Job security major concern of Singaporeans

THE global economic crisis and DBS Bank’s retrenchment of 900 workers have left sales executive Long Foo Chye fretting over job security.

The 44-year-old, who was at a public dialogue yesterday, said:“The Government has been saying to companies, ‘Don’t retrench, retrain instead.’ Yet DBS, a very competitive private company which no one can say doesn’t represent Singapore, is laying off its staff.”

Retiree Letchimi Doraisamy, 62, in sharing her sentiments, expressed worries that other companies will follow in DBS’ footsteps. And she feared that they may even retrench older workers, thus negating the

Government’s efforts to encourage the hiring of elderly people like herself. Their concern about job security was one of three issues that dominated a two-hour dialogue organised by the Ministry of Finance (MOF) and Reach, the Government’s feedback arm, to gather responses and suggestions for Budget 2009 due in February.

The other issues are the rising cost of living and doing business here.

Senior Parliamentary Secretary Amy Khor, Reach chairman, and Mr Ng Wai Choong, MOF’s deputy secretary (policy), moderated the meeting with about 50 people, mainly professionals, businessmen and retirees.

Responding to Mr Long and Madam Letchimi, Dr Khor pointed out that DBS is a commercial entity and that slightly over half of the 900 retrenched are from Singapore, with the rest being employees in Hong Kong.

On easing the cost of living, many suggested cutting the 7 per cent Goods and Services Tax, or giving rebates and direct financial aid to the lower-income groups.

Some also wanted the Government to stimulate the economy by bringing back some public-sector projects that were deferred last year.

To lower business costs, some asked the Government to lower corporate taxes, rent and electricity tariffs.

Mr Colin Goh, 47, who is in accounting, said: “Many SMEs are facing cashflow problems. It’s difficult to get credit. Perhaps the Government can consider giving SMEs a temporary reprieve on costs like rental or power bills.”

Later, Dr Khor told The Straits Times the mood this year was more sombre. “In
the past, the participants required a lot of prodding to get them to ask questions or give their views. This time, many came prepared to give their suggestions.”

There were also some out-of-the box ideas. Mr Malaiya Maran, 45, a managing consultant, said the Government should introduce measures in the Budget to grow the film industry.

“Now that we have Gong Li in our midst, this industry can perhaps take on a new light,” he said, referring to the Chinese actress, 42, becoming a Singapore citizen last Saturday.

Last night’s session was the second of five pre-Budget dialogue sessions to be held during the ongoing public consultation that will end in January.

The first was a closed-door session with 30 business leaders.

Hints on the Budget have been given lately by various ministers, including Finance Minister Tharman Shanmugaratnam. He told businessmen that companies will get help with their costs and cash flow to stay “strong and competitive”, while households hit by job losses will receive support.

He also said that as the downturn is unlikely to be short-lived, the Government’s Budget initiatives will aim at providing help over a few years, rather than providing “a quick stimulus” to the economy.

- The Straits Times