Monday, February 28, 2011

Maids to take class on saving water

The following article was published in the Straits Times on 28 Feb 2011.

Maids to take class on saving water
More than 10 maid agencies sign up for PUB pilot project
By Amanda Tan
Straits Times, Feb 28, 2011

Photo caption: Trainer Woon Siew Lan, 50, showing Indonesian maid Suparni, 28, how to conserve water in the home. -- ST PHOTO: NG SOR LUAN

NEW and transfer maids at more than 10 maid agencies across the island will now have to attend a one-hour class on saving water.

The call to get domestic workers involved is part of the PUB's water conservation outreach programme for 2011, which was launched yesterday by Minister of State for the Environment and Water Resources Amy Khor at City Square Mall.

The pilot project - the first time the national water agency is tapping domestic helpers - will see the PUB team up with some of Singapore's biggest maid agencies. It hopes to get more agencies on board in the next couple of years.

'I think it's a very tangible and very practical effort. It means that when the maid comes, I just have to reinforce some of the things she would have learnt from this training course and this makes it a lot easier to help them understand the need to save water, to adopt water-saving habits,' Dr Khor said.

The course will be conducted in Bahasa Indonesia and English. Maids will be given handbooks and taught how to recycle water.

Mr Gary Chin, managing director of Nation Employment, noted that maids are often the main users of water in the home. One in five Singapore households today employs a maid.

'As responsible citizens, we need to do our part to save water so we're glad to help by educating the helpers,' he said.

Other PUB initiatives include letting students from secondary schools and junior colleges track their family's water usage online from next month. The agency will also highlight water-saving tips via television, radio, and posters and banners in housing estates and at reservoirs.

Volunteers, including students, will visit households and help residents install a device on taps to better regulate water flow.

Water-conservation efforts have paid off. Per capita consumption has been reduced from 165 litres a day in 2003 to 154 now, surpassing the PUB's target of 155 by 2012.

Sunday, February 27, 2011

Big boom in Little India

The following article was published in the Straits Times on 27 Feb 2011.

Big boom in Little India
Influx of Indian expats and foreign workers drives growing community, fuelling businesses
By Melissa Kok
Straits Times, Feb 27, 2011

Photo caption: More and more businesses are owned by Indian PRs like Mr Renganathan, who runs a fashion shop with his wife. -- ST PHOTO: DESMOND WEE

About 16 months ago, a shophouse in Little India was up for lease. One couple, both IT professionals, quit their jobs to take a chance on it.

Mr Renganathan Ramakrishnan, 37, and his wife Vanitha, 30, are thrilled that their ladies' fashion shop Vanitha's Enterprises is now doing well.

The couple, originally from India, have been permanent residents since 2007. They opened their shop along Campbell Road in October 2009.

The Renganathans and other newcomers are part and parcel of Little India's new business boom. The new kids on the block go into such trades as textiles and clothing, restaurants and provision shops.

As a result, there has been a 20 per cent rise in the number of shops and restaurants there in the past five years, said Mr Rajakumar Chandra, chairman of the Little India Shopkeepers and Heritage Association (Lisha).

This boom has been mainly fuelled by the growing Indian community, driven by the recent influx of Indian expatriates and foreign workers, noted Mr Chandra.

While the other races and tourists throng Little India too, he felt that the critical mass came from the Indians.

'Every Indian has to visit Little India once a week. To get good Indian food, to visit the temples, to buy grocery items imported from India, they have to come here.'

Over the years, Singapore has seen its foreign population grow from 1.18 million in 2005, to 1.85 million as of last year.

The figures do not give a breakdown by nationalities, but experts believe a good number of these foreigners are from India.

Ethnic Indian PRs and citizens now make up 9.2 per cent of Singapore's total resident population, up from 7.9 per cent in 2000.

Mr Chandra estimates that around 100,000 Indian expatriates and PRs now visit Little India every week to shop and eat, and another 50,000 Indian foreign workers head there on Sundays.

There are now some 700 shops and restaurants in the area - from Buffalo Road to Syed Alwi Road. The majority are family-run businesses or sole proprietorships. They include more than 150 restaurants and 70 goldsmiths.

An increasing number of these businesses are owned by Indian permanent residents like the Renganathans, said Mr Chandra.

'These PRs, who came here first to work as professionals, are finding it lucrative to open their own business. Some even cater specifically to other Indian expats and PRs,' he said.

For example, with the majority of Indian expats being vegetarian, he has noticed more vegetarian restaurants opening in the past two years.

But the entry of more new businesses, plus the burgeoning Indian community and more expats in the area, have also led to an increase in rental prices for commercial space.

Global Property Strategic Alliance chief executive Jeffrey Hong said rentals for single and double-storey shophouse units in the area have gone up by 20 to 30 per cent in the past two years.

For example, a single-storey shophouse unit leased for retail used to fetch rental of $4,000 to $5,000 a month. Now, the rent can be anywhere between $6,000 and $8,000 a month.

For shops such as Dakshaini Silks, a 20-year-old textiles store that also offers tailoring services, more newcomers means more competition.

Singaporean Jamuna Rani, 48, the shop's service manager, said: 'Last time, there was no competition, but now, there are so many shopkeepers selling the same things.

'We have to continue to upgrade ourselves and offer better service to customers to stay ahead.'

Saturday, February 26, 2011

S'pore's 'strong citizen core' defined

The following article was published in the Straits Times on 26 Feb 2011.

S'pore's 'strong citizen core' defined
Citizens, including new ones, should make up more than half of population: DPM Wong
Li Xueying, Political Correspondent
Straits Times, 26 February 2011

SINGAPORE should have a 'strong citizen core' - and this means more than half of the population should be citizens, said Deputy Prime Minister Wong Kan Seng.

Currently, citizens account for 64 per cent of Singapore's population of five million.

Mr Wong had previously cited a strong citizen core as a criterion of a sustainable population profile for Singapore, moving forward.

Within this core, he included foreigners who had become citizens, he said in an interview with reporters.

To those who say Singapore's core should include only those born and bred in Singapore, Mr Wong noted: 'New citizens are not an overwhelming... number, about a few hundred thousand.'

Besides, he added, 'the moment we have that debate (on) what is the core, who is a true Singaporean, where do we draw the line?'

'As far as the Constitution is concerned, it makes no distinction between a first-generation Singaporean, second-generation or so on.'

The issue of Singapore's population mix has been on the radar, following the liberalisation of the immigration criteria in 2006.

The number of citizenships and permanent residencies granted has risen yearly since 2005. They reached a peak of 19,928 and 59,460 respectively in 2009.

In contrast, just about 8,000 foreigners were given citizenships every year between 2000 and 2004.

Exacerbating the situation is the rise in non-resident foreigners in response to economic demands. The number of these transient foreign workers on work permits or S-passes and employment passes reached 1.3 million last year.

However, the controversial immigration policy and its resulting social stresses led to loud public complaints and since the last quarter of 2009, the Government has tightened the tap.

One reason is that with the economy slowing down, the number of applications 'could have come down', said Mr Wong. At the same time, the change 'was conscious in the sense that we did review the criteria, tighten some of the items in the selection process', he added.

Curbing the inflow of foreigners will have an impact on the economy, he said, without specifying its extent. He said PRs cannot be here in 'such large numbers that in bad times, they will still be with us, because as PRs they do have certain privileges in the use of services - we do subsidise them in some way'.

'Neither do we want to have large numbers of foreign workers all the time, because you will need to find space for them, housing, transport, et cetera.'

Hence, as suggested in the Economic Strategies Committee Review report last year, foreigners should be kept to within a third of the total workforce, he said. The proportion now is 32 per cent.

Contrary to what critics say, the population czar does not think liberalising and then tightening the immigration framework was a policy U-turn or mistake. Neither does he think it was a case of having too many agencies involved and thus having to grapple with coordinating the policy implementation.

Asked whether, with hindsight, the policy could have been calibrated better, Mr Wong said: 'When people say we have far too many foreigners, actually they're not talking about having too many PRs and new citizens. What they see is a foreign face and hear a voice that doesn't speak like them. But they could well be foreign workers, here for the short term.'

He said the 'large increase' in population was due to 'the amount of foreign labour that we brought in to support the economy when it was growing'.

'And that's where it led to the problem starting in 2008, 2009 when people felt there were too many foreigners. Then the Government decided we should slow down, firstly on the intake of foreign labour, and at the same time also re-examining the large number of PRs.'

Despite the angst, Mr Wong does not believe the population issue will haunt the People's Action Party (PAP) at the coming general election.

'Certainly, it's an issue that people are all quite concerned about. Does it mean that people will vote against the PAP and vote it out because of this? I think our people are far more rational than that.'

Domestic helper pays it forward

The following article was published in the Straits Times on 26 Feb 2011.

Domestic helper pays it forward
Helped as a child, she saves up for a donation to ST Pocket Money Fund
By Ang Yiying
Straits Times, Feb 26, 2011

Photo caption: Ms Naw's coin bank contained $14 in notes, and the coins will be sent to the Singapore Mint for counting.

HER mother died when she was 15 and her aunt supported her through high school and university.

So, helping underprivileged children with school-related expenses is a cause Ms Naw Wah Wah, 37, is passionate about.

The domestic helper from Myanmar said: 'If they have no money (for school), they will not be happy.'

On Thursday, she made her way to the Singapore Press Holdings' headquarters in Toa Payoh North to hand over a filled coin bank for The Straits Times School Pocket Money Fund.

The community project by the newspaper helps children from low-income families by giving them money for their school-related expenses. Primary school pupils who qualify receive $45 a month, and those in secondary school get $80.

Ms Naw's coin bank contained $14 in notes, and the coins will be sent to the Singapore Mint for counting.

Her employer, retiree Elizabeth Tan, 86, had bought the Help-A-Kid coin bank when it was launched in conjunction with the fund's 10th anniversary last year, to 'support it in a small way'.

The 22cm-tall bright blue coin banks in the shape of a little boy were sold at supermarket chain NTUC FairPrice for $5 each from July to October, with proceeds going to the fund.

To date, 50,800 coin banks have been sold, bringing in about $254,000. This project also collected about $63,000 in donations from money saved in the coin banks.

Ms Naw, who has been working in Singapore for three years, was told of the purpose of the coin bank and the fund by her employer.

Mrs Tan said: 'She was so interested in it, she made it her project.'

Ms Naw would put whatever spare change she had into the coin bank and her employer told her to keep the change from grocery shopping for the coin bank.

Bit by bit, Ms Naw 'fed' the little blue boy.

She decided to donate its contents this month, when she sensed it was getting 'quite heavy'.

But she was modest about her contribution, saying: 'It's not so much money.'

Open new sources for maids, says agency association

The following letter was published in the Straits Times forum on 26 Feb 2011.

Open new sources for maids, says agency association
Straits Times forum, Feb 26, 2011

WE AVOIDED commenting publicly about the salary hike announced last month by 17 major employment agencies because we are a trade body, and especially when there were immediate allegations of price-fixing by employers and in the media ('Hiking maid's salary is unfair, misleading' by Ms Alice Cheah; Thursday).

Subsequently, the Competition Commission of Singapore was reported to be investigating the salary hike as well.

As a trade body, we cannot prescribe minimum maid salaries or agency fees. The pay of Indonesian maids increased gradually because of market forces, conditions and wage trends, and not because it was dictated by us.

Ms Cheah rightly singled out the exorbitant placement fees imposed by maid agencies as the cause of the salary hike.

We have tried but failed in securing legislation relating to deductions that can be made from the salaries of maids.

Many employers and agencies failed to note that the 17 agencies were seeking a reduction in the number of months of placement fee.

Apart from placement fees, Singapore is not a preferred destination for Indonesian maids because of government rules regarding age requirement, the English entry test and the increasing number of agency licences issued.

To attract maids, employers will also have to accept that they may have to pay higher agency fees to offset the burden borne by the maids; and this is again a function of demand and supply.

We highlight these issues regularly to the Ministry of Manpower (MOM) in dialogue sessions and through the media.

We have also appealed for new markets to be opened, to facilitate the expansion of our members' business.

Although we have not been conferred with legal authority to act against unscrupulous agencies, we report their errant practices to MOM when we receive a complaint from the public.

With the removal of the compulsory accreditation requirement on agencies on April 1, MOM will have to take on a bigger policing role.

Shirley Ng (Ms)
President,
Association of Employment Agencies (Singapore)

SME boss' reaction to levy hike

The following letter was published in the Straits Times forum on 26 Feb 2011.

SME boss' reaction to levy hike
Straits Times forum, Feb 26, 2011

I RUN a small family business which trades in commodities and relies heavily on human labour.

Yes, we can automate and use machines to lighten our workload. However, when we deliver our products to the end-users, we still depend on human labour to transport the goods from our trucks to the shops or stalls.

So, there is a limit to upgrading work processes.

I have tried to hire Singaporeans first but to no avail. During the last hiring exercise on Feb 14, we managed to hire two Singaporeans. Both quit on the second day, citing the hard labour.

We have exhausted our foreign worker quotas and are now in a fix.

We can offer higher pay to Singaporeans, but that too has a limit.

Would a Singaporean lorry attendant accept $2,000 a month, which is considered a comparatively attractive salary for the job?

We do not have high margins to cushion us against the high cost of operations. We cannot afford to reduce dependence on lower-skilled foreign workers, especially as our population gets more educated.

For me, the Government can help if it lowers the dependency ratio to employ foreign workers and maintains the foreign worker levy instead of increasing it.

Kelvin Teo

Friday, February 25, 2011

ST Forum letter sparks online debate

The following article was published in the Straits Times on 25 Feb 2011.

ST Forum letter sparks online debate
Straits Times, Feb 25, 2011



A LETTER on The Straits Times Forum Online yesterday, arguing that most families can do without maids, sparked an online debate among Singaporeans.

In the letter, Ms Emily Leong said many working parents have come to see a maid as a necessity, not a luxury. 'I believe only two types of families cannot do without maids: those with young children, and those with elderly or sick members,' she wrote.

She used to hire a maid to look after her children, but has since become a housewife. Instead of making her two boys, then eight and six, go for enrichment classes, she and her husband taught them to do housework, treating it as family bonding time.

Her letter elicited a flurry of comments on straitstimes.com, Facebook and Twitter in a matter of hours. Bhas Kunju wrote: 'The maid culture in Singapore is really getting out of hand... People in other countries manage just fine and they're having more kids than us.'

Added Deborah Elkes: 'I personally do not see the point of having children if you don't want to care for them yourself.'

Others disagreed, accusing Ms Leong of making a sweeping statement. Wrote Vincent Ong: 'If you don't need a maid, don't pass judgment on those who do.'

A calmer perspective came from Giam Lay Hoon, who wrote: 'All you need is a man who helps out.'

10 maids from shelter clear TB checks

The following article was published in the Straits Times on 25 Feb 2011.

10 maids from shelter clear TB checks
By TEH JOO LIN, POON CHIAN HUI
Straits Times, Feb 25, 2011

TEN maids who had stayed with a Filipino maid believed to have died of severe tuberculosis (TB) have been given the all-clear by doctors.

The Humanitarian Organisation for Migration Economics (Home), the foreign-worker help group sheltering them, said they were taken to a doctor for screening after Ms Jennifer Dignos' death. The maid had died three hours before she was due to visit Tan Tock Seng Hospital's TB Control Unit on Feb 11.

Home president Bridget Tan said Ms Dignos, 31, was diagnosed with TB about two days before her death. Her doctor had referred her to the TB unit.

Pending the appointment, she was moved from Home's shelter in East Coast to its branch office in River Valley, where she slept alone for two nights as a precautionary measure.

While TB is contagious, doctors said quarantine is not always imposed.

TB is usually spread through prolonged exposure to an infected person. And once a patient starts medication, the chance of infection drops rapidly, resulting in a 'chemical quarantine', said the Health Ministry.

However, doctors have to notify the authorities upon diagnosis of a case. Ms Tan said Home's premises in River Valley are not used as a residential shelter for maids under its care.

Home had acted according to the doctor's instructions to wait for Ms Dignos' appointment, and was taking care of her until then.

Maid agents said they rarely hear of maids contracting TB while working here, as pre-employment checks flag anyone with the illness. The agents said most employers repatriate their maids if they contract TB, out of fear of contagion and the hassle involved in taking them for check-ups.

MOM to launch standard maid biodata form

The following article was published in the Straits Times on 25 Feb 2011.

MOM to launch standard maid biodata form
Move will raise industry standards as accuracy and level of details vary
By Teh Joo Lin
Straits Times, Feb 25, 2011

Photo caption: MAID STOOD BY HER: 'At one stage, I didn't want to work any more. I told her I couldn't afford her. But she told me I had to pay only her levy. She didn't mind staying.' Madam Low Choon Pheng on her Filipino maid Hilda Estopasi Javier (above), who stood by her and her three young children when her husband died of a heart attack -- ST PHOTO: CHEW SENG KIM

EMPLOYERS will have a better shot at finding the right maid when a standard template is introduced later this year for agencies to present maid biodata.

The template helps employers compare maids from different agencies and ensure that they have enough information to help them decide on the right helpers.

The biodata currently presented by different maid agencies can vary in accuracy and level of detail, making it difficult for employers to compare candidates.

The move is among several changes introduced by the Ministry of Manpower (MOM) to raise the standards of employment agencies, which build their reputations on the successful 'matchmaking' of employers and workers.

Yet break-ups have been common. The ministry's data showed that close to four in 10 maids had their contracts prematurely terminated within six months of being hired.

Calling on maid agencies to improve their services, Minister of State for Trade and Industry and Manpower Lee Yi Shyan said yesterday that an effective agency is one that can create a high rate of successful pairings between employers and employees.

He cited a recent survey of maid employers which showed that 63 per cent of the respondents ranked professionalism and good services as the most important factors in choosing an agent, along with the quality of the maids.

Mr Lee was speaking at the Association of Employment Agencies Singapore's (AEAS) eighth anniversary celebrations at the Marriott Hotel last night.

Other recent moves to raise industry standards include the online posting of detailed information on agencies' performances - such as the volume of placements - which was introduced last December.

The measures come against the backdrop of the amended Employment Agencies Act, which will take effect in April, to weed out malpractices over the employment of foreign workers.

Yesterday, Mr Lee handed out awards to eight maids who had won the AEAS outstanding domestic worker contest. The annual event received 152 nominations from employers.

The winner of the $1,500 top prize was Filipino maid Hilda Estopasi Javier, 53, who has been with her employer for 13 years.

Her employer, Madam Low Choon Pheng, who spoke to The Straits Times before the ceremony, recounted how her maid stood by her and her three young children when her husband died of a heart attack about a decade ago.

The 52-year-old civil servant said: 'At one stage, I didn't want to work any more. I told her I couldn't afford her. But she told me I had to pay only her levy. She didn't mind staying.'

Besides doing the household chores, Ms Javier also took on extra work such as fixing the toilet's flushing mechanism and painting the doors and the door grilles.

She said: 'I just wanted to do it so I could save money for the household.'

Yesterday, three employers also received certificates of recognition as exemplary employers.

Secretary Chen Julie, 45, was nominated by her Indonesian maid Sulastutik, 33. The maid, who has worked for Ms Chen for more than seven years, thanked her employer for caring for her, teaching her English and allowing her to use the computer.

Ms Chen said: 'I realised that she really appreciated me. And of course, I also appreciate her very much.'

Willing to help develop maid-sharing scheme

The following letter was published in TODAY on 25 Feb 2011.

Willing to help develop maid-sharing scheme
Letter from Francis Zhan, Chief Executive Association of Management Corporations in Singapore
TODAY, Feb 25, 2011

I refer to the article "Higher levy for greater leverage" (Feb 23), in which Minister for Manpower Gan Kim Yong said the impending increase in foreign workers' levies is necessary to encourage companies to reduce their reliance on foreign labour.

An instant opportunity is available for us to start reducing one type of foreign labour. It is common in condominiums to see groups of maids organising their daily car-washing parties, spending the greater part of their mornings or afternoons just to wash one car. Frequently, maids from non-car families join in.

Investigations show that there are many families who do not need a full-time maid but have found part-time maids unsatisfactory for a variety of reasons, the primary one being security as apartment owners are working full-time and the homes are empty.

Condominium owners who are members of the Association of Management Corporations in Singapore (AMCIS) have suggested that MOM consider allowing two neighbouring homes to share one maid to reduce dependence on these foreign maids. ("Let two small families share one maid", Voices, TodayOnline, Jan 21)

We understand there are difficulties in such a scheme but nothing worthwhile is without effort. If MOM is prepared to study this proposal, the association is prepared to work with MOM to develop a model and the tools, including acting as a co-ordinator to ensure that maids under the sharing scheme are not taken advantage of or over-worked.

Thursday, February 24, 2011

Levy hike 'not a push for locals'

The following article was published in the Straits Times on 24 Feb 2011.

Levy hike 'not a push for locals'
Tharman: Move to help raise productivity, not to substitute foreigners with Singaporeans
By Rachel Chang
Straits Times, Feb 24, 2011

Photo caption: Mr Tharman (centre) at a post-Budget dialogue with unionists yesterday at the NTUC Centre, together with NTUC president John de Payva (left) and labour chief Lim Swee Say. Besides the hike in foreign worker levies, Mr Tharman also fielded questions on the cost of living, the low birth rate and the belief that the handouts in this year's Budget were influenced by the impending general election. -- ST PHOTO: ASHLEIGH SIM

THE increase in foreign worker levies announced in last Friday's Budget is not an attempt to get employers to substitute local workers for foreign ones.

Instead, it aims to spur employers to make productivity improvements so they need fewer workers to produce the same output, Finance Minister Tharman Shanmugaratnam said yesterday.

Making the point to unionists at a post-Budget forum, he said this was why the levies apply only to low-skilled foreign workers and semi-skilled professionals here on S Passes, and not to skilled foreign professionals.

He was responding to unionist Wilfred Thiang of the Singapore Maritime Officers' Union, who said imposing a levy on foreign professionals would boost the employment prospects of tertiary-educated Singaporeans.

Mr Tharman stressed that the levy hikes aimed to raise labour productivity in sectors where it is lagging to the levels in countries such as Japan and Australia. 'How can we use fewer foreign workers for the same quality and result? That is the question,' he said.

He explained why it did not make sense to protect jobs for local professionals: 'That may have a lot of appeal in the short term, but frankly, once we do that, we lose our appeal compared to cities like Hong Kong and Shanghai.'

With the freedom to bring in talent from all over the world, multinational companies set up shop in Singapore, create jobs for Singaporeans and add to economic growth, he said.

So, the Government will help local professionals through subsidised training and other such efforts, rather than by penalising global talent.

Labour chief Lim Swee Say, who was also at the dialogue held at the NTUC Centre, said Singapore has to aim to be more competitive, as shutting out competition is not a sustainable option.

Responding to those who worried that companies would not be able to cope with the higher levies, Mr Tharman said: 'This restructuring, where the strong, efficient, innovative and dynamic companies take over the role of the weaker ones, is a fact of life. It is also the way (overall) productivity goes up.

'It is going to be a process of winnowing out. Some will lose, others will win. We have to accept this process because it is the only way we can get productivity up by 30 per cent in 10 years and raise incomes significantly.'

At the wide-ranging dialogue attended by about 200 unionists, Mr Tharman also fielded questions on the cost of living, the abysmal birth rate and the belief that the handouts in this year's Budget were influenced by the impending general election (GE).

On the last point, unionist Freddy Lim of the Singapore Urban Redevelopment Authority Workers' Union argued that 'Growth Dividends' should be handed out whenever the economy does well, and not just in an election year.

Mr Lim Swee Say took issue with this characterisation: 'If the Singapore economy did not rebound in 2010, would we have this $3.2 billion budget, even though the GE is going to happen before February 2012? I think the answer is quite obvious.'

As for handing out big Growth Dividends before the end of the Government's term every five years, he said that would be like paying out a big mid-year bonus, without knowing if the company is going to do well in the second half of the year.

A number of unionists also brought up the topic of inflation, to which Mr Tharman reiterated that the amount received by a low-income household from this year's Budget - about $3,500 - is four times the rise in costs they face.

Saying this had been calculated in detail by his ministry, he challenged unionists: 'Show me any family still receiving less than necessary to cope.'

Low-earners' income growth 'not satisfactory'

FINANCE Minister Tharman Shanmugaratnam has made clear that while the bottom 20 per cent of households in Singapore did enjoy positive income growth - of 8 per cent - over the last decade, this is 'not satisfactory'.

Responding to unionists' concerns over slow income growth, he stressed that lifting incomes was 'the main objective of this Budget'.

In some countries like South Korea, poor households actually saw their real incomes decline over the same period, he noted, but for Singapore, the single-digit growth 'is not good enough'.

'We want to do better. We want to make sure the lower-income group can keep up with the rest and share in the country's prosperity,' he said.

He characterised efforts to raise incomes as 'hard work' which must go beyond political rhetoric and involve persuading industries and workers to change their ways.

In fact, labour chief Lim Swee Say later took pains to emphasise Mr Tharman's sincerity.

Veteran unionist Victor Pang had raised the issue of senior citizens having to pay full price for public transport during peak hours when they travelled to work, as concessionary rates apply only after rush hours. '30 or 40 cents is a lot of money to them,' he said, adding to the minister that 'maybe you don't know'.

Mr Lim countered that 'whenever we bring up issues faced by low-wage workers and low-income households at Cabinet meetings, let me tell you that (Mr Tharman) is always one of the strongest supporters'.

RACHEL CHANG

Budget shows Govt 'thinking of people's long-term interests'

The following article was published in TODAY on 24 Feb 2011.

Budget shows Govt 'thinking of people's long-term interests'
by Joanne Chan
TODAY, Feb 24, 2011

SINGAPORE - Should Budget 2011 be called an election Budget? Yes, according to Finance Minister Tharman Shanmugaratnam, but only because it is a Budget of a Government thinking of the long-term interests of Singaporeans.

Pundits and observers had said the S$3.2-billion "Grow and Share" Package to be distributed this year would sweeten the ground for voters ahead of the coming General Election.

Speaking at a forum with union leaders yesterday, Mr Shanmugaratnam stressed that the Budget was not just about handouts that will make people happy. "It is rare for governments, on the eve, or during an election year, to be putting money ... on results that will only show up five, 10, 15 years from now, in some cases, even further down the road. So if it is an election Budget, it's because it's a Budget of a Government that is thinking of the long-term interest of its people, and that is the flag we're nailing to our mast."

During the forum, an official of the Singapore Maritime Officers' Union, Mr Wilfred Thiang, asked if a worker levy can be placed on foreign professionals as with unskilled or semi-skilled foreign workers, saying too many foreigners could put locals out of work.

Mr Shanmugaratnam acknowledged that more can be done to help PMETs stay employable. But he cautioned against closing the door on foreigners, saying that this would drive away the multi-national companies that help make Singapore globally competitive.

Mr Shanmugaratnam said some companies may lose out in Singapore's push for higher productivity and be replaced by more efficient firms. To avoid such a situation, he urged companies to take advantage of government schemes to raise productivity.

Mr Freddy Lim, president of the Singapore Urban Redevelopment Authority Workers' Union, said: "There are a lot of jobs in construction but Singaporeans don't want such work. With the levies imposed, some businesses may suffer and ... have to close down."

Speaking to reporters after the forum, the deputy executive secretary for the Building Construction and Timber Industries Employees' Union, Ms Jennie Yeo, noted the construction industry's manpower shortage. Foreigners now think twice before coming here as they can get a comparative salary in their country.

Mr Shanmugaratnam said there is room for improvement in productivity. He noted that, in Japan, where with pre-fabrication widely used, fewer workers were needed on site.

Construction company bosses told MediaCorp that the levy changes will drive up costs.

Mr Yeow Kian Seng. managing director of Lucky Joint Construction, said: "You cannot buy machines to do the job."

Straits Construction general manager Kenneth Loo said: "We have to look at less labour-intensive work such as on-site assembly".

Joanne Chan, with additional reporting by Hoe Yeen Nie and Ong Dai Lin

Most families can do without maids

The following letter was published in the Straits Times on 24 Feb 2011.

Most families can do without maids
Straits Times forum, Feb 24, 2011

THE issue of maid shortage is an ongoing problem, not only in Singapore but also in neighbouring countries.

In the past, having a live-in helper was a luxury, but now, many families with working parents have come to see a maid as a necessity.

I believe only two types of families cannot do without maids: those with young children, and those with elderly or sick members.

For all other families, there are many other options, such as day care, childcare or part-time help.

I used to have a maid to look after my young children when I was a working mother. But I am now a stay-at-home mum.

Our family could afford to continue hiring a maid, but we decided instead to train our two boys - then eight and six - to do some housework, and my husband agreed to help out at home when he is not travelling.

Every family member learns to do something in the house, such as making the bed, folding the clothes, or doing the dishes.

Instead of going to enrichment classes, the children do housework with us (bonding), learn to prepare a simple meal and clean up after cooking (basic life skills).

We were so used to having a maid for eight years that it had seemed impossible to live without one. It has been 11/2 years now, and our family is managing well.

When my children's classmates ask why they have no maid, they can answer proudly that we do not need one.

Having a maid is an easy option, as it is still fairly affordable to hire one in Singapore. But if our children grow up seeing all the cooking and household chores done only by the maid, they will grow up thinking there is no other option.

Emily Leong (Ms)

Hiking maids' pay unfair, misleading

The following letter was published in the Straits Times forum on 24 Feb 2011.

Hiking maids' pay unfair, misleading
Straits Times forum, Feb 24, 2011

THE collective decision by 17 maid agencies to increase the monthly salary of new and inexperienced maids to $450 from $380 is a public disservice ('New pay benchmark for maids sparks a runaway problem'; Feb 19).

It is also misleading as the announcement created the impression that the salary spike was endorsed by the Ministry of Manpower.

Consequently, prospective employers were in a state of confusion, and current Filipino and Indonesian maids overreacted.

The agencies were wrong to use wages as the sole yardstick in comparing Singapore with Hong Kong, when the respective terms of employment of the maids should also have been included.

In Hong Kong, no transfer is allowed. However unsatisfactory the working conditions, a maid must complete her contract. If her services are terminated, she must return home and pay stiff placement fees again.

In Singapore, a maid can break her contract and seek not one, but several transfers to enable her to continue earning a livelihood.

The period for processing applications can take as long as four to six months in Hong Kong, compared with Singapore's two-day process. So, the basis for salary increment does not hold water.

While it is reasonable to revise the starting pay of maids from time to time, the revision should be done properly, via the Association of Employment Agencies Singapore (AEAS).

The problem in Singapore is not the higher pay demanded by recruiting countries, but the exorbitant placement fees agencies impose on prospective maids.

Passing on the bulk of the placement fee to an employer. which range from $2,800 to $3,500, is also wrong as it implies a hand-in-glove acquiescence by agencies here to the practices of unscrupulous suppliers.

The ploy also lets rogue agencies continue to make a quick buck at the expense of prospective employers and maids.

The AEAS should take responsibility for failing its 550 members by its inaction, which is as good as turning a blind eye in the last two years to these unscrupulous practices.

Alice Cheah (Ms)
Managing Director
Caregivers Centre

Wednesday, February 23, 2011

Levy hike sparks different reactions

The following letters regarding the foreign worker levy hikes were published in the Straits Times forum on 23 Feb 2011.

Levy hike sparks different reactions
Straits Times Forum, Feb 23, 2011

LETTER: Target white-collar foreigners instead

WHILE the Government's decision to lessen reliance on foreign labour to raise productivity is laudable, the wrong sector is being targeted ('Worker levy increase shocks businesses'; last Saturday).

The Government should not focus on tightening blue-collar foreign labour as such migrant workers are needed in transient work.

They work in jobs that better-educated Singaporeans shun, for example, unskilled or semi-skilled construction, cleaning or waiting at tables.

What the increase in levy should aim for is to reduce the intake of white-collar foreign workers.

These are foreigners in banking, services, manufacturing and other industries who compete with tertiary-educated Singaporeans for the same jobs.

Most of them work and live here for a few years and affect crucial infrastructure like public transport and housing.

The lax policy in granting foreigners employment passes has created tensions in competition for scarce jobs that Singaporeans are qualified to take up.

Hiring foreigners because multinational corporations (MNCs) want them should no longer be justified.

We have relied too long on the rationale that because MNCs create jobs, let them hire whoever they wish as long as Singapore gains corporate tax revenue and is able to leverage on MNCs outsourcing advantages to local small and medium-sized enterprises.

Singaporeans need the jobs that the MNCs create. The current situation where employers need not justify their need for foreigners is not sustainable.

The Government should require MNCs to adhere to a Singaporean-first policy in hiring and allow MNCs to resort to foreigners only if Singaporeans do not qualify.

The Government should also introduce an effective levy and a quota for such professional foreign employees.

These foreign professionals, and permanent residents, should also be placed in a higher tax bracket.

Cheong Tuck Kuan

~

LETTER: Apply a nuanced spike to spur productivity

I WAS extremely impressed by the diligence and attitude of the Bangladeshi workers who recently installed the fibre-optic cable for OpenNet at my home. It was raining and they worked through the inclement weather, completing their job after nightfall.

My immediate thought was that no Singaporean would opt for such jobs with modest salaries and tough working conditions.

So will raising the foreign worker levy for this category of workers pose a problem to our contractors ('Worker levy increase shocks businesses'; last Saturday)? Certainly.

We can go on talking about training, increased productivity and automation of processes, but are they relevant for cases like this?

Unless we can attract Singaporeans to take on such jobs, it would be pointless to gripe or protest about the presence of foreign labour.

Yes, it is noble, logical and necessary to ensure that Singapore be less reliant on foreign labour. It is sensible to upgrade skills and increase productivity.

But these cannot be applied across all sectors. Hence, a need for different strokes for different folks.

Otherwise, we will end up with a labour shortage in some sectors, and higher inflation as a consequence of cost escalation.

Lawrence Loh

~

LETTER: Businesses will raise prices, eroding gains from goodies

WE ARE concerned about the impending increase in foreign worker levies, particularly in the service industry ('Worker levy increase shocks businesses'; last Saturday).

Whatever goodies the 2011 Budget is offering, such as Growth Dividends, may be wiped out by the increase in levies as businesses must raise their prices further.

While the young and mobile may be able to negotiate for higher pay rises or switch jobs, senior citizens, particularly retirees, have no such bargaining power and can only suffer in silence.

Singaporeans, businesses and households alike can help to reduce the reliance on labour by embracing new technologies.

Examples include the recent move by town councils to replace fluorescent light tubes with longer-lasting, maintenance-efficient LED tubes in HDB estates, which our association has launched as a project in condominiums and complexes.

Francis Zhan
Chief Executive
Association of Management Corporations in Singapore


~

LETTER: Boycott pass-the-buck businesses

I REFER to last Saturday's report ("Changes for firms"), which quoted Mr Ivan Lee, founder of restaurant chain Thai Express, as saying that the rise in foreign worker levy would be passed on to consumers most of the time, which is why prices of food and services continue to go up.

His remark seems to imply that the Government can introduce any manner of levies and all businessmen need to do is pass on the cost to customers. Any rise in the prices of food and services can, therefore, be attributed to the Government.

His comment reveals an unacceptable attitude by businesses towards customers and suggests an indifference to the spirit and objective of the foreign worker levy.

From a customer's viewpoint, such a remark, especially coming from the boss himself, is wrong. I, for one, shall not be patronising his restaurants.

Gan Teck Lee

~

LETTER: Peg levy to availability of local employees

THE main intention of the increase in foreign worker levies is to retain and safeguard jobs for Singaporeans ("Worker levy increase shocks businesses"; last Saturday).

Singaporeans often shun jobs in sectors like food and beverage, cleaning and construction. As our country prospers, it is inevitable that most Singaporeans avoid less glamorous jobs due to social stigma. Hence, the higher foreign worker levies in these sectors may not result in a significant increase in local employment. Instead, they may result in higher costs, as some jobs are labour-intensive, leading to further inflation.

I urge the authorities consider increasing foreign worker levies by industries, based on the availability of local employees in those sectors.

Tan Saw Bin (Ms)

Woman charged with 3 counts of maid abuse

The following article was published in the Straits Times on 23 Feb 2011.

Woman charged with 3 counts of maid abuse
By Elena Chong
Straits Times, Feb 23, 2011

Photo caption: Soh Meiyun, 31, was charged in court with three counts of abusing her Indonesian maid. -- ST PHOTO: SAMUEL HE

A WOMAN was charged in court on Wednesday with three counts of abusing her Indonesian maid.

Soh Meiyun, 31, is alleged to have used a hot metal spoon to burn Ms Lilis Sriyatun's left arm at a Punggol flat in May 2009.

She also allegedly pinched the 25-year-old and used a bamboo pole and hanger to hit her earlier in April the same year.

The last charge states that she used a needle to scratch her body and hand.

Soh's case was adjourned for a week for her to engage a lawyer. If convicted of the most serious charge of using a heated substance, she can be jailed for up to 101/2 years and/or fined.

The maximum penalty for causing hurt is three years' jail and a $7,500 fine per charge.

Maid + less stressed parents = More babies

The following letter was published in TODAY on 23 Feb 2011.

Maid + less stressed parents = More babies
Letter from Adanan Khamis
TODAY, Voices, Feb 23, 2011

Since the Government has talked of increasing the birth rate, here is a suggestion on the maid levy which the Ministry of Manpower can consider.

For a working couple with children under 10 years of age, and where the couple's parents are not staying with them, MOM could consider scraping the levy completely. There would be less stress with a maid to look after their young children and do the housework full-time. Reduced stress would help husband and wife become more productive in making more babies.

Families like mine with four children (mine are aged 13, 12, 5 and 4) would be very happy if MOM would consider this suggestion.

Maid agencies questioned over pay rise issue

The following article was published by the Straits Times on 23 Feb 2011.

Maid agencies questioned over pay rise issue
By Amanda Tan & Teh Joo Lin
Straits Times, Feb 23, 2011

SEVERAL maid agencies have been called up by the anti-competition watchdog, following earlier reports that they would raise the pay of new maids from $380 to $450.

The Straits Times understands that they were also requested by the Competition Commission of Singapore (CCS) to provide various documents, including their financial statements.

The CCS confirmed yesterday that it is 'investigating the matter', but declined to elaborate as investigations are ongoing.

Those called up were among some 17 maid agencies - said to be major ones - which reportedly agreed last month to the pay hike in order to alleviate a supply crunch.

The move swiftly drew allegations of price-fixing and profiteering from other maid agencies and employers.

It also triggered concerns among employers that they could be held hostage by their domestic helpers, who may request for a similar pay increase.

A check with at least five agencies revealed that they were interviewed by CCS officials after news broke of the pay hike. The one-on-one meetings took place at the CCS office or the agencies.

'They asked us if we are making any profit from the pay increase. They said they are investigating,' said an agent who did not want to be named.

Following the meetings, the CCS sent out a letter asking for various documents, including the agencies' financial statements.

'They asked for the breakdown of new Indonesian maids we are bringing in, and the total turnover for that group,' said the agent.

The agencies interviewed by The Straits Times rebutted claims that they were engaged in price-fixing.

Another agent, who declined to be named, said: 'It was just an impromptu casual chit-chat session among us as we all face common problems. It was not a closed-door meeting, nor was there any agenda for the gathering.

'The employment agencies market here is so fragmented, we can't control it with a single price.'

He also pointed out that the agencies would not benefit much from the pay hike, which is necessary to attract Indonesian maids to work here.

These maids are in great demand following a shortfall in the supply of Filipino maids, after the Philippine authorities enforced more stringent rules on nationals working overseas last July.

Maids from Indonesia and the Philippines make up the majority of the estimated 196,000 maids here.

Despite the reasoning put forth by these agencies, news of the pay increase has drawn flak from irate employers.

Reader Tang Lishan, who wrote to The Straits Times Forum page this month, said: 'There should be rules against what the 17 agencies have done. They have ganged up to impose a practice at the expense of consumers.'

Speaking to The Straits Times yesterday, Madam Halimah Yacob said: 'If you look at the way the announcement was made, it inevitably gave the impression that there was some prior discussion made. It is the CCS' job to investigate these claims.'

'We don't know if it is indeed anti-competition, but it is now up to 17 agencies to justify why it's not,' said the MP for Jurong GRC.

The move by the CCS comes ahead of changes to the Employment Agencies Act, which will take effect from April. Among other things, the amended Act will include measures to make all charges imposed by employment agencies transparent.

Businessman Peter Ong, 62, an employer of an Indonesian maid, welcomed the check by the CCS.

'The authorities should step in to make sure it's a fair game in the market,' he said.

'Otherwise, the market may be monopolised, and that's not right.'

Higher levy for greater leverage

The following article was published in TODAY on 23 Feb 2011.

Higher levy for greater leverage
by Travis Teo and Joanne Chan
TODAY, Feb 23, 2011

SINGAPORE - Even as property analysts expect the latest foreign workers levy hikes to push up construction costs, Manpower Minister Gan Kim Yong reiterated yesterday the move's necessity in order to hasten the Republic's productivity drive.

Speaking to MediaCorp, Mr Gan noted that the higher levies will encourage companies to reduce their reliance on foreign labour and invest in productivity improvements.

Said Mr Gan: "We don't have a lot of time because the other countries are also improving ... If you look at the services sector, for example, we're roughly about 75 per cent of the service productivity in Hong Kong. So we're behind but not too far behind."

He added: "Therefore, we have to step up ... and this is a good time to do that because we had strong economic growth last year."

Acknowledging the concern and anxiety of employers, Mr Gan noted that some companies have taken the productivity drive "seriously" and had implemented relevant measures.

But as for concerns that the higher labour costs will be passed on to consumers, Mr Gan urged companies to rethink their strategies and stay focused on raising productivity.

The construction sector, for instance, has a productivity road map, supported by S$250 million in funding. "But the progress, we believe, can be hastened. It can be speeded up," he said.

Keen competition will force companies to become more efficient, he added.

The latest changes to foreign worker levy rates will be phased in from next January to July 2013 at six-month intervals.

Meanwhile, analysts told MediaCorp that the hike - which will be felt most keenly by the services and construction sectors - will put a squeeze on the margins for construction firms and developers.

They noted that the increases come at a time when the Government has increased land supply and rolled out cooling measures.

Said Chesterton Suntec International head of research and consultancy Colin Tan: "In a rising market it doesn't matter... The problem comes when prices are starting to correct."

The analysts noted that, while it was possible to contain cost increases with improvements in productivity, it would not be easily achieved.

Some companies have shown that one way to counter rising manpower costs in the construction industry is to make the pre-fabrication process more efficient. For example, Tiong Seng Contractors uses lighter materials, such as aluminium, in the production process instead of steel, which is traditionally used.

Another way is to build bigger pre-fabrication components and tap economies of scale.

But improving productivity also requires companies to invest in supervisors and managers. Mr Andrew Khng, president of the Singapore Contractors Association, said: "Productivity is also affected if the middle managers or middle-level supervisors are not trained and if we can't retain them, then the continuity of your productive journey might take a step back."

Another strategy to keep costs in check is to move the pre-fabrication process to nearby countries where labour is cheaper.

For instance, industry insiders point out that the underground tunnels that MRT trains run through are being built in Malaysia.

But gains from productivity improvements may take time to materialise. In the short run, higher construction costs may push developers to set their asking prices higher when launching new properties.

For full-time mum, a maid's a necessity

The following letter was published in TODAY on 23 Feb 2011.

For full-time mum, a maid's a necessity
by Lenny Sofia Tomari
TODAY, Feb 23, 2011

I have been a stay-home-mother (SAHM) for close to two years now. I left my full-time job as an assistant marcom manager in a local public-listed company in June 2009 to embark on IVF treatment. My husband and I came to the decision that I quit my job after considering the many "uncertainties" such as my state of health and the need to go back to the hospital every other day. Thankfully, I managed to conceive on our first attempt and delivered in March last year.

Throughout my pregnancy, we relied on the help of a part-time domestic helper. Even after returning from hospital and during my confinement, I did not have any full-time help. The part-time helper only came twice a week and helped with vacuuming, mopping, dusting and cleaning of toilets. On a daily basis, I did all the housework myself - and, on top of that, I personally coached my daughter (who was in Primary 3 last year), while my husband helped with looking after the baby.

No doubt, many would expect a housewife to be able to juggle housework and the children. I do not know how my mother did it in the past but I realised I cannot do it.

Being a SAHM has allowed me to continue breastfeeding my son even now - something I did not manage to do for my daughter as I had to return to work after two months. The biggest benefit has been that my son has not fallen sick since the day he was born. The bond between us is also very strong as I do not rely on bottles to feed him. It is tiring but worth all the trouble.

Our son will be one next month, and our trusted helper has found a full-time job and is thus no longer able to help us. After much thought, my husband and I decided that we need a full-time helper. This is to allow more time for me to focus on my fast-growing son and help my daughter with her schoolwork.

With a full-time helper, both my husband and I are also looking forward to spend more quality time as husband and wife. In the past year or so, we barely had time to sit down and chat, go for movie date, et cetera. Often, there has been a lot of tension between us. On my part, I was exhausted from the daily demands of housework and bringing up my children. On his part, it was the lack of attention from me, and his having to switch to babysitting mode as soon as he returned home from a long day at work.

Despite being the sole breadwinner in the family, my husband is not entitled to the foreign maid levy relief. I feel it is time the Government extends this relief to fathers supporting a full-time housewife like me, who need to hire a maid.

The Government has talked of increasing the birth rate. Beyond the numbers, couples have to juggle work, family and the increasing expenses of having children. Our IVF expenses alone were over S$15,000.

Many working mothers take a big pay cut to personally nurture their children. As a result, many fathers have to work harder, clocking longer hours in some cases, to bring enough "bacon" home for the wife and children who are solely depending on them.

Engaging a full-time maid to help a SAHM cannot be considered a "luxury", especially when considering the many demands of raising a child nowadays and, more importantly, the need to maintain a healthy husband-wife relationship.

Tuesday, February 22, 2011

Foreign-worker levy hike painful but necessary: SM Goh

He urged businesses to make low-skilled jobs that Singaporeans shun more attractive to them. -myp
Tue, Feb 22, 2011
my paper
BY KENNY CHEE

THE foreign-worker levy hike announced in the Budget will be "painful" for employers, but the Government has decided to go ahead with it to signal to businesses that they must find ways to improve productivity, said Senior Minister Goh Chok Tong last night.

"We must not make a U-turn. If you go back to a low foreign-worker levy, you're going to be inundated with foreign workers. Is that the Singapore that you want?" he said.

At a post-Budget dialogue with 250 grassroots leaders at Marine Parade Community Club, he addressed an audience member's concern that the levy will not help companies which have trouble finding Singaporeans to fill low-skilled positions. As a result, the firms would still have to hire foreigners and pass on the increased costs to consumers.

Mr Goh said that the Government had previously allowed foreign workers to come here more freely as an easy way to help Singapore grow.

But he said that, at some point, Singaporeans began reacting to the presence of many foreign workers.

The Government also realised that companies' continued reliance on foreign labour means that low-skilled workers' pay, including that of Singaporeans, would remain low, as it is cheaper for firms to employ foreign workers.

For employers that cannot cope with the higher levy, Mr Goh said they would have to "close shop" and become employees themselves.

But employers could find ways to address the issue, such as by making low-skilled jobs that Singaporeans shun more attractive to them. He said bosses could raise the jobs' remuneration by expanding the job scope.

For instance, workers could be trained to operate machines which will help raise productivity.

And companies can turn to productivity schemes by the Government to train their workers, said the Senior Minister.

Other issues he addressed at the dialogue included concerns that this year's Budget did not do enough to address Singapore's low fertility rates.

Mr Goh said that the Budget was not a "baby Budget" and that past efforts to use monetary incentives to get Singaporeans to have babies did not work.

But he added that the issue on improving birth rates here requires a separate study.

No country for unskilled foreign labour

The following article was published in the Business Times on 22 Feb 2011.

No country for unskilled foreign labour
By Chen Huifen
Business Times Singapore, 22 February 2011

(SINGAPORE) The hikes in the foreign worker levy (FWL) announced last Friday are part of a strategic shift in Singapore's economic landscape, and should not be misconstrued as a response to better conditions, according to the Ministry of Manpower (MOM).

That means, during economic downturns in future, companies should no longer expect downward adjustments of foreign worker levies - a measure that has been applied in past cyclical downturns.

The unfaltering stance comes despite the less- than-enthusiastic reaction from companies to the levy changes announced by Finance Minister Tharman Shanmugaratnam. MOM stressed that the changes in the foreign worker levy are meant to 'send a strong signal to businesses to invest in productivity improvements, upgrade their operations, and reduce their reliance on low-cost, low- skilled foreign workers'.

'It is likely the minister anticipated a negative reaction - and yet the FWL is set to be increased,' said Ernst & Young in a Budget synopsis report. 'This brings us to the second lesson: the government is really very serious about increasing productivity even if bitter pills have to be administered now.'

Employers from the construction sector will see the steepest climb in levy hikes, with an average increase of $320 per work permit holder in the monthly levy between now and July 2013. Unskilled workers in Singapore's construction sector - which has a productivity level half of that in Australia and one-third that in Japan - will be phased out.

For new projects starting from July 2013 onwards, there will also be a further 15 per cent cut in the man-year entitlement quota - a system that allocates the total number of work permit holders a main contractor is entitled to, based on the value of contracts awarded.

Those in the services sector will see their monthly levy increase an average of $260 between now and July 2013. Manufacturing firms will see their monthly levy rise an average of $130, as well as tighter levy tiers over the same period. S Pass levy rates will also be raised an average of $240.

The latest round of changes are in addition to the series of six-monthly hikes that started last July. Taken together, the foreign worker levy adjustments will add 1.7 per cent to annual labour costs - if companies take no action by 2013.

Firms contacted by BT yesterday continued to voice their concerns over the timing of the changes, given that they are happening at a time of surging raw material prices, rising cost of utilities and a tight labour market. Bok Seng Logistics executive director Dave Ng said that while his company continues to explore investments in machinery to cut down manpower, some tasks require the physical headcount.

'Most of our frontline (people) are drivers,' explained Mr Ng. 'So they actually have to drive from point A to point B. They are not like bus drivers . . . they actually have to drive the whole vehicle with the trailer, and a trailer can only carry maybe a few types of cargo (on a single trip).'

Companies have been urged to consider restructuring their jobs to make them more attractive for locals, including the pool of women and the elderly.

While recognising that companies can do more on the productivity and innovation front, Singapore Food Manufacturers' Association president Wong Mong Hong pointed out that not all companies will be ready.

Of the 800-plus food manufacturers here, more than 500 employ less than 10 workers. 'And they are all in those 1,000-2,000 square foot factories,' he added. 'For this group, it's hard to automate because they are short of either space, knowledge or finance. Typically, they can't put a big machine in (that space) anyway.'

Some are rethinking their manpower management approach in the long run.

'We have to change the locals' mindset on working in the services industry,' said Jay Gee Enterprises managing director R Dhinakaran. 'Their mindset change has to come from the schooldays, before their N-levels, O-levels. We should inculcate in them when they are students that the retail, services sectors can provide a kind of professional career.'

Ensure rest for injured workers

The following letter was published in the Straits Times forum on 22 Feb 2011.

Ensure rest for injured workers
Straits Times Forum, Feb 22, 2011

WE NOTE with concern Mr Tan Thian Huat's letter ("Injured workers get little time to recuperate"; Feb 14).

In the past few years, the Humanitarian Organisation for Migration Economics and Transient Workers Count Too have assisted numerous workers in similar, if not more dire, circumstances. We have encountered a worker who was given only two days of medical leave despite suffering fractures to his knees; he actually needed months of medical attention. Another was given the same after a part of his finger was sliced off.

The ramifications to the welfare of these workers cannot be overstated. As Mr Tan mentioned, employers usually report workplace-related injuries to the Ministry of Manpower (MOM) only when more than two days of medical leave have been granted to the injured worker.

It is our understanding that employers have been exploiting this loophole by ensuring that medical certificates granted to their workers do not exceed two days.

This helps errant employers to get around the reporting requirement and to deprive workers of the rights and benefits entitled to them under the Work Injury Compensation Act. Many such workers would be denied medical leave wages, and prevented from receiving compensation payable to them under the Act.

Undetected by MOM, these injured foreign workers are sometimes forcefully repatriated only a few days after incurring serious injuries.

While the notion of employers exploiting their foreign workers is not new, what is alarming is the discovery that private hospitals and clinics are contributing to this practice with impunity. When confronted, the doctors justify their actions by stating that they are primarily accountable to the workers' employers because they pay the bills, not the workers.

Regardless of who pays the bills, shouldn't a doctor's duty be to the health and welfare of his patient above all?

Many foreign workers are unaware of their rights and suffer in silence. Given how vulnerable these workers are in a foreign land and how cruel such exploitative practices are, perhaps the Ministry of Health or the Singapore Medical Council should put in place checks to allow red flags to be raised when foreign workers are granted just two days of medical leave despite serious injuries. They might also remind doctors of their ethical obligation to their patients.

Tien Lang
Welfare Executive
Humanitarian Organisation for Migration Economics (Home)


John Gee
President
Transient Workers Count Too (TWC2)

Maid pens stories with drama, spice and real life

The following article was published in the Straits Times on 22 Feb 2011.

Maid pens stories with drama, spice and real life
By Teh Joo Lin & Melissa Kok
Straits Times, Feb 22, 2011

Photo caption: Indonesian maid Nessa Kartika (above), co-wrote Karenina Singa Bauhinia with friend Karin Maulana. The book's 18 stories are about the trials and tribulations of a maid's life. -- ST PHOTO: ASHLEIGH SIM

IN BETWEEN working for a family who lives in a four-room flat in Choa Chu Kang, Indonesian maid Nessa Kartika squeezed in the time to write short stories.

She worked on them in the afternoons, using her employers' computer with their permission, while keeping a watchful eye on their toddler.

The stories and others by fellow maid Karin Maulana, who works in Hong Kong, were published last month and 10 books were printed. Both women are 27.

The book's title Karenina Singa Bauhinia combines the authors' names and two icons of Singapore and Hong Kong - the Merlion and Golden Bauhinia Square, an open space with a gold sculpture of the bauhinia, Hong Kong's floral emblem.

The 18 stories in Bahasa Indonesia are about the trials and tribulations of a maid's life and the book was put out by Dragon Family Publisher in Hong Kong.

Ms Nessa wrote half the stories and her friend Ms Karin wrote the rest.

Ms Nessa told The Straits Times that she began writing the stories after she came here to work three years ago.

The stories were inspired by her personal experiences, tales from other maids and even Singapore Press Holdings' citizen journalism website Stomp, where she once saw photographs of a maid making out with a man on a rooftop.

She said: 'I put in drama and spice it up a little so it is more interesting to read.'

One of her stories, Love Is Not Impossible, is about a young Indonesian maid in Singapore who falls in love with her employer's dashing son.

The plots are thick with fantasy and imagination, and maids who have read the book said they found the stories gripping and believable, and that the tales offered perspective to those in similar situations.

Ms Siti Aisah, 29, said: 'When I read the book, I know it is not only me who is sad. And I feel that at least, I am better off than them.

'Sometimes, people think they will surely succeed overseas. If they read the book, they will know more about what it's like overseas.'

Ms Nessa said there are no plans to sell the book here yet, although she has lent it to some friends. Those interested in the book can contact her at nessakartika.blogspot.com

Construction hardest hit by levy hikes

The following article was published in the Straits Times on 22 Feb 2011.

Construction hardest hit by levy hikes
Every Work Permit holder will cost builders $320 more a month
By Francis Chan, Companies Correspondent
Straits Times, Feb 22, 2011

Photo caption: The MOM said the rate hikes are part of a multi-pronged approach to increase productivity and reduce Singapore's reliance on low-skilled foreign workers. -- ST PHOTO: RAJ NADARAJAN

THE construction sector is set to be the hardest hit by changes to the foreign worker levies.

Building firms can expect to pay an average of $320 more a month for every Work Permit holder between now and July 2013.

Other sectors get off more lightly. Companies in services will pay an average increase of $260 monthly for each Work Permit holder, while those in manufacturing will fork out $130 more, according to the Ministry of Manpower (MOM).

However, all employers of S-Pass holders can expect to pay an average of $240 more per month for each of these workers over the same period.

The surprise move to raise the levy rates for the second time in as many years was announced in Friday's Budget and more details were released by the Manpower Ministry yesterday.

Firms in services and construction where 'the scope for productivity improvements is greatest' will see higher levy rate hikes and tighter levy tiers, Finance Minister Tharman Shanmugaratnam had noted in his Budget speech.

The MOM said the rate hikes are part of a multi-pronged approach to increase productivity and reduce Singapore's reliance on low-skilled foreign workers.

The MOM announcement also included specific adjustments to the levy tiers.

These tiers determine the levy rate employers pay for each foreign worker, based on the proportion of S-Pass and Work Permit holders hired.

To motivate construction employers to train and upgrade their workers, the levy rate to be paid for higher skilled workers will be significantly less than that for basic skilled workers, MOM said.

Although the changes will be implemented in six-month intervals until July 2013 to help firms adjust, some bosses say the immediate increase in labour costs will hit their bottom line.

'I don't think contractors, especially the smaller ones, will be able to absorb these additional costs,' said Singapore Contractors Association president Andrew Khng. 'So if they can, the additional costs may be passed on upwards to their clients - that's only fair.'

HSL Constructor executive director Charles Quek, however, said firms need to get serious about reducing the use of cheap foreign labour and move into higher value work or risk being irrelevant as the industry moves forward.

HSL has managed to reduce its pool of foreign workers from more than 700 to about 300 over the past 18 months.

'We've been investing in a lot of equipment as part of a conscientious move to reduce our overall reliance on foreign workers,' said Mr Quek.

'But it's also about selecting the type of work we go into, such as avoiding labour-intensive projects.'

The Government rolled out measures in last year's Budget and again on Friday to help firms increase their productivity. These include the Productivity and Innovation Credit, which allows firms that invest in productivity and innovation to reap tax deductions on those expenses.

The construction sector has often been seen as a laggard in productivity due to its labour-intensive nature.

But bosses in construction can expect more support in the form of a new Construction Productivity Roadmap designed by the Ministry of National Development (MND), to help steer the industry towards higher productivity.

Besides initiatives to help enhance the workforce and regulatory changes to set minimum standards, there will also be financial incentives to encourage firms to go beyond minimum regulatory standards by adopting technology and improving their capabilities.

The MND and the Building and Construction Authority are expected to release details of the roadmap next week.

Budget 2011: Mixed reaction to foreign-worker levy hikes

The following article was published by my paper on 22 Feb 2011 and republished by AsiaOne.

Budget 2011: Mixed reaction to foreign-worker levy hikes
Tue, Feb 22, 2011
BY REICO WONG, my paper

EMPLOYERS facing tighter labour measures by the Government to reduce the country's reliance on foreign workers have said that the recently announced changes are more stringent, as full details of the new regulations were revealed by the Ministry of Manpower (MOM) yesterday.

Information released yesterday spelt out the changes pertaining to foreign-worker levy hikes.

Adjustments to levy tiers that determine the levy rate for each foreign worker hired were also explained.

The changes will be phased in from January next year to July 2013 at six-month intervals.

This will give firms sufficient time to make the necessary adjustments, MOM said.

Firms in the construction sector can expect to fork out an average of $320 more per Work Permit holder from now till July 2013, while employers in the services sector can expect to pay an average of $260 more in the monthly levy for each Work Permit holder till July 2013.

Those in the manufacturing sector will need to pay an additional $130 each month.

Firms employing S Pass holders - foreign workers with mid-level skills who are usually paid more than Work Permit holders - are also likely to have to cough up about $240 per S Pass holder every month.

The Government expects the hikes to increase annual labour costs for firms by 1.7 per cent when the new regulations are fully implemented.

MOM said the timing for the changes is right, particularly since the Singapore economy is now firmly back on track.

"It will send a strong signal to businesses to invest in productivity improvements, upgrade their operations, and reduce their reliance on low-cost, low-skilled foreign workers," it added.

Productivity in the local services sector is estimated to be only about 60 per cent of those of global leaders like the United States and Japan. For the construction sector, Singapore's productivity level is only about half of Australia's and one third of Japan's.

Foreign workers currently constitute about 31 per cent of Singapore's labour force, with the number of Work Permit holders standing at about 871,000. S Pass holders here number about 98,000.

But industry heads and local-firm owners in the two sectors said that there are fundamental challenges to reducing dependence on foreign workers.

Few Singaporeans are willing to work long hours under the hot sun and get themselves dirty every day, especially when the job market is good, said Mr Elvin Koh, managing director of Samwoh Corporation.

He said his construction company has only "a handful" of general construction workers who are local.

Singapore Contractors Association president Andrew Khng said: "Technology can help construction processes only to a certain extent, and...the machines have to be operated by humans as well.

"The latest levy hikes are drastic especially if you compare them to those announced in last year's Budget, which were gradually phased in over a one-year period."

He said that it is unavoidable that some of the additional costs brought about by the levy hikes will be passed on to clients.

Mr R. Dhinakaran, managing director for Jay Gee Enterprises, said that the latest hikes add only to the already escalating services-sector costs.

"Consumers won't want to talk to machines, which can't read their moods and can't provide a service that enables them to feel highly satisfied," he added.

Foreign-worker levy hike painful but necessary: SM Goh

The following article was published by my paper on 22 Feb 2011 and republished on AsiaOne.

Foreign-worker levy hike painful but necessary: SM Goh
He urged businesses to make low-skilled jobs that Singaporeans shun more attractive to them. -myp
BY KENNY CHEE, my paper
Tue, Feb 22, 2011

THE foreign-worker levy hike announced in the Budget will be "painful" for employers, but the Government has decided to go ahead with it to signal to businesses that they must find ways to improve productivity, said Senior Minister Goh Chok Tong last night."We must not make a U-turn. If you go back to a low foreign-worker levy, you're going to be inundated with foreign workers. Is that the Singapore that you want?" he said.

At a post-Budget dialogue with 250 grassroots leaders at Marine Parade Community Club, he addressed an audience member's concern that the levy will not help companies which have trouble finding Singaporeans to fill low-skilled positions. As a result, the firms would still have to hire foreigners and pass on the increased costs to consumers.

Mr Goh said that the Government had previously allowed foreign workers to come here more freely as an easy way to help Singapore grow.

But he said that, at some point, Singaporeans began reacting to the presence of many foreign workers.

The Government also realised that companies' continued reliance on foreign labour means that low-skilled workers' pay, including that of Singaporeans, would remain low, as it is cheaper for firms to employ foreign workers.

For employers that cannot cope with the higher levy, Mr Goh said they would have to "close shop" and become employees themselves.

But employers could find ways to address the issue, such as by making low-skilled jobs that Singaporeans shun more attractive to them. He said bosses could raise the jobs' remuneration by expanding the job scope.

For instance, workers could be trained to operate machines which will help raise productivity.

And companies can turn to productivity schemes by the Government to train their workers, said the Senior Minister.

Other issues he addressed at the dialogue included concerns that this year's Budget did not do enough to address Singapore's low fertility rates.

Mr Goh said that the Budget was not a "baby Budget" and that past efforts to use monetary incentives to get Singaporeans to have babies did not work.

But he added that the issue on improving birth rates here requires a separate study.

Service sector levies up, too

The following article was published in TODAY on 22 Feb 2011.

Service sector levies up, too
Move comes on the back of rises in the levy on foreign workers
by Cheow Xin Yi
TODAY, Feb 22, 2011

SINGAPORE - No sector will be spared - just like the first round last year - but this time, the construction industry will not be the only one to bear the brunt of hikes in foreign worker levies.

Companies in the services sector will also pay up to S$600 per foreign worker come mid-2013, with the sector now lumped together with construction as the two areas in need of the greatest productivity improvements.

Yesterday, the Manpower Ministry gave the breakdown of the levy changes which were first announced in the Budget last Friday.

And it sparked a robust response from some employers who felt they have already made huge productivity strides.

Soup Restaurant managing director Mok Yi Ping said: "We've done all we can. We tried implementing part-time shifts to make working hours more flexible (for locals). As for using new technology, it's difficult for the food and beverage industry. Can you have robots to replace the chefs and waiters?"

The changes include tightening the levy tiers, so that higher levies kick in earlier as companies hire foreign workers.

In services, for instance, a company will have to pay more for foreign workers once this group hits 10 per cent of its workforce. The cap set previously - after last year's Budget - for the first tier was 15 per cent.

The quantum for some tiers will also go up, with more moderate hikes in the manufacturing, marine and process sectors than the construction and services sectors.

CIMB regional economist Song Seng Wun believes the growth in the services sector, such as hospitality, may be a reason behind its higher levy burden - which will increase by 2013 to S$400 for unskilled workers in the first tier and S$500 for the second tier, for instance.

Said Mr Song: "These are the industries creating most of the jobs ... and because of that, it's even more important that, rather than take the easy way out with foreign labour, make them expensive so that we can think of alternatives, and also push up wages to entice more Singaporeans to work there."

'A STRONG SIGNAL': MOM

According to MOM, the changes are meant to send a "strong signal" to businesses to invest in productivity improvements, upgrade their operations and reduce reliance on low-cost, low-skilled foreign workers.

The latest levy hikes will prompt companies to renew their efforts but they still foresee limits.

Royal Plaza on Scotts, where 40 per cent of staff are from overseas, will focus on skills upgrading. Its marketing communications manager Tan Ningxi said: "It's easier to retain people than to get them from outside."

The labour shortage is being felt in other sectors, too.

A study by the Singapore Manufacturers' Federation found that the number of foreigners employed in the manufacturing sector exceeded Singaporeans by more than 50 per cent last month.

If companies can find Singaporeans to fill the vacancies, though, the latest hikes could make it an easier choice for companies. Chinatown Food Corporation managing director Sunny Koh pointed out that certain tiers of the new levy rates surpass the Central Provident Fund contribution costs for Singaporeans.

Employers who spoke to MediaCorp were braced for inevitable rise in business costs.

While companies may pay less in levies by upgrading their foreign workforce to skilled from unskilled labour, Singapore Contractors Association president Andrew Khng said the training will incur extra resources.

"If you can't gain much cost savings from improvements in productivity - because labour intensive industry can only do so much - (costs) will have to be passed to consumers ... I think prices should go up by 2 to 5 per cent."

For the construction sector, the quota of foreign workers allowed per project in 2013 will be cut by a further 15 per cent.

But the maximum proportion of foreign workers allowed in each company - or the dependency ratio ceilings - remains unchanged for each sector. There is also no change to foreign domestic worker levy rates.

Employers hiring S-Pass holders to pay an average of $240 more
by Cheow Xin Yi

The number of S-pass holders almost doubled in the last four years to 98,000, and employers seeking to hire these mid-skilled foreign workers can expect to pay an average of $240 more per worker per month between now and 2013, the Manpower Ministry said yesterday.

The first levy tier for the proportion of S-pass workers allowed, before a higher rate kicks in, will also be lowered to 10 per cent in July next year, from the 15 per cent announced last year.

S-pass holders must have at least a diploma and be paid no less than $1,800. They are also assessed on other criteria such as skills, job type and work experience.

The main reason for the rapid increase in their numbers is their cheaper headcount compared to locals holding the same qualifications, said businesses and recruiters, although they say the latest hike will crimp the hiring edge of S-pass workers, who fill clerical and technical roles in most industries as well as supervisory positions in service industries.

Ms Sharon Lee, a recruiter at a family-owned firm, said they are also popular due to their lower turnover.

"S-pass holders are usually bounded by contract, so they'll stay for at least one to two years. As for locals, unless you sponsor them for courses, it's very hard to bind them," she said.

Model's pimp jailed

The following article was published in the Straits Times on 22 Feb 2011.

Model's pimp jailed
Straits Times, Feb 22, 2011

AN INDIAN national aged 30 was yesterday jailed three months for pimping for a prostitute here this month.

Rashid Kashif pleaded guilty to procuring the woman, also from India, and living off her earnings.

The police, acting on information from the woman, caught him trying to leave Singapore via the Woodlands Checkpoint at about midnight of Feb 12 with $2,450 in cash.

Investigations revealed that Jain Pooja Manakchand, 30, had been promised $1,000 for each client she serviced here, and that her lodging and meals would be paid for.

A district court heard that she earned $7,200 from six clients, with each having paid her between $1,400 and $1,800.

She arrived on Feb 8 and was met by Kashif at the airport. He took her to Miramar Hotel, where she had three customers that day. The next day, she had another three at Riverview Hotel.

Police officers on an anti-vice operation raided Riverview Hotel, arrested her and seized $1,800 and condoms from her room. She provided police a description of Kashif, which paved the way for his arrest in Woodlands.

Kashif, who was unrepresented, told the court that he found an online advertisement seeking a 'modelling coordinator' last September; his job entailed being the 'contact person' for a model coming here from India for a photo shoot and for prostitution.

He said he was to have been paid 30 per cent of her earnings, with the rest shared between her and an India-based 'modelling agent' he knew only as Ahmad.

He could have been jailed up to five years and fined up to $10,000 on each charge. She has not been dealt with.