SINGAPORE: With the weak economic outlook and soft job market, it may be time to re-examine some policy approaches for mid-career workers, said Workers’ Party Member of Parliament Sylvia Lim on Wednesday (Feb 26).
Speaking during the Budget debate in Parliament, she said that the “significant” resources the Government has devoted to enable mid-career workers to skill up and transit to other industries are necessary.
AdvertisementAdvertisement[h=3]READ: 10 things you need to know about Budget 2020[/h]She added that she agreed with the Government’s effort in the Budget to boost the hiring of locals and mid-career transitioners by reducing the S-Pass sub Dependency Ratio Ceiling (DRC) in the construction, marine and process industries.
In his Budget speech on Feb 18, Deputy Prime Minister Heng Swee Keat announced that the S-Pass sub-DRCs of the three sectors will fall to 15 per cent this year. The DRC is the maximum permitted ratio of foreign workers to the total workforce that a company is allowed to hire.
“Is it time now to consider other measures too, that Singaporeans can tap on more seamlessly, and for security and peace of mind?” she asked.
AdvertisementAdvertisementMs Lim said that despite efforts made by the Government to help mid-career workers, their anxieties will be “hard to assuage” because transiting into new industries takes time.
“There could be mismatch between openings and applicants. Seeking help from Government agencies also positions the citizen as someone applying for help, which can be a humbling experience. All this can be a tremendous mental and emotional strain on the whole family,” she said.
While the Government provides assistance, it has always been "a tenet of this Government to promote self-reliance among Singaporeans", she said, adding that Singaporeans prefer to be self-reliant and not have to seek Government assistance at every turn.
The MP suggested two measures – "some sort" of redundancy insurance and more liberal use of CPF savings.
On redundancy insurance, she said: “This has been previously debated in the House, with the Government calling it ‘not a crazy idea’ but preferring its current approach of job creation and reskilling.
“Today’s economic climate illustrates how such insurance could provide a stabiliser to workers to soften the cliff edge that they face with job disruption.”
She also suggested allowing more liberal use of CPF savings for education and reskilling. This would be reasonable for CPF members whose savings already exceed the applicable minimum sums, she said.
“The Government would need to reassess its approaches periodically as economic and technological realities change. If the anxiety of citizens is not taken seriously enough, the door to populism and nativism will widen,” she said.
GROCERY VOUCHERS SHOULD BE ALLOWED AT SMALL STORES
Hougang MP Png Eng Huat noted that the Government expects seven in 10 active CPF members from the 2021 and 2022 cohorts to be able to set aside the basic retirement sum.
Mr Heng had announced in his Budget speech that the basic retirement sum would increase by 3 per cent per year for the next two years. The basic retirement sum will be S$93,000 for cohorts turning 55 in 2021, and S$96,000 for cohorts turning 55 in 2022.
[h=3]READ: Budget 2020: S$1.6 billion Care and Support Package to help Singaporeans with household expenses[/h]“That would mean that 30 per cent of the members in these cohorts would not be able to live on their CPF payouts alone when they reach their payout eligibility age in 10 years time,” said Mr Png.
The “more concerning part” was that six in 10 CPF members could not meet the basic retirement sum 10 years ago, he added.
“Some of these Singaporeans are on the old retirement sum scheme and would have reached their PEA (payout eligibility age) by now," Mr Png said.
While the measures announced in the Budget would “go some way” to alleviate “the hardship and uncertainty” for those with little or no retirement savings, Mr Png added that they are “still predicated on additional family support and own savings, something policyholders should not presume when formulating policies on retirement adequacy”.
Mr Png also welcomed the the Senior Worker Support Package and the Stabilisation and Support Package, adding that the enhancements to the Silver Support Scheme are also “long overdue”.
“A number of my residents were shut out of the Silver Support Scheme when it was introduced in 2015, as they have more than S$70,000 in their CPF at age 55,” he said.
“Many of them wonder, how long does the government expect S$70,000 in total CPF contribution at aged 55 to last, when housing alone would have taken a big chunk of it, if not all of it, away? And these people would share that they were low wage earners to begin with, and were living from paycheck to paycheck with little savings.”
Speaking on the Grocery Voucher Scheme, Mr Png suggested that the scheme be extended to include mom-and-pop shops in the heartlands. Grocery vouchers worth S$100 will be given to needy Singaporeans in 2020 and in 2021 to be used at major supermarkets.
“The grocery voucher scheme is expected to cost the Government S$16 million. Would it not make more sense for the Government to avail these vouchers for all the mom-and-pop shops instead, so as to help these small businesses tide over this difficult period at the same time?” he asked.
“The S$60 million budget for the scheme would go a long way to help these local provision shops, but it would only be a drop in the ocean for the three big supermarkets combined.”
Adding that he has piloted a similar scheme in Hougang that benefited needy residents and two small operator kiosks, he said: “I hope the Government would consider supporting our mom-and-pop shops in a meaningful way in addition to the measures announced in the Budget.
“Extending the Grocery Voucher Scheme to our neighbourhood shops will help bring some buzz and business to the community. This is a win-win arrangement for needy residents and local provision shop owners.”
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