Government to clamp down on errant bosses

The Government has tightened its policies on the hiring of foreign manpower, with key changes to the Employment of Foreign Manpower Act passed in Parliament yesterday.

The changes will give the Ministry of Manpower (MOM) more teeth to act against errant employers and foreign workers, as well as syndicates that have set up increasingly complex sham operations to illegally bring in and supply foreign workers.

The amendments will come into effect by the end of the year.

Acting Manpower Minister Tan Chuan-Jin noted that, while most employers are responsible, there are some who seek to get around the work- pass framework for foreigners.

He said: "The changes will ensure that employers pay the true costs of hiring foreign workers and create a level playing field for law-abiding employers. They also seek to stem the worst abuses against foreign workers."

Mr Tan noted that some errant employers who have been debarred resort to applying for work passes under other people's names, in order to continue using foreign manpower.

To prevent the use of such tactics, associates of the debarred employer may be debarred as well when the changes kick in.

Employers' scope of responsibilities may also be broadened, if necessary, with the imposing of pre- and post-employment conditions so that foreign workers can be better protected.

For example, employers might have to ensure that the In-Principle Approval letter stating employment terms is sent to a foreign worker in his native language before he leaves his country.

This reduces reliance on unscrupulous middlemen.

MOM will also have greater powers to investigate cases, including the power to enter and inspect premises by force, such as when there is reasonable belief of a breach of the manpower regulations.

One key change will also make a distinction between administrative infringements and criminal offences when breaches occur. Breaches are currently classified as criminal.

The change means that there would be fewer cases heard in court, so offences can be dealt with faster.

Still, steps will be taken to ensure that penalties for administrative infringements are severe and in line with the offences committed.

Commissioners for Foreign Manpower will look into administrative infringements. They can impose administrative financial penalties of up to S$20,000, and debar employers from applying for and renewing work passes.

Easing in the cards as Fed meets

WASHINGTON: The Federal Reserve's policy board is expected to embark on fresh monetary easing measures as it meets Wednesday and Thursday to address a weak US economy and stagnant job creation.

But just how far the Federal Open Market committee will go, and what kind of impact it can have, is unclear, analysts said.

After three years trying to get the economy humming following a deep recession, problems outside the Fed's hands, like recession in the eurozone and China's sharp slowdown, are damping its impact.

Also casting dark shadows are the tight presidential election battle and the political stalemate over debt and fiscal policy, which businesses cite as worrisome sources of instability.

Even so, with the newest data on the economy mostly discouraging, and Fed chairman Ben Bernanke strongly in favor of new action, the FOMC is likely to deliver some type of medicine aimed at pushing interest rates lower to encourage borrowing and investment.

That could come in the form of extending its forecast for the period it expects to keep its benchmark rate at the current near-zero level -- essentially a promise that it will not raise rates over the next three years or so.

Or it could come with a third "QE" quantitative easing bond buying program, which aims at lowering long-term rates.

"Recent public comments, as well as the minutes from the last Fed meeting, indicated that if the economy did not begin to meaningfully improve policymakers would be inclined to act more aggressively," said Joseph LaVorgna of Deutsche Bank.

"Last week's data was not encouraging in this regard... which is why we now anticipate quantitative easing measures."

Bernanke's baring of deep worries about the eight-percent-plus level of unemployment in an August 31 speech was the strongest signal so far of the likelihood of the Fed taking new action.

"Growth in recent quarters has been tepid, and so, not surprisingly, we have seen no net improvement in the unemployment rate since January," he said.

"The stagnation of the labor market in particular is a grave concern not only because of the enormous suffering and waste of human talent it entails, but also because persistently high levels of unemployment will wreak structural damage on our economy that could last for many years."

Bernanke's view earned support on Friday when national data for August showed a poor level of jobs created during the month -- only 96,000 -- and also that some 368,000 people gave up searching for jobs and left the labor force.

The dropout level, rather than a surge in people getting jobs, helped push the unemployment rate lower to a deceptive 8.1 percent.

More indicative was that the employment-to-population ratio fell to 58.3 percent, compared with 65 percent-plus before the 2008-2009 recession.

Such numbers shore up Bernanke's view within the 10-member FOMC, which has been divided over whether to take more action in recent months.

With critics saying the Fed's low interest rates are not turning into lending by banks or job-creating investments by companies, Bernanke gave a stiff defense of the two previous QE programs in his August 31 speech.

Such actions "may have raised the level of output by almost three percent and increased private payroll employment by more than two million jobs, relative to what otherwise would have occurred," he argued.

Still, there were doubts about how far the FOMC is ready to go this week, or whether they might just put off the decision until later in the year.

"Markets are seemingly positioned for QE3, yet the latest Fedspeak and recent macroeconomic data do not provide obvious support for additional easing," said economists at BBVA Research.

"The previous FOMC meeting minutes highlighted the intense internal policy debate among committee members, proving that there is still a significant divide in ideology."

John Ryding and Conrad DeQuadros at RDQ Economics said Fed action, whether launching QE3 or extending their commitment to zero-level interest rates into 2015, "will do little, if anything, to boost growth."

"There is no shortage of liquidity in the banking system with reserves at almost $1.5 trillion. There is, however, considerable uncertainty on the outlook for the taxation of labor and capital in 2013, which we think is the major challenge for the economy over the remainder of this year."

MOE abolishes secondary school banding system and cuts awards

SINGAPORE: The Education Ministry has abolished the secondary school banding system, as part of efforts to ensure that "every school is a good school".

The banding system, which was introduced in 2004, categorises secondary schools into nine bands.

Band one consists of top schools, with a cut-off point of below 11 for the average aggregate grades in the GCE O' Level examination.

The Ministry of Education will also reduce the number of awards it gives out to schools.

It will also remove the Masterplan of Awards from 2014.

Instead, it will focus on recognising best practices in niche areas, such as teaching and learning, as well as students' all-round development.

Education Minister Heng Swee Keat announced the changes at the ministry's annual Work Plan Seminar on Wednesday.

Singapore's productivity rates in 2012 not very positive: Tan Chuan-Jin

SINGAPORE: Singapore's productivity rates in 2012 have not been very positive, said Acting Manpower Minister Tan Chuan-Jin.

Employment has grown much faster than GDP over the same period.

Replying to a question in Parliament on Tuesday, he explained that Singapore's target of two to three per cent productivity growth per annum is a stretched target, as most developed economies achieve an average of one to two per cent productivity growth per annum.

But if Singapore is able to hit the upper end of this range over the long term, the country will be in a good position to achieve higher wages for all Singaporeans and remain competitive at the same time.

Hence, there is a need to press on with efforts to restructure the economy.

Mr Tan said companies need to reduce their reliance on manpower, and workers need to continue upgrading themselves so that they can take on the higher value-added jobs created.

Singapore must also persist in the gradual tightening of foreign worker policy.

Mr Tan said: "While we focus on implementing the various sectoral productivity strategies well, we are also mindful not to lose sight of the reason why we are embarking on this productivity drive in the first place.

"At the end of the day, what we want to achieve is better incomes and better living standards for all Singaporeans in a sustainable way. And we believe that increasing productivity is the right way to do so, without jeopardising Singapore's competitiveness and our workers' livelihood.

"Data has shown that this is the right strategy, as the real wages of our workers have risen broadly in line with productivity improvements over the long term."

Mr Tan also said that Singapore has committed significant resources to the productivity drive, and there are numerous government support schemes available for companies to tap on.

One common feedback from companies is that because of the large number of productivity schemes available, it is not easy for them to navigate through all of them and determine which scheme suits them best.

"This is a challenge that we need to address," said Mr Tan. "The best designed schemes with the best intentions are not very helpful if no one makes use of them."

Therefore, the government is working to improve the accessibility of productivity schemes so that companies can tap on the help more effectively.

While many programmes are still in their initial phases, Mr Tan said take-up rates have been encouraging.

He shared the example of a new iSPRINT scheme which helped 1,800 SMEs invest in info-comm technology such as accounting and payroll systems.

CPF top-ups to include in-laws

SINGAPORE - Acting Manpower Minister Tan Chuan-Jin said today in Parliament that Singaporeans will be able to make cash or CPF to-ups to the accounts of parents-in-law and grandparents-in-law.

In moving the second reading of changes to the CPF Act, Minister Tan said the changes to the Minimum Sum Topping-Up Scheme (MTSU) come in response to feedback to an operational experience of the CPF Board.

The MTSU, which currently covers parents, grandparents, spouse and siblings, was introduced to help Singaporeans contribute to the retirement savings of their loved ones.

They can do so by topping up their CPF Special Account (SA) or Retirement Account (RA).

From January 1, 2013, this will now be extended to include parents-in-law and grandparents-in-law.

Other changes to CPF rules include, simplifying the channels for making top-ups to a member's own SA and RA and introducing a minimum age of 16 when making CPF nominations.

The Ministry also refined the current housing refund policy for CPF funds.

Minister Tan said that the new policy will ensure that CPF housing refunds are consistent with the amounts contributed by each co-owner to the property.

At the same time, it will not require older members to retain in their CPF more refunds than necessary.

Currently, members who sell their property before age 55 are required to refund into their CPF account the principal amount that they withdrew for the property, including the prevailing Ordinary Account (OA) interest that would have accrued on this amount, or P+I in short.

At age 55, a member is required to set aside the Minimum Sum (MS) from his existing CPF balances, and he may withdraw his CPF savings in excess of the MS after having also set aside the required amount in his Medisave Account for his healthcare needs.

So when a member sells his property after age 55, only the amount needed to bring the member up to his MS must be refunded.

"In other words, for a member who sells his property after age 55, he will refund his MS shortfall or his P+I, whichever is lower. Remaining proceeds from the sale of his property is received in cash," outlined Minister Tan.

He pointed out that while the current refund rules for members over 55 avoid collection of housing refunds in excess of MS, there may be certain scenarios involving more than one co-owner, where the refunds required of the co-owners may not match the amount of CPF each co-owner used to pay for that property.

When this arises, co-owners can decide to distribute the cash proceeds among themselves such that the total of the cash proceeds and CPF refunds for each co-owner matches the amount that each co-owner had contributed towards payment of the property.

"However, where the co-owners are no longer on good terms, the distribution of cash proceeds becomes more contentious and the co-owners may not always be willing to consider the amount that the other party has contributed towards the property," he said.

He added that in cases where the property is sold at a loss and there may not be any cash proceeds for distribution, the current housing refund requirements may create some unhappiness among members.

In addressing this issue, all members, regardless of their age, will be required to refund their P+I.

This refinement will ensure co-owners receive CPF refunds that are commensurate with their usage of CPF savings for the property.

Where the P+I refund exceeds the MS shortfall for members aged 55 and above, the refunded amount will first be used to set aside their cohort Minimum Sum in their RA and the required Medisave amount in their MA, while the excess can be withdrawn.

"This is no different from the existing requirement that applies to all members past age 55 who wish to withdraw their OA and SA savings in excess of the MS," he said.

All changes will take effect from January 1, 2013.

China, Singapore should cooperate: China's vice-premier Li

CHINA - China and Singapore should seize the opportunity to boost cooperation in areas such as emerging industries and innovation management, Vice-Premier Li Keqiang said on Friday.

Li made the remarks at a meeting with Singaporean Prime Minister Lee Hsien Loong, who concluded a six-day visit to China on Friday.

China is willing to enhance political mutual trust with Singapore, in order to understand and respect each other's core interests and major concerns, and strengthen communication and coordination on important international and regional issues, Li said.

He also called for more pragmatic local cooperation between Singapore and China, especially with China's Midwest and Northeast regions.

The two sides signed two cooperation agreements between Singapore and China's Northeastern Jilin province on Thursday.

Noting that Singapore has always viewed China's development as an opportunity to develop itself and the region, Lee said that Singapore hopes that China succeeds and wants to share the dividends of China's continuous prosperity.

Lee also said Singapore is willing to explore more ways to cooperate with China.

"China's growth story is impressive and has benefited the entire region, overshadowing the recent friction created by the South China Sea issue," said Satish Bakhda, Head of Operations at Rikvin, a major employment agency in Singapore.

"The Singapore government, with all its ASEAN partners, is working overtime to resolve these issues, to get our growth story back on track, which is a good sign," Bakhda said.

Political trust between China and Singapore, which is a major member of the Association of Southeast Asian Nations, will help to reduce the doubts of other ASEAN members about China and ease tensions in the South China Sea, said a commentary on the website of the China Review News Agency based in Hong Kong.

The ASEAN should adopt a "neutral and forward-looking" position on South China Sea disputes and encourage parties involved to solve the issue through peaceful means, Lee said on Thursday when addressing senior officials at the Party School of the Central Committee of the Communist Party of China.

"First, it's in Singapore's interests to see international disputes settled in accordance with international laws and in particular, the United Nations Convention on the Law of the Sea. Second, navigational freedom is another fundamental interest since trade and waterways are a lifeline for Singapore."

Lee began his third visit to China since taking office in 2004 in Chengdu, Sichuan province, on Sunday afternoon, and continued to Tianjin.

Trade between Singapore and China surged after the establishment of diplomatic ties in 1990.

Singapore is China's third-largest trading partner among ASEAN member states. Trade in 2011 reached US$63.48 billion (S$78.5 billion), up 11.2 per cent.

The Singapore-Sichuan High-tech Innovation Park, Tianjin Eco-city, Suzhou Industrial Park and the Raffles City mixed development project by CapitaLand in Sichuan province are some of the recent flagship projects.

Also, a giant panda couple, Kai Kai and Jia Jia, arrived in Singapore on Thursday on a 10-year loan.

SIA rolls out panda collectibles to raise funds for special-needs children

SINGAPORE: Singapore, it seems, has been hit by a wave of panda craze since Kai Kai and Jia Jia arrived from China on Thursday.

Collectible panda plush toys, which resemble the two pandas, created a snaking queue at Plaza Singapura. The shopping mall was one of six locations island-wide where the toys were being sold.

Singapore Airlines is raising funds for children with special needs through the sale of the toys. Each panda plush toy costs S$20.

All funds will be donated to the Community Chest.

Each member of the public may acquire a maximum of four panda toys, while stocks last.

Community Chest General Manager Tan Bee Heong said funding requirements for children with special needs have increased by 47 per cent compared to last year, so it was timely to raise funds for the 36 programmes supporting children with special needs under the care of Community Chest.

Community Chest aims to raise S$72.3 million this year to help support 82 charities in running 219 critical social service programmes.

The funds raised will benefit over 300,000 people, including children with special needs, youths-at-risk, persons with disabilities, lonely and frail elderly and families-in-need.