| Here's my speech in response to Budget 2009:
Today is the rainy day we have been saving up for. The idea of dipping into your savings during extraordinarily hard times is natural. This is why I support this Budget’s move to use our reserves for two things: one, to prevent a severe loss of jobs; and two, to help tide low-income citizens over this trying period.
The Budget 2009 was crafted with a strong sense of realism and deep respect of uncertainties of the future. There is no doubt that this budget had to expansionary. Compared to the trillion dollar collapses, S$20.5B or approximately US$15B might not sound like a lot of money, but put things in perspective, the S$20.5B represents 6% of the GDP, to date it has become one of the most aggressive stimulus plans per capita basis on this planet. That is why when I hear the Honourable member Low Thia Khiang said in his speech that is “not unusual fiscal response”; I wondered what would be unusual for him and what would be enough in his view.
But this Budget only marks the beginning of a long road we all need to undertake, individually and as a nation. Let us use this financial crisis as an opportunity to examine the way we do things. To refocus on the basics and re-determine our fundamentals. We seem to have forgotten what these are, judging by the excesses of the last 10 years.
When it comes to jobs I call upon both employers and employees to do the right thing, for each group depends on the other for the means to make it through terrible economic times.
Employers
To employers, I say: the survival and success of your businesses and companies are crucial. It means more the continuation of all you have worked hard to achieve. For in your hands is the livelihood of thousands of people.
However, allow me to point out that for us to be a more competitive economy the productivity must improve. Unfortunately this is not the case in the last few years. It is distressing to see that despite the millions of dollars poured into this country’s continuous education and training infrastructure, millions of dollars to give you a highly skilled and up-to-date workforce, Singapore’s/Singaporeans’? productivity has declined.
One can only conclude that it is a result of employer’s much-stated preference for foreign workers over locals. Don’t get me wrong – I am of the view that foreign workers are vital to our economy, especially in sectors where locals are few and hard to find; where they bring valuable skills and talent to grow our industries; and where the can transfer their expertise to our locals. But when cheap foreign labour as an immediate panacea to your labour concerns supercedes the upgrading the skills of the workforce, it becomes a concern. Low-cost production hubs like China and India have been investing in capital and improving labour productivity. Can Singaporean employers afford to simply sit still and depend on cheap foreign labour?
Take the opportunity to go back to basics to improve productivity -- hire local workers.
Over the years, the CDCs and the NTUC have been heartened to work with companies in many areas from foot reflexology, pest controllers and those in the security sector, which have been receptive to going local. Increasingly, the F&B, Healthcare, Conservancy and security sectors are also willing to give older workers a shot. A few of the key players who do this are Singapore Power, Rentokil and Watsons,
But just as there are exemplary employers, there have been some with unreasonable demands. These include employers who are only willing to hire people between 20 to 30 years old for jobs like cashiers, kitchen helpers, waitresses, jobs which older workers have shown time and time again that they can excel at.
Employees
To Singaporean workers young and old, I say: your time has come; time to make use of the current climate to improve yourselves. Don’t be discouraged by the gloomy outlook. There are and always will be opportunities, even at the worst of times.
We do see how difficult times have become. At my CDC, there has been a surge in the number of people seeking help to find work. In the last 2 months of 2008, the CDC saw a larger than 20% increase in the number of job seekers. From an average of 400 a month, the number has leapt to 520 a month. In January this year, it jumped another 17%, to 610 job seekers. In December, about third asking for help were PMETs -- professionals, managers, executives and technicians. Usually, they make up 20% of job seekers. So that’s a 50% increase!
Finding people a job is one thing. Persuading them to take it is another. First and foremost they have to ask themselves: How adventurous am I? Am I open to new experiences? Am I willing to try a new line, a new career?. In the CDC, we have seen too many people who don’t have a gung-ho spirit. At least 75 people a month refuse to take up good jobs. And their excuse? Here’re some of the reasons we’ve heard:
- I don't want to work shifts
- Cannot, too far away from my home
- I don't want to serve people
- I only want to work in an office
Then there are the ones who ask for a salary beyond what they can realistically command, given their work experience and qualifications. And those who once held middle managerial or senior managerial positions, who insist on similar jobs with similar pays, despite the current situation.
The problem is that with every recession, manufacturing plants and offices shed jobs. Singapore is now a service and knowledge economy. There is no shame in providing service. Surely, the greatest dignity is in earning your own keep? And change is possible.
Central Singapore CDC will do more to help retrenched professionals like Roy and Chin Shia. We will run workshops where they can brush up on their interview skills, resume writing, and other all the other aspects of hunting down a job. We will also run more CLICK! sessions, which have been proving very successful in motivating retrenched PMETs. We will also explore working with head hunters and recruitment agencies to find suitable jobs for this group of people.
Helping the Needy/ Low-income
Sir, let me now touch the issue of helping the needy and low income. The numbers seeking financial help has increased by 20%, from 800 to about 950 per month, since November 2008.
Last year CS CDC spent $17.6 million through national and local schemes. We helped some 12,000 low-income households. That is about the population of a Single Member Constituency (SMC). To spread out the network of help, we’ll work with our 23 grassroots divisions and their ComCare Funds, and all our VWOs and social services organisations.
Yes we are going to need to give more help, in these extraordinary times. We have to reassure our citizens and residents they will be help if they are genuinely in trouble. But at the end, no matter how much help is extended, people have to help themselves. Unfortunately, we’ve seen a fair share of those who don’t seem to want to. They just wanted money .
One man claimed he is unfit for work, but could not produce a medical certificate to explain what was wrong with him. We could not see any physical disability
One woman, a housewife, said she couldn’t go out and work because someone had to stay home to look after the children. But children are already in secondary school or junior college.
This sort of attitude will not do.
Credit Card Culture
Let me touch on the credit card situation in Singapore.
For a young person, does not matter whether male or female, unless you are the grandson or granddaughter of a multimillionaire, it is ridiculous to chalk up credit card debts of thousands of dollars. Let me illustrate by an example of $75,000. The interest rate repayment alone on a monthly basis at 2 percent is $1,500. Very people in this situation would be able to get out of the debt situation not at least for another ten years. The credit card and rollover of credit in Singapore has reached absurd proportion.
As at end 2007, the total amount of credit card rollover was a staggering $600 million. This amount would be able to provide a monthly stipend of $1,000 for a whole year benefitting 50,000 low income families. The same amount could buy about 4 million 5 kilos Thai jasmine rice. While our population base grew at only 15 percent from year 2000 to 2007, the amount of credit card in circulation grew from 2.45 million in 2000 to 5.6 million in 2007.
Credit card is too easily available. It is a phenomenon that is global in nature. In the US, the Foreign Policy magazine survey showed that there are 5 credit cards for every person. In China, there is only one card for every 33 person. It is therefore little wonder, in this financial crisis, the United States is the cause and the People's Republic of China is the saviour. In fact, China is one of the biggest buyer of American treasuries at US$681.9 Billion dollars. How many credit cards do you have in your wallet?
Sir, before we go the route of Americans, being known as a nation of spenders rather savers, something needs to be done about the easy availability of credit cards in Singapore. I have been made known know of a case of a foot masseur, earning less than $4,000 a month having 6 gold and platinum credit cards and the same amount of credit line.
It is worthwhile for us to re-look at the values that we impart to our children. Parents need to give more guidance to the young. Similarly we need to educate youths on the value of thrift and frugality. Just look at how and why government have always been prudent and it is able to save and grow our reserves so that we are in better position to use during extremely difficult times. We do not accumulate debt but accumulate reserves.
Conclusion
Time for us to take a step back and re-evaluate – our mindset, our skills, our values. Develop true value and real substance that would be able to sustain true thick and thin not superficial.
Though we are small, we can make a difference by leading and showing the way.
Government should help to lower the cost of doing business in whatever way possible. We should incentivise companies and employers who are willing to recruit local workers via CDC, NTUC, and other government initiated job placement programs. This would give our unemployed Singaporeans a fair shot at landing jobs.
Thank you.
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