manpower dependence was tightened to drive higher productivity and redirect foreign manpower to higher tech-content businesses and also to protect the employment of our own local workers. However, whilst automation and digitalisation have helped industries, such as the construction and manufacturing sectors, the same cannot be said of the service sector. As Budget 2019 continues with the latest DRC reduction to 35% in 2021, sectors likely to be hit will be in hospitality, F&B services, the arts, entertainment and other lifestyle sectors.

I spoke to Mr Benedict Choa, the owner of Cube Boutique Hotel, which specialises in the capsule hotel model with its highly space-efficient yet comfortable bunk-bed accommodation in both Chinatown and the Kampong Glam vicinity. Ben, who has fully used up his foreign worker quota, primarily in the housekeeping department, has tried all means to transform his business model. He has found a new market niche in the highly space-efficient capsule hotel market. He has also automated his guest check-in system, and he took a leap with the Government agency, Infocomm Media Development Authority (IMDA), to install a communal dining ordering system in the Kampong Glam tourist belt. And Ben is all ready to employ any local staff willing to work if he only can find them.

This manpower challenge on the ground is also faced by larger service enterprises, too. Mr Andreas Sugaimin, Senior Vice President of Human Capital and Development of Pan Pacific Hotel group, in his efforts to employ local staff, has embarked on a programme to employ persons with disabilities. Despite this, the group is still short of manpower as shift jobs in his industry continue to be unpopular amongst Singaporeans. Andreas and his team shared that the pool of willing workers from Malaysia and China is shrinking. And these are the hard truths on the ground.

How does the Government encourage enterprises like Cube Boutique Hotel and Pan Pacific Hotel which are aligned with our national directions and yet still face manpower challenges?

Next, on the tiered support for different tiers, different types of SMEs according to size. Instead of broad strokes, a different tiered approach is explicitly adopted in Budget 2019 to provide different strokes of help to SMEs of different sizes. Hence, high-growth large firms get more dedicated support and account management to scale and internationalise, such as using the Scale-Up SG programme. Those in the mid-sized tier will get slightly less. And the biggest base, comprising many of the small and micro firms, are assisted through more plug and play solutions at mostly self-help platforms or the heartland SME Centres. So, very differentiated approach for different tiers.

Dr Sue Ann Toh and her team, one of my grassroots, recently started Novi Health, a small firm, a medical clinic and health tech company which combines clinical care with technology-enhanced holistic solutions, to prevent and manage diabetes and other chronic conditions. Sue Ann spoke to me about her team's wish to access a roadmap and a competent Tech Coach which will likely not be available in view of her startup size and in view of our strategy of differentiated support for different tiers of SMEs.

So, whilst differentiated support favouring larger SMEs makes sense as larger firms arguably give more returns to the economy and provide more jobs, all large firms themselves, however, started small, often with humble beginnings. How would the Government identify and nurture small startups which deserve a leg-up but which might be overlooked because of their being defined as a micro or small business?

So, I have further suggestions to help the SMEs, for the Minister to consider.

One, aggressively identify, train and develop a special workforce comprising senior citizens and persons with disabilities; two, incentivise SMEs through higher SEC to employ these special workforce members; three, provide a buffer foreign headcount for a duration if an employer guarantees the training and employment of, say, more than 10 local staff with disadvantaged backgrounds; four, update the pool of source countries to include countries, such as Myanmar, to allow employers to fulfil the DRC; and five, adopt and execute well a four-pronged process to nurture the largest base of small and micro SMEs, the largest base of most SMEs. And the four prongs being the 4As – Awareness, Affiliation, Action and Advocacy.

Many SMEs are still not fully aware of the purpose and slew of measures the Government has in store for them. That is for Awareness.

Those who are aware may not be convinced of the need to change and upgrade and will need to affiliate or buy in through a more impactful and regular targeted sharing of successful transformations in their specific industries.

And three, SMEs which are aware and willing to take action often find themselves burdened by daily operational demands and fires. My search on the SME Portal was interesting, but it was insufficient to develop a roadmap or action plan if I were running my own business. So, some way must be found to competently facilitate clusters of similar SMEs on a regular basis to adopt or to pluck some low-lying fruits together, such as shared services in HR, accounting and common industry-specific applications. That is for Action.

Finally, Advocacy, in this four-step process. Just as Dr Robert Yap from YCL Group has risen to become an advocate for transformation in the logistics industry, more aggressive efforts ought to be made for more of such evangelists to be profiled for the rest and its industry and to harness these advocates' ideas for further industry transformation. We need more of the Robert Yaps in the other industries as well.

Sir, moving even the smallest SMEs from Awareness to Affiliation to Action and to Advocacy in Singapore's enterprise transformation vision is a framework that the Government can consider.

Finally, on building a caring society and the role of VWOs. Sir, it is a known fact that the demand for healthcare and other social service to assist our disadvantaged is mounting in our society. Our Finance Minister had himself shared that these needs cannot be met by the Government alone and will require the rest of the society – the village – to join in the solutioning. Besides donors, one significant partner to the Government is the VWOs. Unless they are more financially independent, much of their time will be taken up to seek funds instead of strengthening their services.

So, therefore, I have three suggestions to enhance the financial independence of the VWOs so that they can provide more sustainable quality services with the Government. I propose that the Government:

further incentivise donors to Institutions of a Public Character by offering a 300% tax deduction provision for the Bicentennial Community Fund, similar to that implemented for SG50;

help VWOs further earn their own stream of incomes by allowing VWOs to invest in Singapore Savings Bonds, for instance. This is currently not permitted; and

invest. For Government to invest in and nurture VWOs with good track records and help them build social enterprises and other revenue-earning arms to reduce their dependence on Government grants and donations. Create platforms similar to the enterprise model that we see in the economy side, such as VWOs Go Digital!, Scale Up VWOs!, VWO Co-Investment Fund or even VWOs Go Regional! There is no reason why this sector cannot be more entrepreneurial and why they cannot spawn a MacDonalds' chain of sorts to create many more jobs for the differently-abled. There is no reason why they cannot set up e-commerce sites with plug and play solutions to market and distribute its own services and products. There is no reason why VWOs cannot start regional businesses offering much-needed training in social services, consulting services and disability management, for instance.

And since there is no way that the Government will be able to fund all the needs, it must find ways, like it does for the SMEs, to strengthen its VWO partners so that they, too, can be more financially independent and continue to be a strong service partner to the Government.

In conclusion, Sir, Budget 2019 is a comprehensive and sensible Budget. Will Budget 2019 make any major difference to the transformation of our country's business and social service sectors? I believe the devil is in the details and the key is in the execution. And I hope the Minister will consider some of my inputs. Sir, I strongly support the Budget.

Mr Darryl David.

Mr Speaker, Sir, it is against a backdrop of global economic uncertainty and geopolitical tension that Singapore is celebrating our Bicentennial in 2019. In recent times, waves of populism have swept across regions and countries, leading to the rise of nationalistic fervour, pressuring countries to adopt citizen-first policies and to implement protectionist trade measures over practices of global citizenship and internationalism.

Although trade relations seem to be improving between global giants China and the United States (US), the global economic marketplace and international political landscape are far from stable and certain. However, with uncertainty comes opportunity, and it is important for Singapore to continue to explore how we can continue to remain relevant and ready on the global stage, and leverage our strengths in multilateral and bilateral arrangements that benefit our country.

Sir, I would like to begin my speech by covering parts of the Budget that I believe supports this area.

First of all, supporting and enhancing the capabilities of our SMEs. SMEs continue to be the backbone of Singapore's economy, forming a significant number of all enterprises in Singapore, employing 65% of our workforce and contributing almost 50% of our GDP. I believe my Parliamentary colleagues Mr Liang Eng Hwa, Ms Jessica Tan and Ms Denise Phua had already made this point.

In the midst of economic uncertainty, our SMEs certainly cannot afford to be complacent and it cannot be a case of "business as usual" for them. I thus applaud this year's Budget for keeping our SMEs in mind, and for putting in place measures that help them grow, especially to develop digital capabilities so that they can eventually cut down on the reliance on foreign manpower.

Schemes like the SME Co-Investing Fund III and the Enterprise Financing System are aimed at giving our SMEs a leg-up by improving their access to public and private funding so that they have the much-needed liquidity to import the latest technology, grow their businesses, and possibly eventually spread their wings beyond Singapore.

I would strongly urge our SMEs to continue to tap on schemes like the Go Digital programme and Digital Services Hub to scale up on their digital solution capabilities and shore up their competencies in the area of the Internet of Things as well. This would allow them to revamp their business model so that they could find their own niche in the midst of the evolving global economic landscape.

While the Government enables the financing system to help catalyse the growth of SMEs, I would urge International Enterprise (IE) Singapore do more perhaps to help our companies make their mark overseas, and to further enhance the Made in Singapore brand regionally and globally.

Can IE Singapore do more to help identify areas of growth and help groom our local companies to develop capabilities in those areas? The development of Centres of Innovation in Aquaculture at Temasek Polytechnic and the Energy Centre at the Nanyang Technological University (NTU) have helped to synergise the R&D know-how of our Institutes of Higher Learning (IHLs) with industry-led innovations to commercialise cutting-edge solutions. Can this be a model that IE Singapore can further explore moving forward? Can more such centres and incubators be created to spearhead growth in other areas?

I would like to move on to the topic of defence and security.

Recent developments in the region have shown that it is important for Singapore to have a credible defence force and to enhance our capabilities against cyberattacks. Mr Bilahari Kausikan put it adeptly at a recent public lecture that a strong and capable defence is Singapore's only leverage on the international stage, giving us an equal footing and bargaining power against other nations.

While much of the talks have focused on building our external defences, let us not forget to stay vigilant with regard to our internal security. As the Chinese saying goes, "it is easy to parry a spear thrust in the open, but hard to dodge an arrow shot in the dark." While we can prepare and defend ourselves effectively against any form of external aggression, internal aggression by an enemy in the dark will always be the one that could catch us offguard. So, we thus need to maintain our vigilance against any potential acts of terror on our soil that might rear its ugly head from time to time. Our SGSecure initiatives must thus continue to be strong.

Very often, Mr Speaker, Sir, much more damage can be done by attacking the digital and cyber network of a country than attacking via a method of conventional warfare. Consider examples of how cyber terrorists could wreak havoc and create massive damage if they gained access and control of key services, such as our emergency services, airports and transportation networks or key installations like power grids. So, I am heartened that the Government has introduced a sixth pillar of total defence – Digital Defence – to combat this cyber threat.

I am thus in favour of the proposed spending on defence as I strongly believe that we need to ensure that we stay safe and secure always. Without robust international defence and domestic security, all our significant economic progress and social development would be significantly threatened and that would have grave consequences for Singapore.

I now would like to focus on a caring and inclusive society.

Singapore has always adopted somewhat of a centre-left policy structure and we must continue to take necessary steps to look after our citizens. The current ComCare scheme, for example, is useful in the way that it is meant to provide short-term support, but it does have its shortcomings.

At my Meet-the-People session, I have often encountered residents who need a little more support beyond what is presently available to get back on their feet. Although the ComCare short-to-medium term assistance that was rendered to them could be extended when needed, the process of putting in the repeated applications for extensions could be discouraging and demoralising for these residents who are already assailed by multiple challenges. As such, I am looking forward to the ComCare Long-Term Assistance scheme that will help provide a longer-term guarantee to help those who need more support, especially those who are unable to work due to unfavourable conditions and circumstances.

I would like to especially commend the Finance Minister and the Government for the MGP that recognises the contributions of the generation that lived in a period of uncertainty during Singapore's early Independence and who committed their lives to Singapore, often at significant personal sacrifice.

All of us here, Mr Speaker, would either have relatives or would know someone from the Mederka Generation, and one such person is one of my residents, Mr Sreevardhanan Vasu Pillai, or as he is known in our community, Mr Sree.

Mr Sree was born in 1951 and brought up in a kampung in Sembawang. As his father was the sole breadwinner supporting a family of eight children, Mr Sree entered the workforce after his Senior Cambridge Certificate, working as a bicycle mechanic while enrolling at Lembaga Gerakan Dewasa Pelajaran (Lembaga) which was a night school set up by the Ministry of Education (MOE) for workers seeking to upgrade themselves.

In 1969, he was called up to report for National Service as his request for a deferment to complete his studies was turned down. Mr Sree was eventually commissioned as an Artillery Officer in 1971 and he always speaks of his period of National Service with a great source of pride. As he himself says, and I quote, "I was very proud to be in the Artillery Battalion. The training I underwent in National Service was very tough, but having lived in a kampung within a big family unit, I was able to tolerate the training regime. Along the way, I made many friends and they remain a source of strength for me up to today. The early batch of National Servicemen were considered the Pioneer guardians of Singapore." That is a wonderful tagline actually to tag for our early National Servicemen, the Pioneer guardians of Singapore.

Mr Sree then went on to join the Port of Singapore Authority as a clerk and, through continuous upgrading and learning, worked his way up to becoming an Operations Officer. In 2018, he retired from PSA after more than 45 years with the company. I think to some in our younger generation, that seems like an eternity. Forty-five years of loyalty to this particular company. This also included an eight-year stint in India that he saw as a form of "National Service", as felt he was part of a strategic initiative to develop a Singapore company overseas.

There are many men and women like Mr Sree who have shown the grit and resolve to not only contribute to the defence, economic growth and societal development of a newly-independent Singapore, but managed to upskill and upgrade themselves along the way, while also somehow finding time to raise a family.

These remarkable men and women are responsible for the trees that provide the shade that we are all now enjoying and I would urge the Government to review the MGP from time to time, and to top-up the benefits whenever we are able to so. I believe that this would give the MG peace of mind that their needs would be attended to and they would be looked after during their silver years.

Mr Speaker, Sir, I began my speech referencing Singapore’s Bicentennial and how we can continue to maintain our relevance and importance in the global landscape. Singapore has, indeed, come a long way since our founding 200 years ago, and we have survived several existential crises in the process.

As we celebrate the Bicentennial, I hope that we can all also take some time to think about not just where we came from, but where we are going to next. Let us embark on the search for deeper meaning behind what defines Singapore, our goals as a Country and our purpose as a People as these are important fundamental foundations and would certainly help our future generations remain anchored and rooted in the values that have brought us our success.

Senior Minister of State Heng Chee How.

Mr Speaker, Sir, thank you for allowing me to join this debate. I listened to the Finance Minister's speech and noticed that he pointed to the role of unions, the crucial place of workers, many times in his Budget Speech. Therefore, it is true that we must continue to put workers at the heart of all we do. I thank Minister Heng Swee Keat for this.

My fellow Labour Members and I will speak up for the different segments of our working population. The common point that we want to make is that every worker matters to the overall good of the economy, society and country.

I will focus, as I have done over the years, on the mature working population. I would frame the context of my speech by making two points.

First, we are running into predicted headwinds as far as economic growth is concerned because of population and workforce trends. If we do nothing, our ability to generate national wealth to invest in the future and fund the welfare for the present will face problems, and inequality in our society will grow.

It is, therefore, crucial that we focus attention in this debate on how we can continue to grow this national economic pie.

Second, that by taking the right coordinated steps, we can turn threat into opportunity, continue our ability to grow economically and cohere better socially. This is the practice of social and economic defence.

For a few years now, we have been reminded that the local workforce in Singapore will plateau from around 2020, which is just next year. In other words, based on current employment and retirement rates, the incoming local workers will just be about enough to offset and replace the retiring workers, and there will be zero net growth in the local workforce.

So, one may ask, "What if that happens?" Well, GDP growth is the sum of the growth of productivity and the growth of manpower.

Thus, if the manpower growth component becomes zero, then GDP growth, which is how national resources are ultimately generated for use to care for Singaporeans, can only come from productivity growth. So, you have productivity and manpower, and if you get zero on the manpower side, then it is like flying a plane with one jet engine shut down.

Obviously, we would do better not to let manpower growth become zero. The question are: how do we do that? Where do we get the manpower from?

One way of looking at it is that we have four manpower taps.

The first one would be school leavers coming out of school and entering the workforce. What about these school leavers? To all intents and purposes, these were the babies born about 20 odd years ago. So, whatever those numbers are, it was already preset about two decades ago.

The second source is, indeed, productivity, and that is done through better work organisation, better design, technology, equipment and skillsets. And this is what Industry Transformation is about. By becoming more productive, the same number of people can create more economic value through their work, and this is very important and it is the other jet engine to fuel our growth.

The third source is foreign manpower. About one in three persons in Singapore’s workforce is a foreigner. It is obvious that we have to judiciously manage the size, mix and growth of this manpower source so that while we benefit from their important contributions, Singaporeans have a fair go at opportunities and prospects at all times.

In other words, we cannot just open the floodgates to foreign manpower in order to solve our zero net local workforce growth challenge.

Therefore, we have to look very carefully at the fourth tap, and the fourth tap is: how do we make the best use of our local population in the working ages, both those currently working, as well as the latent pool waiting to be activated for work.

Mr Speaker, Sir, prolonging the work years of those currently working was precisely the reason why I called for tripartite discussions to review the long-term retirement and re-employment ages in the Budget Debate last year.

I am grateful that the Ministry of Manpower (MOM) has convened a Tripartite Workgroup on Older Workers to review retirement and re-employment ages and to consider adjustments to the CPF contribution rates for older workers. The Workgroup has been carefully considering these important and difficult topics, and there is much work ahead.

I am also grateful to the Finance Minister for extending the SEC and the Additional SEC so that mature workers’ cost-effectiveness continues to be reinforced.

There is more, however, that we can do besides reviewing the retirement and re-employment ages in order to get the best of our mature working age population.

Sir, when Singapore started industrialising in the late 1960s and 1970s and our economy needed manpower, that posed a challenge as to where that additional manpower would come from. At the same time, that challenge also offered an opportunity for households to increase their incomes and living standards and for Singaporean women to become more financially resilient.

There was a hurdle, however. Many women at the time were full-time housewives, having to look after the children at home while their husbands worked to provide for the family. How are they to go to work? Who is going to look after the children?

So, the basic transformation then was the scaling up of childcare provision. Parents could entrust their children to childcare in an affordable and accessible manner. That liberated the women from being stuck with no choice, to being able to choose to work.

At the same time, the economy got the additional manpower it needed. The country grew its wealth and could better afford to invest for the future and to care more for those in need.

And because Singapore took coordinated steps then to overcome that obstacle, the Singapore economy and our society are better off today, both in living standards and in having less inequality than if the women did not have the choice to work and to earn.

Sir, Singapore now faces a similar challenge to reactivate our latent working population to fuel growth and to meet short-term and long-term individual and societal needs.

According to MOM's Labour Force Survey 2018, there are close to 170,000 female residents aged between 40 and 59 in Singapore who were not working. Of these, around one in five, or about 33,000, of them cited caregiving to family members or relatives, excluding childcare, as the main reason for their not being at work.

Now, 33,000 is the equivalent of one year's birth cohort. And if we add to that caregiving that is cited as a secondary reason for the rest of that 170,000, net of the 33,000 citing caregiving, excluding childcare, as another important reason for their not working, then we are really talking about very substantial numbers. This leakage of national potential will grow as the Singapore population ages further, and more caregiving needs emerge within families.

At the same time, companies across many industries are facing a tighter labour market and crying out for manpower to meet their needs, and many Members of the House spoke about that just now.

So, there is a structural mismatch between the supply of and the demand for manpower, and it is not just a technical problem because there are profound social and financial consequences for the individual, family, economy and country if a large and growing pool of middle-aged Singaporeans is unable to earn for their immediate upkeep and retirement needs. This will then fuel inequality, and it will erode social cohesion.

The question then is: how do we turn this socio-economic threat into a dividend that will benefit all?

A 2017 survey by the National Trades Union Congress' (NTUC's) U Family Secretariat of 529 stay-at-home women aged between 25 and 54 found that two in three of them were keen on returning to the workforce, if only suitable part-time or flexible work arrangements (FWAs) could be found to allow them to balance between earning an income and undertaking caregiving.

It is, therefore, clear that in order for this pool of latent workers to be activated, we need three key breakthroughs.

Firstly, we must establish what the requirements are for accessible, affordable eldercare provision in the community so as to relieve these 33,000 or even more caregivers to be available to undertake work, or at least part-time work if not full-time work.

Current capacity buildup and funding plans for such provision, be it for senior activity, senior day-care or live-in care, is mostly predicated on the expected health and social needs of senior care recipients. Considerations of how to relieve and liberate their caregivers to be able to choose to work are not central.

So, this review must look at that and must also consider whether the funding model for service provision can ensure that supply is sustainably built up at the pace that is required. Here, I would also want to borrow the point from Ms Denise Phua earlier when she spoke about VWOs to become even more financially viable and so on as they undertake the important work because many of the providers in the eldercare sector are, indeed, the VWOs and social enterprises and so on. So, the sustainability of the funding model is actually very critical as we scale it up.

Secondly, assuming that the effort to provide the care and to relieve the caregivers succeeds, then where can they find work and what can they find?

This is a critical question, because if supply of manpower is increased without a corresponding increase in the demand for manpower or increase in absorptive capacity, then it will not solve the problem, but will, in fact, raise the frustration and just increase the unemployment rate.

Earlier, I pointed to the U Family survey that showed a high proportion of caregivers wanting part-time or flexi-work. This also means that if more companies have such options for their workers, many of those who had to quit to care for family would have been able to stay on in work, thus continuing to earn and provide better for their immediate and longer-term needs, and also supplying the manpower on a continual basis to the companies.

But when we look at the Singapore labour market, it has long been based on primarily the full-time staffing model.

Comparisons of full-time employment rates for mature workers of ages between 55 and 64, comparing Singapore with the Organization for Economic Co-operation and Development (OECD) countries, it places us at about the 10th position with respect to our full-time employment rates for this group of 55 to 64. But when we look at the part-time comparisons, then we go down to the 23rd place, comparing with the OECD countries. These are 2017 figures.

So, this tells us that most Singaporean companies may not have yet learnt how to ably utilise and integrate part-time and flexi-work options into their mainstream manpower model, or are also perhaps unwilling to do so.

And this is so despite years of promoting flexi-work arrangements (FWA) by the tripartite partners at both the national and company levels.

I note with interest that there is an article in today's Business Times entitled "Payoffs in productivity, engagement and creativity make flexi-work a worthwhile goal". In there, there is a paragraph that says, "A closer look at the data shows that although 93% of Singapore organisations offer flexible work, in only 21% is it offered broadly across the organisation. Flexible work needs to be implemented and not restricted in order for it to work".

Therefore, a thorough review of how part-time work and flexible work options can become integral to the mainstream staffing models of Singapore companies, alongside the traditional full-time work model, is needed.

We also have to determine how to set expectations of HR practitioners in Singapore, so that they can then pick up and have the competence to operationalise this and make this work for companies, and to work well for companies.

We have to investigate mindsets, close knowledge gaps and consider incentives in order to open the way and grow the capacity. We can learn much from advanced economies like the Netherlands and Japan in this regard, as they have been able to achieve high employment rates for both full-time and part-time work. In other words, they are able to more fully activate their mature working populations.

So, it is not just a question of substituting full time for part time. Keep the full-time work rate high. But increasing needs, so how do we then introduce and enable this latent force, which is looking a lot for flexible and part-time work, to enter?

Success will only be achieved when potential supply is matched to potential demand. This matching is not trivial, and the outcome does not happen on its own.

Today, more than 40% of jobseekers above age 40, as helped by e2i, are successfully placed mostly into full-time jobs. Therefore, we must identify sectors and occupations with good relative prospects to achieve strong placement outcomes for flexi, part-time work as well. We must also see whether training and placement mechanisms for part-time work may be different from those for full-time work and, therefore, what may need redesigning.

Mr Speaker, Sir, I call in this year's Budget for a tripartite effort to, firstly, examine and ascertain the requirements for sustainable senior care provision so as to enable the activation of the latent mature manpower pool.

Secondly, to determine how fair and flexible work, especially part-time work, can be structured and pervasively incorporated into mainstream company staffing models, and to clarify the role and competencies of HR practitioners in this endeavor.

Thirdly, to determine how training and retraining and job matching methods should be adapted to achieve significant improvement in the placement rates into part-time jobs for the targeted returning stream of mature working age Singaporeans, many of whom currently have to make the stark choice between working and caregiving.

In doing so, Mr Speaker, we will stay alert to structural trends. We will then maximise our chances of staying a "one united people" that will, together, "achieve happiness, prosperity and progress". I support the Budget.

Mr Zainal Sapari.

Mr Speaker, every worker matters. As our society becomes more affluent, many of us are concerned with the plight of low-wage workers. Many of us have heard of the phrase "It takes a village to raise a child". In the same vein, I say that it takes everyone in society to help low-wage workers! Everyone, regardless of whether you are in Government, an employer, a service buyer or a concerned citizen, must realise that we all have a part to play to uplift the lives of our low-wage workers.

This year’s Budget is pro-worker. NTUC applauds the Government for its continuous efforts to help low-wage workers. We welcome the enhancements to the WIS scheme. Perhaps, the Government may want to consider increasing the cash-to-CPF ratio to put more cash in the hands of the low-wage workers to help them better meet their immediate needs, without impacting the allocated budget.

While NTUC continues to rally our workers to upskill, I believe that an important next step would be for the Workforce Skills Qualifications (WSQ) courses to be reviewed. NTUC stands ready to work with the industry stakeholders, training providers and SkillsFuture Singapore (SSG) to ensure WSQ courses are comprehensive and flexible to suit the needs of the industry.

Our Government and employers have been very supportive of the Progressive Wage Model (PWM), and this has translated to real outcomes for our cleaners, security officers and landscape workers. NTUC hopes to see more industry stakeholders coming forward to work with the Government and NTUC to develop PWMs for their industries. Coupled with WSQ modules being made more relevant, it would be a sustainable way to raise the wages of our workers.

In this year’s Budget, NTUC welcomes the condition to have positive outcomes for workers as a core criterion for companies to tap on the EDG. NTUC is encouraging companies to work with their union leaders to set up training committees to identify training that will equip workers with the relevant skills for sustained productivity increase.

Although my previous call for better medical benefits under the Employment Act did not materialise, I welcome the enhanced CHAS subsidies and hope that MOH will allow CHAS cardholders to receive subsidised healthcare treatments at polyclinics even if referrals are made by CHAS-approved private clinics.

Mr Speaker, I believe service buyers can do more. Service buyers have a key role to play in uplifting the lives of our low-wage workers. NTUC has been encouraging them to adopt Outcome-Based Contracting and to place greater emphasis on quality attributes rather than contract prices. Adopting progressive procurement practices will ensure more favourable outcomes for all, including better welfare for our outsourced low-wage workers. What are these progressive practices?

First, contracts should specify service outcomes instead of headcounts and be evaluated more holistically based on the price-quality method, where quality has a higher weightage over price. Service buyers should avoid cheap sourcing which would lead to service providers undercutting one another in order to win contracts. Because with low margins, service providers are unlikely to provide better staff welfare beyond the statutory benefits.

Second, service buyers should consider longer contract periods. This would incentivise service providers to invest in technology since they can amortise cost over a longer period. Technology makes work easier, smarter and safer, leading to better service outcomes and higher productivity. In addition, it gives outsourced workers greater job security. Service buyers can also consider aggregating their demand to potentially enjoy economies of scale and more efficient manpower deployment.

Third, service buyers should treat their service providers as partners instead of mere contractors. They should ensure that their contracts have fair clauses and avoid unreasonable liquidated damages. When service providers have fair contracts, they are more likely to do a good job and train their workers to deliver higher service standards. Otherwise, workers would usually bear the brunt of bad contracts. This happens when service providers find ways to minimise cost at the expense of workers' welfare.

Finally, when contracts are renewed, service buyers should consider the experience of the incumbent workers as well. These workers are more experienced and familiar with the job requirements. Thus, in awarding a new or renewed contract, service buyers should ensure that incumbent workers’ wages and benefits are not worse off than before.

NTUC hopes to see more Government bodies take the lead to adopt these Outcome-Based Contracting and progressive procurement practices. Our unions have been working closely with the industry associations to engage buyers and catalyse this on the ground.

Besides this, service buyers have a moral responsibility to look after the welfare of their outsourced workers. This includes the area of training, allowing service providers to send their workers to attend training without requesting for headcount replacements, and workplace welfare.

Therefore, I call for building owners or service buyers to provide designated rest areas for their outsourced workers. I am sure if workers are treated well, they will put in their best efforts to deliver quality service. To lead by example, I call upon all Government agencies and related bodies to ensure proper rest areas are provided for outsourced workers. The unions can work with building management to propose solutions for proper rest areas to be built.

On the part of service providers, NTUC has been vocal against the practice of price undercutting or suicide bids, because when service providers have difficulty maintaining the contract subsequently, it is their workers who suffer. Service providers should not gamble on their workers’ wages and welfare and hope that the contract they won through price undercutting will bring them profit. I urge the Government Ministries and service buyers to keep a lookout for price undercutting and exclude such service providers from getting contracts.

NTUC has been instrumental in the recent changes to the Employment Act and the introduction of Tripartite Standards. We have been active in encouraging companies and service providers to adopt the tripartite guidelines and standards which promote fair and progressive employment practices, which have also helped to make working conditions better for low-wage workers. We hope that the Government will only do business with companies that have adopted these tripartite standards.

Mr Speaker, workers must embrace training and technology. Low-wage, vulnerable workers must also help themselves to earn better wages through upskilling and knowing their employment rights. NTUC has been urging our workers to "train up to keep up" and "skill up to move up". We want workers to embrace the adaptive technology and technical skills relevant to their industry to become Worker 4.0, hand-in-hand with Industry 4.0.

With the huge training subsidies provided by the Government, the onus is also on the workers themselves to seize the opportunities available.

Finally, society at large can make a difference. Let us not take for granted clean, green and safe environments that we work, live and play in every day. These are not a given. They are the result of a lot of hard work put in by our cleaners, security officers and landscape workers.

As individuals, we can show our appreciation to them with simple acts. Return our own trays at the food centres; greet and give them a smile when you see them. Do not litter and do not think that you are doing them a favour by creating work for them. These acts do not cost us a thing, but they can go a long way in brightening up their lives. Make it our habit to care. A gracious society does not happen by chance. It is up to you and me to make a difference. Mr Speaker, in Malay.

(In Malay): [Please refer to Vernacular Speech.] Every worker matters. Helping low-wage workers should be everyone’s responsibility. In this Budget, the Government has increased the payout under the WIS scheme and provided other forms of assistance like CHAS and training support.

It is important that service buyers and service providers conduct their business honestly and fairly so that low-wage workers can enjoy better salaries and a better working environment.

Low-wage workers should also take up opportunities that are available to enhance their skills, especially in the application of technology. I would also like to encourage the public to be more considerate by lightening the workload of low-wage workers.

Many of us are perhaps unaware, but in our daily duties and lives, we can play a part in helping our low-wage workers earn a living with dignity.

(In English): Mr Speaker, let me conclude. As a society, we are judged by how we care for the less fortunate. Helping low-wage workers earn better wages, gain better welfare and be shown greater respect is not the responsibility of the Government alone. It is our collective responsibility to create a better society, one that is inclusive and caring, and one that ensures all workers feel a sense of belonging.

Whoever you are, do what you can, and with whatever you have to help a low-wage worker live with dignity. Every Worker Matters. Mr Speaker, I support the Budget.

Mr Ang Hin Kee.

Mr Speaker, the Minister for Finance spoke on the need to develop deep capabilities and how our Singaporean talents have been making their mark in various fields, and how connecting with other highly skilled individuals from around the world have made us even stronger. That has been most aptly portrayed by how our freelancers have contributed to the successful making of the Hollywood movie “Crazy Rich Asians”. They have also benefited from collaborating with global talents in this regard.

Let me declare my interest as a Director in charge of the Freelancers and Self-employed Unit in the NTUC.

Freelancers have responded positively to the Minister for Finance's message on how the Government will help workers deepen capabilities and seek new opportunities. I will touch on this in the first part of my speech and thereafter on the impact of diesel tax.

Today, one in 10 workers are self-employed or freelancers. The emergence of digital platforms has created more options and easier access to an alternative or additional source of income. However, freelancers that we spoke with cited challenges, such as loss of income due to prolonged illness or injury, training gaps and unclear contracts. The Tripartite Workgroup formed by MOM has come up with recommendations to address these concerns. Some ideas implemented have had good traction, but we can do more and do it faster.

A case in point is the formation of the National Instructors and Coaches Association (NICA). It was registered with the Registrar of Societies and became an affiliate of NTUC just last month to represent the interests of freelancers who teach sports, enrichment and wellness. Because every freelancer matters, NTUC and NICA's first piece of work is to collaborate with insurers to offer Prolonged Medical Leave (PML) insurance to instructors and coaches.

In fact, a member recently suffered an injury and was on medical leave for two months. Previously, he would have to rely on his own savings. But with the insurance cover, the payout enabled him to receive income during his recuperation. However, not many have taken up such a policy as they fear losing out on bids if not everybody takes it up. This is one area where Government Procurement entities can encourage freelance bidders to be protected.

In January this year, the National Private Hire Vehicles Association (NPHVA) worked with ride-hailing operator Grab to help their active drivers enjoy free Prolonged Medical Leave coverage. I am also the Executive Adviser for NPHVA and, this morning, we managed to get, together with the help of MOM, GOJEK to also offer similar product protection for their driver partners. I hope all operators will do the same for all taxi and private hire drivers to be covered under such insurance coverage. To this end, I would like to appreciate the efforts by MOM and the Land Transport Authority (LTA) to engage these operators. It is actions, such as these, that will affirm their assertions that drivers' interests matter to them.

I feel that Budget 2019 is pro-worker with initiatives like the GRTP and the Professional Conversion Programmes (PCPs) to help workers with skills upgrading and to move into new growth areas. Freelancers also want to participate in these initiatives. They do not have easy access to courses and support. It can be extra daunting if they work in specialised fields where there are few local providers or experts. Typically, for them, training is also self-funded. Potential loss of income when they attend classes also deters some from attending such training.

But we have had some early successes in providing training support to them with the help of some Government agencies and NTUC Learning Hub. For example, we contextualised first-aid courses for outdoor learning and adventure instructors. We also customised SkillsFuture for Digital Workplace training for taxi drivers and sports coaches. Masterclasses and workshops were also co-organised with freelancer associations. We hope to receive more help even as we intensify our efforts to deepen the competencies of more freelancers.

We are glad that there are initiatives like those by IMDA to develop the media sector skills framework. IMDA also provides training allowance to alleviate the loss of income when media freelancers attend approved training. I hope that other Government agencies will quickly put in place skills frameworks and training allowance for freelancers in sectors under their purview.

We have also made some progress in technical training for individuals like riggers – those who set up lightings and sound systems on ceilings and walls – and boot camps to equip new media freelancers on how to go about submitting quotations and how to go about training and deepening their own competencies. This also includes upstream efforts with MOE’s Education and Career Guidance officers. Together, we co-curate sessions where youths in tertiary institutions can get a clearer picture as to what a freelance career entails.

Mr Speaker, Sir, young freelancers shared that they want to be a part of the GRTP. They, too, want opportunities to gain working experience overseas. We hope that the Ministry can consider partnering us and freelance associations to send our young freelancers to key regional markets. We in the NTUC also stand ready to select and prepare young workers from among unionised companies, especially those who have displayed leadership skills, to gain overseas exposure so that they can support our unionised firms’ expansion plans.

Freelancers and self-employed persons (SEPs) are often frustrated by late or non-payment for work done. Sometimes, they have to deal with buyers who exact additional demands beyond the agreed scope of work. Usually, disputes arise because the agreed terms are not documented or when the contract terms are vague.

MOM recently reported that 500 companies have adopted the Tripartite Standards when contracting with SEPs. I am glad our joint efforts have seen some early take-ups. The standard helps.

However, I also want to applaud the MOF team in getting all Government Procurement Entities to adopt the Tripartite Standards. Let us encourage more to do so, especially the recipients of transformation efforts supported by Enterprise Singapore’s EDG.

I would also like to thank the MOF team for guiding freelancers to navigate Government procurement procedures. Many would like to tender and bid for projects offered by the Government, and I am happy that we will next co-produce with MOF a brochure with information on procurement procedures and practices so that freelancers know how to provide and bid for Government projects.

Mr Speaker, the second part of my speech deals with the impact of diesel tax. The Minister for Finance's announcement that diesel duty will be increased has caused much concern among taxi drivers. Taxi drivers wished that the Government can provide more support to help them manage higher operating costs. Why is that so?

First, while there is some rebate to cushion the impact, they need more assistance. The average cost increase even after the $850 rebate is about $2 to $3 or up to $4 per day because they use about 50 litres of diesel a day if there are two shift drivers of the diesel taxi.

We have called upon taxi operators to help beyond just passing on this diesel rebate that the Minister has offered to the drivers. In fact, why is it that they can do more? It is because, firstly, they can consider reducing the daily rental of the taxis which, today, ranges from about $110 to $120. They can also consider cutting pump prices because they offer pump stations to their drivers. They themselves operate the pump stations. So, very different from other businesses. When their costs increase, taxi drivers cannot pass on this cost increase to commuters because they also do not set the fares of the taxis. The fares are set by the operators. The type of vehicle is selected by the operators. I cannot choose between vehicles A and B because you have 16,000 diesel vehicles that the taxi drivers choose from. So, if the operator offers non-diesel taxis, then the taxi driver would not have to incur this additional diesel tax.

So, a lot of the conditions seem to be favouring the operator or beyond the control of the drivers. I urge the Ministry of Transport (MOT) and MOF to look at taxi licence operators implementing positive outcomes for workers to form part of the licensing criteria.

Perhaps, if the operators are not keen on doing more, the Government can consider issuing fuel pump licensing rights to the unions. We can then appoint the appropriate operator who will sell fuel at the right price to members and manage them manage costs.

Mr Speaker, Sir, personal responsibility in making well-informed choices about contracting practices, protecting against contingencies, for example, buying insurance, and planning for future needs remain core principles for freelancers. However, support from the Government in training and setting the tone for all buyers will be an important boost. I urge business buyers and operators to also offer freelancers a fair and reasonable deal. That is a Budget outcome that will matter most to freelancers. With that, I support the Budget.

Mr Melvin Yong.

Mr Speaker, Budget 2019 has been billed as a strategic plan aimed at building a strong and united Singapore. I am glad that the Minister for Finance has acknowledged in his Budget Speech that strengthening Singapore's economic competitiveness is an ever-continuing journey and there is more that we can do to support Singaporeans on this journey. My speech today will focus on two areas which I think we can do more, especially for working Singaporeans – in Training and in Workplace Safety and Health.

First, all of us in the Labour Movement are heartened to hear that the Government will be dedicating $3.6 billion towards helping our workers thrive and adapt to industrial and technological changes. With the increasing pace of technological advancement, we must ensure that workers – be it those in multinational corporations (MNCs) or those in SMEs – are able to tap on training opportunities and ensure that they continue to stay relevant amidst the Fourth Industrial Revolution.

From the feedback that I have received in my weekly visits to workplaces and through speaking to a broad spectrum of blue- and white-collar workers, I have identified three key challenges facing our workers when it comes to training. They are course, cost and time. Let me elaborate.

The first challenge that workers face comes when selecting their courses. The Government rolled out the SkillsFuture initiative to encourage a culture of lifelong learning. This initiative has done well, with about 465,000 Singaporeans benefiting from SkillsFuture Credit training subsidies. However, there is an overemphasis on having a breadth of courses available, rather than having in-depth SkillsFuture courses to help build mastery in the domain. Some have also given me feedback that the process of course selection can be disheartening, especially when they find that a course offered by a polytechnic or university is not eligible for reimbursement by their SkillsFuture Credit.

The second challenge is cost. The $500 SkillsFuture Credit offered by the Government may not be sufficient for a variety of reasons. Many courses cost more than $500 and, often, going on a single one-off training course would deplete one's entire SkillsFuture Credit account. Many workers do harbour hopes of returning to school to get that diploma or degree that they did not pursue when they were younger. But the cost of these courses can be prohibitive, as they are no longer eligible for the same subsidies enjoyed by our young Singaporean students.

The third challenge is simply the lack of time. Many working in the SMEs tell me that they do not have time to go for training as their organisations are already so manpower-lean. Those in the MNCs do not have it easier either. They tell me that while they are given the time to go for training in the day, they end up pulling what they call “double shifts” – having to still complete their work at night after class, in the office or at home. Cost and time are two of the most common reasons given by those who have yet to utilise their SkillsFuture Credits.

How then can we collectively work to address these challenges that our workers are facing? I am proposing three strategies:

build depth;

bring training closer to workers; and

formalise the importance of training with management.

First, building depth. The Government can encourage workers to go for training and build depth in their chosen fields by allowing all local polytechnic and university courses to be automatically offset by the SkillsFuture Credit. This should cover all types of courses, be it part-time diplomas, specialist certificates, executive education programmes or one-off specialist modules. Given the more expensive nature of such courses, I would urge the Government to consider providing a top-up to the SkillsFuture Credit to encourage Singaporeans to go for these courses that provide them with more depth to support their career goals. Better still, I hope the Government can give all adult Singaporeans a second bite of the cherry by providing education subsidies to mature students who wish to pursue a diploma or degree in our local IHLs. This will certainly cement our commitment to invest in lifelong learning.

Helping to identify training needs and craft in-depth training courses is an area where tripartite cooperation is useful. The National Transport Workers’ Union (NTWU) has been actively working with LTA and the public transport operators to help our workers upskill and reskill. This includes setting up the Singapore Bus Academy and the Singapore Rail Academy to provide workers with relevant and timely training.

Last year, the union worked with Singapore Bus Services Transit (SBST) to roll out the Operator-Maintainer training course, which empowers our bus captains to perform simple vehicle repairs. At the course’s graduation ceremony, I met 63-year-old Bus Captain Varathan. He has been a bus captain for over 40 years and this was the first time he was taught to do maintenance work on his vehicle. He was one of the pioneers to complete the course and shared with me that there were plenty of hands-on practices during the course which made the training very much easier to understand. He was also appreciative of this chance to develop skills and knowledge that would come in handy in his daily work. I hope the story of Bus Captain Varathan will inspire many more workers to have a lifelong learning attitude and be open to training and upskilling.

Second, let us bring training closer to workers to support them in this lifelong learning journey. Some courses simply cannot be done online. For courses that require physical premises, our schools and IHLs can be a convenient location for workers to go and upgrade themselves. The Labour Movement has begun taking steps to bring training closer to our workers. Let me cite an example. The United Workers of Electronics and Electrical Industries (UWEEI) have signed memorandums of understanding with three polytechnics in the west, east and north to provide workers with a wide variety of training courses at locations close to their workplace or their home.

For SMEs worried about sending their employees for training over a long period of time, we can bring training closer to them by having modular courses offered online. SMEs can leverage NTUC's e2i U Leap app. This is a mobile learning platform that allows users to learn bite-sized modules on the go and take anywhere between 30 minutes and two hours off work to focus on learning during the week. Last year, e2i also released U Leap Enterprise, a mobile learning platform where e2i works with companies to curate specific courses for their workers, which I think is very suitable for SMEs to address their workers’ training needs. This will not only save employees' travel time and hassle, it also minimises downtime for the company.

To ensure that upgrading workers' skills is seen as a priority towards a company’s transformation, training must be formalised and recognised by the management. Therefore, I encourage companies to work with the Labour Movement to make training a shared responsibility and make training real for our workers.

Mr Speaker, let me now touch on workplace safety and health (WSH). It is imperative that we continue to invest in WSH practices to ensure that our workers can return home to their families, safe and healthy, everyday. Our closely coordinated tripartite efforts in recent years have started to bear fruits. Workplace fatalities in 2018 have reached a record low of 41 cases. But despite the decrease in fatalities, the number of major and minor injuries have increased.

There are four areas that we can do more to safeguard our workers' safety and health at the workplace. First, we need to place more emphasis on workplace health. Our workforce is ageing and many have shared with me that they are increasingly facing higher stress levels at work. Recent studies have shown that poor workplace health contributes to work-related injuries and fatalities. We can do more to place more emphasis on workplace health, for example, by mandating yearly health check-ups for better detection and prevention of chronic occupational diseases.

Second, to encourage employers to build safer and healthier workplaces, we need to increase the cost to companies with poor WSH track record as deterrence. Under the Work Injury Compensation Act (WICA), all employees doing manual work, as well as all employees earning $1,600 or less per month need to be insured. Insurance companies should put in place a tiered insurance premium framework under WICA, where companies will have to pay higher insurance premiums if there are many claims of the same incident nature.

Third, every company must have a trained WSH representative. The current legislation only mandates for a WSH officer to be appointed in some workplaces, such as shipyards, petroleum processing plants and factories which employ over 100 people. According to the 2018 National WSH Statistics Report released last week, even lower risk sectors are not spared from WSH accidents. As such, we should consider expanding the requirement of having a trained WSH representative to all companies, to make WSH pervasive in every workplace.

Fourth, we need a National WSH Training Academy. Our workforce is diverse and it is this cultural diversity in our workforce that makes it challenging to train our local and foreign workers in workplace safety. There are currently 12 approved training providers that conduct WSH WSQ courses for the construction and metal working industries, but the training resources at each of these training providers can vary significantly. Having a National WSH Training Academy will better ensure high and consistent WSH standards across all sectors, particularly in high-risk sectors like construction and manufacturing. I will speak more about this during the upcoming Committee of Supply debate.

In conclusion, the Labour Movement is heartened by the Government's commitment and investment in our workers throughout the years, in particular, the focus on deepening worker capabilities in this year's Budget. This is a Government that cares for our workers. Let us continue to invest in lifelong learning and put in place strong measures for WSH to ensure a well-trained, future-ready, safe and healthy workforce. Because, I am very sure, this House will agree with me that Every Worker Matters. Mr Speaker, I support the Budget.

Senior Minister of State Koh Poh Koon.

Mr Speaker, Sir, the 2019 Budget is a strategic and forward-looking one, with measures that are meant to benefit Singaporeans of all ages. These include strengthened support in education for young Singaporeans, as well as the MGP and Bicentennial bonus that will help older Singaporeans and low- to middle-income families. In particular, I was glad to see strong support for businesses and workers, with measures that will help them embrace and adapt to industry transformation.

For enterprises, the Scale-up SG programme and pilot Innovation Agents programme will help firms build deeper capabilities to innovate and grow. For workers, the extension of SEC and CSP will help them upskill so that they can keep ahead of the curve and be ready for emerging jobs. Businesses and workers must embrace change together so that everyone can reap the benefits of industry transformation. While these measures and announcements are encouraging, there is more that we can do and I want to focus my speech in two areas. First, to enhance the employability and employment of our older workers; and two, to make industry transformation "real" for our workers.

Sir, our population is ageing. Older Singaporeans form a significant part of our workforce, which has a quarter aged 55 and above. This proportion is likely to grow as Singaporeans enjoy better healthcare and higher standards of living. Older workers are valuable assets who can contribute experience and maturity to our workforce, and we must better ensure their employability and employment. With our transition to a knowledge-based economy and the wider use of enabling technology, our workers rely less and less on physical strength and their work experience becomes an even more important asset. Our older workers with their years of industry experience are well-placed to leverage technological tools to maximise their productivity potential.

Successful Industry 4.0 transformation must be complemented by a capable and competent Worker 4.

0. But this transformation is not a straightforward process. There are challenges. The key challenge is mindset change of both employers and workers. Some employers prefer hiring younger workers, while some older workers are apprehensive and resistant towards emerging technology trends. In the face of rapid technological changes and the evolving demographic profile of our local workforce, the Government, businesses and workers must all be ready to adjust their mindsets and adapt to changes.

This change in mindset must be led by employers. With supportive employers coming on board the transformation journey, workers will also be encouraged to pick up the relevant skills. Here, I would like to encourage enterprises and companies to focus greater efforts in two areas to integrate more older workers into the workforce. First, companies must put an emphasis on job redesign to ensure that older workers are able to adapt to new technology and to different work environments. This could mean improving the user interface of a process so that technology adoption is much easier.

For example, some SMEs I have visited in the manufacturing sector have made the control of industrial robots via the use of iPads very much more intuitive. The operator does not need to understand the inner workings of the robot. He only needs to be familiar with the controls on the iPad. By using a familiar platform like the iPad as the user interface between the operator and the industrial robot, older workers found it much less daunting to adapt to robotics and automation and are able to improve on their productivity.

Innovation and technology adoption do not have to be complicated for businesses or workers. We must do more to ensure that job redesign and technology adoption remain user-friendly and intuitive for our workers, both the young and old. A more conducive work environment through job redesign will attract a younger talent pipeline to enter the industry while enabling experienced older workers to expand on their job roles.

Second, companies must provide better training for older workers to upskill or reskill to leverage technology. For example, PSA has been testing and adopting many automation technologies, including unmanned automated guided vehicles (AGVs) as well as automated and remotely-controlled yard cranes. To ensure that their drivers and crane operators remain relevant and employable, PSA worked with the unions to train them for higher-skilled roles. The result is new skills, better pay and greater fulfilment for its workers and, of course, enhanced productivity for PSA.

Training and reskilling are key to ensure that our older workers remain employed and employable. In 2018, more than 40% of clients served at NTUC's e2i Career Centre were aged 50 and above, and approximately 30% of this group were professionals, managers and executives (PMEs). PMEs are, therefore, also at risk of displacement and must continually upgrade to seize emerging job roles. NTUC has been working with the Government and industry partners on the PCPs, Place-and-Train Programmes and Professional Development Programmes to upskill and reskill older workers. These programmes have been successful in helping many mature PMEs enter new and exciting job roles.

We, therefore, welcome the Government’s move to expand PCPs into new growth areas, such as blockchain, prefabrication and the development of embedded software, to support mid-career professionals entering these sectors. We will continue to work with the Government and employers to strengthen the employability of our older workers through our network of unions, social enterprises and our U Associate partners.

There are other funding levers that NTUC can work with the Government to better incentivise and support companies to upskill and reskill older workers. We will work with the Government on implementing the changes to the EDG and PSG to ensure workers' outcome will be one of the key endpoints of ITMs.

Government grants for transformation must partner the Labour Movement and result in better outcomes for our workers. We need to continue helping Singaporean workers keep pace with economic transformation so that they can continue to have better wages, better career prospects, progression, protection and privileges.

Since we launched the ITMs, much has been done and we are starting to see early successes across many sectors. However, the ultimate beneficiary of our ITM initiatives must be the Singaporean worker. Transformation and ITMs need to be made real, with real tangible benefits for our Singaporean workers. And I will be sharing more about this at MTI's Committee of Supply debate.

Mr Speaker, Sir, training is, therefore, an important aspect of ensuring our workers, young or old, remain relevant to the transforming industry landscape. Only by helping our workers meaningfully and effectively use technology can we unleash the full potential of technology as a multiplier to the capabilities of our companies to be globally competitive.

In my many conversations with our workers and employers, two issues stand out.

First, workers and companies are unsure of where to go and get started on training. Workers who are keen to undergo training are confused by the myriad of courses available by different course providers and are unsure of what exactly is the most suitable course that they should go for. Some companies also find it difficult to navigate the training space and find the right partners to train their workers.

Second, workers are often not involved in the change management process in the company's transformation and wondered if they will be able to meet the needs of the company or get displaced by automation and robotics. Some companies have embarked on transformation but have yet to translate increased productivity into tangible benefits for their workers. This has all led to a sense of unease among some of our workers on what industry transformation holds for them.

To address these issues and make industry transformation "real" for our workers, the NTUC Training Council and the Training Executive Committee (Training Exco) were formed last year. The Training Exco, which I chair, comprises unionists and senior Government officials to coordinate the implementation of training efforts. To address the two issues which I highlighted, the Training Exco will focus our initial efforts in these two areas.

Firstly, to help companies and workers navigate the training space, a key priority for the Training Exco this year is for NTUC to become a viewfinder for workers' training. NTUC will work with unions, industry partners, Government agencies as well as IHLs to curate courses and simplify the training space for businesses and workers.

NTUC's e2i will be rolling out some enhancements to U Leap, a mobile app that can be a useful tool for workers to upskill, reskill and acquire knowledge in bite-sized formats. Over 200 topics and modules will be reclustered to align to the 23 ITMs to help workers in each of the sector navigate through the courses. There will also be quicker registration and on-boarding process for learners to intuitively navigate U Leap for a better user experience.

We plan to introduce more certifiable modules in collaboration with educational institutes and professional organisations. NTUC will also work with agencies like the Economic Development Board (EDB) and ESG to bring more SMEs onboard U Leap Enterprise version.

To date, we have 15 companies, including SMEs, such as Feinmetall and Fong Engineering, who have reaped the benefits of customised content for their workers' training to learn on-the-go. This has allowed workers to acquire useful knowledge without the need to be away from work, helping SMEs to better manage their manpower while, at the same time, upskilling their workforce.

To build a healthy ecosystem that supports transformation efforts, U Leap, together with Human Capital Singapore, will launch a community network for SME bosses in March this year. This is the start of various U Leap communities to enable users to network and participate in crowd-sourced learning as well as be attuned with trending topics on U Leap itself.

Secondly, to ensure that workers are co-drivers in the change and transformation process, the Labour Movement will be working with companies on the setting up of Company Training Committees, especially in our unionised companies. Both management and workers must work together to engender continual training as an important ingredient for business transformation and increased productivity. Workers must be a co-driver in this change process.

The Training Exco, through the promulgation of Company Training Committees in the companies, will enable the Labour Movement, employers and the Government to work together more closely to operationalise the ITMs and, in particular, support future skills development and job placement strategies under the various ITMs. We must ensure that industry transformation leads to real outcomes for our workers, be it wage growth or retention of older workers and upskilling of our workers.

In conclusion, Mr Speaker, this year's Budget has presented a clear focus on supporting the needs of both businesses and workers so that they can take the necessary steps to transform and adapt to the future economy. This is a Budget that is both pro-enterprise and pro-worker.

It sends a strong signal that Industry 4.0 and Worker 4.0 must continue to go hand-in-hand for us to succeed in the competitive global environment.

With close partnership amongst the Government, businesses and workers, with our strong tripartite relationship, I am confident that we can overcome challenges and achieve win-win-win outcomes for all. Sir, I support the Budget.

Mr Desmond Choo.

Mr Speaker, thank you for allowing me to join the debate. This Budget is a pro-worker Budget. By revising national enterprise schemes to focus on worker outcomes places workers' interests at the core of Government policies.

I would like to discuss further on two particular themes touched on in the Budget: helping youths succeed and prioritising lifelong learning for all workers.

Our younger Singaporean workers, unlike generations before theirs, face more disruptions in their work lives. In fact, they are almost certain to need multiple career and skill trampolines. Job facilitation for fresh graduates, many of whom are 26 years and below, is crucial as it sets their direction in life early. This is especially so for the students of Private Education Institutes (PEIs).

The latest PEI Graduate Employment Survey found that only 47.4% of private school fresh graduates secured full-time jobs six months after graduation. This was a steep decline from 60.1% for the previous batch. They also earned less, drawing a median gross monthly salary of S$2,650, compared to graduates from the local Autonomous Universities (AUs) who earned S$3,400.

We must continually review the PEIs to either enhance the skills and job value of these qualifications or to increase the students' awareness of alternative options. NTUC is prepared to assist with career navigation via its Youth Career Network platforms.

The Association of Southeast Asian Nations' (ASEAN's) growth will turn it into one of the top economic regions in the world. There are significant entrepreneurial and employment opportunities for our Singaporean workers. ASEAN can be the important second wing of growth for our economy. How do we make it easier for people to move out of Singapore, explore the world, and open more gateways for themselves and fellow Singaporeans?

Our young people must seek regional working experience. Many major companies already require their senior executives to understand overseas markets. Without that, they cannot progress to become head of the companies.

While programmes like the National University of Singapore (NUS) Overseas Colleges (NOCs) and the GRTP allow for meaningful internships, we need our youths to pursue full-time job overseas. I hope that we can harness the strength of our overseas trade offices and larger Singaporean companies with regional presence to build employment networks. The latter can jumpstart growing our ASEAN-ready talent.

This Budget is also about addressing the needs and challenges of businesses and workers in the face of growing structural changes globally. To achieve this, we must prioritise and master lifelong learning.

Minister Heng Swee Keat aptly mentioned that Singaporeans need to "reconceptualise" what learning is about, adding that they need to be prepared to learn from "anywhere from anyone at any time". While this applies to all workers, we need to pay special attention to those who started off with lower qualifications. How do we extend more comprehensive learning support beyond SkillsFuture Credit for workers who want to return to school or to upgrade themselves?

Our workers and unionists are well aware of the need to continually retrain. It is vital to their livelihoods. It is made more urgent now with disruption. Most workers would not have a single linear career trajectory. They would need to be nimble and switch careers or job functions as seamlessly as possible. In fact, the majority would need to obtain additional skills or qualifications to progress within their specific industry or to switch to another industry.

Yet, this process is not easy, as my fellow Labour Member of Parliament Mr Melvin Yong had shared. Many workers have significant financial and family commitments. Retraining incurs costs and loss of income. Therefore, many workers choose to put off picking up another skill or qualification for as long as they can. The PCPs and CSPs have helped to provide these bridges. The combination of course subsidies and training allowances have lowered the barriers to career conversion. Yet, the limited number of PCP and Earn and Learn Programme (ELP) places meant that many workers would have to pay full unsubsidised fees, and some workers might not qualify for the PCPs and might need a longer time for them to qualify or succeed.

Recently, a 33-year-old resident staying in Tampines sought assistance from me. He has been working since graduating with a diploma in business in 2007. In his own words, he wrote to me, he said, "I had no idea what I wanted to do after my GCE "O" level. Thus, I embarked on something very corporate. So, I did a diploma in business." He worked in a corporate function, and his job was in a polyclinic where he was inspired to become a nurse. After trying for two years, he finally obtained a place in Ngee Ann Polytechnic. Yet, he is unable to secure a tuition grant because he has already obtained a previous diploma in 2007. His school fees will amount to $21,000 per year which he cannot pay. He said, "I do have some savings, but it is not enough for three years." Yet, he still has a burning desire to serve the community.

He also said, "It took me a long time to finally get a placement at Ngee Ann Polytechnic to study nursing. But unfortunately, I do not come from a well-to-do family. My father is semi-retired and my mother is a homemaker. I do not behold high hopes in life. I will be gratified enough to be a nurse. But the cost of $60,000, I believe, is too difficult for me to manage. At the end, I do have some savings to tide myself through, but it is not enough for three years. However, I ain't giving up. Thus, I am seeking all forms of assistance which I can possibly conquer. This is possibly my last chance, and I am thoroughly sincere in becoming a qualified nurse."

While this is one appeal, there might be many other people in similar circumstances in different fields. We hope that more can be done for them. It entails expanding the number of PCP places by helping our Singaporean workers, especially younger ones, to obtain a second National ITE Certificate (Nitec), a diploma or degree that will help them better adjust to structural economic changes. It will also allow workers to discover new career choices instead of those predetermined in the earlier years. Returning to school for career switch can be socialised as a mainstream norm.

Workers require more support when they leave their jobs to expand their options on reskilling. Similar training allowances, such as those for PCPs, can be provided to them while they pick up their second qualification. Perhaps, along the lines of Workfare Incentive Scheme, we can think about it as a Reskilling Incentive Scheme.

Our polytechnics are also introducing more Common Entry Programmes in Business, and Information and Digital Technologies (IDT) clusters. This streamlining of courses allows for over-specificity early in life. Perhaps, we can also offer these to workers looking for career resilience and changes in modular fashion.

Creating a culture of reskilling is not just a government's duty but the duty of unions, employers and the Government. Learning agility is the key to building a modern workforce capable of navigating and leveraging opportunities arising from disruptions.

Every Worker Matters in Singapore. And the Labour Movement will continue to do its part to make it real for workers. Mr Speaker, I support the Budget.

Order. I propose to take a break now. I suspend the Sitting and will take the Chair at 4.20 pm.

Sitting accordingly suspended

at 4.00 pm until 4.20 pm.

Sitting resumed at 4.20 pm

[Mr Speaker in the Chair]

[(proc text) Debate resumed. (proc text)]

Mr Seah Kian Peng.

Mr Speaker, Sir, first, may I congratulate you on your photo exhibition, which is aptly called "Our Place in the World". Whether 700 years, or 200, Singapore's place in the world remains geographically small. But with careful development and husbandry, we have seen our little place become more prosperous and more secure.

We often think that our dream of peace and safety can be secured by technology. And, indeed, in our armed forces, in the way we have harnessed technology to our service in infrastructure, housing, and even parking, we have seen how things can be cheaper, easier and better.

But technology carries with it not just a chance at greater comfort and ease, but also a risk of great evil.

Science or Technology. Sir, I would like to clarify briefly the difference between science and technology, two terms which we use interchangeably but, as the historian of science Thomas Kuhn has said, they are "profoundly different".

Technology is about process; it is an instrument which helps us to make things better and is valuable for that reason. Science works to a different purpose – it is the pursuit of knowledge and truth – working towards an accumulation of not just how we do things, but in understanding the true nature of the universe – physical and human – that we work and live in.

In this sense, science can be "hard" or "physical sciences", or "the human, social sciences".

One can, therefore, be a very good scientist, but a poor technologist and vice versa. I make this distinction only to say that the pursuit of technological advances cannot be a blind one but must contribute to a useful end.

For example, we would all agree that Parking.sg is a very useful technological product. It replaces paper coupons, makes it easy, quick and secure to pay for parking. You pay for what you use, and you get a refund for what you do not. That is an example where we used technology in a cost-effective manner to get us a service which we find useful. Technology needs a master, and we ought to be always careful of the purpose to which it is employed.

As a Labour Member of Parliament, I know that there are a lot of workers' concerns on Industrial Relations 4.

0. It covers issues, such as the infringement of personal privacy, because smart technologies can determine an employee's whereabouts. Working life is also becoming more precarious for workers with no laws to protect them. It affects the way workers process information, their working time and workplace relationships.

The regulatory regime of our working life harks from the industrialisation era. This includes many practices within HR. For example, I hear of how an HR officer tried to convince her boss to install Global Positioning System (GPS) tracking for drivers, so as to monitor whether a driver is working or not. I am not sure whether this is the sort of working life we want.

Meanwhile, in the F&B sector, in the past, we had inhouse delivery riders, say, in fastfood chains. These are permanent employees hired by the fastfood chains with rights and protection given to all full-time employees. However, when online food delivery platforms are up, fastfood chains increasingly do not need the same number of inhouse delivery riders. At the same time, riders themselves may opt to join delivery companies because they see their earnings improve.

They do not see the important considerations in the short term – a career plan, stability, insurance and training.

NTUC FairPrice, in our transformation journey, is building automated distribution centres, online platforms and at the stores, adopting technology to help improve processes. Our HR side, working together with our union, has had to retrain our staff to take on new jobs and work with new machines and technology. This is important so that our staff, especially the older ones, are not left behind. In terms of staff demographics, more than 50% of FairPrice's workforce is above 50 years old. For sure, this is not a walk in the park. But we are committed to this journey.

In an age of technological advance, the HR divisions need to rise to the call, to remember that we are dealing with humans, and to ensure that our regulatory regime keeps up with very human needs and wants.

People First; Technology Second. There has been a lot of technological innovations in the payment ecosystem. With technology and the drive towards a cashless society, and with cashless payments becoming more widely accepted, a rising social issue could arise. The obvious question that comes to mind is: will the poor be left out?

We have moved from drawing cash from banks, counting cash, issuing cash to workers on pay day to getting everyone to have bank accounts. When the banks imposed a "fall below fee", it was the lower income who are likely to pay the cost.

With cashless payments, like using quick response (QR) codes or mobile pay, the poor may become excluded. And yes, they may yet pay the cost of going cashless.

So, we need to guard against being technology-centric over being people-centric. Let me cite another example from FairPrice to make this clearer. In our move towards self-checkouts, we started with having self-checkouts that accepted only credit cards.

There was, indeed, a very good take-up. But after a while, the level of usage stagnated. So, we talked to our customers. We realised that not everyone had a credit card and then there were also some who, even though they had one, preferred to use cash and so we started to work on the next generation of self-checkouts which also accepted cash in addition to credit cards.

Not surprisingly, with this new generation of self-checkouts that accepted cash as well as credit cards, we saw another huge jump in customer transactions at these self-checkouts.

Smart Nation; User Problems. Sir, we have put quite a large budget towards our move to being a Smart Nation. But should we pause to reconsider that even as machines become more powerful, people remain equally frail?

Technological changes allow us greater power. But the case of the leaked human immunodeficiency virus (HIV) identities and the MOH data leaks show us that user problems are as present as ever.

Sir, we will always have the careless, the malicious and the spiteful amongst us. We will always have unfriendly states, underhanded attacks, subversions.

The difference is that technology gives us all greater power. Therefore, I say, while we should not stop in our journey towards a smart nation, we ought always to remember “user problems” and give pause.

Remember Parking.sg? It is a great app if everything works. If it does not, well, you ought to know that the following pieces of information have been given by you – your credit, your debit card details, the location you were at at that point in time, your vehicle number and so on and so forth. I think it is a risk many of us are willing to take, and I certainly do not want to paint alarmist hypotheticals.

My concern is a separate one. We can try and ringfence technological gaps. But how do we guard against the bitter, the disaffected, the maladjusted or the pathological? The greater the power, the greater the evil that men can do.

One thing we can and should do is to invest more in humans, even as we invest in technology. For each course in information technology (IT), data analytics and cybersecurity, we need one on psychology, sociology, human relations; for each new resource in the IT department, a similar one in the HR department. We talk about industrial revolution but the quieter yet more violent one lies in the companion revolution in the way we work and relate to one another.

Technology allows us to do more. The humanities allow us to know why and how we ought to deploy our new powers. This calls for a way we think and invest in education, but also, what we can do, in Government.

Beyond good and evil. Finally, Sir, I want to make one specific suggestion. We have long vaunted our ability to tell “hard truths”, to value “doing the right thing” over doing the popular one. But with increasing use of AI and machines, our ability to tell what is the right thing we ought to do may be severely compromised. Our ability to incorporate technology in our lives has far outstripped our ability to reason morally about the choices that we will be forced to make as a technological society. This is no longer a choice between the right and the popular, the short and the long term, but the choice on how to programme machines to make choices that are not just about efficiency and speed, but about values – good, bad, right, wrong.

We know of the accident with the autonomous vehicle at one-north where, thankfully, no one was hurt. If there was, to whom do we attribute the blame? There is recently a rendition of the classic "trolley problem", where people all over the world voted on how they would resolve moral dilemmas. Would they save one or many? Would they save the young or the old? Would they kill their friends or strangers? Answers differ all over the world.

Sir, as Singapore develops into a smart nation, we need a collection of people – from the Government, ordinary men and women, policy scholars and moral philosophers, as well as scientists and private corporations, to think about ethical issues and how they ought to be tackled.

There are different ethics committees now, embedded in different Ministries and agencies, for example, in biomedical studies and research. Given the complexity and interlinkages, I think there is a case, and I would argue for a National Committee for Ethics in Science and Technology giving inputs on hard cases at the frontiers of new decisions relating to science and technology. I must clarify that the frontiers are not those of technological progress alone, but on how they affect humans and human relationships. And what, whether and how technology should be deployed.

Sir, this Budget has invested heavily in technology. It has made important provisions to keep us safe in the online space. The Ministry of Home Affairs' (MHA's) Home Team Science and Technology Agency is one. Putting Digital Defence as our sixth pillar is another.

Sir, we should make a small additional provision to keep us not just safe, but strong, by allowing members of the public, as well as experts from the various humanities and social sciences, to debate, consider and crystallise our key ideas and feelings about what is right or wrong for us to do, using all the technological means we have at our disposal.

Mr Speaker, Sir, our "Place in the World" for the past 200 years had been secured in large part because we know how to exploit and work with technology. In the next 200 years, changes will be even faster and more severe. We need to not just understand science to take advantage of these changes, but also what it means to be human. Our investment, therefore, cannot be lopsided in favour of technology. Only then can we have a Strong and United Singapore. Sir, I support the Budget.

Mr Arasu Duraisamy.

Mr Speaker, Sir, data from MOM indicated that our labour force, also known as the economically active population, was 67.7% in 2017 and 2018. Given the changes that have been made to our manpower policies and resources, perhaps it is time that the Ministry conduct an in-depth study of the data and find ways to increase the labour force participation rate. If more Singaporeans are gainfully employed, we will also be able to reduce the corresponding resources needed from the Government and channel it for other uses. Simplistically speaking, one more Singaporean worker joining the workforce equals to the same Singaporean depending less on Government resources.

Sir, I will speak on two issues: retirement and re-employment, and skills upgrading and training.

First, on retirement and re-employment. It is heartening that this year’s Budget will provide more support towards the older workers, with increased annual payouts from the WIS scheme, by topping up SEC to support employers in hiring older workers, and other initiatives that will help them save more for retirement. While these are helpful to older workers, the best support is ensuring that they have a good job.

Many of the older workers have told us they are not ready to retire for good. Some need to continue working, as they are the sole breadwinners of their families. Some need to support their children’s education in universities, and others hope to build up the family's medical and retirement funds which, at 67 years old, many of them still felt were inadequate.

But most importantly, many of them expressed the fact that they are still physically able, relatively healthy and want to continue to be gainfully employed.

One area to look at is to help our older workers to continue working for as long as they wish to and are able to. One way to do it is to raise the retirement age from 62 to 65, and the re-employment age from 67 to 70. I am glad a Tripartite Workgroup has been set up to look into this.

Let us do more to help them. In fact, there are already more than 20 unionised companies which are at the forefront of this. Examples of such companies are ComfortDelgro, Gardens by the Bay, Hewlett Packard Singapore, among others. These companies have chosen to move the retirement age to 65 and beyond, with some of them having no contractual retirement age. From time to time, the Labour Movement also receives appeals from workers seeking assistance to extend their re-employment contracts. And I urge the Civil Service and other Government-linked companies to quickly take the lead.

As the SEC is further extended to end 2020, it is perhaps timely to raise re-employment age so that both workers and employers can benefit. The extension of retirement and re-employment ages provides certainty to our workers who want to continue working and allows a longer runway for employers to plan for training and upskilling, as well as adapt to digital transformation holistically.

Secondly, I will touch on skills upgrading and training. No worker should be left behind on our road to the development of a Smart Nation for Singapore. As such, I urge MOE to look into enabling continual education for our mature workers. Currently, companies are engaging IHLs to develop programmes for their workers. This approach only reaches out to a small number of workers. If MOE could step in, it can be further scaled up.

It has been particularly challenging training workers in the SME sector. A large number of Singaporeans work for SMEs. Due to their workforce size, many SME companies are often unable to send workers for training due to shortage of staff. At the same time, the other challenge is that SME workers are reluctant to go for training as it might affect their gross income and overtime.

We have also heard feedback from workers in their mid-50s who felt that it is not necessary to go for training as their career runway is shorter and training might not provide more opportunities for career advancement. We need to change their mindset and help educate them that training and skills upgrading are necessary for them to remain relevant. In view of digital transformation and the ageing workforce, ensuring that both SMEs and their workers are pro-training is especially important.

Hence, I urge the Government to recognise companies which are willing to send workers for training and willing to upgrade and automate job processes, to positively differentiate them by allowing them to easily tap on Government funding versus companies which do not do so.

To facilitate and accelerate training, I hope that training can be brought nearer to the doorsteps of companies and their workers, especially for companies that are situated at industrial areas. This will help to reduce travelling time for workers when attending training. For the more enlightened employers who grant workers paid time-off to upskill, the Government should provide further subsidies to companies in the form of grants or outright absentee payroll.

Singapore as a Smart Nation will position us well in the competitive global economy and, hence, we need to push everyone to step up the pace of industry transformation and push for productivity growth through automation and developing a skilled workforce. If our workers are gainfully employed, it will benefit employers, the Government and the nation overall as Every Worker Matters. Mr Speaker, Sir, I support this Budget.

Mr Patrick Tay.

Mr Speaker, Sir, I rise in support of this year's Budget. Today, we are facing the headwinds of stiff global competition and a rapidly changing economy. Protectionism is on the rise and globalisation is giving way to "slowbalisation". As a small and open economy, these geopolitical forces impact Singapore. Last year, our economy expanded 3.2% while growth is forecast to be in the range of 1.5% to 3.5% in 2019.

While there are challenges, we must maintain our sights on the bright spots. Businesses are turning to ASEAN to diversify risks and Singapore can play a pivotal role as a regional hub. Technology and innovation can unearth new opportunities for our growth. Singapore must continue to sharpen our strengths as a trusted brand and a skilled workforce, and I am glad that this Budget provides a strategic plan to help Singapore and Singaporeans to do so.

Key to this plan is our workers. Our labour market is tight with lower birth rates, an ageing population and tightening foreign labour inflows. Work will be disrupted. A study says 44% of work activities in Singapore today can be automated with current technologies, with a third of the skillsets required to perform today’s jobs wholly new by 2020. Rapid skills churn will require workers to swiftly adapt and cope with frequent career transitions. We must not leave our workers behind.

I am heartened that come April 2020, all transformation efforts supported by ESG’s EDG must include positive outcomes for workers, such as wage increases. I am also glad that NTUC's call for the extension of the CSP and SEC have been heeded. This Budget is pro-worker and has put workers at the heart of it.

I strongly believe that Every Worker Matters and this Budget can do more for PMEs because every PME matters.

In 2018, professionals, managers, executives and technicians (PMETs) continued to be more affected by retrenchments with higher skilled, mature PMETs the hardest hit. Older PMETs also face greater difficulty in the job market with the long-term unemployment rate for resident PMETs aged above 50 higher than younger age groups. With technologies, such as AI, middle-income jobs can potentially be hollowed out, at the risk of workers' downward labour mobility. These are real concerns I have heard from PMEs I have met and spoken to.

Our skilled workforce is our competitive advantage and Every Worker Matters. Investing in our workforce enables us to grow the pie collectively and reap the fruits of labour together. I propose three key thrusts to do so. First, enhancing protection in the future workplace; second, enabling progression in the future of work; and third, expanding potential for our future workers.

The future workplace must take pre-emptive steps to redesign jobs and future-proof workers' skillsets. Stakeholders must strengthen information flow, overcome information asymmetry and collaborate on transformation.

At the recent NTUC Future Jobs, Skills and Training Forum, industry and union leaders, employers and workers shared actionable keys for industry transformation based on early successes. For example, in the financial services industry, the Tripartite Advisory on Human Capital Practices for Banking, adopted by 160 banks, calls on banks to proactively identify impacted jobs and redeploy workers into areas of job growth through PCPs. Our unions are also evolving in tandem. Last month, the Singapore Bank Officer's Association, now renamed the Banking and Financial Services Union, repositioned its mission to serve more workers to cope with disruption. The Labour Movement also welcomed the Singapore FinTech Association, which helps workers to reskill to take up financial technology (FinTech) roles, as an affiliated U Associate partner.

As work evolves, the line between the rank and file and PMETs is increasingly blurred, the share of PMETs among employed residents has also increased to 57% in 2018. Under the Employment Act and other labour legislation, there remains distinctions between our rank and file and PMEs, and "manual" and "non-manual" work. These distinctions influence the treatment and protection of these workers. It is particularly challenging today to make these distinctions as many jobs involve a mix of both manual and non-manual work. There are also workers who have been wrongly classified as "managers and executives", excluding them from protection under Part IV of the Employment Act. Some employers have also tried to exclude workers from union protection under the pretext that the worker is in a conflicted position as he wields "managerial" powers. The relevance of these dichotomies needs to be examined to ensure that our workers continue to be adequately protected.

The Future of Work is fast-paced and the half-life of skills is shortening. Much like our Formula 1 drivers, we must have quick and effective pitstops to retool and get back in the race. Training providers must have speed-to-market and move away from traditional certifications to peer network approval systems and industry crowdsourced on-the-go learning. An example of such a "pitstop" is the Healthcare Academy, set up by the Healthcare Services Employees' Union and NTUC Learning Hub, which upskills workers through industry co-created programmes, delivered through varied modes of learning. Such concerted efforts are needed to ensure that our workers upskill in tandem with transformation efforts.

While PWM is associated with low-wage, rank and file workers, PMETs, too, can benefit from PWM, especially PMETs earning between $2,500 and $3,500 per month in highly impacted jobs. Beyond the mandatory PWM, our unions have been implementing structured wage and skills ladders benefiting all workers, including PMETs. It is timely to scale these efforts on a national level and extend PWM to lower-wage PMETs to provide for their progression and upward labour mobility.

Our Future Workers will increasingly participate in new ways of work and employment models. With flexible and digital-enabled work, we can tap on sources of untapped labour supply to expand our workforce. To expand the potential of our ageing workforce, I have called for the SEC, CSP and WorkPro to be extended and enhanced to maximise our workforce's productive longevity and am glad that the Budget this year has responded positively. I want to also call for more pre-emptive and proactive training, and we can only do this with strong support from our tripartite partners.

To enable workers to take charge and expand their potential, workers can tap on their SkillsFuture Credits to upskill. Utilisation has increased and it is the time for a top-up of another $500 so that workers can go further in their personal growth through individual, initiated training. These credits have helped to seed and catalyse lifelong learning. Our unions have also been working with employers to set aside time for workers' upskilling. Some companies have even voluntarily provided a top-up of employees' SkillsFuture Credits to fund their training, and more companies are encouraged to do so.

All stakeholders have a part to play in co-creating our future. We need to create wealth rather than focus on spending more. More wealth means more to spend. We are generating wealth by transforming our economy to higher value activities and constantly attracting such investments. Most importantly, we have to make sure our workers have the skills to do these jobs. We should be bolder in spending money on upgrading and retraining. Help our workers earn more, in better jobs. Regulate the training providers, not the trainees. What obstacles are there to prevent our workers from going for continuous training and education? We need to tackle those. If we argue about how to share a stagnant pie, we are fighting a losing battle. We should be working together to grow the pie.

The Labour Movement is committed to serve as the workers' viewfinder in navigating the work landscape, by bringing stakeholders together to collectively make better skills, jobs and pay real for workers – I repeat, real for workers. Mr Speaker, in Mandarin.

(In Mandarin): [Please refer to Vernacular Speech.] I would like to propose a "five-core" strategy when we implement the Budget.

First, the Singapore Core ‒ build a workforce with a Singaporean Core.

Second, of one heart and mind ‒ the tripartite partners must work together with one heart and mind and adopt a worker-centric approach.

Third, determination ‒ our workers must be determined to learn new skills, pick up a second skill and develop a lifelong learning mindset.

Fourth, confidence – face the future challenges with full confidence.

Fifth, ambition – we must have the ambition to fulfil greater objectives.

Minister Ng Chee Meng.

Mr Speaker, the Minister for Finance has announced a Budget of $80 billion that is both pro-business and pro-worker. In particular, Minister Heng Swee Keat paid close attention to workers, not just workers in the generic sense, but workers as real people – the elderly, the unemployed, lower-income workers, even our youths, who represent the future workforce.

Feedback from our workers on the Budget has been positive. The MGP, WIS enhancements and other forms of support reflect a more "caring and inclusive" society. They appreciate what the Government is doing for them.

However, some middle-class workers pointed out that they did not feel the benefits as strongly. Some also noted that notwithstanding the disbursements, structural rises in costs of living – water, diesel tax, carbon tax and the eventual Goods and Services Tax (GST) rise – would ultimately be passed on to the end users. Some of our workers also wanted to clarify that disbursements, such as the MGP, would not burden future Governments or the workforce. I thought these were very insightful feedback from our workers.

In short, the Labour Movement appreciates the direction of our Government and, as Secretary-General of NTUC, I urge the Government to continue to put workers at the heart of all we do.

NTUC Labour Members and many other colleagues in the Chamber today have placed workers at the heart of our debate speeches. They have each addressed the various segments of our workforce and the issues they face, whether it is the elderly workers, low-income workers, workplace safety issues, balancing family with work, training and progression, all segments of the workforce, including freelancers and PMEs. Our vision and purpose in NTUC are a simple one. It is about doing the best we can for every worker.

Mr Speaker, this is both the necessary thing to do for our economy, and the right thing to do for our society. Our changing demographics mean a tighter labour force in the future and, with limited manpower growth, Every Worker Matters. Each worker's skills, knowledge, experience, contribute to our human capital. Our economy can only be at its best when all our workers are performing to their potential and are rewarded fairly for their productivity.

Having said that, the Minister for Finance has shared an encouraging statistic – productivity has increased 3.6% in the past three years. This is testament to the efforts of the tripartite stakeholders – the Government, businesses and our workers. But even as we have done well, the Labour Movement cannot rest and must look ahead.

At these moments of rapid economic change and disruption, I am glad that there are also many new opportunities for Singapore and Singaporeans. NTUC will partner our tripartite partners to enable our businesses to seize new opportunities and create wealth, so that our workers can aspire to what we, in the Labour Movement call, the 3Ws: better wages, better welfare and better work prospects.

At the same time, the Labour Movement is cognisant that some workers in Singapore will feel dislocated by the rapid changes. NTUC will and must always and will do our best to support these workers to keep up. Let me elaborate on how we will manage and balance these multiple objectives.

The heart of the Labour Movement's purpose is for our workers to earn and secure a fair wage. This allows them and their families to keep up with the cost of living, save and flourish. We have no illusions that workers can do well if businesses do not do well. Thriving businesses are good for workers. In this regard, I agree with the Minister for Finance that a company's leadership is key. So, when the boss of a company is ready to seize new opportunities through technology, NTUC wants to partner you and wants to facilitate with the necessary worker training and upskilling.

With the economy transforming rapidly, if we are to help our workers upskill effectively, NTUC and our unions must now move upstream to participate in Government and industry-led transformation. This is why NTUC strongly welcomes the impending changes to the terms of ESG's EDG. For funding to be approved, a company must demonstrate how such initiatives not only benefit the business, but also provide positive worker outcomes. NTUC and our union leaders are eager to share our experience and expertise with our tripartite partners in ensuring that these outcomes are achieved.

[Deputy Speaker (Mr Charles Chong) in the Chair]

I will cite a simple example of what we have done for almost 10 years. NTUC's e2i launched the Inclusive Growth Programme (IGP) in 2010 as NTUC's advocacy for low-wage workers. The programme provides funding for companies' productivity initiatives that translate into actual workers' wage increments. Brother Norizal bin Zainal, a security supervisor at Temasek Polytechnic, benefited from this. He took part in a project that was looking to allow officers to update information to supervisors through their handphones.

This gives security supervisors more mobility and they were able to up their productivity. As a consequence, he enjoyed a $100 increment to his basic salary as a result. Some may think that $100 a month is not so significant an amount, but to many of our workers, this matters a lot.

As of December 2018, the IGP has benefited more than 91,000 workers from 2,000 companies across various sectors: security guards, cleaners, F&B service staff, and hotel service staff. In the past five years, the average wage increase per project was around 13%. The successful demonstration of sustainable, productivity-driven wage increases also facilitated the eventual legislation of PWM for lower-income sectors. These successes were possible because union leaders and our industrial relations officers acted as critical catalysts. They worked the ground, company by company, to understand specific business needs and operational process details. They persuaded management that innovation and worker training would be good for business and encouraged their fellow workers also to participate in this upstream work to support the successes of their bosses so that, in turn, they can get better pay. The Labour Movement looks forward to a productive partnership with MTI and ESG on the EDG.

Mr Deputy Speaker, I will now talk about how we can best help workers in securing good employment prospects in our rapidly transforming economy. The Labour Movement must act on the advent of the Fourth Industrial Revolution, or Industry 4.0, as mentioned by Minister Heng Swee Keat.

For Industry 4.0 to be actualised, we need our workers to transform in parallel with their companies and industries because there can be no Industry 4.0 without the workers. These workers, what we have called and termed "Worker 4.0", go hand in hand with Industry 4.

0. Many workers in countries overseas reject technology. They fear it, they do not understand it, and they are worried that technology will take away their rice bowl. Some of our very own workers in Singapore also feel threatened by the unknown and some of the fear mongering online. But we, in Singapore, cannot reject technology. Technology allows us, especially in our context, to overcome many of our labour shortage constraints and, if applied intelligently, businesses can be more productive and able to seize many emerging opportunities and create wealth.

In the past few months, we worked with companies and sector agencies on a study to produce archetypes of Worker 4.0 in different industries. Why? We want workers to be able to benefit from this transformation and be assured that this is, indeed, the best for them.

Mr Deputy Speaker, with your permission, may I ask the Clerks to distribute a handout to illustrate this Worker 4.0?

Please proceed. [A handout was distributed to hon Members.]

When Members get their hands on the pamphlet, you will see that this is a simplified example of what the archetype for Port Engineering Professional 4.0 looks like – the current version, what is the 4.0 version, the skills gap, and the necessary and required training for them to upgrade. Our intention is to help our workers visualise the potential of Industry 4.0, for the companies and for themselves, for their careers.

As part of this study, PSA officers worked with the Port Officers' Union to develop training programmes for Port Engineering Professional 4.

0. When Minister Heng Swee Keat visited PSA over the Lunar New Year period, he may have noticed some automation projects which were on trial. Automation is an important area of productivity growth for PSA in the intense arena of competition for Ports. One of our Union members and a Senior Mechanical Engineer at PSA, Brother Ng Hwee Sheng, has completed a one-year Systems Engineering course at the Singapore Institute of Technology (SIT). With his newly acquired skillsets, he now takes on a larger role managing various automated and intelligent systems. This is part of PSA's scheme in upskilling and multiskilling their PMEs to be more agile and adaptive to keep value-adding in the long run.

With a better vision of Worker 4.0, and examples of fellow workers that have achieved it, we want our workers to make it real for themselves, to know that it is doable that they must take personal responsibility for it.

Many colleagues in the Chamber today have called for workers' upskilling and upgrading. As the Secretary General, I am very grateful for the support this Chamber has for the workers, including Mr Liang Eng Hwa and Ms Foo Mee Har, for standing in support of workers' training. NTUC will act to scale this effort. To do so, the Labour Movement will work to set up Training Committees with our partnering companies. These committees, made up of management and union leaders, will work together to articulate what Worker 4.0 looks like for the company, and partner management in the transformation towards Industry 4.0.

Some of our companies have already started. PSA, of course, is amongst a group of around 10 companies in various sectors working with our unions on their Training Committees. For example, in the aviation and aerospace cluster, we have SIA Engineering Company, ST Aerospace, SATS; in energy, we have the Singapore Power (SP) Group; in transport, we have the Singapore Bus Services Transit (SBST), Singapore Mass Rapid Transit (SMRT) and so on. In the past, we also have companies that work with unions on training and wage increments to support the implementation of PWM. This provides a ready infrastructure for us to push Industry 4.0 and Worker 4.0 outcomes within these companies as well.

These Training Committees may have different sounding names and structures. But more importantly, I am concerned about the outcomes and not the form. Whichever the form they may come in, what they have in common is that management and union must sit down together to discuss, plan and execute these very important training programmes for workers. They must share information in a way that facilitates this mutually beneficial initiative.

Training Committees harness workers’ expertise to support companies’ business development and investments. Union leaders, by the nature of their work, have a deep understanding of the factory floor and intimate knowledge of ground worker readiness and realities. By harnessing both management and labour expertise, the Training Committee can chart out skills and competency requirements, put in place training programmes, such as PSA’s one-year Systems Engineering Course at SIT, schedule workers' training to minimise downtime in ongoing operations. This may seem simple in a speech, but it is no trivial matter in our companies' manpower shortage with shift work. And, when we do all these, it facilitates good outcomes for the workers and the companies. In addition, we can also map out, through the training committees, prospects for career progression, incorporating possible jobs of the future and, where possible, even tagged to wage increments of these future jobs.

With these initial pilot programmes and pilot companies, we can already reach out to about 64,000 workers in our unionised companies. Hence, in the next phase, we want to scale up further to all our unionised companies. Importantly, we must know that these Training Committees will benefit the businesses and they will benefit our workers.

This may sound easy but, in actuality, will not be so simple to execute. Nevertheless, it is a needed initiative. The Labour Movement, with our reach to partner unionised companies, can play our part in the Industry Transformation. It is important to start now, to put many good ideas discussed in this Chamber into practical action and, even if we may not get it 100% right at the first go, well, we will get it right. And let us get to the transformation process. Mr Deputy Speaker, in Mandarin, please.

(In Mandarin): [Please refer to Vernacular Speech.] Union leaders and workers told me they are heartened that the Government is pro-worker. Besides supporting companies to deepen capabilities and increase competitiveness, the Government is also helping workers to enjoy better wages, welfare and career prospects in the new age of industrial transformation and digitalisation. More importantly, companies should share their successes with workers through gainsharing.

Therefore, they were very happy when they heard Minister Heng Swee Keat's announcement that, from next year April onwards, companies which tap on the EDG to transform must ensure that their employees also benefit, such as in the form of wage increases.

NTUC’s e2i IGP, since was launched in 2010, has benefited more than 90,000 workers. In the past five years, the average wage increase per project was about 13%. NTUC looks forward to partnering MTI and ESG for EDG to be both pro-business and pro-worker.

It has always been NTUC's belief that the best welfare for our workers is a good job. With the rapid development of technology, we are entering the era of Industry 4.

0. But there can be no Industry 4.0 without Worker 4.

0. Besides helping companies to stay competitive by leveraging smart technologies, it is also important to help workers accept and harness technology to realise their potential in Industry 4.0.

But what are the skillsets and attributes of Worker 4.0? What types of training should they undergo to become Worker 4.0?

Over the last few months, NTUC has been in discussions with companies and relevant partners across industries to develop archetypes of Worker 4.

0. To actualise the archetypes, the next step is setting up Training Committees in companies to help workers undergo training and upskilling to become Worker 4.0.

In this rapidly changing world, it is critical that companies innovate and transform in tandem. Likewise, workers must also quickly adapt and seize opportunities.

The theme of this year's Budget is building a strong and united Singapore. I believe that if we put workers at the heart of everything we do and with concerted efforts, we will be able to create a better future for all.

(In English): Mr Deputy Speaker, I will conclude. In 1969, NTUC organised the "Trade Union Seminar on Modernisation of the Labour Movement" in the midst of an employment crisis when the British announced that they were pulling out of Singapore. This "Modernisation Seminar" generated Singapore's unique brand of collaborative tripartism. As a result, the trust and mutual respect between the Government and NTUC enabled the setting up of various co-operatives, such as NTUC FairPrice, to help workers manage the cost of living and serve workers.

The Labour Movement has since then played a crucial role in Singapore’s success. As Mr Lee Kuan Yew said back in 1979, "The close cooperation between the political and the union leadership made modern Singapore. It is both history and today’s reality". Mr Lee's statement remains true in the way forward for us.

Twenty-nineteen is the 50th anniversary of the Modernisation Seminar. Singapore is at a transition point, where our economy is taking on a major transformation, where our society is an ageing one, and our political leadership is also undergoing renewal. NTUC has enjoyed the strong support of MOM in labour issues. Moving forward, from all the different speeches, we know that there is a need for NTUC to engage other agencies upstream, particularly MTI for transformation and MOE for lifelong learning for our workers.

In these and other aspects, the political and union leadership must continue the close collaboration that made modern Singapore. It must be today’s reality; it must be the future reality. At the heart of what our 4th Generation (4G) leaders do, be it in the Government or in the Labour Movement, workers must be at the centre. With this close political and union cooperation, we can chart Singapore’s success together so that when Singapore succeeds, all Singaporeans can have a share in that success. Mr Deputy Speaker, I stand in support of the Budget. [Applause.]

Assoc Prof Daniel Goh.

Mr Deputy Speaker, Sir, the MGP appears to be the highlight of this Budget. I was born in 1973. I am not sure what the government of the day 20 years down the road will call my generation. My generation was raised by Singaporeans of the MG. My parents are from PG and they both worked. Many of my childhood caregivers and teachers were Merdekas.

If there was one value the Merdekas taught me, it was to grow up to be an independent Singaporean, proud and defensive of our Independent Singapore, and to think and act independently, beholden to no one but to my country and conscience. This generation truly deserves to be named MG, not because they happened to be born in the 1950s, just as Singapore fought and got its Independence, but because this generation was imbued with the spirit of independence and imparted the spirit of independence to future generations such as mine.

Today the Merdekas are aged 60 to 69 years old. This stretches across the landmarks of ageing in Singapore, from applying for the senior citizen concession card for public transport at 60 to getting the CPF auto-payout at 70 if they had not opted for earlier payouts. It is my sincere hope that a generation who embodied and imparted the spirit of independence will be able to age with independence.

What I mean by ageing with independence is the ability of our seniors to retire on their own, with as little financial dependence as possible on their children, siblings and other family members, and also on the Government and welfare organisations. Except for incidents of serious illness and accidents, seniors ageing with independence will be able to care for themselves or pay for the care that they require to lead purposeful golden years.

I believe the best way to honour the Merdekas is for the MGP and other Government policies to facilitate their ageing with independence. I shall discuss this now in five aspects, in terms of our Merdekas' physical well-being, socio-economic well-being, financial well-being, psychological well-being and the special concern for the well-being of women.

One, primary care. The first aspect of ageing with independence is physical well-being. The healthcare system secures our physical well-being, and our investment in preventive health services is paying off. In recent years, the Government has been investing in long-term care to prepare for the ageing society. In an ageing society, primary care is the critical frontline service to keep our seniors in tip-top health. Preventive care is a subset of primary care. Primary care is essential for the early detection and good management of chronic diseases, which are the leading causes of disabilities and deaths worldwide. Our seniors are particularly vulnerable to chronic conditions. Our seniors also need immediate remedies for colds and other common ailments, lest these snowball into major illnesses.

This recognition is built into the PGP in the form of subsidies for outpatient services. This recognition is continued into the MGP with the auto-enrolment of Merdekas into the CHAS scheme and further subsidies at polyclinics and public specialist outpatient clinics, as has benefited the Pioneers.

However, this has created a precedent. There is now an expectation that future generations will be auto-enrolled into CHAS and receive outpatient subsidies when they hit their 60s. Future governments will be hard-pressed into denying future generations of this benefit, not just because of the political cost, but also the sheer logic of the justification. If the Pioneers had worked hard to make Singapore what it is today, if the Merdekas had worked hard so that Singapore stands tall and proud today, who is going to deny that subsequent generations also worked hard to contribute to building a Singapore for future generations?

Did the generation born in the 1960s not work hard in the 1980s and 1990s during the first major economic restructuring and reskilling of the workforce? Did the generation born in the 1970s not work hard in the 1990s and 2000s to bring Singapore through the Asian Financial Crisis, the tech bubble recession, and the Severe Acute Respiratory Syndrome (SARS) crisis?

I do not think this is a bad precedent. In fact, it can and should be turned into something good. I, therefore, call on the Government to commit to providing primary care subsidies for all subsequent generations of seniors, that everyone who turns 60 would be auto-enrolled in CHAS and receive additional outpatient subsidies. Again, the MG is setting the foundation for subsequent generations.

In the last few years, the Government has socialised hospitalisation and disability insurance, making it universal and compulsory. With MediShield Life and CareShield Life, we are now dedicated to supporting one another as we age, shoring up our interdependence to secure our ageing with independence. Making it compulsory for all Singaporeans to help one another to pay for hospitalisation and disability has helped the Government save in healthcare expenditure. Singaporeans paying for one another has allowed the Government to focus its investment on the healthcare system and long-term care.

In return, the Government should make it compulsory that it provides for primary care subsidies for all future generations of seniors, so that we can all age with independence like the Pioneers and the Merdekas. I believe the Government should do this, not because of the political pressure, but because, with MediShield Life and CareShield Life in operation, making primary care affordable for all seniors will plug the remaining big gap to make public healthcare in Singapore truly universal and accessible to all.

Two, working as long as one desires. The second aspect of ageing with independence is socio-economic well-being. Singaporeans are renowned worldwide as a people who work hard and play hard. As a hardworking people, socio-economic well-being is a very important aspect of our overall well-being. Socio-economic well-being refers to the fulfilment one gets from being economically active. This fulfilment is both physical and mental. It is also social, as work brings people together to interact and collaborate to achieve specific objectives. Thus, many of our colleagues are also our friends.

Human beings are creative animals. What makes us distinct in the animal kingdom is our desire to be creative, to work to create things that become part of our social identity. Work is, therefore, filled with meaning and purpose. It underpins our dignity as human beings. Life expectancy has increased so much to give us decades of extra time to age with meaning, purpose and dignity. In the post-industrial economy, our workers are skilled knowledge-based workers who are continuously learning new skills. To allow our older workers to work as long as they desire, as long as they are able to, is to allow our workers to age with independence. This is because work provides for meaning, purpose and dignity.

Our older workers should be respected for their experience gathered in a lifetime, and not forcibly retired when they still have so much to contribute in meaningful ways. Our seniors should be allowed to continue to use their skills developed in a lifetime so that they find their lives to be filled with purpose. Our seniors should also be treated with dignity, not subjected to an ageist mindset or have their wages docked mechanically by formula just for crossing some threshold making them "old" when they can be just as productive.

In this regard, I would like to call on the Government to, one, remove the retirement age entirely; two, move the redefined re-employment age to 70 when employers would place able workers on rolling re-employment contracts; and three, restore the CPF contribution of older workers. This will allow our workers to strengthen their socio-economic well-being and age with independence. Doing this now that the MG is reaching the current retirement and re-employment ages of 62 and 67 is very appropriate. From the perspective of the economy and society, it is also a waste of human capital for workers to retire prematurely when their skills and experience are still invaluable. It is a win-win solution.

Nevertheless, our workers should also be empowered to retire in their 60s if they want to retire. Retirement, for many, is not the end of work, but the pursuit of creative activities that could be unpaid work, for example, providing childcare for their grandchildren, or part-time work in fields that they could not pursue previously. To enable our workers to work if they can and want to work by removing the retirement age does not mean, I repeat, does not mean to get Singaporeans to work till they die. It is to reform the system so that Singaporeans do not have to worry about their finances and can retire in their 60s if they want to, but they can also continue to work if they want to. The ideal would be that, from today, no Merdeka-Generation Singaporean, no Merdeka, would be compelled to retire or forced to work by necessity.

Three, CPF as safety net. The third aspect of ageing with independence is, therefore, financial well-being. Once we change our mindset about retirement and allow our workers to work as long as they can work and want to work, and to retire if they want, our approach towards CPF should also change. CPF has already been delinked from the retirement age and re-employment age. The question that remains is: what role should CPF play in the new ageing society we are facing?

In our maturing society, and especially from the MG onwards, our would-be seniors will increasingly not be dependent on one single source of income to meet their needs. This is a good thing, as it provides the financial basis for ageing with independence. Some will have enough savings that can be used to purchase private annuities. Many will be owners of a housing asset that can be monetised. Others will want to continue to work and they can continue to work to maintain a steady stream of income. In such a context, CPF becomes an avenue of supplementary income.

But CPF is more than supplementary income. CPF is a store of a worker's savings and is akin to a fixed deposit account. We have to be unequivocal in stating that the monies in a CPF member's account belong to the CPF member, no fudging around this principle just because there is an employer contribution component and there are occasional Government top-ups. Our CPF savings are the fruits of our labour, period. Our CPF monies are our savings secured by the Government as a fixed deposit account with attractive interest rates.

In this respect, CPF can be a crucial safety net in two ways.

First, we need to recognise that there will be ageing Singaporeans, whether now among the Merdekas or in subsequent generations, who will not have enough savings and who do not own housing assets. These Singaporeans will not be working because they want and can, but because they have to in order to survive. For these Singaporeans, WIS is important, and they may also seek ComCare help. But while ComCare assistance is a dignified option for those who are really destitute and cannot work, it is not the same for a senior who can work. Such seniors would rather age with independence and not be dependent on state handouts.

If their CPF Life payouts can start earlier for these seniors, their financial well-being will be secured with their own savings. Therefore, I would like to reiterate the Workers' Party's call to lower the CPF Payout Eligibility Age to 60, so that Singaporeans can have the option of meeting their needs with this source of supplementary income. Of course, if there is no need for CPF Life payouts to act as supplementary income, seniors should have the option and be encouraged to leave their monies in their CPF account to accumulate interest and get larger payouts later. The youngest of the MG is turning 60 years old this year. It is, therefore, an appropriate time to reconsider this.

Second, CPF can function as an insurance against crises. This is not unlike why many put their savings in fixed deposits. Fixed deposits can be withdrawn easily to meet urgent needs, compared to less liquid investments with higher returns. Major illnesses, accidents and other crises can disrupt the normal life course of an older Singaporean and erode his or her quality of life. One of the first things that many people do in such situations is to cut back on expenditure on quality food, which could worsen their health in the long run. Some may even be forced to sell their housing assets to tide over the crisis.

CPF members can currently apply to make partial withdrawals on medical grounds, if "they are physically or mentally incapacitated to ever continuing in any employment". The condition "ever continuing in any employment" is very extreme. I would like to call on the Government to allow partial withdrawals of CPF if a member is so physically or mentally incapacitated to continue in employment for a significant period of time. Such withdrawals should be determined on a case-by-case basis, with the objective being for the withdrawal to help a member tide over the crisis with their own savings so that they can return to employment.

Four, deepening ageing in place. The fourth aspect of ageing with independence is psychological well-being. The current understanding is that ageing in place is the best option for our seniors because the stability of their community environment will provide for their psychological well-being. Urban planning and public housing policies can also facilitate this by implementing renewal in ageing estates, so that our seniors are embedded in mixed environments that encourage interaction with younger families, especially if their own children's families are living close by. Neighbourhood renewal and home improvement projects have also improved accessibility and safety to encourage active ageing.

These initiatives are positive for ageing with independence. But all things being equal, it is a good policy to allow our seniors to live out their lives in the HDB flats and neighbourhoods where they raised their children in and built their community networks on. Place is more than space. Place is a locality made meaningful by memories and relationships. Ageing in place is ageing with independence. The familiarity of the neighbourhood and the neighbours, and the neighbourhood eating places and shops, provide for active seniors who know how to navigate their living spaces to support themselves.

The Merdekas are among the first beneficiaries of our HDB policy to house the nation. The majority of the MG would have started their families in HDB flats. Thus, the flats and estates they live in would very likely hold special meaning and memories for them. We should try to ensure that the Merdekas would not need to move from the flats and neighbourhoods they had raised their families and built communities in, so that they can preserve their meaning and memories of home, and age in place and with independence.

The Lease Buyback Scheme is a policy that allows Singaporeans to truly age in place and with independence. Many Merdekas will be reaching or have reached the eligibility age of 65 years old for the scheme. The MGP is a good opportunity to promote the scheme to our seniors, as there are still too many seniors who are unaware of the benefits of the scheme. The Government could build further incentives for Merdekas to take up the scheme into the Package. This way, no Merdeka-Generation Singaporean will be forced to downgrade to smaller flats or relocate to an alien neighbourhood because of financial need. They do not have to sell their flats, just the end part of the lease back to HDB.

Five, Merdeka women. The fifth aspect of ageing with independence is the need for special consideration for Merdeka women. CPF statistics suggest that women in the MG need extra help. In 2006, for CPF members aged 51-54, male members' Ordinary Account and Special Account balances comprised 63% of the total balances of all members, leaving female members with 37%. This is a substantial gender gap that also suggests Merdeka women earned less from paid work in their lifetime and, therefore, have less savings beyond their CPF.

While the gender gap is being closed with each generation, there is an urgent need to provide extra help for Merdeka women. We continue to call for gender-equal premiums for CareShield Life. However, since CareShield Life premiums are currently gender differentiated, I would like to call for the participation incentive for female seniors to enrol in CareShield Life to be raised in proportion to the gender gap in CPF savings for their generation.

The MediSave top-ups for Merdeka women should also be calibrated to plug the gender gap. I would also like to call for more generous provisions for Merdeka women who are still caregivers for their aged parents or siblings. Subsidies for long-term home and centre-based care should be increased for them.