SINGAPORE: Most households in Singapore remain financially resilient amid the COVID-19 pandemic, although those that are highly leveraged or employed in badly hit sectors may be more vulnerable as economic uncertainties persist, said the country's central bank on Tuesday (Dec 1).
In its annual financial stability review, the Monetary Authority of Singapore (MAS) also urged households to exercise prudence when taking up new debt or committing to property purchases.
It noted an uncertain outlook for the Singapore economy that “could have dampening effects on income streams”. It also expects resident unemployment to “remain elevated” next year and recovery in the labour market to be drawn out.
MAS said it recognises that some homeowners could face difficulties servicing their mortgages and has worked with the financial industry to roll out relief measures earlier this year. These measures were recently extended to support cash-strapped individuals and businesses until next year.
About 36,000 mortgage relief applications have been approved and 8,700 individuals were granted revolving unsecured debt relief as of the third quarter.
“Given the uncertain economic outlook, households should avail themselves of these support measures if needed and factor in possible volatility in future income streams when considering large purchases and loans,” the central bank said in its report.
“Whenever possible, they should also continue servicing or consolidating their existing obligations to enhance resilience against unexpected shocks.”
The report said Singapore’s household balance sheets were “relatively healthy” at the onset of the pandemic, reflecting the financial buffers built up over the years.
Household net wealth rose to 4.4 times of gross domestic product in the third quarter from 3.8 times a year ago, it cited as an example.
“While the increase is partly due to the fall in GDP, asset values continued to hold up despite the economic slowdown,” MAS said.
“Further, liquid assets such as cash and deposits continued to exceed total liabilities, providing households a financial buffer against income shocks.”
Its simulations also suggest that Singapore households’ debt servicing burden remains manageable under stress.
Government transfers and relief measures have mitigated the impact of a sharp fall in employment and incomes in the first half of the year, the central bank added.
SOME RISKS
But leverage risk has edged up even though growth in overall household debt moderated.
MAS said aggregate household debt has continued its downward trend since the introduction of cooling measures in July 2018, but nominal GDP fell by a larger margin due to the pandemic.
As a result, household debt as a percentage of GDP rose from 63.1 per cent in the first quarter to 65 per cent in the April to June quarter before hitting 67.1 per cent in the third quarter.
Other indicators that were mentioned include the credit risk profile of housing loans. This has remained sound, with macro-prudential measures encouraging prudent borrowing and improving equity buffer.
But as household resilience is tied to employment and income, credit risk for housing loans could increase further if the economic downturn persists, said the central bank.
The unsecured credit charge-off rate - a leading indicator for credit quality of housing loans - has crept up in the third quarter, suggesting that more households could face difficulties in housing payments, it added.
“Close monitoring of housing loans from more vulnerable households is necessary in the upcoming months given the expectation that the labour market recovery will be protracted.”
Turning to the property market, the report noted how rentals for private homes have moderated alongside the increase in vacancy rates.
Vacancy rates for private residential properties rose from 5.4 per cent in the second quarter to 6.2 per cent in the third quarter. Rentals declined for the second consecutive quarter during the July to September period, as the private residential property rental price index fell by 0.5 per cent.
The weakness in rentals was observed for both landed and non-landed properties.
“Should demand for rental properties continue to fall, borrowers relying on rental income to meet their mortgage instalments on investment properties could face difficulties in repayment,” said MAS.
“Prospective buyers should accordingly factor in the possibility of further weakness in rental income when committing to purchases of investment properties.”
In the 112-page report, the central bank also urged local corporates and banks to stay vigilant and prudent as an uneven economic recovery will “impinge on jobs and corporate profits”.
“The risk of financial stresses remains during this protracted recovery period. Continued vigilance and prudence therefore remain warranted,” it wrote.
アストラゼネカ株式会社と小野薬品工業株式会社は11月30日、選択的SGLT2阻害剤フォシーガ(R)錠5mg、10mg（一般名：ダパグリフロジンプロピレングリコール水和物）について、標準治療を受けている慢性心不全（以下、心不全）に対する効能または効果の追加承認を、2020年11月27日、厚生労働省より取得したと発表した。今回の承認は、2型糖尿病合併の有無に関わらず、左室駆出率が低下した心不全を対象とした第3相DAPA-HF試験の結果に基づくもの。同試験の結果は、2019年11月、「The New England Journal of Medicine」に掲載されている。
Having an early start to planning for your retirement is key to having peace of mind in your golden years. Take the guesswork out of the equation as CPF gets you started with your retirement planning. Here are some CPF numbers you need to know.
This is the amount you can expect to receive every month if you join CPF LIFE with $272,900 in your CPF Retirement Account (RA) at the age of 65. This may seem to be a big sum of money, but with attractive CPF interest rates, you can achieve this by setting aside $181,000, the current Full Retirement Sum, at the age of 55. For higher payouts, you can top up your RA.
There are three CPF LIFE Plans: Escalating, Standard and Basic Plan. Ask yourself whether you prefer a monthly payout that increases each year to help you cope with rising prices, or a fixed budget even if it means being able to buy less as things get more expensive as the years pass. Plan ahead and build up your CPF savings to meet your retirement goals.
*Based on the CPF LIFE Standard Plan computed for a CPF member turning 55 in 2020.
You can start receiving the monthly payouts any time from the age of 65.
However, if you do not have immediate needs, you may wish to defer receiving your payouts. For every year that you defer, the payouts will increase by up to 7 per cent. This will give you up to a 35-per-cent increase in monthly payouts if you choose to start receiving them at 70.
You have until the age of 70 to start your payouts, after which they will automatically begin.
The Government helps you grow your CPF savings by paying good interest.
Singaporeans who are 55 and above earn 6 per cent on the first $30,000 of their total CPF savings, and 5 per cent on the next $30,000.
Boost your retirement savings by making small and regular top-ups to your Special Account before you turn 55, and Retirement Account afterwards.
Adding just $5 a day to your CPF savings will net you over $35,000** in 15 years with the power of compound interest.
The earlier you top up your CPF accounts, the more you will benefit.
**Computed using the base interest of 4 per cent per annum on your Special or Retirement Account.
Article From & Read More ( When do CPF payouts start? 3 things you need to know when planning your retirement - The Straits Times )
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All eyes on OPEC+ meeting as markets await group's decision over oil production cut extension
This week: Uncertainties surround LNG winter demand, metals players to take cue from China's manufacturing data, and toluene term talks for 2021 underway.
But first -- Asia, home to the world's largest crude buyers, will focus on the OPEC+ ministerial meeting on Dec. 1, where discussion will focus on the current market conditions and the group's coordinated action in 2021.
Decision made at this meeting will give direction to crude prices. Brent crude prices have pushed near $50/b in recent days - the highest levels since March.
In mid-November, an advisory panel of delegates recommended delaying the group's supply increase for up to six months, given the strong consensus view that surging COVID-19 cases in many western countries and the revival of Libya's crude production will pressure oil prices through early next year.
At the same time, vaccines in development have demonstrated strong preliminary testing results. This is buoying hopes for an oil demand-boosting end to the pandemic if the injections become widely available in 2021.
So, here's our social media poll question for the week. Will the OPEC+ extend the output cut in the first half of 2021? Share your thoughts on social media with the hashtag PlattsMM.
Still in oil, Beijing is expected to soon release the first batch of 2021 oil import and export quotas.
The crude import quota allocation will give an indication of China's crude appetite in the first few months of next year. The Ministry of Commerce has lifted the import quota limit volume by 20% to 243 million mt for 2021 from this year, setting an upward tone.
But questions surround export quota trends for gasoline, gasoil and jet fuel, as over 10 million metric tons of allocations are unlikely to be used this year due to lower global demand.
Now, a decent report on China's November manufacturing data could spur sentiment and provide more buying confidence in the metals and raw materials space. Seaborne iron ore prices have been getting back to around 130 dollars per metric ton CFR China. Restocking and some supply tightness could further support prices this week.
Tensions between China and Australia around coal imports has heightened, leaving millions of tons of Australian coal are sitting on boats off Chinese ports unable to land.
Australian thermal coal, on the other hand, could see strong demand from India and Japan amid supply woes from other high-CV coal origins such as Russia and Colombia.
In Indonesia, Kalimantan thermal coal prices could maintain its upbeat momentum on the back of a slew of Chinese seaborne procurements with additional import quotas released for the remainder of 2020.
In LNG, winter demand is in focus after spot prices jumped last week due to supply disruptions.
South Korea's LNG demand and imports could get a boost from Seoul's announcement to close of 9 to 16 coal-fired power plants in the country from Dec. 1 to Feb. 28 to reduce pollution during the winter period.
South Korea and Japan expect below-average to average temperatures this winter. Cooler weather traditionally supports LNG consumption but pandemic resurgence in both countries could dampen demand.
In petrochemicals, toluene producers in the Far East vie to ink higher premiums next year. This is mostly a reaction to Taiwan's CPC sealing a premium levels in the 20s per metric ton versus Platts FOB Korea toluene assessment for 2021 term supply. BUT traders were reluctant, and this resulted in a stalemate on the term talks. The FOB Korea toluene physical price rebounded to 446 dollars per metric ton on Nov 26, posting the strongest level in eight months.
And finally in shipping, rates on some East Asia routes are expected to hit fresh one-month high as China is estimated to send one million b/d of refined products to overseas.
At a time when refineries across East Asia are cutting output due to poor margins and sourcing the required products from elsewhere, this implies that those Chinese barrels may find their way to Singapore, Japan and South Korea and support clean tankers freight.
Thanks for kicking off your Monday with us. Stay safe and have a great week ahead!
SINGAPORE - From Tuesday (Dec 1), anyone who needs a Covid-19 polymerase chain reaction (PCR) test will be able to get one from approved private clinics.
Those seeking tests could include companies and people requiring pre-departure testing before travel. The latter group will no longer be required to seek approval from the Ministry of Health for such a test.
Before this, members of the public who were not unwell and did not need to meet specific testing requirements, such as pre-departure and pre-event testing, could not request to get tested for the coronavirus.
"We have to be mentally prepared for that and be ready to ensure that even if the local cases in the community were to rise, they do not form large clusters that are out of control. The key to doing that is to step up our testing capabilities, which we are doing and now we are making testing more accessible to everyone," said Mr Wong, the co-chair of the multi-ministry task force tackling Covid-19 along with Mr Gan.
Those who request tests at these providers under the new arrangements will have to call the clinic ahead of time to book an appointment for their swab.
They will also have to pay for the tests, which will not be subsidised.
Mr Gan said: "We hope that through making available testing capacity from the private sector, there will be competition and there'll be more supplies available. And by doing so, we will ensure that the price they offer will be competitive, and that (it) will reflect the true cost of the test."
Doctors told The Straits Times they would be charging rates of about $200, including GST, for the test.
Dr Dale Lim, family physician at The Tenteram Clinic in Toa Payoh, said that he is not expecting an increase in demand for the tests until more people need to travel.
Dr Lim's clinic has conducted about 30 swabs each week under the Swab and Send Home programme (Sash). The Sash programme was implemented at around April this year, allowing patients who met certain criteria to be swabbed at polyclinics and some private clinics. Previously, all swab tests for Covid-19 were done at hospitals.
However, Dr Aziz Noordin, a family physician at Tampines Family Medicine Clinic, said his clinic has stocked up on kits in anticipation of a rise in demand.
This will come as more people begin to take part in activities such as clubbing and social events as Singapore opens up.
"I expect people will come for testing for peace of mind, but... the price may also be a barrier," he said.
Meanwhile, Healthway Medical Group has made testing available at 38 clinics, up from five in August.
Dr John Cheng, head of primary care and family physician at the group, said it has already seen a 40-50 per cent increase in patients coming in for swabs since August, and has been working closely with major laboratory providers to ensure an adequate supply of test kits over the last few months.
"Having anticipated this surge in demand for testing facilities in the months ahead, we are adequately stocked and prepared for a higher demand for PCR tests. We will also continue to monitor the response and restock accordingly," he said.
SINGAPORE - When Singapore entered the circuit breaker period in April, home-grown eatery Swee Choon Tim Sum Restaurant saw its sales plummet by around 30 per cent, while profits declined by about 40 per cent.
Before the Covid-19 pandemic, it often had snaking queues outside its Jalan Besar outlet.
To minimise its losses from dine-in sales, the restaurant turned to online sales and continued to serve customers using food delivery services, said Minister for Trade and Industry Chan Chun Sing on Monday (Nov 30) during a visit to Swee Choon.
It also stepped up on digital marketing and tapped additional food delivery platforms to reach more customers, with support from Enterprise Singapore's Food Delivery Booster Package to subsidise delivery costs, said Mr Chan.
The package was introduced in April, during the circuit breaker, and covered part of the commission charged by delivery platforms FoodPanda, Deliveroo and GrabFood.
Mr Chan said these efforts have helped to increase Swee Choon's sales from food delivery significantly, from less than 1 per cent to around 60 per cent of its existing average monthly revenue during the circuit breaker.
He added that while dine-in has resumed, food delivery sales continue to "contribute about 25 per cent to 30 per cent" of its monthly revenue, he added.
Adopting digital technologies has also helped Swee Choon understand where its customers order their food from, so that it can make better decisions about opening future outlets, said Mr Chan.
Mr Ernest Ting, the third-generation owner of Swee Choon, said the 58-year-old restaurant intends to open two more cloud kitchens, on top of the first one in Tampines that opened last week.
"There are plans to go up north in the Sengkang, Punggol area, and to the west. So these are three clusters that we have identified in the last few months where we want to have cloud kitchens," he added.
Cloud kitchens are centralised kitchens where two or more restaurants are located in the same space for delivery services.
On Monday, Mr Chan urged the food and beverage sector not to wait for the Covid-19 situation to blow over before thinking about new business models.
"Use the Covid-19 crisis, turn it into opportunity," he said.
Article From & Read More ( How Swee Choon dim sum restaurant turned Covid-19 crisis into a business opportunity - The Straits Times )
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SINGAPORE: Some segments in the food and beverage (F&B) sector are still seeing slow recovery amid the COVID-19 pandemic, Trade and Industry Minister Chan Chun Sing said, reiterating the need for F&B companies to transform and diversify their revenue streams.
“Recovery remains slow for some segments, including outlets in the Central Business District and tourism-focused areas, as well as catering companies,” he said in prepared remarks on Monday (Nov 30) after visiting the Swee Choon dim sum restaurant in Jalan Besar.
Despite this, Mr Chan highlighted that many food services companies are “on a path of steady recovery”, with revenues back to around 70 to 80 per cent of pre-pandemic sales.
“To seize business opportunities in the new operating environment, F&B companies must embark on transformation efforts to diversify into new revenue streams,” he added.
“Companies need to accelerate their efforts in digitalisation, productivity, innovation and internationalisation to remain competitive.
“They also need to continue to build their human capital capabilities through, for instance, training and job redesign efforts to support their business transformation needs.”
Companies that have done better are those that have "quickly" pivoted from a physical store concept to adopt digital strategies, compared to others that "perhaps are slower" to do so, Mr Chan told reporters.
"Those who have done well are not waiting for COVID to blow over. Those who have done well are establishing the foundations now in the midst of COVID for their recovery," he said.
"Use the COVID crisis, turn it into opportunity, ask ourselves: How can we continue to serve customers? Because if we can serve customers during a COVID situation, then we must certainly be able to serve customers even better after the COVID situation.
"And when the rest of the world are playing defensive and consolidating, we are constantly on the lookout, to see how we can expand our market presence and service more customers even beyond Singapore, beyond COVID."
This comes as total F&B sales fell by almost 30 per cent year-on-year in September, mainly due to low demand for event catering. The food services sector contributes to 1.1 per cent of Singapore’s gross domestic product, and employs about 5.5 per cent of its workforce.
DIGITALISING OPERATIONS
COVID-19 has accelerated digital adoption in the F&B sector, Mr Chan said, with companies using digital tools to operate more efficiently and effectively. For instance, more businesses have turned to online food delivery services, he said.
The percentage of online F&B sales out of total industry sales had increased from 9.8 per cent in January to 44.6 per cent in May, when the “circuit breaker” was in place, he said. The current figure remains higher than pre-circuit breaker levels, at 20.4 per cent as of September.
The F&B sector has also shown “strong interest” in adopting IT solutions under the Productivity Solutions Grant, Mr Chan said, with more than 2,700 applications from January to October. This is four times the number of applications in the same period last year.
“Companies like Swee Choon that adapted quickly have been able to reap the rewards from being an early-mover,” Mr Chan said, highlighting that it quickly pivoted online after profits fell by about 40 per cent during the onset of the circuit breaker.
“Swee Choon ramped up on digital marketing and tapped on additional food delivery platforms, such as FoodPanda and Deliveroo. Enterprise Singapore has also supported Swee Choon with its Food Delivery Booster Package to subsidise delivery costs.”
The package has helped more than 13,000 F&B establishments reduce business costs of listing on food delivery platforms to diversify revenues and build capabilities.
These efforts helped Swee Choon increase sales from food delivery “significantly”, Mr Chan said, from less than 1 per cent to around 60 per cent of its existing average monthly revenue during the circuit breaker.
“With the increased revenue from food delivery sales, Swee Choon boosts its overall revenue to pre-COVID level, amidst seating capacity restrictions due to safe management measures,” he added.
REDESIGNING JOBS
As F&B companies digitalise and automate their processes further, Mr Chan said there is an opportunity for them to redesign jobs and make these roles more attractive for locals, reducing the sector's reliance on foreign manpower.
The minister pointed to how Swee Choon’s digitalisation of its procurement and inventory systems through a cloud-based platform helped simplify processes and create job redesign opportunities.
“Chefs and kitchen assistants, for instance, no longer need to manually call or text various suppliers to make orders, as orders can be sent digitally through the mobile apps, where purchase orders would be automatically consolidated,” he said.
“The man-hours saved have allowed their employees to dedicate more time for research and development in their core work and provided more favourable working conditions. The back-of-house employees would have otherwise experienced a high workload.”
As of mid-November, Mr Chan said more than 1,100 workers from more than 30 companies have completed or are undergoing reskilling through Workforce Singapore’s Job Redesign Reskilling Programme for Food Services, which started in April.
SkillsFuture Singapore also provides improved course fee subsidies and absentee payroll for short-form or modular courses on culinary arts, process innovation, cost and quality control, as well as digital marketing.
NEW BUSINESS MODELS
Beyond tapping Government schemes on building digital marketing and digital technology capabilities, Mr Chan encouraged F&B companies to test out new business models, innovate and capture growth opportunities.
This includes setting up in central kitchens around Singapore as a mode of expansion, and innovating products to diversify revenues and create opportunities for export, he said.
For example, Swee Choon uses a cloud kitchen to serve more customers and reduce delivery, and it has developed a new line of frozen dim sum products to be sold on its website and e-commerce platforms.
Mr Chan said F&B companies can tap on FoodInnovate, a multi-agency initiative led by Enteprise Singapore, for knowledge and infrastructure resources to drive food technology and innovations.
“This shows that there are still growth opportunities for F&B companies that are willing and able to adapt, transform, relook their business models and product offerings,” he added.
While Mr Chan acknowledged that the F&B sector’s road to recovery could be challenging, he said companies, regardless of size, can seize new growth opportunities.
“By transforming, innovating, building up new capabilities, I am confident that our F&B sector can remain competitive and emerge stronger when the situation gets better,” he stated.
Article From & Read More ( F&B outlets in CBD, tourist areas seeing slow recovery; businesses need to pivot online: Chan Chun Sing - CNA )
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SINGAPORE - Consumers will soon be able to transfer funds from their bank accounts to mobile wallets, and between such e-wallets, in a faster and more hassle-free way.
This comes as two major funds transfer services will open up to non-bank financial institutions (NFIs) from February next year, in a significant step towards making digital payments here more seamless.
NFIs that are licensed as major payment institutions will be allowed to connect directly to Fast (Fast And Secure Transfers) and PayNow, said the Monetary Authority of Singapore (MAS).
These NFIs include Grab Financial Group, which operates mobile wallet GrabPay; Razer Fintech, the financial technology arm of gaming firm Razer; and e-wallet Singtel Dash.
The move will allow users of NFI wallets to make real-time funds transfers between their bank accounts and e-wallets, as well as between various e-wallets.
Most e-wallets currently require users to top up their funds using debit or credit cards, and do not allow transfer of funds between e-wallets.
With the change, a customer can choose to transfer funds via Fast or PayNow from his mobile banking app or internet banking platform to top up his mobile wallets, instead of keying in his credit or debit card details.
MAS managing director Ravi Menon said the move closes the “last-mile gap in Singapore’s e-payments journey”.
He said: “Consumers who may not have ready access to debit or credit cards to fund their e-wallets will now have the option to do so directly through their bank accounts.”
Merchants are also expected to benefit as they will have a larger market of consumers than before for receiving payments instantly, said Singapore’s central bank.
Businesses that partner any of the 23 Fast or nine PayNow banks, or e-wallets that have traditionally been closed-loop ecosystems, will soon be able to receive real-time payments from users of other e-wallets or mobile banking applications that will be joining Fast or PayNow.
The nine participating PayNow banks are Bank of China, Citibank, DBS Bank, HSBC, the Industrial and Commercial Bank of China, Maybank, OCBC Bank, Standard Chartered Bank, and United Overseas Bank.
As for the mechanics of the initiative, NFIs will be able to connect directly through a new Application Programming Interface (API) payment gateway developed by the Direct Fast Working Group.
The group is guided by the Singapore Clearing House Association and the Association of Banks in Singapore (ABS), which govern Fast and PayNow respectively.
ABS director Ong Ai-Boon said this is the first time the industry has opened access to these two important e-payment platforms to non-banks.
“Fast and PayNow adoption rates have exceeded expectations and we are confident that the addition of new players will help accelerate the national path towards a less-cash economy,” said Mrs Ong.
Fast transaction volumes averaged more than 12.5 million per month from July to September. Monthly transaction volumes for PayNow made up almost half of all Fast transactions.
Mr Lawrence Chan, chairman of Banking Computer Services, which operates Fast and PayNow, said: “The successful launch of the API payment gateway is a significant milestone for Fast and PayNow, which are the foundation of instantaneous, open and accessible payments.”
Article From & Read More ( PayNow, Fast to be made available to non-bank financial institutions in 2021 - The Straits Times )
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Business
SINGAPORE: From February next year, eligible non-bank financial institutions will have direct access to retail payment services like Fast and Secure Transfers (FAST) and PayNow.
This will allow users to make real-time funds transfers between bank accounts and e-wallets, as well as across different e-wallets, said the Monetary Authority of Singapore (MAS) in a media release on Monday (Nov 30).
Currently, most e-wallets require the use of debit or credit cards to top up funds. Transfers between e-wallets are also not possible.
Businesses that are partnered with any of the 23 FAST or nine PayNow banks will benefit from this move.
E-wallets that have traditionally been "closed-loop ecosystems" will also be able to receive real-time payments from other users of e-wallets of mobile banking applications that join FAST or PayNow.
"This will enable businesses to access a larger market of consumers than before for receiving e-payments instantly and seamlessly," said MAS.
The eligible institutions, which have to be licensed as major payment institutions under the Payment Services Act, will be able to connect directly via a new Application Programming Interface (API) payment gateway.
"The API payment gateway is better geared to the technology architecture of banks and non-bank financial institutions, and can also be used by other banks and non-bank financial institutions in future," said MAS.
MAS managing director Ravi Menon said direct access to FAST and PayNow "closes the last-mile gap in Singapore's e-payments journey".
"Consumers who may not have ready access to debit or credit cards to fund their e-wallets will now have the option to do so directly through their bank accounts," said Mr Menon.
He added that the adoption of e-payments will become "even more simple" for individuals and businesses.
SINGAPORE: For more than two years since she started working at a bank, Mavis (not her real name) has been keeping a secret from her bosses: She suffers from depression and anxiety.
While her company has hired counsellors, Mavis has never used their services, and seeks external counselling instead.
She has kept her mental health condition under wraps due to the “toxic” work culture, said the 25-year-old associate, and she fears that her chances of a promotion will be stymied if her condition is out in the open.
“Some have told me that (the company counsellors) will report back to the bank, though my boss said that this doesn’t happen - but you never know,” she said.
"In my industry, you are expected to work very hard and expected to have endurance … Those who can work a lot and handle a lot are seen as better."
A former trainee at a law firm, who wanted to be known only as Chloe, had a similar experience.
The 26-year-old, who began working at the firm early last year, developed anxiety attacks throughout her six-month traineeship. Things worsened to the point where she broke down during several lunch breaks, after feeling like she was manipulating her clients by withholding information.
“I felt like I had to lie to my client ... and I was under so much anxiety. During lunch, I would go down to cry, because I felt like I just couldn’t cope.”
Like Mavis, Chloe did not tell her bosses about her deteriorating mental health, but put on a poker face when she returned to the office after each breakdown.
“I have friends in the legal practice, and the advice given to me was that I could not speak to anybody about (my emotional issues). The concern was really stigma, so I had to go for private counselling,” said Chloe, who is no longer with the firm but is furthering her studies.
This is what some employees here have to face. But what about the employers? What do they have to say?
Those interviewed stressed that they are open to listening to their staff about whatever problems they may have, including mental health issues. However, they admit that a line has to be drawn, especially when it comes to business-critical roles.
If the employees continue to fall short of expectations or are unable to work for long periods of time due to their mental health conditions, the employers said they may have no choice but to refer the workers to other roles within the company or fire them.
Still, having to support staff who have reached their breaking point may not be the biggest challenge when it comes to mental health issues at the workplace in Singapore.
It is actually tackling the stigma surrounding mental illness and encouraging employees to speak up about their problems, based on interviews with workers, employers, human resource (HR) experts, general practitioners (GPs) and psychologists.
While calls to improve mental health awareness in the workplace are not new, the issue has taken on an added urgency this year with COVID-19 creating new stresses and pressures for everyone.
And with more people forced to work from home as the pandemic rages on, the boundaries between work and rest have been blurred, taking a further toll on the mental health of many employees.
But even before the coronavirus struck, the mental health situation here has been a growing concern: The Singapore Mental Health Study conducted between 2016 and 2018 found that one in seven people experienced a mental disorder in their lifetime, compared with one in eight people in 2010’s Mental Health Study.
Just earlier this week, TODAY reported that the Ministry of Manpower (MOM) is investigating allegations made against a firm here where a former employee has committed suicide allegedly due to harsh working conditions.
In introducing the advisory, Manpower Minister Josephine Teo said “protecting workers’ mental health has become even more important” during the pandemic.
Among its guidelines are:
To appoint mental wellness advocates to raise employees’ awareness of mental well-being and mental health conditions through talks and workshops.
To provide access to counselling services such as through Employee Assistance Programmes.
To review HR policies to ensure hiring practices, workplace practices and performance management systems are non-discriminatory and merit-based in nature.
To form informal support networks such as peer support programmes, parenting support groups, or a mentor/buddy system.
While these guidelines are a step in the right direction, more can be done in ensuring that these initiatives are not treated as a paper exercise, and that cultural changes are enacted at the workplace, HR experts and mental wellness advocates said.
Ms Anthea Ong, founder of the WorkWell Leaders Workgroup, a community of leaders from various companies and national agencies which champion workplace mental well-being, said that the guidelines are “solid building blocks” but it will be up to the bosses to take the lead in eradicating stigma at the workplace.
“If the leaders do not catch on and only leave it to the HR department to go and fulfil the requirements on the advisory, then I don’t think we have actually made a dent,” she said.
“Until it is actually embraced, acknowledged and acted upon by the leaders ... only then do we start seeing these programmes, policies and practices making an impact on the ground,” said Ms Ong, a former Nominated Member of Parliament.
CHALLENGES FACED BY EMPLOYERS
While larger firms may have more resources to implement the tripartite advisory guidelines, this is not always the case for small and medium enterprises (SMEs), many of which are feeling the crunch from the current economic slowdown.
Mr Adam Esoof Piperdy, chief executive officer and founder of events company Unearthed Productions, said that SMEs like his are in a “very precarious position” during the pandemic and it may not be practical for them to tick every box in the advisory.
“Such measures would (require) quite a high investment. I think what we would rather do is to have more informal practices of checking in with each other,” he added.
Office workers wearing face masks are seen in the financial business district in Singapore on Nov 23, 2020. (Photo: AFP/Roslan Rahman)
Even for larger firms with comprehensive mental health initiatives, the issue of employees not speaking up about their conditions remains a problem - one that has been exacerbated by remote working.
Ms Anuradha Purbey, people director at insurer Aviva Europe and Asia, said that a consequence of remote working is that managers are not able to meet their employees on a frequent basis.
“Hence, it becomes harder to ‘visibly’ identify any mental health and other challenges that employees are facing,” she said.
“So, we have to rely, primarily, on the online catch-ups and frequent surveys.”
And like what Mavis and Chloe faced, Ms Anuradha acknowledged that the stigma surrounding mental illness is what prevents many firms from detecting mental health issues in the first place, since employees are reluctant to reach out for help.
“While mental health awareness has been gaining traction in Singapore, for many it is still considered taboo to acknowledge their struggles,” she said.
“At Aviva, we want to make talking about mental health as normal as talking about physical health and continue to do what we can do to remove this stigma."
While there are firms which are willing to cut some slack for employees with mental health issues, they also said that there is a limit to how much employers can do.
Mr Piperdy, for example, said that he will try his best to get any colleagues struggling with mental health to seek professional help or give them days off if they are unable to cope. However, since the event industry is a client-facing role, he cannot continually make concessions at the risk of letting his clients down.
“At the end of the day, the job scope doesn’t change … if they’re not able to manage the workload that comes in, which is something we actively do, then I think we will help this person to transition to another job, maybe we will look for opportunities for this person.
"We have successfully redesignated some of them, to find suitable jobs in more fixed, permanent (roles) such as working in a venue instead of working for an events company,” Mr Piperdy added.
“But we are actively trying to avoid that by having early intervention, coaching and mentorships.”
TAKING THE FIRST STEP: BOSSES SAYING ‘IT’S OK TO NOT BE OK’
In recent years, some companies in Singapore have come up with a slew of measures to promote mental wellness at the workplace, many of which are in line with the tripartite advisory’s guidelines.
For instance, national media network Mediacorp introduced earlier this month an emotional and mental well-being support initiative that consists of emotional and mental wellness training and a one-on-one confidential counselling service, among other things.
Mediacorp Chief Human Resources Officer Yvonne Ee said: “As part of our corporate wellness initiative, we continue to support our people with resources they need to adapt positively and perform well, during these unprecedented times.”
She added: “Through (the initiative), we look to create an environment where staff can build strong mental and emotional resilience, and feel secure as they continue to contribute to the organisation.”
Biopharmaceutical firm AstraZeneca Singapore said that among its mental wellness initiatives is an internal online platform for employees to discuss mental health issues and queries within chat groups. It also has in place the employee assistance programmes which provide confidential counselling.
President of AstraZeneca Singapore Vinod Narayanan said: “While we continue to build our open and inclusive culture at the workplace, we also recognise the impact COVID-19 has on mental well-being of our employees and will continue to build that space where it is safe for employees to speak openly about mental health issues.”
Employees at AstraZeneca Singapore having a team “kopichat” lunch session while working from home. (Photo: AstraZeneca Singapore)
In response to queries, business consultancy PwC Singapore said it provides several avenues to support mental health including an employee assistance programme, workshops, support groups and online resources to drive awareness of the subject.
Online marketplace Carousell said it has a dedicated wellness programme where employees “come together as a team to focus on our well-being”, at least once a month. It is also looking into establishing an employee assistance programme to offer support to employees struggling with personal and work-related problems.
While companies ramping up their mental wellness initiatives is a positive sign, HR experts said that this has to be coupled with bosses who lead by example in creating a more open company culture.
Earlier this week, Bloomberg reported that Economic Development Board managing director Chng Kai Fong had opened up about his mental health struggle during the pandemic at a technology conference on Nov 22.
Mr Chng - who was formerly the principal private secretary to Prime Minister Lee Hsien Loong - said that family matters that occurred in April had affected his emotional and mental state, leading to feelings of “heat and anger” and depressive bouts.
According to Bloomberg, Mr Chng said he wanted to openly share his experience with others who might be facing mounting pressure to lead during times of fear and uncertainty.
“We can do a lot more as leaders to acknowledge that (it’s OK not to be OK) and to share a little bit more about ourselves,” Mr Chng said. “And that builds trust.”
Otis Asia Pacific president Stephane de Montlivault, who is a member of the WorkWell Leaders Workgroup, said that being more open about his struggles with mental health meant that employees of the elevator company were more willing to share their problems as well.
“I shared my personal situation as I happened to also have a number of difficulties (amid COVID-19). I lost a colleague and very close friend who died in a car accident … and shortly after that my father-in-law had a heart attack and was in the ICU,” he isaid. “I was facing a lot of stress, and had sleeping issues, anxieties."
When he shared these issues at a forum with his employees, many of them started opening up, and subsequently many were willing to go to their bosses directly with their problems, he said.
“(We) made it very open and clear that it is not only okay, but normal and encouraged to talk about our difficulties and to work on them as a team,” said Mr de Montlivault.
“This actually caused us to take some actions in some cases when we found that people had difficulties when we were constrained by not being able to come to the office.”
Agreeing, Ms Ong said that bosses who are willing to reveal their vulnerable side send a clear signal to employees that having mental health issues does not mean that they will not be able to succeed at work.
“That’s a very big part of stigma in the workplace, (which) stems a lot from concerns with career progression and advancement,” she said. “When leaders are the ones sharing, then it says that it does not affect your promotion options, your career progress, and your potential.”
Veteran HR practitioner Carmen Wee said that the employer-employee relationship should be one that is centred on the well-being of the employee. “If employees are fearful in asking for help, there’s something wrong with the culture or leadership approach,” she said.
“If you work in a company where the company respects you, wants to look after their well-being, which employee will not flourish and perform?
”There would not be such a fear if employees “feel supported and don’t feel like their psychological safety is threatened”, she added.
Ms Wee noted that for cases where an employee’s mental health condition becomes too severe to continue working at a company, firing the employee should be a last resort.
Other alternatives such as no-pay leave, counselling and job coaching should first be considered.
“If at the end of the day, the person still can’t cope and the job is still contributing to the stress, there needs to be a heart-to-heart talk, and if everything cannot be worked out, they might have to part ways,” she said.
Even when making such a decision, the company must also be sensitive given the pandemic situation, where it may be difficult to find employment. Employers can introduce the affected workers to new jobs that may be more suitable, or link them up with job courses.
“Each person’s circumstance is different, so the company needs to examine and come up with an individualised plan,” Ms Wee said.
Although awareness of mental health here has grown, there remains a common misconception that physical health takes precedence over it, when both in fact should be viewed on par, said psychologists and GPs whom TODAY spoke to.
Office workers wearing face masks are seen near the financial business district in Singapore on Nov 23, 2020. (Photo: AFP/Roslan Rahman)
Dr Geraldine Tan, director and principal psychologist of The Therapy Room, said that whether it is a physical or mental illness, patients can be “struck down” by it for a prolonged period.
“When they have their diagnosis of anxiety and depression, they cannot go into the office, and someone else has to take over, so it is as bad as having surgery, or breaking your leg,” she said.
Agreeing, GPs said that they would give medical certificates (MCs) regardless of whether it is a physical or mental ailment.
Dr Sunil Kumar Joseph, a GP who runs Tayka Medical Family Clinic in Jurong, reiterated: “Mental illness is treated the same as physical illness from a medical point of view, so there is no issue.”
The World Health Organization (WHO) defines health as “a state of complete physical, mental and social well-being and not merely the absence of disease or infirmity”.
According to the American Psychological Association (APA), physical and mental health are interconnected and cannot be viewed in isolation.
“Stress can take a toll on our physical health, while physical challenges can also bring new stress into our lives,” the APA said on its website.
Regardless of the literature, Dr Sunil said the main obstacle is the stigma that prevents patients from visiting him in the first place. And one policy that propagates the stigma is company-paid insurance, he noted.
“Indirectly, (the company) is able to access all your medical history because you signed a waiver to your rights of confidentiality,” he said. “So very few people who are using corporate insurance are willing to disclose mental health conditions, so that’s one stumbling block.”
He added that a lot of insurers do not pay for mental health treatment.
One guideline in the tripartite advisory says that companies with flexible employee benefits, such as medical benefits, should consider extending the scope of coverage to include mental well-being programmes, mental health consultations and treatments.
Companies such as Aviva Singapore, consultancy firm PwC Singapore and investment holding company Jardine Cycle & Carriage have health coverage plans that include mental health treatment.
Otis’ Mr de Montlivault said that as per the guidelines, his firm will be looking to include mental health as part of its health coverage as well. In the meantime, Otis employees can tap internal company self-funded insurance which has been expanded to include coverage for psychological support services.
If employees are hesitant to get MCs for their mental ailments, some companies have a policy where a limited number of sick days can be taken without having to produce an MC.Some employers also provide medical leave based on trust, rather than having to always provide MCs.
Employees of the Jardine Matheson Group attending mental health first aid training. (Photo: Photo: Jardines Mindset)
Mr Jeffery Tan, chief executive officer of charity organisation Jardines Mindset Singapore and group general counsel of Jardine Cycle & Carriage, said that if employees report that they have mental health issues without an MC, it will come down to “managerial discretion and empowerment by the supervisors”.
“Even for physical ailments, we don’t always need to be able to produce an MC before we can go off; we can see someone is struggling with an ailment, they can take an afternoon off,” said Mr Tan, who is also part of the WorkWell Leaders Workgroup.
“This is coupled with an element of trust in a safe environment, as opposed to starting off by saying ‘if I have this, are people going to game the system and be less than truthful?’,” he added. “I think those are all the wrong dynamics.”
Agreeing, Ms Audrey Ng, global head of HR for mining firm Anglo-American Marketing, said that trust is “central to the relationship with our teams”.
“We know that the overwhelming majority of them are highly dedicated and committed to achieving great results for the entire organisation, so if we see that someone needs a break, we try to ensure that he or she feels empowered to take some time off with line manager approval,” said Ms Ng.
Still, some employees said taking medical leave as and when they need to is not feasible, as they are on project-based jobs.
A junior art director at an advertising firm, who wanted to be known only as Isabel, said that the number of projects she had to do during the circuit breaker period increased by about 40 per cent as more clients were looking to advertise online.
The longer working hours and higher workload resulted in the 24-year-old feeling stressed and anxious to the point where she would vomit regularly and lose her memory while at work.
She could not take a break as she had to meet the clients’ deadlines, and no one could take over her projects as they would not be familiar with the clients’ requests.
“In advertising, the mindset is always clients first, and that’s very detrimental on the employees,” she said.
WHAT EMPLOYEES CAN DO THEMSELVES
Dr Douglas Kong, a mental health expert and performance coach, said that those who are stressed at work may not be able to identify the signs until it is too late.
“Those who are under stress, or have some issues in their life that they aren’t handling well … they can’t see it, and they do their best to cope and handle it,” he said.
He has seen several cases of employees who would not admit to their stress and anxiety, only for their mental health conditions to worsen and affect their productivity.
“So people think that mental illness is terrible, that you must not have it … But the point is that if you can deal with it earlier... it can allow the person to overcome it and get on with their lives and work,” said Dr Kong.
Mr Adrian Choo, founder of career strategy consulting firm Career Agility International, said that employees must know “when to back off” when caught in a stressful situation.
“Employees themselves need to know when they are being stretched and are hitting the limit… (They) need to ask themselves what is more important, your health or your career?” he said. “Because if you are burnt out, you are of no use to your company anyway.”
For Mavis, the bank employee who is hiding her mental health condition from her bosses, only a significant cultural shift in her company will prompt her to open up about her struggles to her superiors.
“If I see a culture where you’re talking openly about mental health, and it’s very clear that if I say something about it, not just my bosses but my colleagues will not think differently of me,” she said. “(Instead) it will be something that can actually help me, with people being more caring and it is not something that will be looked down on.
”She added: “But right now, it is a far cry from that.”
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