Singapore Invests $5 Million To Encourage Organizations To Adopt Best Sourcing Initiative
Top up of BSI Early Adopters Scheme to $5 million to encourage more organisations to adopt Best Sourcing Initiative (BSI).
Since the launch of the Best Sourcing Initiative (BSI) Early Adopters Scheme (BEAS) by the National Trades Union Congress (NTUC) and Singapore Workforce Development Agency (WDA) on 29 July 2009, more organisations have adopted the best sourcing practice.
A total of 64 contracts with a total value of $125 million have been evaluated for the BEAS incentive grant. To-date, $900,000 BEAS incentive grant, almost half of the $2 million scheme, has been awarded to 11 organisations.
Encouraged by the high take-up rate of BEAS grants, and hoping to attract more organisations to embark on BSI, WDA is allocating an additional $3 million funding to BEAS. The grant will continue to be administered by e2i (Employment and Employability Institute) and Unit for Contract and Casual Workers (UCCW) of NTUC, who have been working closely with industry players to adopt best sourcing of cleaning, building maintenance, security and landscaping services. More details on BEAS can be found in the enclosed Fact Sheet.
With BEAS, buyers are incentivised to award contracts based on performance and quality, also known as a beauty contest evaluation method, instead of solely on price. By so doing, buyers will come to realise that while the cost of contracts may go up in the short term; in the longer term, they will receive better value for money as the higher service quality will more than offset the increase in cost. Henceforth, a key consideration in awarding BEAS grant is whether the contract contains features that will drive sustainable performance and productivity.
“Singapore cannot compete just on cost alone because we are not a cheap country. We must have the capability to produce and deliver high quality products and services in a smart and cost-efficient way. That is what the Labour Movement meant when we made the call for everyone to be Cheaper, Better and Faster (CBF). And BSI is one small step towards achieving CBF,” said Mr Ong Ye Kung, Assistant Secretary-General of NTUC and Chairman of e2i.
Workers will also benefit when organisations are on BSI because when service providers focus on delivering quality services instead of offering the lowest price, they will invest in the training of workers and provide them with proper terms of employment and benefits, including CPF contributions.
Mr Zainudin Nordin, Director of UCCW, NTUC, said, “With BSI, when organisations have to compete on quality instead of cost, they will have to look at boosting workers’ productivity by up-skilling, re-skilling or multi-skilling them through training and job re-design or re-creation,” He added, “The CBF conomy has to be driven by an inclusive workforce. We believe that BSI will allow our workers, including the contract and casual workers, be more productive with better job performance, not lower wages; as well as be more competent and adaptable.”
To proliferate the adoption and benefits of best sourcing, e2i, UCCW and WDA held a BSI Symposium this morning, which was attended by about 500 participants, mostly from the private sector. The symposium featured successful early adopters of BSI, such as the Changi Airport Group (CAG), National Parks Board, National Environment Agency, Wing Tai Holdings and Holland-Bukit Panjang Town Council, who shared how they implemented and benefitted from best sourcing in their organisations. Annex A contains more details of BSI at CAG and Wing Tai Holdings.
Mr Chan Heng Kee, Chief Executive Officer of WDA said: “We have increased the funding for BSI early adopter scheme to $5 million to encourage more organisations to adopt best sourcing. This will be a win-win for all parties, with buyers benefiting from more professional service standards; workers enjoying better training, job prospect and rewards; and service providers being able to also compete by quality and performance. Through the symposium, we hope more organisations will be inspired by the success of the BSI early implementers, and tap on the available funding to begin their journey on best sourcing.”
About National Trades Union Congress (NTUC)
The National Trades Union Congress (NTUC) is a national confederation of trade unions in the industrial, service and public sectors representing more than 530,000 workers in Singapore. NTUC comprises 60 affiliated unions, six affiliated taxi associations, 12 social enterprises and four related organisations. NTUC’s objectives are to help Singapore stay competitive and workers remain employable for life; enhance the social status and well-being of workers; and build a strong, responsible and caring Labour Movement. Its vision is to create a better and more meaningful life for working people of all collars, ages and nationalities to work, live and play together in Singapore, with a mission to help working people earn a better living and live a better life. For more details on NTUC, please visit our website at www.ntuc.org.sg.
About e2i (Employment and Employability Institute)
e2i (Employment and Employability Institute) is a one-stop, skills-based institute for employers, jobseekers and training providers. It has a vacancy bank of over 15,000 jobs, and has helped over 20,000 jobseekers find new and better jobs since 2008. To ensure that jobseekers meet the hiring requirements of employers, e2i conducts employment coaching, career coaching and conducts employability and skills training. e2i serves all workers, from rank and file to professionals, managers, executives and technicians. e2i is an initiative of the National Trades Union Congress (NTUC) supported by the Singapore Workforce Development Agency (WDA), Singapore Labour Foundation (SLF), and Singapore National Employers’ Federation (SNEF). e2i’s campus is located at 141 Redhill Road and was officially opened in February 2008 by Prime Minister Lee Hsien Loong. For more information on e2i, please visit www.e2i.com.sg.
About Unit for Contract and Casual Workers
The NTUC Unit for Contract and Causal Workers (UCCW) serves to enhance the economic and social well-being of the vulnerable low-wage contract and casual workforce by communicating and advocating the adoption of Best Sourcing Initiative to stakeholders; encouraging and supporting contract and casual workers for employability enhancement through skills training and upgrading; and enhancing the workers’ welfare, particularly in the areas of medical and insurance needs.
Topics: BEAS grants, Best Outsourcing Initiative, BSI, Early Adopters Scheme, economic development, Economy, Governance, National Trades Union Congress, NTUC, Singapore, Singapore Workforce Development Agency, WDA
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