8/14/2019 Foreign Worker Issue
1/2
a publication of
Mica (p) 233/10/2008
hotline 6822 2268ADVeRtiSe 6333 9888
Wdsd Dm 31, 2008 www.d.m w s k
coluMn
M SwWorkers in China are becom-ing more assertive about
theirlabour rights. While handlingtheir grievances is a
delicatetask for the authorities, thereare no strong indications
thatthe current wave of unrest will
threaten the Communist Partyshold on power, says our EastAsia
Bureau Chief. Page 12
WorlDbm Despite growing calls by theinternational community
foran end to the aerial bombard-ment of the Gaza Strip,
IsraelsInfrastructure Minister saysthat his country is not
inter-ested in restoring a truce withHamas and allowing it to
pre-pare an even stronger attackagainst Israel. Page 2
a s, sAn opposition boycott and aswitch in venue couldnt stop
him.Thai PM Abhisit Vejjajiva finallymanages to deliver his
hour-long inaugural policy addressat the Foreign Ministry build-ing
just 3km from ParliamentHouse, in which he promises to
jumpstart the battered Thaieconomy, heal its politi-cal
divisions and repair itstattered image. Page 2
happyneW year
t w k kd w w k fd.b d d d pmMs lhs lsnw ymss .
the brighteStStar of allt a y 2008s l Jw.
SportS 24
leong Wee [email protected]
IN WHAT is becoming a familiar sight, a
group of about 200 China national work-
ers turned up at the Ministry of Manpower
(MOM) yesterday morning to complain
about unauthorised salary deductions
and wages owed to them. A group of 28
Bangladeshi workers have also filed similar
complaints, claiming they had not been
paid for the past four months.
Far from being isolated headline mak-
ers, recent reports of workers being left in
the lurch seem to be the tip of an iceberg.
And the economic crunch, which has
led to a swelling excess of manpower in
many sectors, is bringing to the surface like
never before underhanded practices such
as unsanctioned deductions, illegal deploy-
ment of workers and strong-arm tactics by
employers during conciliation attempts.
Mr Zhai Yongli, one of the 200 work-
ers at the MOM yesterday, was fearful he
would have no money to send home for
next months Chinese New Year. Like his
fellow workers, the 36-year-old alleged
that his employer made unauthorised de-
ductions from his salary each month, sup-
posedly for a deposit a sum that has
amounted to $8,000 so far.
Other workers from Zhonghe Huaxing
Ar s wrkrs jus p f cbrg?
govt cuts rats, now what will tbanks to xtnd crdit to SMes?
tan hui leng anD Kelvin [email protected]
A MONTH after the Government unveiled plans to
help loosen banks credit purse-strings for busi-
nesses, it is taking further steps this time, to
whittle down the cost of credit for Small and Me-
dium Enterprises (SMEs), who have been com-
plaining that loans are still hard to come by.
We are responding to feedback ... that compa-
nies are now trying to manage their costs. Interest
cost is clearly one of these elements, said Senior
Minister of State for Trade and Industry, Mr S Iswaran,who had
met with some 20 representatives from
the Enterprise Development Centres and Singapore
Business Federation.
The result will be, come tomorrow, a trimming of
loan interest rates by 1.25 percentage points for both
new and existing loans under three of the Govern-
ments business financing schemes including the
new Bridging Loan announced just last month.
The Government will also boost its current
50-per-cent share of the Loan Insurance Scheme
premium set at 0.15 per cent of the loan quantum
leaving enterprises with just 10 per cent to pay.
While some 13,540 existing loans amounting to
$554 million should benefit from the interest rate
cuts including 30 companies whose loans have
been approved since the enhanced loan schemes
kicked in on Dec 1 do the cuts go far enough?SMEsTodayspoke to
were generally welcoming.
We are at the point of our business where we are
looking to expand, and borrowing at a lower interest
rate means more cost savings, said director of Hock
Lian Huat Foodstuff Industry, Mr William Tan.Packing company
Greenpacs managing direc-
tor Susan Chong said it would be better if the quali-
fying criteria were lowered as well. Some start-ups
might have some difficulty securing financing from
banks and if they do not qualify for the Government
loans, they will be stuck in the middle.
On gripes that banks, which administer the
schemes, are still reluctant to loosen the purse-strings,
Mr Iswaran said he could understand lenders risk aver-
sion at this stage given the environment. They need
to take that into account in their credit assessments
and work out what level of risk they can take.
On their part, businesses need to know how
to articulate their business case to the banks, he
added. Its not business as usual, so (you) have to
be able to demonstrate where the cash flow is com-
ing from, how is the business being modified.
coSt of borroWing
Easing the pinch ong Dai [email protected] time a
downturn
strikes, teaching becomes a
popular career option, and it
is no surprise some parents
have expressed worries re-
cently about the quality of
incoming teachers ahead.
Yesterday, as the Minis-
try of Education (MOE) said
that it will ramp up new hires,
Education Minister Ng Eng Hen
had this message for potential
applicants: Only people withthe passion and aptitude for
teaching are wanted. They
must have these aspects. They
cant just want to be a teacher
because theres a downturn,
he said yesterday at an appoint-
ment ceremony for principals,
where he detailed his minis-
trys plans under the current
economic climate.
In all, some 7,500 teaching
and teaching-support jobs will
be available next year. MOE had
earlier planned to quadruple
the numbers of allied educators
to 2,800 by 2015 but will now
recruit ahead of schedule.
oy sw pass
d appy
>> continueD on page 2>> continueD on page 4
>> continueD on page 4
200 c s
d sdMoM sd.leong Wee Keat
tWeaKS froM toMorroWloan intereSt rateSDown 1.25 percentage
points for loansunder Micro-Loan, Bridging Loan and LocalEnterprise
Finance schemes (including for var-iable interest rates). New rates
for tenures of4 years or less >> 5%. More than 4 years
>> 5.5%
loan inSurance preMiuMSGovernment to raise its share from 50% to
90%
8/14/2019 Foreign Worker Issue
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news
Could the Government not simply lend
directly to companies?
In response to this suggestion, raised
earlier in a column by Today editor-at-large
Conrad Raj, Mr Iswaran, said it preferred to
work with the banks and let them do therisk assessments.
Because we are sharing risks with
the banks, we avoid any moral hazards as
the banks would also want to be satisfied
themselves that these are viable companies
with viable business propositions. Then the
Government comes in to mitigate the r isks
on the downside and make them a little
more willing to make loans, he said.
Forecast economist Vishnu Varathan
suggested that the authorities could also
take a leaf from the United States Federal
Reserve and securitise loans given out byfinancial
institutions.
If banks are tight on liquidity, they
could securitise bridging loans and pledge
these to the Government as collateral for
fresh funds. It acts like a credit expansion
scheme, he said.
Another way to free up more credit for
SMEs could be to set up a fund comprising
the Governments coffers and financial
institutions, with co-shared risks.
Companies intending to borrow
funds will have to fulfil certain criterias,
to prevent any unnecessary default risks
associated with companies that have weak
fundamentals.
This fund will only be used to make
loans to SMEs that qualify, said Mr Var-
athan.As to overall business costs, Mr Law-
rence Leow, president of the Association of
Small and Medium Enterprises, said firms
would prefer a cut in direct costs, rather
than trimming CPF contributions a pos-
sibility bandied about with wage guidelines
to be tweaked next month.
Companies have raised this with the
authorities and while there have been no
clear signals so far, Mr Leow thinks rental
cuts and tax rebates could be unveiled in
the Budget to be announced on Jan 22.
He also suggested allowing companies
to pay their taxes by instalments.
Asked if CPF cuts would be one of the
measures the Government is looking at,
Mr Iswaran said: I dont want to pre-empt
the Finance Minister but I think, in general,the point has been
made that the Gov-
ernment will continue to look at what is
necessary to work with businesses in these
challenging environment.
Development and China Nucle-
ar Industry Huaxing Construc-
tion claimed they were not
paid for three months and thatthey had been subcontracted to
other employers without their
knowledge. When approached
byToday, their employer, Mr Ye
Fuliang, declined to comment.
The China Nationals case
echoes another high-profile
case two weeks ago, when
179 Bangladeshi workers were
abandoned with months of
wages unpaid; their registered
employer is being probed for
illegally deploying them.
Today understands that
it is not uncommon practice
for contractors or employers
to bring in more workers thanthey need, then deploy them
out illicitly to another sector for
a kickback. But with the down-
turn and work drying up, these
excess workers are left sitting
on their hands.
Happily, for the 200 Chi-
nese workers, a MOM spokes-
person said late last night that
the dispute had been amica-
bly resolved the employers
yesterday banked in Septem-
bers wages into the workers
accounts and have pledged to
make good on all arrears by the
Chinese New Year, with the first
instalment next week. The par-ties have also reached an
under-
standing on other differences,
said the spokesperson.
Strong-arm tacticS
Meanwhile, the Bangladeshis
who had approached MOM
yesterday claimed they feared
repatriation by their employer
if they returned to their dormi-
tory. The group of 28 have been
sleeping along Desker Road for
the past three nights.
Some employers have can-
celled work permits even as pay
disputes are being settled with
MOM presumably to pressureworkers to cave in.
In October and Novem-
ber, 42 PRC workers from Xuyi
Building Engineering Company
approached MOM to recover
their salary arrears and resolvepenalty payments. According
to
MOM, the company unilaterally
cancelled the work permits of
six claimants, without apply-
ing for Special Passes to allow
them to remain here pending
the settlement of their claims.
The six would have thus flouted
immigration laws, and could be
jailed and fined.
MOM takes a serious view
of such conduct by the employer,
which jeopardises the concilia-
tion process, said a spokesman.
The employer was warned for
failing to pay its workers on time,
and its irresponsible conduct ofcancelling the permits.
What such examples show,
is that foreign workers situation
is quite precarious, in Madam
Halimah Yacobs words. They
can only work for one employer.
So when they dont get paid, and
they owe creditors back home,
they keep quiet, hoping that
things will get better. They cant
walk out of the job like the Singa-
porean can, find another job and
file a complaint with MOM, said
the MP who sits on the Govern-
ment Parliamentary Committee
(GPC) for Manpower.
She called on MOM to stepup enforcement against rogue
employers and to review the
foreign workers quota fixed
during times of good economic
growth to prevent similar sit-
uations from cropping up next
year and in 2010.
MP Denise Phua said more
agencies should be engaged in
solving foreign-worker woes.
The final, total solution needs to
be stitched not just by MOM, but
with the relevant foreign embas-
sies and other stakeholders like
employers federations and NTUC
from ensuring basics like food
and lodging, to job placementswhere possible, she said.
WedneSday december 31, 2008 today
>> continued from Page 1
Are these workers justthe tip of the iceberg?
>> tranSPort LoanS diVe b1
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coSt of borroWing
Easing the pinch
