‘Workers’, ‘work’ came up 364 times on Day 1 of Budget debate. Here’s what went on.
“Workers” and “work” were the most frequently cited words — coming up 364 times, or once per minute on average. These were followed by "support", “help”, “companies” and "training", which were mentioned about 80 to 90 times each.
SINGAPORE — The plight of Singaporean workers was very much on the minds of Members of Parliament (MPs) during the first day of the Budget debate on Tuesday (Feb 26), as many called for greater support for this group among other issues such as the Merdeka Generation Package, Goods and Services Tax (GST) and the increase in diesel tax.
Over six hours, a total of 27 MPs spoke on the Budget, which was delivered by Finance Minister Heng Swee Keat last week.
“Workers” and “work” were the most frequently cited words — coming up 364 times, or once per minute on average.
These were followed by "support", “help”, “companies” and "training", which were mentioned about 80 to 90 times each.
WHY THE BUDGET DEBATE MATTERS
The Budget debate is important to ensure public accountability. The Government, which is entrusted with billions of dollars of public funds, has to answer to Parliament on how these funds are used.
During Parliamentary sittings, especially during Budget debates, MPs may call the Government to account by raising issues and questions relating to public policies, programmes and financial management.
WHAT MPS RAISED:
1. GREATER SUPPORT FOR LOW-WAGE, OLDER WORKERS
Apart from stressing on the importance of retraining and reskilling workers, labour MPs also offered new ideas to give workers — especially low-wage outsourced labour — better support.
Pasir Ris-Punggol GRC MP Zainal Sapari called on building owners or service buyers to provide designated rest areas for outsourced workers, with government agencies taking the lead. He also called out bad business practices, urging service providers to not “gamble to their workers’ wages and welfare and hope that the contract they won through price undercutting will bring them profit”.
Several MPs also spoke up for better welfare for older workers. Workers’ Party Non-Constituency MP (NCMP) Daniel Goh called for the retirement age to be removed, and the re-employment age raised to 70 years old. This will enable seniors to continue working as long as they can and want. The Central Provident Funds (CPF) payout eligibility age should be lowered to 60 years old and members should be allowed to make partial withdrawals if they are not able to work for a period of time, Assoc Prof Goh said.
To better help gig economy workers, Ang Mo Kio GRC MP Ang Hin Kee suggested that prolonged medical leave insurance coverage should be more pervasive. He also pointed out that freelancers should be given more access and support to courses, as they work in specialised fields where there are few Singapore providers or experts, and have to use their own money for training.
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2. DELAY GST HIKE
West Coast GRC MP Foo Mee Har urged the Government to postpone the “unpopular” GST hike for “as long as possible”. The planned GST hike, from 7 to 9 per cent, is set to take place between 2021 and 2025. Noting that the Government has an “accumulated surplus of about S$18 billion from previous years, there is ample buffer for countercyclical measures should the global economy pose greater downside risks than anticipated”, she said.
Moreover, the Republic has significant funds already set aside in the last two years for future healthcare and infrastructure needs. “This scenario, coupled with the government’s differentiated fiscal strategy of using borrowings to fund major long term infrastructure projects, should offer relief from the need for major tax increases in the near to medium term,” Ms Foo said.
3. MERDEKA GENERATION PACKAGE, HEALTHCARE BENEFITS
Workers' Party (WP) chief Pritam Singh noted that one feedback he received was that some elderly would miss out on the Merdeka Generation Package (MGP) and the Pioneer Generation Package (PGP) “just by virtue of their year of birth”. There were also “quarters who conclude (the MGP) is pungently timed with the election cycle, giving off the odour of an unfair advantage aimed at the electoral prospects” of the People’s Action Party. This was rebutted by Senior Minister of State (Trade and Industry and Education) Chee Hong Tat, who said it was “misleading to link these packages to election cycles”.
Mr Singh suggested for the Government to introduce a basic level of medical benefits through a “universal” and “permanent” senior citizen healthcare package for seniors aged 60 and above. To that end, Assoc Prof Goh called for all Singaporeans who turn 60 years old to be enrolled automatically under the Community Health Assist Scheme and receive outpatient subsidies.
Assoc Prof Goh also proposed “special consideration” for women in the Merdeka Generation. For example, Medisave top-ups should be given to this group. Subsidies for long-term home and centre-based care should also be increased for those who are caregivers.
Citing CPF statistics, Assoc Prof Goh noted that in 2006, for CPF members aged 51 to 54, male members’ Ordinary Account and Special Account balances comprised 63 per cent of the total balances of all members. “This is a substantial gender gap that also suggests Merdeka women earned less from paid work in their lifetime and therefore have less savings beyond the CPF,” he said.
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4. DIESEL TAX
Mr Ang asked for the Government to provide more support to help taxi drivers manage higher operating costs, as owners and drivers of diesel vehicles (such as taxi drivers) would bear the brunt of the increase in diesel tax.
“Unlike other businesses, taxi drivers drive whatever vehicles leased to them and they cannot pass on costs increases as fares can only be set by operators,” said Mr Ang, who is also the executive adviser to the National Taxi Association (NTA).
Similarly, WP NCMP Dennis Tan said that it was likely that the diesel tax increase will mean an increase in transportation expenses, which will translate to higher costs for businesses in Singapore which require transportation. If the Government’s message is that “diesel is bad for the environment,” there should be more electric and hybrid options on the market, for users to switch to non-diesel vehicles, said Mr Tan.
5. TAX REGIME FOR TRAVELLERS
As part of Budget 2019 measures, those travelling abroad may have to pay more GST for their purchases overseas on their return, and they will enjoy duty-free concession on a lower amount of liquor products. The intent was to ensure that the tax system is resilient and sustainable.
East Coast GRC MP Jessica Tan asked if adequate assessment has been done before the move. “Administrative cost, workload for custom officers and inconvenience for travellers will increase. Will the cost of collecting the tax result in net revenue from the taxes collected?” she asked.
More details should be provided on the anticipated amount of tax to be collected following the new measures, she said.
6. TECHNOLOGY
Marine Parade GRC MP Seah Kian Peng warned of the potential pitfalls of an over-reliance on technology. “We need to guard against being technology-centric over being people centric,” he said.
Nominated MP Lim Sun Sun raised a similar point, stating the importance of helping people “navigate their way online” and “make sense of the deluge of information”, which includes online advertisements and digital content. It is also important for workers to be educated on “ethical literacy”, to ensure that they put latest technologies to good and ethical use.
