SPEECH BY MR LIM HNG KIANG, MINISTER FOR TRADE AND INDUSTRY, AT THE OTC LABOUR LEADERSHIP INSTITUTE GRADUATION CEREMONY 2010 HELD ON SATURDAY, 20 NOVEMBER 2010, AT 10.00 AM, IN CASSIA BALLROOM @ DOWNTOWN EAST, 1 PASIR RIS CLOSE

Mr Tharman Shanmugaratnam, Chairman, OTC Institute Board of Governors

Mr Lim Swee Say, Secretary-General, National Trades Union Congress

Members of the OTC Institute Board of Governors

Ladies and Gentlemen

I am pleased to be here for this morning’s graduation ceremony. I would like to extend my heartiest congratulations to this latest batch of graduates from the Ong Teng Cheong Labor Leadership Institute for successfully completing your diploma and certificate programmes.

When some of you began your training programmes at the OTC Institute, Singapore was still in the midst of an economic downturn. Our GDP shrank 6.5% in the first half of 2009 and the unemployment rate was at 3.3%. However, with the support of the government’s Resilience Package and concerted tripartite efforts to save jobs, the labor market proved to be more resilient than in previous downturns, While there were job losses in the first half of 2009, employment rebounded quickly and by the second half of the year was recovering.

By the third quarter of 2009, the economy had also turned around. This did not happen by chance. With strong tripartite action and effective measures, we succeeded in cutting costs to save jobs. By taking advantage of the Skills Programme for Upgrading and Resilience, or SPUR, companies retained their workers and built up workforce capabilities. Unions, employers and the government worked together to make the best of a challenging situation.

Globally, we are now seeing encouraging signs of an economic recovery although at an uneven pace. In the case of Singapore, we have even emerged from this crisis stronger then before. Two days ago, my Ministry announced 10.6% growth in GDP for the Singapore economy in the third quarter and we expect the economy to expand by around 15% for the whole of 2010.This remarkable growth rate is however likely to be a one-off event. A more sustainable GDP growth for the long-term is 3 to 5%. This will still be a challenge considering the maturity of the Singapore economy, the continuous uncertain global economic outlook and intense competition for investment and jobs.

Given our small size and outward-oriented economy, we remain susceptible to volatility in the external economic environment. It is therefore important that we continue to build up our competitiveness, resilience and capability.

Developing our human capital and raising productivity levels will be key if we want to maintain our global competitiveness and achieve sustainable economic growth. In this regard, the government remains committed towards investing heavily in the continuing education of our workers. Likewise, considerable resources have been set aside to drive productivity. Equally important is the mindset and attitude of our workers. We must continuously upgrade ourselves and encourage companies to embrace innovation and continuous productivity improvement. A highly capable, disciplined and productive workforce, coupled with competitive companies, will give us an important edge over our competitors. The labor movement plays a big role in this effort by championing both workforce upgrading and productivity in our companies.

NTUC, and its affiliated unions, have an impressive track record in driving skills upgrading. Back in the early 1980s, NTUC conducted its BEST and WISE classes, as well as computer courses. In the 1990s, NTUC championed the Skills Redevelopment Programme. More recently, NTUC has set up the Employment and Employability Institute (e2i), and NTUC’s Learning Hub, which is the largest training provider in the adult education market.

NTUC’s efforts in promoting multi-skilling, multi-tasking and a productivity mindset among workers are laudable. In fact, back in the 1980s, I remember unions being at the forefront in promoting productivity. Indeed, our labor movement has played a key role in Singapore’s economic development over the years. With the movement’s support, Singapore has been able to embrace the continuous restructuring and upgrading of the economy over the past few decades.

Led by NTUC, our unions have been unconventional, creative and responsible in looking after the interests of workers. In the 1960s, our unions chose cooperative and consultative industrial relations, rather than confrontational and adversarial relations, with employers. Today, tripartism continues to be a key pillar of Singapore’s economic success. It is this strong partnership between the government, employers and unions, anchored by a set of common values, which has allowed Singapore to respond quickly when faced with a crisis; and capitalize on new opportunities.

And so to all the graduands here this morning, I urge all of you to apply what you have learnt into your roles as union leaders, industrial relations officers and industry practitioners. I am confident that with the unions working in partnership with management, Singapore’s future will continue to remain bright and promising. Thank you.