The new ‘S’ Pass scheme allows the companies to hire these skilled workers. The criterion is not just the $1,800 salary floor, but also the fact that the worker must have an acceptable tertiary qualification, that means, a degree. We are prepared to be flexible what the degree is, but it has to be an acceptable tertiary qualification. So we are talking about qualified trained people. And furthermore, we have put in place control mechanisms. It is not a blank cheque. We have a 5% quota. We have a $50 levy. It is not onerous. But it is an instrument which is in place and a tool with which we can manage the demand if we need to tighten or loosen, and we can adjust. So we do not have to worry that we are going to be flooded with ‘S’ Pass holders.

Miss Olivia Lum suggests that we vary the quota depending on the sector and the type of activity. I think this is the way forward if we are going to compete and to seize opportunities. We need flexible systems where a company can get quick access to skilled workers, whether it is local or foreign, to meet new opportunities and business demands.

Let me give you another example. This is not ‘S’ Pass, but another example of where we have to be flexible because there is an opportunity which we have created. We signed the US-Singapore FTA (USSFTA). As a result, we have given a new lease of life to the textiles industry. We thought we had left textiles behind. But now with the USSFTA rules of origin, preferential access, we have an advantage, and textile companies want to come to Singapore now to take advantage of our tariff savings. But the window of opportunity is small because other countries are also signing FTAs with America and negotiating FTAs with America, and they will secure the same tariff preferences. So we have to move quickly to get the companies here. How do we do that? All our old textile workers have retired. So we need to help our companies ride on our competitive advantage quickly and gain a headstart. We do not have enough Singaporeans, and those we have are not going to be able to pick up the skills overnight. So MOM will exercise flexibility for these companies to bring in additional skilled foreign workers during this ramp-up phase, so that they can start operations immediately. And, over time, Singaporeans can learn new skills and take up the jobs.