Friday 29 May 2020

DPM Heng Swee Keat on Singapore GE: The sooner we get it done, the earlier we can rally everybody together to fight COVID-19

COVID-19 crisis poses challenges over next 5-10 years: DPM Heng Swee Keat
Country needs to rally together to tackle them and also deal with very significant uncertainties
By Toh Wen Li, The Straits Times, 28 May 2020

Singapore's economy faces significant long-term challenges that need to be dealt with over the next five to 10 years, Deputy Prime Minister Heng Swee Keat said yesterday.

And the sooner the general election is held, he said, "the earlier we can rally everybody together to deal with these very significant challenges ahead, and also to deal with these very significant uncertainties in the months and years ahead".

Singapore's next election must take place by April 14 next year, and Mr Heng's remarks, in an interview with TV station CNA, are the strongest hint by a minister to date that the polls could be called soon.



Asked whether Singaporeans will have to wait until phase three of resuming economic activity before the election, Mr Heng said: "The sooner that we can deal with the longer-term challenges, the better Singaporeans will emerge out of this, and Singapore will emerge stronger.

"So I would say that, yes, elections are coming nearer by the day, and you have to be prepared for it. If you look at what other countries have done, they have been able to do it (hold an election), even under very difficult circumstances. South Korea has done it and in fact, they had a record turnout."

"When we do so, the public health considerations and public safety will be a foremost consideration," he said. "Even the way in which elections are to be conducted will be different from before."

A law allowing special, temporary arrangements to be implemented, if the election takes place amid the coronavirus pandemic, came into operation on Tuesday.

The Parliamentary Elections (COVID-19 Special Arrangements) Act allows some voters who are under stay-home notices to vote under special arrangements, and lets aspiring candidates authorise a representative to file nomination papers for them if they are unable or unfit to do so.



On Tuesday, Mr Heng, who is also Finance Minister, announced a $33 billion supplementary Budget - Singapore's fourth support package this year. The Fortitude Budget, as it is called, aims to help workers and businesses tide over the COVID-19 crisis and the grim economic outlook. Combined with the three earlier Budgets, it takes the total amount the Government is dedicating to this cause to $92.9 billion.

The latest Budget requires a draw of $31 billion from past reserves. Altogether, the Government is looking at drawing up to $52 billion from past reserves this financial year.



"Our financial position will be a lot weaker in the coming years. And I'm thinking hard about this, about what we need to do, and how we need to continue to find ways that we can manage this difficult financial situation," Mr Heng told CNA.

"For now, the most important thing is first, keep our people safe. And second, let's get the economy going again, as much as possible. It will not be easy. But if we put our minds to it, we can emerge stronger. And with that, we can begin to rebuild our resources over time."

In the latest Budget, Mr Heng also set aside $13 billion in the Contingencies Fund and the Development Contingencies Fund, for urgent, unforeseen expenditures - more than the $3 billion set aside every year for both funds - to "respond swiftly to a rapidly changing situation".

He said: "I hope that we do not need to have a fifth Budget in order to respond, because if the situation deteriorates, it is going to be very, very fast."

A key focus is protecting jobs, including enhancing the Jobs Support Scheme that co-pays salaries to help firms retain workers.

A new SGUnited Jobs and Skills Package will also create 40,000 jobs, 25,000 traineeships and 30,000 paid skills-training places - about 100,000 positions in total.

Asked if the Government expects 100,000 jobs to be lost in the next few months, Mr Heng said: "There is a range of projections on the expected job losses. We have taken that into account, together with the number of new entrants that enter the labour market every year. So, this is how we've sized it, and I believe that for now, that will be sufficient. But if there is a need for us to do even more, we have the resources to do that."
























Limit to reducing reliance on foreign workers: DPM Heng
By Toh Wen Li and Lim Min Zhang, The Straits Times, 28 May 2020

There is a limit to how far Singapore can go in reducing the need for manual work, Deputy Prime Minister Heng Swee Keat said. "We still need to rely on a significant proportion of our foreign workers to do very difficult jobs which many Singaporeans will not want to do," he told CNA in an interview.

He noted that the use of digital technology could make Singapore's built environment sector more efficient and productive as it grapples with a shrinking local labour force. "For us, a combination of men and machines will be a very powerful one, and therefore we must make the best use of how digitalisation can enable us to be more productive and more efficient," he added.

The recent outbreak of COVID-19 among migrant workers in dorms has seen calls for Singapore to rethink its reliance on such labour.

Asked during the interview if there are plans in the pipeline to review the structure and reliance on foreign workers, Mr Heng said the key issue is Singapore's domestic labour force is "insufficient", and will decline as the population ages.

"We are going to put our focus and effort on how we can revamp the built environment (sector) to create better jobs for our people, and to see how we can reduce the manual portion," added Mr Heng, who is also Finance Minister.

"Still, I must caution that there is a limit to how far we can go."



Asked if there were plans to bring forward large-scale projects to boost the economy, he said "certain projects, particularly infrastructure projects, they will have to be built".

"We are hoping to carry on with these projects, if not bring (them) forward. But the critical issue here is, are we able to reopen safely?

"That is why there is a lot of work that is going on to look at how we can manage our foreign workers in the dorms well, and how we can reopen safely."

Public infrastructure projects can also be brought forward, he added.

Yesterday, several business groups and trade associations criticised the calls to reduce the number of migrant workers, saying this could hurt the economy.

Mr Thomas Ang, president of the Specialists Trade Alliance of Singapore, suggested that higher costs and inconveniences would result.

Singapore Contractors Association president Ng Yek Meng said transforming the construction industry, so that it can build more with less labour, "will take time".

Less foreign labour would mean higher construction costs, and make it more difficult for companies to compete for strategic projects, such as building new manufacturing facilities, energy plants and tourist attractions, he said.

He added that higher construction costs would also cause housing prices to rise, and these homes would take longer to build.














Trade associations and chambers issued four statements on the issue of migrant workers in Singapore yesterday. Here are extracts.


COMPETITIVENESS AT STAKE

"Given Singapore's limited workforce, we would not be able to stay competitive in certain sectors if not for migrant workers. We are an ageing society with no hinterland to draw workers from. Migrant workers take on many of the lower-end jobs in Singapore. This allows the vast majority of Singaporeans to take on PMET jobs, and help in creating an innovation-based economy as well. Thus, we urge the Government and Singaporeans to carefully consider the next steps on migrant workers."

THE SINGAPORE INDIAN CHAMBER OF COMMERCE AND INDUSTRY, SINGAPORE MALAY CHAMBER OF COMMERCE AND INDUSTRY, AND SINGAPORE CHINESE CHAMBER OF COMMERCE AND INDUSTRY, in a joint statement.



CRUCIAL CONTRIBUTIONS

"Labour is required in numerous stages of the manufacturing process. A large number of these roles are supported by migrant workers.

In the marine and offshore sector, Singapore shipyards are able to compete internationally for marine and offshore and oil and gas projects because we have the technical competencies and manpower resources to do so... With the support of these migrant workers, our marine and offshore sector has been able to contribute to the construction and maintenance of vessels to sustain sea trade and oil and gas exploration and production globally."

THE SINGAPORE MANUFACTURING FEDERATION, ASSOCIATION OF SINGAPORE PROCESS INDUSTRIES AND ASSOCIATION OF SINGAPORE MARINE INDUSTRIES, in a statement.



CONSIDER THE IMPLICATIONS

"We hope the Government and Singaporeans will consider the very real implications of these suggestions (to reduce migrant worker numbers) carefully, and in the longer-term interest of Singaporean jobs and the economy. One important question is whether Singaporeans can accept higher costs and inconveniences if many of the rank-and-file jobs that keep our industry running are hard to fill. There would be further strains on the maintenance of our network of lifts and escalators if we had fewer migrant workers working alongside our locals in this line. Apart from costs, there would be spillover effects on the safe operation of buildings that other industries and workers rely on."

MR THOMAS ANG, president, Specialists Trade Alliance of Singapore.



BEWARE OF IMPACT

"There have been calls by some non-governmental organisations for a reduction in the number of foreign workers. These workers contribute significantly to Singapore's construction industry and development. They support the creation of our housing, transport infrastructure and overall landscape. Reducing the number of foreign workers would hamper the current speed at which Singapore continues to grow and redevelop. This will inadvertently impact Singapore's economy and business viability.

Today, we have approximately 300,000 foreign workers in the construction sector. They form the backbone of the construction industry (which currently employs close to 100,000 locals)."

MR NG YEK MENG, president, The Singapore Contractors Association.










Reducing migrant worker numbers will hurt Singapore: Trade bodies
Industry leaders warn of higher costs, slower growth and impact on Singaporeans' jobs
By Lim Min Zhang, The Straits Times, 28 May 2020

Reducing the number of migrant workers in Singapore, in the light of the COVID-19 outbreak, will hurt Singapore's economic recovery and harm the job prospects of Singaporeans, several business groups and trade associations said yesterday. 

In a flurry of statements, these groups came out strongly against recent calls to restrict the number of foreign workers in Singapore, cautioning that such steps were unwise and could backfire on Singaporeans.

Migrant workers account for more than 90 per cent of the 32,876 confirmed COVID-19 infections in Singapore as of yesterday and some political commentators have argued that the Republic should consider reducing its dependence on them in the light of the outbreak in the dormitories.



Countering this, the industry groups, between them, asked Singaporeans to consider three central implications of cutting back on migrant worker numbers: Singaporeans might have to put up with higher costs; Singapore's economy might become less competitive; and Singaporeans might not be able to focus primarily on white-collar jobs, as they can now when foreign workers take on the low-paying jobs.

In a joint statement, the Singapore Indian, Malay and Chinese chambers of commerce and industry said: "Given Singapore's limited workforce, we would not be able to stay competitive in certain sectors... if not for migrant workers."

They said migrant workers take on many lower-end jobs in Singapore. This allows the vast majority of Singaporeans to take on PMET jobs, and help in creating an innovation-based economy as well, they added, referring to jobs for professionals, managers, executives and technicians. "Thus, we urge the Government and Singaporeans to carefully consider the next steps on migrant workers."

As of March, there were 720,800 work permit holders in Singapore, excluding foreign domestic workers. Of that number, 287,800 of them were in the construction industry. There were 194,900 S Pass holders, and 193,800 on employment passes.



The Singapore Contractors Association said the 300,000 foreign workers in the construction industry formed the backbone of the sector, taking on labour-intensive jobs that locals preferred not to do. "Reducing the number of foreign workers would hamper the current speed at which Singapore continues to grow and redevelop."

The Specialists Trade Alliance of Singapore put it starkly: Would Singaporeans accept higher costs if jobs such as maintaining lifts cannot easily be filled by locals?

Meanwhile the Singapore Manufacturing Federation, the Association of Singapore Process Industries, and the Association of Singapore Marine Industries rejected suggestions that foreign worker numbers should be cut. The manufacturing sector accounts for about 20 per cent of Singapore's gross domestic product.

They pointed out that businesses in Singapore had been severely tested by the pandemic.

"However, when demand for goods and services returns, we will need workers to keep businesses going and recover," they said. "Without sufficient migrant workers working alongside Singaporeans in key sectors, our economy will be at stake. Our businesses and Singaporeans' jobs will be at stake."










Workers' Party calls for ground rules on election campaigning during COVID-19 pandemic to be published promptly
By Kok Yufeng, The Straits Times, 29 May 2020

The Workers' Party (WP) has called on the Government to publish ground rules on how political parties should campaign if a general election were to be held amid the ongoing coronavirus pandemic.

In a statement yesterday, WP said there has been a "distinct lack of clarity" as to how campaigning would be modified in view of the COVID-19 pandemic.

"Several ministers have made vague and unspecific comments since March that campaign methods would need to be modified. However, despite the party's calls, there has been no definitive announcement by the Elections Department (ELD) on these anticipated changes," WP said.



Political parties risk squandering resources due to this uncertainty and the window of time to find suitable suppliers of relevant services was narrowing, it added.

For example, while it has been said that the streaming of videos may be employed during the next general election, it is not known if there will be regulations governing the content and format of these videos.

WP added: "While Singaporeans continue to focus on overcoming COVID-19, general elections are an essential feature of our democracy that should not be taken lightly. Contesting parties should know the ground rules as soon as possible, in order to be well prepared to offer Singaporean voters their best efforts at the polls."

The call comes a day after Deputy Prime Minister Heng Swee Keat hinted during an interview that polls could be called soon.

When asked whether Singaporeans will have to wait until the third and final phase of resuming economic activity before going to the polls, Mr Heng, who is also Finance Minister, said the election was coming nearer by the day.

The sooner the general election is held, he said, "the earlier we can rally everybody together to deal with these very significant challenges ahead".

Singapore's next general election must take place by April 14 next year.



Separately, yesterday, the Singapore Democratic Party (SDP) also addressed the issue of election campaigning during the pandemic and made several suggestions, including extending the official campaigning period to 21 days, instead of the current nine.

"Already, mass rallies will not be a big feature (if they are allowed at all) during the hustings. This puts the opposition at an even greater disadvantage," the party said.

Urging the Government to give contesting parties "equitable access to the electorate", the SDP also called on the authorities to provide all parties with daily access to radio programmes and free-to-air television channels, reserve space in newspapers for parties to publish manifestos and ideas, and allow parties to address residents at food centres, void decks and common areas.

"Now, more than ever, Singaporeans need a fair, transparent and democratic system of governance which only a fair, transparent and democratic (general election) can bring about," it said.

On Tuesday, a law allowing special, temporary arrangements to be implemented if the next general election takes place amid the COVID-19 pandemic came into operation.

The Parliamentary Elections (COVID-19 Special Arrangements) Act allows some voters who are under stay-home notice to vote under special arrangements, and lets aspiring candidates authorise a representative to file nomination papers for them if they are unable or unfit to do so.

During the debate on the draft law, the issue of safe and fair campaigning was brought up by several backbenchers, including WP chairman Sylvia Lim, Marsiling-Yew Tee GRC MP Ong Teng Koon, as well as Nominated MPs Walter Theseira and Anthea Ong.

In response, Trade and Industry Minister Chan Chun Sing, who spoke on behalf of Prime Minister Lee Hsien Loong, said election campaigning rules were outside the scope of the Bill and the ELD would share campaigning guidelines in due course.

He said the ELD's practice has been to issue an advisory on campaigning guidelines, together with other authorities such as the police and the Ministry of Home Affairs.

The ELD will also work with the Ministry of Health on the health and safety aspects of campaigning before issuing its advisory.

"This will be done with sufficient time for political parties and aspiring candidates to prepare," added Mr Chan.




















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