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1 Second Minister for Manpower Mrs Josephine Teo COS Speech 2018 Transform and Grow

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1 Second Minister for Manpower Mrs Josephine Teo COS Speech 2018 Transform and Grow 1 STRICTLY EMBARGOED UNTIL AFTER DELIVERY. PLEASE CHECK AGAINST DELIVERY. Second Minister for Manpower Mrs Josephine Teo COS Speech 2018 Transform and Grow - Update on LEDS A1. Mr Chairman, I will be sharing what more MOM is doing to help Singaporeans have better jobs, better employment outcomes and better protection. A2. Let me start with better jobs. 1 2 STRICTLY EMBARGOED UNTIL AFTER DELIVERY. PLEASE CHECK AGAINST DELIVERY. A3. Given that our workforce growth is slowing, our businesses have to become more manpower lean. A4. At the same time, businesses may need to redesign jobs to support an ageing workforce or be more attractive to local jobseekers, who now have higher aspirations. A5. MOM together with several sector lead agencies are helping businesses transform through the Lean Enterprise Development (LED) Scheme. 2 3 STRICTLY EMBARGOED UNTIL AFTER DELIVERY. PLEASE CHECK AGAINST DELIVERY. A6. Ms Jessica Tan asked about its effectiveness. Since its launch in Oct 2015, we have built up good momentum. A7. We have helped about 6,700 companies, which is three times the number a year ago. Example 1 (Manpower lean) A8. One interesting project was undertaken by the Gratify Group - a company which owns many different F&B brands. 3 4 STRICTLY EMBARGOED UNTIL AFTER DELIVERY. PLEASE CHECK AGAINST DELIVERY. A9. Owner Frank Lau wanted to make sure that his company’s expansion plans would not be held back as a result of a lack of manpower. A10. Hence, when conceptualising its new brand – “Omoomodon”, he set himself a challenge i. That every outlet must be able to operate with just three staff per shift, ii. When most similar concepts needed at least 5 staff per shift. 4 5 STRICTLY EMBARGOED UNTIL AFTER DELIVERY. PLEASE CHECK AGAINST DELIVERY. A11. In the F&B business, what Frank wanted was certainly a tall order. A12. But Frank believed he needed to push the boundaries to have any chance of scaling the business in a sustainable way. A13. He engaged the Singapore Productivity Centre (SPC) to re-design his workflow and processes. A14. They started with the menu, with food preparation very much in mind. 5 6 STRICTLY EMBARGOED UNTIL AFTER DELIVERY. PLEASE CHECK AGAINST DELIVERY. A15. They studied operational flows at many food outlets, and collected data on time- consuming tasks A16. The end result included a central kitchen, self-service ordering and payment, and optimised kitchen designs. A17. Staff were also crossed-trained to prepare food and attend to customers. A18. The improved job scope resulted in better pay and higher retention: 6 7 STRICTLY EMBARGOED UNTIL AFTER DELIVERY. PLEASE CHECK AGAINST DELIVERY. i. Salaries offered by Omoomodon are on average 15% higher than market rate, ii. There is lower attrition as workers are more motivated to stay with the company. A19. Thanks to these measures. i. Manpower required for each new outlet was reduced by up to 60%. A20. This example shows how transformation is possible. 7 8 STRICTLY EMBARGOED UNTIL AFTER DELIVERY. PLEASE CHECK AGAINST DELIVERY. A21. The LED Scheme supports such transformation. A22. It provides a “one-stop” service for businesses, especially SMEs, to access schemes offered by different Government agencies, without having to figure out where and who to approach for what. A23. However, not all transformations need customised solutions like Frank did. 8 9 STRICTLY EMBARGOED UNTIL AFTER DELIVERY. PLEASE CHECK AGAINST DELIVERY. A24. Many businesses will benefit just adopting ready-to-go (RTG) productivity solutions. A25. For example, the Smart Management & Tracking System or SMTS i. Uses RFID technology to manage, track and audit assets to reduce stock taking time ii. Useful for nearly all businesses in manufacturing and retail. 9 10 STRICTLY EMBARGOED UNTIL AFTER DELIVERY. PLEASE CHECK AGAINST DELIVERY. A26. There are now more than 40 RTG solutions pre-approved by Government agencies such as SPRING Singapore, A*STAR and IMDA. A27. These RTG solutions have been tried and tested, so there is no need for businesses to worry about ineffective solutions, or fly-by-night vendors. A28. Through the LED Scheme, we aim to make technology and innovation pervasive: i. Not only at the enterprise level, 10 11 STRICTLY EMBARGOED UNTIL AFTER DELIVERY. PLEASE CHECK AGAINST DELIVERY. ii. But also at the industry level. iii. Not just in 1-2 sectors, but across all the 23 ITM sectors. A29. For instance, under the Lean Hotel Initiative: i. 16 hotels came together to collectively identify gaps and design industry solutions. ii. In just four months, the hotels had achieved productivity savings of between 4.5% to 28%, without having to compromise service quality. 11 12 STRICTLY EMBARGOED UNTIL AFTER DELIVERY. PLEASE CHECK AGAINST DELIVERY. A30. We also plan to go beyond ITMs to non- ITM sectors, A31. And are in discussions with several industries such as furniture, farms, lifts and escalators to support their transformation. 12 13 STRICTLY EMBARGOED UNTIL AFTER DELIVERY. PLEASE CHECK AGAINST DELIVERY. Update on Adapt and Grow B1. As businesses transform and jobs become better, so too must workers adapt. B2. This is how we can achieve better employment outcomes. B3. As mentioned by Minister Lim, the Adapt and Grow initiative helped place more than 25,000 jobseekers into new jobs and careers in 2017, about 20% more than in 2016 (around 21,000). 13 14 STRICTLY EMBARGOED UNTIL AFTER DELIVERY. PLEASE CHECK AGAINST DELIVERY. B4. Broadly speaking, we aim to help both i. Missed matches – where employer and jobseekers have not found each other – and ii. Mismatches – where there are skills or wage gaps that make it hard for the jobseeker to secure a job. Update on “missed matches” - My Careers Future 14 15 STRICTLY EMBARGOED UNTIL AFTER DELIVERY. PLEASE CHECK AGAINST DELIVERY. B5. Of the 25,000 jobseekers placed, ~ 60% involved missed matches (~15,000) i. The jobseekers were job-ready but somehow missed finding the right employers. ii. WSG and NTUC-e2i helped them to find a match. B6. Mr Patrick Tay and Mr Chong Kee Hiong asked for an update on our efforts to strengthen job matching through the national Jobs Bank. B7. We are transforming JobsBank into a new platform called MyCareersFuture. 15 16 STRICTLY EMBARGOED UNTIL AFTER DELIVERY. PLEASE CHECK AGAINST DELIVERY. B8. MyCareersFuture will have new features to help jobseekers and employers find better matches: i. It will have intelligent job matching, and can recommend jobs to jobseekers that would best fit their skill sets. ii. It will also highlight jobs that are supported by Adapt and Grow programmes such as PCPs, to help bridge job and skill mismatches. 16 17 STRICTLY EMBARGOED UNTIL AFTER DELIVERY. PLEASE CHECK AGAINST DELIVERY. B9. MyCareersFuture has been up and running since 2 Jan 2018, and the portal will be officially launched in 2Q 2018. Update on mismatch – PCP and CSP B10. Besides reducing missed matches, we helped to close skills or wage mismatches. B11. Of the 25,000 jobseekers placed, 40% involved jobseekers with some form of mismatch. This proportion has grown significantly, from just 25% in 2016. 17 18 STRICTLY EMBARGOED UNTIL AFTER DELIVERY. PLEASE CHECK AGAINST DELIVERY. B12. Placements of mismatch cases doubled from ~5,000 in 2016 to ~10,000 in 2017. B13. This reflects our more intensive efforts to address mismatches. B14. As our economy restructures, job-skills mismatch will be a growing challenge. B15. This can be very unsettling for individuals who have lost their jobs or are at risk of retrenchment. 18 19 STRICTLY EMBARGOED UNTIL AFTER DELIVERY. PLEASE CHECK AGAINST DELIVERY. B16. This is why our key focus has been to step up support for jobseekers with skill or wage mismatches, because they need more help. B17. Last year, we strengthened support under the Professional Conversion Programme (PCP) and Career Support Programme (CSP). B18. Associate Professor Faishal Ibrahim, Mr Low Thia Kiang and Dr Intan asked how effective MOM’s efforts have been in helping the long–term unemployed (LTU), older workers and mature PMETs. 19 20 STRICTLY EMBARGOED UNTIL AFTER DELIVERY. PLEASE CHECK AGAINST DELIVERY. B19. If members recall, the CSP provides a wage subsidy that helps to close the gap between what PMET jobseekers expect and what employers are prepared to offer. B20. With the enhanced wage support under CSP, i. Placements have quadrupled, ii. From about 260 in 2016 to over 1,100 in 2017. iii. Among the CSP placements, more than 80% were LTUs. 20 21 STRICTLY EMBARGOED UNTIL AFTER DELIVERY. PLEASE CHECK AGAINST DELIVERY. iv. The retention rate of those placed has been encouraging. v. Within 12 months of placement, about 70% of those placed in 2015 and 2016 have remained in employment. B21. Besides CSP, we also raised the salary support caps of PCPs. B22. PCP placements in 2017 (~3,700) were almost three times that in 2016 (~1,300). 21 22 STRICTLY EMBARGOED UNTIL AFTER DELIVERY. PLEASE CHECK AGAINST DELIVERY. i. In particular, the proportion of mature PMETs, especially those who are 50 years old and above, has more than doubled. ii. Similarly, the proportion placed in mid- level jobs paying $4,000 or more has also doubled. B23. Associate Professor Randolph Tan highlighted the importance of ensuring that our Adapt and Grow efforts are cost effective. B24. We agree. 22 23 STRICTLY EMBARGOED UNTIL AFTER DELIVERY. PLEASE CHECK AGAINST DELIVERY. B25. Our support must also be tilted to those who face greater challenges, such as older workers and the long-term unemployed. B26. We work closely with sector agencies and training providers to review our programmes to ensure effectiveness. B27. Ms Thanaletchimi would be happy to know that overall drop-out rates for PCPs are low - more than 9 in 10 participants complete the programme.
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