By Leong Sze Hian / Columnist
I REFER to the article “Chipmaker Chartered to cut 500 jobs” (ST, Jan 31).
Chartered said that it will cut 600 employees, or 8 per cent of its workforce to save US$16 million a year.
540 of these employees will be from its Singapore operations. How many more are Singaporeans working outside of Singapore?
How much will Chartered receive in total for a year from the 12 per cent jobs credit on its total payroll?
The main focus of the $20.5 billion Resilience Package is to save jobs.Following the Budget announcement, there have been almost daily calls for everyone to band and work together to save jobs.
Since Chartered is majority owned by Temasek, which is the Government’s largest investment holding company, what message are we sending to other employers and Singaporeans? – that despite the jobs credit scheme and other measures, the financial bottom line is paramount over the main strategy that is supposed to save Singapore from its worst recession in its greatest hour of need?
If a wholly owned Government entity like Temasek does not take the lead to set the right example for others to follow, who else will?
NTUC Chief, minister Lim Swee Say said in the Parliamentary debate on the Jobs Credit Scheme (JCS) that “Workers (have) three top concerns. First, can I keep my job? Second, many are concerned (that) even if they keep their jobs, will they be able to keep their CPF? Third, workers are concerned that if they cannot keep their jobs, (can) they find another? (“Jobs Credit: A booster, not a wonder drug”, ST, Feb 5).
In my opinion, the greatest concern of Singaporeans may be losing their jobs or their business fails, and their money runs out before they can find an alternative.
The greatest obstacle to a recovery in a recession, may arguably be the fear of uncertainty, which leads to people and businesses not spending.
In the article “(Nearly) nothing to fear but fear itself” (Economist magazine, Jan 31), the International Monetary Fund’s (IMF) chief economist, Olivier Blanchard said that “Crises feed uncertainty. And uncertainty affects behaviour, which feeds the crisis”.
So, in my view, perhaps what Singapore needs is to focus on easing the fear of uncertainty of the general population – such as assuring Singaporeans that if they lose their jobs and run out of money, at least $450 a month per member in the household will be provided, instead of just saying that the various financial assistance schemes will help.
It has been said in the media that if the JCS saves 60,000 jobs, it would have cost the Government $75,000 per job savd ($4.5 billion divided by 60,000). The same $4.5 billion can provide $450 a month, for a year, to 833,333 Singaporeans ($4.5 billion divided by $450 x 12 months).
This may ease the fear and uncertainty, and hopefully lead to a faster economic recovery.
At the end of the day, perhaps only time can tell, whether NCMP Sylvia Lim’s proposal to give temporary cash aid to the jobless (“Give temporary cash aid to the jobless: Sylvia Lim”, ST, Feb 5), is a better alternative.
Singapore does not have un-employment benefits which is a dirty word in PAP’s vocabulary. This down-turn is due to the evaporation of external demand. There is nothing Singapore can do. Jobs will be lost till the world economy recovers.
Without un-employment benefits, what are the alternatives to those who have lost their jobs. Not much, besides falling on their savings, if any; rely on loans from family members & friends and seek government piece-meal assistance which is not transparent and not well publicised. Down grading of HDB/private apartments may not be a viable alternative because of the long lead-time and possible negative value.
Older Singaporeans as examplified by Mdm Tan when asked whether she would be checking the toto results by handphone “What? No manners ah. When minister talk, you must not even go to the toilet, how can check your phone?” New Paper dd 7 Feb page 4. Singaporeans have high regard for the ministers/government. Does ministers/government feel for the people?
Singapore government should consider NCMP Sylvia Lim’s proposal to give temporary cash aid to the jobless because there are no other alternatives for the poor jobless.
To help the jobless tide over, govt can start a short-term loan scheme with no interest levied.
Each jobless can borrow some money and promise to return once he has found a job.
The return will be in monthly installments.
Their CPF savings can be used as a collateral.
For those who have no or very little CPF savings, then their HDB flat can be used as a collateral.
For those who don’t even own a HDB flat, they can use their friend or relative as a guarantor.
The period of loan can be six months or one year, renewable every 12 months,
with a small payment of 1% as partial installment. Renewing of the loan can continue until that person finds a regular paying job.
I hope the govt can look into this proposal.
$450 so much? You want to eat in a hawker center, foodcourt or restaurant?
On a serious note, the government is always concerned whether the money used can help the economy to grow or not? They won’t just give money to help alleviate the pain of the common people. They prefer throwing money away in foreign investments than throwing it onto the citizens.
Tsk…today i was at TTSH for appt, then i browse ST cos the queue is damn long and i have nothing better to do, and that’s the last resort and 1 of the article was on LHL saying how JCS will be able to save job etc and hint at it will work. so guess what he say isn’t gonna com e true especially with chartered.
I believe they’ve got the cart before the horse. An evaporation of world demand = Sales is the cause not Costs. This is especially clear in the chip industry. I would prefer monetary help to those affected rather then JCS.
The adamancy of the leaders to offer a helping hand to the man in the street is blinding them in their decisions and choice.
Already these 600 + workers are left in the lurch with nothing on hand. Are the getting retrenchments benefits even? How long can that last?
JCS saves jobs????? ya, maybe saving all those govt linked companies to balance their books rather, right pocket out, left pocket in again, then all involved in those losses can now wash their hands off and everybody happy again.
580,000 American jobs were lost in Jan of ’09. The official number of job losses are 11 million, and the unofficial is 15 million. We are looking at an average of 40,000- 50,000 more job losses, more, for Feb’09 in America.
Consumer spending in America is down, no one is buying. Chartered has to retrench its workforce, to cut losses.
How much more will Chartered have to cut, to stay in business is left to be seen.
it has loss since when” anyone can enlighten me? So this is the excellent timing to cut jobs – all faults to be pointed to the financial crisis that happen now.
if i am not wrong, they are the 4th largest semi-conductor manufacturer wht has not been doing since who know when.
for those retrenched with benefits it is still not too bad. One wonder who many pple has loss their job without any compensation. Sigh…
that it is amazing how many tens of BILLIONS can be thrown into toxic banks for LONG TERM investments and not the same amount spent on it citizens to ride out these hard times.
Why the long term when we can’t even see what is right in front of us.
Without the people, do you think there is a future or even a tomorrow?
Instead of the JCS, the Government could provide jobless
- that did not receive retrenchment benefits – a cash grant
of $10,000 and an interest free loan of $10,000 per year
until he is reemployed, subject to some conditions to prevent
abuse. While this may appear generous, actually the amount
involved would be less than $4.5 billion, unless we are talking
of massive unemployment of half a million or more.
The argument we keep on hearing is whether the JCS or a
CPF cut is better. That is not the question. It is JCS or
other means of helping those that have been retrenched.
We all know that our CPF is a sacred cow for retirement and housing needs. Any tweaks to it upset the “infrastructure” of Singapore. So are our reserves. If we see the need to tap the reserves, in the smaller scheme of things, why cant they allow the citizens to tap on their personal reserves. I say, allow reasonable withdrawals for those that have lost their jobs. It will tide them over.
Only in Singapore, when you utilize the CPF to buy a flat, they actually keep track of the interest amount drawn down, so that when you sell your flat, you have got to pay back to your account the interests due. We got all our best brains to be bean counting for our stat boards so much so if you were to ask the man in the street any of our policies, you will get a glazed look, because we dont understand the policies.
Allow our retrenched colleagues to access their “reserves”
sorry if this is making light of a serious topic, but..
1) LHL sings the praises of JCS saving jobs
2) His wife fires 540
3) LHL fires his wife!
11) slohand2
A good analogy. CPF is our “reserves” and allowing us to tap on it during this extraordinary times is a good suggestion.
that is why we must ask the president what are his independant views on the JCS – vis a vis spending on the citizens who are retrenched.
As far as I know – it is welfare given to all companies, whether they need it or not.
And those who do not need it, it will line the pay packets of CEOs of SMRT / MNCs, and cash given out by govt will filter back to MNC HQ overseas.
To I Can Honestly Say . . .:
well, that’s because the poor Singaporeans are not assets in the eyes of g*VT.
They are starving/weeding them out…
in a slow and painful way
cruel right…
to Please Makes Sense :
Go ask any PRC Chinese.
They will tell you that their “CPF” contribution has an unemployment component.
Our version is so backward.
CNA:- How do you rate the 2009 Budget ?
(a) I’m not sure
(b)It’s has the right balance
(c)Too much for businesses
(d)Too much for families
(e) There could have been more
You see how polls answers are so carefully calibrated. How come no option which says (f) I don’t think it is a good budget
The JCS scheme confirms my contention all the time that the garmen is pro-employers.
If you, as a Singaporean has any trouble with the labour law or CPF and you see MOM and cpf Board you will find out over time that the civil servants and garmen are always on the side of employers.
So, for this serious downturn the garmen will give the workers only a little money so that they are very hungry and desperate and when the next upturn comes along they will work so hard that it is a matter of life and death and they will beat the foreign workers and foreign talent hollow.
pap wants Singaporeans to be superheroes.
I am already 69 and how hard physically can I work with the young foreign workers.
Suppose my general IQ is 125 and how can I beat the foreign talent and let me suppose he has an IQ of 150.
There is no land to go back to.
I have fish and sugar cane. I can rear chicken and ducks and grow vegetables.
Yesterday I netted some fish from my pond and I ate some and gave some to poor female students of the local uni. I live in the South Pacific.
Can Singaporeans go back to the land?
Where can the unemployed go to? Stare at the walls of his HDB flat!
chips?
even if temasek inc
would to start a francis of fish N chips thinggie
in the whole of singapore
it would windup bankrupt…
why is why they started to employ a REAL chip
from the tyre company
nothin beat a SAMSUNG chip
~period~
aiyoyo
getting more scary with more of such news on retrench…
how commoners to continue survive in this country?
ELITEs, pls come out & take actions (since ELITEs are fast as lightning)
or is it fast in take cover (which saf teach on day1)?
aiyoyo
The elites only know how to save their own jobs.
They have obviously no clue as to how to save other peoples’ jobs.
Otherwise they won’t be holding so many directorships all by themselves in order to maximize their own income, without the sense of giving others a chance to share the fruits.
There is an urgent and serious need now to create more new jobs and to provide for a way out for those who are jobless or going to be jobless.
Otherwise when the pressure is too great, there will be serious unrest in the society.
If the elites are still thinking that things will be alright, they had better think twice, three or ten times.
The time to act is now! Please do not hesitate and play the game of “Wait and See”.
Take the initiative and be proactive. Lead your people out of this bad times.
Display your true leadership colours now!
Job Credit Scheme for Chartered? I think Chartered prefer to implement their own business viable scheme also known as JCS (JOB CUT SCHEME) deemed more powerful and cost savings than Tharman’s JCS.
The no. of people getting retrenched or going to be out of job is climbing high as the each and everyday now, dunno how many more thousands will be affected in this year 2009, and the govt is urging us all to stay together and save jobs? How? instead of coming out with proper solutions to counter this problem, they are leaving the problem to you people to solve, then why are we still allowing them to be paid millions out of the taxpapers pocket?
A great solution–since the problem is lack of external demand esp from US which our brilliant leaders cannot do anything about, we should let LHL take over Obama’s job. Based on pay difference LHL is at least 6 times better than Obama. US goes into immediate turn around.World demand/economy recovers.
–Of course this in in exchange for the HC / the American Chip Goodyear swop.
Singapore would then have Obama at one-sixth the price we are paying and get “The Change that we Need”
THE AUDACITY OF HOPE
Temasek takes severe hit
Ho Ching’s resignation as CEO of Temasek Holdings would not cloud heavy losses of about 40 per cent at Singapore’s sovereign wealth fund amid the global financial market meltdown.
The Government Investment Corporation of Singapore (GIC) is also suffering similar heavy losses.
An investment analyst in Singapore said Temasek’s results will be released in April and he estimated that of its US$125 billion portfolio as of March 2008, Temasek would have lost 40 per cent, leaving it with about US$75 billion left.
As for the Government Investment Corporation of Singapore or GIC, the investment analyst said it would also lose more than a third of the value of its investment portfolio.
“GIC started the crisis with roughly Singapore $550 billion in reserves. My estimate is that it has lost about $190-$200 billion of that, leaving it with about $350 billion left. This amount is equivalent to 200 per cent of Singapore’s gross domestic product,” he added.
Read on…
http://nationmultimedia.com/2009/02/09/headlines/headlines_30095260.php
21) Act Now!
sorry, but the probability of that is near zero.
to #25 and all
It is not pathetic that we do not know exactly what is the situation. It is the people’s, the ruling party or the familees money. Are we democracy or a dictatorship. 4 plus million answerable to 84 or perhaps 3. We are getting screwed big time.
I just like to share my experience apply for jobs by IDA.
It requires candidates to go online and apply.
1. login via the ‘monster’-like portal with a email and password you registered with it.
2. Then it justs to the agency-IDA job portal.
3. Then you have to fill up the online forms. Many pages. Have to describe why you think you are up for the job etc. many pages.
It happens that there are several jobs from IDA.
But each time, I need to go through the same steps all over again and the forms are , as far as I have tried, the same.
I hope you get a picture of what I am rambling about.
I really someone can save me a job.
750m for ABCchildcare, almost all of the Australian investors knew that it was a melon. Someone suggested Temasek and bang we have a deal. I wonder if they heard abour due deligence. We have been talking so great about oursleves(only the one in power) that the Americans, Australians and Thaksin knew they could sell us a melon. With so scrutiny we have all the talent to buy melons
17) sicktothebones on February 9th, 2009 6.08 pm
Interesting observations.
Too bad, posting in un-Apathetic blog , you might, just might, not reach out to the majority of Apatheticos .
Just my personal opinion. Feel free to disagree.
29) P on February 9th, 2009 11.21 pm
Sometime, it makes one thinks whether all these investments losses are done . . . delibrately?
28) sharing an experience trying to save myself a job on February 9th, 2009 11.18 pm
While it is reasonable to have to login to apply, via the agency-linked portals,
it is quite unique that standard forms have to be filled repeatedly for the same candidate that has registered with them.
I also tried applying.
I was asked to describe my key competencies to the position applying. The word count should be approx 500 or 4000 max count.
and then you are asked other things like core values and work challenges etc etc etc etc.
The responses i typed before are not shown which means i have to enter all over again. And there are many questions like these.
To be fair, this is following some rules and regulations.
But it would be more convenient if this process can be made easier.
Case in point, when applying via the agency portal, i just click apply. and that is it.
My ID is registered with the agency and all info is stored there already. Very efficient. Fully utilize modern day technology and improve productivity.
just my 2 cents.
32) Tan Kim San ,
Agree with you that the intention should be good for the process of filling up forms per application.
What to do? need a job, got to follow their rules. when in Rome, just do the romans do.
we need to understand the gov philosophy when comes to “hang out”
why is hang out discouraged?
1) first and foremost, free money may erode work ethics or turn some people into loafers.
2) and let’s not assume everyone needs subsistence money during time of recession. after all, no one knows how long the recession will last. financial aids need to be given to those who really need help. those who need help can always look up their mp etc.
at the end of the day, those without backup money saved for raining days, the gov solution is for you to find another job or get by with a temp job. there are many jobs out there which singaporean shun will pay better than $450.
gov tells you to sweep your way out of the recession!
Lim Swee Say can’t bite his master’s hands. So he has to bark and wag his tail. It is time Singapore abandons its so-called Tripartitism because the NTUC has been selling out its members to fat capitalists mostly overseas – so-called foreign investors – who do not hesitate to line their pockets first with humongous payouts before retrenching 100s and 1000s of their minions. No country in the world has a trade exposure like Singapore (LKY said, more or less); and no country in the world has a trade union boss who is handpicked by the govt and is a Minister in the Cabinet. Let’s face it. Tripartism was invented to outmanouvre the so-called pro-communists unions back in the 50s/60s. It is now an anachronism! Look at the pained expression of LSS whenever he has to say something sensible. He ended up with his foot in his own mouth. We have seen how impotent he was in DBS case. Now CSM and a lot more.
I believe that a time will come when some PAP MPs who believe in the humble peasant, moves over to Worker’s Party and start speaking direct from their heart and help the common citizen.
That will signal the start of the bipartisan parliament. I believe Low TK and Sylvia Lim has proven themselves well. More PAP members should join them, especially after seeing how calluos the cabinet ministers are towards our poor Singaporeans and how geneours they are to all Employers with their free $4.5 bil job credit scheme – no strings attached.
Come on – do it!
Together? Who is together with who?
Who are actually saving jobs for the workers? NTUC?
NTUC as a labour movement has failed miserably and has betrayed the trust of the labourers and workers. It is a fact that it is more interested in its own big monopolised enterprises making huge profits and paying their top echelons big fat pays and bonuses by the millions every year.
How much does LSS gets every year?
How many sources of income does he has – as a minister; as the NTUC Chief and as an MP and also holding Chairman and Director posts in other govt-linked companies?
How many millions of dollars does he get a year?
If he is really interested in saving jobs for the people, why don’t he relinquishes some of his appointments and positions to others so that more people down the line can benefit?
31) tiredsingaporean on February 9th, 2009 11.26 pm 29) P on February 9th, 2009 11.21 pm
Sometime, it makes one thinks whether all these investments losses are done . . . delibrately?
A stupied comment.
That shows you the frustration that common people are feeling and have no recourse to any human accountability and yet have to bear the burden of losses via taxes.
It is still better that frustration is channelled through blunt, rude and sometimes nonsensical talk – a handy outlet for this kind of realease rather than manifestation in the form of dangerous acts.
I am uneducated but I think I can count on my common sense.
My friend told me that this ‘Chips’ guy was skiing when BHP gave him the post of their CEO. Whoa!! High flyer. Must be smart and expensive.
During this downturn, if we can save money on high salaries we should, right? My
question is this: BHP is also looking for super talent. Why didn’t they offer Ho Ching the post? Afterall, she’s some super person as mentioned by Goh Chok Tong.
How about some reverse engineering. Can we get someone as good as Ho Ching. Maybe, we can. Just trace the roots of their career path and we should be able to locate the tree. Ahhh! She was SAF officer! From here to Temasek CEO. Can we find any Generals to take over perhaps. No? They are no good enough?
Then what is the basis of Ho Ching’s appointment? Tell me,please.
You don’t send a storeman to denotate a bomb, do you? Just because he counts the number of bombs in your store doesn’t qualify to disarm any bombs. However, if you do that you will get a major disaster. Did this happen in Temasek?
Perhaps Ho Ching should know that just because GCT mentioned ‘more good years’ doesn’t mean hiring a goodyear. Anyway, please tell me what Ho Ching was doing when they decided that she should be CEO. Conducting a Standby bed?
35) kingfisher on February 9th, 2009 11.55 pm
The cold hard fact we have to Admit , whether we agree or not,
is that
sporeans have CHOSEN the path we now are on.
The People had spoken and have spoken.
Different leaders may have different capabilities and styles.
The People chose to have this system.
I am neutral. Do not be mistaken that I am not ok with this system. I am neutral.
Fact is Fact. Like for example, I am born handsome, what to do? that is a fact we cannot change.
Given the help is reportedly given to the jobless,
I WONDER can a portal publish how effective these program are
by way of showing, how many applied, how many actually received a job From the help given?
To clarify, helping to find job may not mean job is found.
To be fair, I trust and trust that such programs will be effective. Afterall, money is spent on such thingies.
I digress:
Last year my aunty said she wanna help me find a girl friend. up to now, no girl is found for me.
To all people chasing after money and capitalism..
If money can solve all problems, then in the first place, there won’t be such crisis at all.
They should respect the law of nature – the nature of cyclical.
I think #31 is not a stupid comment.
I know a few people who think that some acquisitions are really bloated affairs that enable some parties to siphon monies out somewhere.
Mind you, they are not aunties and ah peks. They are in the finance and wealth management industry.
Why are Singaporeans so confident the first family is not doing a CHen-shui-bian wayang?
You audited their books meh? Tharman tells you to just TRUST. Isn’t that fishy enough?!
Is there a solution to make sg less prone to recession given its reliance on Exports?
We know the constraints.
I just curious to know is there a Solution to be less reliant on Exports?
Constraints exist for any country. All countries have their own constraints.
Well, solution is needful.
Else, does it mean,
every now and then there can be recession and each time worse than the other?
Each time, economists and hindsight useful?
If someone knows how Recession comes about, is someon able to pre-empt with a solution based on Regulatory capabilities ?
i no no wor.
In support of unemployment insurance: http://www.facebook.com/group.php?gid=64680475154
What is Job Security when no one can prove Beyond any Reasonable Doubt
the actual exact cause of any Financial Crisis?
At most , they call it Hindsight. But what is that? Does hindsight means the Truth?
How great are the Regulatory systems ?
Lastime, every 10 years.
Nowtime, every 5 years.
Futuretime, every ?
I think random. Any year crisis can come again, and meltdown even bigger since no one really knows for sure. A bit sure is not sure. Very sure is not sure. Guranteed, Comfom = sure.
Job security or Security Job?
Retirement plans or evacuation plan for retirement ?
Why focus on Saving jobs?
Just Create Jobs.
From the comments above, many of you have great ideas of how to help the unemployed. Sadly, our million dollar ministers are sleeping and had no time to read these blogs. Helping those citizen in need is definitely not gahment policy because that would create a dependence culture. It is a believe held by PAP since time immorial. Social assistence in any form is regarded as social welfare. It is a political philosophy that was long rejected by PAP. There are people who still live in the past and could not keep up with the changing time. Sadly we have one and worst of all He is the boss. This recession is bad but news from England say that the green shoot of economic grown was detected in the last quarter report by Bank of England. Whether, USA is showing similar sign is a different question. We just hoped this recession is a short one and export start to pick up soon. God Bless.