1. CRISIS RESPONSE IN SINGAPORE Upturning the Downturn

2. 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

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

4. 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

5. 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

6. 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

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

8. GDP
2008
2009
7.3
2.8
0.1
-4.2
-9.4

9. ST 15 Apr 09

10. %
Source: ILO, Global Employment Trends, Jan 2010

11. 3.2%
2007
2008
2009
Source: Ministry of Manpower, 30 Apr ‘10

12. Most Pro-Business Economy:
Preserve
Capacity
Upgrade
Capability

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

14. Others:
“Cut jobs to
save costs”
Singapore:

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

16. 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

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

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

19. 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

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

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

22. 2010
27 May 2010, ST
27 May 2010, ST

23. 2008
2009
3.3%
3.2%
2.3%
2.2% 3Q
2010
Source: Ministry of Manpower, 30 Apr ‘10

25. 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 , World Economic Forum

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

28. 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

29. Year
Source: Ministry of Manpower, Labor Force Survey

30. Singapore’s May Day Rally 2010
Tripartite Leaders United

31. 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.”

32. “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

33. 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.”

34. “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

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

36. The Uniquely Singapore Way
Tripartism
The Uniquely Singapore Way