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Singapore Budget 2003
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  ANNEXES
 
 
 
 

 
 
Budget Speech 2003
   
Parliamentary Statement by DPM and Minister for Finance on Help Measures For Singaporeans and Businesses, 29 Aug 2003
 

Work Assistance Programme

 
32. Fifth, we will do more to help the unemployed. Unemployment numbers may go up for the next 6 months, even though the economy is showing signs of recovery. Beyond that, unemployment should start to come down, but with restructuring continuing, we cannot expect to go back to the 1% unemployment that we enjoyed before the Asian Crisis, when our economy was growing rapidly, and restructuring was not yet a problem.
   
33. Mr Ang Mong Seng suggested a $2,000 unemployment benefit. I am sure unemployed workers will welcome this, but the danger, of course, is that it will encourage many more people to become unemployed and collect the $2,000! The Government has to take a different, more practical, approach: we will go the extra mile to help you, but only if you are prepared to help yourself by getting a job and improving your skills.
   
34. We have been providing help through the Community Development Councils (CDCs). The CDCs provide short-term relief to individuals and families in temporary hardship, such as when their sole bread winner is retrenched. The CDCs administer an interim financial assistance scheme, which has been quite successful. They have the sensitivity and flexibility to personalise and customise the assistance, so as to distinguish those who really deserve help from those who should be able to fend for themselves. In FY02, the CDCs together spent $3.3 million helping some 10,000 people under this scheme. Within 6 months, 97% of the recipients no longer needed assistance.
   
35. To strengthen their efforts to help the unemployed, the CDCs will launch a new Work Assistance Programme (WAP). This will provide financial assistance to unemployed Singaporeans and at the same time help them find jobs.
   
36. The Work Assistance Programme will integrate employment assistance with the current interim assistance scheme administered by the CDCs. It will focus on low-income individuals who are fit to work. The amount of assistance will vary depending on each applicant's circumstances, but generally will not exceed $400 per month. Besides cash, the family may also receive targeted support, for example, schooling assistance for the children or a utilities grant. Such targeted support will address the most pressing needs of the family, and ensure that the assistance is put to good use.
   
37. In return for the assistance, beneficiaries will have to fulfil specific conditions. They must actively seek work. They must attend all job interviews arranged for them, undergo training to acquire new skills and accept any reasonable job offer. If they fail to secure jobs within 3 months, they will be assigned a case manager, who will provide more intensive career counselling and help them overcome any impediments to securing a job. The financial help will last for 3 to 6 months, because most recipients should be able to get back to work within that time.
   
38. Sometimes an individual may fulfil his obligations and cooperate with his case manager and yet not get a job. For such exceptional cases, the CDCs may consider extending the assistance beyond 6 months. We need to focus our help on those who are doing their best to help themselves, and not allow the scheme to become an automatic handout from the Government.
   
39. Some Singaporeans are unfit to work because of illnesses or disabilities. The CDCs will also continue to give them assistance.
   
40. If unemployment goes up over the next few months, more unemployed workers will need help. Therefore the Government will help the CDCs expand their Work Assistance Programme. We will allocate $40 million for this purpose. However, the most important thing is for those who find themselves out of a job not to lose heart, but to try to get back to work as quickly as possible.
   
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