Support the unemployed and self-employed, draw Singaporeans to skilled trades, say MPs

• Feb 24, 2023

WORKERS were the focus of the second day of the Budget debate, as Members of Parliament suggested more support – for the unemployed, self-employed, and middle-income – or raised the need to get Singaporeans into certain trades and industries.

Nine labour MPs were among the 29 who spoke on Thursday (Feb 23). Patrick Tay, assistant secretary-general at the National Trades Union Council (NTUC), reiterated his call for short-term financial support for workers who have lost their jobs.

This would give them “the space to upgrade their skills and look for suitable employment, with the knowledge that they would be able to continue supporting their family’s basic needs”.

He acknowledged concerns that workers might then stay unemployed for longer, and thus find it hard to re-enter employment. But in a PME taskforce survey, almost 80 per cent said such support would help cover workers’ needs during their job search, he noted.

Workers’ Party (WP) MP for Aljunied GRC Jamus Lim said unemployment insurance schemes can be designed to reduce tradeoffs. They could tie larger payouts to shorter durations; reduce benefits over time; or have a wage tax after re-employment that rises with the length of unemployment.

For unemployment support, the WP suggests a six-month duration and a payout of 40 per cent of last-drawn salary – less generous than other countries, he said, “to ensure financial sustainability”.

Sembawang GRC MP Mariam Jaafar, however, thought that few middle-income earners would take up voluntary unemployment insurance, and fewer would support a mandatory scheme.

Instead, existing schemes could be improved, she said. ComCare assistance could be tiered by last-drawn income and time-limited, with job search or training requirements.

For self-employed persons (SEP), training allowances could reduce the opportunity cost of upskilling, said Pasir Ris-Punggol GRC MP Yeo Wan Ling, an NTUC director.

Similarly, NTUC deputy secretary-general Desmond Tan proposed protected training leave for employees or a training allowance for the SkillsFuture Career Transition Programme – which could be expanded to more sectors, too.

Separately, Yeo suggested skills frameworks with apprenticeships for professions involving skilled craft or trades, such as photographers, videographers, plumbers and mechanics.

MPs wanted greater recognition for skilled trades, which would also encourage Singaporeans to take them up.

WP MP for Aljunied GRC Leon Perera called for a “concerted policy effort” to improve wages, skills, productivity, working conditions and societal respect for trades jobs like carpentry, plumbing, air-conditioner repair, forklift and crane operators.

The progressive wage model could be extended to “skilled essential tradesmen” such as plumbers, electricians and air-conditioning technicians, said Ang Mo Kio GRC MP Gan Thiam Poh.

Both Gan and WP MP Gerald Giam also raised the need to attract locals to the maritime industry. Naming manufacturing and construction as other industries reliant on foreign labour, Giam said that the popularity of platform delivery jobs shows that Singaporeans are open to physically demanding work.

According to a study, workers leave platform delivery in search of higher salaries, longer-term career pathways and opportunities to learn new skills, he said. Industries that provide these can attract more locals, he added, citing nursing and early childhood education as examples.

NTUC assistant secretary-general Desmond Choo (Tampines GRC) noted a widening salary gap between university graduates and non-university graduates.

The latter often become associate professionals and technicians, whose economic contribution “might not be valued fairly by the market”, he said: “We need to move towards a better balance in valuing both technical and academic routes of career advancement.”

Marine Parade GRC MP Mohd Fahmi Aliman suggested expanding the Workfare Income Supplement to cover more middle-income workers, and to increase payouts for those with dependents.

He also suggested annually reviewing the Local Qualifying Salary – the minimum that locals must be paid if their employer wants to hire foreign workers – to keep pace with targets for lower-wage workers.

Besides labour issues, some MPs wanted better support for small and medium enterprises (SMEs), especially with grant applications. As this process is sometimes complicated or lengthy, SMEs may not receive the money in time, said Chua Chu Kang GRC MP Don Wee.

Nee Soon GRC MP Derrick Goh said that SMEs might score Budget 2023 as a “B” or even “C”, given the seeming “shift away from pro-business growth”. As “little has been said” about helping SMEs strengthen environment, social and governance (ESG) capabilities, he doubted they could step up in time with existing ESG measures.

Meanwhile, other MPs wanted bigger firms to contribute more, given that they may benefit from government grants or tax breaks.

Such firms should have to share the benefits and profits – “at the very least with employees at all levels, and at best, with the broader community”, said Vikram Nair (Sembawang GRC). “I think it is fair to put conditions and expectations on private enterprises that benefit from the public purse.”

Progress Singapore Party’s Non-Constituency MP Hazel Poa said corporate tax should be calculated based on profits before tax, so that more profitable companies pay more. Currently, those with the highest profits pay the lowest percentage of their profits as tax, she said.

If companies with profits above S$1 billion pay just 3 per cent of this in tax – instead of the current 0.9 per cent – then an additional S$5 billion in tax revenue would be raised per year, she noted.

Several MPs also raised concerns about the climate crisis and Singapore’s energy resilience, with the Russia-Ukraine war having highlighted the latter issue, said Sembawang GRC MPs Lim Wee Kiak and Poh Li San.

Lim suggested that solar panels be made mandatory for all new buildings, while Poh said Singapore should develop local talent for the green energy transition.

The government should help local firms adopt a national standard of carbon accounting, and support them to build related capabilities and tools, said Edward Chia (Holland-Bukit Timah GRC). This would help future-proof the Republic’s industries, in line with the Singapore Green Plan.

But Nee Soon GRC MP Carrie Tan offered a contrasting view: economic growth requires energy consumption that exacerbates climate change, and the current economic model fails to account for people’s well-being.

“In order for us and our world to survive, we must slow down the rate of economic growth, or our future generations will suffer its consequences,” she said. “This requires us to reshape our current national narrative and understanding of progress.”

Source: https://www.businesstimes.com.sg/singapore/support-unemployed-and-self-employed-draw-singaporeans-skilled-trades-say-mps