May Day Rally 2023

‘We will always have your back’: 4G team will look after workers in these dark times, says DPM Lawrence Wong

By Goh Yan Han, Political Correspondent, The Straits Times, 1 May 2023

Amid global economic uncertainty and geopolitical tensions, Deputy Prime Minister Lawrence Wong said that he and his 4G team are fully committed to looking after workers and helping them earn a better living.

They will do so by working closely with the National Trades Union Congress (NTUC) and the labour movement, to ensure sustained growth and good jobs for all, he said.

“In these dark times, this is my promise to you,” said Mr Wong at the May Day Rally on Monday where he was the main speaker.

“Come what may, we will always be there with you, for you, and we will always have your back,” he said, addressing about 1,400 labour movement leaders, workers and tripartite partners at the Suntec Singapore Convention & Exhibition Centre.

In his speech, Mr Wong elaborated on points made in April by Prime Minister Lee Hsien Loong on the multiple global storms ahead. He also spoke on how the nationwide engagement Forward Singapore exercise will help workers.

“As we grow the economy, we will also fight the ills of inequality,” he said.

“Singapore must never succumb to the kind of harsh inequality we see in so many other countries. However treacherous the terrain ahead, so long as Singapore continues to progress, all Singaporeans must continue to progress – no one must be left behind.”

This is why the Government is undertaking the Forward Singapore exercise, he said. The exercise, launched in June 2022, will culminate in a report in the second half of 2023.

Mr Wong said that in its Forward Singapore review, the Government is studying how it can invest more in every worker – to help them take ownership of their own careers, continuously reskill and upskill, and take up better jobs and opportunities throughout their working lives.

One way is by shifting SkillsFuture to a “higher gear”, he said, and making skills training and lifelong learning a key pillar of the refreshed social compact with every worker.

Another is by paying special attention to those in vocational and technical roles, as well as Institute of Technical Education and polytechnic graduates.

“We will help them deepen their skills through different pathways, so they can secure better salaries and career paths in the professions they have trained for and have the aptitude for,” said Mr Wong.

He added that professionals, managers and executives will also have to reskill and upskill themselves – given the rapid technological advancements such as in artificial intelligence, which suggest that more human tasks could be taken over by machines.

Noting that it can be hard to juggle work and family responsibilities while studying, Mr Wong said the Government will reduce costs and lower barriers to training.

The Government is also looking at how to further uplift lower-wage workers and professionalise skilled trades, provide more support for those who lose their jobs and enable all workers to meet their retirement needs. It is working closely with the NTUC on the possible solutions, he said.

Acknowledging that workers are concerned about other things apart from jobs, such as the cost of living, Mr Wong said he had implemented comprehensive support measures, including those in Budget 2023.

“We have done everything we can to lessen the stresses and strains that people feel on the ground, and we will continue to do so,” he said.

Another concern is public housing, where the Government has been ramping up the supply of Build-to-Order flats, but there are still worries about affordability.

Mr Wong asked Singaporeans not to look just at the headline price of a Build-To-Order flat, but to also consider how prices relate to income and the proportion of income needed to service the housing loan.

For example, a four-room BTO flat in a new town cost about $40,000 in 1980. Median household income then was around $900, and a typical household would use about a quarter of its income to service the loan.

Today, the price of a four-room BTO flat in a non-mature estate like Bukit Batok costs about $350,000, said Mr Wong.

While the price of the flat has risen nearly 10 times, so has median household income from $900 to $9,000, he added.

In addition, there are housing grants of up to $80,000 for first-timers, said Mr Wong.

“Affordable and accessible public housing – like access to first-rate education and healthcare – will always be a key part of our social compact in Singapore,” he said.

“As long as the PAP (People’s Action Party) remains in charge, we will ensure quality public housing that is affordable and accessible for our children and future generations.”

In his speech, Mr Wong also noted the global storms ahead that PM Lee had warned of – the Russia-Ukraine war, US-China tensions, and increasing protectionism undermining the multilateral global trade system.

These developments will make it harder for Singapore to compete, grow its economy, create jobs and earn a living. But what it must have enough of are “ingenuity and innovation; guts and gumption”, he said.

“That’s the only way we can and will prevail, even when the odds are stacked against us.”

He said that tripartism is one of Singapore’s greatest and most sustainable competitive advantages.

Noting how other First World countries have seen industrial relations break down, Mr Wong said Singapore must not allow that to happen.

“Businesses and governments will push back, further fuelling deep divisions in society. Then it becomes a vicious cycle, because once trust is lost, it’s very hard to recover,” he said.

“Fortunately, Singapore is on the right track. We have a lot going for us, and our tripartite approach ensures that Team Singapore has the best chance of overcoming challenges and seizing new opportunities.”

Mr Wong said this was not the first time Singapore has had to respond to grave challenges.

“Each time we were pushed to the limit, we did not fold and crumble. Instead, we gritted our teeth, worked even harder to defy the odds, and bounced back stronger. That’s how we built today’s Singapore, and that’s how we will keep on making it better.”

May Day Rally 2022

Singaporeans must be prepared for more economic challenges in the year ahead, says PM Lee Hsien Loong

By Justin Ong, Political Correspondent, The Straits Times, 1 May 2022

Singaporeans must be prepared for more economic challenges in the year ahead even as the Government does all it can to cushion the impact of the Russia-Ukraine war, especially on the cost of living, said Prime Minister Lee Hsien Loong on Sunday (May 1).

"The fundamental solution... is to make ourselves more productive, to transform our businesses, to grow our economy, to uplift everyone," he noted. "Then our incomes can go up, and that can more than make up for higher prices of energy and food. Then we can all become better off in real terms."

PM Lee was addressing unionists at the May Day Rally at Downtown East, with some attending the hybrid event virtually.

In his speech, he outlined the Government's measures to alleviate cost-of-living pressures on Singaporeans. These include the $560 million Household Support Package announced at Budget 2022, which comprises U-Save and service and conservancy charges rebates and Community Development Council vouchers to reduce living expenses for nearly all households - with lower- and middle-income households receiving more.

The Monetary Authority of Singapore has also tightened monetary policy to reduce imported inflation, leading to the Singapore dollar appreciating.

Singapore is also taking steps to secure its own food and energy supplies, in the event of these being disrupted by the ongoing Russian invasion of Ukraine, which started on Feb 24.

"All this will help, but we must be prepared for more economic challenges in the year ahead," said PM Lee, pointing to inflation remaining high and central banks in developed countries tightening their monetary policies and raising interest rates.

"Global growth will be weaker, and there may be a recession within the next two years," he warned. "We have to face up to these realities."

Singapore, with its tight integration in the global economy and small size, will always be a price taker when it comes to world markets, said PM Lee. "We have very little bargaining power. If the prices go up, our prices go up. If supplies are short, we are squeezed. We cannot avoid these global headwinds."

Noting that Singapore imports nearly all its supplies of energy, he said that the doubling of oil prices in recent months has come at a cost - to households, businesses and the Government - of around $8 billion, as estimated by the Ministry of Trade and Industry.

He added: "There are limits to what Singapore can do to influence broader international trends. We will push back against deglobalisation. We will speak up to encourage the US and China to constructively engage each other.

"But ultimately, all these matters depend on the major powers themselves, and the relations between them, and how the war in Ukraine unfolds."

Said PM Lee: "We have speaking rights, but we are a small voice. Singapore has to take the world as it is, and develop a strategy that works for us in this troubled environment."

Turning inwards, relying heaving on domestic markets and producing more things onshore is a viable strategy for larger countries - but this is "not a choice open to Singapore", he said.

“Our strategy can only be one - and that is to stay open, to make our economy stronger, more resilient, and to keep on seizing opportunities for growth, developing new capabilities and becoming a more competitive economy,” said the Prime Minister.

"Because if we do that, then despite the uncertain climate, despite the pressures against globalisation, investors will still find it worthwhile to put their projects in Singapore, our exports will still find foreign markets, and we can still earn a living for ourselves in the world."

Singapore Budget 2022: Charting Our New Way Forward Together

Finance Minister Lawrence Wong unveils major tax measures to fund spending needs

Singapore to raise GST from 7% to 9% in two stages in 2023 and 2024

Assurance Package increased to $6.6 billion; GST Voucher scheme beefed up to offset GST hike

Higher personal income taxes for top 1.2% of taxpayers in Singapore

Higher taxes on residential properties, luxury cars, as Singapore adjusts wealth taxes

By Justin Ong, Political Correspondent, The Straits Times, 18 Feb 2022

Singapore on Friday (Feb 18) unveiled a slew of progressive tax measures aimed not only at generating revenues to fund major programmes needed over the next few years, but also at addressing social inequalities.

The hike in goods and services tax (GST) to fund the recurring social and healthcare needs of a rapidly ageing population was further delayed to 2023 in response to concerns over rising prices.

The hike will be staggered over two steps - with GST rising from 7 per cent to 8 per cent on Jan 1 next year, and then to 9 per cent from Jan 1, 2024. The impact of the increase will be cushioned, especially for low-income households.

The wealthy will also pay more of other taxes.

"Those who earn more, contribute more," said Finance Minister Lawrence Wong in his first Budget since assuming the portfolio in May last year, as he outlined increases in personal income, property, vehicle and carbon taxes as part of an expansionary $109 billion Budget, including special transfers.

He also announced a $6 billion draw on the reserves as part of Singapore's continuing fight against Covid-19, and over $1 billion in support for businesses, households and individuals hard-hit by the pandemic.

With a view to future challenges and opportunities, Mr Wong said he would commit up to another $1 billion or so to spur companies to invest in new capabilities, while further tightening workforce policies to ensure foreign hires of the "right calibre".

This year's Budget will run up an expected overall deficit of $3 billion, amid a tone of cautious optimism sounded by Mr Wong as Singapore enters a period of transition and recovery after two years of grappling with the pandemic and its fallout.

"The global economy is still vulnerable to pandemic-related risks, and further supply chain disruptions. Geopolitical and security risks loom," he warned at the start of his speech, which was around two hours long. "We may also see a slowdown in external demand as the major economies scale back their pandemic support, and central banks tighten their accommodative monetary policies to deal with the threat of inflation."

But barring fresh disruptions, Mr Wong said he expects the Singapore economy to continue to do well, and grow by 3 per cent to 5 per cent this year.

Looking ahead, with government expenditures projected to increase significantly in the coming years - especially in healthcare - enhancements to Singapore's tax system would be needed to raise additional revenue, he added.

"That means everyone chips in and contributes to a vibrant economy and strengthened social compact, but those with greater means contribute a larger share," said Mr Wong, who also co-chairs a multi-ministry task force handling the pandemic.

To that end, personal income tax will be increased from 2024. The portion of chargeable income in excess of $500,000 up to $1 million, will be taxed at 23 per cent, up from 22 per cent currently. Chargeable income in excess of $1 million will be taxed at 24 per cent.

Property tax rates will also be increased, with more significant hikes for high-end properties, said Mr Wong.

For non-owner-occupied residential properties, including investment properties, tax rates will go up from the current 10 per cent to 20 per cent range, to 12 per cent to 36 per cent.

For owner-occupied ones, tax rates for the portion of annual value in excess of $30,000 will be increased from the present 4 per cent to 16 per cent, to 6 per cent to 32 per cent.

Luxury cars will be taxed at a higher rate, with an additional Additional Registration Fee tier for cars at a rate of 220 per cent for the portion of Open Market Value in excess of $80,000.

The GST hike, pushed back to 2023 and staggered over two steps, will be heavily cushioned.

A previously announced $6 billion package to help soften the blow of the GST hike will be topped up with $640 million.

To better support the daily needs of the lower-income and elderly, the permanent GST Voucher scheme - now comprising cash, utilities and medical rebates - has also been enhanced, with service and conservancy charge (S&CC) rebates becoming an additional permanent component.

Meanwhile, the projected $6 billion draw on the reserves "to maintain a multi-layered public health defence" against Covid-19 has received in-principle support from President Halimah Yacob.

This will be the third year in a row that the reserves are being tapped, bringing the total expected drawdown for the three financial years of 2020 to 2022 to $42.9 billion - less than the initial sum of $52 billion the Government earmarked in 2020.

This reflects Singapore's prudence in the use of past reserves, he said, explaining that Singapore's pandemic response had averted worse public health outcomes, and that the rebound in economy and businesses had been stronger than expected.

Still, in recognition that some segments of society continue to struggle, Mr Wong announced a $500 million Jobs and Business Support Package, which includes a Small Business Recovery Grant for those most affected by Covid-19 restrictions, such as food and beverage and hospitality enterprises.

They will receive a $1,000 payout per local employee, up to a cap of $10,000 per firm.

A $560 million Household Support Package will also help Singaporeans with utility bills, education and daily essentials. It includes GST Voucher-U-Save rebates for the rest of the year, and additional $100 in Community Development Council Vouchers for all.

To plan ahead for a post-pandemic world and the opportunities it offers, Singapore will also commit an additional $200 million over the next few years to schemes to build digital capabilities in business and workers; and around $600 million to expand the Productivity Solutions Grant for SMEs to implement automation efforts.

New initiatives such as the Singapore Global Enterprises and Singapore Global Executive Programme will help larger firms grow overseas and attract the next generation of leaders.

At the same time, to ensure that incoming employment pass holders are comparable in quality to the top third of the local professionals, managers, executives and technicians (PMET) workforce, from September this year their qualifying salary threshold will be raised from $4,500 to $5,000; and from $5,000 to $5,500 for the financial service sector.

Environmental sustainability was also on the Budget agenda, with Mr Wong revealing that Singapore will now target net zero emissions by or around 2050.

Its previous aim was to halve emissions by then, with a view to achieving net-zero "as soon as viable in the second half of the century".

To match these new ambitions, taxes on carbon emissions will be raised from the current $5 per tonne to $25 in 2024 and 2025, and $45 in 2026 and 2027, with a view to reaching $50 to $80 by 2030.

Another key plank of this year's Budget was renewing and strengthening Singapore's social compact.

For lower-wage workers, a new Progressive Wage Credit Scheme will see the Government helping businesses by co-funding wage increases between 2022 and 2026, for employees earning up to $2,500. For those earning above $2,500 and up to $3,000, co-funding support will be offered until 2024.

From Jan 1, 2023, the qualifying income cap for the Workfare Income Supplement will be raised from $2,300 to $2,500.

Mr Wong also sketched out other efforts in boosting retirement adequacy, investing in children, integrating social service delivery, preparing for future healthcare needs, and better supporting the charities sector; with more details to come when MPs debate the Budget and spending plans of various ministries in the coming weeks.

Prime Minister Lee Hsien Loong said in a Facebook post that this Budget will lay the basis for “sound and sustainable government finances, post-pandemic and beyond”.

“We are building a greener and more sustainable city, transforming our economy to create good jobs for Singaporeans, expanding our healthcare system for an ageing society, and strengthening social programmes so that no one is left behind,” he added.

This Budget is a first step in "realising our vision of a fairer, more sustainable, and more inclusive society", said Mr Wong.

"Looking back at what we have been through during these Covid-19 years, we have nothing to fear. We will always overcome. We will always prevail," he concluded.

"We will chart a new way forward together. We will see through the pandemic today, and build a better Singapore tomorrow."

Progressive Wage Model: Entry-level waste collection workers salary to rise to $3,260 by 2028

Higher wages and clear career pathways for 3,000 waste management workers

By Sue-Ann Tan, Business Correspondent, The Straits Times, 24 Jan 2022

Come 2028, an entry-level waste management worker can expect his salary to double to $3,260, under a new Progressive Wage Model (PWM) for the sector that is set to start from July next year, the tripartite cluster for waste management announced on Monday (Jan 24).

Such a worker earns about $1,600 to $1,800 now, said Ms Melissa Tan, chairman of the Waste Management and Recycling Association of Singapore. She is part of the tripartite cluster, which comprises the National Trades Union Congress, employers and other stakeholders.

The salary increases will be implemented over a multi-year schedule from July 1 next year till June 30, 2029.

A total of 3,000 waste management workers here will see annual wage increments, mandatory annual bonus and a career and skills progression ladder.

The workers will also get a stipulated minimum hourly overtime pay.

From Jan 2024, they will also receive an annual bonus of at least a month's pay if they have been with their employer for at least a year. This bonus does not depend on their work performance.

These recommendations were accepted by the Ministry of Manpower on Monday.

The ministry said these improvements are consistent with the guidance by the Tripartite Workgroup on Lower-Wage Workers to ensure that such workers have meaningful and sustained wage growth to gain ground with the median worker.

Senior Minister of State for Manpower Zaqy Mohamad said: "You will see about 50 per cent wage increase growth in the coming years... I think this is a good outcome between unions and employers.

"But at the same time, we want to see the sector transform in a meaningful and sustainable way."

When asked if this move will raise costs for consumers, he said that not every change in business cost translates to higher prices for consumers.

He added that transitional support for companies will be announced during the upcoming Budget.

The PWM provides a clear career progression pathway for workers to improve their wages. To do so, they must undergo structured training to upgrade their skills.

The model currently covers the security, cleaning, landscaping, and escalator and lift maintenance industries.

Under the PWM for the waste management industry, workers will get a clear career progression pathway from crew to supervisor in the waste collection sub-sector, for instance, and from sorter to waste sorting plant supervisor in materials recovery.

There will also be a minimum number of Workforce Skills Qualifications modules that workers have to take at each level.

With upgraded skills, the PWM will ensure that workers see increased pay over six years, to 2029. For instance, a waste collection crew member earning $2,210 next year when the PWM kicks off, will earn $2,420 from July 1, 2024, and $3,260 in 2028. This marks a compound annual growth rate of 8.1 per cent.

By 2028, a waste collection senior driver will be earning $3,960 - from $2,910 next year - while a supervisor will be earning $3,910, from $2,860.

Mr Fahmi Aliman, chairman of the Tripartite Cluster for Waste Management, said the workers in the sector deserve due recognition for their hard work.

"The committee has been working hard for the past year to come up with a PWM that will boost the wages and skills, as well as improve career progression opportunities of our waste management workers, and in time, attract more workers to the industry," he added.

Ms Tan said the sector is facing a manpower crunch, especially amid the Covid-19 pandemic, as it relies heavily on foreign workers.

“Singaporeans are not coming forward to join this industry because it is not deemed to provide glamorous jobs,” she said.

Meanwhile, demand has risen for waste management services, especially with more packaging waste generated from e-commerce and food delivery.

“I hope that the PWM will attract more Singaporeans to come on board to carry out such jobs with pride,” she added.

How much money do households in Singapore need to achieve a basic standard of living?

Family of four needs $6,426 a month for basic standard of living in Singapore: Minimum Income Standards Study 2021

By Tham Yuen-C, Senior Political Correspondent, The Straits Times, 8 Oct 2021

A family of four, with parents, a pre-teen and a teenager, needs at least $6,426 a month to afford a basic standard of living, a study on household budgets has found.

A family of two, with a single parent and a toddler or pre-schooler, meanwhile, needs $3,218 a month.

But a substantial and concerning proportion of working households in Singapore - about 30 per cent - do not earn enough to meet these needs.

The study was done by National University of Singapore Lee Kuan Yew School of Public Policy (LKYSPP) and Nanyang Technological University (NTU).

Its findings were released in the report Minimum Income Standards For Households In Singapore (2021), and were disputed by the Ministry of Finance (MOF) in a statement on Friday (Oct 8).

LKYSPP senior research fellow Ng Kok Hoe and NTU head of sociology Teo You Yenn, two of the study's six authors, said that the study on how much people need to achieve a basic standard of living in Singapore has exposed some gaps in society.

Using the figures as a benchmark and comparing them against existing income data as well as public schemes show that some segments of the population are not able to meet their basic needs, added Dr Ng at an event presenting the study's findings held over videoconferencing platform Zoom.

But the MOF said "the conclusions may not be an accurate reflection of basic needs largely due to assumptions used", pointing to the limitations of the Minimum Income Standards (MIS) approach used.

The study defined standard of living as one in which Singaporeans can afford housing, food and clothing, and also have opportunities for education, employment and work-life balance, as well as access to healthcare.

It should also enable a sense of belonging, respect, security and independence and afford the choice to participate in social activities and cultural and religious practices.

Based on this definition that emerged from focus group discussions, researchers then convened more focus groups for people to come up with lists of items people from different stages of life will need.

The researchers went to shops or websites mentioned by the participants to find out the real price of each item. These lists were then combined to form the budget of various configurations of households.

Dr Ng said a critical pillar of the MIS approach is to ensure that each focus group is economically diverse, so the budgets resulting from the discussions are not just for particular segments, say the rich or poor. Instead, these budgets apply universally for all Singaporeans, he added.

A total of 196 participants of different genders, ethnicity and socio-economic backgrounds took part in 24 focus group discussions.

National Day Rally 2021

PM Lee Hsien Loong addresses concerns over foreigners, lower-wage workers and race

By Lim Yan Liang, The Straits Times, 30 Aug 2021

Singapore will squarely address the difficult issues of race, religion and fair play in society, as it refocuses on a future with Covid-19 under control.

Building on the nation's hard-won racial harmony and ensuring that economic growth leaves no one behind were key themes of Prime Minister Lee Hsien Loong's 17th National Day Rally yesterday, held both at Mediacorp and on the Zoom videoconferencing platform.

Lower-wage workers, for example, will get more support, with specific policies to raise their income, while discrimination will be tackled.

Touching on the fault lines in society that have been deepened by the pandemic, PM Lee said it was critical that Singapore tackles its social challenges and underlying anxieties, such as the plight of low-wage workers and disquiet over foreign work pass holders.

Many lower-wage workers, for example, were on the front line during the pandemic, which highlighted the importance of jobs such as cleaning, food delivery and security. At the same time, their precarious situation was also laid bare as they have less savings and are more likely to be laid off.

To address this, the Government will extend the Progressive Wage Model to help more workers.

"We will cover more sectors, starting with retail next year, and later food services and waste management," said PM Lee. "We will also cover specific occupations, across all sectors simultaneously, starting with administrative assistants and drivers."

The Government is also studying ways to strengthen job protection for delivery workers and those in similar roles, as they are, for all intents and purposes, just like employees, said PM Lee.

Firms that hire foreign workers will also have to pay all their local workers at least the Local Qualifying Salary, which will be adjusted from time to time.

Currently, these firms are required to pay some of their local employees a qualifying salary of $1,400 a month and not just a token sum to gain access to foreign workers. They will have to extend this to all their local employees.

Middle-income Singaporeans were also facing job anxiety, particularly on account of foreign work pass holders, said PM Lee.

"Concerns over work pass holders are a very delicate subject for a National Day Rally, but I decided I had to talk about it," he said. "We have to acknowledge the problem, so that we can address Singaporeans' legitimate concerns, and defuse resentments over foreigners."

There is a "growing restlessness over foreigners, particularly work pass holders", as middle-income Singaporeans feel increased pressure given the economic uncertainty from Covid-19, said PM Lee.

To ensure that the foreigners who compete for jobs here are of the right standard, Singapore will continue to tighten the criteria for Employment Pass and S Pass holders by raising salary cut-offs.

The Government will also give the Tripartite Alliance for Fair and Progressive Employment Practices (TAFEP) more teeth by putting its guidelines into law, and will create a tribunal to deal with workplace discrimination.

"Writing TAFEP guidelines into the law is a major move: It signals that we do not tolerate discrimination at workplaces," said Mr Lee.

Flagging another fault line, he said race relations have also come under stress because of Covid-19.

He highlighted some recent incidents, such as that of the polytechnic lecturer who in June accosted an interracial couple on Orchard Road.

PM Lee noted that several of the incidents specifically targeted Indians. This could be due to the large number of Indian work pass holders here, or that the Delta variant of Covid-19 first emerged in India.

"But it is illogical to blame this on Indians, just as it is illogical to blame the Alpha variant on the English, the KTV cluster on Vietnamese, or the initial outbreak in Wuhan on the Chinese," he said.

"We must address the real issues - manage the work pass numbers and concentrations, and improve our border health safeguards. But we should not let our frustrations spill over to affect our racial harmony."

While recent racist incidents have reminded the nation of how fragile Singapore's racial harmony is, they do not negate its multiracial approach to nation building, said Mr Lee.

"Our racial harmony is still a work in progress, and will be so for a long time," he said.

To signal what society here considers right and wrong about racial attitudes and nudge behaviour over time, the Government will pass a Maintenance of Racial Harmony Act that consolidates in one place the state's powers to deal with racial issues.

The new law will build in softer, gentler approaches such as directing an offender to make amends by learning more about the other race and mending ties.

"This softer approach will heal hurt, instead of leaving resentment," said Mr Lee.

In a nod to the ongoing Summer Paralympic Games, Mr Lee congratulated swimmer Yip Pin Xiu for her gold medal in the women's 100m backstroke (S2), and Singapore's paralympians for their good performance in Tokyo.

Mr Lee also paid tribute to front-line workers like contact tracers, ambulance drivers, and vaccination centre workers who helped to bring Covid-19 under control, enabling the country to now look further into its future.

"In ordinary times, we may not realise how strong Singaporeans can be," he said.

"Now, in the crisis of a generation, we have shown ourselves and the world what Singaporeans can do... they are our everyday heroes, and they are us."

3 challenges for Singapore to tackle: Low Wages, Foreigners and Race & Religion

COVID-19 has strained fault lines in society and brought up difficult issues Singapore needs to deal with, Prime Minister Lee Hsien Loong said in his National Day message on Sunday. Insight looks at the three issues he cited: lifting the lot of lower-wage workers, addressing anxieties over foreigners, and managing concerns on race and religion.

What more can be done to help lower-wage workers

By Grace Ho, Senior Political Correspondent, The Straits Times, 14 Aug 2021

Every day, Madam Foo Saifang takes the bus from her home in Pandan Gardens to the nearby Pandan Loop industrial estate, where she works as a part-time office cleaner.

She is hired on contracts for service, which do not come with statutory benefits such as annual leave.

Her salary a few years ago was around $600 to $1,000 a month. Today, she draws just under $2,000, depending on the number of jobs she takes up.

When asked if she has thought of looking for higher-paying work, the 63-year-old says no.

Her workplace is near where she lives, and she does not spend much on herself, she says. "As long as I can feed and take care of the stray cats in my neighbourhood with the little extra I have, it's ok."

Are there any job-related improvements she would like to see?

More Central Provident Fund savings and some hongbao during Chinese New Year, she says. "Today, we don't get even get $10 in hongbao from the company."

Covid-19 has cast a spotlight on the stresses faced by lower-wage workers like Madam Foo, many of whom have little by way of savings and who struggle if they have to cope with a pay cut or job loss.

Recent years have seen much attention paid to helping lower-wage workers move up the skills, and consequently wage, ladder.

But what more can be done?

What was said

Lower-wage workers have felt the impact of Covid-19 most acutely, finding it harder to cope with reduced incomes and unexpected job losses. In the short term, they have been given more help amid the crisis.

An essential part of inclusive growth is real progress for lower-wage workers, said Prime Minister Lee Hsien Loong. And as Singapore becomes an increasingly skills-based economy in the longer term, lower-wage workers will need more sustained support so that they and their children have a chance to move ahead.

A Tripartite Workgroup for Lower-Wage Workers has also been working on proposals to uplift their lives and prospects.

What can be done

Three different wage-based policies for low-income workers have been floated.

The first is the Progressive Wage Model, or PWM, which is currently implemented in the cleaning, security, and landscape sectors.

Local escalator and lift maintenance workers will also be covered under the PWM from next year, and workers in waste management will also come under the scheme next.

The second was mooted by Monetary Authority of Singapore managing director Ravi Menon at a recent lecture. He suggested using the Local Qualifying Salary (LQS) as the de facto minimum wage. The LQS, currently at least $1,400 a month, is the minimum that must be paid to resident workers so that they count towards the firm's total workforce when determining how many foreign Work Permit and S Pass holders it is allowed to hire.

The third approach is an economy-wide minimum wage, which members of the opposition have called for but is something which has not been taken up.

Cleaners in Singapore to see wages increase over 6 years from 2023 under progressive wage model

Move set to benefit 40,000 workers across 1,500 cleaning businesses in Singapore

By Jolene Ang, The Straits Times, 8 Jun 2021

Cleaners will see their wages continue to go up each year from 2023, over six years, after proposals by a tripartite committee on the cleaning wage ladder were accepted by the Government yesterday.

From 2023 to 2028, the base wages of Singaporean and permanent resident cleaners across all job levels will increase each year. This will benefit about 40,000 cleaners across about 1,500 cleaning businesses in Singapore.

The first adjustment in 2023 will see base wages of general and indoor cleaners increase by, for example, almost 20 per cent from $1,312 next year to $1,570.

The move is meant to narrow the income disparity between cleaners and other workers. Under previous updates to the Progressive Wage Model (PWM) in 2016 and 2018, cleaners were slated to get 3 per cent annual wage increases from last year to next year.

The latest wage increases were among new recommendations made by the Tripartite Cluster for Cleaners (TCC), after it conducted another round of reviews of the model.

The PWM, a ladder that sets out minimum pay and training requirements for workers at different skill levels, was launched in the cleaning sector by the TCC in 2012. It has been a compulsory condition since 2014 for the licensing of cleaning companies.

The TCC - which comprises representatives from the labour movement, industry, service buyers and the Government - also recommended having cleaners trained in workplace safety and health protocols by the end of next year.

This is to ensure their personal safety when carrying out cleaning tasks, especially in the light of increased cleaning demands due to the Covid-19 pandemic.

Employers should also send cleaners for one of the core Workforce Skills Qualifications (WSQ) modules identified by the TCC for their relevant job levels.

The PWM training guidelines had earlier required that all resident cleaners attain the minimum two WSQ certificates next year.

With the latest recommendations, cleaners will have until December next year to complete the two modules.

Ms Phyllis Lim, deputy director of the National Trades Union Congress' (NTUC) U Care Centre, which supports low-wage workers, said in a press statement yesterday that training class sizes have been reduced to adhere to Covid-19 safe management measures.

"The new timeline is to allow sufficient time for cleaning businesses to comply with the training requirements... By the end of 2022, they should be able to send their cleaners (for the modules)."

Another recommendation was that beyond 2025, cleaners in lower job rungs must complete one additional module, while those in higher job rungs must complete two extra modules.

The list of WSQ training modules has been updated, and will periodically be updated to ensure its relevance, the TCC said.

The Ministry of Manpower, National Environment Agency, SkillsFuture Singapore and Workforce Singapore said in a joint statement yesterday that the recommendations will "ensure significant wage growth and skills upgrading for cleaners, and develop a more competent and productive cleaning workforce".

They said: "Together, our collective whole-of-society efforts will uplift our lower-wage workers."

NTUC secretary-general Ng Chee Meng said in a Facebook post: "I am glad that many of us are more aware of the value of work our cleaners do... Pandemic or not, uplifting the lives of our lower-wage workers matters to us."