Debate speech on Budget Statement 2024 by Mohd Fahmi Aliman on 27 February 2024

27 Feb 2024
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Mr Speaker, Sir, this has traditionally been a time when we as a nation delineate our goals and aspirations for the year ahead. It is thus imperative that we renew our commitment and resolve to uplift society as Singaporeans contend with job insecurity amidst rising costs of living.

I am uplifted by the central theme of this year's budget: “building our shared future together.” As we continue to find ways to deal with the ever-evolving nature of world affairs, we must also set our eyes on how we can insulate and protect vulnerable Singaporeans from external shocks. My esteemed colleagues and I in the Labour Movement strongly support and welcome the plethora of measures introduced to alleviate the hardship that Singaporeans have experienced as a result of the external shocks primarily from the ongoing conflicts around the world as well as improve all facets of society amidst increasing job insecurity and rising costs of living.

Nonetheless, I reckon that there are sufficient opportunities and scope to assist vulnerable workers better amidst evolving global developments especially our lower-wage workers. The best way to help workers cope with the cost of living is through better wages and better jobs. Speaker, Sir, in this speech I will elaborate on how to further support our lower wage workers and also update on the M3 Focus Area 4 efforts in assisting Malay/Muslim in the areas of employment and employability.

Low-wage workers are the backbone of our society as they keep Singapore going. Engaged in vital sectors such as retail, hospitality, and cleaning, they contribute significantly to daily operations. Their efforts uphold essential services, ensuring the functionality of the economy. Therefore, recognising their importance and challenges are crucial for fostering economic resilience and societal well-being.

Last year, I reiterated that the formation of the Tripartite Workgroup on Lower-Wage Workers is a testament to our commitment to ensure that the interests of our lower-wage workers are protected. Over the past years, the collective support from various stakeholder groups to uplift the incomes of our lower-wage workers has been encouraging. For example, the Workfare Income Supplement (WIS) enhancements, effective since January last year, were lobbied by NTUC to address rising cost of living. Last week, the government also announced that low wage workers who earn $3,000 or less will be eligible for WIS in January 2025. The changes to the WIS reflect the NTUC’s strong commitment to support low wage workers. NTUC, alongside our tripartite partners and various other stakeholder groups, will continue to remain committed to helping workers improve their income security and quality of life, and give them confidence in navigating their careers, equipping them to participate in new growth opportunities. But how can we work towards this goal? What are some areas we can continue to look into?

Firstly, the current practice of resetting benefits during contractual changes may provide flexibility for employers to adapt to evolving business needs, ensuring alignment with job roles. However, this practice creates a sense of job insecurity and financial instability, especially for low-wage and re-employed individuals. It undermines the principle of recognising an employee's length of service, neglecting the dedication and experience they bring to the workplace.

Hence, it can lead to demotivation, reduced job satisfaction, and a higher turnover rate. Advocating for change is essential to ensure a fair and supportive work environment, fostering stability and acknowledging the contributions of all workers.

Therefore, I call on the Government to consider ringfencing lower-wage workers to protect them from the associated problems stemming from the practice of resetting benefits during contractual changes. Recognising the length of service at workplace is crucial, ensuring that employees, including re-employed staff performing the same job, receive fair and consistent treatment in terms of wages and benefits. This approach promotes job stability, motivates employees, and enhances overall job satisfaction. It contributes to a more equitable and supportive work environment, aligning with the principles of fairness and recognition for long-serving individuals. Enforcing these measures would foster a positive work culture and reinforce the government's commitment to the welfare of its workforce.

Secondly, in the spirit of continuing to help lower-wage workers through PWM, I quote the call from MP Melvin Yong, NTUC has also identified two sectors for the implementation of the PWM namely, strata and facilities management, as well as pest management. These sectors, such as cleaning and security, are outsourced sectors facing common challenges such as cheap sourcing, which drives down wages. NTUC has conducted several engagements with stakeholders in the respective sectors, and response has been very encouraging thus far. LM will continue to explore the inclusion of these sectors within PWM, and we would like to call upon our tripartite partners to work with us to do so.

The Labour Movement appreciates Government’s enhancements to the Progressive Wage Credit Scheme (PWCS), including raising the wage ceiling for co-funding from $2,500 to $3,000 in qualifying years 2025 and 2026 and enhancing co-funding levels for wage increases given in 2024. We believe that this enhanced funding support from the Government is timely and will be pivotal transitional wage support for employers to adjust to upcoming mandatory wage increases for low-wage workers covered by Progressive Wage and Local Qualifying Salary (LQS) requirements.

Lastly and on a related note, it is imperative that we look at parallel efforts to raise the LQS. The Labour Movement welcomes the government’s move to raise the LQS to $1,600 in July this year, up from $1,400 previously. This adjustment not only protects the financial interests of the workforce but also reinforces the principle that gainful employment should provide a standard of living that reflects the economic realities of the society in which it operates. In doing so, the LQS contributes to maintaining fair labour practices and fostering a more equitable and sustainable labour market.

Therefore, I call on the LQS to be perennially reviewed, especially amidst global uncertainty. By aligning the LQS with the rising cost of living, authorities aim to ensure that employees receive salaries that are commensurate with the economic demands of the time.

Update on M3 FA4
Mr Speaker, Sir, in Malay, please.

Dalam rangka kerja M kuasa tiga Kawasan Tumpuan 4, kami akan terus melibatkan masyarakat Melayu/Islam yang bertujuan untuk merapatkan pekerja dengan peluang-peluang pekerjaan dan kebolehpasaran mereka, meningkatkan keupayaan mereka melalui peningkatan kemahiran dan pembelajaran sepanjang hayat, dan mendekati segmen pencari pekerjaan yang berbeza-beza. Pada peringkat mikro pula, kami sedang menyasarkan kumpulan tertentu iaitu pekerja platform, kaum wanita, pekerja matang dan para belia melalui pameran kerjaya, bengkel yang dianjurkan dan sesi perundingan. Platfom ini bertujuan untuk menggalakkan peluang kerjaya dan latihan, meluaskan lagi pemahaman mereka tentang pekerjaan dan kemahiran yang sering diperlukan, dan untuk mengakses peluang-peluang pekerjaan dalam sektor yang semakin berkembang.

Apabila aspirasi pekerja berubah, Worker’s Compact kita – kontrak sosial, ekonomi kita dengan pekerja kita – mesti diperbaharui untuk tujuan gaji yang lebih baik, kebajikan dan prospek kerja terus menjadi matlamat kolektif untuk pekerja, majikan dan pemerintah.

NTUC bersama Workforce Singapore (WSG) dan MENDAKI melalui pameran kerjaya dan Karnival Pekerjaan & Kemahiran baru-baru ini, lebih dari 5000 pekerja Melayu telah terlibat dan hampir 20 peratus dari mereka telah menerima bimbingan melalui inisiatif Kawasan Tumpuan 4. Ini termasuk sokongan iaitu bimbingan kerjaya, pemadanan pekerjaan dan peluang peningkatan kemahiran.

MENDAKI telah merujuk lebih 140 peserta daripada Women At Work (W@W) ke e2i NTUC untuk mendapatkan bantuan pekerjaan dari Januari hingga Disember 2023. Sempena usaha penyepaduan semula oleh MENDAKI dan rakan kongsi pekerjaan lain, hampir 60 peserta telah berjaya memperoleh pekerjaan sebahagianbesarnya dalam sektor seperti pendidikan, penjagaan kesihatan, kejuruteraan, IT dan kewangan.

Selain daripada peluang pekerjaan, NTUC juga menyediakan saluran bagi peningkatan kemahiran yang akan menjadikan setiap pekerja, pekerja yang lebih baik dan setiap pekerjaan, pekerjaan yang lebih baik. Pembelajaran sepanjang hayat ialah proses memperoleh kemahiran dan pengetahuan baharu sepanjang hayat seseorang, untuk pembangunan peribadi atau secara profesional. ‘NTUC LearningHub’, menawarkan huraian latihan bermutu untuk membantu pekerja berkembang maju dan kekal berdaya tahan dalam ekonomi yang berubah secara digital hari ini dan seterusnya. Seorang individu yang ingin saya ketengahkan ialah Cik Siti Nur Indra Jalal, berusia 29 tahun, dan merupakan seorang bekas penasihat kewangan selama 5 tahun dan beliau kini berhasrat untuk kembali ke dunia korporat dengan harapan untuk beralih ke sektor baharu. Walau bagaimanapun, mendapatkan pekerjaan baharu adalah amat mencabar dan mengerunkan terutamanya semasa tempoh wabak. Untuk meningkatkan kebolehpasaran beliau, Cik Indra telah mendaftar sebagai Pakar Komuniti dan Perkongsian selama 6 bulan di ’ LHUB dan hari ini beliau adalah seorang Pengurus Projek dalam Keselamatan Siber untuk sebuah organisasi. Beliau berhasrat untuk terus meningkatkan dan melengkapkan dirinya dengan kemahiran penting melalui kursus yang disediakan oleh LHUB. Ini menunjukkan bahawa “Jika ada kemahuan, di situ ada jalan.”

Daripada rujukan di atas, ia adalah contoh yang baik bagi pertukaran pertengahan kerjaya dan sangat munasabah terutamanya dengan program peningkatan tahap yang baru diperkenalkan oleh Skillsfuture untuk warga Singapura berumur 40 tahun ke atas. Tambah nilai $4,000 pada Mei 2024 dan Subsidi Pertingkatan Kerjaya Pertengahan merupakan rangsangan bagi individu untuk meneruskan peningkatan kemahiran dan mendapatkan hasil kebolehpasaran yang lebih baik. Di samping itu, elaun bulanan sehingga $3,000 (sehingga 24 bulan) untuk kursus sepenuh masa terpilih di bawah Elaun Latihan Pertengahan Kerjaya SkillsFuture akan dialu-alukan oleh ramai pihak. Oleh itu, saya menggesa rakyat Singapura untuk memanfaatkan sepenuhnya program-program yang sedia ada untuk meningkatkan kemahiran diri dan memperoleh kebolehpasaran yang lebih baik.

NTUC, bersama rakan kongsi tiga pihak kami dan pelbagai kumpulan berkepentingan lain, akan kekal komited untuk membantu pekerja meningkatkan keterjaminan pendapatan dan mutu hidup mereka. Ini termasuklah memastikan perlindungan kewangan untuk pekerja sekiranya berlaku kecederaan di tempat kerja, menambah baik kecukupan perumahan dan persaraan, dan meningkatkan lagi perwakilan untuk masa depan yang lebih cerah.

Conclusion
In closing, this year's budget theme, building a shared future together, has ignited a collective commitment to navigate global complexities and safeguard vulnerable Singaporeans. While applauding the Government's efforts to alleviate hardships, we must recognise opportunities for targeted support, particularly for lower-wage workers and communities. Looking ahead, our focus will remain on addressing the challenges faced by vulnerable workers, emphasising better wages and improved job opportunities as a solution to rising cost of living. With unwavering dedication, the NTUC stands ready to champion the interests of Singaporean workers. NTUC cares for the well-being of our workers coping with the rising living expenses and is committed to enhancing wages, conditions, and better support to improve quality of life. Rest assured, NTUC cares and will take action for you, with you, because Every Worker Matters.

Mr. Speaker, Sir, I support the Budget.

Thank you.