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Jobs and assistance statistics: More or less?

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by Leong Sze Hian

I refer to the article “Labour chief hopes for steady wage increases over next decade” (Today, Dec 3). and the report (“Fewer need assistance from Comcare as economy improves“, by Sara Grosse, 05:55 AM Nov 16, 2010, Today).

According to the latter article, the number of Comcare applicants dropped by 11 per cent in the first nine months of this year, compared to the same period last year.

What is conspicuously missing in the above mentioned news report, which is a mirror of the earlier report by the same author “ComCare applications decrease this year“, (by Sara Grosse, Posted: 15 November 2010 1613 hrs, Channel News Asia), is the sentence, “The maximum duration of assistance given under this fund is three months”.

With regard to the example given of a receipient, Mdm Lee who is 78 years old and stopped working six years ago as a cleaner, and earned about $400 to $500 a month, receiving $360 a month to pay for her rental fee, bills and food, why is it that the maximum duration of assistance given under the fund is three months?

In this connection, according to the article “S’pore’s dirty secret” (Straits Times, 28 July 2007),  in the last 10 years, the starting salaries of all occupational groups rose – except cleaners and labourers. Their median monthly starting pay fell 30 per cent between 1996 and 2006 – from $860 to $600.

The article also revealed that office cleaners and airport loaders have monthly starting salaries of only $500 and $550 respectively.

Three years ago, the Job Recreation Programme (JRP) was set up to boost the productivity and pay of low-skilled jobs in several sectors, from cleaning to construction.

Now, after three years, the latest available data indicate that the wages of the job category, cleaners, labourers and general workers, continue to linger at $650, the highest unemployment rate was in this category, and productivity also fell in the last three years.

Hence, it may now be poignant to revisit the labour chief’s remarks in the subject article three years ago:-

“In an interview last year, Mr Lim Swee Say, who is now the labour chief, said he suspected the easy entry of cheap foreign workers in some sectors has reduced the incentive for employers to improve work processes and raise productivity. It is easier and cheaper to hire cheap, than to invest in better work processes”.

But at the same time, Mr Lim “made clear he was not opposed to foreign workers, saying that they contributed to the economy”.

Instead, Mr Lim wants Singapore to focus on raising productivity. “When their productivity goes up, their pay will also go up without eroding business competitiveness,” he was quoted as saying in the article.

In the past three years, Foreign workers, particularly lower-skilled workers, have increased to record highs. Over the same period, productivity fell.

Mr Lim had called the solutions tried out by other countries – from a minimum wage policy and closing the door on low-skilled foreign workers to paying foreign local workers the same wages ‘easy solutions’ that do not necessarily work.

But the stark fact and reality remains that none of the solutions tried by the labour movement has worked at all.

Job seekers on the rise

With regard to “Some 18,000 new job seekers have registered for employment assistance in the first nine months of this year, down from 31,000 last year”, according to the Joint Press Release by the CDCs for the second quarter, on 17 August, 2010, the number of new job seekers registered for employment assistance was 5,600 and 6,400 for the second and first quarter, respectively.

Therefore, the number of new job seekers for the third quarter was 6,000 (18,000 – 5,600 – 6,400).

With media reports saying that the job market is bursting at its seams, and the economy on track to being the fastest growing economy in the world at 15 per cent GDP growth for this year, why is it that the number of new job seekers increased by seven per cent from 5,600 (last quarter) to 6,000 this quarter?

In the last three months, more than 3,200 job seekers were placed into employment, and since there were 6,000 new job seekers last quarter, the placement ratio of placed into employment to job seekers was 53 per cent (3,200 divided by 6,000).

Similarly, for the second quarter, the placement ratio was 71 per cent (4,000 divided by 5,600).

So, why has the placement ratio dropped from 71 to 53 per cent for the last quarter?

Since the job market is booming, shouldn’t the placement ratio be increasing instead?

Also, what this means is that since new job seekers increased by seven per cent, when coupled with the placement ratio’s decline from 71 to 53 per cent, for the last quarter, does it mean that actually more job seekers were unable to find employment?

Social assistance applications down only marginally – despite record growth

With regard to the CDC career centers referred more than 1,600 job seekers for training, a three per cent drop compared to the same period last year, this statistic does not seem to gel with what the CDCs have always been saying in the past, such as in its second quarter joint press release, that partly due to the drop in the number of job seekers registered, with the improving economic conditions and wider employment opportunities – likewise, for the second quarter, CDCs referred about 1,100 job seekers for training, a 46 per cent decrease compared to the same period last year.

So, why is it that training referrals have increased by 45 per cent from 1,100 to 1,600 in the last quarter?

In this connection, I understand that job seekers who go for training are not counted in the unemployment statistics.

As to the number of people who sought social assistance has dropped by 10 per cent to some 10,000, in the July to September period from the corresponding period last year, why is it that whilst new job seekers are down significantly from 31,000 last year to 18,000 for the first nine months of this year, that there are still 10,000 or more new households applying for social assistance every quarter this year?

Singapore's social assistance - Shelter from the storm?

In fact, year-to-date, there were 34,500 (first quarter 14, 100 + 10,400 second quarter + 10,000 third quarter) new households that applied for social assistance.

I find it rather alarming that despite the economic boom, the number of new social assistance applications is only about 1,000 (10 per cent) less than the same quarter last year, which was in the midst of Singapore’s worse recession.

If we add the new households applications to old households that applied in the past, how many households in total have applied for assistance?

Since the CDCs received more than 48,000 and about 36,300 applications for social assistance in 2009 and 2008, respectively, at the current year’s application rate, the total for the year may still be about 44,000, which is about 21 per cent more than the pre-recession figure of 36,300 in 2008, and just eight per cent less than last year which was the worst recession in Singapore.

Consequently, the CDC statistics do not seem to be in line with the robust economic situation in Singapore this year.

Since the number of households’ applications approved in 2009 was 33,000. it means that the approval success rate was 69 per cent. What is the approval success rate so far, for this year?

Finally, I would like to suggest that the statistics be tracked and revealed as to how many of those who apply for assistance are working, so that we have some indication as to how many households may not be earning enough income to support their families.

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Dr Chee Soon Juan criticises Ho Ching’s vision for 8-10 million population

SDP chief Dr Chee Soon Juan criticised Ho Ching’s claim that Singapore could support a population of 8 to 10 million through effective city planning. In a video message, he expressed scepticism about the push for population growth, citing adverse effects like rising living costs and mental health issues. Dr Chee argued that smaller populations can thrive, referencing Scandinavian countries that excelled internationally and produced Nobel laureates.

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Dr Chee Soon Juan, Secretary-General of the Singapore Democratic Party (SDP), slammed Senior Minister Lee Hsien Loong’s spouse, Ho Ching, for her assertion that Singapore could accommodate 8 to 10 million people with proper city planning and land reclamation.

In a video message published on 1 October, Dr Chee expressed strong scepticism regarding the narrative of increasing the population, highlighting that the current surge past the 6 million mark had been largely driven by the influx of foreigners, which led to several adverse consequences.

He further highlighted that smaller populations were not inherently negative, drawing examples from some Scandinavian countries that had flourished on the international stage despite their smaller populations and had even produced Nobel Prize laureates.

Ho Ching expressed confidence that with proper city planning, Singapore could accommodate up to 8-10 million people

Last Friday (27 September), in a Facebook post, Madam Ho, who was also the former CEO of Temasek Holdings, highlighted the growing demand for caregivers as the population aged and the need for workers to sustain sectors like construction and engineering, particularly as the workforce shrank due to lower birth rates.

“As we have less children, we need more people from elsewhere to join us to keep this city functioning, from repairing train tracks through the night to serving patients in hospitals through the night. ”

Dr Chee Highlights Risks of Population Growth

In response, Dr Chee recalled his experience of being reprimanded by Minister for Foreign Affairs Dr Vivian Balakrishnan during the last General Election for raising concerns about the implications of a rapidly growing population.

He questioned why Madam Ho, who shared similar views, had not faced the same scrutiny.

In his video, Dr Chee articulated several concerns regarding the proposed increase in population, highlighting the potential negative impacts, including increased demand for food, housing, and transportation, which would result in a significant rise in living costs.

With a larger population, Dr Chee pointed out that more flats, roads, hospitals, and public transportation would need to be constructed, which would ultimately require higher taxes and fees to maintain the necessary infrastructure.

The SDP leader emphasized that an influx of residents would intensify competition for jobs, exerting downward pressure on wages and potentially leading to higher rates of unemployment and underemployment.

Dr Chee further expressed concern over the environmental degradation that would accompany population growth, citing the recent clearing of forests for housing and industrial developments, including Tengah and Kranji Forests.

Dr Chee questioned the ability of existing infrastructure to cope with a growing population, referencing the persistent issues with the MRT system, including breakdowns and safety hazards.

He highlighted the toll that congestion and overpopulation take on the mental health of Singaporeans, noting a rise in reported mental health challenges.

“All this while the ministers live in secluded and luxurious bunglows and villas, far from the madding crowd which we are subjected to every single day.”

“So, when Ho Ching says that we can accommodate up to 10 million people, I’d like to ask her, where and what type of house she lives in?”

Dr Chee Argues for Innovative Economic Solutions Over Traditional Urban Expansion

Regarding the ruling government’s persistent push to increase Singapore’s population to what he considered “unhealthy levels,” Dr Chee suggested that the PAP lacked viable alternatives for fostering economic growth.

He implied that the government resorted to traditional methods of expansion, such as construction and urban development.

He highlighted that the government is fixated on physically expanding the city—“digging, pouring concrete, and erecting structures”—to sustain GDP growth.

This approach, he argued, creates an illusion that Singapore remains a productive economic hub, despite potential downsides.

Dr Chee Advocates for the Value of Smaller Populations: Cites Political Freedom as Key to Innovation and Success

Dr Chee further contended that a smaller population did not necessarily hinder a nation’s success.

He cited several Scandinavian countries and Taiwan, emphasising their global brands and innovations despite their relatively small populations.

Dr Chee connected the success of these nations to their political freedoms, arguing that the ability to think and express oneself freely fostered innovation and societal progress.

He contrasted this with Singapore, where he claimed that the government controlled media and stifled freedom of expression.

He criticised the ruling People’s Action Party (PAP) for its centralised control and for limiting the potential of Singaporeans. Dr Chee used the metaphor of a “grotesque monkey” clinging to the nation, suggesting that the PAP hindered progress and growth.

Dr Chee emphasised that the quality of a population—its talent, energy, and potential—was far more important than its size.

He suggested that Singapore possessed the necessary attributes to succeed on a global scale but was held back by the current political landscape.

He urged Singaporeans to engage in critical thinking rather than passively accepting government narratives.

Dr Chee advocated for a more mature and sophisticated approach to governance and civic engagement, encouraging citizens to take an active role in shaping their society.

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Court Cases

PSP seeks greater clarity from AGC on prosecutorial decisions against ex-minister Iswaran

Following former Transport Minister Iswaran’s sentencing to 12 months in jail on 3 October, the Progress Singapore Party (PSP) issued a statement expressing its anticipation for clarity from the Attorney-General’s Chambers regarding prosecutorial decisions, given the high public interest. On 24 September, the AGC cited litigation risks in amending Iswaran’s charges but affirmed the case’s merit.

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SINGAPORE: Following the sentencing of former Transport Minister Iswaran to 12 months in jail by Singapore’s court, the alternative party Progress Singapore Party (PSP) has issued a statement expressing concern over the ruling.

In a statement released at noon on 3 October, Ms Hazel Poa, Secretary-General of the PSP, noted that Mr Iswaran, who is also a former Member of Parliament from the ruling People’s Action Party (PAP), was sentenced for four counts of obtaining gifts as a public servant under Section 165 of the Penal Code 1871, and one count of obstructing justice under Section 204A of the same code.

Ms Poa, who is also a Non-Constituency Member of Parliament, stated that, given the high level of public interest in this case, the PSP looks forward to receiving greater clarity from the Attorney-General’s Chambers (AGC) regarding its prosecutorial decisions at the appropriate juncture.

On the morning of 3 October, the court granted Iswaran’s request to surrender himself at 4 p.m. on 7 October to begin serving his sentence.

However, his lead lawyer, Davinder Singh, indicated that the start of the sentence could be delayed depending on “instructions,” hinting at the possibility of an appeal.

Iswaran admitted to accepting valuable gifts from prominent businessmen, including Ong Beng Seng, chairman of Singapore GP, and David Lum Kok Seng, managing director of Lum Chang Holdings, while holding public office.

These gifts, which included private flights and other benefits, were worth over S$400,000 in total.

The 35 charges against Iswaran were amended by the prosecution on 24 September from corruption to lesser offences under Section 165, which pertains to public servants receiving valuable items in connection with their official duties.

The court also took into account Iswaran’s admission of obstructing the course of justice, for which he had repaid over S$5,000 to Singapore GP for a business-class flight he had taken at Ong’s expense.

The remaining 30 charges were taken into account during sentencing.

Iswaran had originally faced 35 charges, including two counts of corruption.

The charges were amended from two counts of corruption under the Prevention of Corruption Act (PCA) to offences under Section 165.

This section, unlike Section 8 of the PCA, does not include a presumption of corruption, which would have placed the burden on the accused to prove the gifts were not given as inducements.

The AGC in an explanation cited substantial evidentiary risks in proving the original corruption charges, which involved  Ong Beng Seng and Lum Kok Seng.

The AGC noted that proving the original corruption charges under PCA would have been difficult due to the involvement of both Iswaran and Ong as primary parties.

Both would have had to implicate themselves to establish corrupt intent.

The AGC explained that “there are two primary parties to the transactions, and both would have an interest in denying corruption in the transactions.” This made securing a conviction for corruption highly uncertain.

In light of these risks, the AGC amended the charges to offenses under Section 165 of the Penal Code, which carries a lower evidentiary threshold and a reduced maximum sentence of two years’ imprisonment.

According to AGC, the amendment was made to ensure a fair and just outcome while considering public interest.

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