Speech at The Ministry of Manpower National Day Observance Ceremony 2008
Mr Gan Kim Yong, Acting Minister for Manpower, NTUC Auditorium, One Marina Boulevard
Mr Stephen Lee,
President, Singapore National Employers Federation
Mr John De Payva,
President, National Trades Union Congress
Colleagues and fellow Singaporeans,
As we gather here this afternoon to celebrate our nation's 43rd birthday, the outlook is somewhat more uncertain than a year ago. Inflation reached 7.5% in June 2008, while the economy slowed to 1.9% in Q2. Consequently, job creation has also been affected by the cautious sentiments among employers and slowed down slightly to 70,600 in Q2 08, compared to 73,200 in the previous quarter. Externally, the US sub-prime crisis remains a source of concern. The breakdown of the trade talks in Geneva may create greater protectionist pressure globally. Regionally, many of our neighbours are facing inflationary pressure, a slowing economy and volatile socio-political situation. While we must be prepared for some challenges going ahead, we have reasons to be positive and confident.
2. Firstly, our fundamentals are right. Moderated built in wage increases help to keep our economy competitive and yet help to ease the pressure of inflation on workers. In addition to the various government measures and NTUC's efforts, the proposed one-time payment to the rank and file will further help them cope with inflation without affecting long term competitiveness of our economy. Sustained efforts to push for training and upgrading ensure that our labour force remains relevant and competitive. Singapore has in fact moved up a notch and is today the world's second most competitive country, according to the 2008 IMD World Competitiveness Yearbook. We are still one of the most attractive investment destinations.
3. Secondly, we have enjoyed a few years of strong economic expansion and job growth. We have seized the opportunities to make hay while the sun shines. We adopted flexible labour policy and allowed companies to grow and expand their businesses. We created record number of new jobs, 234,900 last year. Although unemployment has inched up this year, it remained at a low level of 2.3% overall in June. Employment rate, on the other hand, has improved, especially among the older men.
4. Thirdly, we have leveraged on the positive economic environment to bring in many new and strategic investments that will continue to provide the engine of growth for our economy and create good jobs for Singaporeans for many years. If you look out the windows, you can see the Marina Sands Resort across the street taking shape. Further South, you will see the Resorts World at Sentosa if you have very good eyes. If you look out the other window, you will see the tracks for the world's first F1 night race. If you look further, you will see the Singapore Flyer and with some imagination, you can see the new Sports Hub. This NTUC building actually bears witness to the transformation we have achieved in the last few years. Amidst the dark clouds, we can clearly see some silver lining. This is signified by the Tripartite Golf Friendly this year. Despite an over cast sky, we had great weather this year after many years of rainy weather. We had a great game.
5. As we celebrate the progress and achievements we have attained as a nation, it is important for us not to become complacent, but to continue to build upon the spirit and values that have united us as a nation to ensure the continued success of Singapore.
Employment scene
6. Our workforce plays a crucial role in sustaining and growing our economy, in improving the quality of life of fellow Singaporeans, and in creating a better future for Singapore. We must ensure that our workforce remains globally relevant and competitive. Firstly, the labour market must be flexible and responsive. With economic cycles getting shorter. We have to ensure that we have the quantity and quality of workers available to support economic growth when the opportunities are there. When the economy slows down and jobs are lost, we will need to trim our workforce. As our local labour supply is not so elastic, foreign workers play an important role in keeping our workforce flexible and responsive. In addition, we want to encourage more women and older workers to join the workforce and stay employed longer to add flexibility to our workforce.
7. Secondly, our workforce must be dynamic and mobile. Businesses are expected to keep changing and restructuring to stay competitive. The workers they need will also change constantly. We must therefore continue with our push to help workers upgrade and update themselves so that they can acquire new skills that are needed. This will help them become more mobile so that when jobs are lost as a result of business restructuring, affected workers can move on easily and quickly to find a new job. Mobility will also allow our workers to seize the emerging opportunities from new businesses in the growth sectors. This is why we introduced the CET Master Plan earlier this year. We must step up our efforts in CET.
8. Thirdly, we need to keep Singapore a progressive and attractive workplace for our workers, local as well as foreign. This relates to our efforts in Occupational Safety and Health outcomes, work-life balance initiatives, fair and equitable employment practices, and income security. PM has set a new target of 1.8 fatalities per 100,000 workers by 2018. To achieve this, we will need to go beyond skills and systems. We will need to develop a strong safety culture at all levels of the workforce. The Workplace Safety and Health Council had been set up and they have started work on this. Only if we maintain Singapore as an attractive workplace, will we be able to retain Singaporeans and attract foreigners here.
9. Our labour policy will shape the kind of workforce we can nurture and develop. Therefore, we must also constantly review and update our policies to keep pace with the changing landscape and the demands of our economy. However, we cannot do this alone. We must continue to work closely with our tripartite partners, building on the strong relationship, mutual trust and shared vision we have developed over the years.
Celebrating the Singapore Spirit
10. The theme for this year's NDP is "Celebrating the Singapore Spirit". The Singapore Spirit has stitched our social fabric in harmony, united us in adversity and propelled us towards excellence since independence. The meaning and interpretation of the "Singapore Spirit" differs from person to person. To me, it has three important aspects. First, it encompasses the pioneering spirit of our forefathers: the determination to become self-reliant, the drive to overcome difficulties and challenges, and the confidence that we will succeed. This was the key to our success in the past, and it will continue to play a key role in determining our future.
11. Second, the Singapore Spirit also means team work. Individual talents are important, but team work is vital. Everyone in Singapore is a key member of Team Singapore. Local Singaporeans, new immigrants, PRs, foreigners here, all contribute towards our progress. Each may have a different role but we must work as a team towards a common goal of progress and prosperity for every member.
12. That leads me to the third aspect of the Singapore Spirit, inclusiveness. As we progress, there will be some among us that will need an extra hand so that they too can benefit from the overall progress. These include the lower skilled, lower income and older Singaporeans. We must continue to help them move along through our Workfare Income Supplement scheme, Growth Dividend and various rebates and help schemes. Through training and upgrading, we must continue to create opportunities for them and their children so that they have a chance to become self-reliant too.
13. As we celebrate National Day this year, let of us consider what the Singapore Spirit means to each of us. Let us explore how we can strengthen, deepen and broaden this spirit through our policies and programmes to make Singapore a great nation.
14. I wish all of you a Happy National Day.