Speech at Trade & Industry on the English Language Proficiency Requirement for Work Permit Holders in the Hotel, F&B and Retail Industries

Mr Lee Yi Shyan, Minister of State for Manpower, The Conrad Centennial Hotel

Ladies and Gentlemen

Good Morning.

Introduction

1.   It gives me great pleasure to join you here today. I would first like to commend the Conrad Centennial Hotel for their commitment to skills upgrading and training for their staff and dedication to service excellence.

2.   I understand Conrad Hotel has sent 17 staff for the Basic Conversational English course conducted by NTUC Learning Hub. The course is designed for foreign workers to improve or develop their English speaking, listening and reading skills. For a period of about two months, the Conrad Hotel staff attended English courses twice a week and learned to use appropriate language effectively for social and work purposes. They learned words and phrases commonly used in workplace conversations with customers, colleagues and supervisors. Through the English course, workers were also taught how to communicate work-related information to customers, such as their opinions on the menu. When this batch of workers graduates from the course in February, I believe they will be more confident and competent in their service delivery. 

Singapore’s Services Sector a Key Engine of Growth

3.   The Services sector¹ is an important engine of growth in the Singapore economy. The sector contributed 68.8% of nominal GDP and 67.3% of total employment in 2008². The Hotel, F&B and Retail industries together employed over 330,000³ local and foreign workers. With the opening of the two Integrated Resorts (IRs) this year, the Services sector is likely to grow further. When fully operational, the two IRs are expected to contribute between 0.5% and 1% of Singapore's GDP.

4.   The Services sector will be a key driver of our economy and has strong potential for growth if its service standards and productivity levels are raised.

Basic English Proficiency an “All-win” for Employers, Workers and Customers

5.   English language skills are particularly important in hospitality industries like Hotel, F&B and Retail, as workers interact regularly with international and cosmopolitan customers. In line with efforts to improve service standards and raise productivity across the broader Services sector, the Ministry of Manpower (MOM) has appointed the Singapore Workforce Development Agency to develop and implement the Service Literacy Test (SLT).  From July this year, Work Permit Holders in the Hotel, Retail and F&B industries will have to pass the SLT in order to qualify for the lower levy accorded to skilled workers.

6.   Workers equipped with basic English proficiency will be able to perform their jobs more effectively and customers will benefit from the enhanced service delivery. Johnson Wang, a Housekeeper at Conrad Hotel, has improved his language skills significantly after taking an English course. Johnson, a Chinese national, previously had difficulty attending to the requests of hotel guests. The English course on speaking and listening has helped him to perform his job and address customers’ needs more effectively now.

Facilitating Communication and Integration

7.   English is the official language or lingua franca in Singapore.  All foreign workers of all nationalities will benefit from knowledge of it in order to communicate with their employers, other Singaporeans as well as other foreign workers. Furthermore, at most workplaces, English is the medium of instruction. Besides interacting with customers, workers should also be able to understand instructions given in English from their supervisors at work.

8.   Mr John Park Jun Hyuk from Korea is an example of a Service staff who has become more productive and effective in his job as a result of achieving basic English proficiency. Prior to his participation in an English course, he had trouble grasping the language. However, with the help of his colleagues and the training programme, his conversational skills have improved significantly. John can now follow his supervisors’ instructions and comprehend room service orders accurately, thus boosting his productivity at work.  

Achieving Cost Savings Through a Lower Levy Bill

9.   Employers can enjoy a lower levy bill if their foreign workers are more qualified or skilled. The SLT will serve as an incentive to encourage companies in the hotel, retail and F&B industries to commit their workers to better service quality and higher productivity. However, to give businesses flexibility, English language proficiency will not be an entry requirement.  We will continue to allow employers to make their own business decisions and determine language requirements according to their needs. However, it is hoped that the SLT will urge both companies and foreign workers alike to enhance their abilities and raise service standards in the three industries. This improvement in service standards will, in turn, boost our economy and reputation as a tourist destination.

Ensuring a Smooth Transition

10.   While the additional criterion will be implemented from July 2010, work permit holders will be allowed to register for the test from April this year. This helps towards a smooth transition for employers so they will have sufficient time to consider achieving cost savings by equipping their workers with basic English language skills. To prepare workers for the SLT, employers can tap on existing English courses for skills upgrading and training of their workers. For instance, the Basic Conversational English course by NTUC Learning Hub which is designed for foreign workers who want to improve or develop their English skills for everyday life.

Conclusion

11.   We do not expect foreign workers to be able to speak perfect English after passing the SLT. However, we do expect them to be able to understand and be understood by most Singaporeans and tourists.  In closing, I would like to encourage workers and employers to work hand in hand to improve the quality of the foreign workforce in Singapore. Workers in the Service industries who are equipped with basic English proficiency will help to improve service quality and productivity. This is in line with the Government’s long-term manpower strategy is to develop a globally competitive workforce that is better skilled and more productive.

12.   Thank you.

¹The Services sector includes wholesale and retail trade, accommodation and food & beverage services, transport and storage, information and communications, financial- and insurance-related services, real estate and business services, community, social and personal services.
²Source: Department of Statistics – Economy Survey Series “The Services Sector”, Reference Year 2007
³The three industries employ 334,100 as of end Dec 2008. Source: MOM Labour Market Publication, 2008