Inflation set to rise on labour cost: MAS

Food prices may also spike next year due to drought

Straits Times, Published on Oct 31, 2012

By Melissa Tan

 

Wheat at a Nebraska grain facility in the US. A recent surge in commodity prices is likely to filter down to consumers by early next year. -- PHOTO: ASSOCIATED PRESS

INFLATION is likely to rise further in the wake of higher manpower costs stemming from tighter foreign worker policies and continued weakness in services sector productivity.

The warning came yesterday from the Monetary Authority of Singapore (MAS), which added that drought in grain-producing countries could send food prices spiking early next year.

It said that its monetary policy stance had been "assessed to be appropriate in containing inflationary pressures and keeping the economy on a path of restructuring towards sustainable growth".

The price of hiring one worker, known as unit labour cost, shot up 4.7 per cent in the first half of this year from the same period a year ago, the MAS noted in its latest Macroeconomic Review.

This was much higher than the 1.7 per cent year-on-year growth in unit labour cost recorded in the second half of last year.

Unit labour costs grew faster than their historical average in all sectors except the information and communications industry and the accommodation and food services segments.

The main culprit for the increase was weak growth in labour productivity in the services sectors, the MAS said. Services accounts for nearly two-thirds of the local economy.

Overall, labour productivity fell 2.1 per cent in January through June from a year ago, reversing a 0.8 per cent year-on-year increase in the second half of last year.

The Government's stricter foreign worker policy, which imposes quotas and levies on firms hiring overseas workers, has led to a manpower crunch and boosted wages, particularly in domestic-oriented sectors, as firms have to compete for a smaller pool of labour.

Wages grew 2.8 per cent in April through June after expanding 0.9 per cent year-on-year in January through March.

Weak productivity combined with heightened labour costs mean the unit labour cost could rise by as much as 3 per cent to 4 per cent next year, the MAS said.

The resulting increase in business costs is likely to be passed on to consumers, it added.

On top of the expected rise in domestic inflation, imported inflation is also tipped to go up next year, mainly due to costlier food.

The MAS pointed to a recent surge in global prices of several food commodities such as corn, wheat and soya beans as the major producers suffered droughts.

This surge is likely to filter through to domestic food prices towards the end of this year and more significantly early next year, the MAS said, warning that rice and meat prices could shoot up if extreme weather conditions associated with the El Nino weather phenomenon intensified.

The combination of elevated labour costs and food price spikes is likely to leave core inflation at between 2 per cent and 3 per cent next year, the MAS said.

Core inflation, which does not include car or housing prices, is expected to average around 2.5 per cent this year.

Overall inflation is tipped to come in slightly above 4.5 per cent mainly because of vehicle certificate of entitlement premiums, and is expected to ease gradually to 3.5 per cent to 4.5 per cent next year.

 

Singapore tax revenue up despite economic slowdown

Straits Times, Published on Oct 31, 2012

By Aaron Low

 

IT has been a difficult period for the economy, but tax revenue continues to rise.

The Government's operating revenue rose to $26.7 billion for the first six months of the year, beating the $25.5 billion collected in the same period last year.

The Monetary Authority of Singapore (MAS) said yesterday that income taxes, indirect taxes - including foreign worker levies - and fees and charges were the main contributors to the revenue increase.

Property tax and stamp duty collections rose $200 million, fuelled by a still-resilient real estate sector and increased stamp duty collections following an increase in rates.

Only the goods and services tax (GST) bore the brunt of the slowdown: Receipts fell by $200 million from a year ago to $4.3 billion.

The Government had projected tax revenues of $53.08 billion for the whole year, so the $26.7 billion collected so far is slightly ahead of projections.

On the expenditure side, government spending rose to $24.7 billion, $300 million higher compared with the same period last year.

Overall, strong tax collections are pointing to a healthy government Budget balance.

The primary balance, which is operating revenue minus expenditure, for the first half of the year was $2 billion, almost twice the $1.1 billion last year.

The basic balance, which is the primary balance after accounting for special transfers such as Growth
Dividends, also improved by $3 billion to record a positive position of $1.7 billion.

Earlier this year, the Government projected that the basic balance would record a surplus of $1.34 billion.

The better-than-expected set of numbers did not surprise analysts, who said that the Government tends to be conservative in its forward estimates.

But it is unlikely the Government will be spending big to help companies through the difficult period ahead, said OCBC economist Selena Ling.

She said that next year's Budget will probably focus on social issues such as population planning and the ageing population.

"So far, I have not seen indications that there will be short-term relief for firms, either on the inflation costs front or the relaxing of foreign manpower issues," said Ms Ling.

Myanmar national jailed 4 weeks for forged degree

TODAY, Oct 31, 2012

SINGAPORE - A Myanmar national was jailed four weeks yesterday for submitting a forged academic certificate to the Ministry of Manpower (MOM).

The ministry said that Kyaw Swar Win, 28, had been aware that his employment agency in Myanmar had misled the MOM to believe that he was a degree holder in an online application for an S pass.

Kyaw had only received up to high school education in Myanmar. He had also been given a copy of the forged certificate and submitted it to the MOM. Kyaw could have been fined up to S$15,000 or jailed up to 12 months or both.

The MOM said that, as of September, it had successfully prosecuted 39 offenders for similar offences.

Changes at Home: Founder now CEO; new acting president

Straits Times, Published on Oct 30, 2012

By Amelia Tan

Ms Tan will take on the new role of CEO at Home, drawing a salary as a full-time member of staff under a one-year contract. She has been doing it without pay since she founded the organisation in 2004. -- ST PHOTO: KEVIN LIM

A PROMINENT activist for the rights of foreign workers will step down as president of the organisation she founded tomorrow, in a move to boost and bring fresh blood into its top echelon.

Ms Bridget Tan, 64, will move into the newly created post of chief executive officer of Humanitarian Organisation for Migration Economics (Home), a full-time position with a salary.

Her No.2, vice-president Jo- Anne Aeria, 47, will be the acting president from Thursday and head the management committee that Ms Tan will report to.

Explaining the leadership change, Ms Tan said some candidates told her they could not step into her shoes as president because it was too heavy a load for a part-time volunteer. Ms Tan is in charge of
Home's day-to-day running as well as its policies. She has also been doing it without pay since she founded Home in 2004.

"They tell me it's a full-time job they cannot commit to," Ms Tan told The Straits Times yesterday, after announcing her decision to relinquish her president's post on her Facebook page earlier in the day. For this reason, the new president's job will be confined to setting policies and directions.

The CEO will be responsible for Home's day-to-day running, with Ms Tan doing it as a paid, full-time member of staff on a one-year contract.

The change would allow the president to be a volunteer while holding down a full-time job.

Another senior staff member of Home, Mr Jolovan Wham, 33, has also taken on a new role.
Ms Tan said that Mr Wham, who was Home's executive director, took on the new job of director of global partnerships and philanthropy earlier this month.

This change was prompted largely, she said, by Home's recent involvement with a group of Chinese national workers who had complained about low wages and excessive recruitment fees.

The incident highlighted the need for Home to form partnerships with more foreign non-governmental organisations (NGOs) and governments.

"If we had NGO partners in China and contacts with government officials there, we could ask their help to check information and also bring to task errant recruitment agents in China," she said.

Mr Wham has gained a good understanding of issues faced by migrant workers during his eight years with Home, she added, and its leaders will continue to tap him for ideas on its programmes and policies.

Home helps more than 10,000 migrant workers every year through its shelters, helpdesks, helplines and educational programmes.

Ms Tan hopes a new face will take up the CEO baton one day, saying: "I believe Home needs new leaders to remain dynamic and open to new ideas."

Ms Aeria, who works as a consultant for NGOs, will be acting president until January. She will then decide if she wants to take on the president's mantle.

She said: "I'm passionate about helping those who are living on the margins of life... and I think it is time for me to do this now."

Shell fined $80k for work safety lapses

Straits Times, Published on Oct 30, 2012

A fireball erupting from Shell's Pulau Bukom refinery on Sept 29 last year. Contractors draining a pipeline at the refinery had used a method that allowed flammable gases to gather in the air, leading to the fire. -- ST FILE PHOTO

OIL giant Shell was fined $80,000 yesterday for lapses in workplace safety that led to a 32-hour fire at the company's Pulau Bukom oil refinery in September last year.

Court papers stated that while draining a pipeline, its contractors had used a method that allowed flammable gases to accumulate in the air.

The pipeline was connected to a tank of naphtha, a volatile liquid, and passed through a pump house where petroleum products were mixed. The contractors had used metal trays to collect the naphtha flowing out of the tank.

Prosecutors from the Ministry of Manpower (MOM) said that the release of naphtha in this manner not only allowed volatile vapours to escape but also led to an accumulation of static charges, which might have produced a spark to ignite the naphtha vapours.

MOM said Shell had also failed to deploy sufficient portable gas monitors that would have detected the dangerous levels of flammable vapours.

However, prosecutors noted that Shell did conduct a total of five tests with portable gas monitors before the fire broke out at about 1pm on Sept 28. It was put out around 9pm the next day.

Shell had pleaded guilty earlier this month. Its lawyer Christopher de Souza had then argued that before the incident, there was no industry-wide MOM directive which indicated that the methods used by the contractors were unsafe in certain instances.

MOM said the fine of $80,000 is the highest meted out to a company involved in an accident without fatalities or injuries.

MOM is also reviewing the involvement of the two Shell contractors - Mun Siong Engineering and Weishen Industrial Services.

Shell, whose Bukom refinery is its largest worldwide, could have been fined up to $500,000.

KHUSHWANT SINGH

 

23 private schools form new industry body

It aims to raise schools' quality, push Singapore as study destination

Straits Times, Published on Oct 30, 2012

By Sandra Davie, Senior Writer

 

TWENTY-THREE private education institutions have joined forces to take the industry to another level after rules were put in place by the authorities to weed out weak players in recent years.

The Singapore Association for Private Education (Sape) aims to raise quality further by sharing best practices, expertise and resources, and promote Singapore as a quality study destination.

More schools are expected to join Sape, which was registered two months ago. Most of the members are established players with the four-year EduTrust quality mark - awarded by the Council of Private Education - which lets them enrol foreign students.

They include the Singapore Institute of Management (SIM), PSB Academy, Management Development Institute of Singapore and James Cook University Singapore.

It is the second industry body representing private schools here.

The other, the Association of Private Schools and Colleges Singapore, was launched in 1987 when the industry was unregulated and there were no plans to build up Singapore as a study destination. It has a broader membership of about 70, including student recruitment agents, education consultants and publishers.

Mr Lee Kwok Cheong, who heads Sape, said the latest figures showing more private schools winning the EduTrust mark indicate that there is some stabilisation of the industry after a shakedown that lasted more than two years.

The recent government moves to raise the number of university places for Singaporeans and put a cap on foreign students present a new state of affairs for private schools, added Mr Lee, who also heads SIM's global education arm.

"The majority of students enrolled in diploma and degree programmes in the private schools are Singaporeans. With more of them being given subsidised places in the local universities, the enrolment in the private schools may go down.

"On the other hand, the cap on foreigners in public institutions presents an opportunity for private schools which should be looking at how we can draw more of them here."

Figures released by the Immigration and Checkpoints Authority (ICA) indicate that there are about 33,000 foreign students on study visas enrolled in private schools as of July this year. Industry watchers said four years ago, the figure was well above 35,000.

The ICA figure excludes the children of expatriate parents who hold dependant passes and are enrolled in "foreign system schools" such as United World College.

The industry has had to adjust after the Private Education Act was introduced in December 2009 following numerous school closures, including those which offered unaccredited or even fake degrees. Under the Act, schools have to meet stricter standards before they can be registered.

Mr Lee said that though scandals such as schools shutting down overnight are a thing of the past, there is a need to restore confidence and show that private schools provide a good education.

"Students, both Singaporeans and foreigners, may know about the EduTrust award but don't know the standards schools have to meet and the level of checks they have to go through."

Dr Dale Anderson, who heads James Cook University Singapore and is also deputy president of Sape, said now that the sub-standard schools and fly-by-night operators have been weeded out, it is time to push for even higher quality and promote Singapore as a high-quality study destination.

"We should aim for the private institutions here to be as good as the public universities in providing a quality education. If you have quality, then students will come," he said.

 

New street lights in Geylang alleys to deter vice activities

Straits Times, Published on Oct 29, 2012

In a move that cost over $200,000, some 32 lights have been put up in the previously dim back lanes of Geylang's Lorongs 39, 37, 35 and 33. -- ST PHOTO: RAJ NADARAJAN

NEW street lights were switched on yesterday along the narrow back alleys of four areas in Geylang, in a bid to deter activities such as prostitution and illegal parking.

In a move that cost more than $200,000, some 32 lights have been put up in the previously dim back lanes of Lorongs 39, 37, 35 and 33.

Installed over four months, it is similar to two other projects in Geylang, with the first started about four years ago. This takes the number of new street lights to 133, said Associate Professor Fatimah Lateef, an MP for Marine Parade GRC.

"We are doing this based on feedback from residents and shops. When it is dark, there is more illegal parking and streetwalkers," she said, adding that residents are afraid to walk along the alleys as a result. "I often walk the area at night - and I can get quite scared sometimes too."

The funding is from the Government's Interim Estate Upgrading Programme. The request came from the Geylang Neighbourhood Committee, which had received many complaints, said chairman Fu Chuan San. She estimates that about 8,000 residents will benefit from the latest light-up.

The new lights are about 3.5m tall - much lower to the ground than the usual 6m-tall lamp posts. Prof Fatimah said: "Based on previous experience, when it is brighter, people don't like to loiter around."

Mr Eric Wong, chairman of the Geylang Serai Citizens Consultative Committee, said he has encountered people who loiter in these back lanes to drink alcohol, making a ruckus into the wee hours. "With the new lights, they may go to coffee shops to drink instead - and that is okay," he said. "It is much better than them lurking in the dark and scaring residents."

Residents of Regal 35 condominium on Lorong 35 hope the lights will put a damper on the vice activities along the street.

Civil servant Albert Sim, 55, said prostitutes started peddling their services outside the condo about four years ago. They could be spotted even at 4am. There were many instances of illegal parking as well.

"We were even prepared to put up our own money to install lights and cameras along the lane," said Mr Sim, who is also chairman of the condo's management committee.

Prof Fatimah said the initiative may be extended to other back lanes.

POON CHIAN HUI

 

Contractor woes leave Sengkang mall in mess

HDB is replacing the contractor; mall will be ready only by mid-2013

Straits Times, Published on Oct 27, 2012

By Grace Chua

Residents walking past hoardings at Rivervale Plaza, where renovation works have come to a standstill (above). Although Mr Chua Teck Siang has moved his bike shop to outside the mall, he says business has suffered. -- ST PHOTO: KEVIN LIM

RENOVATIONS to a shopping mall in Sengkang should have been completed last month, but the main contractor abandoned the project recently and all work ground to a halt.

The company, Technobuilt Construction & Engineering, started on the upgrading project to cover and air-condition Rivervale Plaza in June last year.

But more than a month ago, it stopped work, leaving the place in a mess and shop owners up in arms.
Hoardings are still up, with "business as usual" posters plastered on them, while wires dangle from the ceiling frame.

Shops in the mall remain open, but their owners say business has been hard hit in the past year because of the renovation works.

The electricity went out on Thursday afternoon and at lunchtime, the fire alarm went off abruptly, with no sign of a fire.

Because of the state of the mall, shoppers have flocked to nearby Rivervale Mall and Compass Point instead, they say.

On Thursday night, Mr Michael Palmer, MP for Punggol East, posted on his Facebook page that he had received queries from residents about the project.

"HDB recently informed me the upgrading works at Rivervale Plaza will only be completed in mid-2013. The main contractor is believed to have run into some cash-flow problems and therefore abandoned the project," he said.

"I am disappointed by this turn of events as the main contractor has let us down."

Mr Palmer said he had worked with the Housing Board, the mall landlord, to get tenants a 30 per cent rental rebate till the end of this year, and to raise it to 40 per cent from next January.

An HDB spokesman said the main contractor "was not able to deliver fully on the works. Hence, HDB had no choice but to terminate their contract".

About three-quarters of the work is done, she said. Calling and awarding a re-tender to finish the project will take at least three months before work can resume.

Besides the rental rebates, the HDB said it would also start a gift redemption programme on weekends to draw shoppers. It will also install additional fans along the common walkway.

Rivervale Plaza, Sengkang's first mall, opened in 1999 and houses more than 40 shops including a wet market, a music school, clinics and stationery shops.

Besides air-conditioning the mall, the upgrading project was supposed to add more shops and kiosks, expand existing retail space, and add toilets and an escalator, the HDB said.

Mr Simon Teo, 57, whose watch and accessories shop has been there for 12 years, said business has been down 30 per cent since the upgrading began.

While the rental rebates help a bit, he is worried about the year- end festive season. That is typically a more profitable period but customers are not staying to browse as the mall is still not ready.

Sengkang resident Mary Chew, 70, said her friend tripped and fell on the mall's uneven floor. She also worries that mosquitoes might breed in puddles formed when it rains.

Bicycle shop owner Chua Teck Siang, 38, relocated altogether to a temporary container outside the mall.

As he is not inside, the rental rebates do not apply to him, but he rents the land under a Temporary Occupation Licence and rents the container.

Including renovating his new space inside the mall when it is ready, he reckons he will face "a six-figure loss".

He said business has fallen 40 to 50 per cent. "I'm still surviving here," he said. "But I've lost half my customer base."
 

***

Background story

MONEY PROBLEMS
The main contractor is believed to have run into some cash-flow problems and therefore abandoned the project.

– Mr Michael Palmer, Member of Parliament for Punggol East

Employment Act: Have your say soon

Straits Times, Published on Oct 26, 2012

By Toh Yong Chuan

 

THE public will get to air its views on proposed changes to the Employment Act next month.
The changes are aimed at giving workers better protection by setting out the minimum employment terms and benefits.

Acting Manpower Minister Tan Chuan-Jin told The Straits Times that discussions on changes to the Employment Act have taken place behind closed doors with unions and employers "over the months
and year", but public views will be sought "soon... in the next month or so".

He declined to elaborate on what the Ministry of Manpower (MOM), employers and union officials have discussed so far, saying: "It wouldn't make sense to discuss this on a very public forum."

The MOM announced in April that it will review the Act. The law was last updated in 2008.

Giving an update this week, Mr Tan said that while the MOM is looking at how the Act protects "all groups" of workers, the process will be divided into two phases. The first phase, which the MOM will likely be wrapping up in the first quarter of next year, will involve giving better legal protection to professionals, managers and executives (PMEs).

Now, only those who earn less than $2,000 each month are fully covered by the Act, and the labour movement has lobbied for the salary ceiling to be raised so that more PMEs can be brought under its protection.

The Act spells out the minimum terms and benefits such as leave and medical perks. It also provides redress to workers to resolve disputes with their employers and recover unpaid salaries.

"PMEs is a growing segment of the workforce and it would make sense to look at this... to open up the space from where we are now," Mr Tan said.

Contract workers may also get better protection, but they will have to wait longer. Changes to protect them will be covered in the second part of the review, he added.

Explaining the two-step approach, Mr Tan said the areas were prioritised "not so much in terms of importance", but rather how long it takes to gather views on the changes to be made.

Citing contract work as an example of a "complex" area, he explained that the MOM will need more time to work on it because contract workers are a "disparate group" covering different industries and players.

"We've evaluated it and we see that maybe, let's move with those things that we can move faster first - rather than get everything ready and then move in one chunk," he said.

The minister added that the MOM took a similar two-step approach when it amended the
Employment of Foreign Manpower Act (EFMA) this year.

Besides the Employment Act and EFMA, he hinted that a third law might be up for review next year. "We are concurrently consulting tripartite partners to see if the Industrial Relations Act needs to be similarly reviewed," Mr Tan said.

Tighter foreign worker rules cut growth by half: Economist

Straits Times, Published on Oct 26, 2012

By Yasmine Yahya

Tighter foreign labour rules led to the Government having to forgo $1.1 billion of potentialtax revenue, says Dr Chua. --  PHOTO: DEUTSCHE BANK

SINGAPORE'S economy could have grown nearly twice as fast this year if not for the stricter rules placed on the hiring of foreign workers, said economist Chua Hak Bin.

The Bank of America Merrill Lynch expert warned in a report yesterday that economic losses could outweigh social objectives if the Government's foreign labour policies swing too far.

Under a liberal foreign worker regime allowing companies to hire according to their needs, the local economy could have expanded by 3per cent this year, Dr Chua said.

Instead, the economy has grown at an average pace of just 1.7per cent in the first three quarters.

While stricter foreign-worker policies are intended to reduce congestion and competition for housing, there are also costs, such as lower potential growth, a less dynamic job market and higher wage-cost inflation, he said.

Government moves over the past 21/2 years to tighten the supply of foreign workers here, by raising levies and reducing quotas, have shaved about $4.2 billion off Singapore's gross domestic product this year, he added.

The stricter foreign labour regime has led to the Government having to forgo $1.1billion of potential tax revenue, and about 35,800 jobs were forgone as a result of the stricter labour policy, Dr Chua said.

The search for productivity has also been somewhat elusive, as productivity flatlined last year and has shrunk 2.1per cent so far this year.

But other economists said Singapore's slower growth cannot be blamed solely on stricter immigration policies.

"While it is true that the productivity drive is facing difficulties, a large chunk of the current weak growth stems from generally sluggish cyclical demand conditions, rather than any inherent difficulty in raising output per worker," said Citi economist Kit Wei Zheng.

After all, labour productivity rose by 10.9per cent during the boom year of 2010, when the tightening of foreign worker policies had already started.

Barclays Capital economist Leong Wai Ho said the number of jobs added this year might not have reached 150,000, as Dr Chua had projected, even if the foreign labour policy had remained liberal.

"We added 122,000 jobs last year, and 116,000 in 2010, during which the world economy was doing a lot better.

"With growth slipping under potential due to mounting external pressures this year, it is a bit hard to envisage that we would have added 150,000 jobs, even if market demand for foreign workers were fully satisfied."

Growth matters 'as a means to an end'

It's about citizens' well-being in terms of bread-and-butter issues: Minister

Straits Times, Published on Oct 26, 2012

By Janice Heng

Growth should be at a level that meets people's needs, says Mr Tan. The MOM is open to change on many fronts, and this lack of an "ideological bent" is "about being very practical about what makes sense for our people". -- ST PHOTO: NG SOR LUAN

ECONOMIC growth is not an end in itself but a means to an end - that is, the well-being of Singaporeans, Acting Manpower Minister Tan Chuan-Jin has declared.

Countering the perception of the Government as overly focused on growth, he said policymaking "is not about the economy, not about the GDP growth, it's not about the numbers, not about having wonderful unemployment".

"At the end of it, it's (about) how does it add up, really, to the bread-and-butter issues of the individual concerned, how does it add up to the society."

The right level of economic growth depends on the results desired, such as low unemployment and being able to have "good wages for people, good jobs", he said.

"Secondly, are we able to, as a whole, generate enough income for the economy, for the country, to be able to do the things that you need to do?"

This includes investment in health care, education and infrastructure, he added.

Growth should thus be at a level that meets the above needs, concluded Mr Tan - which he suggested might be around 3per cent.

This is in line with the Government's target of 3 per cent to 5 per cent annual growth in this decade.

Mr Tan's comments cement what appears to be a gradual shift in the Government's stance on economic growth.

As recently as six years ago, Prime Minister Lee Hsien Loong said in his National Day Rally speech that when times are good, Singapore "must grow as fast as we can" so it will have the resources to weather tough times.

One of the criticisms that accompanied a period of rapid gross domestic product (GDP) growth averaging more than 8per cent in the years 2004 to 2008 was that the benefits of the expansion were felt more among the high-income groups.

Mr Tan said the Ministry of Manpower (MOM) is open to change on many fronts, and this lack of what he calls an "ideological bent" on policy options ties back to his approach to growth.

"It's about being very practical about what makes sense for our people," he said.

For instance, he has no personal "doctrinal aversion" to a minimum wage - a policy option that has long been anathema to the Government - though the Government's stance on this issue has yet to shift.

The MOM is also relooking policies both internal and external - from what its staff might be unhappy with, to resurfacing "old papers which had surfaced but got thrown back".

One move: making more data available to the public.

The trend of "releasing more and more info" is one Mr Tan expects to continue. "I think we will, over time, open up more," he said.

He is also looking at how to streamline policies that may have come to appear "very overbearing" in their proliferation.

While Mr Tan remained coy on the specifics, he suggested that changes are afoot.

"Certainly, I've asked my staff to look at resurfacing issues which have been surfaced before but have not moved. Perhaps it's time to move on some of these," he said.

Hard policies were not the only concerns of the Acting Minister, who also spoke in his exclusive interview with The Straits Times this week about the importance of building an employee-friendly culture rather than relying solely on legislation.

Fair employment practices and workplace health and safety are two areas of concern to the MOM, said Mr Tan.

But the Government cannot do everything.

"While we have all the different legislation, you don't want people to just make sure that you stay safe because (they) don't want to get fined by MOM."

Rather, workplace safety is truly improved when companies believe that looking after employees is "the right thing to do".

And while the MOM steps up enforcement on employment practices, such as making sure workers receive Central Provident Fund contributions, this is accompanied by the WorkRight campaign, which aims to make employers "feel that that's the right thing to do".

The main thing, summed up Mr Tan, is "culture-building".

"You can legislate, you can incentivise... but what you really need is to build up a culture where people embrace that sense of responsibility" - for that is what will cause "enduring change".

***

Background story

ACTING MINISTER TAN CHUAN-JIN ON...
Growth as a means to an end, not an end in itself
"You need economic growth for things to happen. But economic growth is not an end in itself. And I'm someone who believes that (if) you pursue economic growth at all costs, it's wrong...
"Ultimately, it has to be about what is best for our people as individuals, what's best for our people as a society."

Trade-offs in foreign labour policy
"There are inherent tensions there. If you close off the labour market, then obviously Singaporeans will be sort of protected, so to speak.
"But if that happens, then obviously a lot of companies may not find it viable. They may actually move off and at the end of it, you end up hurting Singaporeans."

The importance of mindsets in improving work conditions
"We cannot be just talking about legislation. We just cannot be talking about punitive measures...
"You really need to advocate more, you need to promote good examples. Because that's where the real changes happen: When the culture really is in view and companies do it because they believe that it makes sense."

Staying Singaporean
"We must remain largely Singapore in character. There are cities out there where 80 per cent are foreigners - that's not the kind of model we want. We must still be Singapore. We must still feel like Singapore.
"And where that comfort zone is, I think, evolves with time. But certainly you can see the strains that come, which is why we do need to calibrate foreign labour."

The ongoing Workfare review
"We are not rolling back Workfare. I think we will strengthen it. I think the challenge really is, how do you make sure that you look after and provide the support for low-wage workers, but at the same time, don't take away that importance of one's desire to work and to stand on one's own two feet, which I think is important."

Govt may curb inflow of S-Pass holders

Spike in number of foreign workers on such permits raises concerns
Straits Times, Published on Oct 26, 2012
By Toh Yong Chuan And Janice Heng

The Manpower Ministry (MOM) is looking at tightening the inflow of S-Pass holders in a bid to further slow down the increase of foreign workers here. -- ST FILE PHOTO: LIM WUI LIANG

THE Manpower Ministry (MOM) is looking at tightening the inflow of S-Pass holders in a bid to further slow down the increase of foreign workers here.

And to deter firms from employing locals on token pay just to hire more foreign workers, MOM will raise the minimum pay at which locals can be considered full-time workers when calculating a firm's foreign workers quota.

Acting Manpower Minister Tan Chuan-Jin disclosed these impending moves to The Straits Times in an exclusive interview this week.

Explaining the tightening of SPasses, Mr Tan said: "We have seen a spike in the numbers."

The number of foreigners on S Passes shot up by 14,200 to hit 128,100 in the first half of this year. These foreigners earn over $2,000 a month in supervisory or junior professional, managerial and executive (PME) jobs.

There are worries among Singaporeans that S-Pass holders are taking up decent-paying junior PME jobs that could have gone to locals.

When pressed for details, Mr Tan would only say: "We are looking at options."

He also spoke about tightening up on S Passes at a convention attended by small- and medium-sized enterprises yesterday morning. He said: "We should have an update on this perhaps in the first quarter of next year."

Another upcoming change has to do with the fact that the number of foreigners a company can employ is tied to the number of full-time locals hired, according to ratios that vary across different industries.

Currently, only local workers earning at least $850 a month are considered full-time.

Mr Tan hinted that the minimum monthly salary "will increase", but he would not elaborate on how big the increase might be or when it would be implemented. But he promised to talk to unions and employers before setting the higher minimum wage. "I think we will be able to talk about it sometime early next year," he said.

The moves reinforce the Government's commitment to a tight foreign labour policy which began in 2009 and has left some businesses feeling squeezed.

"There will be no U-turn as far as the manpower tightening is concerned," Mr Tan said.

But he emphasised that MOM will keep an eye on the economy and does not intend to jeopardise its health.

"If there is any prospect of a downturn, you do not want to accentuate (it) further," he said. "So you want to make sure that the policies are sensible given that climate."

Mr Tan acknowledged the tensions between keeping Singapore business-friendly and controlling foreign worker numbers.

But the ultimate consideration, he said, must be the well-being of Singaporeans.

"On a net basis, does it still benefit our people? I think that has to be the question. If it doesn't, then I think we have to relook the equations."

The tightening on S Passes does not surprise Mr Chan Chong Beng, president of the Association of Small and Medium Enterprises: "The signal is very clear to companies that they have to make an extra push to make the best use of their local workforce and increase productivity."

Govt may further tighten inflow of foreign workers

Acting Manpower Minister says S'pore cannot continue to rely on low-cost foreign labour

by Saifulbahri Ismail

TODAY, Updated 01:58 PM Oct 26, 2012

SINGAPORE - Despite the clamour from employers, there will be no U-turn on the tightening of foreign worker inflows into Singapore, Acting Manpower Minister Tan Chuan-Jin said yesterday. In fact, he hinted an update on the S Pass regime could be expected in the first quarter of next year.

S Pass holders are mid-level workers earning at least S$2,000 a month and statistics from the Manpower Ministry showed that the number of S-Pass holders rose from nearly 114,000 last year to about 128,000, as at June this year. For the first half of this year, the number of Employment Pass holders dipped from 175,400 to 174,700.

Mr Tan said it is likely that companies are using S Passes to bring in more junior-level professionals, managers and executives (PMEs).

"The S Pass is a sector we are not totally comfortable with, because there's a lot of transference of lower (level) Employment Pass into S Pass and we are now exploring measures to perhaps tighten that segment," he added.

Speaking at the National Small and Medium Enterprise (SME) Convention, Mr Tan also addressed concerns over rising business costs and difficulties in hiring workers.

A recent Association of Small and Medium Enterprises (ASME) survey of some 200 companies found that eight in 10 currently face manpower shortages, following the tightening of regulations on foreign labour. They also lament that they are unable to take on more business as a result, with some even considering folding.

One of the most common questions he has been asked, Mr Tan said yesterday, was why the Government tightened foreign worker supply, if it wants SMEs to prosper. He noted this question often comes with a certain tendency to target companies or Government as the "enemy". "This is not helpful. There is no 'enemy'. We are all in this together, and we move in the same direction," said Mr Tan.

The Acting Manpower Minister, however, stressed that Singapore cannot continue to rely on low-cost foreign labour to grow the economy, as it is "a race to the bottom". "We will not be able to sustain our competitiveness against our neighbours, who will always have more ready access to low-cost labour," he said, noting that textile firms in China are relocating to other countries with even lower labour costs.

ASME President Chan Chong Beng agreed and felt that "asking for more workers is out of date". "I think SMEs should give up that idea and look forward to the next level of support that the Government can give and look very carefully again to productivity because this is the only way for them to survive in time to come," he added.

Mr Tan assured that the Government will continue to support SMEs, which hire seven out of 10 workers here and contribute more than 50 per cent of the country's GDP.

The Government will manage the pace of foreign manpower tightening carefully, and ensure that changes are incremental and announced early to give companies time to adjust, said Mr Tan. While the Government will moderate the increases in foreign manpower, at a sustainable rate that enables businesses to grow, this does not mean that "we are closing the tap completely", he added.

Mr Tan said his ministry will continue to listen to feedback from businesses and exercise flexibility where possible, as long as it does not compromise Singapore's long-term objectives.

The Government will also continue to support SMEs to grow by being more productive. While most SMEs polled were aware of schemes available, more than half do not research further, according to a National Productivity & Continuing Education Council study of 263 SMEs. Among those who research on schemes, about one in three SMEs cannot find schemes that are applicable to them.

Those who do find applicable schemes, only one in two eventually apply. These findings indicate "some inertia on the part of companies", Mr Tan said. Thus, over the next few months, the Government will look at how to administer schemes better.

"We must work on this together to increase the utilisation of these productivity schemes, so that collectively, the economy can become more competitive and we create good jobs for our people," Mr Tan said.

Govt may further moderate inflow of foreign worke

by Saifulbahri Ismail

TODAY,  Oct 25, 2012

 

SINGAPORE - Acting Manpower Minister Tan Chuan-Jin said there will be no U-turn on the tightening of foreign worker inflows into Singapore and the Government may instead further tighten the measures.

Speaking at the Small and Medium Enterprise convention today, Mr Tan explained the Government is neither trying to close the tap completely nor to actually reduce the current numbers.

It has always been moderating the increases to a sustainable rate, one that enables businesses to grow.

Mr Tan said his ministry will continue to listen to feedback from businesses and where possible exercise flexibility as long as it does not compromise Singapore's long term objectives.

He also assured businesses the Government will manage the pace of manpower tightening carefully.

Mr Tan noted that if tightening is too aggressive, many businesses will fold and if it is too slow the economy will lose the momentum for change, so a careful balance is needed.

To moderate the impact on companies, the Government makes incremental changes and announce these changes early and provide time for companies to adjust.

Mr Tan also explained why the Government tightened foreign worker supply.

He said Singapore cannot continue to rely on low cost foreign labour to grow the economy: Relying on low cost labour is a race to the bottom. The price advantage companies offer cannot be based just on lower cost as Singapore cannot compete with its neighbours who will always have more ready access to low cost labour.

Mr Tan also said over reliance on low cost labour imposes hidden costs on the economy and on society. It reduces motivation to innovate, raise productivity and move up the value chain.

Mr Tan said the Government will continue to support SMEs to grow by being more productive.

While more than nine on 10 SMEs polled were aware of the government productivity drive, only slightly more than one in 10 said they eventually benefit the schemes.

Some of the reasons cited include having to deal with a tedious application process. CHANNEL NEWSASIA

S Pass workers may face tightening measures: Tan Chuan-Jin

By Saifulbahri Ismail | Posted: 25 October 2012 1407 hr, CNA

SINGAPORE: The government may tighten measures to check the inflow of foreign workers with mid-level skills.

Acting Manpower Minister Tan Chuan-Jin said he will provide an update on the S Pass category as early as the first quarter of next year.

S Pass holders are mid-level workers earning at least S$2,000 a month.

Statistics from the Manpower Ministry showed that the number of S Pass holders rose from nearly 114,000 last year to about 128,000, as of June this year.

For the first half of this year, the number of Employment Pass holders dipped from 175,400 to 174,700.

Mr Tan said it is likely that companies are using S Passes to bring in more junior-level professionals, managers and executives (PMEs).

He said: "I've mentioned before the S Pass is a sector we are not totally comfortable with, because there's a lot of transference of Employment Passes into S Passes and we are now exploring measures to perhaps tighten that segment."

Speaking at the Small and Medium Enterprise (SME) convention on Thursday, Mr Tan explained the government is neither trying to close the tap completely nor reducing the current numbers.

"The tap was turned on and running in the past, at a fairly fast-flowing rate," said Mr Tan.

"The tap continues to run, but what we've done is to actually turn the tap to move at a much slower pace that we think is sustainable."

The government has always been moderating the increases to a sustainable rate, one that enables businesses to grow, he said.

Mr Tan said his ministry will continue to listen to feedback from businesses and exercise flexibility where possible, as long as it does not compromise Singapore's long term objectives.

He also assured businesses the government will manage the pace of manpower tightening carefully.

Mr Tan noted that if tightening is too aggressive, many businesses will fold and if it is too slow, the economy will lose the momentum for change, so a careful balance is needed.

To moderate the impact on companies, the government makes incremental changes and announce these changes early and provide time for companies to adjust.

Mr Tan also explained why the government tightened foreign worker supply.

He said Singapore cannot continue to rely on low-cost foreign labour to grow the economy.

The price advantage that companies offer cannot be based just on lower cost, as Singapore cannot out-compete its neighbours, who will always have more ready access to low-cost labour.

Mr Tan also said over-reliance on low-cost labour imposes hidden costs on the economy and on the society.

It reduces motivation to innovate, raise productivity and move up the value chain.

Mr Chan Chong Beng, the president of Association of Small and Medium Enterprises (ASME) said: "If (companies) want to survive, these are the realities they have to face. Asking for more workers is out of date."

He added: "So I think SMEs should give up that idea and look forward to the next level of support that the government can give and look very carefully again to productivity because this is the only way for them to survive in time to come."

Mr Tan said the government will continue to support SMEs to grow by being more productive.

Early findings from a recent study commissioned by the National Productivity and Continuing Education Council (NPCEC) involving 263 SMEs showed many know what kind of support is available.

While more than nine on 10 SMEs polled were aware of the government productivity drive, only slightly more than one in 10 said they eventually benefit the schemes.

Some of the reasons cited include having to deal with a tedious application process.

Mr Tan said over the next few months, the government will look at how to administer such schemes better.

Mr Chan said productivity schemes should be made simpler to understand and wanted to see more government support.

"Most of the SMEs do not have cash to go into a grant and many a time they have to fork out the money," said Mr Chan.

"So, the government should also look into areas in which how the SMEs can be helped financially to kick start any grants that they have."

- CNA/ck/xq

URL: http://www.channelnewsasia.com/stories/singaporelocalnews/view/1233404/1/.html

Maids can take online course in care-giving

Straits Times, Published on Oct 25, 2012

By Amelia Tan

 

MAIDS can now pick up care-giving skills during their free time by taking an online course.
It will also help their employers qualify for a monthly government stipend of $120 to help with the cost of hiring a domestic worker to take care of frail, elderly or disabled family members.

The course, developed by Singapore company BH Institute, has been approved by the Centre for Enabled Living.

There are two parts. The first is a 20-module programme called Medically Informed Minders, which gives the maids basic knowledge of dealing with the elderly, such as spotting warning signs on health problems.

The modules, which each take 20 minutes to cover, can be worked on at any time using smartphones and computers. They are offered in English, Tagalog and Bahasa Indonesia.

The second part of the course involves a series of 13 seminars that cover topics such as preventing falls and tending to wounds. Each seminar is about an hour long, and is in English.

The course costs $200, but it can be offset by applying for a Caregivers Training Grant, administered by the Centre for Enabled Living. A spokesman for the centre said the online course provides an alternative method of learning for caregivers who are Web-savvy and who may not be able to leave the side of the person they are caring for.

The monthly stipend comes from the Foreign Domestic Worker Grant, which is expected to cost $25 million over the next five years. Eventually, more than 6,000 middle- and low-income families are expected to benefit.

To qualify, households must have a monthly income of $2,200 per head or less. The elderly or disabled family member must live with the applicant and be assessed by a doctor as needing help with basic activities such as taking a shower.

 

Singapore has largest proportion of rich expats in the world

From Insing.com

by Satish Cheney
inSing.com - 23 October 2012 6:15 PM | Updated 25 October 2012 3:46 PM

 

Singapore is one of the top destinations for expats when it comes earning good money (Photo: Wikimedia)

 

Singapore has the largest proportion of wealthy expats of any country according to a global study.

Forty-three per cent of the expats in Singapore interviewed said they earned more than US$250,000 (S$305,000) a year, compared to a global average of seven per cent.

Singapore came out tops in HSBC’s Expat Economics league table, ahead of Bermuda (2nd) and Thailand (3rd).

Hong Kong (4th), China (7th) and Vietnam (10th) were also in the top ten rankings.

Since relocating to Singapore, 74 per cent  surveyed said their household financial status had gone up. Close to half said their disposable income had risen by 50 per cent or more.

However, three quarters of them said they would prefer to go elsewhere for a new posting later on.
While some Asian countries received high “experience rankings” some expats in the region are facing difficulties when it comes to integrating with local communities.

According to the study: “The number of expats who agreed strongly that they had integrated well in the local community in Asian countries including Malaysia (25%) Singapore (19%), Thailand (14%), and Hong Kong (11%) were much lower in comparison to many English-speaking countries such as Canada (44%), Australia (43%) and the UK (41%).”

The study was commsioned by HSBC and was conducted by research company YouGov.

5,339 expats were questioned via an online survey.

Foreign workers' medical dilemma

Straits Times, Forum, Published on Oct 25, 2012

FOREIGN workers often find themselves in a Catch-22 situation when it comes to payment for medical treatment.

The employer is liable for medical expenses of up to $25,000, or $30,000 if the accident occurred after June 1 this year, for injuries suffered in the course of employment.

Problems crop up when secondary issues arise from the initial accident.

A Bangladeshi worker now faces such a problem. He experienced an electrical shock from the water jet he was using to wash the outside of a building.

He fell from the ladder and suffered a burst fracture of a lumbar vertebra.

In hospital, the vertebra was stabilised with internal metal supports.

Recovering from the back injury, he found himself incontinent after the accident, which he assumed to be due to the electric shock.

The doctor at Singapore General Hospital suggested a series of tests to diagnose and treat the problem but, without the test results, could not say for certain that it arose from the accident.

The employer refused to pay for the tests without the doctor's confirmation that the problem was related to the accident.

The worker does not have the money to pay the hospital, which will not proceed with testing before receiving payment.

It is a difficult situation for such workers, who are unable to pay out of pocket for medical treatments.

Even though an accident is assumed to have arisen in the course of employment, unless there is evidence to prove otherwise, the employer and the Ministry of Manpower still demand positive proof, which will not be forthcoming without money paid in advance to proceed.

Deborah Desloge Fordyce (Ms)
Exco member
Transient Workers Count Too

Indonesia gets tough with errant maid agents

Those caught will be barred from recruiting maids, may face human trafficking charges

Straits Times, Published on Oct 24, 2012

By Amelia Tan

 

INDONESIA will punish Singapore agents who flout its new rules on recruiting maids, its embassy counsellor has said.

Mr Sukmo Yuwono said those caught breaking the rules will be barred from recruiting domestic workers.

They could also be charged in Jakarta with human trafficking if they enter Indonesia.

He gave this warning last Friday at a briefing attended by more than 50 agents after discovering that half of the Indonesian maids who came here in the past six months were recruited via means that defy Jakarta's laws.

This has led to employers and maids receiving the short end of the stick. The Straits Times reported recently that agents in Singapore are paying their Indonesian counterparts extra commission to get them to recruit maids, with the cost passed on to the employers and the domestic workers.

Paying Indonesian agents extra commission is outlawed under a new recruitment system introduced by Jakarta in May.

Mr Sukmo said the embassy knows of 1,734 maids who arrived here between May and October.

Only 884 took up bank loans to pay their placement fees of more than $2,200. The loans, a requirement of the new system, ensure they get a reasonable amount of take-home pay every month.

The maid is lent more than $2,200, which she will clear in eight months by paying the bank about $280 out of her monthly pay of $450.

Without the loan, the employer ends up paying the placement fee and deducting it gradually from the maid's monthly pay in the first year of her contract. Often, the maid will get as little as $10 a month while clearing the debt.

Mr Sukmo also presented a laundry list of the ways agents here are circumventing the laws.

The methods include bypassing licensed Indonesian agents and recruiting maids directly to avoid the bank scheme and using the old cost structure to recruit maids.

Some agents also collect more than $2,200 from employers, claiming it is to pay off the maids' loans.

But the cash is actually given as "deposit money" to Indonesian recruiters to entice them to continue supplying maids.

Mr Sukmo said Singapore agents are showing the same disregard for the law that they often accuse their Indonesian partners of.

"You say it is a jungle in Indonesia," he said. "But it is a jungle in Singapore, too.

"Stop this now. I know how you are breaking the rules. When I catch you, you will be punished."

Indonesian recruitment agents who flout the country's laws will not be let off the hook either. Jakarta's labour ministry will bar them from doing business with Singapore.


Employers and agents told The Straits Times that the Indonesian government must act fast to enforce its rules.

Ms K.C Tang, a 42-year-old lawyer who is trying to hire an Indonesian maid, said: "I was told to make upfront payment of my maid's salary to the bank to pay off her loan. But what if my maid suddenly decides not to work? I would have lost all my money."

Association of Employment Agencies (Singapore) president K. Jayaprema said: "Sometimes, the problem starts in Indonesia. The agents there don't play by the rules and the Singapore agents give in to them by paying extra money."

There are about 206,000 maids in Singapore, about half of whom are from Indonesia.

But the supply has dropped in recent months as some Indonesian recruiters have stopped sourcing for maids to protest against the new laws. Agents here have been trying to meet this shortfall by looking to Sri Lanka and Cambodia.

Family visits maid's hometown - and starts a library

Straits Times, Published on Oct 23, 2012
By Priscilla Goy

NUS student Xu Cunzhi (front), who initiated non-profit society Reads for Kids, set up two libraries in the Philippines with the help of his friends as well as (back, from left) maid Bernardina Dauz; elder brother Khelvin Xu, 28; mother Cynthia Toh, 52; and father Koh Kee Beng, 59. -- ST PHOTO: KUA CHEE SIONG

BEFORE a Singaporean family accompanied their maid back to her Philippine hometown for Christmas in 2010, they wondered what gift they could bring along that would leave a permanent impact.

They settled for a library - for the local community - which would be set up in the home of the maid, said National University of Singapore student Xu Cunzhi, 23, who went to Nueva Vizcaya in Luzon with his parents and maid Bernardina Dauz, 53.

The library was so well-received that Mr Xu went on to set up another library in the Philippines with friends.

Last month, the team registered Reads for Kids, a non-profit society, with plans to do even more. Led by Mr Xu, it has about 20 people, including his schoolmates, involved in activities.

Funds will be needed to drive the expansion plans to set up libraries in other areas of the Philippines and even China.

The earlier ventures were easier to pull off because both libraries were set up in existing buildings - the maid's house and a disused classroom.

The first initiative had seen Mr Xu's family, through word of mouth, collecting about 1,200 books for shipment to the maid's home in December 2010.

Asked how they managed to gather so many books then, Mr Xu, a final-year medical student, said: "I guess it just so happened that towards the end of the year, people were looking to do some spring-cleaning of sorts, so the books just started streaming in."

The books went into Nardy's Library, named after his maid. Mrs Dauz, known in her Filipino community as Nardy, has worked for his family for 23 years.

The library, set up in an annexe of her house, is run by her 24-year-old daughter. Her younger daughter, 23, gives weekly lessons at the library. Both daughters are housewives.

The library proved so popular among the villagers that the team shipped another 200 to 300 textbooks and teaching materials over in December last year.

Mrs Dauz said: "I feel very happy. All the villagers there are very happy. Not only my village but the surrounding villages too."

The books range from pre-school to adult fiction but the library focuses on reaching out to 150 school-going children aged four to 12.

Mr Xu said the literacy rate among them is high because they learn English in schools but they have little access to English books, with the nearest public library being about 10km away. "They haven't got the privilege of growing up in an environment where it's a norm to have a library around, to have a book around when you want to read," he added.

Inspired by the villagers' passion for promoting education, Mr Xu, his older brother, his maid and two of his friends went to Echague town in Luzon in June to set up a second library.

About 1,800 books, including 300 from the National Library Board, were gathered.

The society has plans to visit the Philippines and China in December to evaluate opening libraries in the two countries next June.

"We hope to set up two libraries a year, with six additional libraries by 2015," said Mr Xu who plans to approach private donors and foundations for funding.

For more information about Reads for Kids, visit www.facebook.com/reads4kids

Govt studying safer ways to remove asbestos in buildings

Though banned, material is present in older buildings

Straits Times, Published on Oct 23, 2012

 

THE Manpower Ministry is reviewing guidelines to improve the way asbestos is handled in Singapore.

It will take a close look at how to implement safer ways of removing asbestos from buildings, and engage competent contractors to do such work.

The review is expected to be ready for public consultation by early next year.

The Ministry of Manpower (MOM) revealed this to The Straits Times when asked about a study on preventive measures to eliminate asbestos-related diseases in Singapore. The study found that the incidence of asbestos-related diseases has increased in the last four decades.

Before it was banned in 1989, asbestos was commonly used in buildings because of its good insulation properties and high tensile strength. It can be found in roofing sheets, ceiling boards and floor tiles. It was also used for brake linings in cars.

Though useful, the fibrous material is hazardous and inhaling it can cause a lung disease known as asbestosis.

In the worst cases, malignant mesothelioma - a cancer of the lining of the lungs, abdomen or heart - can occur. Because of the health threat, asbestos is banned in more than 50 countries. Singapore banned the use of raw asbestos in building materials in 1989, and in cars in 1995.

Despite that, workers who demolish or renovate buildings constructed before 1989 would still be at risk of being exposed to asbestos.

From 2000 to last year, MOM confirmed 26 cases of occupational mesothelioma and three cases of occupational asbestosis.

Demolition works, and the wear and tear of asbestos-containing materials, can release asbestos fibres into the air, said Dr Lim John Wah, who co-authored a study on asbestos that was published last year.
The occupational health physician from the National University of Singapore (NUS) Saw Swee Hock School of Public Health also noted in a research paper that asbestos-related diseases - in particular, malignant mesothelioma - are on the rise here.

Singapore recorded a sharp peak in asbestos usage around 1975. This was followed by an increase in mesothelioma mortality leaping from less than 0.5 to around 2.0 per million population per year from the year 2000.

This, however, is not unusual because asbestos-related diseases have a long latency period, taking 30 to 40 years to surface, the researchers said. The incidence rate is thus expected to increase further.
Such a trend is similar to what is happening in other countries, Dr Lim noted.

Co-author Judy Sng from NUS Yong Loo Lin School of Medicine's department of epidemiology and public health said the tragic thing about mesothelioma is that almost all the time, it is diagnosed too late for anything to be done. She added that there should be greater awareness about this condition in the medical community.

Over the past decade, the Building and Construction Authority (BCA) issued an average of about 700 demolition permits each year. This includes permits for partial demolition.

Last year, MOM received 194 notifications on asbestos work.

The BCA's spokesman added that it works together with the MOM to remind builders and engineers in the permit application, to ascertain the presence of asbestos in the building before carrying out demolition works.

If asbestos is present, they are required to notify MOM before they start work.

Asbestosis - the scarring of lung tissue from asbestos fibres - and mesothelioma are the two key occupational diseases linked to asbestos exposure covered under the Workmen's Compensation Act (WCA) or the Work Injury Compensation Act (Wica).

The eligibility period to make a claim for compensation under WCA or Wica for asbestosis is 36 months from the date the worker ceased to be employed in the hazardous occupation and 12 months for mesothelioma.

Of the 26 confirmed cases, two received compensation of $111,000 and $140,000 under WCA or Wica. The remaining cases were not eligible for compensation under WCA or Wica as they were diagnosed after the eligibility periods. Of these cases, six claimants required financial assistance and received ex gratia payments ranging from $16,300 to $60,000 from the Workers' Fund.

Dr Lim said current guidelines state that workers handling and removing asbestos materials in buildings have to be supervised by people who have completed a course on it. This course, however, is done only once, without the need for further re-training.

He suggested the authorities conduct refresher training for such individuals so that their knowledge is up to date.

"Constant reminder and education of both employers and workers about the hazards of asbestos is essential to protect the workers who deal with asbestos," he said.

Dr Lim also said there should be adequate training on the different measures to prevent inhalation of asbestos dust, such as control measures to prevent dust formation, personal hygiene, and using and maintaining personal protective equipment.

***

Background story

Useful but hazardous material

• Asbestos was commonly used in buildings because of its good insulation properties and high tensile strength. It can be found in roofing sheets, ceiling boards and floor tiles. It can also be used for brake linings in cars.
• Inhaling it can cause a lung disease known as asbestosis. In the worst cases, malignant mesothelioma - a cancer of the lining of the lungs, abdomen or heart - can occur.
• Because of the health threat, asbestos is banned in more than 50 countries.
• Singapore banned the use of raw asbestos in building materials in 1989, and in cars in 1995. Despite that, workers who demolish or renovate buildings constructed before 1989 would still be at risk of being exposed to the material.

 

Over Singapore's Border, Cheap Labor Source Becomes Vibrant Economy

By REUTERS, From New York Times

Published: October 22, 2012 

SINGAPORE — When Tastyfood Industries decided to increase production to meet demand in Africa and the Middle East, the maker of Mr Cafe instant coffee and Vitamax cereal did not expand its Singapore factory or another one it owns in Xiamen, China.

Instead, it plans to close its Singapore plant next year and move up the road to the Iskandar economic zone in Malaysia, where it will set up a factory three times the size on low-cost land and hire willing workers as cheaply as it can in China.

“New-generation Singaporeans do not like production positions, as they are more educated now,” said Tastyfood’s founder and managing director, Joseph Lim, a Singapore native. “It’s not easy to manage a manufacturing company in Singapore unless you are in high-tech, high-value-added businesses like pharmaceuticals.”

Singapore companies dominate the companies setting up factories in Iskandar, accounting for about 15 percent of the 32.7 billion ringgit, or $10.7 billion, committed as of June, according to the Iskandar Regional Development Authority.

Companies from Germany, Japan, the Netherlands and Spain are among other large manufacturers in the zone in the southern Malaysian state of Johor, while companies from the United Arab Emirates are involved in housing and other property projects.

Mr. Lim, who will keep Tastyfood’s marketing and product development operations in Singapore, said a factory worker in Malaysia or China earned between 400 and 500 Singapore dollars per month, or $330 to $410, on average — less than half the wage in the wealthy city-state.

Proximity is also key. The new Iskandar factory is just a 30-minute drive from Tastyfood’s home base and a major market, he said, much closer than the four-hour flight from Xiamen.

“Doing business in China also carries a lot of risks, although things have been improving there,” Mr. Lim said.

Manufacturers are not the only ones heading to Iskandar.

The theme park Legoland and Marlborough College of Britain chose Iskandar for their first forays into Asia. The U.S.-based Simon Property Group set up its first Premium Outlets shopping center in Southeast Asia there through a joint venture with Genting Group of Malaysia, with an eye on Singapore’s affluent customers.

Being cheaper, and yet close by, is making Iskandar and nearby areas popular among bakeries, dry cleaners and other small and medium-size companies that have storefronts in Singapore but do much of their work just across the border.

Awfully Chocolate — a Singapore cake and ice-cream retailer that has expanded into China, Indonesia and Taiwan — makes some of the items for the 10 stores in its home market at a facility near the state capital, Johor Bahru.

In recent years, Singapore has begun to focus on banking, wealth management and other services, moving on from the manufacturing boom of the 1970s and 1980s that first brought prosperity to the city.

Iskandar, a 2,200-square-kilometer, or 850-square-mile, zone three times the size of Singapore, is just across a narrow strip of water, and Malaysia is pushing its many advantages for factories looking to relocate.

Land prices are far lower, and electricity costs are about half of Singapore’s rates. Tax incentives are also on offer.

Tastyfood paid 6.5 million ringgit for its site in Iskandar, which is the size of two soccer fields — about $160 per square meter, or $15 per square foot. Singapore prices industrial sites by the potential built-up area, and the cost could have been up to 30 times more. 

Many see the budding relationship between Iskandar and Singapore as similar to the role that Shenzhen, once home to fishing villages and now a vibrant Chinese manufacturing center, played in the growth of Hong Kong.

The Hong Kong Trade Development Council says companies based in the semiautonomous Chinese city now employ about 11 million people in Shenzhen and other parts of the Pearl River Delta but still use Hong Kong for logistics, marketing, banking and other services.

But the shared history of the two Southeast Asian hubs may give some investors pause. Singapore was once part of Malaysia but was expelled in 1965 amid tensions between the country’s Malay-dominated government and the city-state’s ethnic Chinese rulers.

Fifteen years ago, Lee Kuan Yew, the former prime minister of Singapore, derided Johor as “notorious for shootings, muggings and carjackings” — reflecting the still testy relationship as much as the rough-and-tumble realities of the Malaysian state.

Singapore companies were initially lukewarm about Iskandar, and interest picked up only after the two countries signed a broad agreement in 2010 to address longstanding issues.

Both countries are discussing shared immigration checkpoints to speed up traffic on the two bridges across the causeway, along with ferry and water services. Singapore’s subway operator, SMRT, will build a rapid rail transit link to connect Johor to Singapore by 2018.

A number of Singapore residents have already bought homes in Iskandar, including Mark Mobius, a fund manager for Templeton, who has a bungalow for weekend getaways.

IHH Healthcare of Malaysia is building a 300-bed hospital that will provide medical treatment to Singaporeans at half the cost they would pay at home.

The many changes “gave us the extra encouragement,” said the Singapore businessman Ricky Tan, whose Kinderworld group is building a private school with boarding facilities in Iskandar.

Ismail Ibrahim, head of the Iskandar Regional Development Authority, said the Singapore companies in Iskandar were mostly small and medium-size businesses, but he said he was confident that larger companies would follow.

“We have the space, we have the geographical position and we have all the necessary infrastructure,” he said. “With the right signals from both governments, big players from Singapore will be definitely coming in.”

The Singapore state investor Temasek Holdings is involved in two large property developments in Iskandar that will cost an estimated 3 billion ringgit.

Still, some analysts warn that improved Singapore-Malaysia relations could hit a few speed bumps in the medium term. Ties could sour if there are changes to the political leadership in either country, said Chan Chong Beng, president of the Association of Small and Medium Enterprises in Singapore.

The association recently surveyed members to gauge their interest in Iskandar and found that several had concerns about crime and the potential for costs to rise rapidly because of the zone’s proximity to Singapore.

Many analysts and businessmen say there is a mutual interest in having Iskandar flourish.

“In the past, relations between Singapore and Malaysia were a bit chaotic,” said Mr. Tan of Kinderworld. “But I think the economic benefits will drive the politicians in the future.”

A version of this article appeared in print on October 23, 2012, in The International Herald Tribune.

Agents paying extra for Indonesian maids

Some resorting to outlawed practice; embassy warns against bending rules

Straits Times, Published on Oct 22, 2012

By Amelia Tan

 

These maids from Crislo Employment Agency were one of the first to arrive here in July under new rules set by Jakarta in May. -- ST PHOTO: LIM WUI LIANG

SINGAPORE maid agents are shelling out extra to entice their Indonesian equivalents to recruit domestic workers - and passing on the cost to employers.

Agents in Indonesia are asking for $300 to $500 in "top-up fees" as commission for recruiting a maid or wang saku (pocket money) to the women's families.

This practice of paying top-up fees and wang saku had been going on for decades in Indonesia's maid business but was outlawed under a new recruitment system introduced by the country's government in May.

Jakarta wants to put an end to it as the money is often added to the debt that maids take on to find work overseas.

The Straits Times reported recently that the new system is coming apart as many Singapore agencies are defying the rules or using tricks to get around them.

Some said they are paying the extra money because they are afraid their Indonesian counterparts will turn off the supply tap.

The cost is passed on to employers through higher fees and charges for replacement maids, said Singapore agents, who asked not to be named for fear of being punished by the Indonesian government.

They estimated that agency fees for recruiting an Indonesian maid should be between $1,200 and
$1,600, and said those who charge more are probably doing so to pay the extra money.

They also said agents are charging employers more than $500 for a replacement maid, with some of this used to cover the wang saku and top-up fees.

Others pass the cost on to domestic workers by deducting a portion of their salaries over eight months. One agent, who is paying about $300 extra for each Indonesian maid, said: "The practice of giving wang saku has been there for so many years. It is difficult to get people to change just because there are new rules."

But Indonesian Embassy counsellor Sukmo Yuwono said Singapore agents are to blame.

They are the ones who offer the money to the Indonesian suppliers, he added.

"Why would (the suppliers) refuse the money since it is already offered?" he asked.

He said he knows of Indonesian agents who have accepted the fees, and is working with the country's Labour Ministry to bar them from supplying maids to Singapore.

Mr Sukmo said Singaporean employers who are not sure whether their agents are following the rules should contact him to clarify the situation.

Ms K. Jayaprema, president of the Association of Employment Agencies (Singapore), said: "We must stop paying top-up fees and wang saku. Once we agree to pay, the suppliers will keep asking for more and more."

The Indonesian Embassy met maid agents last Friday to warn them not to bend the rules.

In May, Jakarta introduced a new cost-sharing formula that makes hiring an Indonesian maid costlier, but less risky.

Under the new rules, employers no longer need to make a hefty upfront payment of about $3,000 in placement fees, which is recovered by deducting it gradually from the Indonesian maid's salary in the first year of her contract. Instead, the placement fees will be financed by bank loans given to the domestic workers.

But the one-time agency fee of $400 to $600, which covers the cost of advice given to employers, will go up, with agencies estimating that it will reach between $1,200 and $1,600.

The new system reduces the commission earned by Indonesian agents and recruitment middlemen. They have protested by not sourcing for maids, which has caused the supply of Indonesian maids to Singapore to drop in recent months.

There are about 206,000 maids in the Republic, about half of whom are from Indonesia.