THE first two quarters of this year are likely to be more challenging as the economy continues to weaken and the labour market soften.
This is why retrenchment may pick up after the Chinese New Year, said Acting Manpower Minister Gan Kim Yong on Saturday.
However, he assured workers that the government has put in place measures to help them.
Retrenchment has been on the rise with a total of 3,773 unionised workers laid off last year. 15,000 unionised workers have been told to go on a shorter work as of 4th January.
The number of Professionals, Managers, Executives and Technicians (PMETs) affected is also on the rise.
It is predicted that there will be over 30,000 retrenchments during this financial crisis.
Mr Gan's comments are just one of the governments' many messages on how they will help people through this period.
- The Straits Times
Jan 10, 2009
Jan 9, 2009
Don't use age to axe staff
WHEN European companies retired older workers early to survive an economic downturn in the 1980s, it changed societal attitudes that made it harder later to get older people back to work.
'Employers got used to the idea that people over 50 weren't needed in the workforce,' said British gerontology professor Sarah Harper.
'And people got used to the idea that you stopped working in your 50s and lived to 90, and someone was going to look after you.'
This episode was highlighted by Minister in the Prime Minister's Office Lim Boon Heng yesterday when he warned employers against using age in the event of cutting back staff.
Mr Lim, who is the minister in charge of ageing issues, said: 'Learning from past experience, it would be a huge policy error if we try to solve the unemployment problem, caused by the downturn, through early retirement.
'Employers should not use age as a factor should they need to reduce headcount to save on wage costs.'
Mr Lim was speaking at the close of a two-day Reinventing Retirement Asia conference.
Prof Harper, the director of the Oxford Institute of Ageing at the University of Oxford, told The Straits Times after Mr Lim's address that only between 2003 and 2006 did the European governments enact anti-discrimination laws that stop employers from forcing older workers out before the retirement age of 65.
Mr Lim, however, told reporters later that the solution for Singapore does not lie in the 'magic bullet of legislation'. It lies in understanding what makes a company retain one employee over another.
He reckoned that older workers could be laid off if they lacked the skills to be productive, rather than because of their age.
Earlier, in his speech before a global audience of 370 policymakers and workforce experts, Mr Lim said the correct policy in this downturn was to enable people to work for as long as they could by giving them access to training and retraining.
He also dwelt at length on the need to strengthen the financial security of seniors.
Apart from equipping all Singaporeans with financial literacy and budgeting skills, policies also need to be designed to encourage people to prepare financially for their future and behave in a way that is 'individually and socially responsible'.
'As human beings, we tend to discount the future and veer towards irrational exuberance, or irrational pessimism. Planning, preparing and taking responsibility should be part of our social DNA.'
Mr Lim suggested that more thought be given to the value of annuities 'as a hedge against longevity'.
Annuities guarantee a constant income for life, but have not been very popular because they yield lower returns than equities.
Mr Lim noted that the Central Provident Fund Life compulsory annuity scheme provides only basic coverage.
Calling for its enhancement for people with higher aspirations on how they want to spend their golden years, he urged insurance companies to offer add-ons or riders to supplement the cover provided.
He also outlined Singapore's efforts to promote a healthy lifestyle as a way to reduce medical costs in old age, taking a leaf from similar workplace programmes in Japan and Finland.
'You have to start younger. It's a habit you have to inculcate at an early age,' he said.
The conference left an impression on younger delegates like labour consultant Ong Sin Tiong, 38, on the need to prepare now for one's future.
'It makes me even more sensitive that I will be living longer and that I have to do some planning.'
For a start, he would take up a suggestion by a conference speaker to keep fit, by walking 10,000 steps a day.
- The Straits Times
'Employers got used to the idea that people over 50 weren't needed in the workforce,' said British gerontology professor Sarah Harper.
'And people got used to the idea that you stopped working in your 50s and lived to 90, and someone was going to look after you.'
This episode was highlighted by Minister in the Prime Minister's Office Lim Boon Heng yesterday when he warned employers against using age in the event of cutting back staff.
Mr Lim, who is the minister in charge of ageing issues, said: 'Learning from past experience, it would be a huge policy error if we try to solve the unemployment problem, caused by the downturn, through early retirement.
'Employers should not use age as a factor should they need to reduce headcount to save on wage costs.'
Mr Lim was speaking at the close of a two-day Reinventing Retirement Asia conference.
Prof Harper, the director of the Oxford Institute of Ageing at the University of Oxford, told The Straits Times after Mr Lim's address that only between 2003 and 2006 did the European governments enact anti-discrimination laws that stop employers from forcing older workers out before the retirement age of 65.
Mr Lim, however, told reporters later that the solution for Singapore does not lie in the 'magic bullet of legislation'. It lies in understanding what makes a company retain one employee over another.
He reckoned that older workers could be laid off if they lacked the skills to be productive, rather than because of their age.
Earlier, in his speech before a global audience of 370 policymakers and workforce experts, Mr Lim said the correct policy in this downturn was to enable people to work for as long as they could by giving them access to training and retraining.
He also dwelt at length on the need to strengthen the financial security of seniors.
Apart from equipping all Singaporeans with financial literacy and budgeting skills, policies also need to be designed to encourage people to prepare financially for their future and behave in a way that is 'individually and socially responsible'.
'As human beings, we tend to discount the future and veer towards irrational exuberance, or irrational pessimism. Planning, preparing and taking responsibility should be part of our social DNA.'
Mr Lim suggested that more thought be given to the value of annuities 'as a hedge against longevity'.
Annuities guarantee a constant income for life, but have not been very popular because they yield lower returns than equities.
Mr Lim noted that the Central Provident Fund Life compulsory annuity scheme provides only basic coverage.
Calling for its enhancement for people with higher aspirations on how they want to spend their golden years, he urged insurance companies to offer add-ons or riders to supplement the cover provided.
He also outlined Singapore's efforts to promote a healthy lifestyle as a way to reduce medical costs in old age, taking a leaf from similar workplace programmes in Japan and Finland.
'You have to start younger. It's a habit you have to inculcate at an early age,' he said.
The conference left an impression on younger delegates like labour consultant Ong Sin Tiong, 38, on the need to prepare now for one's future.
'It makes me even more sensitive that I will be living longer and that I have to do some planning.'
For a start, he would take up a suggestion by a conference speaker to keep fit, by walking 10,000 steps a day.
- The Straits Times
Helping mentally ill find jobs
EVEN in good times, job opportunities do not come easily for those suffering from mental illness, which is often stigmatised in the workplace.
But in the past few months, their job prospects have been hit further. They must compete with the recently retrenched, and companies have fewer jobs to offer.
However, at least three organisations here have made it a point to lend a helping hand. The Singapore Association for Mental Health (SAMH), the Tze Hng Wellness Studio and the Institute of Mental Health (IMH) are working with potential employers to find work for the mentally ill.
Next Monday, IMH will launch its latest rehabilitation programme, under which patients will undergo a three-month training stint at the hospital's Secret Recipe cafe. They will learn food-preparation and customer-service skills, earning $3 an hour. They will be guided by an occupational therapist or therapy assistant.
Hard at work too are staff at Bukit Gombak Group Homes, run by the SAMH. Executive director Rajeswari K. is having a hard time finding firms able to offer large contracts for simple jobs such as product assembly or packing. She fears 'the situation will get bleaker after Chinese New Year'.
Some, like social worker Helen Yong, 47, help to secure short- term or odd jobs. She said: 'They (patients) now have to compete with the elderly and foreigners.'
Staff are even making cold calls to firms to get jobs for their residents - recovering mental patients who are unable to live with their families. They ask the firms to 'give these people a chance' and help to coach job seekers.
- The Straits Times
But in the past few months, their job prospects have been hit further. They must compete with the recently retrenched, and companies have fewer jobs to offer.
However, at least three organisations here have made it a point to lend a helping hand. The Singapore Association for Mental Health (SAMH), the Tze Hng Wellness Studio and the Institute of Mental Health (IMH) are working with potential employers to find work for the mentally ill.
Next Monday, IMH will launch its latest rehabilitation programme, under which patients will undergo a three-month training stint at the hospital's Secret Recipe cafe. They will learn food-preparation and customer-service skills, earning $3 an hour. They will be guided by an occupational therapist or therapy assistant.
Hard at work too are staff at Bukit Gombak Group Homes, run by the SAMH. Executive director Rajeswari K. is having a hard time finding firms able to offer large contracts for simple jobs such as product assembly or packing. She fears 'the situation will get bleaker after Chinese New Year'.
Some, like social worker Helen Yong, 47, help to secure short- term or odd jobs. She said: 'They (patients) now have to compete with the elderly and foreigners.'
Staff are even making cold calls to firms to get jobs for their residents - recovering mental patients who are unable to live with their families. They ask the firms to 'give these people a chance' and help to coach job seekers.
- The Straits Times
Jan 5, 2009
Cut costs to save jobs top priority: NTUC
THE labour movement's top three priorities this year are to cut costs to save jobs, upgrade and retrain workers and sustain the momentum to achieve longer-term tripartite goals, labour chief Lim Swee Say said yesterday in an e-mail to all union leaders and NTUC (National Trades Union Congress) staff.
Outlining the labour movement's response to Prime Minister Lee Hsien Loong's New Year message, Mr Lim, secretary-general of NTUC, said that the labour movement will 'stand in unity with the government and employers to protect jobs and create growth' in the difficult year ahead.
Cutting costs to save jobs is the top priority, Mr Lim said, noting that the world economy's decline has already hurt numerous businesses and workers.
Urging union leaders to 'be more pro-active in working closely with management and the government to improve productivity and reduce total costs', Mr Lim said that they 'need to be even more flexible and adaptable in 2009, because more cost reduction for our businesses will mean more jobs saved for our workers.'
The second priority, he said, is to 'up-skill and re-skill for new and different jobs'. Noting that 'global recession does not mean zero job creation', he highlighted sectors that still are employing, such as the Home Team, education, health care, marine, construction and public transport, and the new jobs, which will come with new hotels, shopping malls and the integrated resorts.
The labour movement's challenge, Mr Lim said, is to 'encourage workers to not just look for the same job with same pay', but 'be willing to adapt to new job demands'.
Acknowledging that longer-term efforts to 'reduce unemployment and under-employment' and 'enhance the employability of low-skilled workers' will inevitably be affected by the short-term economic crisis, Mr Lim said that such initiatives must not stall in 2009, and exhorted union leaders to 'stay the course to achieve our longer-term objectives'.
- The Business Times
Outlining the labour movement's response to Prime Minister Lee Hsien Loong's New Year message, Mr Lim, secretary-general of NTUC, said that the labour movement will 'stand in unity with the government and employers to protect jobs and create growth' in the difficult year ahead.
Cutting costs to save jobs is the top priority, Mr Lim said, noting that the world economy's decline has already hurt numerous businesses and workers.
Urging union leaders to 'be more pro-active in working closely with management and the government to improve productivity and reduce total costs', Mr Lim said that they 'need to be even more flexible and adaptable in 2009, because more cost reduction for our businesses will mean more jobs saved for our workers.'
The second priority, he said, is to 'up-skill and re-skill for new and different jobs'. Noting that 'global recession does not mean zero job creation', he highlighted sectors that still are employing, such as the Home Team, education, health care, marine, construction and public transport, and the new jobs, which will come with new hotels, shopping malls and the integrated resorts.
The labour movement's challenge, Mr Lim said, is to 'encourage workers to not just look for the same job with same pay', but 'be willing to adapt to new job demands'.
Acknowledging that longer-term efforts to 'reduce unemployment and under-employment' and 'enhance the employability of low-skilled workers' will inevitably be affected by the short-term economic crisis, Mr Lim said that such initiatives must not stall in 2009, and exhorted union leaders to 'stay the course to achieve our longer-term objectives'.
- The Business Times
Jan 4, 2009
Unemployment blues hit disabled community
Unemployment blues have hit the disabled community, with some already seeking help.
One organisation, Bizlink - which finds employment for them - has also seen a dip in vacancies.
Alfred Halim, who is deaf, is working as an IT and maintenance technician with a company that manages seven Subway outlets.
However, things were not always as rosy. He applied to 30 companies and waited for six months, but none replied. He got his break with Remnant Holdings, a company which hired others like him.
Sarah Andrea Lee, managing director, Remnant Holdings, said: "They constitute about 21 per cent of my company's workforce. I believe that everyone should be given equal opportunities, as we can expound and utilise and maximise other senses."
Ms Lee added that most of the disabled staff carry out duties as counter crew at food outlets. They were mostly referred by Mountbatten Vocational School or Bizlink.
Even with the downturn, her company is ready to recruit another 10-20 staff.
Unlike Alfred, many within the disabled community are still waiting for that opportunity.
Bizlink said of the 600 disabled people assessed for open employment this year, only about half secured jobs. And this will become more difficult with the gloomy economic outlook.
Joseph Chan, head, Employment Place Group, Bizlink, said: "For the past two to three months, we have people coming back to us, because they are being retrenched.
"And given these cost-cutting measures taken up by companies, there will probably be more to come. We are seeing less vacancies right now for people with disabilities."
According to Mr Chan, most of those retrenched are from the manufacturing sector.
Bizlink hopes more companies will take up the government's "Open Door Fund" which helps employers defray the cost of hiring the disabled.
Mr Chan said: "Probably more can be done to help to publicise the scheme to more employers, and letting them know what are the criteria. We believe the relevant ministry would be happy to hear from them and modify (the scheme) accordingly, so as to make it more attractive to them."
Even with a tighter job market, Bizlink feels the disabled can still find jobs in the food and beverage, hospitality and cleaning sectors. Those not suitable for open employment can find paid employment at Bizlink's sheltered workshops.
So far Bizlink has recruited some 120 disabled individuals. Each worker is paid between S$500 and S$1,000 each month.
- Channel News Asia
One organisation, Bizlink - which finds employment for them - has also seen a dip in vacancies.
Alfred Halim, who is deaf, is working as an IT and maintenance technician with a company that manages seven Subway outlets.
However, things were not always as rosy. He applied to 30 companies and waited for six months, but none replied. He got his break with Remnant Holdings, a company which hired others like him.
Sarah Andrea Lee, managing director, Remnant Holdings, said: "They constitute about 21 per cent of my company's workforce. I believe that everyone should be given equal opportunities, as we can expound and utilise and maximise other senses."
Ms Lee added that most of the disabled staff carry out duties as counter crew at food outlets. They were mostly referred by Mountbatten Vocational School or Bizlink.
Even with the downturn, her company is ready to recruit another 10-20 staff.
Unlike Alfred, many within the disabled community are still waiting for that opportunity.
Bizlink said of the 600 disabled people assessed for open employment this year, only about half secured jobs. And this will become more difficult with the gloomy economic outlook.
Joseph Chan, head, Employment Place Group, Bizlink, said: "For the past two to three months, we have people coming back to us, because they are being retrenched.
"And given these cost-cutting measures taken up by companies, there will probably be more to come. We are seeing less vacancies right now for people with disabilities."
According to Mr Chan, most of those retrenched are from the manufacturing sector.
Bizlink hopes more companies will take up the government's "Open Door Fund" which helps employers defray the cost of hiring the disabled.
Mr Chan said: "Probably more can be done to help to publicise the scheme to more employers, and letting them know what are the criteria. We believe the relevant ministry would be happy to hear from them and modify (the scheme) accordingly, so as to make it more attractive to them."
Even with a tighter job market, Bizlink feels the disabled can still find jobs in the food and beverage, hospitality and cleaning sectors. Those not suitable for open employment can find paid employment at Bizlink's sheltered workshops.
So far Bizlink has recruited some 120 disabled individuals. Each worker is paid between S$500 and S$1,000 each month.
- Channel News Asia
Jan 3, 2009
Singapore GDP Posts Biggest Fall on Record
Singapore plunged deeper into recession in the fourth quarter as gross domestic product marked its biggest quarterly decline on record, said the government, which lowered its projection for 2009.
The darker outlook for the small, trade-dependent economy -- considered to be a bellwether for the rest of the region -- likely means the government will step up spending to offset a slowdown in manufacturing and a rapid cooling in the construction and services sectors. It may also pressure the central bank to ease monetary policy to support growth.
Singapore's economy contracted at a seasonally adjusted, annualized pace of 12.5% in the quarter, accelerating from a 5.4% decline in the third quarter, according to the Ministry of Trade and Industry's estimate. It was the biggest contraction since the government began publishing seasonally adjusted data in 1976.
"The global economic crisis has worsened since November, with sharp declines in global demand, trade and investments," the ministry said.
The government cut its forecast for 2009, projecting a range of between a contraction of 2% and growth of 1%, against its estimate in November of a range of a contraction of 1% and growth of 2%.
Citigroup economist Kit Wei Zheng is more pessimistic. He forecasts GDP will contract 2.8% this year. That would make the current downturn worse than the slump in 1998, when the economy shrank 1.4% as it was buffeted by the Asian financial crisis, and worse than the 2001 recession following the collapse of U.S. technology stocks, when GDP shrank 2.4%. "If we are correct, 2009 will mark the most severe recession in Singapore's history," he said.
Inflationary pressures are likely to moderate "more substantially," he added, predicting Singapore could see a brief period of deflation in 2009.
Singapore's economy, especially the electronics sector, relies heavily on overseas demand, which has imploded in the wake of the global credit crisis. The manufacturing and financial sectors have been hardest hit, while the tourism-services sector is also seeing signs of cooling.
- Wall Street Journal
The darker outlook for the small, trade-dependent economy -- considered to be a bellwether for the rest of the region -- likely means the government will step up spending to offset a slowdown in manufacturing and a rapid cooling in the construction and services sectors. It may also pressure the central bank to ease monetary policy to support growth.
Singapore's economy contracted at a seasonally adjusted, annualized pace of 12.5% in the quarter, accelerating from a 5.4% decline in the third quarter, according to the Ministry of Trade and Industry's estimate. It was the biggest contraction since the government began publishing seasonally adjusted data in 1976.
"The global economic crisis has worsened since November, with sharp declines in global demand, trade and investments," the ministry said.
The government cut its forecast for 2009, projecting a range of between a contraction of 2% and growth of 1%, against its estimate in November of a range of a contraction of 1% and growth of 2%.
Citigroup economist Kit Wei Zheng is more pessimistic. He forecasts GDP will contract 2.8% this year. That would make the current downturn worse than the slump in 1998, when the economy shrank 1.4% as it was buffeted by the Asian financial crisis, and worse than the 2001 recession following the collapse of U.S. technology stocks, when GDP shrank 2.4%. "If we are correct, 2009 will mark the most severe recession in Singapore's history," he said.
Inflationary pressures are likely to moderate "more substantially," he added, predicting Singapore could see a brief period of deflation in 2009.
Singapore's economy, especially the electronics sector, relies heavily on overseas demand, which has imploded in the wake of the global credit crisis. The manufacturing and financial sectors have been hardest hit, while the tourism-services sector is also seeing signs of cooling.
- Wall Street Journal
Jan 2, 2009
Creative cuts 2,700 jobs, Singapore staff unaffected
CREATIVE Technology, which makes Zen MP3 players as well as accessories for Apple’s iPod, eliminated 2,700 jobs, or almost half its global workforce, in the last fiscal year after demand for its own music players tumbled.
The company had 3,100 full-time workers at the end of last June, down 47 per cent from a year earlier, Creative said in its annual report filed with the Singapore Exchange.
The more-than-1,000 staff in its headquarters here were largely unscathed by the cuts, which were attributed mainly to the sale of one of Creative’s units in Malaysia last year. “The bulk of the reduction in worldwide workforce was due to the sale of Cubic Electronics, the manufacturing subsidiary of Creative in Malaysia in July 2007.
In Singapore, there is no significant change in our overall employment figure. We are still looking to hire more R&D engineers,” a Creative spokesperson told Today.
Still the extent of the job cuts underlined the challenges Creative has been facing in the last three years, when it was hit by cut-throat competition, resulting in falling sales, razor-thin margins and slipping bottom lines. In the last fiscal year ended June 30, Creative posted a net loss of US$19.7 million ($28.5 million) on sales of US$736.8 million, the lowest revenue in five years.
Creative joins Chartered Semiconductor Manufacturing and Philips Electronics in cutting jobs as demand for electronics falters amid the worldwide recession. The Government said yesterday that the economy may shrink by as much as 2 per cent this year, twice as much as it had projected on Nov 21, as slumping demand from the United States and Europe undermines exports.
Credit Suisse analyst Lim Keng Hock said in a research report last month that Creative’s balance sheet could be weakened during the downturn. He estimated Creative would suffer an annual free cash flow deficit of between US$30 million and US$50 million and erode its US$250 million in cash holdings.
“Until it can show a turnaround in its operations, we are happy to sideline the stock even though valuations are very compelling,” said Mr Lim.
Others see opportunities in Creative’s troubles. DBS Vickers thinks the Singapore icon will make an attractive takeover target. “A potential buyer can extract cash by firstly shutting down its loss-making retail business, then paying off debts with the company’s cash and, last but not least, monetising Creative’s rich library of intellectual properties,” it said in a research note last month.
Creative shares ended the first trading day of the new year down 1.2 per cent at $4.25. The stock dropped 32 per cent last year.
The company had 3,100 full-time workers at the end of last June, down 47 per cent from a year earlier, Creative said in its annual report filed with the Singapore Exchange.
The more-than-1,000 staff in its headquarters here were largely unscathed by the cuts, which were attributed mainly to the sale of one of Creative’s units in Malaysia last year. “The bulk of the reduction in worldwide workforce was due to the sale of Cubic Electronics, the manufacturing subsidiary of Creative in Malaysia in July 2007.
In Singapore, there is no significant change in our overall employment figure. We are still looking to hire more R&D engineers,” a Creative spokesperson told Today.
Still the extent of the job cuts underlined the challenges Creative has been facing in the last three years, when it was hit by cut-throat competition, resulting in falling sales, razor-thin margins and slipping bottom lines. In the last fiscal year ended June 30, Creative posted a net loss of US$19.7 million ($28.5 million) on sales of US$736.8 million, the lowest revenue in five years.
Creative joins Chartered Semiconductor Manufacturing and Philips Electronics in cutting jobs as demand for electronics falters amid the worldwide recession. The Government said yesterday that the economy may shrink by as much as 2 per cent this year, twice as much as it had projected on Nov 21, as slumping demand from the United States and Europe undermines exports.
Credit Suisse analyst Lim Keng Hock said in a research report last month that Creative’s balance sheet could be weakened during the downturn. He estimated Creative would suffer an annual free cash flow deficit of between US$30 million and US$50 million and erode its US$250 million in cash holdings.
“Until it can show a turnaround in its operations, we are happy to sideline the stock even though valuations are very compelling,” said Mr Lim.
Others see opportunities in Creative’s troubles. DBS Vickers thinks the Singapore icon will make an attractive takeover target. “A potential buyer can extract cash by firstly shutting down its loss-making retail business, then paying off debts with the company’s cash and, last but not least, monetising Creative’s rich library of intellectual properties,” it said in a research note last month.
Creative shares ended the first trading day of the new year down 1.2 per cent at $4.25. The stock dropped 32 per cent last year.
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