Tripartism works in Singapore because PAP government is pro-growth and pro-worker: PM Lee

SINGAPORE: Tripartism works in Singapore because the People’s Action Party (PAP) government is pro-growth and pro-worker, said Prime Minister Lee Hsien Loong on Wednesday (Nov 22). 

Speaking at the National Trades Union Congress (NTUC) National Delegates’ Conference, Mr Lee quoted founding Prime Minister Lee Kuan Yew’s words: “The PAP has been a workers’ movement and has always received the support of the workers. A PAP government is a government on the workers’ side.” 

In Singapore, the benefits of progress are shared with all and not just the few, he continued. 

At the national level, the PAP government is focused on two priorities - growing the economy and enabling workers to benefit fully from economic growth, said Mr Lee. 

Every Singaporean can enjoy good housing, healthcare and education, which are all heavily subsidised by the government, he added. 

“We not only create good jobs but educate and train workers to enable them to perform these jobs. And that is why Singaporeans can look forward to better wages, higher standards of living, and brighter opportunities,” said the Prime Minister. 

"With the government leading the country in the right direction, it is much easier for the tripartite partners to work together to create prosperity and to share the fruits of growth."

This has created a “Singapore premium”, he added, where companies and investors are prepared to pay more to be here to take advantage of the country’s harmonious industrial relations and business-friendly environment. 

“They value being in a country that knows where it's heading, where everyone pulls together for the common good, everything works, and life can get better for all,” said Mr Lee. 

Singaporeans also enjoy this premium, he added. 

Workers here do similar jobs as others in the region, but they can earn significantly more than those elsewhere because companies can operate more efficiently here, as well as rely on Singapore’s political stability and competent government, said the Prime Minister. 

This is also why many people are coming to Singapore to work, he continued. 

LEAN AND EFFICIENT GOVERNMENT

The PAP has not only provided Singapore with a good government with sound national policies, but has also done its best to keep the cost of government “as low as possible”, said Mr Lee. 

“Even as standards of living rise, our expectations and aspirations have all gone up. So although incomes have risen steadily year by year, many households still feel the pressures of the cost of living,” he said, adding that the PAP government is very conscious of this. 

The PAP runs a lean and efficient government, since all programmes and projects are ultimately paid for by taxpayers, said Mr Lee. 

By keeping government spending and taxes low, workers can enjoy the fruits of their own labour directly, he added. 

“So I think that in terms of government services, Singaporeans are getting very good value for money. I would even say very cheap," he said.

The government also makes sure that essential public services like public transport, water, electricity and healthcare are cost-effective and run efficiently. 

“Sometimes people argue that since these are public services, they shouldn't aim to earn any profit at all,” he continued. 

“But I think that would be the wrong approach. Because that way, the transport operators and utilities providers would have no pressure to run efficiently.” 

It is better to let them earn a reasonable profit so that they have the resources to reinvest to improve their services, and the incentive to do so, said Mr Lee. 

MEASURES TO EASE COST-OF-LIVING CONCERNS

While this strategy has moderated the cost of living, some households will still need extra help, said the Prime Minister. 

These households received targeted assistance in the form of cash or vouchers, including GST vouchers, U-save rebates, CDC vouchers and public transport vouchers, he said. 

“And we target it, so that those who need help get the most help,” said Mr Lee, noting that this can add up to S$9,000 of direct help this financial year depending on the household. 

“This way is much better than subsidising electricity or water prices across the board, which some other countries do,” he added. 

This is because with across-the-board subsidies, the households benefiting the most are the ones using the most water or electricity, which are not usually needy households, said Mr Lee. 

“But of course in difficult years like this one, when growth is slow, prices are going up faster, when wages are not quite keeping up with prices, then we need to think what more we can do to help Singaporeans cope,” he continued. 

“Can we delay price adjustments to a more favourable time? ... Or should we just proceed with the fee increases, but carefully manage their overall impact on households?”

In a difficult year, the government has to “think extra hard” about increasing fees. If the increases are not essential, they can be delayed for a while longer, or the immediate increase can be moderated, said Mr Lee. 

For example, the government has absorbed two-thirds of what the increase in public transport fares should be this year, which will cost S$300 million. 

“But some price increases will not be avoidable or postponable. And if we just push them off, it doesn’t solve the problem because next year the shortfall will become bigger. Then what do we do?” said the Prime Minister. 

"And in that case, sometimes after thinking about it, we have no choice but to proceed, but we will also definitely be more generous with the targeted support to households.” 

With the additional U-Save rebates rolled out, the number of households with difficulties paying their utility bills has gone down, he noted.

CHANGING NATURE OF JOBS

To stay relevant, the Labour Movement will need to continuously reinvent itself, said the Prime Minister, citing challenges like regional conflicts, climate change and technological advances. 

“There will also be new opportunities, while we experience new and social economic pressures," he added. 

With rapid developments in artificial intelligence and robotics, the nature of jobs will change significantly, affecting blue-collar, white-collar and professional jobs, said Mr Lee. 

Overall, productivity should go up, and Singapore should enjoy higher growth, but the transformation will be so great that individual workers and livelihoods will be affected, he added. 

In a changing world, some think that unions should play a smaller role, said Mr Lee, adding that many employers and governments in other countries do not encourage unions. 

“But from the point of view of the individual worker, when you are displaced from a job and you’re on your own, it’s a very painful experience,” he said, adding that the PAP government rejects the view that unions should play a smaller role. 

“Sooner or later, all the unhappy people will get together, mobilise others and push against the changes ... and not in a productive way.” 

The PAP government and NTUC must continue to work hand in hand to foster transformation and upgrading, broaden its representation and refresh its offerings, said Mr Lee. 

Since Mr Lee Kuan Yew’s time, the PAP worked closely with the unions to understand workers’ needs, champion their interests and pursue policies that improved their lives, he added. 

“On their part, the workers gave PAP a strong political base and popular support,” said the Prime Minister. 

“That was how the PAP government won the people’s mandate in successive elections to implement policies and to build Singapore.”