Budget 2015 Speech – MP Lee Li Lian

By MP for Punggol East SMC, Lee Li Lian
[Delivered in Parliament on 5 Mar 2015]

Madam Speaker, Singapore has come a long way and this year we will be celebrating our nation’s first 50 years as an independent country.  Our history is important.  It shapes, molds and forms our country.  Having said that, our future is equally critical and this year’s budget takes major steps in four areas to focus on building Singapore’s future. The Government investing more in our Nation’s most valuable assets, our people, is welcome and certainly the right thing to do.

Today I will focus my speech on the need to invest skills of the future, and empower every individual to learn and develop throughout their life.

Skills Future Credit

Technology is constantly evolving and changing the way things are being done.  Processes that we considered common and had gotten used to for years can be done today more efficiently and effectively with the help of technological advancements.  Jobs can be replaced by technology, never to return.  When we are no longer able to change a situation, we are challenged to change ourselves. And to remain competitive, it is important for people to constantly adapt and adjust to stay relevant in an era of rapid technological advances and environmental change.  To charter this course of self-development, skills upgrading and training are essential.

One of the highlights of this year’s budget is that all Singaporeans, above the age of 25, will receive an initial credit of $500 for work-related courses.  That is to say even at the age of 70, one can continue to upgrade themselves. In Chinese we call this, 活到老学到老.  It is true that people must be interested in getting themselves trained.  They have to see the value training can bring them.  If you are not willing to learn, no one can help you.  If you are determined to learn, no one can stop you. However, at the same time, we can help enable the individual who is willing to take ownership of his or her life. Apart from providing a $500 credit for work-related courses we will need to address factors that might hamper the development of a culture of continued self-development. .

One reason why employees may not be going for the required skills upgrade could be the resistance they are getting from their respective companies.  Training presents a prime opportunity to expand the knowledge base of all employees, but many employers find the development opportunities costly. Employees may need to be absent from work to attend a course or training, which may delay the completion of projects and scheduled work. Employers may also not be willing to bear some of the costs of training fees.

In my previous job, I was very fortunate to be in a company that valued skills and regularly sent staff for skills upgrading for both hard and soft skills. Despite the potential drawbacks, training and development provides both the company as a whole and the individual employees with benefits that make the cost and time a worthwhile investment. Training provides a series of planned learning experiences for individuals and builds their technical skills and business competencies. Training also helps to improve efficiency and can motivate employees to do well. This helps to make positive changes to the way in which they work and make decisions.  It also helps individuals use the training to meet their individual needs and ambitions. Hopefully with the government formalizing skills upgrading, we can change employers’ mindset.

This leads me to the cost of taking up courses and whether $500 is sufficient for PMETs to adequately upgrade themselves. Many valuable courses may well-exceed $500. I understand from the Labour Minister yesterday in this house that, these credits are to be use to pay the net value of courses that are heavily funded.  Will there be a sufficient and robust list of approved courses for individuals to choose from that can be covered by the $500? While I acknowledge that self-development and upgrading must be rooted in personal self-interest, and that for some no amount is really enough, we must also acknowledge the cost-of-living issues that many Singaporeans face today. Many working individuals will have to make tough decisions on whether to fork out a sum of money to invest in themselves or to save that money or use it for family expenses. I noted from the Finance Minister’s speech that the credits can be accumulated and there will be top-ups to pay for more expensive courses.  I would like to find out how much and how often these top-ups are scheduled to be, since people may be less willing to commit to longer courses if they do not know how much they will end up having to fork out on their own.

There is still the supply of relevant and accreditable courses that the budget did not address.  Are individuals free to choose training providers? Will there be enough relevant courses for people to take?  Will there be job counsellors to guide and advise interested parties when it comes to choosing courses especially the elderly or those re-entering the workforce after some time? Will there be a minimum standard that trainers involved in these courses need to fulfill, an example will be, should these trainers be at least ACTA certified? More clarity should be provided on these questions.

One group of Singaporeans who would benefit from these credits is home-makers. Home-makers may find themselves out of touch with the requirements of their respective work industries after staying at home to look after their young children during their growing up years. Whether they have the confidence or ability to move back into the work force may depend on whether they can get adequate training to refresh and upgrade their skills.  Apart from going back to the work force after their children grow up, home-makers can also make use of these credits to pick up skills that allow them to work from home or employed in companies that adopt flexible work practices.  This is so that home-makers can take care of the family and work at the same time.  However, this group of Singaporeans would also not have as much cash on hand given their lack of income, and often their families would already be finding it a challenge to manage on a single-income. Can family members transfer credits to one another since there is no expiry on credits, and it could benefit the family as well?

Skills Future Earn and Learn Programme

Madam, I move on to the next part of my speech that is about internships enhancements.  In my speech on the Motion on ASPIRE, I’ve shared my internship experience, listed down the advantages and pointed out the challenges of implementing internships and apprenticeship programmes.

To recap, there should be consistency in terms of what students can expect to gain during their internships.  There should be some formal programme structure that ensures beneficial outcomes for both students and employers. There are situations where employers see interns as cheap labour and are herded from one department to another to fill gaps in any manpower crunches without any focus on their development.  While we don’t want to over-formalise practical training either, there must be some guidelines to ensure that students do gain from their experiences, are monitored and get significant work-ready skills. This should include having company orientations, regular mentorship and evaluation sessions and of course clearer goals, timelines and outcomes (including relevant certification) for both students and the company.

There must be adequate consultation between education institutions and companies from identified industries to ensure that programmes help students further develop their skills and learning, while in line with the needs and expectations of industries today.

Enhanced subsidies for mid-career Singaporeans

Lastly, subsidies of up to 90% will be handed out to all Singaporeans aged 40 and above.  These training courses have to be funded by MOE and WDA, that is to say if one chooses a course not funded by MOE and WDA, they will not be eligible for subsidies. There are well developed professional courses in the market that has been proven to be useful. It will be good if the range of courses can be expanded so that every Singaporean can be given a choice to consider and benefit from the subsidies.

The government should also look at lowering the eligible age to facilitate mid-career changes which was the objective of this program.  By doing so, Singaporeans have the opportunity to build up their expertise earlier and thus better contribute to the workforce.  This is especially useful for women who become mothers and wish to change their career paths in order to spend more time with their children.  [i]The median age of mothers at first birth was about 30.4 and 30.5 in 2012 and 2013 respectively. So it would be reasonable to lower the eligible age to 35 so that the scheme can benefit more Singaporeans who would be looking to make that mid-career shift.

Conclusion

In conclusion, I am glad that we are investing in our people through lifelong learning.  Regardless of background, age, income or chosen industry, they should all be given the chance to enhance their skills and experiences to empower them to take charge of their own career paths and direction in life. As the government invests more in this area, there is much we can do to facilitate how the culture of self-development is developed successfully. Investment in people will pay off, especially when paired with the right resources, a long-term strategy and commitment that both the government and its people must work towards to.