CRISIS RESPONSE IN SINGAPORE Upturning the Downturn

About Singapore Physical Size: 710.3 Sq Km Population: 4.99 million GDP: US$187.9 billion Per Capita GDP: US$37,690 Total Trade: US$529.8 billion About Singapore

Export Oriented = More Vulnerable GDP Growth (%) 1970s 1980s 1990s 2000s 4.4% 3.2% 2.9% 3.5% World

Export Oriented = More Vulnerable GDP Growth (%) 1970s 1980s 1990s 2000s 9.3% 7.5% 7.6% 4.9% S’pore 4.4% 3.2% 2.9% 3.5% World

Export Oriented = More Vulnerable GDP Growth (%) 1970s 1980s 1990s 2000s 9.3% 7.5% 7.6% 4.9% S’pore 4.4% 3.2% 2.9% 3.5% World

Export Oriented = More Vulnerable GDP Growth (%) 1970s 1980s 1990s 2000s 9.3% 7.5% 7.6% 4.9% S’pore 4.4% 3.2% 2.9% 3.5% World

Worst Global Recession in 60 Years GDP Growth (%) 1970s 1980s 1990s 2000s 4.4% 3.2% 2.9% 3.5% World

GDP 2008 2009 7.3 2.8 0.1 -4.2 -9.4

ST 15 Apr 09

% Source: ILO, Global Employment Trends, Jan 2010

3.2% 2007 2008 2009 Source: Ministry of Manpower, 30 Apr ‘10

Most Pro-Business Economy: Preserve Capacity Upgrade Capability

Most Pro-Worker Nation: Job is the best welfare Full employment is the best protection

Others: “Cut jobs to save costs” Singapore:

Priorities Set During The Downturn: Prevent Rapid Rise in Unemployment Avoid Massive Retrenchment Upgrade for Global Recovery

Job losses minimized in 2009, thanks to government action Preserving Capacity Jobs Credit Scheme S$4.5 billion Subsidies for 9% of payroll Equivalent of 1.7% of GDP BT 4 Jan 10 Job losses minimized in 2009, thanks to government action 16 16

90% Upgrading Capability Employers receive: Payroll Course Fees Turn excess capacity into new capabilities 17 17

Retrenchment == Unemployment Government: Provide Funding Union: Job Matching Job Fairs Training Employers: Provide Jobs 18 18

Management led by example – Took earlier and deeper pay cuts 3 Dec 08, Channel NewsAsia 22% pay cut for senior civil servants, ministers The Business Times 27 Nov 09 21 Jun 09 Reuters

Labour Movement Carried the Ground NTUC This Week 16 Jan ‘09 NTUC This Week 10 Jan ‘09

GDP 15.5% -3.2 0.6 4.0 7.3 2.8 0.1 -4.2 -9.4 Q1 2008 2009 2010

2010 27 May 2010, ST 27 May 2010, ST

2008 2009 3.3% 3.2% 2.3% 2.2% 3Q 2010 Source: Ministry of Manpower, 30 Apr ‘10

Labour-employer relations Topped BERI’s labour force survey for the past 30 years Source: BERI’s 2009 Labor Force Evaluation Measures (LFEM) report Labour-employer relations Ranking Country Index 1 Singapore 6.3 2 Switzerland 6.1 3 Denmark 6.0 4 Sweden 5.9 5 Austria 5.8 Best labour-employer relations Source: The Global Competitiveness Report 2009-2010, World Economic Forum

Tripartite Priority in the Upturn Sustainable and Inclusive 2-3% productivity growth National Productivity Fund ST 2 Feb 2010

National Wages Council calls for sustainable wage increases ChannelNews Asia 25 May 10 Wage increases based on business performance and prospects Future pay rises pegged to productivity growth Flexible wage structures

Year Source: Ministry of Manpower, Labor Force Survey

Singapore’s May Day Rally 2010 Tripartite Leaders United

Prime Minister Lee Hsien Loong “… because there is mutual trust between the Government, between the workers and the unions and the employers and they know one another… they know that we have to tackle this problem together because we are all in the same boat.”

“All the tripartite leaders are very mindful to put in the effort to enhance personal relationships to strengthen this common mutual trust. So you will find that we know each other very well; not just formally or officially but on a personal level.” Mr Gan Kim Yong Singapore Minister for Manpower

Without mutual trust, such measures cannot be implemented smoothly.” Mr Stephen Lee President Singapore National Employers Federation “As employers, we need workers to take painful but necessary measures such as wage cuts, shorter work weeks and temporary layoffs to help us cut costs and save jobs. But management must take the lead and show by example. Without mutual trust, such measures cannot be implemented smoothly.”

“The unity and trust of the tripartite partners has ensured that Singapore’s tripartism is strong not only in good times, but also bad times.” Mr Lim Swee Say Secretary General Singapore National Trades Union Congress

Most Pro-Worker Nation Most Pro-Business Economy Ride the upturn, Prepare for Next downturn

The Uniquely Singapore Way Tripartism The Uniquely Singapore Way