Written reply to PQ on Productivity and Innovation Credit and Capability Development Grant

​Question

Mr Desmond Choo: To ask the Minister for Trade and Industry (Industry) (a) how many workers have benefited from the Productivity and Innovation Credit (PIC) and Capability Development Grant (CDG) over the last three years; and (b) how can the Ministry work towards having productivity gains from public schemes such as the PIC and CDG be shared equitably with workers.

Written answer:

The Productivity and Innovation Credit (PIC) and Capability Development Grant (CDG) are aimed at helping Singapore enterprises and workers achieve productivity improvements and build business capabilities. Over the last three years, an average of 80,000 enterprises, employing more than 2.5 million workers, benefitted from the PIC scheme annually. Over the same period, an annual average of 700 enterprises, employing more than 150,000 workers, tapped the CDG.

Government, industry and the unions have been working together to enable both companies and workers to benefit from productivity improvements. For example, NTUC has partnered with various companies on measures that raise their productivity and competitiveness. The resultant productivity gains are then shared with workers in these companies, such as through allowances or payments. As a specific example, the Inclusive Growth Programme (IGP) administered by e2i co-funds companies to embark on productivity improvement projects. The companies in turn are required to share their productivity gains with their workers through higher wages.

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