The telcos are still dangling their subsidies, but an increasing number of consumers in Singapore no longer want to get locked into a two-year contract in exchange for a cheaper handset.

The advent of less expensive devices with souped-up features has persuaded some of them to opt out of mobile contracts. This means some do without top-end handsets.

Last year, more than one-third of all smartphones – 1.5 million units – were sold here by retailers including neighbourhood phone shops and e-tailers instead of telcos, said market research firm IDC.

Retailers do not sell line subscriptions with the handsets, so these are not subsidised by the telcos.

The proportion of unsubsidised handsets sold here has risen steadily over the past four years, from 24 per cent (900,000 units) in 2011 and 28 per cent (one million units) in 2013, to its current perch.

The figure could be higher as telcos also sell handsets without lines, but this is not captured by IDC.

Dr Hoe Wan Sin, 41, decided last year to forgo telco subsidies for an iPhone 6s handset, which costs about $1,000 without a line.

“A phone is a depreciating asset,” said the doctor, who ditched her old subscription for a line-only package. She used to pay more than $100 a month but her data bundle was capped at 5GB data. Now, she gets far more data at $75 a month, though she has to fork out more for the handset.

Businessman Harry Chew, 46, said he paid $400 last year for an Asus dual-SIM handset without any telco subsidy. “Now smartphones are so affordable,” he said.

Mr Chew, who also owns an iPhone 6 Plus, has just finished his two-year service contract. He expects the threat of a fourth telco setting up here to further shake up the market.

IDC Asia-Pacific research manager Kiranjeet Kaur said the trend could have contributed to the price war in the line-only segment recently.

“Up until last year, line-only subscriptions were not significantly cheaper than mobile plans that included a subsidised smartphone,” she said.

Things changed in July last year. M1 introduced its basic line-only plan that comes with a 5GB data bundle for $30 a month.

This was considered a steal as the prevailing rate for a similar bundle was at least $80 a month, and consumers had to sign a two-year contract too. Without a contract, M1 line-only customers would get 3GB of data.

Shortly after, Singtel came up with a contract-free 3GB data bundle for $20 a month, while StarHub cut the price of its line-only subscriptions by half so that a 4GB plan costs $31.45 a month.

Competition intensified again this year.

Two weeks ago, all three telcos offered customers more data – essentially cutting mobile subscription fees by half – if they signed up for another two years of a mobile contract. These discounts do not apply to existing customers in a contract.

In an unprecedented move, Singtel is also giving handset discounts of up to $190 for customers who do not sign a mobile contract, and has started allowing customers who buy a handset from it to pay by instalments.

“Now the telcos are playing catch-up and reacting to user behaviour to make sure consumers do not leave their network,” said Mr Clement Teo, a senior analyst at market research firm Forrester.

Nevertheless, many people are still willing to sign two-year contracts so they do not need to pay a large amount up front for a premium handset.

Marketing manager Aaron Koh, 40, said: “You either pay now or pay later. I choose the latter.”

itham@sph.com.sg

This article was first published on March 22, 2016.
Get a copy of The Straits Times or go to straitstimes.com for more stories.

Dog behaviourist and trainer Marie Choo started running two years ago when she felt lost in life.

Q How important is it for you to keep up with your fitness routine?

A I can’t imagine a life without exercise now. I am constantly training as I have race events lined up for the year.

I will be doing the 21.1km half marathon at NTUC Income Run 350 on April 10. That will be followed by a full marathon in the Gold Coast, Australia, in July and the New York City marathon in November.

I also walk my dogs twice a day, for a total of 1 to 1 ½ hours.

And if I can’t make it to a gym class, I will do push-ups, dips and other exercises at home.

Q How did you become an exercise fanatic when you have never exercised previously?

A About two years ago, I was looking for more meaningful things in life to pursue.

I had my own PR agency, working with luxury brands and living the high life. But I prefer a simple life. Over the years, I had also become more involved in dog welfare and charity work. It was a big disconnect from my work life.

That was when I started running – to seek clarity and tire myself out as a form of escape. I managed only 2km when I first started, and I had to walk too. However, I continued running and went on to set small fitness goals for myself.

Q How did running change your life?

A It helped me to garner enough courage to make a career switch.

I walked away from my previous job and became a dog behaviourist and trainer, as well as a part-time lecturer in project management at Lasalle College of the Arts.

Q What was the most extreme thing you have done in the name of fitness?

A Less than a year after my first 2km run, I completed the Tokyo Marathon in five hours and 58 minutes. Sometimes, I still wonder how I did that. (The cut-off time for the 42km race is seven hours.)

Q How did you prepare for your first marathon?

A I followed a training plan and got tips from my coach. I also consulted a sport physiotherapist to ensure I was in good form.

I trained in my race-day outfit and shoes a few times so there would be no nasty surprises such as chafing or blisters on race day.

Q Which is more important to you – to run well or to look good?

A I was trained as a fashion designer in London and, having worked with luxury brands in my previous career, looking good is in my DNA.

I always joke that what I lack in speed and stamina, I make up for with style.

Stylish activewear helps to motivate me to run.

Q What is your secret to looking fabulous?

A Daily exercise, eating well, meditation, yoga, a dose of the outdoors and being grateful for all things in life.

Q Has there ever been a time when you were not fit and fab?

A Prior to picking up running, I led a stressful life, working long hours, and smoked and drank because I had to entertain a lot in my job.

Q What is your diet like?

A I eat organic produce as much as I can. At home, it’s mostly vegetarian food, if not vegan. If I have to eat meat, seafood is my only choice. I also avoid processed food and carbs like rice or pasta as much as I can.

Q What are your indulgences?

A I indulge in local hawker fare and delicious desserts in moderation. I also love french fries.

Q What are the three most important things in your life?

A My husband, my two dogs and my health.

Q What’s your favourite body part?

A My abs.

Q What are your must-dos before and after a race?

A I like to prepare my outfit and gear the night before a race. On race day, I will have a healthy breakfast, empty my bowels (all runners have no shame talking about this), meditate and do some light stretching to loosen up my body and joints.

Post-race, a hot bath, a good meal and a massage. Then wear compression socks and sleep.

Q How has your active lifestyle influenced your family and friends?

A My husband embarked on a healthy lifestyle a year after I started running. He goes for classes at the gym and has changed his eating habits. He lost 15kg and now has abs to rival mine. Some of my friends also started running after seeing my transformation.

Q How extensive is your collection of sports-related paraphenalia at home?

A I have many pieces of activewear and countless pairs of running shoes. I also keep all the bibs and medals from the races that I’ve participated in. My most-prized possession is my first marathon medal from the Tokyo Marathon.

Q Would you go for plastic surgery?

A Only if I ever got into an accident that required me to undergo plastic surgery. But not for aesthetic reasons because, at the moment, I love the way I look.

However, I won’t rule out the possibility of going for a facelift when I am 60 and need one.

joyceteo@sph.com.sg

This article was first published on March 22, 2016.
Get a copy of The Straits Times or go to straitstimes.com for more stories.

More layoffs are likely to come this year, though many firms are preparing to weather the economic slowdown by redeploying workers and reducing costs.

Layoffs climbed 20 per cent to 15,580 last year, while job vacancies fell, according to statistics released by the Manpower Ministry last Tuesday.

More than half the jobs lost were from the service sector, especially professional services, wholesale trade and financial services.

A third were in manufacturing and about 10 per cent in construction.

Professionals, managers, executives and technicians also made up over 70 per cent of those made redundant.

Employers and business associations told The Straits Times that they expect the gloomy outlook to continue for the next year or two.

“For 2016, we expect redundancies to stay above 10,000, reflecting the more modest projected economic growth of 1 per cent to 3 per cent and continued restructuring,” said Mr Koh Juan Kiat, executive director of the Singapore National Employers Federation.

He noted that jobs are still being created to absorb the excess manpower.

Singapore Retailers Association vice-president R. Dhinakaran said some retailers are closing less profitable outlets and may release some workers but, as far as possible, would redeploy them to other shops, as there is still a shortage of front-line staff.

Association of Small and Medium Enterprises president Kurt Wee said some businesses will face consolidation, but for the others it is crucial to press on with the productivity drive, so as to provide good jobs.

He added that he does not expect big retrenchments for now.

Singapore Chinese Chamber of Commerce and Industry (SCCCI) president Thomas Chua also urged small and medium-sized enterprises (SMEs) to enhance their business models to draw more talent – including higher-skilled workers who have been retrenched – so as to become more competitive.

He added: “SCCCI hopes the Government will help SMEs in the transformation process, so that higher-skilled Singaporeans are attracted to join SMEs and be integrated into the workforce.”

While keeping an eye on costs, some firms are also taking the opportunity to train their workers.

Rather than cutting staff, BN Logistics managing director Kenny Khor has tasked his 12 workers with learning one another’s jobs when they have time.

Since January, for example, administrative staff have been shadowing purchasing staff, and warehouse workers now follow transport drivers out.

“When they understand other departments’ problems, they can think about improving their own processes or helping each other solve problems. We can become more efficient,” he said.

Meanwhile, some industries such as hospitality are still more worried about recruiting manpower than shedding it.

Mr Brenton Ong, human resource director for Concorde Hotel, said: “Hotels are already very lean because of the controls on foreign manpower.

“More hotels are still opening and they need people too.”

This article was first published on March 22, 2016.
Get a copy of The Straits Times or go to straitstimes.com for more stories.

They are too costly for their previous companies to retain, and supposedly too old for prospective employers to hire.

Such is the double bind that higher-skilled employees and middle-aged workers have found themselves in. They were the hardest hit by layoffs last year, according to recent findings from the Manpower Ministry (MOM).

These groups were also less likely than other resident workers to be in employment within six months of being made redundant.

Older workers in their late 40s to 50s were worried about their incomes stagnating too, even as job opportunities waned, based on poll findings released by government feedback unit Reach on Sunday.

Several middle-aged professionals, managers and executives (PMEs) who were recently laid off told The Straits Times that employers are looking for young workers who are cheaper and have more drive, given sluggish economic conditions.

NO OFFER YET

Some firms may say that we are overqualified for the job. We are open to lower salaries, but are companies willing to give us a chance?

MS FAN SUET YENG, 48, who lost her job a few months ago. Ms Fan Suet Yeng, who has an electrical engineering degree, worked at a multinational corporation for nearly 25 years after graduating from the National University of Singapore. The 48-year-old, who rose to become a senior manager in charge of procurement and logistics earning about $9,000 a month, lost her job a few months ago.

The mother of two school-going children aged 16 and 19 has sent out at least 50 applications for lower-pay jobs in the same field, but has not received a single offer.

“At this age, and with many years of experience, some firms may say that we are overqualified for the job,” she said. “We are open to lower salaries, but are companies willing to give us a chance?”

Of the Singaporeans and permanent residents laid off last year, 71.1 per cent were professionals, managers, executives and technicians (PMETs), according to MOM figures released last Tuesday. Nearly two-thirds of resident workers made redundant last year were aged 40 and above.

Some PMETs aged 40 and above said they have heavier financial obligations such as housing mortgages, car loans, elderly parents to support and their children’s school fees, and have had to make adjustments to their lifestyles.

Madam Annie Kheng, who is in her late 50s, was an administrative and finance manager in the oil and gas sector for three years. She was left without a job last year when her firm underwent restructuring.

The single mother then took up temporary work, such as an accounting job to cover those who were on maternity leave. She earned under $1,000 a month, while still having to put her two children through university.

“If I really cannot get a job that I want, maybe I should adjust my expectations,” she said. “I attended upgrading courses – even in unrelated industries like food and beverage.”

In March this year, she secured a managerial position at an IT firm, even though she admits the pay is half of what she used to earn.

Overall, more workers became unemployed last year. In total, 15,580 workers lost their jobs, the highest since the global financial crisis in 2009, which saw 23,430 workers laid off. Job security was the biggest worry among Singaporeans amid the slowing economy, Reach said on Sunday.

Labour experts noted that workers in the vulnerable PMET and older-worker groups may not be able to hold on to jobs as their skills may be outdated and, at the same time, they are more costly to employers.

Mr David Leong, managing director of PeopleWorldwide Consulting, said: “If workers do not upgrade and add more value to their jobs, they will likely work themselves out of their jobs. A younger person… can easily assimilate into his role and, importantly, he will cost less.”

Businesses, however, noted that this is not the case in every instance.

Association of Small and Medium Enterprises president Kurt Wee said: “Age may not be a disadvantage. I have seen small and medium-sized enterprises that have hired managers in their 50s. The young may not have sufficient experience when it comes to these roles.”

In the past year, there was a sharp rise in the number of PMEs who sought help for employment and employability matters from the labour movement. From last March to February this year, the National Trades Union Congress helped 518 PMEs who were retrenched or had their employment terminated, a more than 50 per cent jump from the previous year.

NTUC assistant secretary-general Patrick Tay foresees PME retrenchment – regardless of age – becoming more prevalent with the current economic situation.

“Increasingly, whether you are in your 20s or 30s, you will be affected if there are layoffs – whether you are young or not,” he added.

• Additional reporting by Jeremy Koh

This article was first published on March 22, 2016.
Get a copy of The Straits Times or go to straitstimes.com for more stories.

The contract to build a four-in-one rail and bus depot – said to be the world’s first such facility – has been awarded to South Korea-based GS Engineering & Construction Corporation for around $1.99 billion.

The East Coast Integrated Depot will contain three train depots and one bus depot within a single site of 36ha.

It will be able to stable around 220 trains and 550 buses, said the Land Transport Authority (LTA) yesterday.

GS Engineering was previously involved in the building of the Downtown Line 2’s Gali Batu Depot, and is currently constructing the Downtown Line 3’s Fort Canning and Tampines East stations, as well as the Thomson-East Coast Line’s (TEL) Woodlands interchange station.

Works for the East Coast Integrated Depot and its associated tunnels will start by the second quarter of this year and are targeted for completion in 2024.

The three train depots in the facility will be stacked one on top of the other, with a bus depot built next to them.

The depot to serve the Downtown Line will be built underground, while the TEL depot will be on the road level, and the East- West Line depot will be built on top of it.

The LTA had said previously that if the four depots were to be built separately, a land size of 80ha would be required.

The 36ha East Coast Integrated Depot will allow the authorities to save 44ha – the equivalent of approximately 60 football fields.

Separately, the LTA also said yesterday that it has awarded three more rail project contracts.

A joint venture between Australian firm John Holland and Zhen Hua (Singapore) Engineering has clinched the deal to build the TEL’s Siglap station for $176 million.

The construction of the TEL’s Bayshore station and its associated tunnels has been awarded to Woh Hup-Shanghai Tunnel Engineering Co (Singapore) Joint Venture at a contract sum of $296 million.

Meanwhile, Korean firm Samsung C&T Corporation has been awarded the contract to build the Xilin station on the Downtown Line 3 extension, as well as reception tunnels to the East Coast Integrated Depot, at a contract sum of $834 million.

Works for all three projects are expected to start in the second quarter of this year.

The Siglap and Bayshore stations are targeted for completion in 2023, and the Xilin station in 2024.

Siglap and Bayshore stations are part of the nine-station, 13km East Coast stretch of the TEL, and will benefit commuters living in the eastern parts of Singapore – such as Tanjong Rhu, Siglap, Marine Parade and Bedok South – who are currently not served by an MRT station.

The East Coast stretch will connect to the 22-station, 30km Thomson segment to form the 43km TEL.

The Downtown Line 3 extension adds another two more stations and 2.2km to the 42km Downtown Line, and will improve accessibility to the Changi Business Park and Expo areas.”

This article was first published on March 22, 2016.
Get a copy of The Straits Times or go to straitstimes.com for more stories.

Six months after coming within a whisker of winning a seat in Parliament, lawyer Murali Pillai is getting a second shot.

Mr Murali, 48, returned to his old stomping ground of Bukit Batok yesterday, where he was unveiled as the People’s Action Party candidate for the by-election.

The head of commercial litigation at law firm Rajah & Tann, who is known also as K. Muralidharan Pillai, has been PAP branch chairman for Paya Lebar since May 2012, and was part of the PAP team that won 49 per cent of the votes in Aljunied GRC at the 2015 General Election.

But it was in Bukit Batok where he first got involved in grassroots work, in 2000. He gave free legal aid to residents, was roped in to help then MP Ong Chit Chung, and became branch secretary in 2007.

When Mr Murali took on his new post in Paya Lebar, he maintained his ties to his old ward by remaining on the Bukit Batok Citizens Consultative Committee until last year.

“I have a record of service in Bukit Batok for Bukit Batok residents. I pledge to serve with all my heart.”

Bukit Batok single-member constituency will have a by-election after former MP David Ong resigned on March 12 over an alleged affair.

The date has yet to be called, but Deputy Prime Minister Tharman Shanmugaratnam, who introduced Mr Murali at a press conference, said there was no reason to hold back announcing a candidate the PAP was “very comfortable with”.

He praised Mr Murali for having been a galvanising force for activists when the late MP Ong Chit Chung, who oversaw Bukit Batok when it was then in Jurong GRC, died suddenly in July 2008.

“Jurong MPs were all involved, helping out in taking care of Bukit Batok, but Murali was the one who held everyone together, all the volunteers, the activists, and in fact strengthened the team,” Mr Tharman said.

Culture, Community and Youth Minister Grace Fu said Mr Murali was the party’s “first choice and the best choice for residents”.

Mr Murali said that if he is elected, his focus will be on helping the elderly and needy, given that Bukit Batok is a mature town.

He also noted that the constituency has a number of rental flats, and he wanted to make sure children living in them get the same basic opportunities that others get.

“We must ensure social mobility and guard against a permanent underclass from forming in our society,” said Mr Murali, who has been married to educator N. Gowri for 20 years. They have four children.

Mr Murali would be the second minority candidate PAP has fielded in a single seat in recent years. Asked about this, he said he had spent years helping out in Bukit Batok and Paya Lebar, areas with a larger proportion of Chinese residents than the national average.

He acknowledged that he had to deal with a language barrier, “but so long as I showed that I was sincere in wanting to solve their issues, I could surmount it”.

Weighing in, Mr Tharman said: “Race is never absent in politics anywhere and we did consider this very carefully. And I can tell you we are very comfortable with our choice of Murali.”

He noted that when PAP leaders met grassroots leaders and residents in Bukit Batok last week, Mr Murali’s name came up readily.

“One elderly Chinese lady I met asked: ‘What about that Indian man?'” Mr Tharman recalled.

“When people look at Murali, they see Singapore in him. They see someone who is with them, not someone who is above them in any way… They see someone who represents our multiracialism.”

Mr Tharman also acknowledged that PAP would have to contend with the so-called by-election effect, where voters are more willing to elect an opposition MP as the ruling party is already in power.

But he reiterated that the party was confident about its choice.

Asked about competing against Singapore Democratic Party chief Chee Soon Juan, Mr Murali said: “Politics is really about serving residents. And I consider myself seasoned because I have put in quite a bit of time serving the residents’ needs. That is really the focus.”

His late father P.K. Pillai was a former political detainee arrested during Operation Coldstore in 1963, who later credited the Government for Singapore’s prosperity.

Mr Tharman said Mr Murali also worked extremely hard in Aljunied GRC’s Paya Lebar ward in the GE: “He worked the ground very hard and swung the votes around.”

Mr Murali said his time in Aljunied taught him a valuable lesson: “One thing I learnt from my experience in Aljunied GRC is to fight hard for every vote. I am not taking anything for granted. I am going to fight hard for every vote in Bukit Batok.”

ziliang@sph.com.sg

This article was first published on March 22, 2016.
Get a copy of The Straits Times or go to straitstimes.com for more stories.