Jobs Credits Will Benefit All

This article appeared in My Paper on 4 February 2009:

Jobs Credits will benefit all
By Koh Hui Theng

THE Jobs Credit Scheme is targeted at all Singaporeans and the companies that hire them, be they big or small.

It provides them with immediate relief and, more importantly, helps workers keep their jobs.

Mrs Josephine Teo, a Member of Parliament (MP) for Bishan-Toa Payoh GRC, pointed out the objectives and merits of the scheme when opposition MP Low Thia Khiang questioned its effectiveness in Parliament yesterday.

Mr Lim Swee Say,Minister in the Prime Minister's Office and Secretary-General of the National Trades Union Congress (NTUC), asked Mr Low: 'If you are in power, would you cut the CPF by 9 per cent or choose to spend $4.5 billion?'

Mr Low replied that 'it is preferrable to pay the money into workers' CPF accounts directly'.

Mrs Teo, who is the director of human resources at NTUC, said the scheme will help cut costs and save jobs. It is 'the best support for families' who are worried about losing their jobs during these tough times.

She added that the $4.5-billion initiative - which gives employers a cash grant amounting to 12 per cent of the first $2,500 of an employee's pay, provided he is on the CPF payroll - shows that the Government is 'going all out' to help Singaporeans secure their jobs.

The scheme is part of a $20.5-billion package that the Government unveiled in this year's Budget.

It will be especially helpful to small and mediumsize enterprises, the sector that has been the worst affected by the downturn.

These companies employ about six out of every 10 workers in Singapore, so helping them will save many jobs.

But Mr Low, MP for Hougang, said the economic stimulus and tax cuts offered 'were not unique', as other countries have implemented similar packages.

The Workers' Party chief argued that the scheme 'may not achieve its target' because 'the problem is not cost but a lack of demand for business'.

He urged the Government to do more to help companies, and asked if there were other initiatives that could better help retrenched workers.

Mrs Teo replied that the Government already has various programmes such as Spur, a skills retraining programme.