FrontPage 22 Aug 2000 More (Part 2)

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^{Prime Minister's National Day Rally Speech}

Continued from More 1

Part Two of Three Parts

Education and Training
School Education
69 Indeed, the best way to avoid being trapped in the lower-income group is
through education. Education provides the foundation for our children to
compete successfully in life. It gives them the basic knowledge to acquire the
skills required in the workplace. I believe that it will be the single most
important factor determining the success of Singaporeans competing in the New Economy.
70 We now spend $6 billion a year, or 3.6% of GDP, to provide high-quality
education that meets the needs of students of different ability.
71 I am willing to commit more money to education. I am prepared to increase
spending on education from 3.6% to 4.5% of GDP over the next few years,
provided the funds are put to good use. This means an extra $1.5 billion every
year. What more can we do to improve the quality of education for all
Singaporeans?
72 One area is our primary schools, where the foundation for future learning
and citizenship is laid.
73 MOE has just completed a $2.2 billion programme to make all our secondary schools single-session.
74 For primary schools, MOE is now upgrading or rebuilding many of the older
schools as part of a $4.5 billion programme. Within the next 2-3 years, when
this upgrading programme is running smoothly, MOE should look at whether
primary schools too should go single-session. Single-session schools give
teachers and students more opportunity to interact, and provide students better
access to school facilities.
75 Beyond physical infrastructure, we need quality teachers to be mentors and
guides for our young as they embark on an exciting journey of discovery,
experimentation, and fulfilment.
76 We have many dedicated teachers who have helped build the strong education system that we have today. We must continue to ensure that those who teach our children are well qualified to do so, not just academically, but also in commitment, passion, and the care and concern they show for their students. We must make sure that people with such qualities come forward to become teachers, and stay to become school leaders.
77 The Straits Times reported recently that Britain is coming here to recruit
our teachers. Britain,s largest teacher-recruitment agency considers Singapore a "goldmine of high quality teachers".
78 I am pleased that our teachers are regarded so highly. But this poses a
challenge to MOE. MOE has to support and reward our teachers effectively, so that we can retain them in the service, and not lose them to other jobs or to
Britain.
79 I have urged MOE to review the career structure and rewards for our
teachers, so that we can recruit and retain more teachers. If we are able to
do that, then we can gradually improve our teacher-student ratio, and allow
more opportunity for meaningful interaction between teachers and students. MOE should see how we can provide our schools with better administrative support, so that teachers can spend less time on administration and more on teaching.
80 MOE should also devote more resources to new areas to benefit Singaporeans, both young and old. It can help private providers to strengthen the pre-school sector, to build a firm foundation for our children before they start formal school. It can also increase capacity in post-secondary educational institutions to deliver lifelong learning, so that more adult Singaporeans will have opportunities to upgrade themselves.
Pre-School Education 81 The first few years of a child's life are a period of accelerated physical development. Good pre-school education, or PSE, can help the longer-term cognitive and social development of our children.
82 MOE is therefore starting a pilot programme to develop a good pre-school
curriculum. It aims for a balance between understanding concepts, the learning process, and acquiring desirable attitudes and values. To raise the quality of PSE, we must also improve the training and preparation of pre-school teachers.
83 In short, we will want PSE institutions to upgrade standards, while
retaining the existing framework of private and community provision of such
services.
84 But as we upgrade standards, costs will go up. The Government will
therefore consider giving some financial help to non-profit PSE organisations.
These PSE providers can then keep fees affordable, in particular for children
from lower income families.
Compulsory Education
85 In the New Economy, every child needs to learn the basics to enable him to
keep learning new skills through his life.
86 This is why we have been discussing compulsory education in recent months.
Dr Aline Wong has released her report on Compulsory Education. It is a good
report. The Government has accepted the recommendation to introduce compulsory education in national schools up to Primary Six.
87 Six years is really not enough. But if we can educate all our children for
six years in primary school, this will prepare them for secondary education,
and encourage most of them to continue with secondary education.
88 When I first raised the issue of compulsory education, some members of the Muslim community worried that it might be a ploy to close the madrasahs. This caused an emotional reaction, which clouded rational thinking.
89 Leaders have a duty to analyse issues logically, whether we are national or
community leaders. We must try to understand the broader picture, and look a little further ahead than the public, to anticipate likely problems down the
road. I am concerned if even one child is not educated to take care of himself
in the New Economy. If significant numbers of Muslims are not equipped to do
so, the Muslim community will face a serious problem. This is why I raised the
issue for discussion, even though I knew that madrasahs would be a very
sensitive matter for the Muslim community.
90 The Government has accepted Dr Aline Wong's Committee's recommendation to exempt students going to madrasahs from compulsory education in national schools, provided they are being prepared to sit for the PSLE, and provided the madrasahs attain a minimum standard in English, Mathematics and Science at the PSLE. The student intake into madrasahs must also be kept within the present level, which I understand is enough to meet the needs of the community for asatizahs and ulamas.
91 Now that the Malay community can see that madrasahs are not under threat, I suggest that MUIS lead a team to study the educational practices and the role of religious schools in Islamic countries like Brunei, Oman and Jordan. This will help you to decide how the madrasahs can best fulfil their role of training the future religious leaders of our Muslim community. Madrasah
students, like the rest of our students, should be on the right side of the
education divide.
Lifelong Learning
92 Acquiring knowledge and skills for the New Economy cannot be a one-off
process. I hope none of you believe that you have completed your education once you leave school.
93 Formal school education alone is not sufficient to carry you through life.
The facts and skills that we learn today will go out of date and lose their
relevance within a few years. Unless we systematically upgrade our skills
throughout our working life, we will wake up one day to find ourselves out of a
job. This applies to everyone, whether you are a 50-year old production
operator or a 30-year old computer programmer.
94 We must therefore bring about a culture of lifelong learning. You are never
too old to learn. Even if you speak Singlish, you can learn to improve your
English. Look at Phua Chu Kang. He attended BEST classes. He is speaking better English already, although still not as good as Gurmit Singh. Whether Phua Chu Kang wishes to improve his English further is up to him. But if he is wise, he should keep on learning, for example, how to use the computer and e-commerce to expand his business.
95 To support lifelong learning, the Government will establish a new endowment fund - the Lifelong Learning Fund. We will build up this fund from our budget surpluses. The Lifelong Learning Fund will eventually have $5 billion. This year, we will allocate $500 million to kick off the fund.
96 The Lifelong Learning Fund will support existing national training
programmes, such as the Skills Redevelopment Programme run by the NTUC. In addition, the Fund will support new training initiatives to make Singaporeans
more employable. One priority will be in the area of IT. The Government is
developing a National IT Literacy Program that will equip Singaporeans with the
IT skills needed in the workplace and at home. We want all Singaporeans, young and old, to be comfortable and confident using IT.
97 We are also working out the framework for Singaporeans to upgrade themselves throughout their working lives, especially ITE and polytechnic diploma holders. This could be upgrading in formal qualifications, say, from an
Industrial Technician Certificate to a polytechnic diploma, and from a diploma
to a degree. Or we could have shorter courses which refresh and update skills
and knowledge, and lead to advanced certification and diplomas.
98 With the Lifelong Learning Fund, we will have the beginnings of a lifelong
education system, from pre-school to retirement.

Reproducing Ourselves
Declining Fertility
99 But these efforts to help Singapore compete in the New Economy will come to nothing if we do not have enough Singaporeans!
100 In 1987, I announced the New Population Policy, to have 3 children, or more if you can afford it. The total fertility rate (TFR) was then 1.62. In other
words, on average, each Singaporean woman was having only 1.62 children, way below the 2.1 required to replace the population. This was because many
Singaporeans were not getting married, and those who were marrying were not
having enough children to make up for the unmarried people.
101 We then put in place programmes to help Singaporeans meet potential
partners and to help married couples have more children.
102 At first, the programmes worked. The TFR rose to 1.96 in 1988 (a dragon
year) and 1.75 in 1989. But ten years later, the TFR has fallen to 1.48, below
the 1987 level of 1.62. Three times as many families are childless (7.3% in
1999, compared to 2.6% in 1989). Twice as many have only one child (15% in
1999, compared to 8.5% in 1989). This year is another dragon year, but all the
signs are that there will not be a bumper crop of dragon babies.
103 Two social trends contributed to this fall in the TFR. First, many more
men and women are remaining single, even though more graduates are now getting married.
104 Second, Singaporeans who are marrying are having fewer children. This is
partly because couples are marrying later, and starting their families later.
Mothers are now having their children about 2 years later than before, around
age 29 for the first child, and 31 for the second.
105 These are worrying trends for a society.
Our Worries
106 I have no authority to order you to get married, or to decide how many
children you should have.

107 As a husband, a father and now a grandfather, I can only tell you that a
family adds warmth and meaning to our lives. Friends are important, but a
family is indispensable. We would be so much lonelier if we did not have a
partner with whom to share our achievements and anxieties, our joys and
sorrows. The house would be so much emptier without the laughter of children.
How miserable we would be if we have no children to look after us when we grow old and weak.
108 But as PM, I have to be concerned about the impact of low fertility rates
on the future of our society.
109 If our current fertility rate stays at 1.48, without immigration, in 50
years, our resident population will fall from 3.2 million to 2.7 million. The
resident labour force will decrease by more than a quarter. How can we sustain economic growth? How can we support our elders? How can we defend ourselves?
110 If our fertility rate falls further to, say, 1.2, like in Spain and Italy,
in 50 years, our resident population would fall to 2.4 million.
111 You may ask, why not just bring in more foreign workers to ease our labour shortage? And more foreign talent to enlarge our intellectual pool? My answer is simple: we will bring in foreigners and new immigrants. They will
complement our needs, but they cannot replace us.
112 We have to do something, even while recognising that getting married and
having children are personal decisions.
113 Developed countries have used financial and tax incentives to tackle
declining fertility trends. Such interventions seem to have worked to some
extent, but experts caution us not to rely only on material incentives.
Financial incentives must be coupled with programmes that address the issues of finding a balance between family and work responsibilities.
Overcoming the Obstacles
114 We must therefore create a total environment conducive to raising a
family. Our policy is still to have 3 children, or more if you can afford it.
The Government will help reduce the obstacles to your doing so. Finance seems to be a constraint among many Singaporeans to having children. Childcare arrangements are another concern. We have two initiatives which I hope will help address these concerns.
115 First, we will introduce a Children Development Co-Savings Scheme, or Baby Bonus for short. Under this scheme, when a couple has a second or third child, the Government will open a Children Development Account for the family. The Government will put a certain sum of money into the account each year, until the child is six years old.
116 For the second child, each year the Government will contribute $500 into
the account, plus up to another $1,000 to match contributions from the parents
dollar for dollar.
117 For the third child, the amounts will be doubled: an annual contribution of
$1,000, plus up to $2,000 in matching contributions.
118 This matching contribution is an important feature of the scheme. It
recognises that the primary responsibility for providing for the child lies
with the parents. If the parents are prepared to save more for the child,s
needs, the Government will match them, dollar for dollar.
119 The family can use the Baby Bonus to pay for the development and education of all their children, not just the second or third child. Allowed uses will include items like childcare, nursery and kindergarten fees. MCDS is working out the details.
120 Second, the Employment Act provides for paid maternity leave only for the
first two children. Many Singaporeans have said that the lack of paid
maternity leave for the third child was an obstacle to their having a third
child.
121 We will therefore provide 8 weeks paid maternity leave for the third child
as well. This will give mothers time to bond with their new baby without
suffering a loss in wages. But we do not want this to become a burden for
employers. So instead of having the employers bear the expense, the Government will pay the wage cost of the maternity leave for the third child, subject to a cap of $20,000.
122 With this third child maternity leave grant, the Government will cap the
Further Tax Rebate for working mothers, which is based on 15% of a woman's
annual income, and is currently given in lieu of paid maternity leave for the
third and fourth child. The cap will be $20,000 for the third child and
$40,000 for the fourth child.
123 These incentives will take effect for babies born from 1 April next year.
It should really be nine months from tonight. But we will start from the new
financial year, to be generous to the early babies.
124 The cost to the Government will be $260 million a year, or more if more
babies are born. This is not a small sum. But if it helps more couples to
have a second and then a third child, the money will be well spent.
125 There are other measures which we will announce later. These include
implementing more family-friendly work arrangements in the civil service and
making childcare centres more available and affordable. These measures are
important too as no single measure will be sufficient to address the reluctance
of parents to have more children. We must create a total environment conducive to raising a family.
126 I intend also to set up a Ministerial Committee under the Prime Minister's
Office to oversee this problem of declining fertility. Lim Boon Heng, who is a
Minister in my office, will head the Committee.
127 I must admit that I am not at all certain that we will succeed in reversing
the trends of declining marriage and children. These trends are a reflection
of urbanisation, higher education and the changing norms of our society. But
we must at least try to arrest the problem. Not to try is to give up on
Singapore.
128 We will review the situation after 5 years to see if these measures have
been effective. If not, then we will have to pursue new ideas. But I hope
these measures will, to some extent, help couples to enjoy the joys of family
and parenthood.

Global Talent
129 Even if our new pro-family policies succeed, on our own, we will not
produce enough of the best players to compete against the top teams in the
world. Countries all over the world now recognise this, and are rushing for
talent.
130 Germany has introduced a +green card, system to recruit 20,000 IT workers, mainly from India. So far, fewer than 200 Indians have expressed interest in going to Germany. Most Indians would rather go to the US.
131 The US already has a large reservoir of talent. Yet it continues to
recruit more talent from overseas. The US Congress is considering three bills
to increase the existing number of visas for skilled foreigners. American
universities and corporations systematically seek out the best students and
graduates to join them, regardless of nationality. Foreign students who do
well in their first and second year are spotted and signed on immediately, even
before they graduate.
132 China too, big as it is, wants more talent. Each year, it plans to lure
back 10,000 of its own nationals studying abroad with preferential policies
such as higher wages and high-quality housing.
133 London is such a vibrant city and financial centre because it is a magnet
for professionals from all over the world, especially Europe. Even then, the
British Government is pushing through laws to open the gates even wider for
British companies to recruit foreign talent.
134 A spokesman for a British recruitment agency said,
"Singapore is an ideal place for us to look. We know that the IT people
there are of the highest calibre and are highly proficient in English. We
would certainly consider Singapore a much more fertile ground than Japan and
even, for instance, France."
135 Our teachers and nurses too are being targeted. You have read how Leeds National Health Trust, Britain's largest group of hospitals, recently came to Singapore to recruit 100 nurses. Fortunately for us, they failed to recruit a
single Singapore-born nurse.
136 Its spokesman said,
"Loyalty to their country and to their hospitals was a major reason for the
Singaporeans deciding not to come to Britain."
137 A nurse in her mid-20s at the Singapore General Hospital confirmed this.
She said, "We were all excited and planned to go to Britain. But as time went on, we all grew cooler to the idea. We knew we would be letting down our colleagues - they would have to work harder because there are already staff shortages."
138 Good for her. Bravo. I wanted to ask Lim Hng Kiang to compliment her, but she did not give her name. She did not want her boss to know she had
considered leaving.
139 These examples underline what we have said repeatedly, that talent and
skills are mobile and that we have to take into account international wages.
If we do not, some of our talent will move elsewhere, to where they will be
better paid. We need to develop our reputation as employers of choice. Our
management of talent has to be up to global standards.
140 We also have to change our mindset towards foreign talent, or global
talent, as I prefer to call them. We have to welcome them, offer them PR, and
absorb them as Singapore citizens, wherever possible. Many of them are eager and happy to become Singaporeans. MPs tell me that quite a number of new citizens and PRs take part in our National Day dinners and observance
ceremonies. Many of their sons are doing National Service. And this year, for
the first time, we have an SAF Scholar who came with his parents from Hong Kong and became a Singapore citizen.
141 Singaporeans generally accept foreigners coming in to start or work in
their own companies. It is when Singapore-owned companies bring in foreign
senior executives, or when we open up our professions to foreigners, that
resentment surfaces.
142 I met Flemming Jacobs, the Danish CEO of NOL, soon after he arrived. He confided that there was some unhappiness amongst the local staff over his
appointment and his intention to bring in a few more non-Singaporeans. He said that the joke was going around that NOL did not stand for Neptune Orient Lines anymore. It stood for "No Orientals Left".
143 NOL is now more than a national shipping line. It is a global shipping
line. It has merged with American President Line. It is the world's sixth
largest container fleet operator, competing against other global players.
144 Naturally, we would like a Singaporean to be the CEO if a suitable man can be found. If not, NOL must hire the best man internationally. The job is too big to be reserved only for Singaporeans. If NOL does not have a CEO who can turn in the profits, the joke will not be "No Orientals Left". It will be "No
One Left".

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