Speech at The Precision Engineering WSQ Diploma Graduation Ceremony

Gan Kim Yong, Minister for Manpower, Singapore Polytechnic

Mr Lim Peng Hun, Acting Principal, Singapore Polytechnic

Graduates

Ladies and Gentlemen

1.           Good Afternoon.  I am pleased to join you this afternoon to celebrate the graduation of the pioneer batch of trainees from the Precision Engineering WSQ Diploma in Machinery and Systems programme.  I am sure that they, along with their family, friends and colleagues, are proud of what they have achieved.

Skills Programme for Upgrading and Resilience (SPUR)

2.           In Dec 2008, at the onset of the global economic crisis, the Government and its tripartite partners launched the two-year Skills Programme for Upgrading and Resilience, or SPUR for short.  SPUR was part of a national response to the crisis, leveraging on the extensive Continuing Education and Training (CET) system, to help companies and workers manage the economic downturn by saving jobs while investing in building skills for the recovery.  Funding support for training was increased significantly.  Many new courses, like this diploma programme, were introduced.  Job assistance, traineeships and skills conversion programmes for jobseekers were expanded. 

3.      SPUR has made a significant impact in cushioning the fall out of the economic crisis.  Between December 2008 and June 2010, about 251,000 workers have completed or are undergoing SPUR training.  64,000 job seekers have found jobs under SPUR.  Three in four companies with plans to retrench workers reported they postponed or reduced the number of affected workers due to SPUR, Jobs Credit and other Government initiatives.  Seven in 10 individuals who found jobs after SPUR courses felt that the training played a useful role.  Six in 10 companies said that their workers’ productivity had improved after training.  In short, SPUR has made an important difference, not only in helping companies save jobs and improving workers’ employability, but also in raising the capability and quality of our workforce.

4.      Today, the economic and employment outlook is a lot brighter.  In the first half of 2010, the Singapore economy is estimated to have expanded by 18.1% year-on-year.  The strong recovery has led to strong job creation.  The overall unemployment rate also declined to 2.2% in March 2010. 

5.      Designed as a temporary measure to address the economic downturn, SPUR has served its purpose.  With the economy stabilising, it is timely to phase out SPUR and adopt more targeted measures to support economic restructuring and enhance productivity.  We will stick to our scheduled phase out of SPUR by November 2010.  From 1 December 2010, funding rates for course fees will be revised from 90% to 80% for rank-and-file courses.  For programmes targeted at PMETs, the new funding rate will be 50%.  Absentee payroll support for employers will also be scaled down. Trainees who are currently funded under SPUR programmes will continue to receive funding until the end of their training and will not be affected by these changes. MOM and WDA will release further details on this today.  

Looking Ahead – Supporting Capability and Productivity-Driven Growth

6.      However, CET remains a key strategy to raise productivity.  Indeed, we will step up our efforts and investment in CET.  The changes will allow us to channel our resources to help our workers more effectively as we build globally competitive companies and a world-class workforce.  The revised funding rates continue to provide generous subsidies so that both employers and workers can tap on training to upskill and upgrade for the future.  The government’s total investment in Continuing Education and Training (CET) is expected to increase to about $2.5 billion over the next five years. 

7.      There are three key thrusts of our CET strategy going forward. First, our CET efforts will be more targeted so as to be more effective. We will focus on outcome-based certifiable training programmes to meet the needs of the economy. Our universities and polytechnics, including Singapore Polytechnic, will play an important role here.  One example is the new WSQ Diploma programme in Mechatronics and Robotics to be launched by Singapore Polytechnic and WDA.  This WSQ diploma will help to develop expertise in designing, implementing and managing different manufacturing systems, ranging from automated and robotic systems to micro-devices. 

8.      Second, we will be expanding our CET offerings for PMETs (Professionals, Managers, Engineers, Technicians) – with more funded courses for them. Historically, our CET investment has focused on rank-and-file workers.  Today, PMETs make up slightly more than half of the workforce, and the proportion is increasing. They are often the key drivers of value creation in enterprises, but they are also at risk of having their skills becoming obsolete. We had started to include more PMET programmes during the recession.  PMETs and their employers can look forward to many more WSQ and other programmes which will help broaden and deepen their skills.  Expanding the coverage to PMETs will be a major priority in the next phase of development of our CET system.

9.      Today, WDA is introducing a new initiative called Productivity Initiatives in Services & Manufacturing (PRISM).  PRISM aims to help companies, in both the manufacturing and services sectors to raise their productivity through various tools and techniques such as Six Sigma, Lean Management, Business Process Re-engineering among others.  Through a series of productivity-related master classes, seminars and training courses, we aim to help 1,000 managers and supervisors pick up useful tools and know-how to drive productivity efforts within their companies.  Some of these can be customised to suit different industries, such as aerospace, generic manufacturing, retail, and electronics among others.  The programme will cost $3 million over two years.  PRISM is an example of programmes for PMETs.

10.    The third pillar is to foster inclusive growth.  We will continue to help rank and file workers upgrade their skills, especially the more vulnerable low wage, low skilled workers and ensure that they are not left behind as the economy powers ahead.  MOM and WDA launched the Workfare Training Support (WTS) scheme four weeks ago.  WTS encourages low wage workers to upgrade their skills through training, so that they can improve their employability and upgrade to better jobs.  Low wage workers can enjoy higher course fee funding, cash awards and greater support when they sign up for any Singapore Workfare Skills Qualifications (WSQ) courses at the CET Centres.  

11.    WTS will cost the government about $190 million over three years.  In addition to course fee subsidies, low wage workers will enjoy Training Commitment Award of up to $400 a year.  Their employers will also enjoy absentee payroll that is equal to or higher than what is being offered under SPUR, to encourage them to send their workers for training.

Conclusion

12.    Ladies and Gentlemen, although our economy is recovering, the world has become more complex and interlinked.  Business cycles have become shorter and we can expect more volatility.  It is imperative that we continue to focus on continuing education and training.  By continually upgrading and keeping their skillsets future-ready, Singaporeans will remain competitive and employable.

13.    Let me end by congratulating our 22 graduates, who serve as inspiration for us to embrace life-long learning.  Your achievements have also validated our vision to build a CET system that will be among the best in the world.

14.    Thank you.