National Day Rally: Focus on lower-wage workers, fair employment, racial harmony

Janice Heng

Published Sun, Aug 29, 2021 · 01:10 PM

WHILE this year's National Day Rally lacked bumper packages it was nonetheless a blueprint for the future, with announcements that reflect what Singapore aspires to be: a society that values lower-wage workers, remains open to foreigners, and prizes racial and religious harmony.

Even its hard policy measures were tied to societal principles. For instance, companies that hire foreign workers will have to pay a minimum salary to local employees - with the cost of such moves to be borne not just by companies but consumers as well, said Prime Minister Lee Hsien Loong.

Meanwhile, two new laws will give greater legal and symbolic force to Singapore's commitment to fair employment and racial harmony.

This was the first National Day Rally since the Covid-19 pandemic began, after last year's rally was replaced by a speech in Parliament.

The pandemic has changed the world, but Singapore is moving forward to live with the virus and become "Covid-resilient", said Mr Lee. "With Covid-19 under control, we must now refocus on the future."

Having survived its worst economic crisis since independence, the country must now change gears for longer-term growth, he said: "It's no longer about drawing down reserves to keep ourselves on life support. It is about generating new growth, new jobs, and prosperity for the future."

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First, he said, Singapore must preserve its status as a business hub. This means not allowing borders to stay closed for too long, as overseas travel is crucial for multinational corporations that use Singapore as a regional base as well as for local businessmen.

Second, Singapore must remain attractive to investors - as it has managed to do during the pandemic, with investments secured from major companies such as vaccine maker BioNTech and semiconductor manufacturer GlobalFoundries.

Third, local entrepreneurs need to venture abroad, seize opportunities, and grow, with Enterprise Singapore supporting them in these efforts.

But economic growth must be inclusive growth, said Mr Lee. Lower-wage workers, who received extra help during the pandemic, also need longer-term support.

In two years' time, the annual budget for the Workfare Income Supplement will be raised to S$1.1 billion. This will allow higher payouts and a lower eligibility age of 30, down from 35 now.

The government has also accepted several recommendations of the tripartite workgroup on lower-wage workers. For instance, the Progressive Wage Model, which sets out income levels as well as career and training ladders, will be extended: not just to more sectors, but to specific occupations across all sectors. This will start with administrative assistants and drivers.

Furthermore, companies will be required to pay at least the Local Qualifying Salary to all local employees if they wish to hire foreign workers.

And a Progressive Wage Mark accreditation scheme will be introduced, with the public service only buying from such vendors.

The cost of raising pay for lower-wage workers will have to be shared, Mr Lee noted. Workers must be more productive, employers must absorb part of the additional costs, and consumers must pay more.

Middle-income Singaporeans also feel job-related anxiety, with concerns over competition from foriegn work pass holders, said Mr Lee.

To address this, the government must ensure that Employment Pass and S Pass holders "are of the right standard". Salary cut-offs for these passes were raised last year, and work pass criteria will continue to be tightened over time.

Employees must also be assured of fair treatment at the workplace, with a new law to give legal teeth to existing guidelines by the Tripartite Alliance for Fair & Progressive Employment Practices.

The law will be modelled after existing frameworks for salary or wrongful dismissal disputes, where conciliation and mediation are tried first, he added. A tribunal on workplace discrimination will be created, but this should be a "last recourse".

Beyond workplace concerns, both Singaporeans and non-Singaporeans must work to ease social frictions.

Singapore must not be seen as xenophobic and hostile to foreigners, said Mr Lee: "It would gravely damage our reputation as an international hub. It would cost us investments, jobs, and opportunities.

"It would be disastrous for us, and most of all, it is not who we aspire to be." Singapore must stay open not just in its policies but also mindsets and values, he added.

In another move to shape social attitudes, a new Maintenance of Racial Harmony Act will bring together the government's existing powers to tackle racial offences and include measures to promote reconciliation.

Devoting a third of his speech to the thorny issue of race relations, Mr Lee said legislation can play a role by sending a signal and nudging people to do better.

While Singapore's policies on race and religion will evolve with the times, they should do so based on the country's own needs and not trends abroad. And adjustments should be made cautiously, said Mr Lee.

One example is the government's stance of not allowing the tudung in certain uniformed contexts, such as at schools, in the armed forces, and among nurses in hospitals.

The issue was intensely discussed in 2014. Since then, the government has been watching the situation closely and assessed that Singapore is ready for the change. Thus, from November, Muslim nurses in the public healthcare sector will be allowed to wear a tudung with their uniforms if they wish to do so.

Concluding his speech, Mr Lee acknowledged this year's focus on society and people - as people are, after all, Singapore's greatest strength.

"In ordinary times, we may not realise how strong Singaporeans can be," he said. "Now, in the crisis of a generation, we have shown ourselves and the world what Singaporeans can do."

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