Singapore

WHILE this year's National Day Rally was shorn of 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 hard policy measures were tied to principles. For instance, firms that hire foreign workers will have to pay a minimum salary to local employees - with the cost to be borne not just by firms, but consumers too, said Prime Minister Lee Hsien Loong on Sunday.

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

Singapore Management University associate professor Eugene Tan saw the speech as aimed at "reassuring Singaporeans on the issues that have been amplified by the pandemic", with a "back-to-basics" focus on people and society.

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

GET BT IN YOUR INBOX DAILY

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

Sign UpVIEW ALL

The pandemic has changed the world, but Singapore is moving forward to live with the virus and become "Covid-resilient".

"With Covid-19 under control, we must now refocus on the future," said Mr Lee. Having survived its worst economic crisis since independence, the country must now change gears for longer-term growth, he noted, adding: "It is no longer about drawing down reserves to keep ourselves on life support. It is about generating new growth, jobs and prosperity for the future."

First, Singapore must preserve its status as a business hub. Borders cannot stay closed for too long, as travel is crucial for multinational corporations (MNCs) 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 projects secured from major companies such as vaccine firm 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 growth must be inclusive, said the prime minister. Lower-wage workers, who received extra help in the pandemic, also need longer-term support.

In two years' time, the government's annual spending on the Workfare Income Supplement will be raised to S$1.1 billion, allowing higher payouts and a lower eligibility age of 30, down from 35 today.

The government has also accepted recommendations by the tripartite workgroup on lower-wage workers.

The Progressive Wage Model (PWM), which sets out income levels as well as career and training ladders, will be extended not just to more sectors, but to occupations across sectors.

Firms that hire foreign workers will have to pay at least the Local Qualifying Salary (LQS) of S$1,400 to all local employees. And a Progressive Wage Mark accreditation scheme will be introduced, with the public service only buying from such vendors.

But the cost of raising pay for lower-wage workers will have to be shared, Mr Lee noted.

Workers must be more productive. Employers will get transitional support to absorb part of the additional costs, but will still have to pass some on - so consumers too must expect to pay more.

Apart from lower-wage workers, middle-income Singaporeans also feel job-related anxiety, with concerns over competition from foreign work pass holders, noted Mr Lee.

To address this, the government must ensure that Employment Pass and S Pass holders "are of the right standard", he said. Salary cut-offs were raised last year, and the criteria will be tightened over time.

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

Labour chief Ng Chee Meng said that the PWM changes support the labour movement's calls for faster and wider implementation.

He was also heartened that the government has taken the Labour Movement's suggestions on strengthening workplace fairness.

Beyond workplace concerns, Singaporeans and non-Singaporeans alike must work to ease social frictions, said Mr Lee.

Singapore must not be seen as xenophobic and hostile to foreigners, as this "would gravely damage our reputation as an international hub, (and) it would cost us investments, jobs and opportunities".

Mr Lee added: "It would be disastrous for us - and it is not who we aspire to be."

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 that legislation can send a signal and nudge people to do better.

The Act will collect provisions spread out across laws such as the Penal Code and Sedition Act, and add "softer, gentler touches" such as the ability to order an offender to make amends by learning about the other race and mending ties.

Overall, this year's National Day Rally seems to be about reducing "wiggle room" for the sake of "progressive policy change", said Singapore University of Social Sciences associate professor Walter Theseira.

Citing the LQS requirement and the new laws as examples, he pointed out that this is in contrast to the earlier approach of using "non-legislative means to move the needle".

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, according to 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. The government has been watching the situation closely and assessed that Singapore is ready for the change, he said.

From Nov 1, Muslim nurses in the public healthcare sector will be allowed to wear a tudung if they wish to do so.

In a Facebook post, the Healthcare Services Employees' Union welcomed this, hoping it would lower barriers for Muslim nurses to join the sector.

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. Now, in the crisis of a generation, we have shown ourselves and the world what Singaporeans can do," he said.

READ MORE:

• A weighty and unique Rally that dealt with a trio of delicate subjects

• Tech firms ponder impact of tighter work pass rules

• 8 in 10 lower-wage workers to see income boost